View
215
Download
0
Category
Tags:
Preview:
Citation preview
David MurrayDavid MurrayHalf Year Results - December 2000Half Year Results - December 2000
www.commbank.com.auwww.commbank.com.au
David MurrayDavid MurrayHalf Year Results - December 2000Half Year Results - December 2000
www.commbank.com.auwww.commbank.com.au
2www.commbank.com.auwww.commbank.com.au
The material that follows is a presentation of The material that follows is a presentation of general background information about the Bank’s general background information about the Bank’s activities current at the date of the presentation, 13 activities current at the date of the presentation, 13 February 2001. It is information given in summary February 2001. It is information given in summary form and does not purport to be complete. It is not form and does not purport to be complete. It is not intended to be relied upon as advice to investors or intended to be relied upon as advice to investors or potential investors and does not take into account potential investors and does not take into account the investment objectives, financial situation or the investment objectives, financial situation or needs of any particular investor. These should be needs of any particular investor. These should be considered, with or without professional advice considered, with or without professional advice when deciding if an investment is appropriate.when deciding if an investment is appropriate.
DisclaimerDisclaimer
3www.commbank.com.auwww.commbank.com.au
Speaker’s NotesSpeaker’s Notes
• Speaker’s notes for this presentation Speaker’s notes for this presentation are attached below each slide.are attached below each slide.
• To access them, you may need to To access them, you may need to save the slides in PowerPoint and save the slides in PowerPoint and view/print in “notes view.”view/print in “notes view.”
4www.commbank.com.auwww.commbank.com.au
The SettingThe Setting
60
70
80
90
100
110
Jan 00 Mar-00 Jun 00 Aug 00 Nov 00 Feb 01
EQUITY INDICESJan 3 2000=100
Far East(ex Japan)
United States
Australia
Using Morgan Stanley Capital International Index (MSCI). Rebased. Local currency terms.
AgendaAgenda
1.1. Progress on StrategyProgress on Strategy
2. Integration Progress Report2. Integration Progress Report
3. The Operating Environment3. The Operating Environment
6www.commbank.com.auwww.commbank.com.au
Group StrategyGroup Strategy
Business Goals
To be To be
the best the best
brand in brand in
helping helping
customers customers
manage and manage and
build wealthbuild wealth
To be To be
the best the best
brand in brand in
helping helping
customers customers
manage and manage and
build wealthbuild wealthDevelop offshoreDevelop offshore
opportunitiesopportunities
Global best-practice costsGlobal best-practice costs
Best TeamBest Team
Attract more customers Attract more customers & more revenue per customer& more revenue per customer
Best value service through Best value service through innovation & on-line leadershipinnovation & on-line leadership
Strategic Vision Financial Goal
Top
Quartile
TSR
Top
Quartile
TSR
Growth with lowGrowth with low
inflationinflation
Major technologyMajor technology
shiftshift
WHY?
Pace of changePace of change
Limited longerLimited longer
term domestic term domestic
scopescope
Margin squeezeMargin squeeze
7www.commbank.com.auwww.commbank.com.au
Attract More Customers & More Attract More Customers & More Revenue per CustomerRevenue per Customer
• Approximately 10 million personal customersApproximately 10 million personal customers
• Growth in customer numbers and/or revenue Growth in customer numbers and/or revenue across all customer segmentsacross all customer segments
• New sales management system implementedNew sales management system implemented
• Service measurement system builtService measurement system built
8www.commbank.com.auwww.commbank.com.au
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
Innovation and On-Line LeadershipInnovation and On-Line Leadership
Measure
Electronic : Over the Counter Ratio 84:16 (Dec 00) 81:19 (Jun 00)
CustomersNo. (at 31 Dec) Growth* (%)
Transactions^Growth (No.) Growth (%)
Through ASB Bank (NZ) 85,944 48.7 1.6M 41.6
* From 30 June to 31 Dec 2000 ** Registered users ^Growth in transaction numbers for half year ended 30 June v. 31 December 2000
9www.commbank.com.auwww.commbank.com.au
Best TeamBest 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
10www.commbank.com.auwww.commbank.com.au
• Acquisition of remaining 25% of ASB Group
• Integration of Sovereign with Colonial Life well progressed
NZNZ
Develop Offshore OpportunitiesDevelop Offshore Opportunities
AsiaAsia
EuropeEurope
Last 6 monthsLast 6 months Target/GoalTarget/Goal
• Sale of Colonial Finance (UK)• Sale of Colonial Life (UK)• Entry into UK mortgage market• Integration of Stewart Ivory & Colonial
First State
• Reviewed life insurance businesses • China: commenced life insurance
business
• Develop existing businesses
• Funds management: Pursue growth in retail and wholesale funds under management
• UK mortgage market: Build market share
• Develop life insurance businesses• Grow funds management operations
in Singapore & Hong Kong• Weight geographical mix toward North
Asia
11www.commbank.com.auwww.commbank.com.au
Global Best Practice CostsGlobal Best Practice Costs
• Colonial integration on trackColonial integration on track
• Focus on technology driven productivityFocus on technology driven productivity
• Leverage the increased scale from integration Leverage the increased scale from integration
Integration Progress ReportIntegration Progress Report
13www.commbank.com.auwww.commbank.com.au
Overall TargetsOverall Targets
• Expect majority of cost synergies to be achieved by Expect majority of cost synergies to be achieved by year two whilst revenue synergies will progressively be year two whilst revenue synergies will progressively be realised over the next few yearsrealised over the next few years
• Funding benefits from anticipated improved ratings Funding benefits from anticipated improved ratings and capital managementand capital management
• Maintain & improve service levelsMaintain & improve service levels
• Maintain the momentum of Colonial First State Maintain the momentum of Colonial First State Investments Investments
• Continue strong relationships with independent Continue strong relationships with independent distributorsdistributors
14www.commbank.com.auwww.commbank.com.au
Outcomes to DateOutcomes to DateRetail banking operationsRetail banking operations
• Network distribution model implemented Network distribution model implemented
• Systems build completeSystems build complete
• Systems User Acceptance Testing commencedSystems User Acceptance Testing commenced
• Transaction bridge operationalTransaction bridge operational
• Colonial non-branch ATM conversion program completeColonial non-branch ATM conversion program complete
• LauncestonLaunceston call centre site build (stage 1) complete call centre site build (stage 1) complete
• Branch amalgamation complete (SA/WA)Branch amalgamation complete (SA/WA)
• Detailed eastern seaboard branch amalgamation Detailed eastern seaboard branch amalgamation
program now being executedprogram now being executed
• Colonial customer retention on trackColonial customer retention on track
OtherOther
• All Centre functions and Institutional Banking integratedAll Centre functions and Institutional Banking integrated
• ASB product & systems changes completeASB product & systems changes complete
CompletionCompletion
Oct 00Oct 00
Dec 00Dec 00
Jan 01Jan 01
Jan 01Jan 01
Jan 01Jan 01
Jan 01 Jan 01
Feb 01Feb 01
Feb 01Feb 01
Feb 01Feb 01
Feb 01Feb 01
ForecastForecast
Dec QtrDec Qtr
Dec QtrDec Qtr
Mar QtrMar Qtr
Mar QtrMar Qtr
Mar QtrMar Qtr
Mar Qtr Mar Qtr
Mar QtrMar Qtr
Mar QtrMar Qtr
OngoingOngoing
Jun QtrJun Qtr
Jun QtrJun Qtr
15www.commbank.com.auwww.commbank.com.au
• Conversion Management System operationalConversion Management System operational
• Launceston call centre operationalLaunceston call centre operational
• Retail bank systems integratedRetail bank systems integrated
• Back office processing integratedBack office processing integrated
• Outsourcing contracts rationalisedOutsourcing contracts rationalised
• Branch amalgamation for eastern seaboard completeBranch amalgamation for eastern seaboard complete
• Systems decommissioning completeSystems decommissioning complete
• Stage 1 property rationalisation completeStage 1 property rationalisation complete
• Service levels met & improvedService levels met & improved
Planned Outcomes for 2001Planned Outcomes for 2001
Jun QtrJun Qtr
Jun QtrJun Qtr
Sept QtrSept Qtr
Sept QtrSept Qtr
Dec QtrDec Qtr
Dec QtrDec Qtr
Dec QtrDec Qtr
Dec QtrDec Qtr
OngoingOngoing
The Operating Environment The Operating Environment
17www.commbank.com.auwww.commbank.com.au
US Financial Snapshot US Financial Snapshot
US Equities
Jan 3 2000 = 100
-40
-20
0
20
40
60
80
100
8-Jun 8-Jul 8-Aug 8-Sep 8-Oct 8-Nov
Basi
s Po
ints
AAA Rated AA2 Rating BBB1 Rating
-22
-12
55
8
25
90
5 Year US Corporate (Generic) Curve to Spread over Libor
NB: 100 basis points = 1%
Feb-0160
70
80
90
100
110
Jan-00 Mar-00 Jun-00 Aug-00 Nov-00
Using Morgan Stanley Capital International Index (MSCI).
Rebased. Local currency terms
18www.commbank.com.auwww.commbank.com.au
-6
-3
0
3
6
Sep-87 Sep-90 Sep-93 Sep-96 Sep-99-6
-3
0
3
6
% of GDP% pa
GDP growth
(lhs)
US Growth & TradeUS Growth & Trade
Consensus
(f)
Current account(rhs)
Consensus
19www.commbank.com.auwww.commbank.com.au
AsiaAsia
ASIAN EXPORTS(% of exports to US)
0
5
10
15
20
25
30
35
40
Perc
ent (
%)
Source: IMF
Hong Kong Korea Singapore China Indonesia Malaysia Philippines Thailand Japan
20www.commbank.com.auwww.commbank.com.au
Australia - Australia - Credit Cycle and Asset QualityCredit Cycle and Asset Quality
-10.0%
0.0%
10.0%
20.0%
30.0%
Jun-83 Jun-86 Jun-89 Jun-92 Jun-95 Jun-98
Ch
an
ge i
n C
red
it
-2.00%
0.00%
2.00%
4.00%
6.00%
Imp
air
ed
Assets
Change in Credit Volumes (market)
Impaired Assets to Gross Loans
(Commonwealth Bank Group)
21www.commbank.com.auwww.commbank.com.au
Sector GrowthSector Growth
Credit Growth
0
100
200
300
400
500
600
700
800
900
1000
1997 1999 2001 2003
$B
illi
on
0%
2%
4%
6%
8%
10%
12%
14%
Total Credit (Commonw ealth Bank Group )
Total Credit (Industry)
Annual Grow th (%)
Retail Deposit Growth
0
50
100
150
200
250
300
350
400
450
1997 1999 2001 2003 2005 2007
$B
illio
n
0%
1%
2%
3%
4%
5%
6%
7%
8%
Retail Deposits (Commonwealth Bank Group)
Retail Deposits (Industry)
Annual Growth (%)
Retail Funds Management (Non-Life & Life)
0
100
200
300
400
500
600
700
1997 1999 2001 2003 2005 2007
$Bil
lio
n
0%
5%
10%
15%
20%
Retail FUM (Commonw ealth Bank Group)
Retail FUM (Industry)
Annual Grow th (%)
Life Insurance (Risk Products)
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
1997 1999 2001 2003 2005 2007
$B
illio
n
-5%
0%
5%
10%
15%
Annual Premium Inforce (Commonwealth Bank Group)
Annual Premium Inforce (Industry)
Annual Growth (%)
Source: ABS, Commonwealth Bank Source: Salomon Smith Barney Estimates, APRA, Commonwealth Bank
Source: Salomon Smith Barney Estimates, ASSIRT, Commonwealth Bank Source: Plan for Life, Commonwealth Bank
22www.commbank.com.auwww.commbank.com.au
Areas of Strategic FocusAreas of Strategic Focus
• Rapid completion of Colonial integrationRapid completion of Colonial integration
• Emphasis on domestic business growthEmphasis on domestic business growth
• Improvement in service levelsImprovement in service levels
• Technology driven productivity gainsTechnology driven productivity gains
David MurrayDavid MurrayHalf Year Results - December 2000Half Year Results - December 2000
www.commbank.com.auwww.commbank.com.au
David MurrayDavid MurrayHalf Year Results - December 2000Half Year Results - December 2000
www.commbank.com.auwww.commbank.com.au
Recommended