Chairman’s Statement | 2 | |||
Chief Executive Officer’s Statement | 4 | |||
Highlights | 6 | |||
Banking Analysis | 10 | |||
Funds Management Analysis | 14 | |||
Insurance Analysis | 16 | |||
Directors’ Report | 18 | |||
Five Year Financial Summary | 49 | |||
Financial Statements | 51 | |||
Income Statement | 52 | |||
Balance Sheet | 53 | |||
Statement of Recognised Income and Expense | 54 | |||
Statement of Cash Flows | 55 | |||
Notes to the Financial Statements | 57 | |||
Directors’ Declaration | 67 | |||
Independent Audit Report | 68 | |||
Shareholding Information | 69 | |||
International Representation | 73 | |||
Contact Us | 75 | |||
Corporate Directory | 77 |
• | Record profit achieved with cash net profit after tax increasing 18% to $4,604 million; |
• | Shareholders were rewarded with a record final dividend of 149 cents per share taking the total dividend for the year to 256 cents per share, an increase of 14%; |
• | Strong performance from all businesses with Banking, Funds Management and Insurance all delivering double digit earnings growth; |
• | Significant progress in the execution of the five key strategic priorities as the Group reinvests in the businesses to drive future profit growth; |
• | Solid growth in Banking income of 10%, following growth in average interest earning assets of 15% to $316 billion and net interest margin contraction of 15 basis points (including 10 basis points of underlying margin contraction); |
• | Growth in Funds Under Administration of 17% to $177 billion supported by both strong underlying inflows and positive investment market returns; |
• | Growth in insurance premiums of 21% to $1,400 million and improved operating margins; |
• | Strong growth in Total operating income of 11% with expense growth of 7%. The expense growth includes ongoing reinvestment in our businesses through recruitment of front line staff and increased spend on strategic initiatives; and |
• | Continued stability in credit quality level across the portfolio. |
• | In September 2006, a number of changes were made to the Group’s Dividend Reinvestment Plan, which were advised to Shareholders on 5 October 2006. As a result of these changes, the dividend reinvestment plan participation rate increased markedly to 37.6% from previous levels of 18%; |
• | An issue of $700 million of hybrid securities, called Funds Management Securities, was completed in September 2006; and |
• | An offer of Perpetual Exchangeable Resaleable Listed Securities (PERLS IV) was announced on 1 June 2007. The offer raised $1,465 million in July. These securities are structured to meet APRA’s new regulatory capital requirements for Non-Innovative Residual Tier 1 Capital, effective January 2008. |
• | The embedding of our Sales and Service culture has remained a priority. In particular, we have placed emphasis on training our front line people where we have focused on disciplines around customer needs analysis, business referral initiatives and “taking ownership and following up”; |
• | We are investing in our front line and becoming more accessible to our customers. Examples include: |
– | We are refurbishing retail branches and opening new branches; | ||
– | We increased customer facing staff in both Retail and Business Banking. In business we are adding more bankers in Local Business Banking, our Agribusiness and middle market business; | ||
– | We have introduced more flexible opening hours in our branches including Saturday trading in 65 branches; | ||
– | We are opening new Business Banking centres and providing 24 hour, seven days per week phone access for our local business and rural customers; | ||
– | For our rural customers, we launched Agriline, a telephone service operated by specialist agribusiness bankers; | ||
– | We have introduced a new operating model into the retail branch network, giving our branch managers greater autonomy, which will better meet the needs of our customers and our people; and | ||
– | We have continued to train wealth management and insurance advisers, placing them in our retail bank branches to provide specialist advice for our customers. |
• | We are continuously reviewing and refining our product portfolio and introducing new and improved products which we believe will make us more competitive. We have also rationalised some of our product offering to provide simpler and more tailored solutions for customers; and |
• | We are also simplifying our procedures and processing to improve our responsiveness and are introducing auto-decisioning in many parts of our business to speed up approval and processing times. |
• | We have completed the restructuring of the business to better align it with the needs of our business customers; |
• | We are making good progress increasing our Business Banking “footprint” by employing new Business Bankers, adding new Business Banking centres and putting Business Bankers back into selected branches – we are on track to add 25 new Business Banking Centres by June 2009; |
• | We have rolled out our CommSee for Business across our branch and call centre networks which is providing us with the information platform to support the selective growth of our Business Banking “footprint”; |
• | We have built CommBiz, our new internet based Business Banking offering, and have successfully rolled it out to over 10,000 of our business customers; |
• | We have developed a new and improved portfolio of Business Banking products and simplified our Business Banking processes and approval procedures; and |
• | We have invested in people and new technology to make it easier for our customers to deal with us. For our rural customers we launched Agriline with 23 new Agriline specialists and for our small business customers we launched Local Business Banking Online. |
• | We have bedded down our new Enterprise Information Technology (EIT) team and we have reorganised the function into a more co-ordinated and effective structure; |
• | We have achieved our target of delivering efficiency savings across EIT of $100 million; |
• | We have seen significant improvements in systems stability and resilience and have improved our security, controls and disaster recovery capabilities; |
• | We executed a significant number of initiatives designed to improve customer service, increase operational efficiency and provide increased security to the Group and its customers. These initiatives include: |
– | Dual factor identification; | ||
– | The rollout of CommBiz; | ||
– | Ongoing CommSee enhancements; | ||
– | Global Markets systems improvements; | ||
– | MediClear; | ||
– | Wealth management cross sell initiative; and | ||
– | New margin lending facility systems for FirstChoice. |
• | We have continued to restructure our relationship with our IT providers with the execution this year of a new desktop agreement with EDS which will deliver savings and improved service levels to the Group; and |
• | We have continued to refine our more focused approach to Group-wide procurement – building on the progress we have made over the last three years. |
• | We are continuing to see a greater level of collaboration across the Group and we have better aligned the Group with the needs of our customers; |
• | Our people are seeing continued improvements in the organisation and this is being reflected in a number of ways, including an increased focus on customer service; |
• | We have increased our focus on our people with the introduction of a number of initiatives designed to enhance their well-being; and |
• | We have continued to support our community by making significant commitments to a range of initiatives including financial literacy, environmental partnerships and one-off assistance for communities in need of help. |
• | We have a number of investments in Asia with the most significant being our existing businesses in Indonesia and China. While these investments are still relatively small, they are all performing well and we continue to look for further opportunities to invest in these and other attractive Asian markets; | |
• | Our Funds Management business has grown rapidly since we acquired Colonial in 2000 and we believe that we have the expertise and the scale to continue to expand this business both locally and internationally. CFS Global Asset Management is looking at a wide range of opportunities to expand its business and during the year launched over 20 new funds including infrastructure funds to hold and manage (on behalf of investors) our interest in the recently acquired UK infrastructure company, AWG plc; |
• | Premium Business Services has a high level of expertise in its Global Markets Group and has used this to leverage product capabilities across a broad range of the Group’s existing customers base. It is also introducing innovative products and looking at how we might utilise existing expertise to take advantage of opportunities to grow in selective global markets; and |
• | We also recognise that there are significant opportunities to better develop our existing customer base and continue to focus on the opportunities that this presents to drive profitable growth. |
Full Year | Half Year | |||||||||||||||
Net Profit after | 30/06/07 | 30/06/06 | 30/06/07 | 31/12/06 | ||||||||||||
Income Tax | $M | $M | $M | $M | ||||||||||||
Statutory basis | 4,470 | 3,928 | 2,279 | 2,191 | ||||||||||||
Cash basis | 4,604 | 4,053 | 2,333 | 2,271 | ||||||||||||
Cash basis ex HK sale | 4,604 | 3,908 | 2,333 | 2,271 |
• | Solid growth in Banking income of 10% on the prior year, following growth in average interest earning assets of 15% to $316 billion and net interest margin contraction of 15 basis points (including 10 basis points of underlying margin contraction); |
• | Growth in Funds Under Administration of 17% to $177 billion supported by both strong underlying inflows and positive investment market returns; |
• | Growth in insurance premiums of 21% to $1,400 million and improved operating margins; |
• | Strong growth in Total operating income of 11% with expense growth of 7%. The expense growth is driven by ongoing reinvestment in our businesses through recruitment of front line staff and increased spend on strategic initiatives; and |
• | Continued stability in credit quality level across the portfolio. |
• | Significant increases in customer satisfaction scores; |
• | Streamlining and simplifying the operation of the branch network, empowering local decision makers and strengthening the linkage between performance and remuneration; |
• | Launch of CommBiz transactional banking service and the Local Business Banking Online networking platforms to further enhance service quality to business customers; and |
• | Early success of the Wealth Management cross-sell initiatives with a 15% increase in total referrals and a 30% increase in new General Insurance sales. |
(1) | Excluding the profit from the sale of the Hong Kong Insurance Business during the 2006 financial year. |
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/07 | 30/06/06 | Jun 07 vs | 30/06/07 | 31/12/06 | Jun 07 vs | |||||||||||||||||||
Group Performance Summary | $M | $M | Jun 06 % | $M | $M | Dec 06 % | ||||||||||||||||||
Net interest income | 7,036 | 6,514 | 8 | 3,551 | 3,485 | 2 | ||||||||||||||||||
Other banking income | 3,432 | 3,036 | 13 | 1,754 | 1,678 | 5 | ||||||||||||||||||
Total banking income | 10,468 | 9,550 | 10 | 5,305 | 5,163 | 3 | ||||||||||||||||||
Funds management income | 1,874 | 1,543 | 21 | 981 | 893 | 10 | ||||||||||||||||||
Insurance income | 817 | 742 | 10 | 435 | 382 | 14 | ||||||||||||||||||
Total operating income | 13,159 | 11,835 | 11 | 6,721 | 6,438 | 4 | ||||||||||||||||||
Shareholder investment returns | 149 | 101 | 48 | 64 | 85 | (25 | ) | |||||||||||||||||
Profit on sale of the Hong Kong Insurance Business | — | 145 | large | — | — | — | ||||||||||||||||||
Total income | 13,308 | 12,081 | 10 | 6,785 | 6,523 | 4 | ||||||||||||||||||
Operating expenses | 6,427 | 5,994 | (7 | ) | 3,283 | 3,144 | (4 | ) | ||||||||||||||||
Loan impairment expense | 434 | 398 | (9 | ) | 239 | 195 | (23 | ) | ||||||||||||||||
Net profit before income tax | 6,447 | 5,689 | 13 | 3,263 | 3,184 | 2 | ||||||||||||||||||
Corporate tax expense(1) | 1,816 | 1,605 | (13 | ) | 916 | 900 | (2 | ) | ||||||||||||||||
Minority interests(2) | 27 | 31 | 13 | 14 | 13 | (8 | ) | |||||||||||||||||
Net profit after income tax (“cash basis”) | 4,604 | 4,053 | 14 | 2,333 | 2,271 | 3 | ||||||||||||||||||
Defined benefit superannuation plan income/(expense) | 5 | (25 | ) | large | 1 | 4 | (75 | ) | ||||||||||||||||
Treasury shares valuation adjustment | (75 | ) | (100 | ) | 25 | (37 | ) | (38 | ) | 3 | ||||||||||||||
One-off AIFRS mismatches | (64 | ) | — | — | (18 | ) | (46 | ) | 61 | |||||||||||||||
Net profit after income tax (“statutory basis”) | 4,470 | 3,928 | 14 | 2,279 | 2,191 | 4 | ||||||||||||||||||
Represented by: | ||||||||||||||||||||||||
Banking | 3,763 | 3,227 | 17 | 1,896 | 1,867 | 2 | ||||||||||||||||||
Funds management | 492 | 400 | 23 | 260 | 232 | 12 | ||||||||||||||||||
Insurance | 253 | 215 | 18 | 142 | 111 | 28 | ||||||||||||||||||
Net profit after income tax (“underlying basis”) | 4,508 | 3,842 | 17 | 2,298 | 2,210 | 4 | ||||||||||||||||||
Shareholder investment returns after tax | 96 | 66 | 45 | 35 | 61 | (43 | ) | |||||||||||||||||
Cash net profit after tax excluding the sale of the Hong Kong Insurance Business | 4,604 | 3,908 | 18 | 2,333 | 2,271 | 3 | ||||||||||||||||||
Profit on sale of Hong Kong Insurance Business | — | 145 | large | — | — | — | ||||||||||||||||||
Net Profit after tax (“cash basis”) | 4,604 | 4,053 | 14 | 2,333 | 2,271 | 3 | ||||||||||||||||||
(1) | For purposes of presentation, Policyholder tax benefit and Policyholder tax expense components of corporate tax expense are shown on a net basis. | |
(2) | Minority interests include preference dividends paid to holders of preference shares in ASB Capital. |
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/07 | 30/06/06 | Jun 07 vs | 30/06/07 | 31/12/06 | Jun 07 vs | |||||||||||||||||||
Shareholder Summary | Jun 06 % | Dec 06 % | ||||||||||||||||||||||
Dividend per share – fully franked (cents) | 256 | 224 | 14 | 149 | 107 | 39 | ||||||||||||||||||
Dividend cover – cash (times) | 1.4 | 1.4 | n/a | 1.2 | 1.6 | n/a | ||||||||||||||||||
Earnings per share (cents) | ||||||||||||||||||||||||
Statutory – basic | 344.7 | 308.2 | 12 | 175.1 | 169.6 | 3 | ||||||||||||||||||
Cash basis – basic | 353.0 | 315.9 | 12 | 178.3 | 174.7 | 2 | ||||||||||||||||||
Cash basis – basic excluding the sale of Hong Kong Insurance Business | 353.0 | 304.6 | 16 | 178.3 | 174.7 | 2 | ||||||||||||||||||
Dividend payout ratio (%) | ||||||||||||||||||||||||
Statutory | 75.2 | 73.3 | 190bpts | 86.1 | 63.8 | large | ||||||||||||||||||
Cash basis | 73.0 | 71.0 | 200bpts | 84.1 | 61.5 | large | ||||||||||||||||||
Weighted avg no. of shares – statutory basic (M) | 1,281 | 1,275 | — | 1,286 | 1,276 | 1 | ||||||||||||||||||
Weighted avg no. of shares – cash basic (M)(1) | 1,289 | 1,283 | — | 1,293 | 1,284 | 1 | ||||||||||||||||||
Return on equity – cash (%) | 22.1 | 21.3 | 80bpts | 22.0 | 22.3 | (30)bpts |
(1) | Fully diluted EPS and weighted average number of shares (fully diluted) are disclosed in Note 4 to the Financial Statements. |
As at | ||||||||||||||||||||
30/06/07 | 31/12/06 | 30/06/06 | Jun 07 vs | Jun 07 vs | ||||||||||||||||
Balance Sheet Summary | $M | $M | $M | Dec 06 % | Jun 06 % | |||||||||||||||
Lending assets(1) | 304,100 | 286,814 | 266,096 | 6 | 14 | |||||||||||||||
Total assets | 425,139 | 397,261 | 369,103 | 7 | 15 | |||||||||||||||
Total liabilities | 400,695 | 374,774 | 347,760 | 7 | 15 | |||||||||||||||
Shareholders’ Equity | 24,444 | 22,487 | 21,343 | 9 | 15 | |||||||||||||||
Assets held and Funds Under Administration (FUA) | ||||||||||||||||||||
On Balance Sheet: | ||||||||||||||||||||
Banking assets | 397,093 | 367,250 | 340,254 | 8 | 17 | |||||||||||||||
Insurance Funds Under Administration | 19,814 | 21,040 | 20,792 | (6 | ) | (5 | ) | |||||||||||||
Other insurance and internal funds management assets | 8,232 | 8,971 | 8,057 | (8 | ) | 2 | ||||||||||||||
425,139 | 397,261 | 369,103 | 7 | 15 | ||||||||||||||||
Off Balance Sheet: | ||||||||||||||||||||
Funds Under Administration | 157,257 | 146,622 | 130,721 | 7 | 20 | |||||||||||||||
Total assets held and FUA | 582,396 | 543,883 | 499,824 | 7 | 17 | |||||||||||||||
(1) | Lending assets comprise Loans, advances, and other receivables (gross of provisions for impairment and excluding securitisation) and Bank acceptances of customers. |
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
Jun 07 vs | Jun 07 vs | |||||||||||||||||||||||
Key Performance Indicators | 30/06/07 | 30/06/06 | Jun 06 % | 30/06/07 | 31/12/06 | Dec 06 % | ||||||||||||||||||
Banking | ||||||||||||||||||||||||
Underlying Net Profit after tax ($M) | 3,763 | 3,227 | 17 | 1,896 | 1,867 | 2 | ||||||||||||||||||
Net interest margin (%) | 2.19 | 2.34 | (15)bpts | 2.16 | 2. 22 | (6)bpts | ||||||||||||||||||
Average interest earning assets ($M)(1) | 316,048 | 274,798 | 15 | 325,380 | 306,868 | 6 | ||||||||||||||||||
Average interest bearing liabilities ($M)(1) | 294,792 | 255,100 | 16 | 303,171 | 286,548 | 6 | ||||||||||||||||||
Expense to income (%) | 45.8 | 47.7 | 4 | 46.1 | 45. 6 | (1 | ) | |||||||||||||||||
Funds Management | ||||||||||||||||||||||||
Underlying Net profit after income tax ($M) | 492 | 400 | 23 | 260 | 232 | 12 | ||||||||||||||||||
Operating income to average Funds Under Administration (%) | 1.15 | 1.12 | 3bpts | 1.16 | 1. 13 | 3bpts | ||||||||||||||||||
Funds Under Administration – spot ($M) | 177,071 | 151,513 | 17 | 177,071 | 167,662 | 6 | ||||||||||||||||||
Expense to average FUA (%) | 0.71 | 0.71 | — | 0.72 | 0. 71 | (1 | ) | |||||||||||||||||
Insurance | ||||||||||||||||||||||||
Underlying Net profit after income tax ($M) | 253 | 215 | 18 | 142 | 111 | 28 | ||||||||||||||||||
Inforce premiums ($M) | 1,400 | 1,156 | 21 | 1,400 | 1,340 | 4 | ||||||||||||||||||
Expense to average inforce premiums (%) | 36.3 | 38.6 | 6 | 34.7 | 36. 2 | 4 | ||||||||||||||||||
Capital Adequacy | ||||||||||||||||||||||||
Tier One (%) | 7.14 | 7.56 | (42)bpts | 7.14 | 7. 06 | 8bpts | ||||||||||||||||||
Total (%) | 9.76 | 9.66 | 10bpts | 9.76 | 9. 78 | (2)bpts | ||||||||||||||||||
Adjusted Common Equity (%) | 4.79 | 4.50 | 29bpts | 4.79 | 4. 70 | 9bpts |
(1) | Average interest earning assets and average interest bearing liabilities have been adjusted to remove the impact of securitisation. |
Credit Ratings | Long term | Short term | Affirmed | |||
Fitch Ratings | AA | F1+ | Jun 07 | |||
Moody’s Investor Services | Aa1 | P-1 | Jun 07 | |||
Standards & Poor’s | AA | A-1+ | Jun 07 | |||
Important Dates for Shareholders | ||||
Full Year Results Announcement | 15 August 2007 | |||
Ex-Dividend Date | 20 August 2007 | |||
Record Date | 24 August 2007 | |||
Final Dividend Payment Date | 5 October 2007 | |||
Annual General Meeting | 7 November 2007 | |||
2008 Interim Results Date | 13 February 2008 | |||
(1) | 2004 is presented on a previous AGAAP basis; 2006 is presented excluding the profit from sale of the Hong Kong Insurance Business. |
• | Significant business lending volume growth of 19% since June 2006 to $91 billion; |
• | Solid volume growth in home loans, up 13% since June 2006 to $175 billion; |
• | Domestic deposit volume growth of 17% since June 2006 to $175 billion including the doubling of NetBank Saver balances which now total over $8 billion; |
• | Net interest margin decreased 15 basis points over the year, comprising 10 basis points of underlying margin contraction and five basis points due to the higher level of liquid assets held and AIFRS accounting volatility; |
• | Targeted investment in areas which will drive future profitability balanced by cost control in other areas, resulting in operating expenses increasing 5% on the prior year; and |
• | Continued stability in the credit quality across the portfolio. |
• | Asset Pricing & Mix impact of three basis points due to competitive pricing of home loans and growth in the lower yielding margin lending portfolio; and |
• | Cash Rate & Deposit Pricing related contraction of three basis points due to similar influences as described above. |
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/07 | 30/06/06 | Jun 07 vs | 30/06/07 | 31/12/06 | Jun 07 vs | |||||||||||||||||||
Key Performance Indicators | $M | $M | Jun 06 % | $M | $M | Dec 06 % | ||||||||||||||||||
Net interest income | 7,036 | 6,514 | 8 | 3,551 | 3,485 | 2 | ||||||||||||||||||
Other banking income | 3,432 | 3,036 | 13 | 1,754 | 1,678 | 5 | ||||||||||||||||||
Total Banking income | 10,468 | 9,550 | 10 | 5,305 | 5,163 | 3 | ||||||||||||||||||
Operating expenses | 4,797 | 4,558 | (5 | ) | 2,443 | 2,354 | (4 | ) | ||||||||||||||||
Loan impairment expense | 434 | 398 | (9 | ) | 239 | 195 | (23 | ) | ||||||||||||||||
Net profit before income tax | 5,237 | 4,594 | 14 | 2,623 | 2,614 | — | ||||||||||||||||||
Income tax expense | 1,447 | 1,339 | (8 | ) | 713 | 734 | 3 | |||||||||||||||||
Minority interests | 27 | 28 | 4 | 14 | 13 | (8 | ) | |||||||||||||||||
Net profit after income tax (“cash basis”) | 3,763 | 3,227 | 17 | 1,896 | 1,867 | 2 | ||||||||||||||||||
Net profit after income tax (“underlying basis”) | 3,763 | 3,227 | 17 | 1,896 | 1,867 | 2 | ||||||||||||||||||
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/07 | 30/06/06 | Jun 07 vs | 30/06/07 | 31/12/06 | Jun 07 | |||||||||||||||||||
Productivity and Other Measures | $M | $M | Jun 06 % | $M | $M | vs Dec 06% | ||||||||||||||||||
Net interest margin (%) | 2. 19 | 2.34 | (15)bpts | 2.16 | 2.22 | (6)bpts | ||||||||||||||||||
Expense to income (%) | 45. 8 | 47.7 | 4 | 46.1 | 45.6 | (1 | ) | |||||||||||||||||
Effective corporate tax rate (%) | 27. 6 | 29.1 | 150bpts | 27.2 | 28.1 | 90bpts |
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/07 | 30/06/06 | Jun 07 vs | 30/06/07 | 31/12/06 | Jun 07 vs | |||||||||||||||||||
Total Banking Net Profit after Tax (“Underlying Basis”) | $M | $M | Jun 06 % | $M | $M | Dec 06 % | ||||||||||||||||||
Australian Retail products | 1,840 | 1,678 | 10 | 928 | 912 | 2 | ||||||||||||||||||
Business, Corporate and Institutional products(1) | 1,529 | 1,236 | 24 | 767 | 762 | 1 | ||||||||||||||||||
Hedging and AIFRS volatility(2) | 2 | (41 | ) | large | 1 | 1 | — | |||||||||||||||||
Asia Pacific | 390 | 356 | 10 | 201 | 189 | 6 | ||||||||||||||||||
Hedging and AIFRS volatility(2) | 59 | 17 | large | 85 | (26 | ) | large | |||||||||||||||||
Other(2) | (57 | ) | (19 | ) | large | (86 | ) | 29 | large | |||||||||||||||
Total Banking Net profit after tax (“underlying basis”) | 3,763 | 3,227 | 17 | 1,896 | 1,867 | 2 | ||||||||||||||||||
(1) | During the current year certain Balance Sheet risk management operations have been merged within the Financial Markets product of the Business, Corporate and Institutional segment; and the methodology for overhead cost allocation between Banking segments has been refined. Prior periods have been restated on a consistent basis. | |
(2) | During the current half the impact of Hedging and AIFRS volatility has been separately disclosed within the Business, Corporate and Institutional and Asia Pacific segments. Prior periods have been restated on a consistent basis. |
Full Year | Half Year | |||||||||||||||
30/06/07 | 30/06/06 | 30/06/07 | 31/12/06 | |||||||||||||
$M | $M | $M | $M | |||||||||||||
Commissions | 1,729 | 1,635 | 870 | 859 | ||||||||||||
Lending fees | 896 | 800 | 479 | 417 | ||||||||||||
Trading income | 555 | 505 | 249 | 306 | ||||||||||||
Other income | 271 | 175 | 112 | 159 | ||||||||||||
3,451 | 3,115 | 1,710 | 1,741 | |||||||||||||
Non-trading derivatives | (19 | ) | (79 | ) | 44 | (63 | ) | |||||||||
Other banking income | 3,432 | 3,036 | 1,754 | 1,678 | ||||||||||||
• | Commissions: increased by 6% on the prior year to $1,729 million. The increase was driven by a 22% increase in CommSec brokerage volumes and increased volume of initial public offering activities; |
• | Lending fees: increased by 12% on the prior year to $896 million. The result was driven by an increase in lending volumes, particularly line fees related to the business and corporate lending portfolios; |
• | Trading income: increased 10% on the prior year to $555 million reflecting favourable market conditions; and |
• | Other income: increased $96 million on the prior year. The current year includes a $79 million gain on the sale of the Group’s share in Greater Energy Alliance Corporation Pty Limited (“Loy Yang”) and $58 million in relation to the sale of Mastercard shares. The prior year includes $32 million relating to the Mastercard initial public offering. The level of asset sales is not inconsistent with historic experience. | |
Other income in the second half decreased by $47 million to $112 million. After adjusting for the timing of Loy Yang, Mastercard and other property asset sales, other income was flat. |
• | Average salary increases of 4% reflecting the competitive domestic labour market and the effect of inflation on general expenses; |
• | Ongoing investment in front line staff across each of our key businesses, with staff numbers rising 3% over the year; |
• | Continued investment in various projects supporting the strategic priorities of the Group most notably the Business Banking and Global Markets growth initiatives, which were accelerated in the current half contributing to a $35 million half-on-half increase in investment spend; and |
• | Continued productivity improvements achieved through process simplification initiatives, including $100 million of cost savings in IT expenditure during the year. |
• | Stable arrears rates within the Group’s consumer lending portfolios; |
• | The high proportion of low risk home loans within the credit portfolio; and |
• | Risk ratings downgrades and specific provisions within the business lending portfolio. |
As At | ||||||||||||||||||||
30/06/07 | 31/12/06 | 30/06/06 | Jun 07 vs | Jun 07 vs | ||||||||||||||||
Total Banking Assets & Liabilities | $M | $M | $M | Dec 06 % | Jun 06 % | |||||||||||||||
Interest earning assets | ||||||||||||||||||||
Home loans including securitisation | 190,337 | 176,721 | 167,121 | 8 | 14 | |||||||||||||||
Less: securitisation | (15,633 | ) | (10,754 | ) | (12,607 | ) | 45 | 24 | ||||||||||||
Home loans excluding securitisation | 174,704 | 165,967 | 154,514 | 5 | 13 | |||||||||||||||
Personal | 20,074 | 18,237 | 17,228 | 10 | 17 | |||||||||||||||
Business and corporate | 90,601 | 84,215 | 76,044 | 8 | 19 | |||||||||||||||
Loans, advances and other receivables(1) | 285,379 | 268,419 | 247,786 | 6 | 15 | |||||||||||||||
Non-lending interest earning assets | 49,553 | 45,792 | 40,283 | 8 | 23 | |||||||||||||||
Total interest earning assets | 334,932 | 314,211 | 288,069 | 7 | 16 | |||||||||||||||
Other assets(2) | 62,161 | 53,039 | 52,185 | 17 | 19 | |||||||||||||||
Total assets | 397,093 | 367,250 | 340,254 | 8 | 17 | |||||||||||||||
Interest bearing liabilities | ||||||||||||||||||||
Transaction deposits | 41,915 | 36,070 | 35,771 | 16 | 17 | |||||||||||||||
Savings deposits | 49,975 | 47,380 | 42,729 | 5 | 17 | |||||||||||||||
Investment deposits | 76,856 | 72,188 | 67,364 | 6 | 14 | |||||||||||||||
Other demand deposits | 26,157 | 24,892 | 20,325 | 5 | 29 | |||||||||||||||
Total interest bearing deposits | 194,903 | 180,530 | 166,189 | 8 | 17 | |||||||||||||||
Deposits not bearing interest | 8,479 | 8,289 | 7,038 | 2 | 20 | |||||||||||||||
Deposits and other public borrowings | 203,382 | 188,819 | 173,227 | 8 | 17 | |||||||||||||||
Debt issues | 69,753 | 71,431 | 65,086 | (2 | ) | 7 | ||||||||||||||
Other interest bearing liabilities | 43,719 | 40,320 | 34,890 | 8 | 25 | |||||||||||||||
Total interest bearing liabilities | 308,375 | 292,281 | 266,165 | 6 | 16 | |||||||||||||||
Securitisation debt issues | 15,737 | 11,130 | 13,505 | 41 | 17 | |||||||||||||||
Non interest bearing liabilities(3) | 53,355 | 46,788 | 44,515 | 14 | 20 | |||||||||||||||
Total liabilities | 377,467 | 350,199 | 324,185 | 8 | 16 | |||||||||||||||
Provisions for Impairment | ||||||||||||||||||||
Collective provision | 1,034 | 1,040 | 1,046 | (1 | ) | (1 | ) | |||||||||||||
Individually assessed provisions | 199 | 171 | 171 | 16 | 16 | |||||||||||||||
Total provisions for loan impairment | 1,233 | 1,211 | 1,217 | 2 | 1 | |||||||||||||||
Other credit provisions(4) | 23 | 19 | 24 | 21 | (4 | ) | ||||||||||||||
Total provisions for impairment losses | 1,256 | 1,230 | 1,241 | 2 | 1 | |||||||||||||||
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
Jun 07 vs | Jun 07 vs | |||||||||||||||||||||||
Asset Quality | 30/06/07 | 30/06/06 | Jun 06 % | 30/06/07 | 31/12/06 | Dec 06 % | ||||||||||||||||||
Gross loans and acceptances ($M) | 321,653 | 280,282 | 15 | 321,653 | 299,085 | 8 | ||||||||||||||||||
Risk weighted assets ($M) | 245,347 | 216,438 | 13 | 245,347 | 234,569 | 5 | ||||||||||||||||||
Gross Impaired Assets ($M) | 421 | 326 | (29 | ) | 421 | 338 | (25 | ) | ||||||||||||||||
Net impaired assets ($M) | 222 | 155 | (43 | ) | 222 | 167 | (33 | ) | ||||||||||||||||
Collective provisions as a % of risk weighted assets | 0.42 | 0.48 | (6)bpts | 0.42 | 0.44 | (2)bpts | ||||||||||||||||||
Collective provisions as a % of gross loans and acceptances | 0.32 | 0.37 | (5)bpts | 0.32 | 0.35 | (3)bpts | ||||||||||||||||||
Individually assessed provisions for impairment as a % of gross impaired assets(5) | 23.8 | 24.5 | (70)bpts | 23.8 | 23.4 | 40bpts | ||||||||||||||||||
Loan impairment expense as a % average of risk weighted assets annualised(6) | 0.19 | 0.20 | 1bpt | 0.20 | 0.17 | (3)bpts | ||||||||||||||||||
Loan impairment expense as a % of gross loans and acceptances annualised | 0.13 | 0.14 | 1bpt | 0.15 | 0.13 | (2)bpts |
(1) | Gross of provisions for impairment which are included in Other assets. | |
(2) | Other assets include bank acceptances of customers, derivative assets, provisions for impairment and securitisation assets. | |
(3) | Non interest bearing liabilities include derivative liabilities. | |
(4) | Included in Other provisions. | |
(5) | Bulk portfolio provisions of $99 million at 30 June 2007 ($92 million at 31 December 2006 and $91 million at 30 June 2006) to cover unsecured personal loans and credit card lending have been deducted from individually assessed provisions to calculate this ratio. These provisions are deducted due to the exclusion of the related assets from gross impaired assets. The related asset amounts are instead included in the 90 days or more past due disclosure. | |
(6) | Average of opening and closing balances. |
• | Investors taking advantage of superannuation legislation changes which contributed to $9.2 billion FirstChoice net flows for the year ended 30 June 2007. With over $39 billion in funds under administration, FirstChoice has experienced growth of 51% in the last 12 months; and |
• | Solid institutional flows generated by the CFS Global Asset Management business. |
• | CFS Global Asset Management ongoing expansion into alternative asset classes and developing infrastructure capabilities both domestically and in Europe; |
• | CFS Global Asset Management is the joint lead partner in a consortium which acquired AWG plc, an infrastructure company which provides water services in the UK. As at 30 June 2007 13% of the Group’s interest in AWG plc had been sold down to infrastructure funds; |
• | CFS Global Asset Management, through its joint venture First State Media Group, acquired a major music copyright catalogue in May 2007. The purchase will be the foundation asset for a media focused investment fund to be launched later in the calendar year; |
• | CFS Global Asset Management launched the First State Cinda Leaders Growth Equity Fund with joint venture partners China Cinda Asset Management; |
• | New products launched by CFS during the year include a fully integrated margin lending solution, and 12 new investment options on the FirstChoice platform; |
• | Commonwealth Financial Planner numbers increased during the year by 68 to 702. The first adviser training program was completed in early 2007 with 42 graduates and the second program commenced in February 2007 with 27 entrants. During the year referrals increased by 15%; and |
• | CFS Global Asset Management incubated or launched in excess of 18 new products globally during the year, including long/short funds, new fixed interest products, Asian and Global Property Securities products for international distribution, and a range of institutional multi-asset products. |
• | Investment in the international expansion of the CFS Global Asset Management business; |
• | Establishment of competitive remuneration schemes in the asset management business to attract and retain high quality talent; |
• | Increased spend on strategic projects including the Wealth Management cross-sell initiative and new product development (eg. margin lending facility); and |
• | Investment on system simplification initiatives. |
30/06/07 | 31/12/06 | 30/06/06 | ||||||||||
Australian retail(1) (2) | 14.2 | 15.4 | 15.4 | |||||||||
New Zealand retail(1) | 15.8 | 16.1 | 16.0 | |||||||||
Firstchoice platform(1) (2) | 8.5 | 8.2 | 7.7 |
(1) | Prior period comparatives have been restated. | |
(2) | As at 30 March 2007. |
�� | ||||||||||||||||||||||||
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/07 | 30/06/06 | Jun 07 vs | 30/06/07 | 31/12/06 | Jun 07 vs | |||||||||||||||||||
Key Performance Indicators | $M | $M | Jun 06 % | $M | $M | Dec 06 % | ||||||||||||||||||
Operating income – external | 1,874 | 1,543 | 21 | 981 | 893 | 10 | ||||||||||||||||||
Operating income – internal | 9 | 9 | — | 4 | 5 | (20 | ) | |||||||||||||||||
Total operating income | 1,883 | 1,552 | 21 | 985 | 898 | 10 | ||||||||||||||||||
Shareholder investment returns | 14 | 14 | — | 10 | 4 | large | ||||||||||||||||||
Funds management income | 1,897 | 1,566 | 21 | 995 | 902 | 10 | ||||||||||||||||||
Volume expense | 285 | 224 | (27 | ) | 141 | 144 | 2 | |||||||||||||||||
Operating expenses | 890 | 765 | (16 | ) | 467 | 423 | (10 | ) | ||||||||||||||||
Total operating expenses | 1,175 | 989 | (19 | ) | 608 | 567 | (7 | ) | ||||||||||||||||
Net profit before income tax (“cash basis”) | 722 | 577 | 25 | 387 | 335 | 16 | ||||||||||||||||||
Net profit before income tax (“underlying basis”)(1) | 708 | 563 | 26 | 377 | 331 | 14 | ||||||||||||||||||
Corporate tax expense(2) | 232 | 164 | (41 | ) | 132 | 100 | (32 | ) | ||||||||||||||||
Minority interests | — | 3 | large | — | — | — | ||||||||||||||||||
Net profit after income tax (“cash basis”) | 490 | 410 | 20 | 255 | 235 | 9 | ||||||||||||||||||
Net profit after income tax (“underlying basis”)(1) | 492 | 400 | 23 | 260 | 232 | 12 | ||||||||||||||||||
(1) | Underlying basis excludes Shareholder investment returns. | |
(2) | For purpose of presentation, Policyholder tax benefit and Policyholder tax expense are shown on a net basis (30 June 2007: $175 million and 30 June 2006: $193 million). |
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/07 | 30/06/06 | Jun 07 vs | 30/06/07 | 31/12/06 | Jun 07 vs | |||||||||||||||||||
Funds Under Administration | $M | $M | June 06 % | $M | $M | Dec 06 % | ||||||||||||||||||
Funds Under Administration – average | 164,404 | 139,082 | 18 | 171,264 | 158,010 | 8 | ||||||||||||||||||
Funds Under Administration – spot | 177,071 | 151,513 | 17 | 177,071 | 167,662 | 6 | ||||||||||||||||||
Funds under management – spot | 139,685 | 118,682 | 18 | 139,685 | 128,312 | 9 | ||||||||||||||||||
Net funds flows (excluding Avanteos) | 7,126 | 5,287 | 35 | 5,744 | 1,382 | large | ||||||||||||||||||
Net funds flows | 1,763 | 10,830 | (84 | ) | (313 | ) | 2,076 | large |
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/07 | 30/06/06 | Jun 07 vs | 30/06/07 | 31/12/06 | Jun 07 vs | |||||||||||||||||||
Productivity and Other Measures | % | % | Jun 06 % | % | % | Dec 06 % | ||||||||||||||||||
Operating income to average Funds Under Administration | 1.15 | 1.12 | 3bpts | 1.16 | 1.13 | 3bpts | ||||||||||||||||||
Total expenses to average Funds Under Administration | 0.71 | 0.71 | — | 0.72 | 0.71 | (1 | ) | |||||||||||||||||
Operating expenses to net operating income (total operating income less volume expenses) | 55.7 | 57.6 | 3 | 55.3 | 56.1 | 1 | ||||||||||||||||||
Effective corporate tax rate | 32.1 | 28.4 | (370)bpts | 34.1 | 29.9 | (420)bpts | ||||||||||||||||||
• | Solid inforce premium growth in Australia and New Zealand; |
• | Positive claims experience; and |
• | Increased investment in the business. |
• | Inforce premium growth of 20%, reflecting strong sales volumes and progress of the cross-sell initiative; |
• | Improvement in planned life margins and operating margins on the prior year; |
• | Good claims experience; and |
• | Strong Shareholder investment returns. |
• | A significant increase in new business over the year particularly in Group Life Risk; |
• | CommInsure increased its Total risk market share to 14.2% an increase of one percentage point since 30 June 2006; |
• | The introduction of 130 Branch Insurance Representatives as part of the cross-sell initiative positively impacting on General Insurance sales (30% increase in new business sales); |
• | Ongoing simplification and rationalisation of systems and processes; |
• | Launch of online quoting tool for planners aimed at reducing the time and complexity of insurance and annuity quotes to improve conversion rates; and |
• | Continued good claims management. |
• | Market leading growth in new business sales with Sovereign capturing 33.8% of new business sales market share over the year compared to 32.7% in the prior year; |
• | A continuation of positive investment returns; |
• | Low lapse rates on existing business; offset by |
• | A deterioration in claims experience from 2006 with a higher incidence of disability and term life claims. |
• | Increased spend on strategic projects including the Wealth Management cross-selling initiatives; |
• | Introduction of Branch Insurance Representatives into selected Bank branches; |
• | Product development across Life and General Insurance lines; |
• | Investment on system migration and simplification to further reduce the number of insurance systems used and reduce ongoing costs; |
• | Development costs in preparation for the launch of compulsory savings in New Zealand under the KiwiSaver program; offset by |
• | Reduction in expenses since the sale of the Hong Kong Insurance Business. |
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/07 | 30/06/06 | Jun 07 vs | 30/06/07 | 31/12/06 | Jun 07 vs | |||||||||||||||||||
Key Performance Indicators | $M | $M(4) | Jun 06 % | $M | $M | Dec 06 % | ||||||||||||||||||
Insurance | ||||||||||||||||||||||||
Life insurance operating income | 745 | 669 | 11 | 406 | 339 | 20 | ||||||||||||||||||
General insurance operating income | 72 | 73 | (1 | ) | 29 | 43 | (33 | ) | ||||||||||||||||
Total operating income | 817 | 742 | 10 | 435 | 382 | 14 | ||||||||||||||||||
Shareholder investment returns | 135 | 87 | 55 | 54 | 81 | (33 | ) | |||||||||||||||||
Profit on sale of the Hong Kong Insurance Business | — | 145 | — | — | — | — | ||||||||||||||||||
Total insurance income | 952 | 974 | (2 | ) | 489 | 463 | 6 | |||||||||||||||||
Volume expense | 182 | 181 | (1 | ) | 93 | 89 | (4 | ) | ||||||||||||||||
Operating expenses(1) | 282 | 275 | (3 | ) | 143 | 139 | (3 | ) | ||||||||||||||||
Total expenses | 464 | 456 | (2 | ) | 236 | 228 | (4 | ) | ||||||||||||||||
Net profit before income tax | 488 | 518 | (6 | ) | 253 | 235 | 8 | |||||||||||||||||
Corporate tax expense(2) | 137 | 102 | (34 | ) | 71 | 66 | (8 | ) | ||||||||||||||||
Net profit after income tax (“cash basis”) | 351 | 416 | (16 | ) | 182 | 169 | 8 | |||||||||||||||||
Net profit after income tax (“underlying basis”)(3) | 253 | 215 | 18 | 142 | 111 | 28 | ||||||||||||||||||
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/07 | 30/06/06 | Jun 07 vs | 30/06/07 | 31/12/06 | Jun 07 vs | |||||||||||||||||||
Productivity and Other Measures | % | %(4) | Jun 06 % | % | % | Dec 06 % | ||||||||||||||||||
Operating income to average inforce premiums | 63. 9 | 62. 9 | 2 | 64. 0 | 60. 7 | 5 | ||||||||||||||||||
Expenses to average inforce premiums | 36. 3 | 38. 6 | 6 | 34. 7 | 36. 2 | 4 | ||||||||||||||||||
Effective corporate tax rate excluding impact of profit on sale of Hong Kong Insurance Business | 28. 1 | 27. 3 | (80)bpts | 28. 1 | 28. 1 | — | ||||||||||||||||||
Full Year Ended | Half Year Ended | |||||||||||||||||||||||
30/06/07 | 30/06/06 | Jun 07 vs | 30/06/07 | 31/12/06 | Jun 07 vs | |||||||||||||||||||
Sources of Profit from Insurance Activities | $M | $M(4) | Jun 06 % | $M | $M | Dec 06 % | ||||||||||||||||||
The Margin on Services profit from ordinary activities after income tax is represented by: | ||||||||||||||||||||||||
Planned profit margins | 184 | 146 | 26 | 90 | 94 | (4 | ) | |||||||||||||||||
Experience variations | 56 | 48 | 17 | 49 | 7 | large | ||||||||||||||||||
General insurance operating margins | 13 | 21 | (38 | ) | 3 | 10 | (70 | ) | ||||||||||||||||
Operating margins | 253 | 215 | 18 | 142 | 111 | 28 | ||||||||||||||||||
After tax Shareholder investment returns | 98 | 56 | 75 | 40 | 58 | (31 | ) | |||||||||||||||||
Profit on sale of the Hong Kong Insurance Business | — | 145 | — | — | — | — | ||||||||||||||||||
Net profit after income tax (“cash basis”) | 351 | 416 | (16 | ) | 182 | 169 | 8 | |||||||||||||||||
(1) | Operating expenses include $9 million internal expenses relating to the asset management of Shareholder funds (30 June 2006: $9 million). | |
(2) | For purpose of presentation, Policyholder tax benefit and Policyholder tax expense components of corporate tax expense are shown on a net basis (30 June 2007: $91 million, 30 June 2006: $138 million). | |
(3) | Underlying basis excludes Shareholder investment returns and the profit on the sale of the Hong Kong Insurance Business. | |
(4) | Includes impact of the operating performance of the Hong Kong Insurance Business until its sale in October 2005. |
Full Year Ended | ||||||||||||||||||||||||||||||||
Australia | New Zealand | Asia | Total | |||||||||||||||||||||||||||||
Net Profit after Income Tax | 30/06/07 | 30/06/06 | 30/06/07 | 30/06/06 | 30/06/07 | 30/06/06 | 30/06/07 | 30/06/06 | ||||||||||||||||||||||||
(“cash basis”) | $M | $M | $M | $M | $M | $M | $M | $M | ||||||||||||||||||||||||
Operating margins | 160 | 125 | 88 | 77 | 5 | 13 | 253 | 215 | ||||||||||||||||||||||||
After tax Shareholder investment returns | 74 | 56 | 17 | 17 | 7 | (17 | ) | 98 | 56 | |||||||||||||||||||||||
Profit on sale of Hong Kong Insurance Business | — | — | — | — | — | 145 | — | 145 | ||||||||||||||||||||||||
Net profit after income tax | 234 | 181 | 105 | 94 | 12 | 141 | 351 | 416 | ||||||||||||||||||||||||
Half Year Ended | ||||||||||||||||||||||||||||||||
Australia | New Zealand | Asia | Total | |||||||||||||||||||||||||||||
Net Profit after Income Tax | 30/06/07 | 31/12/06 | 30/06/07 | 31/12/06 | 30/06/07 | 31/12/06 | 30/06/07 | 31/12/06 | ||||||||||||||||||||||||
("cash basis") | $M | $M | $M | $M | $M | $M | $M | $M | ||||||||||||||||||||||||
Operating margins | 92 | 68 | 47 | 41 | 3 | 2 | 142 | 111 | ||||||||||||||||||||||||
After tax Shareholder investment returns | 27 | 47 | 8 | 9 | 5 | 2 | 40 | 58 | ||||||||||||||||||||||||
Net profit after income tax | 119 | 115 | 55 | 50 | 8 | 4 | 182 | 169 | ||||||||||||||||||||||||
Date of Ceasing | ||||||
Director | Company | Date Appointed | (if applicable) | |||
J M Schubert | BHP Biliton Limited | 01/06/2000 | ||||
BHP Biliton Plc | 29/06/2001 | |||||
Qantas Limited | 23/10/2000 | |||||
Worley Group Limited | 28/11/2002 | 28/02/2005 | ||||
R J Norris | Air New Zealand Limited | 18/02/2002 | 30/08/2005 | |||
Fletcher Building Limited | 17/04/2001 | 09/08/2005 | ||||
R J Clairs | David Jones Limited | 22/02/1999 | ||||
Cellnet Group Limited | 01/07/2004 | |||||
A B Daniels | AGL Energy Limited | 04/08/1999 | 18/10/2005 | |||
C R Galbraith | OneSteel Limited | 25/10/2000 | ||||
GasNet Australia Group | 17/12/2001 | 10/11/2006 | ||||
S C H Kay | Brambles Industries Limited | 01/06/2006 | ||||
Symbion Health Limited | 28/09/2001 | 02/03/2007 | ||||
W G Kent | West Australian Newspaper Holdings Limited | 02/02/1998 | 01/11/2006 | |||
Coventry Group Limited | 01/07/2001 | 06/11/2006 | ||||
Perpetual Trustees Australia Limited (Group) | 01/05/1998 | 31/07/2005 | ||||
F D Ryan | Australian Foundation Investment Company Limited | 08/08/2001 | ||||
F J Swan | Foster’s Group Limited | 26/08/1996 | ||||
National Foods Limited | 11/03/1997 | 30/06/2005 | ||||
Southcorp Limited | 26/05/2005 | 29/07/2005 | ||||
D J Turner | Brambles Limited | 21/03/2006 | ||||
B K Ward | Lion Nathan Limited | 20/02/2003 | ||||
Multiplex Group | 26/10/2003 | |||||
Allco Finance Group Limited | 29/04/2005 | |||||
No. of Meetings | No. of Meetings | |||||||
Director | Held(1) | Attended(2) | ||||||
J M Schubert | 12 | 12 | ||||||
R J Norris | 12 | 12 | ||||||
R J Clairs | 12 | 12 | ||||||
C R Galbraith | 12 | 12 | ||||||
S C H Kay | 12 | 12 | ||||||
W G Kent | 12 | 12 | ||||||
F D Ryan | 12 | 11 | ||||||
F J Swan | 12 | 11 | ||||||
D J Turner | 12 | 12 | ||||||
J S Hemstritch | 8 | 8 | ||||||
H H Young | 4 | 4 | ||||||
J A Anderson | 3 | 3 | ||||||
A B Daniels | 6 | 6 | ||||||
B K Ward | 6 | 6 | ||||||
(1) | The number of meetings held during the time the Director was a member of the Board. | |
(2) | Ms Hemstritch was appointed effective 9 October 2006. Mr Young was appointed effective 13 February 2007. Sir John was appointed effective 12 March 2007. Mr Daniels and Ms Ward retired 3 November 2006. |
People & Remuneration | ||||||||||||||||||||||||
Risk Committee | Audit Committee | Committee | ||||||||||||||||||||||
No. of Meetings | No. of Meetings | No. of Meetings | No. of Meetings | No. of Meetings | No. of Meetings | |||||||||||||||||||
Director | Held(1) | Attended | Held(1) | Attended | Held(1) | Attended | ||||||||||||||||||
J M Schubert | 6 | 6 | 8 | 8 | ||||||||||||||||||||
R J Norris | 7 | 7 | ||||||||||||||||||||||
R J Clairs | 2 | 2 | 8 | 8 | ||||||||||||||||||||
C R Galbraith | 2 | 2 | 8 | 8 | ||||||||||||||||||||
S C H Kay | 2 | 2 | 5 | 5 | 8 | 8 | ||||||||||||||||||
W G Kent | 7 | 7 | 8 | 8 | ||||||||||||||||||||
F D Ryan | 7 | 7 | 8 | 8 | ||||||||||||||||||||
F J Swan | 7 | 7 | 5 | 5 | ||||||||||||||||||||
D J Turner | 7 | 7 | ||||||||||||||||||||||
J S Hemstritch | 1 | 1 | 5 | 5 | ||||||||||||||||||||
H H Young | 2 | 2 | ||||||||||||||||||||||
J A Anderson | 2 | 2 | ||||||||||||||||||||||
A B Daniels | 2 | 2 | 3 | 3 | ||||||||||||||||||||
B K Ward | 2 | 2 | 3 | 3 | ||||||||||||||||||||
Board Performance & Renewal | ||||||||
Committee | ||||||||
No. of Meetings | No. of Meetings | |||||||
Director | Held(1) | Attended | ||||||
J M Schubert | 8 | 8 | ||||||
C R Galbraith | 8 | 8 | ||||||
F J Swan | 8 | 8 | ||||||
(1) | The number of meetings held during the time the Director was a member of the relevant committee. |
• | As declared in the 30 June 2006 Annual Report, a fully franked final dividend of 130 cents per share amounting to $1,668 million was paid on 5 October 2006. The payment comprised cash disbursements of $1,368 million with $300 million being reinvested by participants through the Dividend Reinvestment Plan; and |
• | In respect of the year to 30 June 2007, a fully franked interim dividend of 107 cents per share amounting to $1,380 million was paid on 5 April 2007. The payment comprised cash disbursements of $862 million with $518 million being reinvested by participants through the Dividend Reinvestment Plan. |
• | The continued utilisation of CommSee, the Group’s market-leading customer information and management system, as a central element of sales and service processes; | |
• | The continued revitalisation of the branch network, including the refurbishment of existing sites, the opening of six new branches and the introduction of extended Saturday trading at 65 of the busiest branches; | |
• | Improvements to the product range as illustrated by the awarding of five star ratings* to many of the Bank’s deposit accounts and credit card products; (*Source: Cannex) | |
• | Opening of eight new Business Banking Centres and recruitment of 72 new sales people in the first year of a three year expansion program, targeting 25 new sites and 270 new sales people in total by the end of the third year; | |
• | Launch of 24 hour, 7 days per week, 365 days per year remote customer service centre for local business customers supported by a new team of 78 Local Business Banking Associates. Local Business Banking Online was also launched, providing new ways for our customers to interact with us and with each other; and | |
• | Introduction of 130 Branch Insurance Representatives as part of the cross-sell initiative positively impacting on General Insurance sales (30% increase in new business sales). |
Key Terms | 25 | |||
Introduction | 26 | |||
Remuneration Philosophy | 26 | |||
People & Remuneration Committee | 26 | |||
Remuneration for the Year Ended 30 June 2007 | 27 | |||
Remuneration Mix | 27 | |||
Fixed Remuneration | 27 | |||
Short Term Incentive (STI) | 27 | |||
Long Term Incentive (LTI) | 28 | |||
Equity Reward Plan (ERP) and Equity Reward (Performance Unit) Plan (ERPUP) Modification | 29 | |||
Group Performance for the Year Ended 30 June 2007 | 30 | |||
Short Term Performance | 30 | |||
Summary of Group Performance | 30 | |||
Long Term Performance | 31 | |||
Enhanced Remuneration Framework from 1 July 2007 | 32 | |||
Objectives | 32 | |||
Outcomes | 32 | |||
Key Drivers | 32 | |||
STI Enhancements | 32 | |||
LTI Enhancements | 33 | |||
Benefits for Key Stakeholders | 33 | |||
New Variable Remuneration Life Cycle – Year Ended 30 June 2008 | 34 | |||
Directors’ Remuneration | 35 | |||
Managing Director and CEO | 35 | |||
Non-Executive Directors | 35 | |||
Remuneration of Key Management Personnel and Other Executives | 37 | |||
Remuneration of Directors | 38 | |||
Remuneration of Executives | 39 | |||
Termination Arrangements | 40 | |||
STI Allocations | 41 | |||
LTI Allocations | 41 | |||
Equity Holdings of Key Management Personnel and Other Executives | 42 | |||
Shareholdings | 42 | |||
Share Trading Policy | 42 | |||
Shares Held by Executives | 43 | |||
Option Holdings | 44 | |||
Shares Vested | 44 | |||
Total Loans | 45 | |||
Individual Loans | 45 | |||
Terms and Conditions of Loans | 46 | |||
Other Transactions | 46 |
Term | Definition | |
Australian Equivalents to International Financial Reporting Standards (AIFRS) | The Australian equivalent to International Financial Reporting Standards (AIFRS) adopted by the Group from 1 July 2005. | |
Australian Generally Accepted Accounting Principles (AGAAP) | The financial reporting standards adopted by the Group up to and including the year ended 30 June 2005. | |
Base Remuneration | Cash and non-cash remuneration paid regularly with no performance conditions. Calculated on a total cost basis and includes any Fringe Benefits Tax related to Salary Packaging. | |
Board | The Board of Directors of the Bank. | |
Committee | The People & Remuneration Committee of the Board. | |
Earnings Per Share (EPS) | The portion of a company’s net profit after tax allocated to each outstanding ordinary share. | |
Equity Reward (Performance Units) Plan (ERPUP) | A cash-based Equity Reward Plan (see below) replicator scheme where grants are delivered in the form of Performance Units. | |
Equity Reward Plan (ERP) | The Group’s long term incentive plan in place for grants made up to and during the year ended 30 June 2007. | |
Fixed Remuneration | Consists of Base Remuneration plus employer contributions to superannuation. For further details please refer to page 27. | |
Group | Commonwealth Bank of Australia and its subsidiaries. | |
Group Leadership Rights Plan (GLRP) | The Group’s long term incentive plan to apply from 1 July 2007 for the CEO and Group Executives. | |
International Financial Reporting Standards (IFRS) | Reporting standards which have been adopted by the International Accounting Standards Board (IASB), an independent, international organisation supported by the professional accountancy bodies. The IASB objective is to achieve uniformity and transparency in the accounting principles used by businesses and other organisations for financial reporting globally. | |
Key Management Personnel | Persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any Director (whether executive or otherwise) of that entity. | |
Long Term Incentive (LTI) | Grants to participating executives of ordinary shares in the Bank that vest if, and to the extent that, a performance hurdle is met over at least a three year period. For further details please refer to page 28. | |
NPAT | Net profit after tax. | |
Options | A right to acquire a Bank share on payment of an exercise price if relevant performance hurdles are met. | |
Other Executives | Those executives who are not Key Management Personnel but are amongst the “Company Executives” or “Group Executives” as defined by the Corporations Act 2001 and for whom disclosure is required in accordance with section 300A(1)(c) of the Corporations Act 2001. | |
Peer Group | The group of competitors that the Group is compared to in order to determine if the performance hurdle is met under the ERP and ERPUP. | |
PACC | Net profit after capital charge. | |
Remuneration | All forms of consideration paid, payable or provided by the Group, or on behalf of the Group, in exchange for services rendered to the Group. In reading this report, the term “remuneration” means the same as the term “compensation” for the purposes of the Corporations Act 2001 and the accounting standard AASB124. | |
Remuneration Mix | The weighting of each component of remuneration (Fixed Remuneration, STI and LTI) for each employee group. | |
Reward Shares | Shares in the Bank granted under the Equity Reward Plan and subject to a performance hurdle. | |
Salary Packaging | An arrangement where an employee agrees to forego part of his or her cash component of Base Remuneration in return for non-cash benefits of a similar value. | |
Short Term Incentive (STI) | Remuneration paid with direct reference to the individual’s performance over the preceding financial year. For further details please refer to page 27. | |
STI Deferral | Withholding a portion of STIs for later payment. For STI payments made for the 2007 financial year, a portion of STI is withheld for one year and paid in cash for the CEO, executives who (in a reporting sense) are no more than two levels removed from the CEO and some other executives. For further details please refer to page 27. | |
Total Shareholder Return (TSR) | Calculated by combining the reinvestment of dividends and the movement in the Bank’s share price and utilised as a performance hurdle for the ERP and ERPUP. | |
• | To motivate employees to produce superior performance in achieving the Group’s vision; |
• | To be transparent, and to be simple to understand, administer and communicate; |
• | To be competitive; and |
• | To be flexible enough to ensure that the remuneration arrangements for specific roles can reflect the external market. |
• | Mr Clairs (Chairman); |
• | Ms Hemstritch (from 9 October 2006); |
• | Ms Kay; and |
• | Dr Schubert. |
• | Fixed Remuneration; | |
• | Short Term Incentive (STI); and | |
• | Long Term Incentive (LTI). |
• | 50% as an immediate cash payment; and | |
• | 50% paid as cash, deferred for one year, plus interest on the deferred amount. Generally, the employee will need to remain in employment with the Group up to the end of the deferral period to receive this portion. |
Year of | Expiry date | Status | ||||||
Grant | Performance Period | Retesting | if unvested | as at 30 June 2007 | ||||
2002 | Aug 2002 to Oct 2005 | Every 6 months to Oct 2007 | 2 Oct 2007 | 50% vested | ||||
2003 | Aug 2003 to Oct 2006 | Every 6 months to Oct 2008 | 1 Oct 2008 | 100% vested | ||||
2004 | Sept 2004 to Sept 2007 | Every 6 months to Sept 2009 | 23 Sept 2009 | 78th percentile | ||||
2005 | July 2005 to July 2008 | Every 6 months to July 2010 | 14 July 2010 | 82nd percentile | ||||
2006 | July 2006 to July 2009 | Once only in July 2010, if necessary | 15 July 2010 | 80th percentile | ||||
Years of Grant | Vesting Scale | |
2002, 2003, 2004 & 2005 | <50th percentile = Nil Shares | |
50th – 67th percentile = 50% - 75% of shares | ||
68th – 75th percentile = 76% - 100% of shares | ||
2006 | <51st percentile = Nil Shares | |
51st – 75th percentile = 50% - 100% of shares | ||
Adelaide Bank | Macquarie Bank | |
AMP | National Australia Bank | |
ANZ Group | QBE insurance | |
AXA | St George | |
Bank of Queensland | Suncorp-Metway | |
Bendigo Bank | Westpac Banking Group | |
IAG | ||
Year of grant | Old Methodology | New Methodology | ||||||
Performance | Vesting | Performance | Vesting | |||||
2002 | 46th percentile | Nil | 60th percentile | 50% vesting | ||||
2003 | 68th percentile | 78% vesting | 77th percentile | 100% vesting | ||||
2002 grant – pre | 2002 grant – post | 2003 grant – pre | 2003 grant – post | |||||||||||||
ERP Shares | modification | modification(1) | modification | modification(2) | ||||||||||||
No. shares outstanding | 148,700 | 148,700 | 194,900 | 194,900 | ||||||||||||
Value | $ | 4,801,153 | $ | 7,109,347 | $ | 7,862,266 | $ | 9,318,169 | ||||||||
Expiry date | 2 Oct 2007 | 2 Oct 2006 | 1 Oct 2008 | 1 Oct 2006 | ||||||||||||
(1) | 50% of the 2002 grant vested in November 2006 with the remainder lapsing. | |
(2) | 100% of the 2003 grant vested in November 2006. |
2002 grant – pre | 2002 grant – post | 2003 grant – pre | 2003 grant – post | |||||||||||||
ERPUP Performance Units | modification | modification(1) | modification | modification(2) | ||||||||||||
No. units outstanding | 5,400 | 5,400 | 10,500 | 10,500 | ||||||||||||
Value | $ | 162,486 | $ | 258,174 | $ | 207,480 | $ | 502,005 | ||||||||
Expiry date | 2 Oct 2007 | 2 Oct 2006 | 1 Oct 2008 | 1 Oct 2006 | ||||||||||||
2004 ERP – pre | 2004 ERPUP – pre | 2005 ERP – pre | 2005 ERPUP – pre | |||||||||||||
ERP Share/ERPUP | modification and post | modification and post | modification and post | modification and post | ||||||||||||
Performance Units | modification | modification | modification | modification | ||||||||||||
No. units outstanding | 211,700 | 14,000 | 342,388 | 14,000 | ||||||||||||
Value | $ | 5,421,637 | $ | 358,540 | $ | 6,738,196 | $ | 275,520 | ||||||||
Expiry date | 23 September 2009 | 23 September 2009 | 14 July 2010 | 15 July 2010 | ||||||||||||
• | Customer Service; | |
• | Business Banking; | |
• | Technology and Operational Excellence; | |
• | Trust and Team Spirit; and | |
• | Profitable Growth. |
Strategic Priorities | Commentary | |
Customer Service | The Group’s vision is ‘to be Australia’s finest financial services organisation through excelling in customer service’. The Group has made significant progress on this strategic priority including investing in front line staff, adding over 1,000 new front line roles in the 2007 financial year. In addition to the opening of new branches in strategic locations, 65 branches are now open for Saturday trading, and the hours of other branches have been extended to better meet the needs of our customers. | |
The Group has a more competitive product portfolio which is now being widely recognised, receiving Money magazine’s “Best of the Best” 2007 awards for eight retail products, and seven Cannex five star awards being earned by deposit and credit card products. | ||
Customer complaints have fallen 40% in the last 12 months, and the Group is also seeing an improvement in customer satisfaction scores, with independent Roy Morgan survey results reaching ten year highs and the Group achieving the second highest improvement of the other major banks over the 2007 financial year. | ||
Business Banking | There has been pleasing progress on the Business Banking strategic initiative. During the year, the Group made significant progress in increasing the presence of business bankers in branches with 135 business bankers now recruited. Rebuilding of the business banking footprint continues with eight new business banking centres opened in this financial year. | |
In February 2007, the Bank introduced a new service model in Local Business Banking with the launch of a 24/7 remote customer service centre and a networking platform for small business customers. In addition, in May 2007, Agriline, a new purpose built telephone based business centre was opened. This service is designed primarily for smaller Agribusiness customers, but it also provides an additional layer of service for larger customers. | ||
CommBiz, the Bank’s new, state of the art, internet based banking channel has been rolled out and over 10,000 customers have been successfully migrated from legacy systems. | ||
Technology & Operational Excellence | The Group has continued to invest heavily in technology and operational excellence. Initiatives in this area have focused on delivering greater efficiency across the Group as well as implementing technology solutions to increase competitive leverage through the introduction of innovative processes and systems. Notable achievements for the year include more than $100 million of efficiency savings across EIT, improvements in systems stability and disaster recovery capabilities, and the delivery of a significant number of technology projects to improve customer service and operational efficiency. | |
Trust & Team Spirit | The Group’s internal measures indicate significant improvement in employee engagement. The internal culture survey shows across the board improvement in Collaboration, Accountability, Recognition & Reward, Engage in development and Simplicity (CARES) behaviours with the biggest improvements in the retail bank. Other measures are continuing to improve, including workplace injury rates which have fallen 30% over the last twelve months, and voluntary employee turnover which fell 13%. | |
Profitable Growth | During the year, the Board introduced a new strategic initiative of Profitable Growth. There are a number of areas that the Group is focusing on in driving Profitable Growth. These include an Asian expansion program, cross business unit referrals, Global Markets and Treasury, and Global Asset Management and Alternative Investments. The following graphs illustrate the Group’s NPAT and EPS performance on a cash basis over the last five years. | |
Cash NPAT performance 2003 to 2007 ($M) | Cash EPS performance 2003 to 2007 (cents) | |
• | Provide competitive remuneration arrangements that deliver superior rewards for achievement with reference to the vision; |
• | Provide arrangements which better align the interests of executives with Shareholders over the long term; |
• | Make enhanced customer satisfaction, as a driver of sustained competitive advantage, a key objective around which LTI success is measured; |
• | Provide a better linkage between variable remuneration and the areas which can be influenced by each executive; and |
• | Build on the existing remuneration framework, which has historically motivated employees to deliver quality performance and promoted Shareholder value. |
• | STI potentials for the CEO and members of the Group’s Executive Committee will be determined by a ratio of twice Fixed Remuneration. Whilst the STI potential has increased, the existing targets within the Group’s performance management framework have been refined to allow for three levels of stretch targets on each Key Performance Indicator (KPI). This means that the ability of the participant to access the increased potential will only occur where there have been outstanding levels of performance. | |
The STI potential for other executives will also increase, to offset the narrowing of LTI grants to only the CEO and Executive Committee members. | ||
• | For executives in General Manager roles and above, 1/3 of the STI payment will be used to acquire shares in the Bank which will be held in trust for three years. After the three year vesting period, the executive will receive the shares and any dividends accrued over the vesting period. | |
These shares will generally be subject to forfeiture in circumstances of dismissal or resignation prior to the conclusion of the vesting period. | ||
• | The value of STI payments is determined with reference to the performance of the individual and the business against certain KPIs. The weighting of each of these factors has been adjusted for each executive group, to ensure the criteria are more within the area of control and influence of each executive. As a general principle, there will be more weighting on the individual element. | |
• | The Group’s objectives concerning behaviours, safety and compliance will also be reflected in the criteria for becoming eligible for a STI payment. |
• | The plan will provide performance rights to the CEO (subject to Shareholder approval) and Group Executives, dependent on the Group’s growth in Profit After Capital Charge (PACC) and performance against a customer satisfaction hurdle over a 3 year performance period; |
• | A new performance hurdle which measures the Group’s performance on customer satisfaction criteria, and compares the scores with its peer group; |
• | The performance rights will be granted provided growth in NPAT exceeds the average of the Group’s peers and subject to the customer satisfaction requirements, and will be exercisable for Bank shares at any time over the following ten years; |
• | Participation will generally be limited to the CEO and other Executive Committee members. For Executive General Managers and General Managers, the new STI share deferral arrangement provides a strong ‘LTI effect’ and builds a direct, substantial and long term holding in Bank shares. |
• | Customers – customer satisfaction is at the core of the Group’s vision and is a key performance measure of the executive team’s incentive arrangements. Customers can expect the Group to be fully focussed on meeting their needs; |
• | Shareholders – by closely aligning the enhanced STI plan and GLRP with the Group’s business objectives, the remuneration framework encourages and rewards superior performance in the areas which will drive Shareholder returns; and |
• | Employees – performance measures for STI and GLRP are closely linked to what employees can directly influence. The measures are transparent and flexible enough to reflect varied roles. Superior performance against stretch targets will generate significant rewards. |
• | Progress in relation to the Group’s five strategic priorities of Customer Service, Business Banking, Technology and Operational Excellence, Trust and Team Spirit and Profitable Growth (the Group’s performance against these is described earlier); |
• | Business and financial results; |
• | Recruitment and development of top management; |
• | Employee engagement initiatives; |
• | The Group’s sales and service culture; and |
• | Relationships with external stakeholders including the general community, investors, regulators, government and the media. |
Committee Compensation | ||||||||||||||||||||||||
Board | ||||||||||||||||||||||||
Board | People & | Performance | ||||||||||||||||||||||
Compensation | Remuneration | Audit | Risk | & Renewal | Total(1) | |||||||||||||||||||
Director | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
J M Schubert(2) | 620,000 | 20,000 | 10,000 | 650,000 | ||||||||||||||||||||
J Anderson | 190,000 | 20,000 | 210,000 | |||||||||||||||||||||
R J Clairs | 190,000 | 40,000 | 230,000 | |||||||||||||||||||||
C R Galbraith | 190,000 | 25,000 | 10,000 | 225,000 | ||||||||||||||||||||
J S Hemstritch | 190,000 | 20,000 | 210,000 | |||||||||||||||||||||
S C H Kay | 190,000 | 20,000 | 25,000 | 235,000 | ||||||||||||||||||||
W G Kent | 190,000 | 25,000 | 20,000 | 235,000 | ||||||||||||||||||||
F D Ryan | 190,000 | 50,000 | 20,000 | 260,000 | ||||||||||||||||||||
F J Swan | 190,000 | 25,000 | 40,000 | 10,000 | 265,000 | |||||||||||||||||||
D J Turner | 190,000 | 20,000 | 210,000 | |||||||||||||||||||||
H H Young | 190,000 | 20,000 | 210,000 | |||||||||||||||||||||
Total | 2,520,000 | 100,000 | 150,000 | 140,000 | 30,000 | 2,940,000 | ||||||||||||||||||
(1) | Non-Executive Directors sacrifice 20% of these fees on a mandatory basis under the Non-Executive Directors Share Plan (NEDSP). There was a change in Committee memberships from 1 November 2006. Fees were adjusted as from 1 January 2007. | |
(2) | Mr Schubert resigned from the Risk Committee effective from 1 May 2007. |
Increase in Accrued Benefit in Year | Entitlement as at 30 June 2007 | |||||||
Director | $ | $ | ||||||
J M Schubert | — | 636,398 | ||||||
J Anderson(1) | — | |||||||
R J Clairs | — | 202,989 | ||||||
A B Daniels(2) | — | — | ||||||
C R Galbraith | — | 159,092 | ||||||
J S Hemstritch(1) | — | |||||||
S C H Kay(1) | — | — | ||||||
W G Kent | — | 159,092 | ||||||
F D Ryan | — | 168,263 | ||||||
F J Swan | — | 266,173 | ||||||
D J Turner(1) | — | |||||||
B K Ward(2) | — | — | ||||||
H H Young(1) | — | — | ||||||
Total | — | 1,592,007 | ||||||
(1) | Sir John Anderson, Ms Hemstritch, Ms Kay, Mr Turner and Mr Young were appointed as Directors after the closure of the scheme. | |
(2) | Mr Daniels and Ms Ward retired at the 2006 Annual General Meeting on 3 November 2006 and received payments of $160,618 and $370,180 respectively, representing their entitlements under the Scheme. |
Name | Position | Tenure (if not full year) | ||
Non-Executive Directors | ||||
J M Schubert | Chairman | |||
J Anderson | Director | Commenced on 12 March 2007 | ||
R J Clairs | Director | |||
A B Daniels | Director | Retired on 3 November 2006 | ||
C R Galbraith | Director | |||
J S Hemstritch | Director | Commenced on 9 October 2006 | ||
S C Kay | Director | |||
W G Kent | Director | |||
F D Ryan | Director | |||
F J Swan | Director | |||
D J Turner | Director | Commenced on 1 August 2006 | ||
B K Ward | Director | Retired on 3 November 2006 | ||
H H Young | Director | Commenced on 13 February 2007 | ||
Managing Director and CEO | ||||
R J Norris | Managing Director and CEO | |||
Executives | ||||
M A Cameron | Group Executive, Retail Banking Services | Ceased employment on 10 May 2007 | ||
B J Chapman | Group Executive, Human Resources and Group Services | Commenced in role of Group Executive, Marketing and Communications on 20 July 2006. This role was expanded to Group Executive, Human Resources and Group Services on 14 November 2006. | ||
D P Craig | Group Executive, Financial and Risk Management | Commenced on 11 September 2006 | ||
L G Cupper | Group Executive, People Services | Retired on 3 November 2006 | ||
S I Grimshaw | Group Executive, Premium Business Services | |||
H D Harley | Group Executive, Group Strategic Development | Ceased employment on 16 June 2007 | ||
M R Harte | Group Executive, Enterprise IT & Chief Information Officer | |||
G L Mackrell | Group Executive, International Finance Services | |||
R M McEwan | Group Executive, Retail Banking Services | Commenced in role on 14 May 2007 | ||
J K O’Sullivan | Chief Solicitor and General Counsel | |||
G A Petersen | Group Executive, Wealth Management | |||
W Negus | Chief Executive Officer, Colonial First State Global Asset Management |
Post- | ||||||||||||||||||||||||||||||||||||||||
employment | ||||||||||||||||||||||||||||||||||||||||
Short Term Benefits | Benefits | Share-based Payments | ||||||||||||||||||||||||||||||||||||||
Cash STI | STI Deferred in | Other Short | Super- | LTI Reward | Other Long | |||||||||||||||||||||||||||||||||||
Cash | payment | Cash | Term | annuation | Shares | NEDSP | Termination | Term | Total | |||||||||||||||||||||||||||||||
Fixed(1) | At Risk | At Risk | Benefits | Fixed(2) | At Risk | Fixed(1) | Benefits | Benefits | Remuneration | |||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
J M Schubert | ||||||||||||||||||||||||||||||||||||||||
2007 | 505,096 | — | — | — | 45,459 | — | 126,603 | — | — | 677,158 | ||||||||||||||||||||||||||||||
2006 | 478,665 | — | — | — | 43,082 | — | 119,666 | — | — | 641,413 | ||||||||||||||||||||||||||||||
J Anderson | ||||||||||||||||||||||||||||||||||||||||
2007 | 51,090 | — | — | — | 4,598 | — | 12,658 | — | — | 68,346 | ||||||||||||||||||||||||||||||
2006 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
R J Clairs | ||||||||||||||||||||||||||||||||||||||||
2007 | 175,277 | — | — | — | 15,775 | — | 43,937 | — | — | 234,989 | ||||||||||||||||||||||||||||||
2006 | 171,529 | — | — | — | 15,438 | — | 42,882 | — | — | 229,849 | ||||||||||||||||||||||||||||||
A B Daniels(3) | ||||||||||||||||||||||||||||||||||||||||
2007 | 55,233 | — | — | — | — | — | 13,918 | — | — | 69,151 | ||||||||||||||||||||||||||||||
2006 | 159,562 | — | — | — | — | — | 39,891 | — | — | 199,453 | ||||||||||||||||||||||||||||||
C R Galbraith | ||||||||||||||||||||||||||||||||||||||||
2007 | 88,260 | — | — | — | 88,943 | — | 42,427 | — | — | 219,630 | ||||||||||||||||||||||||||||||
2006 | 163,551 | — | — | — | 14,720 | — | 40,888 | — | — | 219,159 | ||||||||||||||||||||||||||||||
J S Hemstritch | ||||||||||||||||||||||||||||||||||||||||
2007 | 90,171 | — | — | — | 36,759 | — | 29,112 | — | — | 156,042 | ||||||||||||||||||||||||||||||
2006 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
S C Kay | ||||||||||||||||||||||||||||||||||||||||
2007 | 174,553 | — | — | — | 15,710 | — | 43,748 | — | — | 234,011 | ||||||||||||||||||||||||||||||
2006 | 159,562 | — | — | — | 14,361 | — | 39,891 | — | — | 213,814 | ||||||||||||||||||||||||||||||
W G Kent | ||||||||||||||||||||||||||||||||||||||||
2007 | 175,901 | — | — | — | 15,831 | — | 44,088 | — | — | 235,820 | ||||||||||||||||||||||||||||||
2006 | 163,551 | — | — | — | 14,720 | — | 40,888 | — | — | 219,159 | ||||||||||||||||||||||||||||||
F D Ryan | ||||||||||||||||||||||||||||||||||||||||
2007 | 92,767 | — | — | — | 109,467 | — | 48,595 | — | — | 250,829 | ||||||||||||||||||||||||||||||
2006 | 179,507 | — | — | — | 16,156 | — | 44,877 | — | — | 240,540 | ||||||||||||||||||||||||||||||
F J Swan | ||||||||||||||||||||||||||||||||||||||||
2007 | 187,112 | — | — | — | 16,840 | — | 46,885 | — | — | 250,837 | ||||||||||||||||||||||||||||||
2006 | 155,573 | — | — | — | 14,002 | — | 38,893 | — | — | 208,468 | ||||||||||||||||||||||||||||||
D J Turner | ||||||||||||||||||||||||||||||||||||||||
2007 | 42,214 | — | — | — | 105,257 | — | 35,918 | — | — | 183,389 | ||||||||||||||||||||||||||||||
2006 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
B K Ward(3) | ||||||||||||||||||||||||||||||||||||||||
2007 | 56,614 | — | — | — | 5,095 | — | 14,266 | — | — | 75,975 | ||||||||||||||||||||||||||||||
2006 | 163,551 | — | — | — | 14,720 | — | 40,888 | — | — | 219,159 | ||||||||||||||||||||||||||||||
H H Young | ||||||||||||||||||||||||||||||||||||||||
2007 | 63,518 | — | — | — | 5,717 | — | 15,879 | — | — | 85,114 | ||||||||||||||||||||||||||||||
2006 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Non-Executive Director Total | ||||||||||||||||||||||||||||||||||||||||
2007 | 1,757,806 | — | — | — | 465,451 | — | 518,034 | — | — | 2,741,291 | ||||||||||||||||||||||||||||||
2006 | 1,795,051 | — | — | — | 147,199 | — | 448,764 | — | — | 2,391,014 | ||||||||||||||||||||||||||||||
Managing Director and CEO | ||||||||||||||||||||||||||||||||||||||||
R J Norris | ||||||||||||||||||||||||||||||||||||||||
2007 | 1,467,450 | 1,425,000 | 1,514,063 | 81,125 | 792,672 | 1,237,635 | — | — | 52,040 | 6,569,985 | ||||||||||||||||||||||||||||||
2006 | 921,642 | — | 650,000 | 846,963 | 1,248,358 | 483,045 | — | — | — | 4,150,008 | ||||||||||||||||||||||||||||||
Director Grand Totals | ||||||||||||||||||||||||||||||||||||||||
2007 | 3,225,256 | 1,425,000 | 1,514,063 | 81,125 | 1,258,123 | 1,237,635 | 518,034 | — | 52,040 | 9,311,276 | ||||||||||||||||||||||||||||||
2006(4) | 3,068,193 | — | 650,000 | 846,963 | 2,791,114 | (2,408,578 | ) | 448,764 | 8,772,464 | — | 14,281,420 | |||||||||||||||||||||||||||||
Group totals in respect of the financial year ended 30 June 2006 do not necessarily equal the sum of amounts disclosed for individuals listed above as there are some different individuals specified as Directors in 2007. | ||
(1) | For Non-Executive Directors, this includes that portion of base fees and committee fees paid as cash. Non-Executive Directors also salary sacrifice 20% of their fees on a mandatory basis under the Non-Executive Directors Share Plan (NEDSP). Further details on the NEDSP is contained in Note 5. | |
(2) | Represents company contribution to superannuation and includes any allocations made by way of salary sacrifice by Executives. | |
(3) | Mr Daniels and Ms Ward retired at the 2006 Annual General Meeting on 3 November 2006. | |
(4) | The grand total values for the year ended 30 June 2006 include STI deferred shares at risk to the value of $121,500. |
Post- | ||||||||||||||||||||||||||||||||||||||||||||
employment | ||||||||||||||||||||||||||||||||||||||||||||
Short Term Benefits | Benefits | Share-based Payments | ||||||||||||||||||||||||||||||||||||||||||
Non | Cash STI | STI Deferred | Other Short | Super- | LTI Reward | LTI | Other Long | |||||||||||||||||||||||||||||||||||||
Cash | Monetary | payment | in Cash | Term | annuation | Shares | Performance | Termination | Term | Total | ||||||||||||||||||||||||||||||||||
Fixed(1) | Fixed(2) | At Risk(3) | At Risk(4) | Benefits | Fixed(5) | At Risk(6) | Units At Risk | Benefits(7) | Benefits(8) | Remuneration | ||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
M A Cameron(9) | ||||||||||||||||||||||||||||||||||||||||||||
2007 | 832,990 | 8,826 | — | — | — | 59,975 | 210,476 | — | 131,948 | — | 1,244,215 | |||||||||||||||||||||||||||||||||
2006 | 833,465 | 10,260 | 382,485 | 382,485 | — | 59,995 | 346,920 | — | — | — | 2,058,110 | |||||||||||||||||||||||||||||||||
B J Chapman(10) | ||||||||||||||||||||||||||||||||||||||||||||
2007 | 112,213 | 9,726 | 312,164 | 331,674 | 144,739 | 601,128 | 125,259 | 397,554 | — | 16,535 | 2,050,992 | |||||||||||||||||||||||||||||||||
2006 | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
D P Craig(11) | ||||||||||||||||||||||||||||||||||||||||||||
2007 | 113,426 | 8,236 | 306,647 | 325,812 | — | 774,720 | 142,138 | — | — | 14,935 | 1,685,914 | |||||||||||||||||||||||||||||||||
2006 | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
L G Cupper(12)(13) | ||||||||||||||||||||||||||||||||||||||||||||
2007 | 23,225 | 3,542 | — | — | — | 993,599 | 751,906 | — | 1,483,303 | — | 3,255,575 | |||||||||||||||||||||||||||||||||
2006 | 634,500 | 10,260 | — | — | — | 643,900 | 396,886 | — | — | — | 1,734,296 | |||||||||||||||||||||||||||||||||
S I Grimshaw(13) | ||||||||||||||||||||||||||||||||||||||||||||
2007 | 1,215,608 | 10,200 | 556,600 | 591,388 | — | 81,288 | 1,713,785 | — | — | 28,148 | 4,197,017 | |||||||||||||||||||||||||||||||||
2006 | 1,026,000 | 10,260 | 506,000 | 506,000 | — | 74,000 | 560,429 | — | — | — | 2,752,689 | |||||||||||||||||||||||||||||||||
H D Harley(13)(14) | ||||||||||||||||||||||||||||||||||||||||||||
2007 | 807,300 | 9,866 | — | — | — | 1,245,159 | 482,321 | — | 2,843,432 | — | 5,388,078 | |||||||||||||||||||||||||||||||||
2006 | 839,500 | 9,837 | 324,000 | 324,000 | — | 60,500 | 449,894 | — | — | — | 2,065,231 | |||||||||||||||||||||||||||||||||
M R Harte | ||||||||||||||||||||||||||||||||||||||||||||
2007 | 632,568 | 10,260 | 296,100 | 314,606 | 310,618 | 42,500 | 111,929 | — | — | 14,647 | 1,733,228 | |||||||||||||||||||||||||||||||||
2006 | 117,500 | — | 64,575 | 64,575 | 115,825 | 708,500 | — | — | — | 115,825 | 1,070,975 | |||||||||||||||||||||||||||||||||
G L Mackrell(13) | ||||||||||||||||||||||||||||||||||||||||||||
2007 | 600,724 | 10,260 | 415,000 | 440,938 | — | 202,503 | 1,270,275 | — | — | 18,599 | 2,958,299 | |||||||||||||||||||||||||||||||||
2006 | 710,000 | 10,260 | 363,400 | 363,400 | — | 80,907 | 419,034 | — | — | — | 1,997,626 | |||||||||||||||||||||||||||||||||
R M McEwan(15) | ||||||||||||||||||||||||||||||||||||||||||||
2007 | 116,999 | 1,321 | 47,612 | 50,588 | 17,725 | 8,730 | — | 181,058 | — | 2,729 | 426,762 | |||||||||||||||||||||||||||||||||
2006 | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
J K O’Sullivan | ||||||||||||||||||||||||||||||||||||||||||||
2007 | 848,665 | 10,260 | 332,645 | 395,935 | — | 96,800 | 734,820 | — | — | 19,651 | 2,438,776 | |||||||||||||||||||||||||||||||||
2006 | 755,600 | 10,260 | 291,200 | 331,200 | — | 94,400 | 313,517 | — | — | 1,846,177 | ||||||||||||||||||||||||||||||||||
G A Petersen | ||||||||||||||||||||||||||||||||||||||||||||
2007 | 442,521 | 10,260 | 410,576 | 436,237 | — | 476,449 | 607,463 | — | — | 19,945 | 2,403,451 | |||||||||||||||||||||||||||||||||
2006 | 542,233 | 10,260 | 282,449 | 282,449 | — | 102,543 | 219,233 | — | — | — | 1,466,779 | |||||||||||||||||||||||||||||||||
Total Remuneration | ||||||||||||||||||||||||||||||||||||||||||||
2007 | 5,756,239 | 92,757 | 2,677,344 | 2,887,178 | 473,082 | 4,582,851 | 6,150,372 | 578,612 | 4,458,683 | 135,189 | 27,792,307 | |||||||||||||||||||||||||||||||||
2006 | 6,527,775 | 84,017 | 2,214,109 | 2,014,109 | 115,825 | 1,896,325 | 869,932 | — | 3,595,308 | 115,825 | 17,701,262 | |||||||||||||||||||||||||||||||||
Other Executives(13) | ||||||||||||||||||||||||||||||||||||||||||||
W Negus | ||||||||||||||||||||||||||||||||||||||||||||
2007 | 1,004,395 | 10,260 | 888,000 | 943,500 | — | 67,164 | 212,720 | 1,779,157 | — | 23,257 | 4,928,453 | |||||||||||||||||||||||||||||||||
2006 | 932,836 | 10,260 | 886,000 | 886,000 | — | 67,164 | 194,994 | — | — | — | 2,977,254 | |||||||||||||||||||||||||||||||||
Total Remuneration for Executives | ||||||||||||||||||||||||||||||||||||||||||||
2007 | 6,750,934 | 103,017 | 3,565,344 | 3,830,678 | 473,082 | 4,650,015 | 6,363,092 | 2,357,769 | 4,458,683 | 158,446 | 32,710,760 | |||||||||||||||||||||||||||||||||
2006(16) | 8,408,211 | 104,537 | 6,241,109 | 7,251,109 | 115,825 | 2,014,191 | 1,381,151 | — | 3,595,308 | — | 29,975,050 | |||||||||||||||||||||||||||||||||
Grand totals in respect of the financial year ended 30 June 2006 do not necessarily equal the sum of amounts disclosed for individuals listed above as there are different individuals specified as Executives in 2007. | ||
Amounts in the table above reflect remuneration for the time the Executive has been in a Key Management Personnel role i.e. pro-rating is applied relative to the date the Executive commenced or ceased a Key Management Personnel role. Remuneration earned as an Executive prior to appointment to a Key Management Personnel role is not included in the amounts shown for that Executive. | ||
(1) | Reflects the amounts paid in the year ended 30 June and is calculated on a total cost basis. Included may be annual leave accruals and salary sacrifice amounts with the exception of salary sacrifice superannuation which is included under ‘Superannuation’. | |
(2) | Represents the cost of car parking (including FBT). | |
(3) | Cash STI payment represents the amount of cash immediately payable to an Executive in recognition of performance for the year ended 30 June, with the exception of STI sacrificed to superannuation which is included under ‘Superannuation’. | |
(4) | STI deferred in Cash represents the mandatory deferral of 50% of STI payments for Executives for performance to the year ended 30 June 2007. These amounts are deferred until 1 July 2008. Generally, the Executive will need to be an employee of the Bank at the end of the deferral period to receive this portion. | |
(5) | Represents company contribution to superannuation and includes any allocations made by way of salary sacrifice by Executives. |
(6) | The ‘fair value’ of LTI reward shares has been calculated using a Monte-Carlo simulation method, incorporating the assumptions below : |
Reward Share Valuation Assumptions | ||||||||||||||||||||||||
Purchase Date | Fair Value | Exercise Price | Risk Free Rate | Assumption Term | Dividend Yield | Volatility | ||||||||||||||||||
30-Nov-02 | $ | 16.75 | $ | 0.00 | 5.35 | % | 57 mths | Nil | 20.0 | % | ||||||||||||||
30-Nov-02 Modification | $ | 15.52 | $ | 0.00 | 6.13 | % | 1 day | Nil | 15.0 | % | ||||||||||||||
29-Oct-03 | $ | 16.36 | $ | 0.00 | 5.70 | % | 58 mths | Nil | 20.0 | % | ||||||||||||||
29-Oct-03 Modification | $ | 7.47 | $ | 0.00 | 6.13 | % | 1 day | Nil | 15.0 | % | ||||||||||||||
22-Sep-04 | $ | 16.72 | $ | 0.00 | 5.48 | % | 59 mths | Nil | 15.0 | % | ||||||||||||||
5-Nov-04 | $ | 19.72 | $ | 0.00 | 5.61 | % | 57 mths | Nil | 15.0 | % | ||||||||||||||
23-Nov-05 | $ | 24.51 | $ | 0.00 | 5.65 | % | 56 mths | Nil | 15.0 | % | ||||||||||||||
3-Nov-06 | $ | 30.62 | $ | 0.00 | 6.04 | % | 47 mths | Nil | 15.0 | % |
The assessment has been made as at purchase date for each ERP grant based on the expected future TSR performance of the Bank and each member of its Peer Group. The annualised equivalent of the ‘fair value’ in respect of the number of shares for each grant has been amortised on a straight line basis over the term of the grant. | ||
The one-off modification detailed on page 29 of this report resulted in an increase in the 2002 and 2003 LTI grant values that was expensed in full in the year ended 30 June 2007. The one-off adjustment reflected in the table for each participant is as follows — Mr Cameron $321,781, Ms Chapman $249,963, Mr Cupper $678,205, Mr Grimshaw $883,911, Mr Harley $555,829, Mr Mackrell $649,072, Mr McEwan $140,250, Mr O’Sullivan $250,245 and Mr Petersen $183,920. There was no impact on other Key Management Personnel and Other Executives as they did not participate in the 2002 and 2003 LTI grants. The ‘LTI Reward Shares At Risk’ column amounts shown for Messrs Cameron, Cupper and Harley also reflect some reversals of disclosed amounts in respect of forfeitures of the 2004 and 2005 ERP grants upon ceasing employment, as required under AASB124. | ||
(7) | Represents any severance payments made on termination of employment. For Messrs Cupper and Harley, Termination Benefits include a pro rata grant of Performance Units. These were granted in place of the Reward Shares originally granted under the ERP arrangements. The Reward Shares were automatically forfeited on ceasing employment with the Group. The Performance Units may vest at a future date, depending on the performance of the relevant grant. They may receive all, some or none of these Performance Units, depending on the performance of the grant over the relevant periods. These grants are at Board discretion and are consistent with termination arrangements for executives who have unvested ERP Reward Shares when they exit the Group. | |
(8) | All Other Benefits payable that are not covered above. | |
(9) | Mr Cameron ceased employment on 10 May 2007. | |
(10) | Ms Chapman commenced in her role of Group Executive, Marketing and Communications on 20 July 2006 and this role was expanded to Group Executive, Human Resources and Group Services on 14 November 2006. | |
(11) | Mr Craig commenced in his role on 11 September 2006. | |
(12) | Mr Cupper retired from the Group on 3 November 2006. Mr Cupper’s STI payment otherwise deferred and payable on retirement was immediately payable and has been included under ‘Superannuation’. | |
(13) | Mr Negus, who is not a Key Management Person, and Messrs Cupper, Grimshaw, Harley and Mackrell are the five executives who received the highest remuneration for the year ended 30 June 2007 as defined in the Section 300A of the Corporations Act 2001. | |
(14) | Mr Harley ceased employment on 16 June 2007. | |
(15) | Mr McEwan commenced in his role on 14 May 2007. | |
(16) | Total Remuneration for Executives total values for the year ended 30 June 2006 included a value of $863,609 for STI deferred shares at risk. |
• | Messrs Grimshaw and O’Sullivan, whose contracts allow for a twelve months severance payment where termination is initiated by the Group; and | |
• | Ms Chapman and Mr McEwan, whose severance payments are linked to years of service with a maximum 64 weeks payment after 19 years service. |
Percentage | Percentage | Percentage | Minimum Total | Maximum Total | ||||||||||||||||
Paid | Forfeited | Deferred(1) | Value(2) | Value(3) | ||||||||||||||||
% | % | % | $ | $ | ||||||||||||||||
M A Cameron(4) | — | — | — | — | — | |||||||||||||||
B J Chapman(5) | 50 | — | 50 | 312,164 | 643,838 | |||||||||||||||
D P Craig(6) | 50 | — | 50 | 306,647 | 632,458 | |||||||||||||||
L G Cupper(7) | — | — | — | — | — | |||||||||||||||
S I Grimshaw | 50 | — | 50 | 556,600 | 1,147,988 | |||||||||||||||
H D Harley(8) | — | — | — | — | — | |||||||||||||||
M R Harte | 50 | — | 50 | 296,100 | 610,706 | |||||||||||||||
G L Mackrell | 50 | — | 50 | 415,000 | 855,938 | |||||||||||||||
R M McEwan(9) | 50 | — | 50 | 47,612 | 98,199 | |||||||||||||||
R J Norris | 50 | — | 50 | 1,425,000 | 2,939,063 | |||||||||||||||
J K O’Sullivan | 50 | — | 50 | 372,645 | 768,580 | |||||||||||||||
G A Petersen | 50 | — | 50 | 410,576 | 846,813 | |||||||||||||||
Other Executives | ||||||||||||||||||||
W Negus | 50 | — | 50 | — | — |
(1) | Will generally vest on 1 July 2008 and be paid in July 2008, subject to not being forfeited due to resignation or misconduct including misrepresentation of performance outcomes. Will generally vest and be immediately payable in circumstances of retrenchment, retirement or death. | |
(2) | For those executives with a minimum total value greater than zero, this reflects the 50% component of the STI payment which is immediately payable determined by actual performance over the year ended 30 June 2007. Executives generally do not receive an STI payment unless their individual performance is at least meeting expectations. | |
(3) | Includes interest component calculated at 6.25% of the deferred amount. | |
(4) | Mr Cameron ceased employment on 14 May 2007. | |
(5) | Ms Chapman commenced her role of Group Executive, Marketing and Communications on 20 July 2006 and this role was expanded to Group Executive, Human Resources and Group Services on 14 November 2006. | |
(6) | Mr Craig commenced in his role on 11 September 2006. | |
(7) | Mr Cupper retired on 3 November 2006. | |
(8) | Mr Harley ceased employment on 16 June 2007. | |
(9) | Mr McEwan commenced in his role on 14 May 2007. |
Percentage | Percentage | Percentage | Current | Minimum Total | Maximum Total | |||||||||||||||||||
Paid(1) | Forfeited | Deferred(1) | Allocation | Value | Value(2) | |||||||||||||||||||
% | % | % | (No. of Shares) | $ | $ | |||||||||||||||||||
R J Norris | — | — | 100 | 90,910 | — | 3,961,858 | ||||||||||||||||||
M A Cameron(3) | — | 100 | — | — | — | — | ||||||||||||||||||
B J Chapman(4) | — | — | 100 | 17,046 | — | 742,865 | ||||||||||||||||||
D P Craig(5) | — | — | 100 | 22,728 | — | 990,486 | ||||||||||||||||||
L G Cupper(6) | — | — | — | — | — | — | ||||||||||||||||||
S I Grimshaw | — | — | 100 | 32,500 | — | 1,416,350 | ||||||||||||||||||
H D Harley(7) | — | 70 | 30 | 8,130 | — | 354,305 | ||||||||||||||||||
M R Harte | — | — | 100 | 14,318 | — | 623,978 | ||||||||||||||||||
G L Mackrell | — | — | 100 | 24,318 | — | 1,059,778 | ||||||||||||||||||
R M McEwan(8) | — | — | 100 | 13,636 | — | 594,257 | ||||||||||||||||||
J K O’Sullivan | — | — | 100 | 20,580 | — | 869,876 | ||||||||||||||||||
G A Petersen | — | — | 100 | 25,000 | — | 1,089,500 | ||||||||||||||||||
Other Executives | ||||||||||||||||||||||||
W Negus(9) | — | — | 100 | n/a | — | 1,475,000 |
(1) | Will vest in July 2009 or July 2010 subject to the service conditions and the performance hurdle being met (see page 33). In circumstances of retrenchment, retirement or death, the executive or their estate may, at Board discretion, retain a pro-rated grant of LTIs. | |
(2) | This equals the “No. of shares/performance units” multiplied by the Bank’s closing share price at the Commencement Date of the grant (14 July 2006), which was $43.58. | |
(3) | Mr Cameron ceased employment on 10 May 2007. | |
(4) | Ms Chapman commenced in her role of Group Executive, Marketing and Communications on 20 July 2006 and this role was expanded to Group Executive, Human Resources and Group Services on 14 November 2006. | |
(5) | Mr Craig commenced in his role on 11 September 2006. | |
(6) | Mr Cupper retired on 3 November 2006 and was not allocated Reward Shares in the year ended 30 June 2007. | |
(7) | Mr Harley ceased employment on 16 June 2007 and retained a pro-rated LTI allocation. | |
(8) | Mr McEwan commenced in his role on 14 May 2007. Mr McEwan participates in ERPUP. For details of ERPUP see page 64. | |
(9) | Mr Negus participates in a cash settled LTI arrangement that is specific to Colonial First State Global Asset Management (CFS GAM). Allocations under this arrangement vest depending on CFS GAM net profit before tax growth rate over three years. |
Acquired/Granted | ||||||||||||||||||||||
Balance | as | On Exercise of | Net Change | Balance | ||||||||||||||||||
Name | Class | 1 July 2006 | Remuneration(1) | Options | Other(2) | 30 June 2007 | ||||||||||||||||
Directors | ||||||||||||||||||||||
J M Schubert | Ordinary | 21,188 | 2,545 | — | 685 | 24,418 | ||||||||||||||||
J Anderson(3) | Ordinary | 10,000 | — | — | — | 10,000 | ||||||||||||||||
R J Clairs(4) | Ordinary | 16,988 | 898 | — | — | 17,886 | ||||||||||||||||
A B Daniels(5) | Ordinary | 18,691 | 443 | — | 19,134 | |||||||||||||||||
C R Galbraith | Ordinary | 10,030 | 856 | — | 518 | 11,404 | ||||||||||||||||
J S Hemstritch(6) | Ordinary | 15,400 | 165 | — | — | 15,565 | ||||||||||||||||
S C H Kay | Ordinary | 4,390 | 852 | — | 659 | 5,901 | ||||||||||||||||
W G Kent | Ordinary | 16,113 | 869 | — | 88 | 17,070 | ||||||||||||||||
R J Norris | Ordinary | 10,000 | — | — | — | 10,000 | ||||||||||||||||
Reward Shares | 100,328 | 90,910 | — | — | 191,238 | |||||||||||||||||
F D Ryan | Ordinary | 8,242 | 954 | — | — | 9,196 | ||||||||||||||||
F J Swan | Ordinary | 6,974 | 844 | — | 363 | 8,181 | ||||||||||||||||
D J Turner(7) | Ordinary | — | 301 | — | — | 301 | ||||||||||||||||
B K Ward(5)(8) | Ordinary | 6,629 | 454 | — | 126 | 7,209 | ||||||||||||||||
H H Young(9) | Ordinary | — | — | — | 20,000 | 20,000 | ||||||||||||||||
Total For Directors | Ordinary | 144,645 | 9,181 | — | 22,439 | 176,265 | ||||||||||||||||
Reward Shares | 100,328 | 90,910 | — | — | 191,238 | |||||||||||||||||
(1) | For Non-Executive Directors, represents shares acquired under NEDSP on 14 August 2006 and 12 March 2007 by mandatory sacrifice of fees. All shares acquired through NEDSP are subject to a 10 year trading restriction (shares will be tradeable earlier if the Director leaves the Board). For Sir John Anderson and Mr Young the first purchase of shares under NEDSP will occur in August 2007. For Mr Norris this represents Reward Shares granted under the ERP and subject to a performance hurdle. The first possible date for meeting the performance hurdle is 15 July 2009 with the last possible date for vesting being 15 July 2010. See Note 5 for further details on the NEDSP and ERP. | |
(2) | “Net Change Other” incorporates changes resulting from purchases and sales during the year. | |
(3) | Sir John Anderson was appointed to the Board with effect from 12 March 2007. | |
(4) | Mr Clairs’ 1 July 2006 balance has been restated from 14,133 disclosed for 2005/06. | |
(5) | Mr Daniels and Ms Ward retired at the 2006 Annual General Meeting on 3 November 2006. | |
(6) | Ms Hemstritch was appointed to the Board with effect from 9 October 2006. | |
(7) | Mr Turner was appointed to the Board with effect from 1 August 2006. | |
(8) | Ms Ward continued to hold 250 PERLS II Securities as at 30 June 2007. | |
(9) | Mr Young was appointed to the Board with effect from 13 February 2007. |
Acquired/Granted | ||||||||||||||||||||||
Balance | as | On Exercise of | Net Change | Balance | ||||||||||||||||||
Name | Class(1) | 30 June 2006 | Remuneration | Options | Other(2) | 30 June 2007 | ||||||||||||||||
Executives | ||||||||||||||||||||||
M A Cameron(3) | Ordinary | — | — | — | — | — | ||||||||||||||||
Deferred STI | 2,848 | — | — | (2,848 | ) | — | ||||||||||||||||
Reward Shares | 89,620 | 31,818 | — | (121,438 | ) | — | ||||||||||||||||
B J Chapman(4) | Ordinary | — | — | — | — | — | ||||||||||||||||
Deferred STI | — | — | — | — | — | |||||||||||||||||
Reward Shares | — | 17,046 | — | — | 17,046 | |||||||||||||||||
D P Craig(5) | Ordinary | — | — | — | — | — | ||||||||||||||||
Deferred STI | — | — | — | — | — | |||||||||||||||||
Reward Shares | — | 22,728 | — | — | 22,728 | |||||||||||||||||
L G Cupper(6) | Ordinary | 51,355 | — | — | 50,575 | 101,930 | ||||||||||||||||
Deferred STI | 3,267 | — | — | (3,267 | ) | — | ||||||||||||||||
Reward Shares | 106,440 | — | — | (106,440 | ) | — | ||||||||||||||||
S I Grimshaw | Ordinary | 25,308 | — | — | 4,691 | 29,999 | ||||||||||||||||
Deferred STI | 4,691 | — | — | (4,691 | ) | — | ||||||||||||||||
Reward Shares | 148,940 | 32,500 | — | (76,300 | ) | 105,140 | ||||||||||||||||
H D Harley(7) | Ordinary | 26,281 | — | — | 13,457 | 39,738 | ||||||||||||||||
Deferred STI | 3,853 | — | — | (3,853 | ) | — | ||||||||||||||||
Reward Shares | 118,140 | 27,272 | — | (145,412 | ) | — | ||||||||||||||||
M R Harte | Ordinary | — | — | — | — | — | ||||||||||||||||
Deferred STI | — | — | — | — | — | |||||||||||||||||
Reward Shares | — | 14,318 | — | — | 14,318 | |||||||||||||||||
G L Mackrell | Ordinary | 34,930 | — | — | 4,878 | 39,808 | ||||||||||||||||
Deferred STI | 3,392 | — | — | (3,392 | ) | — | ||||||||||||||||
Reward Shares | 110,800 | 24,318 | — | (55,100 | ) | 80,018 | ||||||||||||||||
R M McEwan(8) | Ordinary | — | — | — | — | — | ||||||||||||||||
Deferred STI | — | — | — | — | — | |||||||||||||||||
Reward Shares | — | — | — | — | — | |||||||||||||||||
J K O’Sullivan | Ordinary | 8,916 | — | — | 36,851 | 45,767 | ||||||||||||||||
Deferred STI | 3,351 | — | — | (3,351 | ) | — | ||||||||||||||||
Reward Shares | 82,690 | 20,580 | — | (33,500 | ) | 69,770 | ||||||||||||||||
G A Petersen | Ordinary | 9,907 | — | — | 4,745 | 14,652 | ||||||||||||||||
Deferred STI | 1,850 | — | — | (1,850 | ) | — | ||||||||||||||||
Reward Shares | 55,780 | 25,000 | — | (16,000 | ) | 64,780 | ||||||||||||||||
Other Executives | ||||||||||||||||||||||
W Negus | Ordinary | 3,680 | — | — | — | 3,680 | ||||||||||||||||
Deferred STI | — | — | — | — | — | |||||||||||||||||
Reward Shares | 40,500 | — | — | — | 40,500 | |||||||||||||||||
Total for Executives | Ordinary | 160,377 | — | — | 115,197 | 275,574 | ||||||||||||||||
Deferred STI | 23,252 | — | — | (23,252 | ) | — | ||||||||||||||||
Reward Shares | 752,910 | 215,580 | — | (554,190 | ) | 141,300 | ||||||||||||||||
(1) | Represents: | |
• | Deferred STI — acquired under the mandatory component of the Bank’s Equity Participation Plan (EPP). Shares were purchased on 31 October 2004 in two equal tranches, vesting on 1 July 2005 and 1 July 2006 respectively. See Note 5 for further details on the EPP. | |
• | Reward Shares — granted under the Equity Reward Plan (ERP) and are subject to a performance hurdle. The first possible date for meeting the performance hurdle is 23 September 2007 with the last possible date for vesting being 15 July 2010. See Note 5 for further details on the ERP. | |
(2) | “Net Change Other” incorporates changes resulting from purchases, sales and forfeits during the year by executives and vesting of deferred STI and Reward Shares (which became ordinary shares). | |
(3) | Mr Cameron ceased employment on 10 May 2007. | |
(4) | Ms Chapman commenced in her role on 20 July 2006. Ms Chapman holds 10,000 Perpetual Preference Shares in ASB Capital Notes 2. | |
(5) | Mr Craig commenced in his role on 11 September 2006. | |
(6) | Mr Cupper retired on 3 November 2006 and was not allocated Reward Shares in the year ended 30 June 2007. He acquired 6,000 PERLS III securities during the year, and continued to hold them at 30 June 2007. | |
(7) | Mr Harley ceased employment on 16 June 2007. | |
(8) | Mr McEwan commenced in his role on 14 May 2007. |
Name | Deferred STI Vested | Reward Shares Vested | ||||||
Directors | ||||||||
R J Norris | — | — | ||||||
Executives | ||||||||
M A Cameron(1) | 2,848 | 27,300 | ||||||
B J Chapman(2) | — | — | ||||||
D P Craig(3) | — | — | ||||||
L G Cupper(4) | 3,267 | 44,250 | ||||||
S I Grimshaw | 4,691 | 56,800 | ||||||
H D Harley(5) | 3,853 | 39,700 | ||||||
M R Harte | — | — | ||||||
G L Mackrell | 3,392 | 40,350 | ||||||
R M McEwan(6) | — | — | ||||||
J K O’Sullivan | 3,351 | 33,500 | ||||||
G A Petersen | 1,850 | 12,000 | ||||||
Total for Key Management Personnel | 23,252 | 253,900 | ||||||
Other Executives | ||||||||
W Negus | — | — | ||||||
Total | 31,535 | 269,250 | ||||||
(1) | Mr Cameron ceased employment on 10 May 2007. | |
(2) | Ms Chapman commenced in her role on 20 July 2006. | |
(3) | Mr Craig commenced in his role on 11 September 2006. | |
(4) | Mr Cupper retired on 3 November 2006. | |
(5) | Mr Harley ceased employment on 16 June 2007. | |
(6) | Mr McEwan commenced in his role on 14 May 2007. |
Balance | Interest | Interest Not | Balance | Number in | ||||||||||||||||||||||||
Year Ended | 1 July | Charged | Charged | Write-off | 30 June | Group at | ||||||||||||||||||||||
30 June | $000s | $000s | $000s | $000s | $000s | 30 June | ||||||||||||||||||||||
Directors | ||||||||||||||||||||||||||||
2007 | 464 | 21 | — | — | 464 | 1 | ||||||||||||||||||||||
2006 | — | 379 | — | — | 5,729 | 1 | ||||||||||||||||||||||
Executives | ||||||||||||||||||||||||||||
2007 | 9,178 | 425 | — | — | 5,965 | 6 | ||||||||||||||||||||||
2006 | 9,894 | 550 | — | — | 9,284 | 7 | ||||||||||||||||||||||
Total for Key Management Personnel | ||||||||||||||||||||||||||||
2007 | 9,642 | 446 | — | — | 6,429 | 7 | ||||||||||||||||||||||
2006 | 9,894 | 929 | — | — | 15,013 | 8 | ||||||||||||||||||||||
Other Executives | ||||||||||||||||||||||||||||
2007 | 554 | 35 | 443 | 1 | ||||||||||||||||||||||||
2006 | 554 | 31 | — | — | 442 | 1 | ||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||
2007 | 10,196 | 481 | — | — | 6,872 | 8 | ||||||||||||||||||||||
2006 | 10,448 | 960 | — | — | 15,455 | 9 | ||||||||||||||||||||||
Highest | ||||||||||||||||||||||||
Balance | Interest | Interest Not | Balance | Balance | ||||||||||||||||||||
1 July 2006 | Charged | Charged | Write-off | 30 June 2007 | in Period | |||||||||||||||||||
$000s | $000s | $000s | $000s | $000s | $000s | |||||||||||||||||||
Directors | ||||||||||||||||||||||||
R J Norris(1) | 464 | 21 | — | — | 464 | 1,037 | ||||||||||||||||||
Executives | ||||||||||||||||||||||||
B J Chapman(1) (2) | 825 | 18 | — | — | — | 825 | ||||||||||||||||||
M A Cameron(3) | 358 | 6 | — | — | 303 | 358 | ||||||||||||||||||
300 | 19 | — | — | 300 | 302 | |||||||||||||||||||
S I Grimshaw | 857 | 29 | — | — | — | 978 | ||||||||||||||||||
391 | 13 | — | — | — | 393 | |||||||||||||||||||
H D Harley(4) | 304 | 36 | — | — | 280 | 304 | ||||||||||||||||||
G L Mackrell | 1,017 | 25 | — | — | 647 | 1,017 | ||||||||||||||||||
R M McEwan(1) (5) | 218 | 2 | — | — | 218 | 218 | ||||||||||||||||||
J K O’Sullivan | 1,500 | 97 | — | — | 1,500 | 1,500 | ||||||||||||||||||
582 | 43 | — | — | 759 | 760 | |||||||||||||||||||
614 | 38 | — | — | 515 | 618 | |||||||||||||||||||
274 | 7 | — | — | 178 | 275 | |||||||||||||||||||
647 | 42 | — | — | 647 | 647 | |||||||||||||||||||
200 | 12 | — | — | — | 200 | |||||||||||||||||||
101 | — | — | — | — | 101 | |||||||||||||||||||
G A Petersen | 155 | 1 | — | — | — | 155 | ||||||||||||||||||
800 | 33 | — | — | 450 | 800 | |||||||||||||||||||
— | �� | 1 | — | — | 192 | 192 | ||||||||||||||||||
Total for Key Management Personnel | 9,607 | 443 | — | — | 6,453 | 10,680 | ||||||||||||||||||
Other Executives | ||||||||||||||||||||||||
W Negus | 442 | 33 | — | — | 442 | 442 | ||||||||||||||||||
112 | 2 | — | — | 1 | 1 | |||||||||||||||||||
Total | 10,161 | 478 | — | — | 6,896 | 11,123 | ||||||||||||||||||
(1) | Balance declared in NZD for Mr Norris, Ms Chapman and Mr McEwan. Exchange rate taken from Reserve Bank of Australia as at 29 June 2007. | |
(2) | Ms Chapman commenced in her role on 20 July 2006. | |
(3) | Mr Cameron ceased employment on 10 May 2007. | |
(4) | Mr Harley ceased employment on 16 June 2007. | |
(5) | Mr McEwan commenced in his role on 14 May 2007. |
$’000 | ||||
Regulatory audits, reviews, attestations and assurances for Group entities – Australia | 582 | |||
Regulatory audits, reviews, attestations and assurances for Group entities – Off shore | 770 | |||
APRA reporting (including the tripartite review) | 1,168 | |||
Financial and other audits, reviews, attestations and assurances for Group entities — Australia | — | |||
Financial and other audits, reviews, attestations and assurances for Group entities – Off shore | 17 | |||
Assurance services relating to Sarbanes Oxley legislation compliance | — | |||
Agreed upon procedures and comfort letters in respect of financing, debt raising and related activities | 239 | |||
Total | 2,776 | (1) | ||
(1) | An additional amount of $4,948,000 was paid to Ernst & Young by way of fees paid for Non-Audit Services provided to entities not consolidated into the Financial Statements, being managed investment schemes and superannuation funds. $4,532,000 of this amount related to statutory audits, with the residual relating to reviews, attestations and assurances. |
• | The operation of the Independent Auditor Services Policy during the year to restrict the nature of non-audit services engagements, to prohibit certain services and to require Audit Committee pre-approval for all such engagements; and | |
• | The relative quantum of fees paid for non-audit services compared to the quantum of audit fees. |
J M Schubert | ||
Chairman | R J Norris | |
15 August 2007 | Managing Director and Chief Executive Officer |
Partner
15 August 2007
under the Professional Standards Act 1994 (NSW).
AIFRS(1) | AGAAP(1) | ||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||
$M | $M | $M | $M | $M | |||||||||||||||||
Income Statement | |||||||||||||||||||||
Net interest income | 7,036 | 6,514 | 6,026 | 5,410 | 5,026 | ||||||||||||||||
Other operating income | 6,272 | 5,567 | 5,076 | 5,081 | 4,373 | ||||||||||||||||
Total operating income | 13,308 | 12,081 | 11,102 | 10,491 | 9,399 | ||||||||||||||||
Loan Impairment expense | 434 | 398 | 322 | 276 | 305 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Comparable business | 6,427 | 5,994 | 5,719 | 5,500 | 5,312 | ||||||||||||||||
Initiatives including Which new Bank | — | — | 150 | 749 | 239 | ||||||||||||||||
Total operating expenses | 6,427 | 5,994 | 5,869 | 6,249 | 5,551 | ||||||||||||||||
Net profit before income tax | 6,447 | 5,689 | 4,911 | 3,966 | 3,543 | ||||||||||||||||
Corporate tax expense | (1,816 | ) | (1,605 | ) | (1,409 | ) | (1,262 | ) | (958 | ) | |||||||||||
Minority interests | (27 | ) | (31 | ) | (10 | ) | (9 | ) | (6 | ) | |||||||||||
Net profit after income tax (“cash basis”) | 4,604 | 4,053 | 3,492 | 2,695 | 2,579 | ||||||||||||||||
Defined benefit superannuation plan income/(expense) | 5 | (25 | ) | (53 | ) | — | — | ||||||||||||||
Treasury shares valuation adjustment | (75 | ) | (100 | ) | (39 | ) | — | — | |||||||||||||
Appraisal value uplift/(reduction) | — | — | — | 201 | (245 | ) | |||||||||||||||
One-off AIFRS mismatches | (64 | ) | — | — | — | — | |||||||||||||||
Goodwill amortisation | — | — | — | (324 | ) | (322 | ) | ||||||||||||||
Net profit after income tax attributable to Equity holders of the Bank | 4,470 | 3,928 | 3,400 | 2,572 | 2,012 | ||||||||||||||||
Contributions to profit (after tax) | |||||||||||||||||||||
Banking | 3,763 | 3,227 | 2,913 | 2,675 | 2,376 | ||||||||||||||||
Funds management | 492 | 400 | 351 | 274 | 233 | ||||||||||||||||
Insurance | 253 | 215 | 156 | 129 | 65 | ||||||||||||||||
Net profit after income tax (“underlying basis”) | 4,508 | 3,842 | 3,420 | 3,078 | 2,674 | ||||||||||||||||
Shareholder investment returns | 96 | 66 | 177 | 152 | 73 | ||||||||||||||||
Which new Bank | — | — | (105 | ) | (535 | ) | (168 | ) | |||||||||||||
Profit on sale of the Hong Kong Insurance Business | — | 145 | — | — | — | ||||||||||||||||
Net profit after income tax (“cash basis”) | 4,604 | 4,053 | 3,492 | 2,695 | 2,579 | ||||||||||||||||
Defined benefit superannuation plan expense | 5 | (25 | ) | (53 | ) | — | — | ||||||||||||||
Treasury shares valuation adjustment | (75 | ) | (100 | ) | (39 | ) | — | — | |||||||||||||
One-off AIFRS mismatches | (64 | ) | — | — | — | — | |||||||||||||||
Goodwill amortisation | — | — | — | (324 | ) | (322 | ) | ||||||||||||||
Appraisal value uplift/(reduction) | — | — | — | 201 | (245 | ) | |||||||||||||||
Net profit after income tax | 4,470 | 3,928 | 3,400 | 2,572 | 2,012 | ||||||||||||||||
Balance Sheet | |||||||||||||||||||||
Loans, advances and other receivables | 299,779 | 259,176 | 228,346 | 189,391 | 160,347 | ||||||||||||||||
Total assets | 425,139 | 369,103 | 337,404 | 305,995 | 265,110 | ||||||||||||||||
Deposits and other public borrowings | 203,382 | 173,227 | 168,026 | 163,177 | 140,974 | ||||||||||||||||
Total liabilities | 400,695 | 347,760 | 314,761 | 281,110 | 242,958 | ||||||||||||||||
Shareholders’ equity | 24,444 | 21,343 | 22,643 | 22,405 | 20,024 | ||||||||||||||||
Net tangible assets | 15,158 | 12,087 | 10,938 | 17,700 | 14,995 | ||||||||||||||||
Risk weighted assets | 245,347 | 216,438 | 189,559 | 169,321 | 146,808 | ||||||||||||||||
Average interest earning assets | 316,048 | 274,798 | 244,708 | 214,187 | 188,270 | ||||||||||||||||
Average interest bearing liabilities | 294,792 | 255,100 | 225,597 | 197,532 | 174,737 | ||||||||||||||||
Assets (on Balance Sheet) | |||||||||||||||||||||
Australia | 341,588 | 304,831 | 280,255 | 252,652 | 221,248 | ||||||||||||||||
New Zealand | 55,916 | 43,318 | 41,383 | 35,059 | 27,567 | ||||||||||||||||
Other | 27,635 | 20,954 | 15,766 | 18,284 | 16,295 | ||||||||||||||||
Total assets | 425,139 | 369,103 | 337,404 | 305,995 | 265,110 | ||||||||||||||||
(1) | The Group adopted AIFRS accounting standards for the reporting period beginning 1 July 2004. As a result the 2007, 2006 and 2005 results are presented on an AIFRS basis, while the 2004 and 2003 results are presented on the previous AGAAP basis. |
AIFRS(1) | AGAAP(1) | ||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||
Shareholder Summary | |||||||||||||||||||||
Dividend per share – fully franked (cents) | 256 | 224 | 197 | 183 | 154 | ||||||||||||||||
Dividend cover – statutory (times) | 1.4 | 1.4 | 1.3 | 1.1 | 0.9 | ||||||||||||||||
Dividend cover – cash (times) | 1.4 | 1.4 | 1.3 | 1.1 | 1.3 | ||||||||||||||||
Dividend cover – underlying (times) | 1.3 | 1.3 | 1.3 | 1.3 | 1.4 | ||||||||||||||||
Earnings per share (cents) | |||||||||||||||||||||
Basic | |||||||||||||||||||||
Statutory | 344.7 | 308.2 | 259.6 | 196.9 | 157.4 | ||||||||||||||||
Cash basis | 353.0 | 315.9 | 264.8 | 206.6 | 202.6 | ||||||||||||||||
Underlying basis | 345.6 | 299.4 | 259.2 | 237.1 | 210.2 | ||||||||||||||||
Fully diluted | |||||||||||||||||||||
Statutory | 339.7 | 303.1 | 255.3 | 196.8 | 157.3 | ||||||||||||||||
Cash basis | 347.8 | 310.5 | 260.5 | 206.5 | 202.5 | ||||||||||||||||
Underlying basis | 340.7 | 294.7 | 255.0 | 237.0 | 210.0 | ||||||||||||||||
Dividend payout ratio (%) | |||||||||||||||||||||
Statutory | 75.2 | 73.3 | 77.0 | 93.5 | 97.7 | ||||||||||||||||
Cash basis | 73.0 | 71.0 | 74.9 | 89.1 | 75.9 | ||||||||||||||||
Underlying basis | 74.5 | 74.9 | 76.5 | 77.6 | 73.3 | ||||||||||||||||
Net tangible assets per share ($) | 11.65 | 9.42 | 8.54 | 12.22 | 11.41 | ||||||||||||||||
Weighted average number of shares (statutory basic) | 1,281 | 1,275 | 1,260 | 1,256 | 1,253 | ||||||||||||||||
Weighted average number of shares (fully diluted) | 1,344 | 1,329 | 1,316 | 1,257 | 1,254 | ||||||||||||||||
Weighted average number of shares (cash basic) | 1,289 | 1,283 | 1,269 | 1,256 | 1,253 | ||||||||||||||||
Weighted average number of shares (cash fully diluted) | 1,352 | 1,338 | 1,325 | 1,257 | 1,254 | ||||||||||||||||
Number of Shareholders | 696,118 | 698,552 | 704,906 | 714,901 | 746,073 | ||||||||||||||||
Share prices for the year ($) | |||||||||||||||||||||
Trading high | 56.16 | 47.41 | 38.52 | 33.54 | 32.75 | ||||||||||||||||
Trading low | 42.98 | 36.62 | 28.79 | 27.00 | 23.05 | ||||||||||||||||
End (closing price) | 55.25 | 44.41 | 37.95 | 32.58 | 29.55 | ||||||||||||||||
Performance Ratios (%) | |||||||||||||||||||||
Return on average Shareholders’ equity | |||||||||||||||||||||
Statutory | 20.7 | 20.4 | 18.2 | 12.5 | 10.5 | ||||||||||||||||
Cash basis | 22.1 | 21.3 | 18.8 | 12.7 | 13.1 | ||||||||||||||||
Underlying basis | 21.6 | 20.2 | 18.4 | 14.6 | 13.6 | ||||||||||||||||
Return on average total assets | |||||||||||||||||||||
Statutory | 1.2 | 1.1 | 1.1 | 0.9 | 0.8 | ||||||||||||||||
Cash basis | 1.2 | 1.1 | 1.1 | 0.9 | 1.0 | ||||||||||||||||
Underlying basis | 1.2 | 1.1 | 1.1 | 1.1 | 1.0 | ||||||||||||||||
Capital adequacy – Tier One | 7.14 | 7.56 | 7.46 | 7.43 | 6.96 | ||||||||||||||||
Capital adequacy – Tier Two | 3.41 | 3.10 | 3.21 | 3.93 | 4.21 | ||||||||||||||||
Deductions | (0.79 | ) | (1.00 | ) | (0.92 | ) | (1.11 | ) | (1.44 | ) | |||||||||||
Capital adequacy – Total | 9.76 | 9.66 | 9.75 | 10.25 | 9.73 | ||||||||||||||||
Net interest margin | 2.19 | 2.34 | 2.43 | 2.53 | 2.67 | ||||||||||||||||
Other Information (numbers) | |||||||||||||||||||||
Full-time staff equivalent | 37,873 | 36,664 | 35,313 | 36,296 | 35,845 | ||||||||||||||||
Branches/services centres (Australia) | 1,010 | 1,005 | 1,006 | 1,012 | 1,014 | ||||||||||||||||
Agencies (Australia) | 3,833 | 3,836 | 3,864 | 3,866 | 3,893 | ||||||||||||||||
ATMs (proprietary) | 3,242 | 3,191 | 3,154 | 3,109 | 3,116 | ||||||||||||||||
EFTPOS terminals | 177,232 | 148,220 | 137,240 | 126,049 | 129,259 | ||||||||||||||||
EzyBanking locations | 907 | 862 | 841 | 815 | 760 | ||||||||||||||||
Productivity | |||||||||||||||||||||
Total net operating income per full-time (equivalent) employee ($) | 351,385 | 329,506 | 314,388 | 289,040 | 262,212 | ||||||||||||||||
Staff expense/Total operating income (%) | 24.4 | 23.4 | 24.1 | 24.3 | 26.4 | ||||||||||||||||
Total operating expenses/Total operating income (%) | 48.3 | 49.6 | 52.9 | 59.6 | 59.1 | ||||||||||||||||
(1) | The Group adopted AIFRS accounting standards for the reporting period beginning 1 July 2004. As a result the 2007, 2006 and 2005 results are presented on an AIFRS basis, while the 2004 and 2003 results are presented on the previous AGAAP basis. |
Income Statement | 52 | |||
Balance Sheet | 53 | |||
Statement of Recognised Income and Expense | 54 | |||
Statement of Cash Flows | 55 | |||
Note 1 Accounting Policies | 57 | |||
Note 2 Dividends | 58 | |||
Note 3 Financial Reporting by Segments | 59 | |||
Note 4 Earnings Per Share | 62 | |||
Note 5 Share Capital – Employee Share Plans | 63 |
For the year ended 30 June 2007
Group | ||||||||
2007 | 2006 | |||||||
$M | $M | |||||||
Interest income | 23,862 | 19,758 | ||||||
Interest expense | 16,826 | 13,244 | ||||||
Net interest income | 7,036 | 6,514 | ||||||
Other operating income | 3,341 | 3,036 | ||||||
Net banking operating income(1) | 10,377 | 9,550 | ||||||
Funds management income | 1,871 | 1,589 | ||||||
Investment revenue | 2,120 | 2,098 | ||||||
Claims and policyholder liability expense | (2,020 | ) | (2,064 | ) | ||||
Net funds management operating income | 1,971 | 1,623 | ||||||
Premiums from insurance contracts | 1,117 | 1,052 | ||||||
Investment revenue | 858 | 1,031 | ||||||
Claims and policyholder liability expense from insurance contracts | (932 | ) | (970 | ) | ||||
Insurance margin on services operating income | 1,043 | 1,113 | ||||||
Total net operating income | 13,391 | 12,286 | ||||||
Loan Impairment expense | 434 | 398 | ||||||
Operating expenses: | ||||||||
Comparable business | 6,427 | 5,994 | ||||||
Which new Bank | — | — | ||||||
Total operating expenses | 6,427 | 5,994 | ||||||
Defined benefit superannuation plan income/(expense) | 8 | (35 | ) | |||||
Net profit before income tax | 6,538 | 5,859 | ||||||
Corporate tax expense | 1,775 | 1,569 | ||||||
Policyholder tax expense | 266 | 331 | ||||||
Net profit after income tax | 4,497 | 3,959 | ||||||
Minority interests | (27 | ) | (31 | ) | ||||
Net profit attributable to Equity holders of the Bank | 4,470 | 3,928 | ||||||
(1) | Net Banking operating income of the Bank is greater than the Group due to the receipt of tax exempt intragroup dividends. |
Group | ||||||||||||
2007 | 2006 | |||||||||||
Note | Cents per share | |||||||||||
Earnings per share: | ||||||||||||
Basic | 4 | 344.7 | 308.2 | |||||||||
Fully diluted | 4 | 339.7 | 303.1 | |||||||||
Dividends per share attributable to Shareholders of the Bank: | ||||||||||||
Ordinary shares | 2 | 256 | 224 | |||||||||
Trust preferred securities (TPS) — issued 8 March 2006 | 7,821 | — | ||||||||||
(1) | Instruments reclassified to loan capital on adoption of AIFRS from 1 July 2005. |
$M | $M | |||||||
Net profit after income tax comprises: | ||||||||
Net profit after income tax (“underlying basis”) | 4,508 | 3,842 | ||||||
Shareholder investment returns (after tax) | 96 | 66 | ||||||
Profit on sale of the Hong Kong Insurance Business | — | 145 | ||||||
Net profit after income tax (“cash basis”) | 4,604 | 4,053 | ||||||
Defined benefit superannuation plan income/(expense) | 5 | 25 | ||||||
Treasury shares valuation adjustment | (75 | ) | (100 | ) | ||||
One-off AIFRS mismatches | (64 | ) | — | |||||
Net profit after income tax (“statutory basis”) | 4,470 | 3,928 | ||||||
52 Commonwealth Bank of Australia Concise Annual Report 2007
As at 30 June 2007
Group | ||||||||
2007 | 2006 | |||||||
$M | $M | |||||||
Assets | ||||||||
Cash and liquid assets(1) | 10,108 | 5,868 | ||||||
Receivables due from other financial institutions | 5,495 | 7,107 | ||||||
Assets at fair value through Income Statement: | ||||||||
Trading | 21,469 | 15,758 | ||||||
Insurance | 23,519 | 24,437 | ||||||
Other(1) | 4,073 | 2,207 | ||||||
Derivative assets | 12,743 | 9,675 | ||||||
Available-for-sale investments | 9,672 | 11,203 | ||||||
Loans, advances and other receivables | 299,779 | 259,176 | ||||||
Bank acceptances of customers | 18,721 | 18,310 | ||||||
Investment property | — | 258 | ||||||
Property, plant and equipment | 1,436 | 1,313 | ||||||
Investment in associates | 836 | 190 | ||||||
Intangible assets | 7,835 | 7,809 | ||||||
Deferred tax assets | 922 | 650 | ||||||
Other assets | 7,157 | 5,141 | ||||||
423,765 | 369,102 | |||||||
Assets held for sale | 1,374 | 1 | ||||||
Total Assets | 425,139 | 369,103 | ||||||
Liabilities | ||||||||
Deposits and other public borrowings | 203,382 | 173,227 | ||||||
Payables due to other financial institutions | 14,386 | 11,184 | ||||||
Liabilities at fair value through Income Statement | 19,431 | 13,811 | ||||||
Derivative liabilities | 16,680 | 10,820 | ||||||
Bank acceptances | 18,721 | 18,310 | ||||||
Current tax liabilities | 882 | 378 | ||||||
Deferred tax liabilities | 1,576 | 1,336 | ||||||
Other provisions | 878 | 821 | ||||||
Insurance policy liabilities | 21,613 | 22,225 | ||||||
Debt issues | 85,490 | 78,591 | ||||||
Managed funds units on issue | 310 | 1,109 | ||||||
Bills payable and other liabilities | 7,346 | 6,053 | ||||||
390,695 | 337,865 | |||||||
Loan capital | 10,000 | 9,895 | ||||||
Total Liabilities | 400,695 | 347,760 | ||||||
Net Assets | 24,444 | 21,343 | ||||||
Shareholders’ Equity | ||||||||
Share capital: | ||||||||
Ordinary share capital | 14,483 | 13,505 | ||||||
Other equity instruments | 939 | 939 | ||||||
Reserves | 2,143 | 1,904 | ||||||
Retained profits | 6,367 | 4,487 | ||||||
Shareholders’ equity attributable to Equity holders of the Bank | 23,932 | 20,835 | ||||||
Minority interests: | ||||||||
Controlled entities | 512 | 508 | ||||||
Total Minority Interests | 512 | 508 | ||||||
Total Shareholders’ equity | 24,444 | 21,343 | ||||||
(1) | During the current year, certain ASB Bank overnight settlement account balances were reclassified from Assets at fair value through Income Statement to Cash and liquid assets. Prior periods have been restated on a consistent basis. |
Commonwealth Bank of Australia Concise Annual Report 2007 53
For the year ended 30 June 2007
Group | ||||||||
2007 | 2006 | |||||||
$M | $M | |||||||
Actuarial gains and losses from defined benefit superannuation plans | 414 | 387 | ||||||
Gains and losses on cash flow hedging instruments: | ||||||||
Recognised in equity | 429 | 89 | ||||||
Transferred to the Income Statement | 120 | (58 | ) | |||||
Gains and losses on available-for-sale investments: | ||||||||
Recognised in equity | 28 | 51 | ||||||
Transferred to the Income Statement on disposal | (138 | ) | (33 | ) | ||||
Transferred to the Income Statement on impairment | — | (3 | ) | |||||
Revaluation of properties | 79 | 19 | ||||||
Transfer from Foreign Currency Translation Reserve to the Income Statement on disposal | — | 41 | ||||||
Exchange differences on translation of foreign operations | 54 | (232 | ) | |||||
Income tax on items transferred directly to/from equity: | ||||||||
Foreign Currency Translation Reserve | (13 | ) | 13 | |||||
Available-for-sale investments revaluation reserve | 10 | (6 | ) | |||||
Revaluation of properties | (23 | ) | (4 | ) | ||||
Cash flow hedge reserve | (168 | ) | (11 | ) | ||||
Net income recognised directly in equity | 792 | 253 | ||||||
Profit for the period | 4,497 | 3,959 | ||||||
Total net income recognised for the period | 5,289 | 4,212 | ||||||
Attributable to: | ||||||||
Equity holders of the Bank | 5,262 | 4,181 | ||||||
Minority interests | 27 | 31 | ||||||
Total net income recognised for the period | 5,289 | 4,212 | ||||||
54 Commonwealth Bank of Australia Concise Annual Report 2007
For the year ended 30 June 2007
Group | ||||||||
2007 | 2006 | |||||||
$M | $M | |||||||
Cash Flows From Operating Activities | ||||||||
Interest received | 23,123 | 19,712 | ||||||
Interest paid | (16,405 | ) | (12,555 | ) | ||||
Other operating income received | 4,627 | 4,319 | ||||||
Expenses paid | (5,699 | ) | (5,813 | ) | ||||
Income taxes paid | (1,942 | ) | (1,980 | ) | ||||
Assets at fair value through Income Statement (excluding life insurance) | (1,715 | ) | (307 | ) | ||||
Life insurance: | ||||||||
Investment income | 2,296 | 2,399 | ||||||
Premiums received(2) | 2,431 | 2,338 | ||||||
Policy payments(2) | (5,346 | ) | (4,938 | ) | ||||
Liabilities at fair value through Income Statement (excluding life insurance) | 5,722 | 1,445 | ||||||
Cash Flows from operating activities before changes in operating assets and liabilities | 7,092 | 4,620 | ||||||
Changes in operating assets and liabilities arising from cash flow movements | ||||||||
Movement in available-for-sale investments: | ||||||||
Purchases | (22,214 | ) | (28,189 | ) | ||||
Proceeds from sale | 728 | 646 | ||||||
Proceeds at or close to maturity | 21,891 | 24,831 | ||||||
Lodgement of deposits with regulatory authorities | (8 | ) | (29 | ) | ||||
Net (increase) in loans, advances and other receivables | (37,885 | ) | (31,996 | ) | ||||
Net (increase)/decrease in receivables due from other financial institutions not at call | 833 | (881 | ) | |||||
Net (increase)/decrease in securities purchased under agreements to resell | (1,647 | ) | 537 | |||||
Life insurance business: | ||||||||
Purchase of insurance assets at fair value through Income Statement | (8,476 | ) | (8,078 | ) | ||||
Proceeds from sale/maturity of insurance assets at fair value through Income Statement | 8,842 | 9,398 | ||||||
Net increase in deposits and other borrowings | 26,361 | 12,799 | ||||||
Net proceeds from issuance of debt securities | 6,316 | 14,605 | ||||||
Net increase in payables due to other financial institutions not at call | 1,865 | 2,571 | ||||||
Net increase/(decrease) in securities sold under agreements to repurchase | 1,943 | 328 | ||||||
Changes in operating assets and liabilities arising from cash flow movements | (1,451 | ) | (3,458 | ) | ||||
Net cash provided by/(used in) operating activities | 5,641 | 1,162 | ||||||
Cash Flows from Investing Activities | ||||||||
Payment for acquisition of entities and management rights | (7 | ) | (414 | ) | ||||
Proceeds from disposal of controlled entities | — | 553 | ||||||
Proceeds from disposal of entities and businesses (net of cash disposals) | 16 | 35 | ||||||
Dividends received | 3 | 4 | ||||||
Proceeds from sale of property, plant and equipment | 53 | 32 | ||||||
Purchases of property, plant and equipment | (314 | ) | (385 | ) | ||||
Payment for acquisitions of investments in associates/joint ventures | (6 | ) | (152 | ) | ||||
Purchases of intangible assets | (130 | ) | (90 | ) | ||||
Purchases of assets held for sale | (1,091 | ) | — | |||||
Net decrease in other assets | (800 | ) | 31 | |||||
Net cash (used in)/provided by investing activities | (2,276 | ) | (386 | ) | ||||
(1) | It should be noted that the Group does not use this accounting Statement of Cash Flows in the internal management of its liquidity positions. | |
(2) | Represents gross premiums and policy payments before splitting between policyholders and Shareholders. |
Commonwealth Bank of Australia Concise Annual Report 2007 55
For the year ended 30 June 2007
Group | ||||||||
2007 | 2006 | |||||||
$M | $M | |||||||
Cash Flows from Financing Activities | ||||||||
Buy-back of shares | — | (500 | ) | |||||
Proceeds from issue of shares (net of costs) | 19 | 49 | ||||||
Proceeds from issue of other equity instruments (net of costs) | — | 939 | ||||||
Dividends paid (excluding Dividend Reinvestment Plan) | (2,284 | ) | (2,163 | ) | ||||
Net movement in other liabilities | 219 | 139 | ||||||
Net sale/(purchase) of treasury shares | 55 | (10 | ) | |||||
Issue of loan capital | 1,865 | 2,446 | ||||||
Redemption of loan capital | (965 | ) | (915 | ) | ||||
Other | (228 | ) | 1 | |||||
Net cash (used in) financing activities | (1,319 | ) | (14 | ) | ||||
Net increase/(decrease) in cash and cash equivalents | 2,046 | 762 | ||||||
Cash and cash equivalents at beginning of period | 2,038 | 1,276 | ||||||
Cash and cash equivalents at end of period | 4,084 | 2,038 | ||||||
(1) | It should be noted that the Group does not use this accounting Statement of Cash Flows in the internal management of its liquidity positions. |
56 Commonwealth Bank of Australia Concise Annual Report 2007
Commonwealth Bank of Australia Concise Annual Report 2007 57
Group | ||||||||
2007 | 2006 | |||||||
$M | $M | |||||||
Ordinary Shares | ||||||||
Interim ordinary dividend (fully franked) (2007: 107 cents, 2006: 94 cents) | ||||||||
Interim ordinary dividend paid — cash component only | 862 | 992 | ||||||
Interim ordinary dividend paid — dividend reinvestment plan | 518 | 219 | ||||||
Total dividends paid | 1,380 | 1,211 | ||||||
Other Equity Instruments(1) | ||||||||
Dividends paid | 55 | — | ||||||
Total dividends provided for, reserved or paid | 1,435 | 1,211 | ||||||
Other provision carried | 7 | 6 | ||||||
Dividends proposed and not recognised as a liability (fully franked) (2007: 149 cents, 2006: 130 cents, 2005: 112 cents)(2) | 1,939 | 1,668 | ||||||
Provision for dividends | ||||||||
Balance as at 1 July 2006 | 6 | 14 | ||||||
Provisions made during the year | 3,048 | 2,646 | ||||||
Provisions used during the year | (3,048 | ) | (2,645 | ) | ||||
Provisions reversed during the year | — | (9 | ) | |||||
Balance at 30 June 2007 | 6 | 6 | ||||||
(1) | Reclassified to loan capital on adoption of AIFRS from 1 July 2005. | |
(2) | The 2005 final dividend was satisfied by cash disbursements of $1,173 million and the issue of $261 million of ordinary shares through the dividend reinvestment plan. The 2006 final dividend was satisfied by cash disbursements of $1,368 million and the issue of $300 million of ordinary shares through the dividend reinvestment plan. The 2007 final dividend is expected to be satisfied by cash disbursements of $1,454 million and the estimated issue of $485 million of ordinary shares through the dividend reinvestment plan. |
Full Year | DRP | |||||||||||||||||||||||||||
Half-year | Full Year | Payout Ratio | Participation | |||||||||||||||||||||||||
Cents Per | Payout Ratio(1) | Payout Ratio(1) | Cash Basis(2) | DRP | Rate(3) | |||||||||||||||||||||||
Half Year Ended | Share | Date Paid | % | % | % | Price | % | |||||||||||||||||||||
31 December 2004 | 85 | 31/03/05 | 65.6 | — | — | 35.90 | 18.6 | |||||||||||||||||||||
30 June 2005 | 112 | 23/09/05 | 88.6 | 77.0 | 74.9 | 37.19 | 18.2 | |||||||||||||||||||||
31 December 2005 | 94 | 05/04/06 | 60.6 | — | — | 43.89 | 18.1 | |||||||||||||||||||||
30 June 2006 | 130 | 05/10/06 | 86.5 | 73.3 | 71.0 | 45.24 | 18.0 | |||||||||||||||||||||
31 December 2006 | 107 | 05/04/07 | 63.0 | — | — | 50.02 | 37.6 | |||||||||||||||||||||
30 June 2007(4) | 149 | — | 86.1 | 75.2 | 73.0 | — | — | |||||||||||||||||||||
(1) | Dividend Payout Ratio: dividends divided by statutory earnings. | |
(2) | Payout ratio based on net profit after tax before defined benefit superannuation plan expense, treasury shares valuation adjustment, and one-off AIFRS mismatches. Includes Which new Bank expenses for the year ended 30 June 2005 and the profit on sale of CMG Asia for the year ended 30 June 2006. | |
(3) | DRP Participation Rate: the percentage of total issued share capital participating in the Dividend Reinvestment Plan. | |
(4) | Dividend expected to be paid on 5 October 2007. |
58 Commonwealth Bank of Australia Concise Annual Report 2007
Group | ||||||||||||||||
Year Ended 30 June 2007 | ||||||||||||||||
Primary Segment | Funds | |||||||||||||||
Business Segments | Banking | Management | Insurance | Total | ||||||||||||
Income Statement | $M | $M | $M | $M | ||||||||||||
Interest income | 23,862 | — | — | 23,862 | ||||||||||||
Insurance premium and related revenue | — | — | 1,117 | 1,117 | ||||||||||||
Other income | 3,341 | 3,991 | 858 | 8,190 | ||||||||||||
Total revenue | 27,203 | 3,991 | 1,975 | 33,169 | ||||||||||||
Interest expense | 16,826 | — | — | 16,826 | ||||||||||||
Segment result before income tax | 5,154 | 805 | 579 | 6,538 | ||||||||||||
Income tax expense | (1,423 | ) | (390 | ) | (228 | ) | (2,041 | ) | ||||||||
Segment result after income tax | 3,731 | 415 | 351 | 4,497 | ||||||||||||
Minority interests | (27 | ) | — | — | (27 | ) | ||||||||||
Segment result after income tax and minority interests | 3,704 | 415 | 351 | 4,470 | ||||||||||||
Net profit attributable to Shareholders of the Bank | 3,704 | 415 | 351 | 4,470 | ||||||||||||
Non—Cash Expenses | ||||||||||||||||
Intangible asset amortisation | 69 | — | 1 | 70 | ||||||||||||
Loan impairment expense | 434 | — | — | 434 | ||||||||||||
Depreciation | 191 | 3 | 6 | 200 | ||||||||||||
Defined benefit superannuation plan (income)/expense | (8 | ) | — | — | (8 | ) | ||||||||||
Other | 60 | 41 | — | 101 | ||||||||||||
Balance Sheet | ||||||||||||||||
Total assets | 397,093 | 18,237 | 9,809 | 425,139 | ||||||||||||
Acquisition of property, plant & equipment, intangibles and other non—current assets | 410 | 2 | 38 | 450 | ||||||||||||
Investments in associates | 145 | 680 | 11 | 836 | ||||||||||||
Total liabilities | 377,467 | 15,397 | 7,831 | 400,695 | ||||||||||||
Commonwealth Bank of Australia Concise Annual Report 2007 59
Group | ||||||||||||||||
Year Ended 30 June 2006 | ||||||||||||||||
Primary Segment | Funds | |||||||||||||||
Business Segments | Banking | Management | Insurance | Total | ||||||||||||
Income Statement | $M | $M | $M | $M | ||||||||||||
Interest income | 19,758 | — | — | 19,758 | ||||||||||||
Insurance premium and related revenue | — | — | 1,052 | 1,052 | ||||||||||||
Other income | 3,036 | 3,687 | 1,031 | 7,754 | ||||||||||||
Total revenue | 22,794 | 3,687 | 2,083 | 28,564 | ||||||||||||
Interest expense | 13,244 | — | — | 13,244 | ||||||||||||
Segment result before income tax | 4,559 | 643 | 657 | 5,859 | ||||||||||||
Income tax expense | (1,328 | ) | (331 | ) | (241 | ) | (1,900 | ) | ||||||||
Segment result after income tax | 3,231 | 312 | 416 | 3,959 | ||||||||||||
Minority interests | (28 | ) | (3 | ) | — | (31 | ) | |||||||||
Segment result after income tax and minority interests | 3,203 | 309 | 416 | 3,928 | ||||||||||||
Net profit attributable to Shareholders of the Bank | 3,203 | 309 | 416 | 3,928 | ||||||||||||
Non—Cash Expenses | ||||||||||||||||
Intangible asset amortisation | 49 | — | — | 49 | ||||||||||||
Loan impairment expense | 398 | — | — | 398 | ||||||||||||
Depreciation | 157 | 2 | 5 | 164 | ||||||||||||
Defined benefit superannuation plan (income)/expense | 35 | — | — | 35 | ||||||||||||
Other | 65 | 1 | — | 66 | ||||||||||||
Balance Sheet | ||||||||||||||||
Total assets | 340,254 | 19,201 | 9,648 | 369,103 | ||||||||||||
Acquisition of property, plant & equipment, intangibles and other non—current assets | 510 | 94 | 8 | 612 | ||||||||||||
Investments in associates | 106 | 52 | 32 | 190 | ||||||||||||
Total liabilities | 324,185 | 16,423 | 7,152 | 347,760 | ||||||||||||
60 Commonwealth Bank of Australia Concise Annual Report 2007
Group | ||||||||||||||||
Secondary Segment | Year Ended 30 June | |||||||||||||||
Geographical Segments | 2007 | 2007 | 2006 | 2006 | ||||||||||||
Income Statement | $M | % | $M | % | ||||||||||||
Revenue | ||||||||||||||||
Australia | 26,350 | 79.5 | 22,802 | 79.8 | ||||||||||||
New Zealand | 4,517 | 13.6 | 4,021 | 14.1 | ||||||||||||
Other countries(1) | 2,302 | 6.9 | 1,741 | 6.1 | ||||||||||||
Total Revenue | 33,169 | 100.0 | 28,564 | 100.0 | ||||||||||||
Net Profit Attributable to Shareholders of the Bank | ||||||||||||||||
Australia | 3,538 | 79.2 | 3,200 | 81.5 | ||||||||||||
New Zealand | 492 | 11.0 | 387 | 9.8 | ||||||||||||
Other countries(1) | 440 | 9.8 | 341 | 8.7 | ||||||||||||
Total Net Profit Attributable to Shareholders of the Bank | 4,470 | 100.0 | 3,928 | 100.0 | ||||||||||||
Assets | ||||||||||||||||
Australia | 341,588 | 80.3 | 304,831 | 82.6 | ||||||||||||
New Zealand | 55,916 | 13.2 | 43,318 | 11.7 | ||||||||||||
Other countries(1) | 27,635 | 6.5 | 20,954 | 5.7 | ||||||||||||
Total Assets | 425,139 | 100.0 | 369,103 | 100.0 | ||||||||||||
Acquisition of Property, Plant & Equipment, Intangibles and Other non—current assets | ||||||||||||||||
Australia | 360 | 80.0 | 564 | 92.2 | ||||||||||||
New Zealand | 80 | 17.8 | 34 | 5.5 | ||||||||||||
Other countries(1) | 10 | 2.2 | 14 | 2.3 | ||||||||||||
Total | 450 | 100.0 | 612 | 100.0 | ||||||||||||
(1) | Other countries were: United Kingdom, United States of America, Japan, Singapore, Malta, Hong Kong, Grand Cayman, Fiji, Indonesia, China and Vietnam. |
Commonwealth Bank of Australia Concise Annual Report 2007 61
Group | ||||||||
2007 | 2006 | |||||||
C | C | |||||||
Earnings per Ordinary Share | ||||||||
Basic | 344.7 | 308.2 | ||||||
Fully diluted | 339.7 | 303.1 | ||||||
$M | $M | |||||||
Reconciliation of earnings used in the calculation of earnings per share | ||||||||
Profit after income tax | 4,497 | 3,959 | ||||||
Less: Other equity instrument dividends | (55 | ) | — | |||||
Less: Other dividends — ASB preference shares | — | — | ||||||
Less: Minority interests | (27 | ) | (31 | ) | ||||
Earnings used in calculation of basic earnings per share | 4,415 | 3,928 | ||||||
Add: Profit impact of assumed conversions Loan capital | 150 | 100 | ||||||
Earnings used in calculation of fully diluted earnings per share | 4,565 | 4,028 | ||||||
Number of Shares | ||||||||
2007 | 2006 | |||||||
M | M | |||||||
Weighted average number of ordinary shares (net of treasury shares) used in the calculation of basic earnings per share | 1,281 | 1,275 | ||||||
Effect of dilutive securities — share options and convertible loan capital instruments | 62 | 54 | ||||||
Weighted average number of ordinary shares (net of treasury shares) used in the calculation of fully diluted earnings per share(1) | 1,344 | 1,329 | ||||||
C | C | |||||||
Cash Basis Earnings Per Ordinary Share | ||||||||
Basic | 353.0 | 315.9 | ||||||
Fully diluted | 347.8 | 310.5 | ||||||
$M | $M | |||||||
Reconciliation of earnings used in the calculation of basic cash basis earnings per share | ||||||||
Earnings used in calculation of earnings per share (as above) | 4,415 | 3,928 | ||||||
Less: Defined benefit superannuation plan expense after income tax | (5 | ) | 25 | |||||
Add: Treasury shares valuation adjustment after income tax | 75 | 100 | ||||||
Add: One-off AIFRS mismatches | 64 | — | ||||||
Earnings used in calculation of basic cash basis earnings per share | 4,549 | 4,053 | ||||||
Add: Profit impact of assumed conversions Loan capital | 150 | 100 | ||||||
Earnings used in calculation of fully diluted cash basis earnings per share | 4,699 | 4,153 | ||||||
Number of Shares | ||||||||
2007 | 2006 | |||||||
M | M | |||||||
Weighted average number of ordinary shares (net of treasury shares) used in calculation of basic cash basis earnings per share | 1,289 | 1,283 | ||||||
Effect of dilutive securities — share options and convertible loan capital instruments | 62 | 55 | ||||||
Weighted average number of ordinary shares (net of treasury shares) used in calculation of fully diluted cash basis earnings per share(1) | 1,352 | 1,338 | ||||||
(1) | Figures presented in this table have been rounded. |
62 Commonwealth Bank of Australia Concise Annual Report 2007
• | Commonwealth Bank Employee Share Acquisition Plan (“ESAP”); | |
• | Commonwealth Bank Equity Participation Plan (“EPP”); | |
• | Commonwealth Bank Equity Reward Plan (“ERP”); and | |
• | Commonwealth Bank Non-Executive Directors Share Plan (“NEDSP”). |
Allotment Date | Participants | Shares Purchased | Average Purchase Price | |||||||||
14 August 2006 | 51 | 37,814 | $ | 44.56 | ||||||||
7 September 2006 | 77 | 135,923 | $ | 46.25 | ||||||||
13 November 2006 | 1 | 90 | $ | 48.24 | ||||||||
13 March 2007 | 49 | 5,649 | $ | 49.98 | ||||||||
Details of Movements | July 05-June 06 | July 06-June 07 | ||||||
Shares held under the Plan at the beginning of year (no.) | 2,616,771 | 823,084 | ||||||
Shares allocated during year (no.) | 56 | — | ||||||
Shares vested during year (no.) | (1,736,939 | ) | (759,640 | ) | ||||
Shares forfeited during year (no.) | (56,804 | ) | — | |||||
Shares held under the Plan at end of year (no.) | 823,084 | 63,444 | ||||||
Commonwealth Bank of Australia Concise Annual Report 2007 63
64 Commonwealth Bank of Australia Concise Annual Report 2007
July 2005-June 2006 | July 2006-June 2007 | |||||||||||||||
Year of Grant | 2000(3)(4) | 2001(5) | 2000(3) | 2001(5) | ||||||||||||
Exercise Price(1) (2) | $ | 26.97 | $ | 30.12 | $ | 26.97 | $ | 30.12 | ||||||||
Held by participants at the start of the year (no.) | 197,500 | 1,801,600 | 137,500 | 753,500 | ||||||||||||
Granted during year (no.) | — | — | — | — | ||||||||||||
Exercised during year (no.) | (60,000 | ) | (1,008,300 | ) | (40,000 | ) | (326,900 | ) | ||||||||
Lapsed during year (no.) | — | (39,800 | ) | — | — | |||||||||||
Outstanding at the end of year (no.) | 137,500 | 753,500 | 97,500 | 426,600 | ||||||||||||
Granted from 30 June to the date of report (no.) | — | — | — | — | ||||||||||||
Exercised from 30 June to date of report (no.) | — | — | — | — | ||||||||||||
Lapsed from 30 June to the date of report (no.) | — | — | — | — | ||||||||||||
Outstanding as at the date of report (no.) | 137,500 | 753,500 | 97,500 | 426,600 | ||||||||||||
Total consideration paid due to exercises to date of report (no.)(6) | $ | 1,618,200 | $ | 30,369,996 | $ | 1,078,800 | $ | 9,846,228 | ||||||||
(1) | The Exercise Price is the market value at the commencement date. Market value is defined as the weighted average of the prices at which shares were traded on the ASX during the one week period before the commencement date. This is the average exercise price. | |
(2) | The premium adjustment (based on the actual difference between the dividend and bond yields at the date of vesting) was nil. | |
(3) | Performance hurdle was satisfied on 31 March 2004 and options may be exercised up to 13 September 2010. | |
(4) | The opening balance as at 1 July 2005 has been restated reflecting a reallocation of 50,000 options. | |
(5) | Performance hurdle was satisfied on 3 October 2004 and options may be exercised up to 3 September 2011. | |
(6) | No amount is unpaid in respect of the shares issued upon exercise of options during the above period. |
July 2005-June 2006 | July 2006-June 2007 | |||||||||||||||||||||||||||||||||||
Year of Grant -Total Reward Shares | 2002(2) | 2003(3) | 2004(4) | 2005(5) | 2002(2) | 2003(3) | 2004(4) | 2005(5) | 2006(6) | |||||||||||||||||||||||||||
Held by participants at the start of year (no.) | 376,850 | 462,850 | 544,900 | — | 241,850 | 348,650 | 423,685 | 522,748 | — | |||||||||||||||||||||||||||
Allocated during year (no.)(1) | — | — | — | 557,253 | — | 321,150 | — | 13,117 | 505,574 | |||||||||||||||||||||||||||
Vested during year (no.) | — | — | — | — | (219,500 | ) | (639,300 | ) | — | — | — | |||||||||||||||||||||||||
Lapsed during year (no.) | (135,000 | ) | (114,200 | ) | (121,215 | ) | (34,505 | ) | (22,350 | ) | (30,500 | ) | (126,290 | ) | (123,928 | ) | (64,720 | ) | ||||||||||||||||||
Outstanding at the end of year (no.) | 241,850 | 348,650 | 423,685 | 522,748 | — | — | 297,395 | 411,937 | 440,854 | |||||||||||||||||||||||||||
Granted from 30 June to date of report (no) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Vested from 30 June to date of report (no.) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Lapsed from 30 June to date of report (no.) | (7,750 | ) | (11,250 | ) | (15,125 | ) | (18,175 | ) | — | — | — | — | — | |||||||||||||||||||||||
Outstanding as at the date of report (no.) | 234,100 | 337,400 | 408,560 | 504,573 | — | — | 297,395 | 411,937 | 440,854 | |||||||||||||||||||||||||||
(1) | The total number of shares allocated during the year represents the number of shares allocated and may not represent the total number that may vest at a later date. The Group purchases 50% of the maximum number of shares a participant may receive. Additional shares are purchased if required to fulfil the Group’s obligations to vest shares in participants once the performance of the ERP grant is known. | |
(2) | Performance hurdle was satisfied on 2 October 2006 when 50% of the maximum allocation of this grant vested. | |
(3) | Performance hurdle was satisfied on 3 October 2006 when 100% of the maximum allocation of this grant vested. | |
(4) | This grant will be tested for vesting on 23 September 2007. If performance is below the 75th percentile, retests will be conducted each six months until 23 September 2009. | |
(5) | This grant will be tested for vesting on 15 July 2008. If performance is below the 75th percentile, retests will be conducted each six months until 15 July 2010. | |
(6) | This grant will be tested for vesting on 14 July 2009. If performance is below the 75th percentile, one retest will be conducted 12 months later on 15 July 2010. |
Commonwealth Bank of Australia Concise Annual Report 2007 65
Period | Total Fees Sacrificed | Participants | Shares Purchased | Average Purchase Price | ||||||||||||
1 January to 30 June 2006 | $ | 221,918 | 9 | 4,978 | $ | 44.56 | ||||||||||
1 July to 31 December 2006 | $ | 210,068 | 9 | 4,203 | $ | 49.98 | ||||||||||
July 2005 | –June 2006 | July 2006 | –June 2007 | |||||||||||||
Year of Grant | 1999(4) | 2000(3)(5) | 1999(4) | 2000(3)(5) | ||||||||||||
Exercise Price(1) (2) | $ | 23.84 | $ | 26.97 | $ | 23.84 | $ | 26.97 | ||||||||
Held by participants at the start of year (no.) | 450,000 | 687,300 | 190,600 | 225,800 | ||||||||||||
Granted during year (no.) | — | — | — | — | ||||||||||||
Exercised during year (no.) | (250,000 | ) | (437,900 | ) | (165,600 | ) | (163,900 | ) | ||||||||
Lapsed during year (no.) | (9,400 | ) | (23,600 | ) | (25,000 | ) | (25,000 | ) | ||||||||
Outstanding at the end of year (no.) | 190,600 | 225,800 | — | 36,900 | ||||||||||||
Granted from 30 June to the date of report (no.) | — | — | — | — | ||||||||||||
Exercised from 30 June to date of report (no.) | — | — | — | — | ||||||||||||
Lapsed from 30 June to the date of report (no.) | — | — | — | — | ||||||||||||
Outstanding as at the date of report (no.) | 190,600 | 225,800 | — | 36,900 | ||||||||||||
Total consideration paid due to exercises to date of report(6) | $ | 5,960,000 | $ | 11,810,163 | $ | 3,947,904 | $ | 4,420,383 | ||||||||
(1) | The Exercise Price is the market value at the commencement date. Market value is defined as the weighted average of the prices at which shares were traded on the ASX during the one week period before the commencement date. This is the average exercise price. | |
(2) | The premium adjustment (based on the actual difference between the dividend and bond yields at the date of vesting) was nil. | |
(3) | The opening balance as at 1 July 2005 has been restated reflecting a reallocation of 50,000 options. | |
(4) | Performance hurdle was satisfied on 28 February 2004 and options may be exercised up to 24 August 2009. | |
(5) | Performance hurdle was satisfied on 31 March 2004 and options may be exercised up to 13 September 2010. | |
(6) | No amount is unpaid in respect of the shares issued upon exercise of options during the above period. |
66 Commonwealth Bank of Australia Concise Annual Report 2007
(a) | the Financial Statements and notes thereto of the Bank and the Group, and the additional disclosures included in the Directors’ Report designated as audited, comply with Accounting Standards and in their opinion are in accordance with the Corporations Act 2001; | |
(b) | the Financial Statements and notes thereto give a true and fair view of the Bank’s and the Group’s financial position as at 30 June 2007 and of their performance for the year ended on that date; | |
(c) | in the opinion of the Directors, there are reasonable grounds to believe that the Bank will be able to pay its debts as and when they become due and payable; and | |
(d) | the directors have been given the declarations required under Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2007 |
J M Schubert | R J Norris | |
Chairman | Managing Director and Chief Executive Officer | |
15 August 2007 |
Commonwealth Bank of Australia Concise Annual Report 2007 67
Ernst & Young | S J Ferguson | |
Sydney | Partner | |
15 August 2007 |
Rank | Name of Holder | Number of Shares | % | |||||||
1 | HSBC Custody Nominees (Australia) Limited | 109,534,755 | 8.42 | |||||||
2 | J P Morgan Nominees Australia Limited | 109,243,847 | 8.40 | |||||||
3 | National Nominees Pty Ltd | 97,156,842 | 7.47 | |||||||
4 | Citicorp Nominees Pty Ltd | 79,937,793 | 6.15 | |||||||
5 | RBC Dexia Investor Services Australia Nominees Pty Limited | 34,231,769 | 2.63 | |||||||
6 | ANZ Nominees Limited | 32,678,825 | 2.51 | |||||||
7 | Cogent Nominees Pty Limited | 21,559,338 | 1.66 | |||||||
8 | Queensland Investment Corporation | 15,619,621 | 1.20 | |||||||
9 | AMP Life Limited | 10,471,991 | 0.81 | |||||||
10 | UBS Nominees Pty Ltd | 8,935,570 | 0.69 | |||||||
11 | Australian Foundation Investments Company Limtied | 7,820,245 | 0.60 | |||||||
12 | UBS Wealth Management Australia Nominees Pty Ltd | 7,183,084 | 0.55 | |||||||
13 | Bond Street Custodians Limited | 5,914,456 | 0.45 | |||||||
14 | Invia Custodian Pty Limited | 5,343,237 | 0.41 | |||||||
15 | Suncorp Custodian Services Pty Ltd | 2,974,043 | 0.23 | |||||||
16 | Perpetual Trustee Co Ltd (Hunter) | 2,660,326 | 0.20 | |||||||
17 | Australian Reward Investment Alliance | 2,461,333 | 0.19 | |||||||
18 | Belike Nominees Pty Limited | 2,351,881 | 0.18 | |||||||
19 | Milton Corporation Limited | 2,001,210 | 0.15 | |||||||
20 | IAG Nominees Pty Limited | 1,840,740 | 0.14 | |||||||
Number of | Percentage | Number of | Percentage | |||||||||||||
Range | Shareholders | Shareholders | Shares | Issued Capital | ||||||||||||
1 – 1,000 | 523,347 | 74.85 | 178,279,588 | 13. 71 | ||||||||||||
1,001 – 5,000 | 155,448 | 22.23 | 315,862,011 | 24. 29 | ||||||||||||
5,001 – 10,000 | 14,158 | 2.03 | 97,272,252 | 7. 48 | ||||||||||||
10,001 – 100,000 | 5,955 | 0.85 | 115,278,342 | 8. 86 | ||||||||||||
100,001 and over | 269 | 0.04 | 593,891,183 | 45. 66 | ||||||||||||
Total | 699,177 | 100.0 | 1,300,583,376 | 100.00 | ||||||||||||
Less than marketable parcel of $500 | 11,768 | 1.68 | 47,242 | — | ||||||||||||
• | On a show of hands – to one vote; and |
• | On a poll – to one vote for each share held or represented. |
• | None of them is entitled to vote on a show of hands; and |
• | On a poll only one official representative may exercise the Equity holder’s voting rights and the vote of each attorney shall be of no effect unless each is appointed to represent a specified proportion of the Equity holder’s voting rights, not exceeding in aggregate 100%. |
• | If the appointment does not specify the proportion or number of the Equity holder’s votes each proxy may exercise, then on a poll each proxy may exercise one half of the Equity holder’s votes; |
• | Neither proxy shall be entitled to vote on a show of hands; and |
• | On a poll each proxy may only exercise votes in respect of those shares or voting rights the proxy represents. |
Rank | Name of Holder | Number of Units | % | |||||||
1 | J P Morgan Nominees Australia Limited | 232,786 | 6.21 | |||||||
2 | Citicorp Nominees Pty Limited | 205,405 | 5.48 | |||||||
3 | National Nominees Limited | 181,223 | 4.83 | |||||||
4 | UBS Nominees Pty Ltd | 135,626 | 3.62 | |||||||
5 | Questor Financial Services Limited | 86,591 | 2.31 | |||||||
6 | UBS Warburg Private Clients Nominees Pty Ltd | 83,521 | 2.23 | |||||||
7 | RBC Dexia Investor Services Australia Nominees Pty Limited | 71,653 | 1.91 | |||||||
8 | HSBC Custody Nominees (Australia) Limited | 50,726 | 1.35 | |||||||
9 | Invia Custodian Pty Limited | 43,830 | 1.17 | |||||||
10 | Equitas Nominees Pty Limited | 31,000 | 0.83 | |||||||
11 | ANZ Nominees Limited | 27,840 | 0.74 | |||||||
12 | The Australian National University Investment Section | 25,000 | 0.67 | |||||||
13 | Gordon Merchant No 2 Pty Ltd | 24,440 | 0.65 | |||||||
14 | Cryton Investments No 9 Pty Ltd | 17,600 | 0.47 | |||||||
15 | Tynong Pastoral Co Pty Ltd | 17,450 | 0.47 | |||||||
16 | Bond Street Custodians Limited | 17,030 | 0.45 | |||||||
17 | Israelite House of David | 15,000 | 0.40 | |||||||
18 | Lutovi Investments Pty Limited | 15,000 | 0.40 | |||||||
19 | NSF Nominees Pty Ltd | 12,400 | 0.33 | |||||||
20 | ANZ Executors & Trustee Company Limited | 10,940 | 0.29 | |||||||
Number of | Percentage | Number of | Percentage | |||||||||||||
Range | Unitholders | Unitholders | Units | Issued Units | ||||||||||||
1 – 1,000 | 9,510 | 96.44 | 1,623,292 | 43. 29 | ||||||||||||
1,001 – 5,000 | 292 | 2.96 | 622,716 | 16. 60 | ||||||||||||
5,001 – 10,000 | 35 | 0.36 | 256,792 | 6. 85 | ||||||||||||
10,001 – 100,000 | 21 | 0.21 | 697,565 | 18. 6 | ||||||||||||
100,001 and over | 3 | 0.03 | 549,635 | 14. 66 | ||||||||||||
Total | 9,861 | 100.00 | 3,750,000 | 100. 00 | ||||||||||||
Less than marketable parcel of $500 | 3 | 0.03 | 4 | — | ||||||||||||
• | If at the time of the meeting, a dividend has been declared but has not been paid in full by the relevant payment date; | |
• | On a proposal to reduce the Bank’s share capital; | |
• | On a resolution to approve the terms of a buy-back agreement; | |
• | On a proposal that affects rights attached to the preference shares; | |
• | On a proposal to wind up the Bank; | |
• | On a proposal for the disposal of the whole of the Bank’s property, business and undertaking; | |
• | During the winding up of the Bank; or | |
• | As otherwise required under the Listing Rules from time to time, | |
in which case the holders will have the same rights as to manner of attendance and as to voting in respect of each preference share as those conferred on ordinary Shareholders in respect of each ordinary share. |
• | On a show of hands, to exercise one vote when entitled to vote in respect of the matters listed above; and | |
• | On a poll, to one vote for each preference share. |
Rank | Name of Holder | Number of Shares | % | |||||||
1 | AMP Life Limited | 375,000 | 6.43 | |||||||
2 | RBC Dexia Investor Services Australia Nominees Pty Limited | 186,860 | 3.20 | |||||||
3 | UBS Wealth Management Australia Nominees Pty Ltd | 164,513 | 2.82 | |||||||
4 | Cogent Nominees Pty Limited | 147,074 | 2.52 | |||||||
5 | Mr Walter Lawton + Mrs Jan Rynette Lawton | 73,235 | 1.26 | |||||||
6 | J P Morgan Nominees Australia Limited | 72,427 | 1.24 | |||||||
7 | Citicorp Nominees Pty Limited | 71,210 | 1.22 | |||||||
8 | ANZ Executors & Trustee Company Limited | 71,084 | 1.22 | |||||||
9 | Bond Street Custodians Limited | 59,627 | 1.02 | |||||||
10 | The Australian National University Investment Section | 51,282 | 0.88 | |||||||
11 | Mr Reginald Surtees Geary | 50,000 | 0.86 | |||||||
12 | Catholic Education Office Diocese of Parramatta | 49,750 | 0.85 | |||||||
13 | Invia Custodians Pty Limited | 44,882 | 0.77 | |||||||
14 | National Nominees Limited | 40,700 | 0.70 | |||||||
15 | Questor Financial Services Limited | 40,568 | 0.70 | |||||||
16 | Equity Trustees Limited | 36,787 | 0.63 | |||||||
17 | Truckmate (Australia) Pty Ltd | 35,000 | 0.60 | |||||||
18 | Kerlon Pty Ltd | 30,000 | 0.51 | |||||||
19 | Avanteos Investments Limited | 25,677 | 0.44 | |||||||
20 | Henry Kendall Group Holdings Pty Ltd | 25,000 | 0.43 | |||||||
Number of | Percentage | Number of | Percentage | |||||||||||||
Range | Shareholders | Shareholders | Shares | Issued Capital | ||||||||||||
1 – 1,000 | 16,104 | 96.47 | 2,630,173 | 45. 10 | ||||||||||||
1,001 – 5,000 | 503 | 3.02 | 1,050,637 | 18. 01 | ||||||||||||
5,001 – 10,000 | 44 | 0.26 | 336,346 | 5. 77 | ||||||||||||
10,001 – 100,000 | 39 | 0.23 | 1,150,327 | 19. 72 | ||||||||||||
100,001 and over | 3 | 0.02 | 664,798 | 11. 40 | ||||||||||||
Total | 16,693 | 100.00 | 5,832,281 | 100. 00 | ||||||||||||
Less than marketable parcel of $500 | 14 | 0.08 | 27 | — | ||||||||||||
Rank | Name of Holder | Number of Shares | % | |||||||
1 | AMP Life Limited | 425,000 | 5.8 | |||||||
2 | J P Morgan Nominees Australia Limited | 315,135 | 4.3 | |||||||
3 | Goldman Sachs JB Were Capital Markets Ltd <Hybrid Portfolio A/C> | 250,000 | 3.41 | |||||||
4 | Cogent Nominees Pty Limited | 189,750 | 2.59 | |||||||
5 | UBS Wealth Management Australia Nominees Pty Ltd | 185,458 | 2.53 | |||||||
6 | RBC Dexia Investor Services Australia Nominees Pty Limited | 184,270 | 2.52 | |||||||
7 | Citicorp Nominees Pty Limited | 178,488 | 2.44 | |||||||
8 | ANZ Nominees Limited | 148,451 | 2.03 | |||||||
9 | Invia Custodian Pty Limited | 128,809 | 1.76 | |||||||
10 | Suncorp General Insurance Ltd | 118,000 | 1.61 | |||||||
11 | Mr Peter Kelvin Rodwell | 109,005 | 1.49 | |||||||
12 | GIO General Ltd | 94,500 | 1.29 | |||||||
13 | National Nominees Limited | 89,956 | 1.23 | |||||||
14 | Secure Investments FIB Pty Ltd | 72,500 | 0.99 | |||||||
15 | DNU Nominees Pty Limited | 59,705 | 0.82 | |||||||
16 | UCA Cash Management Fund Ltd | 55,000 | 0.75 | |||||||
17 | Eastcode Pty Ltd <Van Lieshout F/T A/C> | 50,000 | 0.68 | |||||||
18 | Questor Financial Services Limited | 48,547 | 0.66 | |||||||
19 | Westpearl Pty Ltd | 45,000 | 0.61 | |||||||
20 | Suncorp Custodian Services Pty Limtied | 43,500 | 0.59 | |||||||
Number of | Percentage | Number of | Percentage | |||||||||||||
Range | Shareholders | Shareholders | Shares | Issued Capital | ||||||||||||
1 – 1,000 | 9,437 | 92.44 | 2,190,154 | 29. 90 | ||||||||||||
1,001 – 5,000 | 673 | 6.59 | 1,514,618 | 20. 68 | ||||||||||||
5,001 – 10,000 | 45 | 0.44 | 367,939 | 5. 02 | ||||||||||||
10,001 – 100,000 | 45 | 0.44 | 1,436,240 | 19. 61 | ||||||||||||
100,001 and over | 9 | 0.09 | 1,816,049 | 24. 79 | ||||||||||||
Total | 10,209 | 100.00 | 7,325,000 | 100. 00 | ||||||||||||
Less than marketable parcel of $500 | — | — | — | — | ||||||||||||
• | When dividend payments on the preference shares are in arrears; | |
• | On proposals to reduce the Bank’s Share Capital; | |
• | On a proposal that affects rights attached to preference shares; | |
• | On a resolution to approve the terms of a buy-back agreement; | |
• | On a proposal to wind up the Bank; | |
• | On a proposal for the disposal of the whole of the Bank’s property, business and undertaking; and | |
• | During the winding-up of the Bank. |
Head Office
Commonwealth Bank of Australia
48 Martin Place,
Sydney NSW 1155
Telephone: (61 2) 9378 2000
ASB Bank Limited
Level 28 ASB Bank Centre
135 Albert Street, Auckland
Telephone: (64 9) 377 8930
Facsimile: (64 9) 358 3511
Managing Director
Hugh Burrett
33-45 Hurstmere Road
Takapuna, Auckland
Telephone: (64 9) 487 9000
Facsimile: (64 9) 486 1913
Managing Director
Simon Blair
Fiji Islands
Colonial National Bank
Colonial Life Limited
3 Central Street, Suva
Telephone: (67 9) 3214 400
Facsimile: (67 9) 3303 448
Managing Director
Laurie Mellsop
CBA Representative Office
2909 China World Towers 1
1 Jian Guo Men Wai Avenue
Beijing 100004
Telephone: (86 10) 6505 5350
Facsimile: (86 10) 6505 5354
Chief Representative
Paul Au
Room 3805-3806 K.Wah Centre
1010 Huahai (M) Road
Shanghai 200031
Telephone: (86 21) 6103 6500
Facsimile: (86 21) 6103 6598
Head of Investment Banking
Vivienne Yu
Level 7
Zhong Ya Building
458 Wu Lu Mugi (N) Road
Shanghai
Telephone: (86 21) 6249 9659
Facsimile: (86 21) 6249 9682
Chief Executive Officer
Guo-Xiong Jiang
21st Floor
China Insurance Building
166 Lujiazui Dong Road
Shanghai 200120
Telephone: (86 21) 5882 5245
Facsimile: (86 21) 6887 5720
General Manager
Chong Lee
Room 4007 Bund Center
222 Yan An Road East
Shanghai 200002
Telephone: (86 21) 6335 1686
Facsimile: (86 21) 6335 1766
Chief Representative
Paul Au
No. 29 Dong Zhong Street
Dong Cheng District
Beijing
Telephone: (86 10) 6418 1266
Facsimile: (86 10) 6418 1243
Regional Head Asia
Lindsay Mann
15th Floor, Chater House
8 Connaught Road,
Central
Hong Kong
Telephone: (852) 2844 7500
Facsimile: (852) 2801 6916
Regional General Manager Asia
Stephen Poon
Room 1307-1308, Chater House
8 Connaught Road
Central
Hong Kong
Telephone: (852) 3667 8900
Facsimile: (852) 3667 8939
Executive General Manager
Peter Fancke
Level 6, Three Exchange Square
Central
Hong Kong
Telephone: (852) 2846 7555
Facsimile: (852) 2868 4742/4783
Regional Head Asia
Lindsay Mann
CBA Representative Office
Unit 201, Level 2 (front portion) of Embassy Classic
No. 11, Vittal Mallya Road
Bangalore 560001
Telephone: (91 80) 2210 7413
Fascimile: (91 80) 5112 1462
Chief Representative
Ravi Kushan
PT Bank Commonwealth
Level 3A, Wisma Metropolitan II
Jl. Jendral Sudirman Kav. 29-31
Jakarta 12920
Telephone: (62 21) 5296 1222
Facsimile: (62 21) 5296 2293
President Director
Symon Brewis-Weston
11/F Sentra Mulia
Jl. H.R. Rason Said, Kav X-6 No 8
Jakarta 12940
Telephone: (62 21) 250 0385
Facsimile: (62 21) 250 0389
President Director
Malakai Naiyaga
29th Floor, Gedung Artha Graha
Sudirman Central Business District
Jl. Jend. Sudirman Kav. 52-53
Jakarta 12190
Telephone: (62 21) 515 0088
Facsimile: (62 21) 515 0033
Regional Head Asia
Lindsay Mann
CBA Branch Office
8th Floor
Toranomon Waiko Building
5-12-1 Toranomon
Minato-ku, Tokyo 105-0001
Telephone: (81 3) 5400 7280
Facsimile: (81 3) 5400 7288
General Manager Japan
Lillian Xia
CBA Branch Office
1 Temasek Avenue
#17-01 Millenia Tower
Singapore 039192
Telephone: (65) 6349 7001
Facsimile: (65) 6224 5812
General Manager
Brian McGovern
1 Temasek Avenue
#17-01 Millenia Tower
Singapore 039192
Telephone: (65) 6538 0008
Facsimile: (65) 6538 0800
Regional Head Asia
Lindsay Mann
CBA Representative Office
Suite 202-203A
The Central Building
31 Hai Ba Trung, Hanoi
Telephone: (84 4) 826 9899
Facsimile: (84 4) 824 3961
Chief Representative
Danny Armstrong
United States of America
CBA Branch Office
Level 17, 599 Lexington Avenue
New York NY 10022
Telephone: (1 212) 848 9200
Facsimile: (1 212) 336 7725
General Manager, Head of North America
Ian Phillips
United Kingdom
CBA Branch Office
Senator House
85 Queen Victoria Street
London EC4V 4HA
Telephone: (44 20) 7710 3999
Facsimile: (44 20) 7710 3939
Regional General Manager Europe & North America
Paul Orchart
3rd Floor, 30 Cannon Street
London EC4M 6YQ
Telephone: (44 20) 7332 6500
Facsimile: (44 20) 7332 6501
CEO
Charlie Metcalf
23 St Andrew Square
Edinburgh EH2 1BB
Telephone: (44 131) 473 2200
Facsimile: (44 131) 473 2222
Managing Partners
Stuart Paul & Angus Tulloch
Level 7, 48 Martin Place
Sydney NSW 1155
Telephone (02) 9378 2000
Facsimile (02) 9378 3317
JD Hatton
www.commbank.com.au/Shareholder
Link Market Services Limited
Locked Bag A14
SYDNEY SOUTH NSW 1235
Telephone: (02) 8280 7199
Facsimile: (02) 9287 0303
Freecall: 1800 022 440
Internet
www.linkmarketservices.com.au
registrars@linkmarketservices.com.au
New Zealand
0800 442 845
United Kingdom
0845 769 7502
Fiji
008 002 054
Other International
612 8280 7199
CBA
To request a copy of the Annual Report
please call 1800 022 440