Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — Future of Banking in China Conference 2004
25 slides from Commonwealth Bank Of Australia's conference presentation, Oct 28, 2004
Slide 1: Transformation Journey in Retail Banking
Commonwealth Bank of Australia WRUNTR FR AT Transformation Journey in Retail Banking ASN ARAT MS LEAR Hugh Harley Group Executive Retail Banking Services SALAD AMET WS MRS BB Future of Banking in China Conference October 2004
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, 28 October 2004. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice t
Slide 3: Commonwealth Bank of Australia
Commonwealth Bank of Australia JN IKF4847 Banking No.1 in retail funds under management No.1 in platform inflows: No.1 in retail Share broking Insurance No.1 in inforce premiums International is Largest Australian retail.bank with:over 8 million:retail customers No.1 in retail deposits; No.1 in home
Slide 4: History of the Commonwealth Bank of Australia
History of the Commonwealth Bank of Australia Jf £ 1911-1996 Federal Government ownership 1980s Domestic financial market deregulation 1989 Acquisition of ASB Bank (New Zealand) 4990 Acquisition of State Bank of Victoria 4991-1996 Commonwealth Bank of Australia privatisation 4996 Acquisition of Comm
Slide 5: Privatisation
Privatisation #A 4 | Mid-1980s - Commercial disciplines adopted 1 1991 - 30% interest sold to general public * 1993 ~ Further 19.9% interest sold | 1996 - Balance (50.1%) sold to public
Slide 6: Our share price has risen significantly
$55.00 Our share price has risen significantly [i (}a2> LF
Slide 7: Financial Results
Financial Results 14K * 15% growth in underlying cash profit 15%iN Se APA 30/06/04 36/06/03 Change AgSm AgSm = KE | Statutory Net Profit After Tax HES RHIS 2,572 2,012 +27.8% Goodwill amortisation 324 322 Appraisal value movement (201) 246 [Cash Net Profit After Tax’ mamaria (2,695) 2,579 +4.5% eee
Slide 8: Commonwealth Bank's footprint in China
Commonwealth Bank’s footprint in China RTA Bh Be * Over A$500M capital invested, across a broad portfolio of regional financial services businesses Financial Ca CMG. | ‘Secvice: mW CommSew 4B ose Financial Solutions Me eet AMTD * » Banking - HK (Retail & institutional) » Life insurance, pension admi
Slide 9: Key phases of evolution since 1991
Key phases of evolution since 1991: Bayi STRATEGIC EVOLUTION Management ae | | Online Service Bae
Slide 10: Household debt; ageing population driving productivity challenge
HOUSEHOLD DEBT Ageing population driving productivity % {% of disposabie income) % challenge % GDP por ‘0 capita growth 28 vO 2 90 18 60 ' 30 os ° O° Past Future 79 082 085 Aas 991 B94 9 2000 2003 June Source: Interyenerational Report
Slide 11: Our vision
Our vision #£41 ja: Through
Slide 12: We need to play to our strengths while addressing our weaknesses
We need to play to our strengths while addressing our weaknesses = F477 BU RE BANIMLA:, A P S Performance Culture is a “from-to” story. It’s all about where we are now, where we want to be, and how we are going to get there. Significant effort has been going into getting a firm grip on what our star
Slide 13: Top 15% vs Bottom 15% teams by engagement scores
SEAS Beak « Top 15% vs Bottom 15% teams by engagement scores Sales Performance 32% Service Performance 8% Turnover 22% Absenteeism 20% 13
Slide 14: Transformation
Transformation #c# integrated customer view «= High standards End-to-end processes Needs-based servicing » Clear Key Performance Decreased bureaucracy and products Indicators (KPIs) Scale in purchasing Upgraded distribution » Regular feedback & Simplified products and channels coaching systems Custo
Slide 15: We started with 'no regrets' changes at the frontline
We started with ‘no regrets’ changes at the frontline DAME 52 HOE cs HH BC Simpler Key Performance Indicators Proactive service and sales disciplines (Group-wide) “Front of house” branch managers Eliminate or redirect administration to increase customer contact time Better service and sales reportin
Slide 16: Sales productivity is improving
Sales productivity is improving... 4) #24 iF & Product Safes per Staff Member JAN FEB MAR APR MAY JUN Cross Sales Ratio JAN FEB MAR APR MAY JUN +22 JUL AUG SEP JUL AUG SEP [2004 ++ 2003 El] 2004 ++ Benchmark 16
Slide 17: We adopted a similar approach for processing
We adopted a similar approach for processing BATRA LAS TERE Reduced re-keying and paper handling Streamlined approval processes Improved responsiveness Increased accuracy Removal of obstacles and redundant activities Lean manufacturing principles 17
Slide 18: Significant improvements in turn-around times
Significant improvements in turn-around times ARBRE Merchant acquisition new accounts 70% +1 days to 2.6 days Credit decisioning 32% 8 hours to §.5 hours Home Loan "Letters of Offer” +1 days to 5 days Cheque processing 8 hours to § hours 18
Slide 19: Technology has supported these changes
Technology has supported these changes FLEURY Branch telling system Referral management Inbound call management Mortgage origination and servicing Deposit origination and servicing e Management information systems 19
Slide 20: Key investments in 2005
Key investments in 2005 (2005449: 22%) Customer Service NetBunkCentre G wh NEbBabk 36 now better than ever ene a a a alae EROS Bs 28. 20
Slide 21: Branches have been redesigned
Over 140 branches have been redesigned HRB 1405947 21
Slide 22: We have focused on both motivators and disciplines
We have focused on both motivators and disciplines 22
Slide 23: Our staff will star in our advertising
Our staff will star in our advertising Te BAN Which new star? 7 23
Slide 24: Conclusion
Conclusion 4i¢ HPD A 8, 4 Hoc, AZ. WA ZONA, ZA. EF TCHI600 “We make doors and windows for a room. But it’s the space that makes them liveable. While the tangible has advantages, it is the intangible that makes it useful.” Lao Zi, 600BC 2s 24
Slide 25: Commonwealth Bank of Australia
Commonwealth Bank of Australia TUNER FRAT Transformation Journey in Retail Banking WS ASRAT NS SE ATE Hugh Harley Group Executive Retail Banking Services RA BRT MATS IRS Future of Banking in China Conference October 2004 25
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