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2007 |
Media Presentation of 2007 Interim Profit Announcement For the Half Year ended 31 December 2006 14 February |
Ralph Norris |
ACN 132 123 124 |
Commonwealth Bank of Australia |
CHIEF EXECUTIVE OFFICER |
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Disclaimer |
the into any of take of without background date or not needs general the does or with at of current and situation considered, presentation activities investors financial be a should is potential objectives, follows Bank’s or These the that about investors investment material to the investor. advice The information presentation, 14 February 2007. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as account particular professional advice when deciding if an investment is appropriate. |
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Agenda |
Results & Company Update |
Ralph Norris, CEO – Questions and Answers |
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Overview |
Good result driven by focus on profitable growth both strategic & earnings All businesses performing well Credit quality remains excellent Significant progress on 4 strategic initiatives Momentum in business – |
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Strong Financial Results |
Dec 06 vs Dec 0519% 17% 60bpts 11% 6% 14%Dec 062,271 174.7 22.3% 6,438 3,144 107 c Cash Fully Franked Dividend Cash NPAT* Cash EPS* Return on Equity – Income Expense |
* Excludes profit on sale of Hong Kong in December 05 |
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All Brands Performing Strongly |
Insurance |
Funds Mgt |
Banking |
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CEO Priorities & Measures |
Customer Service |
Business Banking |
Technology & Operational Excellence |
Trust & Team Spirit |
Superior operating and financial results |
Australia’s finest financial services organisation |
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Customer Service improves |
4000 leaders trained in Cohen Brown sales and service methodology |
Increased investment in branch network |
400 new customer facing roles |
More competitive product portfolio |
Retail customer complaints down 47% over last 12 months |
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Business Banking making good progress |
Business Finance Monitor: SME |
Recruitment & training of new in branch Business Bankers commenced |
First new Business Banking Centre opened (8 additional planned by July 2007) |
Replaced voicemail system with 24/7 telephone access to staff |
Local Business Banking online internet channel and Commbiz |
Simplification of application processes |
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Local Business Banking website |
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Technology & Operational Excellence |
Implemented new shared services approach to Enterprise IT |
$64 million of annualised savings locked in in first half |
$23m reduction in consultant and contractor spend |
Zero high severity system outages during peak times |
Good progress on strategic growth initiatives |
319 staff trained in CommWay, taking total to 1,419 |
IT Efficiency Ratio* |
(Rolling 2 month average since Jun 06) |
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Trust & Team Spirit improving LTIFR Improved internal staff 15 engagement scores 12.3 Improvements in key people 11.2 metrics 10.4 days 10 – LTIFR 9 – Staff turnover 8 7.6 |
Building pride through strong community engagement and 5 involvement of our people Sep 05 Dec 05 Mar 06 Jun 06 Sep 06 Dec 06 |
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Asian growth continues |
China 11% Jinan City Commercial Bank 19.9% Hangzhou City Commercial Bank Beijing and Shanghai – Representative offices China Life CMG – JV life insurance First State Cinda Fund Management Company Japan Branch Hong Kong Branch First State Investments Vietnam Representative office Singapore Branch First State Investments Indonesia PT Bank Commonwealth Astra CMG – JV life insurance First State Investments ANK acquisition (pending regulatory approvals) |
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Media Presentation of 2007 Interim Profit Announcement For the Half Year ended 31 December 2006 |
14 February 2007 |
Ralph Norris CHIEF EXECUTIVE OFFICER Commonwealth Bank of Australia ACN 132 123 124 |
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Outlook Domestic economy expected to support double digit system credit growth |
Earnings momentum maintained into second half |
Strategic initiatives continuing to deliver |
Financial market to remain competitive -committed to profitable growth |
Outlook for earnings growth and credit quality remain positive |
Given growth outlook and diversity of income streams confident of EPS growth which meets or exceeds average of peers |
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