Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — Macquarie Conference 2007
18 slides from Commonwealth Bank Of Australia's conference presentation, May 4, 2007
Slide 1: Ralph Norris, Chief Executive Officer
Ralph Norris CHIEF EXECUTIVE OFFICER
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, 4 May 2007. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to inv
Slide 3: Overview
Overview Outlook for domestic economy remains positive All businesses performing well Continuing good progress on strategic initiatives Credit quality remains sound Earnings momentum maintained into second half ConmonwealthGank “yp 3
Slide 4: Strong Financial Results
Strong Financial Results Cash NPAT* 2,271 t 19% Cash EPS* 174.7 t 17% Return on Equity - Cash 22.3% t 60bpts Income 6,438 f 11% Expense 3,144 t 6% Fully Franked Dividend 107c t 14% * Excludes profit on sale of Hong Kong in December 05 ConmonwealthBark
Slide 5: Revenue growth outstrips costs
Revenue growth outstrips costs 30% 28% 20% 15% 10% 5% 0% * Exciudes voiume expenses & HK operations Dec 06 vs Dec 05 18% ‘Australian BCI ‘ASB (NZD) | Retail i Income Banking Funds Insurance Management fa Expenses i NPAT Group ConmonwealthBark
Slide 6: Third Quarter Update
Third Quarter Update Earnings momentum maintained All businesses performing well in a competitive environment Credit quality remains sound On track to deliver strong EPS growth ConmonwealthGank “yp 6
Slide 7: Retail Bank
Retail Bank (Third Quarter Update) # Continued to target profitable growth Home lending balance growth in line with market in last quarter » Credit card growth even without zero rate balance transfer Continuing strong flows into Netbank Saver For FY07 loan impairment expense on consumer credit as a
Slide 8: Business, Corporate & Institutional
Business, Corporate & Institutional (Third Quarter Update) Strong growth in Institutional banking with stable margins Local Business Banking remained competitive, however margins stable Global Markets & Treasury performed well - Commsec benefiting from strong branding and increased volumes Overall c
Slide 9: Wealth Management & Insurance
Wealth Management & Insurance (Third Quarter Update) Positive investment environment and strong retail funds flow — expected to pick up in June quarter e First Choice continued to attract strong flows growing 8% in the 34 gtr Good progress made in sell down of $1.2 billion interest in AWG Comminsure
Slide 10: CEO Priorities & Measures
CEO Priorities & Measures Customer Service Business Banking Technology & Operational Excellence Trust & Team Spirit » Superior operating and financial results » Australia’s finest financial services organisation ConmonwealthBark “yp 10
Slide 11: CEO Priorities & Measures
CEO Priorities & Measures Customer Service Business Banking Technology & Operational Excellence Trust & Team Spirit ConmonwealthBark 11
Slide 12: Examples of Profitable Growth
Examples of Profitable Growth Asian expansion program Cross business unit referrals Global Markets & Treasury Global Asset Management Property & Alternative Investments ConmonwealthBark “yp 12
Slide 13: Asian growth
Asian growth _ PT Bank Commonwealth China /11% Jinan City Commercial Bank _ 19.9% Hangzhou City Commercial Bank _ Beijing and Shanghai — Representative offices _ _China Life CMG ~ JV life insurance / First State Cinda Fund Management Company | Japan Branch Hong Kong Branch First State Investments Vi
Slide 14: Cross Business Unit Referrals
Cross Business Unit Referrals Wealth Management Cross-sell initiative introduced >70 Branch Insurance Rep’s, another 60 by June 07 « Provided frontline staff with additional training to better identify customer needs Increased Commonwealth Financial Planning network by 10% ConmonwealthGank “yp 14
Slide 15: Global Markets & Treasury
Global Markets & Treasury Expansion into a broader set of more complex, higher margin products 2 Emerging business growth from newly established innovation and entrepreneurial spirit Accelerated growth in the institutional equities business « Staff retention and attraction through remuneration that
Slide 16: Global Asset Management
Global Asset Management Attract and retain talent to support growth Use competitive advantage to differentiate Emphasis on: Innovative investment solutions - Total return strategies Diversification of asset class $1.5 bn raised in China Cinda joint venture, European Infrastructure Fund ConmonwealthB
Slide 17: Summary
Summary » Outlook for domestic economy remains positive All businesses performing well Continuing good progress on strategic initiatives e Credit quality remains sound Earnings momentum maintained into second half ConmonwealthBark “yp 17
Slide 18: Ralph Norris
Raloh Norris CHIEF EXECUTIVE OFFICER
Commonwealth Bank of Australia — Macquarie Conference 2007 on 6ix