Commonwealth Bank of Australia · ASX:CBA

Commonwealth Bank of Australia — H1 2005 Earnings Presentation

18 slides from Commonwealth Bank of Australia's earnings presentation, Feb 9, 2005

  1. Slide 1: Presentation of Half Year Results for 31 December 2004

    Presentation of Half Year Results for 31 December 2004 David Murray Chief Executive Officer 9 February 2005 www.commbank.com.au 1

  2. 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, 9 February 2005. It is information given in summary form and does not purport to be complete. It is not financial product advice and is not in

  3. Slide 3: Agenda

    Agenda „ Interim Results „ Which new Bank „ Outlook 3 3

  4. Slide 4: Which new Bank financial context

    Which new Bank financial context 42% growth $1,371m $1,240m $1,455m $1,756m Jun 03 Dec 03 Jun 04 Dec 04 Cash NPAT WnB Costs (after tax) 4 4

  5. Slide 5: Profit

    Profit Dec 04 Dec 04 Jun 04 Dec 03 v. $M $M $M Dec 03 „ Statutory NPAT 1,859 1,329 1,243 50% „ Cash NPAT 1,756 1,455 1,240 42% 5 5

  6. Slide 6: Dividend

    Dividend 200 183 180 1 04 154 160 150 136 85 140 130 82 C en ts p er sh ar 115 75 120 72 102 104 66 100 90 58 82 57 80 52 46 85 60 79 60 68 69 42 36 58 61 40 45 46 49 22 38 36 20 24 20 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 F irst Half Secon d Half 6 6

  7. Slide 7: Business highlights

    Business highlights „ Strong performance of Australian and New Zealand banking operations „ Significantly higher profit growth in funds management „ Market share positions maintained „ Productivity improvements in all businesses „ Which new Bank benefits delivered „ Margins stable 7 7

  8. Slide 8: Expense ratios

    Expense ratios Cash basis 54.7% CAGR = 6% 50.1% (1) Banking 50.4% (2) CAGR = 8% Insurance 44.9% 0.87% CAGR = 11% Funds (3) 0.74% Mgt Jun 03 Dec 04 (1) Expense to income (3) Expense to average funds under administration (2) Expense to average inforce premiums 8 8

  9. Slide 9: Market shares

    Market shares Dec 04 Jun 04 Home Loans 19.6% 19.3% Business lending 13.5% 13.8% Credit Cards (Nov) 23.2% 22.7% Retail Deposits 23.4% 23.6% Funds Mgt. – Aust. Retail 14.7% 14.4% Aust. Life Insurance 14.6% 14.8% NZ lending 22.7% 22.2% NZ deposits 18.7% 17.5% 9 9

  10. Slide 10: Which new Bank

    new Which Bank 10

  11. Slide 11: Customer service

    Customer service „ 79% of branches serving customers within 2 mins „ 70% of all branch home loan application approvals provided on-the-spot „ Significantly lower complaint level following introduction of CommSee in Tasmania 11 11

  12. Slide 12: Customer service

    Customer service Strength of Relationship 10 6.1 6.1 5.9 5.7 5.8 5.8 5.8 0 Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec 03 03 03 04 04 04 04 Source: Research International 12 12

  13. Slide 13: Engaged people

    Engaged people Nov 03* Nov 04* „ We put the customer first 36 74 „ Clear idea of where CBA is headed 63 72 „ Ideas and knowledge shared freely 38 53 * % people who agree with statement Source: CBA Cultural Survey 13 13

  14. Slide 14: Simple processes

    Simple processes „ Process simplification - 24 ‘CommWay’ initiatives completed - 63% average improvement in turnaround times „ Cost savings efficiencies - Supplier panels renegotiated - Support functions redesigned 14 14

  15. Slide 15: 2004/05 milestones

    2004/05 milestones Milestone Percentage complete* Target date 1. Service & Sales Management - remaining staff trained 60% Jun 05 2. Branch Refurbishment - refurbish 125 35% Jun 05 Customer 3. NetBank - new service implemented 90% Mar 05 4. CommSee - platform built and deployment commenced 95% Apr 05

  16. Slide 16: CommSee service potential

    CommSee service potential One integrated system CommSee client system - Interactions - Referrals - Relationships Our people - Images - Service & Sales Training Our customer Product systems - Client data service Transactions 16 16

  17. Slide 17: Outlook

    Outlook „ Cash EPS growth full year 2005 25% to 30% „ CAGR* cash EPS now estimated to exceed 12% over 2003 to 2006 „ Confident of delivering other Which new Bank commitments: - 4-6% compound annual productivity improvement - Gain profitable market share growth across major product lines - Increase t

  18. Slide 18: Presentation of Half Year Results for 31 December 2004

    Presentation of Half Year Results for 31 December 2004 David Murray Chief Executive Officer 9 February 2005 www.commbank.com.au 18

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