2001 Investor Roadshow Presentation 12 November 2001 ?· 2001 Investor Roadshow Presentation ... activities…

Embed Size (px)

Text of 2001 Investor Roadshow Presentation 12 November 2001 ?· 2001 Investor Roadshow Presentation ......

  • 2001 Investor Roadshow Presentation12 November 2001

    www.commbank.com.au

  • 1

    The material that follows is a presentation of

    general background information about the Banks

    activities current at the date of the presentation,

    12 November 2001. 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

  • 2

    Speakers Notes

    Speakers notes for this presentation

    are attached below each slide.

    To access them, you may need to

    save the slides in PowerPoint and

    view/print in notes view.

  • Agenda

    1. Update

    2. Outlook

    3. Long Term Strategic Focus

  • Update

  • 5

    2.75

    3.00

    3.25

    3.50

    Mar

    -99

    Jun-

    99

    Sep

    -99

    Dec

    -99

    Mar

    -00

    Jun-

    00

    Sep

    -00

    Dec

    -00

    Mar

    -01

    Jun-

    01

    Sep

    -01

    NAB WBC ANZ Commonwealth Bank Group*

    Domestic Net Interest Margins

    %

    * Proforma

    Net interest margin for Commonwealth Bank Group refers to half-yearly reporting periods ending June

    and December, except for current period which is 3 months only to September. The ANZ, NAB and

    WBC net interest margin refers to the half-yearly reporting periods ending March and September.

    3.08

    2.95

    2.98

    3.00

  • 6

    Productivity

    Challenges

    Bad debt

    cycle

    Weak

    equity

    markets

    Low

    interest

    rates

    Imperatives

    Realise

    integration

    synergies

    Improve

    productivity

    Accelerate

    strategic

    initiatives

  • 7

    Life & Super

    Investment Earnings

    Market Returns & Group Exposure (%):

    Market Key Market Index Exposure*

    Movement YTD at 31/10/01

    Australia (7)% 52%

    US (14)% 27%

    UK/Europe (16)% 14%

    Other (11)% 7%

    * % of total Group equity exposure

    Net Earnings on Shareholders Assets

    ($m):

    For period: 01/07/01- 31/10/01

    Australia (17)

    New Zealand (2)

    Asia (3)

    Total (22)

  • 8

    67 71 72 73 76

    72 75 76 7777

    333441 42

    43 42

    34292518

    2524242324

    0

    50

    100

    150

    200

    250

    300

    Dec 1999* Jun 2000 Dec 2000 Jun 2001 Sep 2001

    Lending Assets**:

    * Proforma

    ** Excludes securitised housing loan balances $6.2b (Sep 01), $6.8b (Jun 01), $4.7b (Dec 00),

    $3.0b (Jun 00), $1.7b (Dec 99).

    215235 243

    251

    Housing Other

    Life & SuperFunds Management: Retail Wholesale

    Total Lending Assets & Funds Under

    Management

    $75 billion

    $153 billion

    253

  • 9

    Australian Market Share

    Dec 2000 Jun 2001 Aug 2001

    Home Loans 20.8% 20.3% 20.3%

    (Residentially Secured)

    Credit Cards^ 19.1% 21.4% 21.1%

    Retail Deposits 24.6% 24.0% 24.1%

    Retail FUM 15.8% 16.3% 16.3%**

    Superannuation/Annuities 16.0% 16.0% 16.0%**

    Retail Broking 8.5% 8.7% 8.7%*

    * September 2001

    ** June 2001

    ^ Colonial data captured as part of market share calculation from June 2001

  • Asset Quality

  • 11

    Dynamic Provisioning

    Profit

    and Loss

    General

    Provisions

    Specific

    ProvisionsImpaired

    Expected Loss Bad Debt

    Charge

    Performing Portfolio

    Consumer

    Home Loans

    Other Loans

    Business

    Individually Risk Rated

    AAA/AA

    A

    BBB

    Non Investment Grade

    Not Individually Rated

    Non Performing Portfolio

  • 12

    Total Individually Risk Rated Exposures by Value

    Credit Risk

    0%

    20%

    40%

    60%

    80%

    100%

    Dec 1999 Jun 2000 Dec 2000 Jun 2001 Sep 2001

    Other BBB A AAA/AA

  • 13

    0

    500

    1000

    1500

    2000

    2500

    Dec

    1993

    Dec

    1994

    Dec

    1995

    Dec

    1996

    Dec

    1997

    Dec

    1998

    Dec

    1999

    Dec

    2000

    Sep

    2001

    0

    6

    12

    18

    24

    30

    36

    %

    Commowealth Bank Group (Other Countries)*

    Commonwealth Bank Group (Australia)*

    Net Impaired assets as % of Total Shareholder Equity* (axis on right)

    Net Impaired Assets

    * Excluding Colonial prior to 30 June 2000

    Asian Crisis

    Acquisition

    of Colonial

    Two

    Account

    s

  • 14

    Arrears

    Loans Accruing past 90 days or more

    30/06/00 31/12/00 30/06/01 30/09/01

    $m $m $m $m

    Housing Loans 211 247 218 177

    Other Consumer Loans 64 66 90 68

    Total 275 313 308 245

    Housing Loan arrears rate

    30/6/99 30/6/00* 31/12/00* 31/6/01* 30/9/01*

    Housing Loans accruing

    but past 90 days or more $m 182 211 247 218 177

    Housing loan balances $m 52,646 70,738 71,505 73,511 75,261

    Arrears rate % 0.35% 0.30% 0.35% 0.30% 0.24%

    *Housing loan balances net of securitisation and includes Colonial

    and home equity and similar facilities.

  • 15

    Credit Risk: Historical P&L Charge

    -

    5.00

    10.00

    15.00

    20.00

    25.00

    30.00

    Dec-

    93

    Jun-

    94

    Dec-

    94

    Jun-

    95

    Dec-

    95

    Jun-

    96

    Dec-

    96

    Jun-

    97

    Dec-

    97

    Jun-

    98

    Dec-

    98

    Jun-

    99

    Dec-

    99*

    Jun-

    00*

    Dec-

    00

    Jun-

    01

    Bad Debt Expense / RWA (bp)

    * Includes Colonial on a pro forma basis

    Basis

    Poin

    t C

    harg

    e P

    er

    Half

  • 16

    0

    200

    400

    600

    800

    1,000

    1,200

    1,400

    1,600

    1,800

    2,000

    Dec

    93

    Dec

    94

    Dec

    95

    Dec

    96

    Dec

    97

    Dec

    98

    Dec

    99

    Dec

    00*

    0

    50

    100

    150

    200

    250

    300

    %

    General Provision

    Specific Provision

    Total Provisions/Gross Impaired Assets (axis on right)

    Aggregate Provisions

    * Includes Colonial

    $m

    illio

    ns

  • 17

    General Provision

    Jun-00 Jun-01 APRARequirement

    1,358

    +385

    -411

    +67

    1,399

    990

    Surplus 409

    (ie 41% above

    the APRA

    requirement)

    500

    700

    1500

    1700

    1900

    2100

    900

    1100

    1300

    $mCharged

    to P&L

    Used for

    Specific

    Provisions

    Other

  • 18

    Non-Accrual Loans by Size

    $5m

  • 19

    Non Accruals by Industry

    Mining

    Manufacturing

    AgricultureProperty &

    Business Services

    Finance

    and Insurance

    Transport

    & Storage

    Government

    Other

    As at 30 September 2001

  • 20

    Industry Exposures

    Accomodation, cafes and

    Restaurants

    -

    0.5

    1.0

    1.5

    2.0

    2.5

    Jun-99 Jun-00 Jun-01

    Ba

    lan

    ce

    s $b

    0%

    2%

    4%

    6%

    % B

    ala

    nce

    s

    Printing Publishing and Recording

    Media

    -

    0.2

    0.4

    0.6

    0.8

    Jun-99 Jun-00 Jun-01

    Ba

    lan

    ce

    s $

    b0%

    5%

    10%

    15%

    % B

    ala

    nce

    s

    Services to Agriculture, Forestry,

    Fishing & Mining

    -

    0.2

    0.4

    0.6

    0.8

    1.0

    Jun-99 Jun-00 Jun-01

    Ba

    lan

    ce

    s $

    b

    0%

    2%

    4%

    6%

    8%

    % B

    ala

    nce

    s

    Retail Trade

    -

    1.0

    2.0

    3.0

    4.0

    Jun-99 Jun-00 Jun-01

    Ba

    lan

    ce

    s $

    b

    0%

    2%

    4%

    6%

    % B

    ala

    nce

    s

    Transport and Storage

    -

    1.0

    2.0

    3.0

    4.0

    Jun-99 Jun-00 Jun-01

    Bala

    nces $

    b

    0%

    2%

    4%

    6%

    % B

    ala

    nces

    Metal Mining & Manufacturing

    -

    0.8

    1.5

    2.3

    3.0

    Jun-99 Jun-00 Jun-01

    Ba

    lan

    ce

    s $

    b

    0%

    5%

    10%

    15%

    20%

    % B

    ala

    nce

    s

    Balances $m % Portfolio % Troublesome % Impaired

    Exposure to high risk industries

  • Wealth Management

  • 22

    Funds Management

    23 27 28

    20 2427

    31 30

    19 1724

    2324

    24 25

    18 20

    1422

    21

    0

    20

    40

    60

    80

    100

    120

    Dec 1999* Jun 2000* Dec 2000 Jun 2001 Sep 2001

    $b

    illi

    on

    s

    Australian Retail Funds** Australian Wholesale Funds

    International Funds Australian Life Assets

    ** Includes listed property trusts* Proforma

    7689

    95101 100

  • Capital