Results Presentation For the half year ended 31 December 2009 10 - PowerPoint PPT Presentation

DETERMINED TO BE BETTER THAN WE‟VE EVER BEEN. Core Banking Modernisation Results Presentation For the half year ended 31 December 2009 10 February 2010 Commonwealth Bank of Australia ACN 123 123 124 14 MARCH 2011 | COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124

Disclaimer Disclaimer The material that follows is a presentation of general background information about Group‟s the activities current at the date of the presentation, 14 March 2011. 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

Today’s Agenda  Introduction Ralph Norris  Core Banking Overview Michael Harte  Maximising Value Patricia Montague  Programme Update Dave Curran  Demonstration Cathy Bianchini  Q&A Panel 3

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Key Take-Aways  Excellent progress-to-date  Already delivering real customer and business benefits  An integral part of the Group‟s customer service strategy  Positions CBA for transformational change in banking 5

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An An int integral l part of our strategy Customer Business Banking Satisfaction   Up 10.5% to 75.4% Strong market share gains   Equal highest products-per-customer Improved Customer Satisfaction Australia’s finest financial services organisation Technology and Trust and Operational Team Spirit Excellence  Top Quartile Engagement Profitable  Online market leader  Growth Core Banking  Bankwest acquisition  Targeted Asian expansion 7

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Tran Tr ansfor sformat mation onal al Ch Chan ange ge Ne NetBan Bank + + 14% % of Ne NetBan Bank In Innova vative Property y Core Banking Modernisa sation logins s now vi via Guide Gu = = mobile devi mob vices iPhone “app” Real-time me Ban Banking 9

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DETERMINED TO BE BETTER THAN WE‟VE EVER BEEN. Core Banking Modernisation Michael Harte Group Chief Information Officer Results Presentation For the half year ended 31 December 2009 10 February 2010 Commonwealth Bank of Australia ACN 123 123 124 14 MARCH 2011 | COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124

Leading ing posi sition, ion, lead leading ing pla latforms ms CommBiz Online, secure business and FirstChoice corporate Providing customers banking... real time access to CommSec a more responsive secure Super and 15 years as the and simplified Investment portfolio market leading NetBank approach to credit information and online retail broking Market leading online transacting platform, Money and mobile banking CommSee capabilities. Voted Magazine‟s Best solution. Now Frontline customer interface. the leading Feature-Packed integrated with Core Single view of customer. Now Property Guide investment platform Online Broker 4 Banking to provide integrated with Core Banking to Our innovative Property Guide by advisers 3 years years running real-time transactions provide real-time transactions for iPhone app has exceeded running for all personal all personal accounts expectations and more mobile accounts applications and capabilities are in development Forrester’s newly launched Next -Generation Digital Financial Services report highlights key requirements for the next generation of financial services and cites examples of international banks leading the way, including CBA 12

Leading ing po position ition Formally announced CBM programme on 28 April 2008  Modernise legacy systems and processes with a customer-centric platform, and  transform associated business operations Architecture flexible and efficient. Based on the roles and relationships of a customer‟s  financial life – not products or accounts 4 year programme forecast to deliver significant value / benefits:  – Customer service improvements – Growth opportunities – Efficiency gains – Risk mitigation for aging systems Governance through Business Leadership, CEO and Board  13

The journey we’re on 2007 2008 2009 2010 2011 2012  Feasibility paper  Detailed  New platform  1.2m Term  Business  Business prepared evaluation and launched with deposit accounts deposit and lending business case First Home migrated to new transaction accounts  Concept paper prepared Saver Account platform accounts migrated prepared for migrated  Business case  New term  10m retail  Retail lending board  CommBiz presented to deposit for CFS deposit and accounts  Partner/vendor Board in March transaction integrated migrated  53m customer shortlist 2008 accounts  New capabilities selection records migrated  Board approved migrated to SAP will be launched:  SAP &  All retail deposit in April 2008 bundling/  Telling platform Accenture and transaction packaging, appointed and NetBank customers sweeping and integrated to experiencing real pooling facilities new banking time banking platform 14

Progress to da Pr date We have passed our ½ way point… 10m deposit and transaction accounts migrated 53m customer records 1m term deposit accounts migrated 18,000 jobs changed to Real-time processing better serve customers 24 x 7 Christmas peak of 650 7 day processing transactions per second and 7 day value 15

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Risk Risks an and iss issues „Execution‟ was the greatest risk initially  – Proven delivery capability – Best team in Australia – Advanced world-wide Contending with „legacy‟ is our biggest issue  – 40 years legacy – Unstructured data / Undocumented applications – Massive change Significant complexity, age and change adds implementation time  Being first means you take calculated risk  17

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Ou Our f future Customer Strategic Technology Service Capabilities Proposition Rich Partnering Mobile Content Superior Applications Services customer On Demand Platform experience Test & Learn Data Insight 19

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DETERMINED TO BE BETTER THAN WE‟VE EVER BEEN. Core Banking Modernisation Patricia Montague Head of Retail Bank Transformation Results Presentation For the half year ended 31 December 2009 10 February 2010 Commonwealth Bank of Australia ACN 123 123 124 14 MARCH 2011 | COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124

Our Our customer customers s ar are alr e already eady experiencing xperiencing the the benefits benefits 22

Our Our customer customers s ar are alr e already eady experiencing xperiencing the the benefits benefits Customers can now see transactions straight away  Accounts opened instantly so customers can immediately start to transact/save  CBA account switching on the spot – no closure/re-opening  Clear simple transaction descriptions e.g. transaction type, location, description  Enhanced sales interaction supported by simple product set  23

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Cus Customers tomers are are finding inding it it simpler impler and and eas easier ier to to do do bus busines iness with with us us Simplification: Less products, more features = choice (from 16 to 9 retail products)  > 500,000 accounts “cleaned up” prior to migration  Simplified processes leading to considerable time savings for customers  Sales and Service: High staff engagement  New products: „ GoalSaver ‟ launched nationally 7 th Feb  Electronic delivery of documentation in Netbank  Fewer errors:  –  30% across the Branch Network – Reduction in back office manual processing 25

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DETERMINED TO BE BETTER THAN WE‟VE EVER BEEN. Core Banking Modernisation Dave Curran Programme Director Core Banking Modernisation Results Presentation For the half year ended 31 December 2009 10 February 2010 Commonwealth Bank of Australia ACN 123 123 124 14 MARCH 2011 | COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124

CB CBM vi visi sion and and objecti jectives ves Programme Vision Objectives Real time banking  Immediate fulfilment of account opening and servicing transactions rather than overnight  Seven day a week value and processing  To build a great Real time transactions Customer-centric processing customer-centric  Account opening and pricing, servicing and transaction processing applied at customer level  Consistent data across all channels bank whose  Comprehensive data across the bank Customer offerings profitable growth is  Offers engineered based on customer segment needs, not system capabilities  Products configured not developed powered by  Cross product pricing, conditions and feature configuration  Time to market limited by organisation, not systems simplicity Industrialisation  Separation of distribution from manufacturing  Greater visibility of performance  Increased specialisation while decreased complexity Multi-Entity  Ability to deliver across the Group 28