Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — Investor Presentation (May 2003)
29 slides from Commonwealth Bank Of Australia's investor presentation, May 20, 2003
Slide 1: Strategy Briefing
Strategy Briefing Michael Ulimer Institutional and Business Services 20 May 2003 Commonwealth Sari ¢« Good morning. * | am delighted to have this opportunity to present to you today. Page 0
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, 20 May 2003. 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 in
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.” Serernonneonaattn £02: up — Page 2
Slide 4: Agenda
Agenda » Profile * Strategy * Performance * Future i | will discuss IBS’ profile, strategy, performance and future. Page 3
Slide 5: Profile
Profile Clients and Access Clients Business Banking centres Corporate Banking sites Access to Branches Locations Financials Average assets Net profit after tax 193,500 50 18 1,000 Australia, New Zealand, UK, USA, Hong Kong, Singapore, Tokyo $90 billion ~ 30% of the Group Ups. ¢ Institutional and Bus
Slide 6: Agenda
Agenda * Profile - Strategy ee * Performance * Future Page 5 ee ee
Slide 7: The Vision
The Visior CBA Vision and IBS Goals Business Goals: Divisional Goals: | ‘businesses through relationship ] -that anficipate their needs 1. Serve institutions, corporates and Management, to provide financial solutions ] 2 Provide world class finance, capital and risk management products bundled in a
Slide 8: Our strategy is focused on growth & productivity
Our strategy is focused on growth & productivity... Aspirations: IGS is aiming for market leacdersivip... Strong client franchise #1 or #2 in each of our established businesses in Australia Niche product driven growth in our offshore business Innovative, differentiated services One team, desirable p
Slide 9: Underpinned by a strong emphasis on people
.. underpinned by a strong emphasis on people Instill a culture of ownership, collaboration and innovation Ensure continuous development opportunities Right level of delegations Balance of personal motivators and performance disciplines Measure, recognise and act on results Serernonneonaattn £02: up
Slide 10: To date we have made significant progress
To date we have made significant progress Amalgamation of activity Streamlined structure IBS Redesign programme Clear client segmentation with differentiated service models Focussed international strategy Active Portfolio Management operating model implemented Product innovation To date, we have mad
Slide 11: The Redesign is a critical change initiative
The Redesign is a critical change initiative... Cost-to- Market Client Cant Totat_ «= Number Income Share ' Focus of Turnover Footings. of 2002 2002 Relationship Change Segment {Sm} {Sm} Cilants (%a} U%) Modet toltialives 800 26 | + Beapen eelationship J Sespen relationshie + Efficiency gains 0.15-0
Slide 12: And much work has been completed
..and much work has been completed 2002 2003 fet Nov Dec das Feb War Ape May dune duly Dee Migrate and consolidate BB & CB Centres SAMA ACT Design streamlined credit processes > fs} 6 | Test strearnlined credit processes Implement streamlined credit processes > Establish Client Service Centre (CSC}
Slide 13: Agenda
Agenda * Profile * Strategy _ Performance * Future Page 12 Sermooneenaliti £27:
Slide 14: Over the year, we have completed some notable deals
Over the year, we have completed some notable deals é B Auausi 2003 Gqover 2007 2S. arsorviges rene, : Global ae MSs AE ‘Transaction 7 Lasse Adviser Lossee Advisor : Leasing ‘Ai Traffic. Cargo Handing & Banking Management Cataring Systems US$ 552,000,000 US$ 237,000,000 Australia Singapore pro SO ae
Slide 15: Our standing in client satisfaction amongst institutions is good
Our standing in client satisfaction amongst institutions is good... | Banking) iii Will i : : Primary: Primary: Relationship Relationship:- Relationship - Relationship Bankers Cool Treasury & Management Management, | Financial gem Lo Markets 1. BNP 4. CBA 1. Deutsche 1. SGB Zz, CBA 2. MBL 2. CBA. 2.
Slide 16: Equally encouraging amongst mid-corporates
..and is equally encouraging amongst mid- corporates... _ Transaction Ban | Relationship | | Loyalty to the | Account - | Loyalty to the | | Quality of - Management || Relationship || _ | Management || Relationship || People 4. SGB +. CBA 1. JPM 4. CBA 4. CBA 4. CBA 2. JPM 2. BNP 2. ABN 2. SGB 2. SG
Slide 17: And business clients
..and business clients n with Main Financial Institution Rel =) Main Bankclients. | CBA ANZ NAB WBC Very Dissatisfied T% 5% 6% 5% Fairly Dissatisfied 9% B% | 10% | 9% Neither Satisfied nor Dissatisfied 32% | 24% | 26% | 28% Fairly Satisfied 32% | 34% | 32% | 33% Very Satisfied 21% | 29% | 25% | 25%
Slide 18: Product market shares in the institutional segment are competitive
Our product market shares in the institutional segment are competitive... Corporate Bonds T5% 111% 12.9%, 18.6% Transaction Banking - Primary Relationship Market Share - . o ° Z Z uc | 38.3% 32.7% 32.0% 60% ae, Lae CBA Deutsche UBSW NAB ABN Global Loans 13.0% 12.4%h i Barctays CBA Deutscho WiC ANZ a
Slide 19: Similarly competitive in the corporate segment
..and are similarly competitive in the corporate segment... Commercial Bits Owse Gnee aca, Transaction Banking - Primary Relationship Market Share 160% Jutaz Jano Other 80% 60% 40% Jal 62 Jan 08 Interest Rate Swaps. 20% a 0% Feb 02 Aug 02 Fab 03 Jel 02 Jan 03 FX Options HcsA ANZ MNAB OWsc other Sour
Slide 20: And in the business segment
..and in the business segment Borrowings 30% 7 25% 20% 15% 10% 5% 0% ZNAB CBA BANZ owsc March 02 March 03 Sourco: Business Finance Monitor - Businesses with tumover up t $40m + In the business segment, our share of borrowings is stable and we have maintained our position as number 2 in this market.
Slide 21: Market share of aggregate lending balances maintained
Market share of aggregate lending balances maintained 45.5% Business Lending Market Share = 15.0% ry s & 14.5% 3 * 3 14.0% 135% 5 aa B25 2 SRF CSRS es 5 5 § 2-87 528 5S > G6 2858 ——CBA Rolling 12 Mth Mkt Share (%) Source: RBA Ail Business Lending iConmmanmawatine is? ae SP 29. + Looking at aggregate
Slide 22: Agenda
Agenda » Profile * Strategy * Performance | Future Page 21 Sermooneenalitie 2?
Slide 23: Issues going forward
Issues going forward Industry and regulatory issues Uncertain outlook for business credit growth Growth in pool of investable funds outstripping asset creation Financial Services Reform Act Implications of International Accounting Standards eg IAS39 Reform of credit card and debit card schemes IBS T
Slide 24: Strategy Briefing
Strategy Briefing Michael Ulimer Institutional and Business Services 20 May 2003 Commonwealth Sari Thank you for your attention. As you have heard, much has been achieved in the last 12 months, client satisfaction and market share are encouraging and there is still more to be done. + My direct repor
Slide 25: Supplementary Slides
Supplementary Slides Page 24
Slide 26: IBS is structured into client and product groups
IBS is structured into client and product groups... | Manage Client relationships. | | Dasign and manufacture product | Institutional Corporate Business Global vowing Institutional Banking Banking Banking Markets $ ‘apital Banking ervices Capital and Locat Integrated Financial Products to Product ra
Slide 27: Led by an experienced leadership team
«led by an experienced leadership team Page 26
Slide 28: Overall, our risk profile continues to remain sound
Overall, our risk profile continues to remain sound Top 20 exposures as a % of Total Commercial Portfolio Committed Exposure 4.0% 3.5% 3.0% 5 —__ —__ 2.5% 100% 2.0% 1.5% 80% 36 Other 39 Other 40 1.0% 0.5% —_ 0.0% Dee Dee Dee 60% 2000 2001 2002 BBB BBB 40% A A Bad Debt ExposurefRisk Weighted 20% Asse
Slide 29: Uncertain business credit growth and tightening spreads
Uncertain business credit growth and tightening spreads | CREDIT {8 month-ended anaal rates} CREDIT fanngal % change} » Loe 7 nf | : ‘ res “ mel (CBA INVESTMENT INDICATOR: ‘CBA BUSINESS APPROVALS: sto. (1997198100) nen {deviation from average} Phd Page 28 « Business credit remains quite volatile on
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