Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — H1 2003 Earnings Presentation
12 slides from Commonwealth Bank Of Australia's earnings presentation, Feb 12, 2003
Slide 1: Half Year Results Presentation to Media
Half Year Results Presentation to Media David Murray 12 February 2003 Www.commbank.com.au Conmonweailth 227 : \
Slide 2: Economic environment
Economic environment : Challenging operational environment » Global: Political and economic uncertainty Continued declines in equity markets « Domestic: Drought consequences affect economy Housing cool-down likely to halt wealth effect Subdued business credit demand continues February 2003 _ (Common
Slide 3: The Bank's key objectives in this environment
The Bank’s key objectives in this environment » Respond to customer and shareholder demands and preserve combination of quality, security and stability « Customers: Access: reliability Service: improving quality standards # Shareholders: Security: prudent capital and credit quality management Income
Slide 4: Providing shareholder income: Slight increase in cash profit
Providing shareholder income: Slight increase in cash profit... Dec 2001 % Change Statutory Net Profit After Tax $1,204m (48%) Net Profit After Tax (cash basis)* $1,192m 1% Earnings per Share 94cps 1% * ie excluding appraisal value uplift/reduction and goodwill amortisation. Unless otherwise stated
Slide 5: Resulting in the highest dividend payout ratio among major banks
Resulting in the highest dividend payout ratio among major banks: Dividends per Share Dividend Payout Ratio 1995 Dec 2001 Change 68cps 1% 72.6% - 1997 1999 2001 2003 First Half @ Second Haif Conmonwealth Bark “> 5
Slide 6: Divisional breakdown: Sound growth in Banking offset by weaker Wealth Management
Divisional breakdown: Sound growth in Banking offset by weaker Wealth Management Net Profit After Tax Change 31Dec02 30Jun02 #£31Dec01 YoY% Banking $1,079m $1,092m $975m 11% Funds Management $135m $186m $182m (26%) Life Insurance ($6m) $31m $35m (117%) » Retail banking strong, business and corporate
Slide 7: Providing shareholder security: Capital Adequacy
Providing shareholder security: Capital Adequacy = Capital position remains strong = Hybrid note issue and share buyback on hold Regulatory Target Capital: Tier 1: 6.5% - 7% Total Capital: 9% - 11% 31/12/02 30/6/02 31/12/01 Actual Capital: Tier 1 7.06% 6.78% 6.75% Tier 2 4.08% 4.28% 4.27% Less Deduc
Slide 8: Colonial merger - a situation update
Colonial merger - a situation update Growth in asset value: Maintained value of life insurance Added value to funds management Banking: Integration synergies achieved ahead of schedule Higher risk / lower quality assets divested: United Kingdom - life insurance and private client business Thailand,
Slide 9: Appraisal value
Appraisal value » Conservative approach, based on external market conditions: » Market volatility and uncertainty « Lower industry funds flows » Result: » Reduction in underlying appraisal value of $426 million » Lower by $780 million than independent valuation » Consistent with valuation in June 20
Slide 10: Results flow from Bank strengths
Results flow from Bank strengths » Higher profits despite continued weakness of environment made possible by: » Disciplined adherence to service improvement » Experience in managing difficult conditions » Active implementation of sound strategy Commonwealth Bank “> 10
Slide 11: Outlook - General
Outlook - General » Global situation remains uncertain: « Political tension » Economic weakness « Fragile equity markets » Domestic situation less supportive: » Economy holding up well, but likely to slow » Competitive industry pressures February 2003 _ (Conmonwealth Bak “> 44
Slide 12: Outlook - Bank
Outlook - Bank » Continued focus on service, income and security » Commitment to sustainable business growth, strong credit quality standards and high dividend pay-out ratio through growth in cash earings » Strategic positioning to benefit from any improvement in external conditions » Continued effi
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