Commonwealth Bank of Australia · ASX:CBA
Commonwealth Bank of Australia — FY2004 Earnings Presentation
20 slides from Commonwealth Bank of Australia's earnings presentation, Aug 11, 2004
Slide 1: Full Year Results
Full Year Results Presentation to Media David Murray Chief Executive Officer 11 August 2004 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, 11 August 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 to
Slide 3: Agenda
Agenda Full Year Results Which new Bank Outlook 3
Slide 4: A very good result
A very good result 2004 2003 Increase $m $m % Statutory NPAT 2,572 2,012 27.8 Cash NPAT 2,695 2,579 4.5 Underlying Cash NPAT 3,078 2,674 15.1 4
Slide 5: Strong performance by each business
Strong performance by each business Underlying Net Profit After Tax 2004 2003 Increase $m $m % Banking 2,675 2,376 13 Funds Management 274 233 18 Insurance 129 65 98 Banking: reflects strong performances of retail operations Funds Management: benefited from strong investment markets Insu
Slide 6: Largest dividend increase ever
Largest dividend increase ever Increase 2004 2003 % Dividends per share 183c 154c 19 Payout ratio (cash basis) 89.1% 75.9% Dividend (cents per share) 183 1 9 0 150 154 1 0 4 1 7 0 136 1 5 0 130 8 2 8 5 1 3 0 115 104 7 5 C e n ts 102 7 2 1 1 0 90 Cents 6 6 82 5 7 5 8 9 0 5 2 7 0 60 4 6 7 9 6 8 6
Slide 7: Key shareholder ratios
Key shareholder ratios 2004 2003 Shareholder Ratios (1) Earnings Per Share (2) 207 cents 203 cents Return on Equity 13.2% 13.3% Dividends Per Share 183 cents 154 cents Payout Ratio 89.1% 75.9% Underlying(3) EPS was 237 cents (+13% v. 2003) Underlying(3) ROE was 15.1% (+1.3% v. 2003) (1) Base
Slide 8: Which new Bank
new Which Bank ConmonwealthBank y
Slide 9: Reminder – three service transformation themes
Reminder – three service transformation themes „To excel in customer service‟ via Engaged people Simple processes Customer service who are empowered, Supported that are fast, accurate that is responsive, Through by motivated and and efficient convenient and skilled to deliver reliable Customers are
Slide 10: Our achievements - first nine months to June completed successfully
Our achievements - first nine months to June completed successfully June 2004 milestones completed as planned 2003/04 spend delivered within planned investment 2003/04 benefits exceeded targets Market shares broadly stable Staff are engaged 10
Slide 11: We are changing the way we do things - Service and Sales Management
We are changing the way we do things - Service and Sales Management Results of national retail implementation Focussing on Product sales per staff member 113 113 service in 103 108 107 107 2003 100 100 everything we do 100 90 92 86 Continuous reinforcement of service Jan -04 F eb -04 M ar-04 Ap
Slide 12: We are changing the way we do things - streamlining processes
We are changing the way we do things - streamlining processes Turn around time improvements Viewing processes from the customer’s Merchant acquisition new 70% perspective accounts 11 days to 2.6 days Emphasis on training Credit 32% decisioning and continuous 8 hours to 5.5 hours improvement Thir
Slide 13: We are changing the way we do things - IT Efficiency and Procurement
We are changing the way we do things - IT Efficiency and Procurement Example: Mainframe processing efficiencies Key IT services 11400 11200 reviewed 11000 10800 Systematic 10600 approach to all Hours used 10400 procurement being 10200 implemented 10000 9800 Targeting efficiency 9600 9400 savin
Slide 14: We are changing the way we do things – Performance Culture and engagement
We are changing the way we do things – Performance Culture and engagement Leading by 2004 Gallup Workplace survey example 5 3.99 Reinforcing 4 3.70 3.84 3.95 behaviours as well 3.30 as outcomes 3 Mean 2 Staff have been significantly 1 engaged 0 throughout 1999 2001 2002 2003 2004 Year Which ne
Slide 15: Our customers - relationship is strengthening
Our customers - relationship is strengthening Strength of Strength of relationship relationship is 7 building Rigorous monitoring of Score 6.1 6.1 6 5.8 5.8 customer service 5.7 standards Results are 5 Apr-Jun 04 encouraging Apr-Jun 03 Jul-Sep 03 Oct-Dec 03 Jan-Mar 04 Time 15
Slide 16: Which new Bank – our approach is different
Which new Bank – our approach is different Across the Bank we share a single vision – to excel in customer service Our people, systems, performance and culture are all being interconnected and aligned Evidence is that there is collaboration and development of common systems across the business
Slide 17: 2005 outlook - Economy
2005 outlook - Economy Global — Noticeable improvement — Expected monetary tightening Domestic — Continued good performance — Domestic spending growth slowing — Housing slow down manageable 17
Slide 18: 2005 outlook - Bank
2005 outlook - Bank Subject to current market conditions continuing: Over the three years 2004-2006 we will deliver: — Cash EPS growth exceeding 10% CAGR — 4-6% CAGR productivity improvements — Profitable market share growth across major product lines — Increases in dividend per share each year
Slide 19: Overall summary
Overall summary Results – very good Which new Bank – meeting expectations Staff – enthusiastic, participating and engaged Outlook – positive for the Bank 19
Slide 20: Full Year Results
Full Year Results Presentation to Media David Murray Chief Executive Officer 11 August 2004 www.commbank.com.au
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