Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — Debt Investor Presentation (February 2021)
27 slides from Commonwealth Bank Of Australia's debt investor presentation, Feb 24, 2021
Slide 1: CommBank PERLS XIII Capital Notes Investor Presentation
For personal use only CommBank PERLS XIII Capital Notes Investor Presentation NOT FOR DISTRIBUTION IN THE UNITED STATES Wednesday, 24 February 2021 SYDNEY: Commonwealth Bank of Australia (“CBA”) today released an investor presentation regarding its offer of CommBank PERLS XIII Capital Notes (“PERLS
Slide 2: CommBank PERLS XIII Capital Notes Investor Presentation
For personal use only CommBank PERLS XIII Capital Notes Investor Presentation 24 February 2021 Investments in CommBank PERLS XIII Capital Notes are an investment in CBA and may be affected by the ongoing performance, financial position and solvency of CBA. They are not deposit liabilities or protect
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by the Commonwealth Bank of Australia (“CBA”) in relation to the offer of CommBank PERLS XIII Capital Notes (“PERLS XIII”) (the “Offer”). The Offer will be made in or accompanied by a copy of the prospectus lodged with the Australian Securities and Inve
Slide 4: Overview
For personal use only Overview
Slide 5: Overview: CommBank PERLS XIII Capital Notes
Overview CommBank PERLS XIII PERLS XIII are subordinated, unsecured notes issued by CBA Capital Notes (“PERLS XIII”) For personal use only Offer size A$750 million, with the ability to raise more or less Use of proceeds The Offer raises Tier 1 Capital to satisfy CBA’s regulatory capital requir
Slide 6: Summary of Call and Exchange Dates
Summary of Call and Exchange Dates PERLS XIII do not have a fixed maturity date but may be Exchanged into Ordinary Shares, Redeemed or Resold. The diagram below summarises when these events could occur. For personal use only If none of these events occur, PERLS XIII could remain on issue indefinitel
Slide 7: Summary of events that may occur at any time
Summary of events that may occur at any time The diagram below summarises events that could happen at any time. For personal use only Events that could occur at any time Redemption at CBA’s option for Automatic Exchange into Automatic Exchange into Automatic Exchange into tax or regulatory reasons o
Slide 8: Loss absorbing capacity and AT1 distribution protection
Loss absorbing capacity and AT1 distribution protection CBA CET1 & Loss Absorbing Capacity5 APRA CET1 requirements Earnings available for Potential loss absorption before AT1 Future earnings dividends, AT1 For personal use only CET1 Ratio CET1 Ranges = $7.6bn 4 $41.5bn CET1 above Capital Trigger dis
Slide 9: Additional Tier 1 capital profile
Additional Tier 1 capital profile Level 2 regulatory capital ratios (%) AT1 capital profile2 For personal use only Capital ratios well above regulatory minimum Active management of refinancing requirements CET1 Additonal Tier 1 Issuance ($m) Call Dates ($m) Tier 2 18.9% 17.4% 17.5% 3,000 3.9 3.3 3.6
Slide 10: Key Dates
Key Dates Key dates for the Offer For personal use only Securityholder Offer Record Date 17 February 2021 Lodgement of Prospectus with ASIC 24 February 2021 Bookbuild 3 March 2021 Announcement of Margin 4 March 2021 Opening Date for the Offer and lodgement of the replacement Prospectus with ASIC 4 M
Slide 11: Key Features of CommBank PERLS XIII Capital Notes
For personal use only Key Features of CommBank PERLS XIII Capital Notes
Slide 12: Distributions
Distributions Distributions PERLS XIII are scheduled to pay floating rate Distributions quarterly until that PERLS XIII is Exchanged or Redeemed For personal use only The first Distribution is scheduled to be paid on 15 June 2021 Distributions are expected to be fully franked, but will be gros
Slide 13: Early Redemption & Resale
Early Redemption & Resale Early Redemption Rights for CBA may Redeem PERLS XIII in the following circumstances (subject to certain conditions including prior written approval by APRA): CBA For personal use only - on the Call Date (20 October 2026) – all or some PERLS XIII; or - at any time – all o
Slide 14: Mandatory Exchange
Mandatory Exchange Mandatory Exchange On the Mandatory Exchange Date (20 October 2028), CBA must Exchange all PERLS XIII (subject to the Maximum Exchange Number and Mandatory Exchange Conditions) for a variable number of Ordinary Shares with the benefit of a 1% discount1 For personal use only If
Slide 15: Automatic Early Exchange – Non-Viability Trigger Event
Automatic Early Exchange – Non-Viability Trigger Event Non-Viability Trigger Event A Non-Viability Trigger Event occurs when APRA notifies CBA in writing that it believes: - Exchange of all or some PERLS XIII (or the taking of an action in relation to other capital instruments of the CBA Group), i
Slide 16: Automatic Early Exchange – Capital Trigger Event
Automatic Early Exchange – Capital Trigger Event Capital Trigger Event A Capital Trigger Event occurs when: - CBA determines; or For personal use only - APRA notifies CBA in writing that it believes that either or both of the CBA Level 1 Common Equity Tier 1 Capital Ratio or CBA Level 2 Common Equ
Slide 17: Comparison between PERLS XIII and other types of investments in CBA
Comparison between PERLS XIII and other types of investments in CBA For personal use only There are differences between savings accounts, term deposits, PERLS XII, PERLS XIII and Ordinary Shares. You should consider these differences in light of your investment objectives, financial situation and pa
Slide 18: Comparison between PERLS XIII and other investments in CBA (cont'd)
Comparison between PERLS XIII and other types of investments in CBA (cont’d) For personal use only Savings account Term deposit PERLS XII PERLS XIII Ordinary Shares Interest/distribution/ No No Yes Yes Yes dividends at issuer’s discretion Impact on interest/distribution/dividend No N/A Yes, applies
Slide 19: Summary of Key Benefits and Risks
Summary of Key Benefits and Risks Key Benefits of PERLS XIII For personal use only PERLS XIII are scheduled to pay a floating Distribution Rate PERLS XIII Distributions are scheduled to be paid quarterly in arrears PERLS XIII pay a fixed Margin above the Market Rate to be determined through th
Slide 20: Summary of Key Benefits and Risks (cont'd)
Summary of Key Benefits and Risks (cont’d) Risks associated with CBA’s businesses which may affect CommBank PERLS XIII Capital Notes For personal use only The COVID-19 pandemic, and future outbreaks of other communicable diseases or pandemics, may negatively impact CBA, its customers, shareholders
Slide 21: Bank hybrid securities basics
Bank hybrid securities basics ASIC has published guidance on hybrid securities on its MoneySmart website which may be relevant to your consideration of CommBank PERLS XIII Capital Notes. You can find this guidance by searching “hybrid securities” at www.moneysmart.gov.au. For personal use only CBA h
Slide 22: Information about CBA
For personal use only CBA Information about
Slide 23: Overview – 1H21 result
Overview – 1H21 result1 Key outcomes summary For personal use only Financial Balance sheet, capital & funding Statutory NPAT2 ($m) 4,877 (20.8%) Capital – CET12,6 (Int’l) 18.7% +120 bpts Cash NPAT3 ($m) 3,886 (10.8%) Capital – CET12 (APRA) 12.6% +90 bpts ROE3 % (cash) 10.5 (180)bpts Total assets ($b
Slide 24: Overview – 1H21 result: Key financial outcomes
Overview – 1H21 result Key financial outcomes For personal use only Cash NPAT1 ($m) NIM1 Cost-to-income1,2 Cash ROE1 (10.8%) (10)bpts +120bpts (180)bpts +32.2% (3)bpts (10bpts) +220bpts 4,356 211 3,886 43.3% 44.6% 44.5% 12.3% 2,940 204 10.5% 201 8.3% 1H20 2H20 1H21 1H20 2H20 1H21 1H20 2H20 1H21 1H20
Slide 25: Strengthening: Already strong balance sheet and capital settings
Strengthening Already strong balance sheet and capital settings For personal use only Funding Provisioning Capital 75% deposit funded Total provisions of $6.8bn – increased coverage CET1 ratio of 12.6% (Level 2) Group transaction balances +37% Ongoing adjustments for economic forecasts, st
Slide 26: Capital strength
Capital strength Significant capital surplus, excess franking credits For personal use only bpts Capital generation CET1 Significant growth in surplus capital notwithstanding sector leading COVID-19 provisioning, balance sheet growth and dividend payments 12.8% 12.1% Lvl 1 12.1% CET1, Level 2 11.9%
Slide 27: Thank you
For personal use only Thank you
Commonwealth Bank of Australia — Debt Investor Presentation (February 2021) on 6ix