Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — Investor Presentation (May 2003)
28 slides from Commonwealth Bank Of Australia's investor presentation, May 20, 2003
Slide 1: Strategy Briefing
Strategy Briefing Hugh Harley Retail Banking Services 20 May 2003 * In August David outlined the new corporate strategy and new vision for the Group built around ‘service, efficiency and people’. * This morning | will be introducing you to the strategy and initiatives RBS has developed to enable us
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.” Commonweaiingsk < ¢ 3
Slide 4: RBS Profile
RBS Profile Our staf - Qur footprint - 18,000 people Leading market share in core {including operations) Retail products ~ total footings Our network - of $169.6b6n at 34 March 2003 * Ezy Banking - over 758 Woalwosths stores All data ag et 30/04/03 unless specified + Along with our leading market sh
Slide 5: Our Strategy is aligned to the Group Vision
Our Strategy is aligned to the Group Vision Divisional Goals: The Vision Business Goals: Recognising the unique Understanding lifetime financial needs of customer Haeds Customers. : Simplifying products, delivering choice of access. Providing services that are best in segment with choice of access E
Slide 6: Our Strategy is aligned to the Group Vision
Our Strategy is aligned to the Group Vision The Vision Business Goals: Divisional Goals: customers. | Providing services that are » Best in segment with chok : ef access A core focus is to understand our customers needs so we can deliver on the ‘valued service’; through traditional research and segm
Slide 7: By understanding customer needs, RBS' strategy will deliver better service
By understanding customer needs, RBS’ strategy will deliver better service, improved retention and higher cross sales Sales Cross-sell and retention focus Service Respecting our customers Rhesviiviaiwenaatts (x8. iy 7] In understanding our customers’ needs, we are focused on both sales and service o
Slide 8: Service quality is core to our strategy & results show significant improvement
Service quality is core to our strategy & results show significant improvement in key areas 41% increase in errorfree home loan applications. -. jAverage taller queue time CA down from:4.25 mins to. 3.44 mins 33% improvement in Service recovery. ‘Opportunities: ATM availability. increased from 92% t
Slide 9: A national queue management program has started in 2003
A national queue management program has started in 2003 and early results are positive A 20% decrease in rolling fortnightly queue time since the introduction of the program W, A 52% decrease in queue lengths in a U i i) pilot programme of very busy branches Sareniviriweiniatts fiir. 9] * A Queue Ma
Slide 10: We have the potential to build a unique service model
. We have the potential to build a unique service model which combines low cost delivery with customer respect The Retail Sank’s service model will Programs are now im place te drive he differentiated by its - the service model, thease include - la > Accessibility. +. The targest network driving low
Slide 11: Targeting a significant increase in products per customer through cross-sell
The Retail Bank is targeting a significant increase in products per customer through a clear cross-sell strategy We are targeting increasing our products per adult customer from 2.5 to 2.8 by Decernber 2004, focusing on the following areas: Segment specific product bundling Targeted marketing Sales
Slide 12: A centralised sales leads system has been implemented
A centralised sales leads system has been implemented which is delivering positive results fi Generated sales leads are 50% above target Contact rate is 20% above target {} Conversion rate is 150% above target ‘y One in ten calls generates an unsolicited referral onion 2. Op 12 « Akey focus has also
Slide 13: A cost effective acquisition & increased focus on youth customers
. A cost effective acquisition & increased focus on youth customers differentiates leadership position CBA is the clear market leader with 2.33 million youth customers 80% of adult CBA customers are acquired when they are 25 years or under % School banking is a unique CBA \ channel for mass customer
Slide 14: Our Strategy is aligned to the Group Vision
Our Strategy is aligned to the Group Vision The Vision Business Goals: | Divisional Goals: DINO The second core strategic focus for the Retail Bank to deliver the Group Vision is to: ¢ Simplify products « Deliver choice of access 14
Slide 15: Simplifying transaction account products with a monthly account fee
Simplifying transaction account products with a monthly account fee has met expectations We have responded to the opportunity of our large number of transaction accounts by simplifying our product and fee structures The balances lost from introducing the monthly account keeping fee has been well wit
Slide 16: Home Loan growth remains strong
Home Loan growth remains strong Home Loan growth remains strong with market share stable aided by slowing run off and increasing penetration of 3rd party market. Home Loan growth year to March 03 is 15% (CBA Group 17.5%) Market share stable Share of 3rd party market growing Market share increase fro
Slide 17: Re-engineering the RBS home loan value chain
We are successfully re-engineering the RBS home loan value chain to provide improved returns, service experience and costs + Disjointed online visw of cuslormers cument relatcnship wih CBA + Multpfe loan eriginatiae sysieme llional approwal of Rome en for Leas qualiieasion 5 mols comisined kale, ser
Slide 18: Credit card market share is growing despite a challenging environment
Credit card market share is growing despite a challenging environment Mitigants of portfolio cross-subsidisation » Focus on transaction initiatives 6.g'cash advance fee, FX fees and late payment fees Personal Credit Card market share of outstanding balances has grown from 21.6% at end of June 02 to
Slide 19: Our leading deposits market share position is being maintained
Our leading deposits market share position is being maintained despite new entrants competing aggressively Defend and « grow our current competitive _ Position. ae : : Enhancing and rationalising our existing _ product sulte to accommodate more further _ growth : : . Leverage the customer franchise
Slide 20: Our Strategy is aligned to the Group Vision
Our Strategy is aligned to the Group Vision The Vision Business Goals: | Divisional Goals: DINO The third core strategic focus for the Retail Bank to deliver the Group Vision is to: * Strengthen performance culture driven by sales and service 20
Slide 21: Cultural change with a clear focus on sales and service is underway
Cultural change with a clear focus on sales and service is underway with positive results « Measurement and incentives aligned to sales and service, with clear reward and recognition linked to Customer responsiveness and queue lengths Cross-selling and retention « A sates and service coaching progra
Slide 22: Our Strategy is aligned to the Group Vision
Our Strategy is aligned to the Group Vision The Vision Business Goals: Divisional Goals: The final core strategic focus area for the Retail Bank to deliver the Group Vision is to: + Leverage the Retail Bank’s infrastructure and scale position as the largest retail bank in the country 22
Slide 23: Our restructuring initiatives for 2002-03 will be successfully completed
Our restructuring initiatives for 2002-03 will be successfully completed We are on track with the Retail component of the Group strategic initiatives: Targeted efficiency gains across the retail bank has been delivered. This equates to a reduction in excess of 1000 staff across the network . The spe
Slide 24: A major branch redesign and refurbishment program is underway
A major branch redesign and refurbishment program is underway to optimise our network for sales & service » We are commencing a major refurbishment of the entire network in 2003/2004 with 100 branches to be refurbished initially. » Prioritisation is based on profile and economic opportunity. Refurbi
Slide 25: In summary, our strategic focus areas
In summary, our strategic focus areas Leverage infrastructure B scale In summary, the Retail Strategy is focused on four key fronts. ¢ To better understand and meet the needs of customers through our sales and service models « Simplifying products across Retail while extending choice of access to cu
Slide 26: Results are clearly showing the retail strategy is delivering
Results are clearly showing the retail strategy is delivering... Ce IAs ee | Simplified rancaction account product has tesulted in increased profitability without competitive impact Results are already flowing through and make it clear that the Retail strategy is hitting the mark - * service quality
Slide 27: Strategy Briefing
Strategy Briefing Hugh Harley Retail Banking Services 20 May 2003 * Q&As 27
Slide 28: RBS has restructured to deliver the Strategy
RBS has restructured to deliver the Strategy... Our teams are now organised around the core, foundation products for nearly ali our customer relationships, and those products which are associated with more specific customer groups and are of higher value... Group Executive Retail Banking Services (R
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