Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — H1 2001 Earnings Presentation
23 slides from Commonwealth Bank Of Australia's earnings presentation, Feb 13, 2001
Slide 1: Half Year Results - December 2000
David Murray Half Year Results - December 2000 www.commbank.com.au
Slide 2: Disclaimer
Disclaimer The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation, 13 February 2001. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice
Slide 3: Speaker's Notes
Speaker’s Notes • Speaker’s notes for this presentation are attached below each slide. • To access them, you may need to save the slides in PowerPoint and view/print in “notes view.” 3 www.commbank.com.au
Slide 4: The Setting
The Setting EQUITY INDICES Jan 3 2000=100 110 Australia 100 90 United States 80 Far East 70 (ex Japan) 60 Jan 00 Mar-00 Jun 00 Aug 00 Nov 00 Feb 01 Using Morgan Stanley Capital International Index (MSCI). Rebased. Local currency terms. 4 www.commbank.com.au
Slide 5: Agenda
Agenda 1. Progress on Strategy 2. Integration Progress Report 3. The Operating Environment
Slide 6: Group Strategy
Group Strategy Strategic Vision Financial Business Goals WHY? Goal Top Attract more customers Growth with low & more revenue per customer inflation To be Quartile the best TSR Best value service through Major technology brand in innovation & on-line leadership shift helping Best Team Pace of change
Slide 7: Attract More Customers & More Revenue per Customer
Attract More Customers & More Revenue per Customer • Approximately 10 million personal customers • Growth in customer numbers and/or revenue across all customer segments • New sales management system implemented • Service measurement system built 7 www.commbank.com.au
Slide 8: Innovation and On-Line Leadership
Innovation and On-Line Leadership Customers Transactions^ Measure No. (at 31 Dec) Growth* (%) Growth (No.) Growth (%) Retail Financial Services NetBank 535,689 67.5 24.2M 72.9 HomePath** 78,488 105.4 1,426 274.8 MobileBank 14,684 110.7 100,822 68.3 ComSec Online 175,100 13.0 (366,000) (29.3) Busines
Slide 9: Best Team
Best Team • Leadership forums conducted for over 6,000 staff • Retention of key skills and people from Colonial • 20% of employees, mostly at management level, on individual contracts • Increased performance component for key sales and service staff • Performance based staff share plans extended 9 w
Slide 10: Develop Offshore Opportunities
Develop Offshore Opportunities Last 6 months Target/Goal • Acquisition of remaining 25% of ASB Group NZ • Develop existing businesses • Integration of Sovereign with Colonial Life well progressed • Sale of Colonial Finance (UK) • Funds management: Pursue growth in • Sale of Colonial Life (UK) retail
Slide 11: Global Best Practice Costs
Global Best Practice Costs • Colonial integration on track • Focus on technology driven productivity • Leverage the increased scale from integration 11 www.commbank.com.au
Slide 12: Integration Progress Report
Integration Progress Report
Slide 13: Overall Targets
Overall Targets • Expect majority of cost synergies to be achieved by year two whilst revenue synergies will progressively be realised over the next few years • Funding benefits from anticipated improved ratings and capital management • Maintain & improve service levels • Maintain the momentum of Co
Slide 14: Outcomes to Date
Outcomes to Date Retail banking operations Forecast Completion • Network distribution model implemented Dec Qtr Oct 00 • Systems build complete Dec Qtr Dec 00 • Systems User Acceptance Testing commenced Mar Qtr Jan 01 • Transaction bridge operational Mar Qtr Jan 01 • Colonial non-branch ATM conversi
Slide 15: Planned Outcomes for 2001
Planned Outcomes for 2001 Jun Qtr • Conversion Management System operational Jun Qtr • Launceston call centre operational Sept Qtr • Retail bank systems integrated Sept Qtr • Back office processing integrated Dec Qtr • Outsourcing contracts rationalised Dec Qtr • Branch amalgamation for eastern seab
Slide 16: The Operating Environment
The Operating Environment
Slide 17: US Financial Snapshot
US Financial Snapshot US Equities 5 Year US Corporate (Generic) Jan 3 2000 = 100 Curve to Spread over Libor 110 100 90 80 100 60 Basis Points 90 40 25 55 20 80 -12 0 70 -20 8 -22 NB: 100 basis points = 1% -40 60 Jan-00 Mar-00 Jun-00 Aug-00 Nov-00 Feb-01 8-Jun 8-Jul 8-Aug 8-Sep 8-Oct 8-Nov Using Morg
Slide 18: US Growth & Trade
US Growth & Trade % pa % of GDP 6 6 GDP growth (lhs) 3 3 Consensus (f) 0 0 Current account(rhs) -3 -3 -6 -6 Sep-87 Sep-90 Sep-93 Sep-96 Sep-99 Consensus 18 www.commbank.com.au
Slide 19: Asian Exports (% of exports to US)
Asia ASIAN EXPORTS 40 (% of exports to US) 35 30 Percent (%) 25 20 15 10 5 0 Hong Kong Korea Singapore China Indonesia Malaysia Philippines Thailand Japan Source: IMF 19 www.commbank.com.au
Slide 20: Australia - Credit Cycle and Asset Quality
Australia - Credit Cycle and Asset Quality 30.0% 6.00% Im paired Assets to Gross Loans (Com m onw ealth Bank 20.0% Group) 4.00% Change in Credit Impaired Assets Change in Credit Volum es (m arket) 10.0% 2.00% 0.0% 0.00% -10.0% -2.00% Jun-83 Jun-86 Jun-89 Jun-92 Jun-95 Jun-98 20 www.commbank.com.au
Slide 21: Sector Growth
Sector Growth 1000 Credit Growth 14% 450 Retail Deposit Growth 8% 900 400 7% 12% 800 350 6% 700 10% 300 5% $Billion $Billion 600 8% 250 500 4% 6% 200 400 3% 150 300 4% 100 2% 200 2% 50 1% 100 0 0% 0 0% 1997 1999 2001 2003 1997 1999 2001 2003 2005 2007 Total Credit (Commonw ealth Bank Group ) Retail
Slide 22: Areas of Strategic Focus
Areas of Strategic Focus • Rapid completion of Colonial integration • Emphasis on domestic business growth • Improvement in service levels • Technology driven productivity gains 22 www.commbank.com.au
Slide 23: Half Year Results - December 2000
David Murray Half Year Results - December 2000 www.commbank.com.au
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