Presentation for March 2006 Roadshow New York & London€¦ · Presentation for March 2006 Roadshow New York & London Ralph Norris Chief Executive Officer March 2006. 2 The material

Presentation for March 2006 Roadshow

New York & London

Ralph Norris

Chief Executive Officer

March 2006

2

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.

Disclaimer

3

Agenda

Overview

Interim Results

Priorities

Outlook

Questions

4

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

5

Highlights – consistent growth

Cash NPAT

Dividend

61 68 6979 85

94

7582 85

104112

0

40

80

120

160

200

2001 2002 2003 2004 2005 2006

Cen

ts Second Half

First Half

0

1,000

2,000

3,000

4,000

2001 2002 2003 2004 2005 2006 1H

$M

Banking

Funds Management

Insurance

6

Interim Result Highlights

Dec 05Dec 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%

7

Good half year result

Cash EPS

132.7

Cash EPS

149.513%

Scorecard Dec 05

Volume Growth

Interest Margin

Non Int.Income

Expenses

Provisions

Tax

Cash EPS

Cash

NPAT

Jun 05

Banking Funds

Mgt

Insurance S/H

investment

returns

WnB Profit on

sale of

HK

Cash

NPAT

Dec 05

$1,759m

$2,061m

80 2 14 (25)

145

86 $1,916

Cash

profit pre

HK

0

500

1000

1500

2000

2500

Jun 05 Banking Funds Mgt Insurance S/h

investment

return

WnB Gain on

disposal of

HK

Cash

NPAT Dec

05

8

Highlights - market position

Dec 05 Jun 05

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)

18.9%

23.2%

21.8%

14.7%

22.1%

25.1%

16.0%

19.8%

3.7%

22.9%

13.0%

13.9%

19.0%

23.0%

22.8%

14.6%

22.1%

24.8%

16.7%

19.5%

3.6%

23.0%

12.8%

13.8%

(1) September 05

(1)

9

Highlights - productivity

(1) On a cash basis

Expense ratios (1)

47.2%(2)

40.5%

0.73%(2)

Banking(3)

Funds

Mgt(5)

Insurance(4)

Dec 05

54.7%

50.4%

0.87%

Jun 03

CAGR = 5.7%

CAGR = 8.4%

CAGR = 6.8%

(3) Expense to income (4) Expense to average inforce premiums

(5) Expense to average funds under administration

WnB

Target

48%

42%

0.74%

(2) AGAAP equivalent basis

10

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

11

Banking - underlying profit

13% underlying profit

growth on pcp

Margin maintained in

competitive market

Strong growth in net

interest income

Cost to income ratio

continues to improve

Underlying profit up 5% since June 05

Dec

04

Dec

05

NII Other

income

BDDExpenses Tax &

OEI

1,589216 (59) (12) (19)(46)

1,509

Jun

05

1,404

12

Banking - margins maintained

Half year average NIM (bp) Half year average NIM (bp)

244bp (1bp)

Dec 05

AIFRS

Funding

Mix

Asset

Mix

Other (1)Dec 04

AIFRS

Jun 05

AIFRS

Dec 05

AIFRS

1bp (3bp)241bp

243bp 244bp241bp

Jun 05

AIFRS

246bp

Jun 04

AGAAP

(1) includes negative 2bps impact from increase in liquid assets and

net negative 1bp for pricing

13

Funds Management

Underlying profit before tax up

+22% vs Dec 04

+7% vs Jun 05

After tax profit affected by loss

of transitional tax relief

Funds under administration

grew 11% to $137bn

Positive net fund flow and

improving performance

Volume and one-off expenses

impacted costs

170

77 (61)

183

Underlying profit after tax

181(14)

0

50

100

150

200

250

300

Dec 04 Jun 05 Operating

Income

Operating

Expenses

Tax Dec 05

14

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

Largest life insurer in Australia

and New Zealand

Dec

04

Dec

05NZ

67

(1)11

4

Underlying profit up 16% since June 05

Australia Asia

103

89

Jun

05

0

20

40

60

80

100

15

Capital ratios

Dec 2004 Jun 2005 Dec 2005

Adjusted Common Equity Tier one capital Tier two capital Target Range

7.46% 7.46% 7.54%

9.81%9.75%9.60%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

4.76% 4.91% 5.00%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

16

Which new Bank

Financial targets are being exceeded

CommSee deployment and technical training complete

CommWay delivering faster processes

Customer satisfaction not yet acceptable

17

Which new Bank - Benefits

63

174

301

Dec 03 Jun 04 Dec 04 Jun 05

2003/04

$237m

2004/05

$724m (target was $620m)

423

506

Dec 05

36

109

184

27

65

117

291267

215

156

0

550

Cost Saving Revenue Benefit

18

CEO Priorities

Customer Service

Business Banking

Technology

Trust & Team Spirit

Superior operating and financial results

19

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

Presentation for March 2006 Roadshow

New York & London

Ralph Norris

Chief Executive Officer