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David Murray Half Year Results - December 2000 commbank.au

David Murray Half Year Results - December 2000 www.commbank.com.au. Disclaimer.

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David Murray Half Year Results - December 2000 commbank.au

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  1. David MurrayHalf Year Results - December 2000www.commbank.com.au

  2. Disclaimer The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation, 13 February 2001. 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. www.commbank.com.au

  3. 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.” www.commbank.com.au

  4. EQUITY INDICES Jan 3 2000=100 110 Australia 100 90 United States 80 Far East (ex Japan) 70 60 Jan 00 Mar-00 Jun 00 Aug 00 Nov 00 Feb 01 The Setting Using Morgan Stanley Capital International Index (MSCI). Rebased. Local currency terms. www.commbank.com.au

  5. Agenda 1. Progress on Strategy 2. Integration Progress Report 3. The Operating Environment

  6. Best value service through innovation & on-line leadership Best Team Attract more customers & more revenue per customer Develop offshore opportunities Global best-practice costs Group Strategy WHY? Strategic Vision Financial Goal Business Goals Top Quartile TSR Growth with low inflation To be the best brand in helping customers manage and build wealth Major technology shift Pace of change Limited longer term domestic scope Margin squeeze www.commbank.com.au

  7. Attract More Customers & More Revenue per Customer • Approximately 10 million personal customers • Growth in customer numbers and/or revenue across all customer segments • New sales management system implemented • Service measurement system built www.commbank.com.au

  8. Innovation and On-Line Leadership Customers No. (at 31 Dec) Growth* (%) Transactions^ Growth (No.) Growth (%) Measure Retail Financial Services NetBank 535,689 67.5 24.2M 72.9 HomePath** 78,488 105.4 1,426 274.8 MobileBank 14,684 110.7 100,822 68.3 ComSec Online 175,100 13.0 (366,000) (29.3) Business Services Diammond/eCommCorporate 8,236 13.4 656,064 10.9 Quickline 40,992 14.6 7.1M 19.1 NZ Through ASB Bank (NZ) 85,944 48.7 1.6M 41.6 Electronic : Over the Counter Ratio 84:16 (Dec 00) 81:19 (Jun 00) * From 30 June to 31 Dec 2000 ** Registered users ^Growth in transaction numbers for half year ended 30 June v. 31 December 2000 www.commbank.com.au

  9. Best Team • Leadership forums conducted for over 6,000 staff • Retention of key skills and people from Colonial • 20% of employees, mostly at management level, on individual contracts • Increased performance component for key sales and service staff • Performance based staff share plans extended www.commbank.com.au

  10. Develop Offshore Opportunities Last 6 months Target/Goal Acquisition of remaining 25% of ASB Group Integration of Sovereign with Colonial Life well progressed Develop existing businesses NZ Sale of Colonial Finance (UK) Sale of Colonial Life (UK) Entry into UK mortgage market Integration of Stewart Ivory & Colonial First State Funds management: Pursue growth in retail and wholesale funds under management UK mortgage market: Build market share Europe Reviewed life insurance businesses China: commenced life insurance business Develop life insurance businesses Grow funds management operations in Singapore & Hong Kong Weight geographical mix toward North Asia Asia www.commbank.com.au

  11. Global Best Practice Costs • Colonial integration on track • Focus on technology driven productivity • Leverage the increased scale from integration www.commbank.com.au

  12. Integration Progress Report

  13. Overall Targets • Expect majority of cost synergies to be achieved by year two whilst revenue synergies will progressively be realised over the next few years • Funding benefits from anticipated improved ratings and capital management • Maintain & improve service levels • Maintain the momentum of Colonial First State Investments • Continue strong relationships with independent distributors www.commbank.com.au

  14. Retail banking operations Network distribution model implemented Systems build complete Systems User Acceptance Testing commenced Transaction bridge operational Colonial non-branch ATM conversion program complete Launceston call centre site build (stage 1) complete Branch amalgamation complete (SA/WA) Detailed eastern seaboard branch amalgamation program now being executed Colonial customer retention on track Other All Centre functions and Institutional Banking integrated ASB product & systems changes complete Completion Oct 00 Dec 00 Jan 01 Jan 01 Jan 01 Jan 01 Feb 01 Feb 01 Feb 01 Feb 01 Outcomes to Date Forecast Dec Qtr Dec Qtr Mar Qtr Mar Qtr Mar Qtr Mar Qtr Mar Qtr Mar Qtr Ongoing Jun Qtr Jun Qtr www.commbank.com.au

  15. Conversion Management System operational Launceston call centre operational Retail bank systems integrated Back office processing integrated Outsourcing contracts rationalised Branch amalgamation for eastern seaboard complete Systems decommissioning complete Stage 1 property rationalisation complete Service levels met & improved Planned Outcomes for 2001 Jun Qtr Jun Qtr Sept Qtr Sept Qtr Dec Qtr Dec Qtr Dec Qtr Dec Qtr Ongoing www.commbank.com.au

  16. The Operating Environment

  17. US Financial Snapshot US Equities Jan 3 2000 = 100 110 100 90 80 70 60 Jan-00 Mar-00 Jun-00 Aug-00 Feb-01 Nov-00 5 Year US Corporate (Generic) Curve to Spread over Libor NB: 100 basis points = 1% Using Morgan Stanley Capital International Index (MSCI). Rebased. Local currency terms www.commbank.com.au

  18. US Growth & Trade % pa % of GDP 6 6 GDP growth (lhs) 3 3 Consensus (f) 0 0 Current account(rhs) -3 -3 -6 -6 Sep-87 Sep-90 Sep-93 Sep-96 Sep-99 Consensus www.commbank.com.au

  19. Asia Hong Kong Korea Singapore China Indonesia Malaysia Philippines Thailand Japan Source: IMF www.commbank.com.au

  20. Australia - Credit Cycle and Asset Quality www.commbank.com.au

  21. Sector Growth Source: Salomon Smith Barney Estimates, APRA, Commonwealth Bank Source: ABS, Commonwealth Bank Source: Salomon Smith Barney Estimates, ASSIRT, Commonwealth Bank Source: Plan for Life, Commonwealth Bank www.commbank.com.au

  22. Areas of Strategic Focus • Rapid completion of Colonial integration • Emphasis on domestic business growth • Improvement in service levels • Technology driven productivity gains www.commbank.com.au

  23. David MurrayHalf Year Results - December 2000www.commbank.com.au

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