Commonwealth Bank Of Australia · ASX:CBA

Commonwealth Bank Of Australia — Q3 FY2020 Earnings Presentation

20 slides from Commonwealth Bank Of Australia's earnings presentation, May 13, 2020

  1. Slide 1: Commonwealth Bank of Australia

    Commonwealth Bank of Australia | ACN 123 123 124 | Ground Floor Tower 1, 201 Sussex Street, Sydney NSW 2000

  2. Slide 2: jurisdictions. Forward-looking statements can generally be identified by the use of forward-looking words such

    The material in this presentation is general background information about the Group and its activities current as at the date of the presentation, 13 May 2020. It is information given in summary form and does not purport to be complete. Information in this presentation is not intended to be relied u

  3. Slide 3: Supporting our customers and people

    ► Supporting our customers and people ‒ Customer repayment deferrals, waived fees and charges, hardship support ‒ Focus on getting support to customers quickly, including via market leading digital apps ‒ Significant improvement in employee engagement and pride ► Strengthened balance sheet settings

  4. Slide 4: $9bn of support to ~100,000 businesses

    Customers1 People >$9bn of support to ~100,000 businesses2 30k of our people with remote working capability ~240k repayment deferrals on home, personal and business loans $2k Interest-free one-off net advance available to all employees >1m calls and online requests for help (calls to hardship line +

  5. Slide 5: Depth and duration of downturn dependent on

    ► Depth and duration of downturn dependent on: RBA Baseline Forecasts1 (Calendar Years) ‒ Continuing effectiveness of containment measures Actual ‒ Effectiveness of Government, prudential and 2019 2020 2021 industry response and support measures GDP % 2.2 -6.0 6.0 ► Focus for CBA: ‒ Supporting our c

  6. Slide 6: Provisioning, funding, liquidity and capital

    Provisioning Funding Liquidity Capital • $1.5bn COVID-19 provision • 70% deposit funded • Liquids $188bn (qtr. avg $150bn) • CET1 10.7% (post 1H20 dividend) • Coverage ratio 1.65% • NSFR 117% (excess $98bn) • LCR 159% (qtr. avg 133%) • Expected uplift 67-77bpts (Lvl 2) Total credit provisions Covera

  7. Slide 7: Colonial First State sale: expected to deliver wide range of benefits

    ► Expected to deliver wide range of benefits: At a glance ‒ Colonial First State to become a more focused standalone business ‒ Expected to deliver a range of benefits for members and advisors alike ‒ CBA and KKR will commit to undertake a significant investment program; flexibility to participate i

  8. Slide 8: Flat income

    $m Operating Income Australian Volume Growth1 ► Flat income: 6,208 Flat 3Q20 Non- +$5.9bn ‒ Franchise strength underpins volume growth interest 1,561 (2%) • Lower Global Markets & SAF income +$5.1bn Income • Lower banking fees +$4.1bn ‒ Margin pressures persisting • • Favourable XVA +$115m Higher Co

  9. Slide 9: Loan loss rate

    Loan loss rate1 Arrears2 TIA bpts 90+ days $bn % of Personal Loans Credit Cards Home Loans3 0.72% 0.72% TCE Consumer 65 Corporate 120 Group 80 1.56% 8.1 1.50% 7.8 80 1.39% 73 Gross 3.4 3.5 impaired 1.07% 0.98% 41 0.91% 25 21 0.71% Corporate 20 19 17 0.65% 4.4 4.6 16 16 0.63% troublesome 15 15 16 Mar

  10. Slide 10: Compositional balance sheet strength positions CBA well

    $bn ► Compositional balance sheet strength positions CBA well for a range of possible economic Total Provisions scenarios Provision Coverage1 0.93% 1.34% 1.65% ► New provision reflects increases to forward looking adjustments Collective Provisions $5.4bn Individual Provisions $1.0bn 6.4 ► Bottom-up

  11. Slide 11: Macroeconomic assumptions reflect forward looking scenarios

    Downturn Prolonged Downturn ► Macroeconomic assumptions reflect forward looking scenarios updated for current Key assumptions: CY20 CY21 CY22 CY20 CY21 CY22 assessments of the impacts of COVID-19 -6.0% 6.0% 3.0% -7.1% -0.8% 2.3% ► Outputs consider deterioration of customer GDP % credit risk scores a

  12. Slide 12: CET1 %

    APRA ‘unquestionably strong’ Regulatory prudential minimum CET1 % Expected Level 2 Expected Level 1 uplift uplift (divestments)1 (divestments)1 Underlying capital generation +12bpts 67-77bpts 50-60bpts 11.7% (79) 51 (20) 11.1% 10.9% 18 (35) (10) (9) (16) 10.7% CommInsure Life 10.5% HQLA (14) COVID-1

  13. Slide 13: Appendix

    Appendix 13

  14. Slide 14: $9bn of support to ~100,000 businesses

    ► >$9bn of support to ~100,000 businesses2 Loan repayment SME Guarantee deferral requests Scheme ► Repayment deferral requests on ~240,000 loans ► Home loan repayments reduced to minimum – releasing up to ~240,000 $3.6bn to Australian households3 Personal loans 25,000 Personal loans ► Approved over

  15. Slide 15: Home loan portfolio (including Bankwest)

    Portfolio1 Mar 19 Dec 19 Mar 20 New Business1 Mar 19 Dec 19 Mar 20 Total Balances - Spot ($bn) 461 477 481 Total Funding ($bn) 20 53 24 Total Balances - Average ($bn) 460 472 480 Average Funding Size ($’000)7 312 343 343 8 Total Accounts (m) 1.8 1.8 1.8 Serviceability Buffer (%) 2.25 2.50 2.50 Varia

  16. Slide 16: Home loan portfolio (excluding Bankwest)

    Portfolio1 Mar 19 Dec 19 Mar 20 New Business1 Mar 19 Dec 19 Mar 20 Total Balances - Spot ($bn) 390 403 406 Total Funding ($bn) 17 44 21 Total Balances - Average ($bn) 389 399 405 Average Funding Size ($’000)6 310 340 339 Total Accounts (m) 1.5 1.6 1.6 Serviceability Buffer (%)7 2.25 2.50 2.50 Variab

  17. Slide 17: Sector overview

    Sector overview Sector Group TCE $bn TIA % of TCE Property • Well diversified by geography, sector and counterparty • Key asset classes are Retail (27%) and Office (23%) Mar 20 %TCE Dec 19 Mar 20 • Portfolio 90% investor and operator (incl. REITS) and 10% developer • 38% investment grade - some down

  18. Slide 18: Deposit profile

    Deposit profile1 Funding composition Wholesale funding Highest share of stable household deposits 70% deposit funded Weighted to Long Term $bn % of total funding Weighted Average Maturity2, years 515 533 Short term 11% 5.3 452 wholesale 24% Other 360 19% deposits 251 264 235 299 Long term 21% 3.5 3.

  19. Slide 19: G-SIBs in dark grey

    G-SIBs in dark grey 16.6 16.2 16.0 15.8 15.5 15.1 14.8 14.6 14.4 14.2 13.8 13.7 13.5 13.4 13.2 12.8 12.7 12.6 12.2 12.1 12.0 12.0 11.9 11.7 11.6 11.5 11.5 11.4 11.4 11.4 11.3 11.2 11.2 10.8 10.8 10.8 10.7 China Construct. Bank RBS Nordea Intesa Sanpaolo2 CBA WBC1 Credit Suisse2 China Merchants Bank

  20. Slide 20: Investor and media relations contacts

    Melanie Kirk Danny John For more information including Investor Relations Media Relations an audio webcast of the 3Q20 briefing commbank.com.au/tradingupdate 02 9118 7113 02 9118 6919 CBAInvestorRelations@cba.com.au media@cba.com.au This announcement has been authorised for release by Kara Nicholls,

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