Presentation for March 2006 Roadshow New York & London Ralph Norris Chief Executive Officer March 2006
Disclaimer 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. 2
Agenda Overview Interim Results Priorities Outlook Questions 3
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 4
Cents $M Highlights consistent growth 4,000 Cash NPAT 3,000 2,000 1,000 Banking Funds Management Insurance 0 2001 2002 2003 2004 2005 2006 1H Dividend 200 160 120 80 40 82 85 75 61 68 69 104 112 79 85 94 Second Half First Half 0 2001 2002 2003 2004 2005 2006 5
Interim Result Highlights Dec 05 Dec 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% 6
2500 Good half year result 2000 1500 $1,759m 80 2 14 (25) 86 $1,916 145 $2,061m Scorecard Dec 05 Volume Growth Interest Margin Non Int.Income 1000 Expenses 500 Provisions Tax 0 Cash Banking Funds Insurance S/H Jun NPAT 05 Banking Funds Mgt Mgt Insurance investment S/h Jun 05 investment returns return WnB WnB Cash profit pre HK Profit on Cash sale Gain of on NPAT Cash disposal HK ofnpat Dec 05Dec HK 05 Cash EPS Cash EPS 132.7 13% Cash EPS 149.5 7
Highlights - market position 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) Dec 05 Jun 05 18.9% 19.0% 23.2% 23.0% 21.8% 22.8% 14.7% 22.1% 25.1% 16.0% 19.8% 3.7% 22.9% 13.0% 13.9% (1) 14.6% 22.1% 24.8% 16.7% 19.5% 3.6% 23.0% 12.8% 13.8% (1) September 05 8
Highlights - productivity 54.7% Expense ratios (1) WnB Target CAGR = 5.7% 50.4% 47.2% (2) Banking (3) 48% CAGR = 8.4% Insurance (4) 40.5% 42% 0.87% CAGR = 6.8% 0.73% (2) Funds Mgt (5) 0.74% Jun 03 (1) On a cash basis (2) AGAAP equivalent basis Dec 05 (3) Expense to income (5) Expense to average funds under administration (4) Expense to average inforce premiums 9
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 10
Banking - underlying profit 13% underlying profit growth on pcp Underlying profit up 5% since June 05 216 (46) (59) (12) (19) 1,589 Margin maintained in competitive market 1,404 1,509 Strong growth in net interest income Cost to income ratio continues to improve Dec 04 Jun 05 NII Other income Expenses BDD Tax & OEI Dec 05 11
Banking - margins maintained Half year average NIM (bp) Half year average NIM (bp) 246bp 243bp 244bp 241bp 244bp (1bp) 1bp (3bp) 241bp Jun 04 AGAAP Dec 04 AIFRS Jun 05 AIFRS Dec 05 AIFRS Jun 05 AIFRS Funding Mix Asset Mix Other (1) Dec 05 AIFRS (1) includes negative 2bps impact from increase in liquid assets and net negative 1bp for pricing 12
Funds Management Underlying profit before tax up 300 Underlying profit after tax +22% vs Dec 04 +7% vs Jun 05 After tax profit affected by loss of transitional tax relief 250 200 150 170 181 77 (61) (14) 183 Funds under administration grew 11% to $137bn Positive net fund flow and improving performance Volume and one-off expenses impacted costs 100 50 0 Dec 04 Jun 05 Operating Income Operating Expenses Tax Dec 05 13
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 100 80 60 40 20 Underlying profit up 16% since June 05 4 103 11 89 (1) 67 0 Largest life insurer in Australia and New Zealand Dec 04 Jun 05 Australia NZ Asia Dec 05 14
Capital ratios 11% 10% 9.60% 9.75% 9.81% 9% 9% 8% 8% 7% 7% 6% 7.46% 7.46% 7.54% 5% 5% 4% 3% 3% 2% 2% 4.76% 4.91% 5.00% 1% 1% 0% 0% Dec 2004 Jun 2005 Dec 2005 Adjusted Common Equity Tier one capital Tier two capital Target Range 15
Which new Bank Financial targets are being exceeded CommSee deployment and technical training complete CommWay delivering faster processes Customer satisfaction not yet acceptable 16
Which new Bank - Benefits 550 2004/05 $724m (target was $620m) 506 423 215 2003/04 $237m 301 156 174 117 0 65 267 63 184 27 109 36 Dec 03 Jun 04 Dec 04 Jun 05 291 Dec 05 Cost Saving Revenue Benefit 17
CEO Priorities Customer Service Business Banking Technology Trust & Team Spirit Superior operating and financial results 18
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 19
Presentation for March 2006 Roadshow New York & London Ralph Norris Chief Executive Officer