Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — Investor Presentation (June 2015)
43 slides from Commonwealth Bank Of Australia's investor presentation, Jun 5, 2015
Slide 1: ASB Market Update
For personal use only ASB MARKET UPDATE 5 JUNE 2015
Slide 2: Agenda
Agenda For personal use only BARBARA CHAPMAN Chief Executive Officer JON RABY Chief Financial Officer Executive General Manager IAN PARK Retail & Business Banking Executive General Manager STEVE JURKOVICH Commercial, Corporate & Rural Executive General Manager RUSSELL JONES Technology & Innovation Q
Slide 3: Our Vision and Values
Our Vision and Values For personal use only 5
Slide 4: Our strategy
For personal use only Our strategy 7
Slide 5: Best in class staff engagement
Best in class staff engagement For personal use only ASB Engagement Scores Comparative Engagement Scores 88% 88% 86% 85% 2012 2013 2014 2015 Source: ASB People & Culture Survey February 2015, IBM Kenexa 9
Slide 6: Strong customer focus
Strong customer focus For personal use only Retail customer satisfaction1 Area ASB Business < $250k turnover2 =1st Business $250k - $2m turnover2 1st Commercial $2m - $25m turnover2 1st Corporate $20m - $150m turnover2 =2nd Agribusiness $100k+ turnover2 2nd Mobile app1 =1st Premium1 =1st Call centre
Slide 7: Main bank share
Main bank share For personal use only ASB =2nd largest retail bank1 Main bank share Apr-151 1 Camorra Retail Market Monitor main bank share measure. % of respondents who selected ASB to the following question. “Please select ALL the financial service providers that you use in New Zealand…(multi resp
Slide 8: Profitable growth
Profitable growth For personal use only Customer advances Cost-to-Income Ratio Cash NPAT ROE (Stat) All numbers are presented in NZD 15
Slide 9: Agenda
Agenda For personal use only BARBARA CHAPMAN Chief Executive Officer JON RABY Chief Financial Officer Executive General Manager IAN PARK Retail & Business Banking Executive General Manager STEVE JURKOVICH Commercial, Corporate & Rural Executive General Manager RUSSELL JONES Technology & Innovation Q
Slide 10: Continuing growth
Continuing growth For personal use only Key Metrics 1H15 1H15 vs 1H14 Statutory Profit $444m ↑ 7% Cash NPAT $429m ↑ 9% Net Interest Margin (Cash) 2.41% ↑ 15bps Cost-to-Income ratio 38.7% ↓ (190)bps ROE (Stat) 19.0% ↑ 150bps 19
Slide 11: Strong margin performance
Strong margin performance For personal use only Cash NIM (%) 2.50% 2.52% 2.40% 2.41% 2.34% 2.29% 2.16% 1H13 2H13 1H14 2H14 1H15 ASB Peer 1 Peer 2 Peer 3 Chart based on financial year data (ASB: 31 December and 30 June; Peers: 31 March and 30 September). 21
Slide 12: Market share performance
Market share performance For personal use only Home lending Business, Commercial and Corporate -20bps +70bps 22.3% 22.3% 22.0% 21.9% 21.8% 11.2% 11.4% 10.5% 10.7% 10.1% Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Rural lending Household deposits +60bps +30bps 15.6% 21.4% 21
Slide 13: Segment growth reflects strategy
Segment growth reflects strategy For personal use only Home lending Business, Commercial and Corporate Rural lending Household deposits Spot balance growth twelve months to Mar 15. System data sourced from RBNZ Statistics (sector credit and funding by sector). 25
Slide 14: Mix of customer advances
Mix of customer advances For personal use only 27
Slide 15: Continued focus on "JAWs"
Continued focus on “JAWs” For personal use only “JAWs” Income Expense Growth Growth 5.1% 1.8% 3.1% 2.2% Chart based on Cash NPAT results for 1H15 vs. 1H14 (ASB: 31 December; Peers: 31 March). 29
Slide 16: Continued productivity focus
Continued productivity focus For personal use only Cost-to-Income (%) 1H14 1H15 Chart based on financial year data (ASB: 31 December ; Peers: 31 March). 31
Slide 17: Strategy execution driving results
Strategy execution driving results For personal use only Cash NPAT 1H15 Deposit margins Solid lending growth Fixed home loan margins +1% Strong lending growth Share of profit contribution +5% Fixed lending margins +26% Strong FUM and FUA growth +42% Excludes Corporate Centre and Other.
Slide 18: Leading Return on Equity
Leading Return on Equity For personal use only 1H13 1H14 1H15 19.0% 18.2% 17.5% 17.6% 15.3% 15.5% 15.3% 14.1% 13.8% 12.0% 12.1% 11.6% ASB Peer 1 Peer 2 Peer 3 ROE (Stat). Chart based on financial year data (ASB: 31 December; Peers: 31 March). 35
Slide 19: Credit quality and provisioning
Credit quality and provisioning For personal use only Total provisions to gross loans 90 day arrears bps 0.9% 0.7% Personal loans 49 49 0.5% 46 0.3% Credit cards Home loans 41 0.1% Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Troublesome and impaired assets 34 34 33 $m FY09 FY10 FY11 FY12 FY13 FY14 1H15 37
Slide 20: Agenda
Agenda For personal use only BARBARA CHAPMAN Chief Executive Officer JON RABY Chief Financial Officer Executive General Manager IAN PARK Retail & Business Banking Executive General Manager STEVE JURKOVICH Commercial, Corporate & Rural Executive General Manager RUSSELL JONES Technology & Innovation Q
Slide 21: Retail & Business Banking
Retail & Business Banking For personal use only Operating performance Cost-to-Income ratio 35.6% 1H15 vs 1H14 6.5% 5.6% -50bps 4.0% 35.1% Income Costs Operating Performance 1H14 1H15 Segment assets Segment liabilities $32.1b $42.9b +2.7% +8.1% $41.8b $29.7b Dec-13 Dec-14 Dec-13 Dec-14 41
Slide 22: Market leadership in Auckland
Market leadership in Auckland For personal use only 1 in 3 Aucklanders view ASB as their Auckland main bank.1 65 branches 269 ATMs Broad distribution footprint in 33.9% main bank share Auckland. #1 market share in youth1 and schools. =1st market share small business.2 Market leading community suppor
Slide 23: Retail main bank share
Retail main bank share For personal use only Auckland1 Rest of New Zealand1 ASB Peer 1 Peer 2 Peer 3 ASB Peer 1 Peer 2 Peer 3 33.9% 32.6% 30.8% 30.7% 26.1% 26.5% 21.6% 21.0% 13.6% 13.2% 12.4% 12.4% 10.5% 9.4% 10.8% 11.1% Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 1 Camorra
Slide 24: Strong customer satisfaction
Strong customer satisfaction For personal use only Auckland1 Rest of New Zealand1 77.4% 76.7% 72.3% 71.2% 68.2% 64.5% 62.8% 58.6% ASB Peer 1 Peer 2 Peer 3 ASB Peer 1 Peer 2 Peer 3 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 1 Camorra Retail Market Monitor April 2015. % of r
Slide 25: Productivity leadership
Productivity leadership For personal use only Call displacement Lending processing efficiency Retail loans processed per FTE per hour 6.1 Baseline Call Volume = 50,000 5.1 4.8 Actual Customer Calls 1 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 2013 2014 2015 1 Targeted group of regular contact centre callers
Slide 26: Transaction volumes
Transaction volumes For personal use only Branch ATMs1 25.5m 32.3m -47% -21% 25.4m 13.5m EFTPOS2 Internet3 293.2m 71.6m +129% 611% 127.8m 10.1m 1 All cardholder transactions on ASB ATMs. 2 EFTPOS and credit card transactions. 3 Online Internet and mobile financial transactions. *HY15x2 51
Slide 27: Branch of the future
Branch of the future For personal use only Tailored branch layouts Performance metrics Integrated digital to match local adapted to suit regional experiences from environment and focus - grow, optimise, education through to customer needs monitor sales fulfilment Video conferencing Concierge role in
Slide 28: Agenda
Agenda For personal use only BARBARA CHAPMAN Chief Executive Officer JON RABY Chief Financial Officer Executive General Manager IAN PARK Retail & Business Banking Executive General Manager STEVE JURKOVICH Commercial, Corporate & Rural Executive General Manager RUSSELL JONES Technology & Innovation Q
Slide 29: Corporate, Commercial & Rural
Corporate, Commercial & Rural For personal use only 40% of total NZ banking profits are in business and rural ASB currently below its ‘natural’ share in this market Corporate Commercial Rural $30m+ turnover $2m-$30m turnover All rural customers Working capital solutions Professionals Rural corporate
Slide 30: Market sentiment
Market sentiment For personal use only Our employees rank ASB =1st higher than “Finance best in class”1 Competitive 1st pricing2 =1st Our customers rank ASB Innovative 1st for Overall Performance2 Tailored products and solutions2 services2 1st ASB’s business ‘consideration’ Easy to deal has never be
Slide 31: Corporate, Commercial & Rural strategy
Corporate, Commercial & Rural strategy For personal use only Corporate Commercial and Rural Connecting people, Supporting ideas and capital customer ambition Investment in sales force effectiveness Small, high performing team Stable and experienced teams in market Ambition brand building market repu
Slide 32: Agenda
Agenda For personal use only BARBARA CHAPMAN Chief Executive Officer JON RABY Chief Financial Officer Executive General Manager IAN PARK Retail & Business Banking Executive General Manager STEVE JURKOVICH Commercial, Corporate & Rural Executive General Manager RUSSELL JONES Technology & Innovation Q
Slide 33: New Zealand's technology bank
New Zealand’s technology bank For personal use only 1st =1st =1st bank to offer internet customer satisfaction in customer satisfaction in banking in Australasia Auckland for website1 mobile app banking2 #1 1st 1st NZ bank for social media bank to integrate with NZ bank to offer digital engagement3
Slide 34: Digital engagement
Digital engagement For personal use only Mobile banking app satisfaction1 #1 NZ bank in social media engagement2 ASB Peer 1 Peer 2 Peer 3 86.1% 82.8% 82.1% 76.5% Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 1 Camorra Retail Market Monitor. % of respondents choosing “very good” or “excellent” to the question “
Slide 35: We are the leading social bank
We are the leading social bank For personal use only The world’s first real-time, Multi-award winning person-to-person banking Facebook campaigns application on Facebook The first bank to utilise Snapchat to engage with customers Using LinkedIn to engage with New Zealand businesses 69
Slide 36: Digital adoption
Digital adoption For personal use only % retail customers using FNC1 or app Monthly FNC logins via mobile device 73% 37% 66% 28% Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 17% Number of visitor sessions per month 11m 13% 7m 7m 4m ASB Mobile App FNC Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Apr-13 Oct-13 Apr-14 Oct
Slide 37: Transaction volume growth in digital
Transaction volume growth in digital For personal use only Digital transfers via mobile app vs FNC Transaction and savings accounts with e-statements 65% 17% 48% Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 New transaction accounts opened digitally (per mth) Home-loan one-off payments via mobile app vs FNC 73
Slide 38: A history of innovation
A history of innovation For personal use only 1997 2006 2012 2014 2015 ASB launches Launch of NZ’s 1st 1st bank Ability to make smartwatch Card management internet banking to launch virtual payments to features , with lock and limit site, FNC wallet Pago Facebook Apple watch soon control via app fri
Slide 39: We are now thinking like a tech company: choice
We are now thinking like a tech company …that is licensed and trusted to provide financial services For personal use only This means giving Licensed andcustomers trusted…choice ASB offers customers a choice of ways to pay PayTag can be used on any phone, and customers can turn it on and off NZ’s ind
Slide 40: We are now thinking like a tech company: control
We are now thinking like a tech company …that is licensed and trusted to provide financial services For personal use only This means giving Licensed andcustomers trusted… control ASB enables customers to manage their finances online >95% of credit card limit changes managed through digital channels
Slide 41: We are now thinking like a tech company: bridges
We are now thinking like a tech company …that is licensed and trusted to provide financial services For personal use only means building This Licensed andbridges as well as walls trusted… Security of customer data remains paramount ASB works with extended business partners to embrace new ideas ASB h
Slide 42: We are now thinking like a tech company: innovating
We are now thinking like a tech company …that is licensed and trusted to provide financial services For personal use only This means innovating Licensed for customers and trusted… ASB innovation is all about creatively solving customer problems Active adoption of technology company culture and pract
Slide 43: Agenda
Agenda For personal use only BARBARA CHAPMAN Chief Executive Officer JON RABY Chief Financial Officer Executive General Manager IAN PARK Retail & Business Banking Executive General Manager STEVE JURKOVICH Commercial, Corporate & Rural Executive General Manager RUSSELL JONES Technology & Innovation Q
Commonwealth Bank of Australia — Investor Presentation (June 2015) on 6ix