Transcript Home lending growth profile*

UBS Financial Services Conference
“The Strategic Imperative”
Michael Cameron
Chief Financial Officer
22 June 2005
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, 22 June 2005. 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
Agenda

Which new Bank - the CBA strategic centrepiece

Other strategic opportunities
• Ongoing productivity improvements
• Segmented product offerings – Banking division
• Compartmentalisation of manufacturing and
distribution in Wealth Management
• International growth
3
Which new Bank
The CBA Strategic Centre Piece

2004/05 milestones

Customer service

Our people

Simple processes
4
In 2003 the Bank anticipated

Slowing credit growth

Increased competition

Margin compression
5
Our transformation vision
“To Excel in
Customer Service”
Via
Customer
Service
People
Through
Engaged
People
Supported by
Simple
Processes
• Service and
Sales
• Leadership
• CommWay
• CommSee
• Performance
Management
• Process Redesign /
simplification
• People
Development
• Support Function
Redesign
Systems
• Branch
Refurbishment
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June 05 milestones
Milestone
Percentage complete*
Customer
1. Service & Sales Management - remaining staff trained
People
Jun 05
85%
2. Branch Refurbishment - refurbish 125
Jun 05
65%
3. NetBank - new service implemented
100% Mar
05
4. CommSee - platform built and deployment commenced
100% Apr
05
5. CommSee - 40% customer-facing staff trained
Jun 05
30%
6. Segment Model - pilot completed
Process
Target date
Jun 05
60%
100% Dec
7. Performance Culture - performance management system
implemented
04
8. Performance Culture - new learning curriculum available
70%
Jun 05
9. CommWay - 40 process simplification initiatives completed
75%
Jun 05
10. Support Function Redesign - implementation of 14 functions
completed
80%
Jun 05
11. Wealth management systems - reduced from 11 to 7
80%
Jun 05
12. Procurement - 10 key categories renegotiated
90%
13. IT Efficiency - run-rate savings of $80m realised
* As at end April 2005
80%
Jun 05
Jun 05
As at February 2005 WnB Update
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Customer service

Customer-focussed Service and Sales across Bank

New Netbank launched

CommSee progressing to plan

One Team Referrals working
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Our people

CommLeader

Performance Management

People Development

Internal Service Quality measured quarterly
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Simple processes

Becoming ‘everyday’ behaviours

Over 300 skilled at ‘lean/Six Sigma’ methodologies

33 CommWay projects completed

Increased security and integrity of customer data
10
WnB Benefits
Actual benefits ($m)
301
117
174
65
184
63
109
27
36
Dec 03
Jun 04
Revenue Benefits
Dec 04
Cost Saving
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WnB opportunities

CommSee Extensions

NetBank Product

One Team Referrals

Best Sourcing

CommWay
12
Other strategic initiatives

Ongoing productivity improvements

Segmented product offerings

Wealth management structure

International growth
13
Productivity improvements
Expense ratios (1)
54.7%
CAGR = 6%
50.1%
(2)
Banking
50.4%
CAGR = 8%
Insurance
44.9%
0.87%
CAGR = 11%
Jun 03
(1)
(2)
On a cash basis
Expense to income
Funds
(4)
0.74% Mgt
Dec 04
(3)
(4)
Expense to average inforce premiums
Expense to average funds under administration
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(3)
Segmented product offerings - Deposits

Ongoing review of customer base and product options

Emphasis on effective segmentation

Drawing on benefits to customers of access and
convenience

Product examples:

NetBank Saver (5.4% online product)

5.6% Term deposit account
15
Segmented product offerings – Premium
Business Services

Launch of Capped BetterBusiness Loan

Launch of Business Line of Credit – over 1,600
accounts already

Launch of the Premium Plantations Project 2005
16
Wealth Management – structure

Symetry Limited acquisition

WM Restructure and Alignment - separation of asset mgt
and platforms

Joint venture with Acadian Asset Management

30% minority interest in 452 Capital

Hiring of Warwick Negus to head up Global Asset
Management
17
International Growth

Why
• Rapid growth in financial services demand in Asia
• Creates option plays for long term growth

Where
• Regional strategy focused on Asia-Pacific
• Greater China, Indonesia, and India are new key markets
• Target mass affluent customers in large urban areas

How
• Selectively establish bank deposit / investor / customer base
• Build on Group capabilities in integrated financial services
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Summary

Which new Bank delivering

Expect to exceed original Which new Bank targets

Product segmentation initiatives

Well positioned for growth
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UBS Financial Services Conference
“The Strategic Imperative”
Michael Cameron
Chief Financial Officer
22 June 2005
20