07 22 09 - Presentation CBS

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    CanterburyB

    uildingS

    ociety

    134thAnnualG

    eneralM

    eeting

    22Ju

    ly2009

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    Chairman

    GaryLeech

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    AGE

    NDA

    Apologies

    /Proxies

    Minuteso

    f133rdAnn

    ualGeneralMeeting

    Managem

    entpresentation

    Electiono

    fDirectors

    Directors

    Remuneration

    Appointm

    entofAuditors

    GeneralB

    usiness

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    BALANCESHEET

    PeakedfollowingLBSmerger

    Lendingo

    pportunitie

    sdriedup

    Significan

    tleveloftablemortgag

    esand

    scheduled

    repayments

    Focusonassetquality

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    AssetsGraph

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    BALANCESHEET

    Peakedfo

    llowingLBS

    merger

    Lendingopportunitiesdriedup

    Significan

    tleveloftablemortgag

    esand

    scheduled

    repayments

    Focusonassetquality

    Equityred

    ucedby

    $4

    .9m

    NTApersharereduce

    dby5%

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    Eq

    uity

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    NTA/Sh

    areprice

    $0

    .00

    $0

    .50

    $1

    .00

    $1

    .50

    $2

    .00

    $2

    .50

    $3

    .00

    $3

    .50

    $4

    .00

    $4

    .50

    $5

    .00

    $5

    .50

    $6

    .00

    1/09/2004

    1/03/2005

    1/09/2005

    1/03/2006

    1/09/2006

    1/03/2007

    1/09/2007

    1/03/2008

    1/09/2008

    1/03/2009

    SharePrice

    NTApershare

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    ASSETQUALITY

    Keytopro

    tectingthe

    balancesheet

    Biggestrisktobankin

    gprofitabilityandequity

    Standardisedthelendingcriteria

    andcredit

    disciplinesfollowingmergers

    Increased

    understand

    ingandpro

    activeness

    amongstafftowards

    tightercred

    it

    managem

    ent

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    ASSETQUALITY

    Resu

    lte

    d

    in:

    Bringingp

    roblemacc

    ountstoah

    ead

    Reducedexposuresinhigherrisk

    areas

    Reducedindividualexposures

    Reducednonperform

    ingassets

    Reducedtotalarrears

    Greaterawarenessandfocusby

    lendingstaff

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    LENDING

    PROFIL

    E

    20

    08

    Residential

    Commercial

    Farming

    2009

    Reside

    ntial

    Comm

    ercial

    Farming

    51.6

    %

    38

    .0%

    10

    .4%

    53

    .0%

    39

    .5%

    7.5

    %

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    LIQU

    IDITYM

    ANAGEM

    ENT

    Recognise

    dimportan

    ceearly

    Increased

    bankstand

    bylines

    Increased

    cashreserv

    es

    Achieved

    crownguarantee

    Verysolid

    reinvestme

    ntrates

    Disconnectinthefinancemarkets

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    LIQU

    IDITYM

    ANAGEM

    ENT

    Recognisedimportanceearly

    Increased

    bankstandb

    ylines

    Increased

    cashreserve

    s

    Achievedcrownguarantee

    Verysolid

    reinvestmen

    trates

    Disconnec

    tinthefinan

    cemarkets

    Holdingliq

    uiditybecam

    everyexpe

    nsive

    Costoffundinglineincreased

    Movetowardsgreater

    efficiencyw

    ithliquidity

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    OPE

    RATIONALEFFICIENCY

    Costtoincomeratioisakeymea

    sureof

    bankinge

    fficiency

    Realistict

    argetforCB

    S505

    5%m

    aximum

    Recentmergershave

    resultedin

    costretention

    andasset

    rationalisation

    Graphsho

    wsunacceptableincre

    aseincostto

    incomera

    tio

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    CO

    STTOIN

    COMER

    ATIO

    0.0

    %

    10

    .0%

    20

    .0%

    30

    .0%

    40

    .0%

    50

    .0%

    60

    .0%

    70

    .0%

    80

    .0%

    2005

    2006

    2007

    2008

    2009

    2

    010

    2011

    2012

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    OPE

    RATIONALEFFICIENCY

    Costtoincomeratioisake

    ymeasureofb

    ankingefficien

    cy

    RealistictargetforCBS5055%maximum

    Recentmerg

    ershaveresultedincostrete

    ntionandasset

    rationalisation

    Graphshow

    unacceptableincreaseincosttoincomeratio

    Twowaysto

    improveefficiency

    Verydelicatebalanceifwe

    aretocapture

    future

    opportunitie

    s

    Bestsolutionfromhere:t

    ocontrolcostbaseandgrow

    revenue

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    PROFITABILITY

    2009impactedbymerger,asset

    quality

    ,swa

    p

    cost,

    rece

    ssion,

    regulatoryandr

    eporting

    requirements

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    NetProfitaftertax

    peter

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    FU

    TUREPR

    OFITABILITY

    Currentsw

    apcostsandlowmargin

    priorlendin

    g

    Presentlendingatsustainablemargins

    Numberofnegativeim

    pactsreversing

    Costsarebeingtightly

    managed

    Maintainin

    gexistingsk

    illsandcapa

    city

    2010year

    halfyearloss

    /fullyea

    rprofit

    Beyond20

    10weexpectstrongper

    formanceas

    marketno

    rmalityreturns

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    INVESTEDIN

    THEFU

    TURE

    Gainedm

    ergerexper

    ience

    OnlylistedBuildingSociety

    Haveaqu

    alitylendin

    gbook

    Veryloyaldepositors

    Verydedicatedstaff,greaterskillsand

    experienc

    ealongte

    rminvestm

    ent

    Wellpositionedtose

    curequality

    growth

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    KEYMESSAGES

    Keepingthebalancesheetstrong

    Focusingonassetquality

    Maintaini

    ngadequateliquidity

    Needtoimprovecost/incomeratio

    Returning

    togreaterprofitability

    Significan

    tinvestmen

    tsinthefuture

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    AGE

    NDA

    Apologies

    /Proxies

    Minuteso

    f133rdAnn

    ualGeneralMeeting

    Managem

    entpresentation

    Electiono

    fDirectors

    Directors

    Remuneration

    Appointm

    entofAuditors

    GeneralB

    usiness

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    ELE

    CTIONO

    FDIRECTORS

    Retiringinacco

    rdancewithSo

    cietyRules

    DGChurch

    RABonifant

    RBradford

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    ELE

    CTIONO

    FDIRECTORS

    Reso

    lution

    requ

    ire

    d

    thatMrDGChurchbe

    ree

    lected

    totheBoar

    d

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    ELE

    CTIONO

    FDIRECTORS

    Reso

    lution

    requ

    ire

    d

    thatMrRBradfordbe

    ree

    lectedtotheBoard

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    DIRE

    CTORSR

    EMUNERATION

    Noincrea

    seindirectorsfeesisp

    roposedfor

    the2010

    year

    Noresolu

    tionrequired

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    APPOINTMENTOFAUDITOR

    Recordth

    ereappoin

    tmentofDeloitteas

    Auditora

    ndauthoris

    etheDirectorstofixth

    eir

    remunera

    tionforthe

    currentfin

    ancialyear.

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    G

    ENERAL

    BUSINE

    SS

    Meetin

    gClosure