Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — UBS Seventh Annual Financial Service Conference (June 2008)
18 slides from Commonwealth Bank Of Australia's conference presentation, Jun 26, 2008
Slide 1: Commonwealth Bank of Australia - UBS Seventh Annual Financial Service Conference
Commonwealth Bank of Australia For personal use only David Craig Chief Financial Officer UBS Seventh Annual Financial Service Conference 26 June 2008 Commonwealth Bank of Australia ACN 123 123 124
Slide 2: Disclaimer
Disclaimer For personal use only The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation, 26 June 2008. It is information given in summary form and does not purport to be complete. It is not intended to be reli
Slide 3: Operating environment remains challenging
Operating environment remains challenging For personal use only Global credit markets remain significantly constrained and volatile Slowdown in global economic growth with China and India being key Domestic credit growth showing signs of slowing with uncertain economic outlook Possible credi
Slide 4: CBA well placed in current environment
CBA well placed in current environment For personal use only Strong competitive position and above system growth for core products Prudent funding and liquidity management sees CBA in a strong position Robust capital with key ratios benefiting from Basel II Sound risk management processes in
Slide 5: All brands performing strongly
All brands performing strongly For personal use only Banking Funds Mgt Insurance 5
Slide 6: Strong competitive position
Strong competitive position For personal use only Apr-07 Apr-08 Market Share Market Shares % % Increase Home Lending 18.36 19.06 0.70 Household Deposits 28.80 29.38 0.58 Business Lending 12.50 12.87 0.37 Business Deposits 12.67 13.92 1.25 FirstChoice 8.39 9.61 1.22 Note: FirstChoice data compares th
Slide 7: Strong growth in core products
Strong growth in core products For personal use only Home loan market share Institutional lending 13 consecutive monthly increases Above system growth continuing 1.60 19.2% 19.0% 1.50 Institutional Banking 19.0% 19.0% 1.40 RBA Business Market 18.8% 18.7% 18.8% 1.30 Index 18.8% 18.5% 1.20 18.6% 18.4%
Slide 8: Prudent funding and liquidity management
Prudent funding and liquidity management For personal use only Source of funding Strong financial position with AA credit rating as at 31 March 2008 25% Globally respected borrowers with highly diversified wholesale funding programme Short term wholesale Long term wholesale 54% Strong retail f
Slide 9: Strong capital position
Strong capital position For personal use only Capital Ratios* Basel II advanced accreditation received December 2007 Tier Total Capital ratios well above internal targets at 8.17% One Capital for Tier 1 CBA 8.17% 12.09% Peer 1 6.9% 10.1% Strongest capital position relative to peers Peer 2 7.4%
Slide 10: Good consumer credit quality
Good consumer credit quality For personal use only Home lending: Home loan arrears 1.60% ¾ Portfolio quality remains sound 1.40% 1.20% 1.00% ¾ Q3 arrears up-tick has plateau’d 0.80% 0.60% ¾ 60% of customers two+ payments in advance 0.40% 0.20% ¾ Portfolio average LVR ~40% on current values 0.00% J
Slide 11: Commercial portfolio quality remains sound
Commercial portfolio quality remains sound For personal use only No evidence of systemic or sector-specific issues Exposure by Risk Grade 32% 33% 30% 29% Over 70% of exposures investment grade 20% 19% 18% 19% Top 20 exposures all investment grade AAA to AA- A+ to A- BBB+ to BBB- Other Large
Slide 12: Provisioning
Provisioning For personal use only Impaired Assets Individual: 1,600 $m 40.0% 1,400 35.0% ¾ Driven by impaired assets 1,200 30.0% 1,000 25.0% ¾ CBA impaired assets < peer group 800 20.0% 600 15.0% ¾ Provision coverage in line with peers 400 10.0% 200 5.0% - 0.0% Collective: CBA Peer 1 Gross Impa
Slide 13: Determined to be different
Determined to be different For personal use only Determined to be better than we were Determined to be Australia’s finest financial services organisation Determined to continue to invest in the business Significant change programme underway Customer at the centre of everything we do Targ
Slide 14: Determined to be different
Determined to be different For personal use only X Customer Satisfaction at 10 year highs and trending higher Customer Service X Money Magazine “Bank of the Year” 2008 X New CommSec banking solutions launched June 2008 Business Banking X Strongest customer satisfaction gains amongst peer banks Techn
Slide 15: Customer satisfaction continues to improve
Customer satisfaction continues to improve For personal use only Overall Customer Satisfaction1 Business Customer Satisfaction2 Customer Satisfaction levels improving, Largest improvement over the past but with significant scope for further gains 12 months Customer Movement 85% Satisfied % main fina
Slide 16: FirstChoice
FirstChoice For personal use only Ranked 1st for Service Rated #1 Platform Ranking 60 1st 90% 50 2nd 80% 70% 40 60% 3rd 50% 30 40% 30% 4th 20 20% 10% 5th 0% 10 CFS Navigator Macquarie BT Wrap Asgard Asgard ING AMP AXA MLC FirstChoice Wrap Master eWRAP OneAnswer Planner Summit Masterkey Trust Portal
Slide 17: CBA well placed in current environment
CBA well placed in current environment For personal use only Strong competitive position and above system growth for core products Prudent funding and liquidity management sees CBA in strong position Robust capital with key ratios benefiting from Basel II Sound risk management processes in p
Slide 18: Commonwealth Bank of Australia - David Craig, CFO
Commonwealth Bank of Australia For personal use only David Craig Chief Financial Officer UBS Seventh Annual Financial Service Conference 26 June 2008 Commonwealth Bank of Australia ACN 123 123 124
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