Banks of Australia

Executive Summary The purpose of this report is to evaluate the performance of the Commonwealth Bank of Australia (CBA) with a view to recommending a financially justified growth strategy for the next 3-5 year strategic planning horizon. The bank provides a wide range of financial products and services to retail, institutional and corporate clients. Together with its major competitors, NAB, WBC and ANZ, they form the ‘four pillars of banking’ in Australia.

In order to evaluate the CBA’s position, various tools have been used, such as PEST analysis to examine macro-environment factors, Porter’s five forces to assess the group’s position as well as Mckinsey 7S Framework to evaluate the group’s structure. The report also examines financial ratios of the CBA as well as its competitors. The outcome of our ratio analysis has showed that CBA has performed well throughout the Global Financial Crisis (GFC) and is currently in a sound financial position, performing above that of its peers.

We have identified the expansion of the Group’s branch and ATM operations in Western Australia to deliver the best results to stakeholders. This will be done by building on its recently acquired assets of BankWest, and realising synergies generated in the integration of BankWest’s operations. Furthermore, the population and economy of Australia is expected to grow steadily as it emerged from the GFC and that domestic growth will generate superior returns than elsewhere considering the present state of the global economy.

This report comprises of historical data from the financial years ending 2007, 2008 and 2009 from publicly available sources. We have not used the 2010 financials as they were released during the course of constructing this report. The opinions and forecasts included in this report have not been verified and involve subjective judgment and analysis and are subject to significant uncertainties, contingencies and assumptions. Certain statistical, numerical and other information contained or referred to in this report are based on a number of economic and other assumptions, and must be interpreted in the context of those assumptions.

Where information in this report includes reference to a publicly available source, the information is a summary of or extract from information from that source, and may not be the complete information about that subject. As a result, there are limitations to this report and the information provided therein. 1. Introduction The objective of the report is to evaluate the financial performance of CBA and based on the analysis provide a recommendation for a justified growth strategy for the next following years. 2. Company Overview 2. 1 Background Information CBA was founded in 1911 by the Australian government.

It is one of the ‘big four’ Australian banks, along with the National Australia Bank (NAB), ANZ and Westpac. CBA is the largest bank by market capitalisation in Australia, with businesses across New Zealand, Fiji, Asia, USA and the United Kingdom. The group is one of the largest listed companies on the ASX and is included in the Morgan Stanley Capital Global Index. On 31 December 2009, CBA declared NPAT increase of 36% to $2,914 million, and on a cash basis, 54% to $2,943 million. The bank has approximately 7. 7 million customers, over 1000 branches and 4000 ATMs, and employs over 45,000 people across the Group.

2. 2 Products and Services CBA provides integrated financial services including retail banking, premium banking, business banking, institutional banking, funds management, superannuation, insurance, investment and share broking products and services. Retail banking is one of its major sources of revenue and includes home loans, credit cards, personal loans, transaction accounts, and demand and term deposits. The group also offers a wide range of commercial products including business loans, deposits and asset financing to small and medium sized corporate customers, as well as to rural and agribusiness customers.

CBA also provides international financial services which incorporates the group’s banking operations and established branches in many countries (Appendix 11. 1 to 11. 3) In June 2000, CBA acquired Colonial Limited, which increased its dominance in the domestic retail banking market. The group believes that the key success factors of retail banking services are strong sales and volume growth in key product lines and disciplined cost management. Customer service remains a major focus; it generated the largest improvement in customer satisfaction scores among local peers, increasing 2. 9% on the prior year to 73.

0%. A list of the CBA’s recent awards can be found in Appendix 11. 4. 2. 3 Key business activities On 19 December 2008, the group acquired 100% of the share capital of the Bank of Western Australia Limited and St Andrew’s Australia Pty Ltd (“BankWest”). The CBA completed its acquisition of BankWest for a reported $2. 1 billion; such acquisition provides the group with a significant opportunity to further develop its business in the Western Australian market, a key growth area due to the resources boom which has led to population growth and large amounts of domestic and foreign capital investment in the area.

As at 30 June 2009, Bankwest provided services to 960,000 retail customers and 26,000 businesses, through 135 retail branches and 78 business banking centres. As a result, this transaction has facilitated the bank’s performance by increasing its market presence in Western Australia, having acquired 135 retail branches in total, with approximately 90 being located in Western Australia. CBA has also engaged other acquisition activities during 2008-2009 financial years provided in table below. Year| Major activities|

10/01/2007| CBA increased its stake in Southern Cross Broadcasting| 6/02/2007| CBA increased its stake in Mortgage Choice Australia| 2/04/2007| CBA became a substantial shareholder in Resource Pacific| 29/2/2008| CBA acquired control of Bank Arta Niaqa Kencana| 2/4/2008| CBA has acquired half of Equigroup Pty Ltd| 20/06/2008| CBA bought shares in China Communications Services Corporation| 24/02/2009| CBA invested in Wizard| 24/04/2009| CBA acquired stake in JB Hi-Fi| 20/12/2009| CBA injected capital into Bank of Western Australia| Table 2.

1: Major activities of CBA during 2008-2010 Source: BankScope 3. External Environment Overview 3. 1 Firm’s Industry Review As a full-service bank and provider of wealth management products, its customers range from retail clients, small to medium enterprises to large corporate and government entities. Its key competitors are other three major banks (NAB, WBC and ANZ). The CBA’s financial strength, large retail customer base and excellent distribution network have driven its overall performance becoming competitive among other major banks in the domestic financial services.

As a full-service bank and provider of wealth management products, its customers range from retail clients, small to medium enterprises to large corporate and government entities. Its key competitors are other three major banks (NAB, WBC and ANZ). The CBA’s financial strength, large retail customer base and excellent distribution network have driven its overall performance becoming 3. 2 Effects of current state of the economy The GFC has posed challenges around the world and Australia also has been affected with a slowing economy and volatile market and economic conditions.

Despite a substantial increase in provisions and expense losses related to bad debts, CBA remained profitable despite some of its global counterparts in the US and Europe collapsing or requiring unprecedented amounts of government bailout funds. CBA was one of only a handful of banks globally to retain its AA credit rating throughout the GFC and were recently ranked by Global Finance Magazine as one of the top fifteen safest banks in the world. At the beginning of the financial crisis, Australian major banks were severely affected. Analysts estimate that CBA’s bad charges could surge by A$1 billion to $2.

3 billion in 2009. During the 2007/2008 financial year, CBA booked a loan impairment charge of $930 million, up from $430 million a year ago. Since the emergence of the GFC, CBA’s financial performance has also been affected with slowing growth rate and declining profits, nevertheless, its profit declined by only 1. 4% while revenue grew by 6. 4% unexpectedly during the 08/09 financial year. In light of the difficult operating conditions, these results compare propitiously to its local and global peers. | CBA| NAB| WBC| ANZ| Revenue ($billion)| 39. 43| 37. 46| 35. 30| 29. 54| % change| 6. 4| 9. 0| 5.

5| -20. 0| NPAT($million)| 4. 72| 2. 58| 3. 44| 2. 94| % change| (1. 4)| (42. 9)| (10. 6)| (11. 3)| Table 3. 1: Four major banks’ profit and revenue ratios during the 08/09 financial year The global economic recovery is taking place in many countries however the Australian economy is particularly well placed with strong house prices, high interest rates, low unemployment and sustainable inflation. Despite Bankwest taking a hit of circa $212 million in profits from bad loans, CEO Ralph Norris said he would still “have done this sort of acquisition one hundred times over if we could buy it (BankWest) at 0.

8 times book”. The majority of these bad loans where in east coast residential property lending, not in WA. Mr. Norris also promised to implement a shakeup of BankWest management and put in place stricter lending and credit criteria. Despite the hastiness of the acquisition and the fragility of the economy, CBA’s performance was admirable; cash earnings, a major indicators of a bank’s profitability, reached $6. 1 billion, beating analysts prediction of $6. 06 billion, allowing a final dividend of $1. 70 per share to be paid to shareholders, compared to $1.

15 a year ago, also beating market consensus of $1. 62 per share. Some financial analysts believed that CBA used financial crisis to extend its dominance. After the BankWest acquisition, CBA has been able to add 3-5% to its various lending and deposit bases by June 30, 2009. 3. 3 PEST Analysis Please refer to Appendix 11. 5 for a complete analysis. 3. 4 Porter’s 5 Forces A summary of Porter’s 5 forces is given in the table below; refer to Appendix 11. 6 for a detailed analysis. Porter’s 5 Forces| | Rivalry among existing firms | HIGH| Threat of new entrants| MEDIUM|

Threat of substitute products| LOW-MEDIUM| Bargaining power of buyers | LOW| Bargaining power of suppliers | LOW| 4. Internal Analysis 4. 1 Corporate Governance Analysis CBA employs an external firm to evaluate the soundness and performance of its Board. The Board has adopted a comprehensive framework of Corporate Governance Guidelines which are designed to properly balance performance and conformance and thereby allow the Group to undertake, in an effective manner, the prudent risk-taking activities which are the basis of its business.

The Guidelines and the practices of the Group comply with ASX’s Corporate Governance Principles Recommendation. The position of chairman and CEO are held by two different individuals. The Board delegates to the CEO and the latter is responsible for day-to-day management and maintaining a comprehensive set of management delegations under the Group’s Delegation of Authorities framework. Each Board member is a non-executive independent director and satisfies ASX requirements of being an independent director; the bank also makes regular assessment of its directors.

All the committees set up by the Board contained at least three members, all independent, and are not chaired by the same director, in order to maintain integrity of the Group. The committees set up by the Board are Remuneration, Audit, Risk Management, Performance and Renewal and Ethics – all of which act in the best interest of shareholders. They also make continuous disclosures and understand the importance of disclosure and shareholder communication. The Audit committee consists of financially literate and experience individuals who verify the effectiveness of external reporting and internal control environment.

The Bank’s external auditor is PricewaterhouseCoopers. The Ethics committee ensures that no form of conflict of interests exist between management and shareholders. 4. 2 McKinsey Seven ‘S’ Framework (Source: http://b4tea. com/information/mckinsey-7s-framework-7s-model, 2010) 7S| | Strategy| The CBA is committed to achieving its vision of becoming Australia’s finest financial services organisation through excelling in customer service, with the Group’s objective to be ranked number one in customer satisfaction by June 2010.

CBA’s “Determined to be Different” slogan conveys a determination to differentiate the quality of service and products provided to customers, and making progress across each of the five strategic priorities: * Customer Service; * Business Banking; * Technology and Operational Excellence; * Trust and Team Spirit; and * Profitable Growth. | Structure| Commonwealth Bank has five customer-focused business divisions, designed to align product development and service delivery more fully with customer segments.

The businesses are: 1) Retail Banking Services Business and Private Banking 2) Institutional Banking and Markets 3) Wealth Management 4) Financial Services 5) Risk Management 6) Enterprise Services 7) Human Resources 8) Marketing and Communications| Systems| CBA is strongly committed to maintaining an ethical workplace, complying with legal and ethical responsibilities. Policy requires staff to report fraud, corrupt conduct, maladministration or serious and substantial waste by others.

A system has been established which allows staff to remain anonymous, if they wish, for reporting these matters. | Shared Values| CBA name is synonymous with outstanding customer service superior product delivery. These shared values and objectives filters from the top level of management to the person standing behind the branch counter. CBA continually strives to be the best bank to deal with, work at, and invest in. | Style| The Mangers’ behaviour is lined to the company’s remuneration structure.

CBA’s remuneration structure for all key management personnel, other executives, and employees generally are: * To motivate employees to work as a team to produce superior sustainable performance achieving the Group’s vision; * To avoid any conflicts of interest or moral hazard; * To align remuneration with performance; * To be transparent and simple to understand, administer and communicate; and * To be market-competitive and strike a balance between hiring and maintaining talented staff without excessive remuneration. | Staff| At the end of 2009, there were 44,218 full time equivalent employees in CBA, 63% of those staff are women.

Mr. Norris recently said “As an organisation, we employ over 45,000 people, and in a period where many global banks have been reducing headcount, we actually increased the number of employees in the 2010 year as we have grown our business. Last year we paid our people over $4. 5 billion, which helped support families and communities right across Australia”. The Group is committed to providing a fair, safe, challenging and rewarding work, recognising the importance of attracting and retaining high quality staff and consequently, being in a position to excel in customer service.

| Skills| CBA has five customer-facing business divisions that align product development and delivery of service with client segments. The employees’ skills are developed through thorough and ongoing training about the products and services available to clients, to ensure that the most ideal product is recommended to customers’ individual needs and that people will come back again to use required products in the future. | (Source: CBA Annual Report, 2009) 5. Financial and Strategic Analysis 5. 1 Time-series Analysis ?| Revenue| NPAT| Net Assets| Year| $billion| % change| $million| % change| $million| % change| 2006-2007| 33.

16| 16. 1| 4,470| 13. 8| 24,444| 14. 5| 2007-2008| 37. 05| 11. 7| 4,791| 7. 2| 26,137| 6. 9| 2008-2009| 39. 43| 6. 4| 4,723| (1. 4)| 31,442| 20. 3| Table 5. 1 – Commonwealth Bank of Australia – Financial Performances 2007-09 (Source: CBA Annual Reports, 2007-2009) CBA has operated in a very turbulent economic environment over the last three years. This has been reflected in its financial performances which are illustrated by the table 5. 1. Since the emergence of the GFC, revenue growth has slowed and profit has declined. However, profit declined by only 1. 4% while revenue grew by 6. 4% in 2008-09.

The net assets have grown significantly during the recession in 2008-09 by 20. 3%. 5. 2 Cross-sectional Analysis Year| 2008-2009| Peers| CBA| WBC| NAB| ANZ| Revenue ($billion)| 39. 43| 35. 3| 37. 46| 29. 54| NPAT ($billion)| 4. 72| 3. 44| 2. 58| 2. 94| Assets ($billion)| 620. 37| 589. 58| 654. 12| 476. 98| Table 5. 2 – The “big four” financial performances during 2008-2009 (Source: Annual Reports and IBIS WORLD, 2009) Table 5. 2 above also shows us that there are very strong results for both revenue and profit comparing with other three major banks in Australia during the year of 08-09 which is after the GFC.

During the 08/09 financial year, the economy of Australian retail deposits has recovered after the global financial crisis that began two years earlier in August 2007, which can be mostly reflected by the financial performances of the “big four”. “In allowing the St George and Bankwest takeovers, the ACCC has handed power to two banks, the CBA and WBC, which combined hold 48. 9% of all retail deposits as at August 2009, compared with 37. 2% two years earlier”(Appendix 10. 14). Another factor has been that the Australian Government has allowed banks to raise funds using its AAA rating for a fee.

However this fee increases based on the spread between the banks rating and the Government’s AAA rating. As a result, this has given the large banks an advantage since they pay around 80 basis points less than smaller regional banks such as the Bank of Queensland. 5. 3 Common Size (Vertical) Analysis The vertical income statement analysis (Appendix 11. 7) for CBA reveals that the net interest income increased from 2008 to 2009 which is the main proportion of the total operating income, and the proportions in operating expenses did not change substantially in the last three years.

However, the NPAT has not improved by the increase in income, which was a result of the increase in the proportion of impairment expenses, especially from 2008 to 2009. 5. 4 Trend (Horizontal) Analysis The horizontal analysis for the income statement is also computed (Appendix 11. 8). As seen in the table, the total operating income has had positive growth since 2007. However impairment expenses have growth substantially, particularly between 2007 and 2008. Consequently, the NPAT reveals more detail of the Group’s profitability than total operating income. 5. 5 Ratio Analysis

CBA’s financial ratios in terms of profitability, debt, market value, dividend and productivity have been showed in the table in Appendix 11. 9, compared to the last three years and also that of the other three major banks in Australia. Graph 5. 1 – Net interest margin for the “big four” As shown in graph 5. 1, NAB has outperformed the other three banks in terms of net interest margin during the last three year. CBA’s net interest margin slightly declined, holding relatively stable around 2. 00%, although all three other two banks’ show notable post-GFC growth. Graph 5.

2 – Return on equity for the “big four” Graph 5. 3 – Return on assets for the “big four” From graphs 5. 2 and 5. 3, we can see a decreasing tread for both ROE and ROA for the four banks during the last three years. CBA had good performances in both ratios with comparison to the other three banks, especially in ROA; though it was still declining last year. The ROE for CBA in the last three years were 18. 70%, 18. 50% and 14. 93% for 2007, 2008 and 2009 respectively, which was mainly due to an increase in shareholders’ equity and the relatively constant NAPT from 2008-2009.

The profitability has been affected by higher costs of funds, which can be explained by the decline in ROE and ROA. Further affecting profit have been larger bad debts, many businesses and households to whom the CBA has lent money have not been able to meet debt obligations. Unemployment, bankruptcies and financial stress have all contributed to this. The market value ratios and dividend ratios make CBA more attractive to those potential investors. In order to recover market share losses in home loans and deposits, CBA has invested heavily in customer service training and recruitment of new staff.

As shown in Appendix 11. 9, CBA has the largest number of full-time equivalent employees among the “big four”. The operating income per employee is $348,454, $361. 955 and $380,320 for 2007, 2008 and 2009 respectively. As shown in the table, the profitability of all big four banks suffered during the last three years as a result of the GFC. However in general, CBA performed well delivering shareholder value and improving its competitive positioning with the other three major banks in Australia. 5. 6 Dividend Policy

As the majority of profits generated are in Australia and distributed to Australian tax payers, dividends are fully franked. The final dividends paid for the last three years are $1,380m in 2007, $1,487m in 2008 and $1,662 in 2009 respectively (Appendix 11. 10) and are paid semi-annually. The payout ratios for those three years are 75. 2% (2007), 74. 1% (2008) and 73. 1% (2009) (Appendix 11. 11). The constant payout ratios has declined slightly as the CBA has adopted a more conservative approach as it retains capital and maintains a higher than required Tier 1 capital adequacy ratio, in light of the difficult operating conditions.

As from 2008, the ratio was calculated under BASEL II. It is also reinvesting funds in projects that will generate shareholder value, such as through the integration of BankWest to realise synergies. Despite the volatile operating conditions, CBA maintained a relatively constant payout ratio. 6. SWOT Analysis Strengths:| Weaknesses: | * – CBA is the leading provider of integrated financial services in Australia. * – CBA has both size and scale advantages which make it competitive in the market. * – CBA has a level of customer base and branches in Western Australia.

* – Restructuring improved competitive positioning of business banking division| * – Capital ratios impacted by Bankwest acquisition * – Continued and accelerated increase in loan impairments weakening profitability| Opportunities:| Threats: | * – Opportunities to merge and acquisition. * – Opportunities to Overseas expansion. * – Opportunities to expand business in West Australia. * – Positive outlook for Australian superannuation industry| * – Uncertainty of future of the economy. * – Intense competition in Australia is likely to affect the profitability of CBA|

Please refer to Appendix 11. 12 for a detailed explanation. 7. Scenario Analysis 7. 1 Grow organically in Western Australia In 2008, CBA completed the acquisition of BankWest. The transaction allowed CBA to increase its presence in the Western Australian Market. IBIS World Industry reported that CBA acquired 135 retail branches in total, 90 of which are located in Western Australia, allowing the CBA to expand its customer base in this key growth area, where the other three large banks do not have a significant presence.

The report stated that as a result of the acquisition, CBA will serve an extra 960,000 retail customers and 26,000 business clients. If CBA decides to growth organically in Western Australia, it can already build on its existing infrastructure, customer base and branch resources. Further, as touched on earlier, Western Australia has the highest population growth; hence it is another potential resource to growing the bank’s customer base in the future and has increased capability to meet business banking demand.

Not only are large amounts of investment capital being invested in the area, but this hype of economic activity and population growth leads to secondary effects such as more infrastructure, housing, shopping centers, which may lead to increased demand for credit and loans, allowing CBA to grow and diversify its asset base. Moreover, looking at the Western Australian economy, the minerals and petroleum resources industry is continuously growing. Stephen Smith MP (2010) believes the growing minerals and petroleum resources industry “will continue to underpin Australia’s economic growth and export outcomes and prosperity well into the future.

” As resources are a depleting commodity, they are viewed more integral in today’s world to fuel expanding economies such as China, India, Russia and Brazil. Some people believe that the globe will ‘embark on a scramble for resources’. 7. 2 Growth by acquisition Another opportunity for CBA is to acquire another company. Recently CBA reported a competitive performance, and profit from the acquisition of BankWest. If CBA acquires another financial institution, it will be able to experience further growth and profit.

However the regulatory environment remains difficult due to growing skepticism and scrutiny over the profitability of the major banks in Australia, which is essentially an oligopolistic environment between the Big Four. By the end of 2009, the Big Four banks already held more than 70% of mortgage and retail deposits in Australia. The ACCC already concerns with the diminishing level of banking competition and ‘any future banking acquisitions will likely face significant opposition’. This was recently seen with the ACCC twice rejecting the proposed acquisition of AXA.

Indeed the acquisition of BankWest may have been more rejected under normal operating conditions, and as economic conditions have improved, some people have even called for a forced disinvestment of BankWest from CBA. As a result, any further acquisitions of notable size are likely to be rejected. 7. 3 Expand overseas Living standards and consumer power of Asia are rising at the moment. Hence it creates investment opportunities for individuals and business firms. Many economists and financial analysts believe that, Asia economy has a growth market and the economic is trend to be healthier.

Commonwealth bank already tried to operate in several Asian cities, a further expansion will enable CBA to depend less on Australian market and diversify its customer base. Moreover, by overseas expansion, the bank will be able to follow its customers overseas. In addition, expanding its services to foreign countries will increase the bank’s opportunities to deal with foreign investments. However, the growth of overseas market is uncertain and Asian regulations for foreign banks are still tight.

In addition, Asian financial market is still developing, expanding overseas will make the bank face higher risks such as market risk, country risk and regulation risks. 7. 4 Scenario discussion After considering the merits of the three scenarios analysed above, we believe that organic growth domestically will deliver the best value to stakeholders of CBA. By producing synergistic benefits from the BankWest acquisition and aggressive branch and ATM growth, particularly in the Western state of Australia, CBA can establish a prominent position and grow its customer base and profitability in this manner. Comparison of WA against other states:

Source: IBIS world 2010 8. Supporting the strategy CBA’s strong financial position enabled it to capitalise on weak market conditions by acquiring Bankwest from HBOS plc for $2. 1 billion cash in addition to $360 million in returned excess capital. This is a substantial discount to its fair value since HBOS was under financial distress at the time. To fund the acquisition, CBA raised $2 billion through issuing 52. 6 million shares at $38. 00 each. The acquisition of Bankwest was at a substantial discount to fair value generating a one-off gain of $612 million; therefore the acquisition was at approximately 0.

8 of fair value. This has enabled CBA to strengthen it retail business banking business in Western Australia and grow its retail deposits. The integration of these businesses is expected to generate annualised synergies of between $220-$250 million over the next three years, while integration costs up to 30 June 2009 were at $112 million. Since the acquisition, Bankwest has contributed $113 million to net profit after tax due to solid volume growth and minimising expenditures through the implementation of integration strategies which have resulted in improved productivity.

Integration Expenditure (FY-08/09) | $m| IT expenditure| 60| Operations| 24| Property| 7| Restructuring| 16| Other| 5| Total| 112| Table 8. 1 – expenditure on BankWest As can be seen in table 8. 2 below, Bankwest has contributed to CBA’s market share in retail banking, in particular retail and household deposits. Bankwest was also involved in business lending and this has also benefited CBA with significant growth in both business lending and deposits. Bankwest’s assets (including its lending portfolio) will enable CBA to

realise its long term objective of strengthening its retail banking business, particularly in Western Australia. Bankwest is already having a positive effect on both earnings and profitability of the total group, as seen in table 8. 3. The acquisition assisted CBA to achieve net interest income growth of 21% on the prior year, reflecting solid lending and deposit growth, as well as an 8 basis point improvement on interest margins, despite the difficult economic conditions. Market Share (%)| Group (excluding Bankwest)| Group (including Bankwest)| | 30 Jun 2009| 31 Dec 2008| 30 Jun 2009| 31 Dec 2008|

Home loans| 21. 9| 20. 3| 25. 1| 23. 3| Credit cards| 18. 7| 18. 3| 21. 8| 20. 9| Personal lending| 13. 6| 14. 2| 15. 7| 20. 3| Household deposits| 28. 8| 29. 1| 32. 3| 32. 6| Retail deposits| 22. 6| 23. 2| 26. 6| 27. 3| Business lending| 13. 6| 13. 6| 19. 4| 18. 9| Business deposits| 15. 7| 16. 4| 20. 8| 21. 3| Table 8. 2 | Group (ex. Bankwest)| Group (inc. Bankwest)| Performance| 30 Jun 2009| 30 Jun 2008| Total banking income| 13,603| 14,362| Total operating income| 16,326| 17,085| Total income| 16,059| 16,818| Net profit before income| 5,842| 6,005|

Net profit after tax| 4,302| 4,415| Table 8. 3 Our analysis of the proposed domestic growth strategy incorporated the expansion of the combined Group’s branch and ATM network. From 2008 to 2009, CBA expanded the number of branches from 1,009 to 1,142 (+13%) and the number of ATMs from 3,031 to 4,075 (+34%). In 2009, CBA i