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									Roadshow Presentation
         David Murray
       Chief Executive Officer

       Michael Cameron
        Chief Financial Officer

  Commonwealth Bank of Australia
        November 2003

                                   1
Disclaimer


  The material that follows is a presentation of general
  background information about the Bank‟s activities
  current at the date of the presentation, 3 November
  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 investors or potential
  investors and does not take into account the
  investment objectives, financial situation or needs of
  any particular investor. These should be considered,
  with or without professional advice when deciding if
  an investment is appropriate.


                                                           2
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.”




                                                      3
Roadshow Participants:
Commonwealth Bank of Australia

     David Murray
      Chief Executive Officer

     Michael Cameron
      Chief Financial Officer

     Carolyn Kerr
      Executive General Manager
      Investor Relations




                                  4
Agenda
   Operating Environment

   Performance

   Transformation




                            5
The Operating Environment




                            6
Australia’s economy has been resilient

                         AUSTRALIA: HOW WE
      %
      6
                             COMPARE


                                                                                       United States


                                                                                       Australia

      3




      0
           Average       Average     Reduction Increase in    Reduction   Average
          growth rate    inflation      in       current      in budget productivity
                           rate      unemploy-   account        deficit   growth
                                     ment rate    deficit
                        Source: RBA, OECD. Data is for calendar years 1992-2002.

                                                                                                       7
  Credit growth has been strong, but banking
  margins have been squeezed
        Credit (3 month ended                              Average Operating Margins*
%                                                          4 Major Banks (1997 - 2002)
        annual rates)                            %
30                                                   3.9
         Other personal        Housing
20                                                   3.7

                                                     3.5
10
                                                     3.3
 0
                                                     3.1
                           Business
-10                                                  2.9
      Jul- Jul- Jul- Jul- Jul- Jul- Jul-               1997 1998 1999 2000 2001 2002
       97 98 99 00 01 02 03                           *Margin calculated as Total Income/Total Controllable Assets

                          Source: Reserve Bank         Source: Company Financial Statements

                                                                                                                8
 Demographic changes place emphasis
 on self funded retirement
                                Projected Size of Various Product Segments
300                                                                       7

                   Funds Management                                       6
                                                                                                 Life Insurance
250

                  Value at June 2002                                      5               Value at June 2002
200               Projected Value to June 2012                                            Projected Value to June 2012

                                                                          4
150
                                                                          3

100
                                                                          2

50
                                                                          1


 0                                                                        0
      Annuities     Alloc. W'sale       Corp.      Unit    Pers.                     Dis ability        Group Ris k        Term & Traum a
                  Pensions Savings      Super     Trusts  Super
                                       M'trusts
                                         Source: DEXX&R projections February 2003. Funds management data assumes 5% post fee returns.

                                                                                                                                            9
Performance




              10
   FY03 result: 3% improvement in cash profit
   and 9% improvement in underlying profit


                                                      June 2003           June 2002                Change

Net Profit After Tax (cash
                                                     $2,579m                 $2,501m                        3%
basis)*

Net Profit After Tax
(underlying)**                                       $2,687m                 $2,468m                        9%



* ie excluding appraisal value uplift/reduction (2003: -$245m; 2002: $477m) and goodwill amortisation
  (2003: $322m; 2002: $323m). Unless otherwise stated the numbers in this presentation refer to the net
  profit after tax (cash basis) and all comparisons are to the prior comparative period.

**ie cash profit excluding first time expenses of restructuring initiatives and employee share plan costs



                                                                                                                 11
Banking performance drove underlying
growth of 9% in FY03
 $m                 Underlying Growth of 9%
2900

                                                               First Time
2800
                                                               Expenses
                                                       2,687      (181)
2700
                                                                                Investment
                                                                                  Returns
                                          Funds                                     73     2,579
2600                                    Management
                                           (132)
2500      2,468

                   Banking
2400                             Life
                     334
                              Insurance
                                  17
2300


2200
        Underlying B anking
          Jun-02                 Life      Funds    Underlying Firs t
                                                     Underly ing        tim e     Inv es t   Cash Profit
                                                                                               Jun-03
       Profit Jun-02          Ins urance              D Jun-03
                                                   Profitec 02                     Earn       Jun-03


                                                                                                           12
   Key shareholder ratios improved


                                June 2003 June 2002                             Change

Earnings per Share               203 cents            197 cents                          3%

Dividend per Share               154 cents            150 cents                          3%

Dividend Payout Ratio                     76%                  76%                           -

Return on Equity                    13.27%                13.12%                         2%

Tier 1 Capital Ratio                 6.96%*                 6.78%                        3%


For more information, visit: www.commbank.com.au/shareholder
                                * This ratio does not include the USD550m hybrid capital issue
                                undertaken in August 2003.
                                                                                                 13
 Another record dividend

                                     160                                                              150 154
                                                                                              136          85
•Final dividend of 85 cps,           140                                                130
                                                                                                      82

 up 4% on pcp                                                                    115     72
                                                                                              75
                                     120
                                                                           104
                                                                    102          66
                                     100                      90           58
                                                                     57
                                                       82
•Payout ratio of 75.9%       Cents   80                        52
                                                       46
 remains highest among                            60
                                     60                                                               68   69
 major banks                                      36                                     58   61
                                           42
                                     40                                    46    49
                                            22                       45
                                                       36      38
                                     20           24
                                            20
                                      0
                                           1993        1995         1997         1999         2001         2003

                                                            First Half                  Second Half


                                                                                                                  14
                  Further improvement in the portfolio
                            Top 20 Exposures to Corporates (Committed)               Well Diversified Portfolio by Industry
                            (Top 20 exposures are 3.3% of total committed                           Energy Telcos
                                                                                                                          Technology
                            exposures of $229 billion)                                         Leasing
                                                                                                                                Aviation
                            A-                                                         Construction
                            A-
                            A-
                           BBB
                           BBB-                                                      Finance                                    Other
S&P Rating or Equivalent




                            A-                                                                                                  Commercial
                            A-
                            A+
                            A+                                                      Agriculture
                            A-                                                        Government
                            AA-
                           AAA                                                                    A High Quality Portfolio
                            A+                                                       100%

                           BBB-                                                                36                               37
                                                                                      80%                 39         40
                           BBB+
                            BB                                                        60%
                                                                                               15         15         14         16
                            A+                                                                                                             63%
                                                                                      40%      20         19         17         19
                           BBB                                                                                                         investment
                           BBB+                                                       20%
                                                                                               29                    29         28
                                                                                                                                          grade
                                                                                                          27
                           BBB                                                        0%
                                  0           200          400           600                Dec 01     Jun 02      Dec 02     Jun 03
                                                                                                AAA/AA*        A    BBB      Other^
                                  Committed Exposure ($m) 30 June 2003
                                                                               *CBA Equivalent Ratings ^Predominantly secured lending

                                                                                                                                              15
  Strategic initiative targets were achieved and
  the Banking cost to income ratio improved
         Strategic Initiatives FY03:
           Costs   Benefits   Net Cost   Annual
                                         Benefit
             $m      $m        $m         $m
Target      227      84        143        159               Revenue: $40m
Outcome 214          69        145        165               Costs: $125m


                                                   60
   Banking cost to income ratio:                                 6%
                                                   58

                                                   56     57.7
 10% improvement over two years                                              4%
                                                   54
                                                                      54.1
                                                   52
                                                                                  52.0
                                                   50

                                                   48
                                                        Jun-01     Jun-02     Jun-03

                                                                                         16
We have a successful track record on execution.
Transformation of service is the next phase


                                                   Service
                                                Transformation
                                          Wealth
                                        Management

                             Online Service

                Efficiency

Privatisation


                                                                 17
September 2003 Quarter: Performance

   Continued high levels of credit growth

   Deposit growth above expectations

   Strong investment returns

   Increased FUM

   Growth in insurance premium income




                                             18
Transformation




                 19
    Why service transformation is necessary


Environment       Customer need             Imperatives for the
                                                  Bank


   Demographic      High value creation      Service
    change                                      transformation
                     Through advice and
                      investment               Competitive
                                                superiority


   Monetary         Even better value
    cycle


                                                                 20
  There are three themes in our service
  transformation

                                „To excel in customer service‟


                                            via



                                    Engaged people                       Simple processes
Customer service
                                   who are empowered,      Supported
                                                                       that are fast, accurate
that is responsive,   Through
                                       motivated and          by
   convenient and                                                             and efficient
                                      skilled to deliver
         reliable



       Customers are saying: “Know me, give me what I want and do it reliably”




                                                                                             21
There are over 100 initiatives … grouped into 20
key workstreams
                                               „To   excel in customer service‟
                                                                  via

          Customer                                                                     Supported            Simple
                                          Through       Engaged people                    by
            service                                                                                         processes
Service/Sales   1. Segment and Advice           Performance   12. Performance culture       Support           13. Support function
Effectiveness      Alignment                    Culture           diagnostic, management                          redesign
                2. Advice Implementation                          systems and actions
                3. Service/Sales system                                                     Process/product   14. End to end process
                4. Divisional sales and                                                                           redesign
                   service improvements                                                                       15. Local site
                                                                                                                  improvement
IT Enablers     5. IT infrastructure                                                                          16. Product/system
                6. Single view                                                                                    rationalisation

Distribution    7. Distribution optimisation                                                IT Efficiency     17. IT efficiency
Efficiency      8. Branch use for                                                                             18. IT sourcing
                   IBS/PFS/RBS
                9. Branch redesign                                                          Purchasing        19. Purchasing
                                                                                                                  improvements
Product         10.Product bundling and                                                                       20. Property
                   pricing                                                                                        rationalisation
                11.New product/service
                   introductions




                                                                                                                                       22
Customers: Initiatives predominantly
drive revenue benefits
                 $460m Estimated benefits (pre tax) realised in 2006

 Examples                                                             Examples
 • Branch sales                                                       •IBS redesign
   effectiveness                                                      •Enhanced branch service
 • IBS service and sales                                              •Branch redesign
                                 Sales and
   model                                          Distribution
                                  Service
 • PFS service model                               efficiency
 • Adviser academy             effectiveness
 • Cross sell to CommSec


                                         Product




                           Examples
                           • RBS product review and rationalisation
                           • PFS structured campaign management
                           • Rollout of WRAP platform and adviser
                             workbench

                                                                                                 23
Customers: Initiatives predominantly
drive revenue benefits
   Initiative name        Initiative description                                                 Status      Size of prize

• Branch sales            • Reinvigoration of a world standard service and sales                  Pilot
  effectiveness             culture.
                          • Customer Service (CSO) roles redefined to increase
                            customer contact time by 50%.
                          • Increase Branch Manager time with customers and time
                            coaching staff.

• IBS service and         • Grow revenue by increasing cross sell in business banking,            Design
  sales models              growing market share in corporate banking and increasing
                            penetration in institutional banking.


• PFS service model       • Complete rollout of the relationship management team                  Rollout
                            (POD) structure.
                          • Improvement in productivity for relationship managers of
                            around 50%.


• IIS Adviser Academy     • Establish the Commonwealth Adviser Academy to train                   Design
                            financial planners.


• Cross sell to CommSec   • Offer over one million CommSec clients, with only a trading           Rollout
                            account, an integrated core banking and brokerage offering
                            at a competitive price.


                                                                                Estimated pre tax benefits realised in 2006
                                                                                       > $100m              $30m - $49m
                                                                                       $50m - $100m         $10m - $29m
                                                                                                                              24
Customers: Initiatives predominantly drive
revenue benefits
  Initiative name            Initiative description                                                  Status      Size of prize
 • Enhanced Branch          • Maximise efficiency and effectiveness in branch workflow by             Pilot
   Service, Branch            improving queue management practices, improving resource
   Redesign                   scheduling practices and introducing in branch self service.
                            • Improve branch environment for customers.

 • IBS redesign             • Sales people have dedicated client portfolios giving client             Rollout
                              one point of contact
                            • Increased revenue delivered by freeing up sales people to
                              spend more time with clients through simplified processes
                              and faster decision making
                            • Costs reduced through simplified processes and centralising
                              the handling of routine enquiries/transactions

• RBS product review         • Increased revenue generation via:                                      Design
  and rationalisation             – The launch and repositioning of cash products
                                  – Introduction of 18-24 year old graduate offering,
                                    partnership program and club communications
                                  – Review and rationalise product sets where appropriate

• PFS structured campaign    • Targeted sales campaigns based around investment                       Rollout
  management                   ideas tailored to specific customer groups with known
                               needs. Recent examples include Installment warrants,
                               Protected Portfolio Loans and 20 Year Fixed rate loans
                                                                                                                               *
 • IIS WRAP and Adviser      • Develop integrated platform for interaction with multiple              Design
   workbench                   adviser channels

                                                                                    Estimated pre tax benefits realised in 2006
                                                                                           > $100m              $30m - $49m
                                                                                           $50m - $100m         $10m - $29m
                                                                                                                  *$5m - $9m
                                                                                                                                   25
Customers: Transformation Outcomes

   Improved customer experience, including:
        More modern branches better suited to community needs
        Average queue time reduction of 35%
        Increased branch manager visibility
        Innovative financial solutions better suited to
         customer needs
        More informed view of the customer
        Greater customer access to financial planning services
         and advice


                                                                  26
People: Engagement improves the
customer experience

                Commonwealth Bank percentile ranking
    100                in Gallup database

     80


     60


     40


     20


      0
                 1999                      2001                      2002                     2003

          Source: Gallup Organization. Note: Gallup Workplace Survey was not commissioned by the Bank in 2000.



                                                                                                                 27
People: Transformation Outcomes


   A better experience for our people, derived from:
        Taking direction from people that serve our customers
        Enabling frontline people to solve customer problems
        Investing in the development and training
        Measuring performance on customer outcomes
        Recognising and rewarding people for superior service




                                                                 28
Processes: Initiatives predominantly drive
cost benefits

                              $440m Estimated benefits (pre tax) realised in 2006

  Examples                                                          Examples
  • E2E home loans (RBS)
  • Lean manufacturing in                                            • Support function
    retail operations (RBS)                                            redesign


                                   Process /           Support
                                    product
                                 simplification


    Examples                                      IT efficiency    Examples

     • Purchasing
                                                                   • IT demand management
       efficiency

                                      Purchasing
                                      & Property


                                                                                            29
     Process Simplification: Initiatives
     predominantly drive cost benefits
Initiative name       Initiative description                                   Status             Size of prize
 • Support function   • Redesign the support functions across the
                                                                                 Design
   redesign             Group by reducing duplication, complexity and
                        low value added worked. We are aiming to
                        reduce support function costs by 25%


 • IT efficiency      • Improved management of IT spend across the               Rollout
                        Group


 • Purchasing         • Review and optimise purchasing spend                      Rollout
   efficiency           (excluding IT) across the Group

 • Lean               • Reorganise our back office operations to                   Pilot
   manufacturing        provide simple processes that are fast,
   in retail            accurate and efficient through application of
   operations           lean manufacturing principles

 • End to End         • Implementation of a single end-to-end Home               Rollout
   home loans (RBS)     Loan process (covering all segments of the
                        value chain) that will be optimised for
                        efficiency and cost.
                                                                        Estimated pre tax benefits realised in 2006
                                                                              > $100m               $30m - $49m
                                                                              $50m - $100m          $10m - $29m
                                                                                                                      30
Process Improvement: Transformation
Outcomes
   Simpler, more effective processes resulting from:
        reduced number of IT systems
        reduced re-keying and paper handling
        streamlined approval processes


   Providing:
        improved responsiveness and faster cycle times
        increased accuracy and reduced information requests
        more time for frontline staff to serve customers

                                                               31
      Financial impact and outcomes

                      Subject to current market conditions continuing

Over the next three years we               Over the next three years this will result in:
 will:
                                              Cash EPS growth exceeding 10% CAGR

   Redirect the normal project
    spend of $600m
                                              4-6% CAGR productivity improvements


   Spend an additional $620m
                                              Profitable market share growth across
                                               major product lines

   Invest a further $260m in our
    branch network
                                              Increases in dividends per share each year

                                                                                       32
Investments & Benefits


                                                                         Total
     Investment Analysis ($m)                 2004     2005     2006   2004-06

     Estimated Investment Spend
      Initiatives                              570      425     225      1,220

       Branch refresh                           90       85       85      260

     Total Investment Spend (pre tax)          660      510     310      1,480


                                    (1)
     Estimated Benefits (pre tax)              200      620     900



  (1) Estimated benefits are recurring and continue to grow beyond 2006. They are
      comprised of 50% cost savings and 50% revenue improvement.




                                                                                    33
   Investment and Accounting Treatment

• $200m of software expenditure over the three years will be capitalised
  ($90m in 2004) and $260m over three years will be capitalised for branch
  refurbishment ($90m in 2004)


• In addition, $215m of the $248m capitalised software from previous years
  will be expensed in 2004


• In 2004 we are required to provide for certain transformation costs in
  relation to future periods. This balance will be $210m at June 2004
  reducing to $77m at June 2005


• All other program costs which total $810m ($480m in 2004) will be
  expensed as incurred

                                                                             34
  Estimated Financial Impact of
  Transformation Costs


Adjusted Cash EPS
• The following transformation costs will be added back to the 2004 cash earnings
  when considering the dividend payment:
                                                          $m
    Total investment spend for 2004                       660
    Provision for future years (at June 2004)             210
    Capitalised software and branch refurbishment         (180)
    Normal annual spend                                   (200)
    Expensing of previously capitalised software          215
                               total before tax           705
                               total after tax            500


                                                                                    35
Impact on Annual Profit (excluding all
benefits and amortisation)
($m)


Total Spend                                             2004    2005    2006    Total

          200                   Software capitalised       90      72      38     200
          260                   Branch refurbishment       90      85      85     260
        1,020           210     Provision                   0     133      77     210
        1,480           810     Expensed                  480     220     110     810
Refer slide 33
                                Total spend               660     510     310    1,480


Impact on Profit (Refer Slide 35)                       2004    2005    2006

                 Provision for future years               210    -133     -77
                 Capitalised amounts                     -180    -157    -123
                 Normal spend                            -200    -200    -200
                 Exp. previously capitalised software     215       -       -
                 Before tax                               705      20     -90
                 After tax                                500      14     -63




                                                                                         36
Investment spend

               Themes                            FY04   FY05   FY06
   Customers



               Sales and service effectiveness
               Distribution efficiency
               Product offering
                                                                        $0–49m
               IT enablers
                                                                        $50–99m
               Product and process                                      $100m+
               simplification
   Processes




               Support

               Purchasing/property
               IT efficiency
  People




               Performance culture

                Total ($m)                       570    425    225    $1,220m

               Branch refurbishment               90    85      85     $260m




                                                                                  37
Benefit analysis


               Themes                            FY04   FY05   FY06
               Sales and service effectiveness
   Customers




               Distribution efficiency                                Revenue
                                                                             Cost
                                                                             saving
               Product offering

               IT enablers
               Product and process                                         $0-49m
               simplification
   Processes




                                                                           $50–99m
               Support redesign                                            $100m+
               Purchasing/property

               IT efficiency
   People




               Performance culture

                                                                      $900m benefit
               Total ($m)                         200   620     900   realised in FY06




                                                                                         38
Productivity improvements of 4-6% pa CAGR
over the next three years
                                                         Life Cost* to
                             Funds                         Average
         Banking          Management                        Inforce
          Cost to           Cost* to                      Premiums
         Income*          Average FUM                      57%
                            0.85%

          52%
                                    Under
                 Under                                           Under
                                    0.75%
                 48%                                             52%




         2003    2006      2003    2006                   2003    2006
        Actual Estimate   Actual Estimate                Actual Estimate




                                            * Includes commissions




                                                                           39
   Dividends & Capital

• Subject to current trading conditions being maintained, we would expect the
  2004 dividend per share growth to be in line with earnings per share growth,
  after adding back the transformation costs



• We will continue to issue shares to satisfy the DRP which, subject to
  approvals, should enable a structured share buyback to go ahead



• We expect to remain within our target capital ratios and maintain our current
  ratings




                                                                             40
     We have a workplan for implementation
     over the next three years
                                                                                                       „Scale it up‟            „Make it stick‟
                                            „Clear the way‟                „Get on with it‟                                       12 months       Jun 06
                                                                                                        12 months      Jun 05
                                      Today     4 months      Jan 04             6 months     Jun 04



                     Service/sales
                     effectiveness
Customer services




                     IT enablers


                     Distribution
                     efficiency



                     Product
Engaged people




                     Performance
                     culture


                     Symbolic
                     actions
                     Support
Process simplicity




                     Process/
                     product
                     simplification



                     IT
                                         M
                     efficiency
                     Purchasing
                     / property          m
                                                                   Group                      Coordinated                       Division

                                                                                                                                                           41
Customer service culture, the next
transformation


              Customer Service

                  through

              Engaged People

                supported by

              Simple Processes



                                     42
Summary

    Operating Environment:
         Economy resilient
         Home loan growth continues
         Favourable outlook for Funds Management and Life Insurance


    Performance:
         9% underlying profit growth
         Strong credit quality and capital position
         Good September 2003 quarter


    Which new Bank:
         Launched September 2003
         Significant cultural transformation
         Size of the prize is large

                                                                       43
Roadshow Presentation
         David Murray
       Chief Executive Officer

       Michael Cameron
        Chief Financial Officer

  Commonwealth Bank of Australia
        November 2003

                                   44
Supplementary Pack


Full Year Results
Year Ended 30/06/03




www.commbank.com.au
Segment Results: Banking
     Banking result reflects the strong home
     loan market
    $m                        16% increase from underlying business
2 ,6 0 0


2 ,5 0 0                   Interest
                           Income
                                                                                          2,401
                             316
2 ,4 0 0                                         Expenses
                                                   (85)                  Taxation
                                        Other Bank                        (186)
2 ,3 0 0                                                                                                         2,249
                                         Income
                                           145
2 ,2 0 0                                                           BDD                              One off
                                                                   144                              expense
             2,067                                                                                   (152)
2 ,1 0 0


2 ,0 0 0


1 ,9 0 0
        Underlying
          Cas h Pr of it   Inter es t    Other Bank   Ex pens es   BDD    Tax ation    Underlying One of f Cash Pr of it
                                                                                        Under ly ing           Cas h Profit
           Dec 2001        Inc ome         Inc ome                                        Dec 02     ex pens e   Dec 02
       Profit Jun-02                                                                  Profit Jun-03             Jun-03

                                                                                                                          47
Banking income has grown strongly

    $m
  8,000                Net
                     Interest
                     Income                                           7,723
                       316                         Trading
                                                   Income    Other*
  7,500                         Lending                13     (83)
          7,262                  Fees
                                   34

                                        Commission &
  7,000
                                         Other Fees
                                             181



  6,500
          Jun-02                                                      Jun-03
          *Sale of strategic asset in 2002
                                                                               48
9% growth in lending assets
    200
                                                                     175
                            161
                                                          13
    150            12
                                                                      49
                             51
    100                                                   13
                   12


     50                                                               100
                             86


      0
                         Jun 2002                                  Jun 2003


Lending Assets**        Housing       Personal        Business & Corporate           Bank Acceptances


     ** Excludes securitised housing loan balances $6.5b (Jun 03), $7.0b (Jun 02).

                                                                                                        49
      Strong banking product market shares

                                                         Banking Market Shares
                                                                                                                       June
                                                                                                                    2003   2002
           Merchant Acquiring1                                                                                      33.9%5 34.5%
                      Deposits2                                                                                     24.8%6 24.7%

                  Credit Cards                                                                                      22.9%6    22.8%

          Transaction Services3                                                                                     22.7%7 21.8%7

                  Home Loans                                                                                        19.5%8 19.9%8

             Business Lending                                                                                       14.3%9    15.2%

         New Zealand Lending                                                                                        20.4%5 19.6%

         New Zealand Deposits                                                                                       16.3%5    15.5%

                Asset Finance4                                                                                      15.1%     16.5%


Notes:
(1) - Includes both Credit and Debit Turnover       0%      10%          20%               30%                40%
(2) - Retail Only
(3) - Mid-Corporates (turnover $20m-100m)
(4) - Excludes consumer and commercial finance
(5) - April Data
(6) - May Data
(7) - February Data
(8) - March Data
(9) - Eliminated effect of changes in data series                 Source: RBA, APRA, East and Partners, AELA, Reserve Bank of NZ


                                                                                                                                      50
  Home lending growth profile*

                                                                   Loan Balances

                                                                      8%
                                                                                     Owner occupied

    Source:                                                                          Investment Home
                                                                   31%         61%
Balance Growth                                                                       Loan
                           Growth represented by:                                    Viridian/
                                                                                     Access Advantage
                           ($bn)              2003        2002
  35%        65%           Loans
                           Funded              36.9        34.2   Product Balances
                           Reductions          24.9        23.4
                                                                                     Standard Variable
                           Net                                       20%
                           Growth               12.0      10.8                       Fixed Rate
   Proprietary                                                                 47%
                                                                   21%               Honeymoon
   Third Party
                                                                         12%         Discount Variable

* Data relates to the Bank‟s Australian home lending business

                                                                                                    51
Continuing sound asset quality

                                          30 June 2003 30 June 2002

Charge for Bad & Doubtful Debts                 $305m        $449m

Charge for Bad & Doubtful Debts to RWA*         0.21%        0.32%
Gross Impaired Assets (net of interest
                                                $639m        $884m
reserved)
Specific Provisions                             $205m        $270m

General Provision                             $1,325m      $1,356m

General Provision to RWA                        0.90%        0.96%




*Risk Weighted Assets


                                                                      52
             The Bank remains well provisioned
            2,100                                                                                 300

            1,800                                                                                 250
            1,500
                                                                                                  200
$millions




            1,200
                                                                                                  150 %
             900
                                                                                                  100
             600

             300                                                                                  50

               0                                                                                  0
                    Jun     Jun       Jun       Jun      Jun      Jun       Jun       Jun   Jun
                    95      96        97        98       99       00*       01*       02    03

                                  General Provision
                                  Specific Provision
                                  Total Provisions/Gross Impaired Assets (axis on right)
                     * Includes Colonial
                                                                                                          53
Segment Results: Funds Management
  Lower Funds Management profit

$m                  37% decrease from underlying business
400
          360            (109)
350



300

                                          (46)
250                                                           29         228             (29)
                                                        (6)                                                9              208
200



150



100
      U n d e rlyin g     Net          O p e ra tin g   OEI   Ta x   U n d e rlyin g Firs t Tim e     S 'h o ld e r   C a s h P ro fit
         P ro fit     O p e ra tin g   E xp e n s e                     P ro fit     E xp e n s e s    In ve s t         Ju n -0 3
         Jun-02        In co m e                                        Jun-03                        R e tu rn s



                                                                                                                                         55
                                      Underlying expenses increased by $46m

                                       %                                                    $bn
                                       1                                                    110
Underlying Expenses/Average FUM (%)




                                                                              85 bps
                                               81 bps
                                      0.8                                                   100




                                                                                                  Average FUM ($bn)
                                                           73 bps
                                      0.6                                                   90


                                      0.4                                                   80


                                      0.2                                                   70


                                       0                                                    60
                                              Jun-01       Jun-02            Jun-03
                                            Average FUM   Underlying Expenses/Average FUM


                                                                                                                      56
   Movement in funds under management
                   Underlying movement of
                            $6bn

   105                                                                 One off net
         103        (4)
                                                                    reduction of $3bn
   103

   101
                               (1)                              2          (4)
    99                                   (1)
                                                    97
    97
                                                                                       (1)
$bn 95                                                                                           94

    93

    91

    89

    87

    85
         Jun-02   Net Flows Investment   Other   Underlying   Gandel    Winterthur   CFS UK     Jun-03
          FUM                 returns                                                 Private    FUM
                                                                                     Business

                                                                                                         57
Net flows by product category

$bn
 7                                        Net Funds Flow

 5

 3

 1

-1

-3

-5

-7
      Retail - On       Retail -      FirstChoice Wholesale - Wholesale -   CMTs*
        Sale            Legacy                    Australia &    UK
                                                   Non-UK^
 *Cash Management Trusts
 ^ Non-UK includes New Zealand and Asia

                                                                                    58
  Strong market share position


                            Funds Management Market Shares

                                                                               June
                                                                            2003 2002

             Managed Investments   1                                        14.8% 15.5%


          New Zealand Managed
                                                                            14.0%3 13.0%
                   Investments

       Property Managed Funds     2                                           6.3%      5.2%


                                   0%          10%               20%


(1) Retail Only
(2) Internally Calculated
(3) March Data                                         Source: Plan for Life, Fund Source Research


                                                                                                     59
FirstChoice has made a strong contribution

       Funds under Administration of $3.2bn at 30 June 2003

   Source                                            Destination
  4%
                        FY03 Growth
                        Represented By:

                        Inflows    $3.2bn
 39%      57%                                        45%      55%
                        Outflows   $0.6bn

                        Net        $2.6bn


  IFAs
                                                      CFS
  Branch Network
  Other                                              Third Party



                                                                    60
Segment Results: Life Insurance
  Steady operating margins and improving
  investment returns

$m
                                                                               64           122
120                41% increase from underlying business

100
                                     6         (30)
                         41
 80

                                                                58
 60
           41
 40


 20


  0
       Underly ing      A s ia      NZ       A us tralia    Underly ing     S 'holder   Cas h P rofit
      P rofit Jun-02                                       P rofit Jun-03    Inves t      Jun-03
                                                                            Returns



                                                                                                        62
                          Operating expense to average inforce
                          premiums is improving

                                %                                                $m
                               80                                                900
Average Inforce Premiums (%)




                                                                                       Average Inforce Premiums ($m)
                                       68.8
                               70                                                800
Operating Expenses/




                               60                                   57.3         700



                               50                                                600



                               40                                                500
                                      Jun-02                       Jun-03
                                    Average Inforce Premiums
                                    Operating Expense/Average Inforce Premiums

                                                                                                                       63
9% growth in annual premiums

 $m
                           187
1000




900                                                            880

                                     (108)       (9)
            810
800




700
       Opening Balance   Sales/New   Lapses     Other     Closing Balance
           Jun-02        Business             Movements        Jun-03


                                                                            64
  Market shares growing

                                          Life Insurance Market Shares
                                                                                                            June
                                                                                                         2003 2002
              New Zealand1                                                                               28.3%2 26.2%


                      Australia                                                                         15.0%2        14.9%


                  Hong Kong                                                                               2.5%3       2.1%
                                                                                                                              4




                                       0%          10%    20%                30%                  40%



(1) In-force Business
(2) March Data
(3) Single premium new business (Jan - Mar 2003)
(4) Single premium new business (Jan - Jul 2002)
                                                                Source: ISI Statistics, Plan for Life, HK Insurance Association


                                                                                                                                  65
     Australian Life Insurance business



    Distribution by Channel^                                      Product Sales

                                         FY03 Growth
                                         Represented by:

                                         Sales/New
            41%            59%           Business      $128m      48%        41%

                                         Lapses            $80m

                                         Net               $48m         11%



         Third Party                                               Lump Sum
         Network & Direct*                                         Disability Income
    * Network - Internal Bank Channels
                                                                   Group Risk &
                                                                   MasterFund
     Direct - Telemarketing & Phone


^ Excludes Group Risk and Masterfunds

                                                                                       66
Investment Earnings
Investment earnings

                       30 Jun 03   30 Jun 02   Change

                             $m          $m       $m

Funds Management              9           8         1

Life Insurance

- Australia                  35          18        17

- New Zealand                15           3        12

- Asia                       14           4        10

Net Profit After Tax         73          33        40




                                                        68
 Investment Mandate Structure

The Bank has $3bn of shareholders funds across its insurance and funds
management business, which is invested in:


                         Australia    New Zealand   Asia          Total

Local Equities                  27%            1%           17%        22%
International Equities           7%           12%            0%         6%
Property                        15%            3%            0%        10%
Other                            0%           10%           29%         7%
Sub Total                       49%           26%           46%        45%
Fixed Interest                  11%           19%           54%        20%
Cash                            40%           55%            0%        35%
Sub Total                       51%           74%           54%        55%
Total                          100%          100%          100%       100%




                                                                             69
Wealth Management Valuations
  Wealth management valuations
  $m             Increase in appraisal value since acquisition of 27%
9,000
                                     625       (48)     (222)             8,546
                                                                  188
8,500

                            818
8,000


7,500             449


7,000   6,736


6,500


6,000
        Jun-00   D ec-00   Jun-01   D ec-01   Jun-02   D ec-02   Jun-03   Jun-03

                                                                                   71
  Wealth management valuations -
  movement analysis
             Net appraisal value reduction of            Net appraisal value increase of
                         $222m                                       $188m
 $m
9000
        8,580                                                                             8,546
                                                 8,358

                    Profit                                                                                    Total
                     129           Reduction                Profit          Increase
8000                                                         201             in Value
                                    in Value
                                      (426)                                     181                  Profit       330

7000
                                                                                                     Capital (119)
                               Other                                   Other
                              Capital                                 Capital
                             Movements                               Movements
                                                                                                     Value       (245)
                                75                                     (194)
6000
                                                                                                     Net          (34)


5000
       Directors‟                              Directors‟                               Directors‟
       Valuation                               Valuation                                Valuation
        Jun-02                                  Dec-02                                   Jun-03


                                                                                                                         72
Capital
      Capital ratios remain strong

                                                                             Credit Ratings
                                                                         unchanged or improved
                                                                              since 1996...
11%
                                                                          Short Term Long Term
         9.31%          9.80%         9.81%         9.73%
10%

9%                                                               Fitch       F1+       AA
                                                                                     (Stable)
8%

7%
                                                               Moody‟s       P1        Aa3
6%      6.75%          6.78%          7.06%         6.96%                            (Stable)

5%
                                                                  S&P        A1+       AA-
4%
                                                                                     (Stable)
       Dec 2001        Jun2002         Dec 2002     Jun2003
      Tier 1 Capital      Tier 2 Capital        Target Range




                                                                                                 74
Generation and use of capital

                                                     Tier 1     Currency &
                                                     Issue        Other
                   15bps of Capital Generated       (Oct-02)    Movements
9.0%

                 1.76        (1.34)
8.5%


8.0%


7.5%
                                         (0.27)
                                                      0.13        (0.10)
                                                                              6.96
7.0%
       6.78

6.5%


6.0%
       Tier 1    Cash       Dividend    Growth in   ASB Prefs   Currenc y &   Tier 1
       Jun 02   earnings                  RW A                    Other       Jun 03
                                                                Movements

                                                                                       75
Summary
Summary

   Cash profit up 3% with underlying Group profit
    growth of 9%

   2003 strategic initiatives delivered

   Underlying bank cost/income improvement of 4%

   Further improvement in credit quality

   Continued strengthening of our Tier 1 capital position




                                                             77
Transformation
We are serious about changing to be more
customer focused


    Our plans are comprehensive, well thought through and
     already underway



    We have achieved encouraging results to date



    We are confident that we will meet our financial
     expectations




                                                             79
    Plans are in place to complete our largest
    transformation

                   Around $900 million of improvement initiatives (~50% customer, 50%
Opportunities       simplicity ~50% cost, 50% revenue)
identified         100+ initiatives within divisions and cross-divisional




                   Significant recurring value to be created through behavioural change
Profile of         Around one-third of value from new initiatives, one-third in planning,
opportunities       one-third already in progress
                   Around 50% of all initiatives have a payback inside 2 years



                   Group-wide initiatives concentrated early to „clear the way‟
Staging and
                   Immediate start for divisional initiatives
sequencing
                   Sequenced to align capacity with resourcing requirements




                                                                                             80
Our vision




       „To excel in customer service‟




                                        81
Customers will receive ‘what they need,
when they need it’...

                                           „To excel in customer service‟


                                                          via



        Customer service                        Engaged people                            Simple processes
        that is responsive,                    who are empowered,           Supported
                                 Through                                                that are fast, accurate
           convenient and                           motivated and              by
                                                                                               and efficient
                 reliable                          skilled to deliver


 Focus of customer work streams
    Provide the best service and level of advice to each customer segment, including training more than 200
     additional financial planners
    Proactively provide financial solutions based on the needs of customers, especially around important life
     events eg buying a home or retirement
    More than 10% of branches will be modernised each year to better meet the needs of local communities
    Average queue times reduced by 35%
    Improved client information available at the frontline, modelled on the successful single system currently
     used for premium clients
    Innovative financial solutions, including upgrades to NetBank


                                                                                                                  82
 Key value drivers for customer service
 initiatives have been identified
                       •   Sales force effectiveness
Service and Sales      •   Retention and run off
  Effectiveness        •   Cross sell / penetration
                       •   Credit approvals

                       • IT demand management
   IT Enablers         • IT system rationalisation


                       • Network optimisation
  Distribution         • Call centre efficiency
   Efficiency          • Channel mix improvements


                       • Product rationalisation
    Product            • Pricing and bundling
                       • New products


                                                       83
  ASB service and sales model - a proven
  success story

Success has been widely recognised...
   •   5th consecutive year rated NZ‟s No.1 Major Bank in terms of
       customer satisfaction1
   •   3rd consecutive year rated No.1 Business Bank2
   •   Best Bank in NZ3
   •   Best Service Provider for any NZ company4
   •   „Best in Class Status‟ Call Centre5


...with service outcomes translating to the bottom line
   •   Operating profit has increased by more than 20% in each of the
       past four years
   •   Key market shares have increased every year over past decade
                                       1, 2
                                          University of Auckland survey of residential customers and business banking customers, 2002;
                                       3 The Banker Country Awards, 2002 and 2003; 4 CGE&Y‟s Customer Service Survey, 2000;
                                       5 TARPnz, 2001 and 2002



                                                                                                                                  84
Application of ASB service and sales system in
Commonwealth Bank
                                         Application in Commonwealth Bank

                                                 Examples of Actions
  Service & Sales     • Refresh existing relevant processes via training and continuous
     Process            coaching and roll out across the Group
                      • Establish and roll-out common non-negotiable minimum standards of
                        behaviour

   Inter-divisional   • Recent pilot in the retail bank resulted in 82% increase in average
  Referral Process      number of referrals per employee
                      • Planned Group-wide roll-out
  Service & Sales     • Weekly ExCo service & sales meetings
   Reporting &           –Structured focus on behaviour
                         –Drives continuous improvement
     Meetings
                         –Align meeting processes across the Group

    Rewards &         • Introduce CEO Awards for excellent customer service
    Recognition       • Embed a culture of day-to-day recognition behaviour within teams



  Metrics & „formal   • Implement metrics, targets, KPIs and incentive programs that are
    incentives‟         aligned to customer centricity and customer-oriented behaviours



                                                                                              85
Retail branch sales effectiveness is being
trialled in 12 branches
   Focus on Customer Service Officers (CSOs);
    - redefine role to focus on identifying and satisfying customer needs
    - KPIs, targets & incentives clearly aligned to customer outcomes
    - emphasis on sales skills, role plays & coaching
    - Initial pilot completed - early results encouraging

   Branch Manager Role;
    - from back-office to front-line
    - move focus from administration to front-line staff coach
    - greater customer “visibility”
    - positive sales results and great feedback from staff & customers

   Also - Outbound Call Centre, Leads Generation & Tracking



                                                                            86
 Initial results of the pilot are positive

Referrals to specialists per FTE                  1 3 6
                                                                   1 3 2
                                                                                   1 3 7               1 3 9            1 3 7
                                    1 2 9
                      1 1 7
        1 1 0
                                                                                                                                   Baseline: 100
                              8 0           8 0            8 1               8 0            8 0                 7 8                7 6
                7 1




       Week 1         Week 2        Week 3        Week 4          Week 5           Week 6             Week 7            Week 8
                                            • Individualised sales coaching
                                            • Rigorous performance mgmt.
                                            • Time freed-up for service/sales
                                                                                                       1 9 6            2 0 0
    Cross-sell ratio                                               1 8 0
                                                                                   1 8 8
                                                  1 6 8
                                    1 5 2
                      1 3 2
        1 1 6                                                                                                  1 1 6            1 2 0    Baseline:
                                                          1 0 8            1 0 8           1 0 8
                                            9 6                                                                                          100
                8 4
                              6 8




       Week 1         Week 2        Week 3        Week 4          Week 5           Week 6             Week 7            Week 8
                                                           Breakaway sites                        Control sites (equivalent FTE)

                                                                                                                                                     87
Our customer service will be delivered
through engaged people

                                         „To excel in customer service‟


                                                        via



         Customer service                       Engaged people                          Simple processes
                                               who are empowered,         Supported
         that is responsive,   Through                                                that are fast, accurate
                                                    motivated and            by
            convenient and                                                                   and efficient
                  reliable                         skilled to deliver



  Focus of people work stream
     Implement a cultural change program - networked, performance driven
         Take direction from the people who serve our customers eg CEO emailbox and
          frontline representation on workstream reference groups
         Enable frontline people to solve customer problems through increased delegations
          and provision of decisioning tools
         Double the investment in training and development eg Adviser Academy
         Measure people on customer outcomes
         Recognise and reward people for superior service eg CEO Awards


                                                                                                                88
Level of engagement has a tangible impact on
customer service and business performance
                                                                                           Average Business Performance
        Staff Engagement Score1            Average Service Score2
                                                                                                   Against Plan




   Top 15%      > 4.23                            90.3%                                                      107%

                                                                      8.8 %                                                       48.6%
                                                                      increase                                                    increase


  Bottom 15%   < 3.72                           83%                                                     72%




      In addition the top performing areas receive 50% less complaints and 40% more compliments




                                    1CBA  business unit results, 2002, score out of 5
                                    2 An aggregate measure which reflects mystery shopping, application and other processing accuracy, ATM
                                    availability, product knowledge, queue time and telling accuracy


                                                                                                                                             89
We are framing our cultural change within
the context of our service aims

                            Unlocking our potential
    With our customers          With our people         With our operations

                               Showing the way
                               through energising
                                   leadership
                                                       Operational
                                                       simplicity and
     Customer focus            New deal for our
                                                       relentless
     driven by a sales         people through
                                                       execution driven
     and service               performance
                                                       by a efficiency
     culture                   management and
                                                       and sustainability
                               people develop-
                                                       culture
                               ment



           Working together with a common purpose


                                                                                 90
     Our people will be supported by processes
     that are ‘simply better’
                                            „To excel in customer service‟


                                                           via



          Customer service                         Engaged people
                                                                                           Simple processes
          that is responsive,                     who are empowered,         Supported
                                  Through                                                that are fast, accurate
             convenient and                            motivated and            by
                                                                                                and efficient
                   reliable                           skilled to deliver


Focus of simplification work streams
   Provide faster service through improved cycle times eg aim to fund approved personal loans in less
    than 24 hours
   More frontline time spent serving customers through the removal and automation of procedures
   Increased accuracy and reduced information requests through pre-populated forms and single data entry
   Simpler processes which will improve response times eg aim to retrieve transaction information for
    business clients within 2 hours
   Reduce the number of IT systems




                                                                                                                   91
  Key value drivers for process simplification
  have been identified

                        •   Activity Value Analysis
Support function
                        •   Purchasing effectiveness & demand reduction
redesign including
                        •   Marketing spend effectiveness
purchasing & property
                        •   Collections effectiveness
                        •   Property usage effectiveness


                        •   Process improvement & consolidation with divisions
                        •   Standardisation & rationalisation across divisions
 Process / product
                        •   Consolidation across divisions
                        •   Process/system rationalisation



                        •   IT maintenance
                        •   IT simplification & standardisation
   IT Efficiency        •   IT supple management
                        •   IT overhead effectiveness


                                                                            92
End to End Home Loan supported by service initiatives
are already underway and will be extended to other
product lines

    Origination Platform (CMP) +
   New                                        Single, modern sales
                                                     platform
                                                                            June 2003
      Workflow Technologies

   (network vanilla loans from application
    “Straight-through” processing
                                              Eliminate data re-keying
                                                  + status tracking
                                                                            July 2003

     to document production)
                                               Single, modern sales         Oct 2003
   Rollout CMP to Mobile Lenders                    platform
                                               Brokers able to submit
   Online Application Portal for Brokers     applications electronically   Nov 2003
                                                 Resolve customer
   New Branch Servicing Model                  enquiries on-the-spot       Nov 2003

   Common Back-Office Processes                                            Jun 2004
                                              85% of loans conditionally
   Automated Credit Decisioning               approved “on-the-spot”       Jun 2004
                                                      (by Jun-06)
   Completion of Programme                                                 Dec 2004


• Replicate process for personal loans and credit cards
                                                                                   step completed

                                                                                               93
Lean Manufacturing pilots in retail will be
expanded across the Bank

   Improved work flows
   Standardised processes
   Removal of obstacles and redundant activity
Operations Processing (OPC) Example

 Baseline establishment


 Establish the optimal „flow rate‟ to balance processing


 Define optimal process flows


 Development of lean manufacturing prototype


 Demonstrate potential impact via pilot

 Determine sustainable model

 Roll out and implement lean manufacturing principles across OPCs
                                                            = step completed
                                                                           94
We are drawing on lessons learnt from previous
experience and are applying best practice
principles to execute the transformation
  1.   Full-time teams with a tight scope and clear deliverables

  2.   Relentless focus by the entire top team
         •   ExCo KRAs aligned to program delivery
         •   ExCo play a sponsorship role on many of the initiatives

  3.   High involvement and engagement
         •   Idea generation from all staff
         •   Participation in surveys and focus groups to support the performance culture work
         •   KPIs aligned to service model

  4.   Staged program and project governance through divisional and group program offices
         •   Stage-gate investment process
         •   Regular review of initiative portfolio
         •   Master planning and prioritisation through staging of initiatives

  5.   Consistent, simple, communication - internally and externally

  6.   Sustained, intense program of cultural change - unblocking mindsets that inhibit breakthrough
       performance


                                                                                                       95
A governance structure has been established to
minimise execution risk
                                     CEO
                                 David Murray

                                    Group
                                    ExCo


 For each       Divisional
                                                                  Group
  division        ExCo                                           Strategic
                                                                 Delivery
                                  Divisional
                                  program       Co-ordinated
                                  office        workstreams

        Divisional initiatives                  Groupwide
                                                workstreams
              Sponsor
              from line                                Sponsor
                                                     from ExCo
               Leader
                                                      Leader

                Team
                                                       Team


                                                                             96

								
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