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Presentation for March 2006 Roadshow
New York & London
Ralph Norris
Chief Executive Officer
March 2006
2
The material that follows is a presentation of general background
information about the Bank’s activities current at the date of the
presentation, 6 March 2006. 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.
Disclaimer
3
Agenda
Overview
Interim Results
Priorities
Outlook
Questions
4
CBA at a glance
Established in 1911 – Central Bank until 1959
Market capitalisation A$56.9 bn – Top 5 listed company
Total Assets A$351.2 bn as at 31 December 2005
35,000 employees
Largest Australian retail banking operations with over 8 million customers
Over 1,000 branches, 3,800 agencies and 3,200 ATM’s, largest distribution reach of any bank in Australia
5
Highlights – consistent growth
Cash NPAT
Dividend
61 68 6979 85
94
7582 85
104112
0
40
80
120
160
200
2001 2002 2003 2004 2005 2006
Cen
ts Second Half
First Half
0
1,000
2,000
3,000
4,000
2001 2002 2003 2004 2005 2006 1H
$M
Banking
Funds Management
Insurance
6
Interim Result Highlights
Dec 05Dec 05 vs
Jun 05
Dec 05 vs
Dec 04
Cash NPAT $2,061m 17% 19%
Cash EPS (excl HK) 149.5cps 13% 13%
Dividend 94c - 11%
Which new Bank benefits $506m 20% 68%
7
Good half year result
Cash EPS
132.7
Cash EPS
149.513%
Scorecard Dec 05
Volume Growth
Interest Margin
Non Int.Income
Expenses
Provisions
Tax
Cash EPS
Cash
NPAT
Jun 05
Banking Funds
Mgt
Insurance S/H
investment
returns
WnB Profit on
sale of
HK
Cash
NPAT
Dec 05
$1,759m
$2,061m
80 2 14 (25)
145
86 $1,916
Cash
profit pre
HK
0
500
1000
1500
2000
2500
Jun 05 Banking Funds Mgt Insurance S/h
investment
return
WnB Gain on
disposal of
HK
Cash
NPAT Dec
05
8
Highlights - market position
Dec 05 Jun 05
Home Loans
NZ Lending
Credit Cards
Funds Mgt. – Aust. Retail
Transaction Services (corporate)
Transaction Services (commercial)
Personal Lending
NZ Deposits
Equities Trading (CommSec)
Retail Deposits
Business Lending
Aust.Life Insurance (total risk)
18.9%
23.2%
21.8%
14.7%
22.1%
25.1%
16.0%
19.8%
3.7%
22.9%
13.0%
13.9%
19.0%
23.0%
22.8%
14.6%
22.1%
24.8%
16.7%
19.5%
3.6%
23.0%
12.8%
13.8%
(1) September 05
(1)
9
Highlights - productivity
(1) On a cash basis
Expense ratios (1)
47.2%(2)
40.5%
0.73%(2)
Banking(3)
Funds
Mgt(5)
Insurance(4)
Dec 05
54.7%
50.4%
0.87%
Jun 03
CAGR = 5.7%
CAGR = 8.4%
CAGR = 6.8%
(3) Expense to income (4) Expense to average inforce premiums
(5) Expense to average funds under administration
WnB
Target
48%
42%
0.74%
(2) AGAAP equivalent basis
10
Highlights - underlying profit by business
Dec 05
$M
Jun 05
$M
Dec 04
$M
Banking 1,589 1,509 1,404
Funds Management 183 181 170
Insurance 103 89 67
Total AIFRS 1,875 1,779 1,641
AIFRS Impact 45 23 23
Underlying AGAAP equivalent (1) 1,920 1,802 1,664
(1) 7% growth Dec 05 vs June 05
15% growth Dec 05 vs Dec 04
11
Banking - underlying profit
13% underlying profit
growth on pcp
Margin maintained in
competitive market
Strong growth in net
interest income
Cost to income ratio
continues to improve
Underlying profit up 5% since June 05
Dec
04
Dec
05
NII Other
income
BDDExpenses Tax &
OEI
1,589216 (59) (12) (19)(46)
1,509
Jun
05
1,404
12
Banking - margins maintained
Half year average NIM (bp) Half year average NIM (bp)
244bp (1bp)
Dec 05
AIFRS
Funding
Mix
Asset
Mix
Other (1)Dec 04
AIFRS
Jun 05
AIFRS
Dec 05
AIFRS
1bp (3bp)241bp
243bp 244bp241bp
Jun 05
AIFRS
246bp
Jun 04
AGAAP
(1) includes negative 2bps impact from increase in liquid assets and
net negative 1bp for pricing
13
Funds Management
Underlying profit before tax up
+22% vs Dec 04
+7% vs Jun 05
After tax profit affected by loss
of transitional tax relief
Funds under administration
grew 11% to $137bn
Positive net fund flow and
improving performance
Volume and one-off expenses
impacted costs
170
77 (61)
183
Underlying profit after tax
181(14)
0
50
100
150
200
250
300
Dec 04 Jun 05 Operating
Income
Operating
Expenses
Tax Dec 05
14
Insurance Results - total
Underlying profit :
+54% on Dec 04
+16% on Jun 05
After adjusting for sale of HK,
operating income up 8% on
prior half
Largest life insurer in Australia
and New Zealand
Dec
04
Dec
05NZ
67
(1)11
4
Underlying profit up 16% since June 05
Australia Asia
103
89
Jun
05
0
20
40
60
80
100
15
Capital ratios
Dec 2004 Jun 2005 Dec 2005
Adjusted Common Equity Tier one capital Tier two capital Target Range
7.46% 7.46% 7.54%
9.81%9.75%9.60%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
4.76% 4.91% 5.00%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
16
Which new Bank
Financial targets are being exceeded
CommSee deployment and technical training complete
CommWay delivering faster processes
Customer satisfaction not yet acceptable
17
Which new Bank - Benefits
63
174
301
Dec 03 Jun 04 Dec 04 Jun 05
2003/04
$237m
2004/05
$724m (target was $620m)
423
506
Dec 05
36
109
184
27
65
117
291267
215
156
0
550
Cost Saving Revenue Benefit
18
CEO Priorities
Customer Service
Business Banking
Technology
Trust & Team Spirit
Superior operating and financial results
19
2006 outlook
Global Economy
– Economic growth expected to remain solid
– Oil prices and rate of growth in China will influence domestic economy
Domestic Economy
– Business credit growth strong
– Consumer credit growth moderated, particularly housing
– Credit quality, employment and business confidence strong
– Financial services expected to remain highly competitive
Bank
– Exceed 12% CAGR in cash EPS from 2003 – 06
– 2006 EPS growth to equal or exceed the average of our peers
Presentation for March 2006 Roadshow
New York & London
Ralph Norris
Chief Executive Officer