Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — FY2020 Earnings Presentation
155 slides from Commonwealth Bank Of Australia's earnings presentation, Aug 12, 2020
Slide 1: Results Presentation and Investor Discussion Pack
Results Presentation and Investor Discussion Pack For the full year ended 30 June 2020
Slide 2: Important information
Important information The material in this presentation is general background information about the Group and its activities current as at the date of the presentation, 12 August 2020. It is information given in summary form and does not purport to be complete. Information in this presentation is no
Slide 3: Contents
Contents CEO & CFO Presentations 4 Overview & Strategy 34 Financial Overview 55 Home & Consumer Lending 89 Business & Corporate Lending 103 Deposits, Funding & Liquidity 115 Capital 122 Economic Overview 134 Sources, Glossary & Notes 147 Commonwealth Bank of Australia | ACN 123 123 124 | 3
Slide 4: Results Presentation – CEO
Results Presentation Matt Comyn, Chief Executive Officer Commonwealth Bank of Australia | ACN 123 123 124 | 12 August 2020 4
Slide 5: Overview
Overview Supporting customers – balanced outcomes – further strategic progress Supporting customers quickly with simple and efficient processes Delivering balanced outcomes reflecting core franchise strength Strengthening already strong balance sheet settings Executing our strategy: leading
Slide 6: Balanced outcomes
Balanced outcomes Delivering for all our stakeholders Customers & Community People All figures are approximates Employee engagement1 Proud to work for 1 million calls/online requests for help 89% 81% CBA2 250 million personalised support messages Confident in the 72% 90% future of CBA2 5.5 mil
Slide 7: Supporting our customers
Supporting our customers Simply, efficiently, effectively Informative Fast Value-add >5.5 million BizExpress1 >690k COVID-19 support page visits Approval & funding in <20 minutes2 Benefits finder claims 1. 90% of applications processed same day. 2. From 31 July 20, end-to-end funding for eligible di
Slide 8: This result
This result1 Lower cash profit on higher provisioning – strong capital – final dividend of $0.98 FY20 vs FY20 FY19 Statutory profit ($m) 9,634 +12.4% Cash NPAT ($m) 7,296 (11.3%) CET1 (%, Level 2) 11.6% +90bpts EPS (cash, $) 4.13 (53c) Dividend per share ($) 2.98 (1.33) 1. Statutory profit
Slide 9: Cash NPAT
Cash NPAT1 Lower due to COVID-19 provisions – subdued growth in income and expenses Operating Operating Loan Impairment Cash Income Expenses Expense NPAT $m $m $m $m Volume growth Increased COVID-19 costs COVID-19 provisioning Lower on higher provisions COVID-19 impacts Simplification be
Slide 10: Core franchise strength
Core franchise strength Volume growth underpinned by customer focus, operational execution Customer focus Operational execution Volume growth6 Positive NPS trends Simpler processes and digitisation Strong growth in all core markets Maintaining digital leadership Customer focus re-engineeri
Slide 11: Deposits
Deposits Strong, transactions-driven deposits growth Household Deposits1 Transactions2 Above system growth in 2H20 Transaction account balances +25% (+16% in 2H20) Leading market share further extended Strong growth across business units $bn $m 2H20 Growth 15 $bn COVID-19 25% 16% 5 4 3 278 2
Slide 12: Balance sheet strength
Balance sheet strength Long term strengthening – well placed across all metrics Funding Provisioning Capital 74% deposit funded, NSFR 120% $1.5bn COVID-19 provision (in 3Q20) CET1 ratio of 11.6% (Level 2) $191bn of liquid assets, LCR 155%1 Peer leading coverage ratio of 1.70% Another 58-
Slide 13: Repayment deferrals
Repayment deferrals1 Working with customers to return to normal arrangements as soon as possible Home Loans Personal Loans Business Loans Total home loans Total personal loans Total business loans Ongoing reviews 0.3% 1k active 8% 135k active deferrals 15% 59k active deferrals deferrals Proactiv
Slide 14: Repayment deferrals – home lending
Repayment deferrals – home lending1 Majority in lower risk segments Home lending deferrals1 Profile5 8% of accounts in deferral (~135,000) By State Interest Type Loan Type JobSeeker6 Other JobSeeker $48bn in balances WA 7% NSW IO 16% IHL ~14% 16% 33% 28% <20% in higher risk occupations2 QLD VI
Slide 15: Repayment deferrals – business lending
Repayment deferrals – business lending1 Rapid early support including 73,000 loans auto-deferred2 Business lending deferrals Profile3 Deferrals by Sector Deferrals by State Commercial Property ~86k at peak (~73k auto-deferred) 20% 15% Agriculture & Forestry Accommodation, Cafes and Restaurants Oth
Slide 16: Executing our strategy
Executing our strategy Simplification, lead in retail, business and digital Simplify our business Lead in retail & business Best in digital banking Majority sale of CFS (55%) #1 share – MFI, home loans, deposits Australia’s #1 banking app3 Core franchise >97% of Cash NPAT >50% of SME Guara
Slide 17: Australia's #1 digital bank
Australia’s #1 digital bank Personalised services - smart features - a better banking experience Personalised experience CommBank Rewards Customisable dashboard with Personalised shopping rewards from relevant and personalised big brands like Caltex, Myer, JB Hi-Fi notifications and Coles Coronaviru
Slide 18: Results Presentation – CFO
Results Presentation Alan Docherty, Chief Financial Officer Commonwealth Bank of Australia | ACN 123 123 124 | 12 August 2020
Slide 19: Summary
Summary Franchise strength and disciplined execution – delivering in a difficult environment Economic Franchise Disciplined Delivering Environment Strengths Execution Outcomes Lower volatility of earnings Customer support Home loan share gains Earnings pressure in a Organic capital generatio
Slide 20: Statutory vs Cash NPAT
Statutory vs Cash NPAT One-off gains on sale of wealth management businesses FY19 FY20 $m Statutory NPAT 8,571 9,634 • CFSGAM sold Aug 19 Less • CommInsure de-consolidated Nov 19 • PTCL sold Jun 20 Cash NPAT - discontinued operations 485 153 • CFS divestment expected 2H21 Non-cash items: • Includes
Slide 21: FY20 result
FY20 result1 Cash NPAT down 11.3% due to COVID-19 provisioning – operating performance +1% FY20 FY20 vs $m FY19 Operating Income 23,758 0.8% Operating Expenses 10,895 0.7% Operating Performance 12,863 0.9% Loan Impairment Expense 2,518 Lge Cash NPAT 7,296 (11.3%) 1. Presented on a continui
Slide 22: Operating income
Operating income1 Core volume growth, partly offset by impact of COVID-19 • Core volume growth • COVID-19 impacts: (234) • Lower margin ‒ Impairment of aircraft assets in SAF portfolio2 (108) ‒ Lower credit card & retail FX income from lower spend (95) ‒ Lower Merchant fee income due to fee waivers
Slide 23: Group margin
Group margin1 Net interest margin lower in 2H20 - impacted by cash rate cuts and higher liquid assets Cash Rate Headwinds2 This half FY21 vs FY20 7bpts 2 (5) (3) (4) 3 (7bpts) 211 1 1 1 Home loans: - SVR +6 Transactions (4) Savings (4) 204 - Discounting (2) R. Portfolio +2 Bus. Lending (2) Wholesale
Slide 24: Operating expenses
Operating expenses1 Lower remediation costs – higher cost of doing business in COVID-19 Notable items +2.7% (ex. notable items) 145 (358) +0.7% 585 (381) 41 39 10,824 10,895 Additional COVID-19 related costs, higher staff, IT & amortisation costs +300 Avg. FTE Cumulative cost savings realised: • FY2
Slide 25: Credit risk
Credit risk Loan loss rate inclusive of COVID-19 provisioning – some signs of emerging stress Loan Loss Rate1 - Group Arrears3 TIA FY19 FY20 • HL & PL’s insulated by loan deferrals Consumer 17 26 • Emerging stress across a range of • Signs of stress in credit cards + lower Corporate 14 50 sectors im
Slide 26: COVID-19 areas of focus
COVID-19 areas of focus Customer support - granular modelling of expected impacts Most impacted sectors Early impacts predominantly in Institutional exposures, Retail Trade Manufacturing with consumer and SME portfolios benefiting from loan repayment deferrals TIA $319m $541m TIA $487m $660m TIA %
Slide 27: Provisioning
Provisioning Significantly strengthened provisioning across both consumer and corporate portfolio Collective Provisions Total Provisions Alternate Economic Scenarios3 Provision Coverage1 Provision Coverage2 Current provisioning $1.1 billion higher 1.05% 1.44% 1.29% 1.70% than base case scenario Cons
Slide 28: Funding – strengthened settings
Funding – strengthened settings Higher deposits, longer wholesale maturities, short-term funding at historical lows Deposit Funding Long Term Funding1 Short Term Funding Term Funding Facility Weighted Average Maturity (WAM)2, Years % of total funding New issuance 74% 9.0 $31bn $21bn 69% 5.3 24% 5.1
Slide 29: Capital
Capital CET1 of 11.6% after payment of 1H20 dividend, COVID-19 provision CET1 % -10bpts in 2H20 Expected uplift Expected uplift (divestments)1 (divestments)1 (absorbing -17bpts of provisions/divestments & -11bpts interim dividend neutralisation) 58-68bpts 47-57bpts CommInsure Life 19 COVID-19 (32) C
Slide 30: CET1 trajectory
CET1 trajectory Consistently above targets through FY20, despite market volatility 12.1% 11.9% Above “unquestionably strong” throughout FY20 11.2% 11.0% 11.1% Maintaining surplus capital given significant Lvl 1 11.7% 11.6% Lvl 2 economic uncertainty 10.7% 10.6% 10.7% 10.5% Volatility over last
Slide 31: Capital and dividend considerations
Capital and dividend considerations Strong capital position - well placed for economic uncertainty Well placed Dividend Very strong capital surplus Reflects APRA’s recently updated guidance Credit RWA migration scenarios comfortably absorbed 2H20 stat payout ratio 49.95%, DRP via share issua
Slide 32: Economic Outlook
Economic Outlook Supporting our customers - prepared for a range of economic outcomes Continued uncertainty in all major economies Australia and New Zealand relatively well positioned ‒ Starting from position of fiscal and economic strength ‒ Strong mining exports, agriculture recovery, infrastr
Slide 33: Summary
Summary Core franchise strength – supporting customers - balanced outcomes Volume growth1 Employee engagement2 FY20 Supporting our customers and communities +25.0bn 81% +$18.4bn Strong employee engagement 72% 68% +13% +$7.0bn 1.3x 1.1x year-on-year Improving Net Promoter Scores system system B
Slide 34: Overview & Strategy
Overview & Strategy 34
Slide 35: Why CBA?
Why CBA? Leading franchise - leading returns MFI share1 Home Lending share2 Household Deposits share3 Net Promoter Scores CBA Change in FY20 (bpts) Deposit Funding Mobile App Net Promoter Score4 23 74% Peers as at Mar 20 37.6 40 35.5% 24.9% -31 -21 27.1% 68% 62% 61% -88 Peers CBA Peer 3 Peer 2 Peer
Slide 36: Our strategy
Our strategy Continued progress on becoming a simpler, better bank for our customers Become a simpler, better bank for our customers To deliver balanced and sustainable outcomes Execution priorities Simplify our business Customers Lead in retail and business banking Better outcomes Best in digital P
Slide 37: Delivering long-term sustainable returns
Delivering long-term sustainable returns Building on our competitive advantages and becoming a simpler, better bank Building Becoming Delivering on our competitive advantages a simpler, better bank growth & sustainable returns Leading franchise Divesting non-core Strong growth • Largest custom
Slide 38: A simpler bank
A simpler bank Divestment program well progressed – majority sale of CFS announced May 2020 Divestment Status CET1 Impact Core Business Completed Sovereign Jul-18 Level 2 FY20 Cash NPAT TymeDigital Nov-18 $m CFSGAM Aug-19 12.1-12.2% Pro-forma Count Financial Oct-19 CFP Pathways Cessation completed M
Slide 39: Lead in retail banking
Lead in retail banking Franchise strength supporting customers across the lifecycle1 50.4% 45.9% Jun 15 Jun 19 42.9% Jun 20 CBA MFI Share CBA MFI share1 MFI share1 32.7% 34.2% 35.6% 35.5% 35.5% 28.4% 27.0% 16.8% 12.8% 11.4% Jun 15 Jun 19 Jun 20 CBA Peer 3 Peer 1 Peer 2 Aged 14-17 Aged 18-24 Aged 25-
Slide 40: Lead in retail banking
Lead in retail banking Leveraging digital assets - enhanced core product offerings – improving NPS Leading digital assets Enhanced core products Delivering for customers Consumer NPS1 Volume Growth #1 Mobile app First Home Loan Deposit Scheme 0 CBA System #1 Online banking Home Loan Compassi
Slide 41: Strength in business banking
Strength in business banking Improved service model – enhanced core product offering – improving NPS Improved service model Enhanced core products Delivering for customers >2,500 Business Bankers and Specialists1 BizExpress – same-day loan decisioning Business NPS2 Brand consideration3 -10 50%
Slide 42: Strong technology foundations
Strong technology foundations Strengthening capabilities - extending leadership in new areas – innovation focus Foundations Leadership Extending leadership 24/7 Customer Launch of Engagement x15ventures Engine Building a pipeline Core banking of new digital Real-time Learns from customer businesses
Slide 43: Best in digital
Best in digital Market leading digital assets – delivering brilliant customer experiences Leading customer experience Strong customer engagement Mobile banking leader Net Promoter Score Customers Engaged Recognition and engagement with smart features2 Customer’s likelihood to recommend main financia
Slide 44: Benefits finder
Benefits finder Value-added support to customers in time of need Extended to Unique claims started businesses 694k COVID-19 Lockdown National Release Pre-release Dec 18 Jun 19 Dec 19 Jun 20 >2.2m unique customer visits >690k claims started since launch, with 370k during COVID-191 Over 230 bene
Slide 45: CommBank Rewards
CommBank Rewards Cashbacks when paying with a CommBank debit/credit Mastercard Engaged Customers (millions) 1.5 1.2 1.1 0.8 0.5 0.5 0.3 Dec Jan Feb Mar Apr May Jun 19 20 Personalised rewards based on where you shop Earn cashbacks from well known brands and track how much you save Launched in D
Slide 46: CommSec Pocket
CommSec Pocket Simple, low cost investing New to investing? Putting investments within reach of more Australians Start small with CommSec Pocket Simple and low cost investing app for new investors Investing directly in the share market with as little as $50 Automated regular investing 7 lo
Slide 47: BizExpress
BizExpress Simple, fast lending decisions when needed most BizExpress enhanced and re-shaped for rapid COVID-19 support Focus on SME lending under the Government Guarantee Scheme Made available 2 days after scheme announcement Unsecured lending up to $250k – with same day lending decisions
Slide 48: Extending digital leadership
Extending digital leadership Focus on 6 key areas Deep personalisation Integrated digital experiences Digitising end-to-end Embedded personalisation in app. Partnering to deliver best experiences Digitised COVID-19 response AI powered Customer Engagement Engine Launched first phase of Open
Slide 49: Innovating for future growth
Innovating for future growth Portfolio of ventures to enhance our core business – and two new strategic partners CommSec Pocket Everyday Home Property Business / app banking buying private 25+ 4 A dedicated vehicle for building new digital solutions for our ventures strategic customers in 5 years pa
Slide 50: Innovating for future growth
Innovating for future growth A strong pipeline through x15ventures – 4 ventures in market, 12 in development Home buying is hard – we make it simpler • Free access to credit scores • Simplifying the home buying process • Tool for small business owners • Simplifying business set-up process • Track, l
Slide 51: Good business practice
Good business practice Good progress on becoming a better bank for our customers $m Customer Remediation Better Customer Outcomes Royal Commission Committed to remediating customers quickly Delivering better customer outcomes through Well progressed on implementing the Cumulative spend & provisions
Slide 52: Increased regulatory requirements
Increased regulatory requirements Engaging with our regulators across a range of matters • APRA – delivering all 176 milestones of the Remedial Action Plan, with updates to APRA by the Independent Reviewer every 3 months. Delivering on APRA requirements and recommendations as part of their ongoing p
Slide 53: Delivering for our stakeholders
Delivering for our stakeholders Balanced and sustainable outcomes for all our stakeholders Customers & Community People MFI share1 Volume growth2 Employee engagement3 Women in Executive Manager 35.5% FY20 and above roles (%)4 +25.0bn 81% 47-50 +$18.4bn 41% 38% 39% 40 72% 2025 Goal +13% 2020 target 1
Slide 54: Sustainable outcomes
Sustainable outcomes Managing climate change risks and opportunities Our climate commitment Our lending commitments Seizing opportunities We are committed to playing our part in Exit thermal coal mining and coal-fired power $5.4bn in low carbon project funding, up 5%, limiting climate change in li
Slide 55: Financial Overview
! Financial Overview 55
Slide 56: Our profits
Our profits 80% of profits paid in tax and returned to shareholders 1 Profit before tax $10.3bn approximates • One of Australia’s largest taxpayers Tax Expense 3.1 29% • PAYG of $1.35bn2 • Returned to ~880,000 shareholders + millions more via Super Dividends 5.3 51% • Fully franked • Lending to Aust
Slide 57: Overview - FY20 result
Overview - FY20 result1 Key outcomes summary Financial Balance sheet, capital & funding Statutory NPAT2 ($m) 9,634 +12.4% Capital – CET12,4 (Int’l) 17.4% +120 bpts Cash NPAT3 ($m) 7,296 (11.3%) Capital – CET12 (APRA) 11.6% +90 bpts ROE3 % (cash) 10.3 (180) bpts Total assets ($bn) 1,014 +3.8% EPS3 ce
Slide 58: Overview - FY20 result
Overview - FY20 result Key financial outcomes Incl. discontinued operations Continuing operations Financial year ended (“cash basis”) FY20 FY20 vs FY19 FY20 FY20 vs FY19 Cash net profit after tax $7,449m (14.4%) $7,296m (11.3%) Cost-to-income1 47.2% (60)bpts 45.9% Flat Effective tax rate 29.5% +80 b
Slide 59: Overview - FY20 result
Overview - FY20 result Key financial outcomes Cash NPAT1 ($m) NIM1 Cost-to-income1 Cash ROE1 (11.3%) (2)bpts Flat (180)bpts 209 8,221 207 45.9% 7,296 45.9% 12.1% 10.3% FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 Cash EPS1 (cents) DPS (cents) CET1 (APRA) CET1 (International)3 FY20 Payout Ratio (53c) 71%
Slide 60: Financial overview
Financial overview1 Core franchise strength and operational execution in a challenging operating context Cash NPAT Volume growth2 Operating income Lower Cash NPAT Solid growth in core markets of business lending, Higher income with volume growth in core markets, home lending and transactions. partly
Slide 61: Financial overview – divisional contributions
Financial overview1 Divisional contributions FY20 vs FY19 % of Group Loan Cost-to- Operating Operating Operating Cash NPAT Impairment Income Business Unit FY20 2 Income Expenses Performance Expense NPAT FY20 3 RBS 54.1% 4.6% 1.3% 6.8% 50.3% 1.9% 38.7% BPB 36.4% 0.6% 0.1% 0.8% Lge (9.5%) 36.1% IB&M 9
Slide 62: Total operating income drivers
Total operating income drivers1 Higher volumes offset by lower margin, OBI, Funds and Insurance Funds & Insurance (22.6%) +0.8% Insurance income (5%) 23,577 23,758 Lower advice fees ($51m) 402 311 Cessation of fees and trail commissions ($37m) 4,951 4,837 Other Banking Income (2.3%) SAF aircraft ass
Slide 63: Net interest income
Net interest income1 Growth in lending and deposits, partly offset by impacts of cash rate reductions $m Volume: +3.0% Margin: (2) bpts +7 bpts (8) bpts +3 bpts +5 bpts (6) bpts (3) bpts 628 449 (538) (718) +2.1% 269 (269) 565 18,610 18,224 Home Loan Cash rate Strong growth in Lower earnings on High
Slide 64: Volume growth
Volume growth Above system growth in home lending and household deposits Home Lending1 Business Lending1,2 Household Deposits4 CBA System CBA System CBA System annualised annualised annualised CBA Includes IB&M 5.1%3 11.6% 9.3% 9.8% 8.6% 3.7% 4.3% 7.2% 6.2% 3.3% 3.2% 4.8% 4.9% 6 Months 11 Months 6 M
Slide 65: Market share
Market share Strong market shares in core markets Home Lending1 Business Lending1 Household Deposits2 34% CBA Peers 32% CBA 34% CBA Peers 28% Break in series 30% from Mar 19 Break in series 30% from Jul 19 Break in series from 24% Jul 19 27.1% 26% 24.9% Includes 26% 20% IB&M 22% 22.1% 14.8% 21.4% 16
Slide 66: Market share
Market share1 Strong market shares in core markets % Jun 20 Dec 19 Jun 19 Home loans – RBA2 24.9 24.9 N/A Home loans - APRA 3 25.7 25.5 25.2 Credit cards - APRA 3 26.5 26.6 26.6 Other household lending – APRA3,4 18.9 19.1 19.3 Household deposits - APRA 3 27.1 26.8 26.7 Business lending – RBA 2 14.8
Slide 67: Balance sheet
Balance sheet Continued good growth in core markets Group Lending Jun 20 vs Jun 20 vs $m Jun 19 Dec 19 Jun 20 Dec 19 Jun 19 +2% Home Loans 522,942 535,090 542,880 1.5% 3.8% +1% 21,993 21,167 18,217 (13.9%) (17.2%) Consumer finance Business and corporate loans 214,953 214,145 216,695 1.2% 0.8% 770 77
Slide 68: Impact of low interest rates
Impact of low interest rates Managing a low interest rate environment % Cash rate Approach • Group wide co-ordination • Preserving strong funding & liquidity position, optimising portfolio composition 1.75 1.50 1.50 • Granular deposit margin management aligned with customer and regulatory value 1.25
Slide 69: Group margin
Group margin1 Margin lower due to impact of cash rate reductions, partly offset by lower basis risk bpts Transactions (6) Higher Savings (5) Lower basis risk average Investment (2) and reduced liquids and Replicating Portfolio +4 exposure trading Lower wholesale funding +1 assets 7 5 (6) (8) 209 3 (
Slide 70: Group margin
Group margin Deposits hedge +4bpts - providing partial relief in a low interest rate environment Replicating Portfolio (RP) & Equity Hedge Liquidity & Basis Risk (Deposits Earnings1: -11bpts, Deposits Hedge +4bpts and Equity Hedge: -4bpts) • Every additional $10bn of liquid assets3 is expected to re
Slide 71: Margins by division
Margins by division1 Lower interest rates impacting across business units RBS2 BPB IB&M NZ (ASB) Lower wholesale funding costs & Lower business lending and Higher 2H20 margin driven by Declining margin reflecting the home loan repricing offset by deposit margins in the half, partly higher Markets in
Slide 72: Other banking income (OBI)
Other banking income (OBI)1,2 Lower commissions, impairment of aircraft assets, and realised loss on NZ hedge Other Banking Income Trading Income $m Impairment of $m aircraft assets under 4,951 4,837 operating leases and realised loss on NZ 940 Improved Other 429 354 hedge, partly offset 853 trading
Slide 73: Income forgone
Income forgone1 Delivering savings to customers – impact largely embedded in run-rate Income forgone by line item Income forgone by date of initiative $m $m Date of pricing 330 change RBS BPB Total RBS BPB FMI FMI 25 - 25 2H19 OBI OBI 90 10 100 105 • Calculation of interest on credit cards NII 3
Slide 74: Sequential operating income
Sequential operating income1 Lower margin, 2 fewer days, lower banking income, partly offset by core volume growth $m • 2 fewer days (102) • Lower credit card & retail FX income from lower spend due to COVID-19 (146) • Margin (7bpts) • Impairment of aircraft assets in SAF portfolio 2 (108) • Core vo
Slide 75: Sequential operating expenses
Sequential operating expenses1 Higher remediation provisions, COVID-19 related costs and IT increases $m 7,000 Notable items +0.4% (ex. notable items) +9.3% 6,000 120 (104) 454 7 6 5,689 Increased call centres, financial 5,206 assistance and operations 5,000 Increased remediation costs: resources in
Slide 76: Customer remediation
Customer remediation Additional remediation provision – committed to remediating customers quickly Remediation and program costs Composition Cumulative spend and provisions Cumulative spend and provisions $2,653m $2,653m $2,174m Refunds made 732 $1,178m Refunds remaining 914 Program costs 1,007 FY14
Slide 77: Investment spend
Investment spend1 Investment spend up 8% in FY20 – risk and compliance now 72% of total spend FY20 vs FY20 vs $m $m Investment spend FY19: Investment spend FY19: 1,437 +8% 1,437 +8% Total Total 1,334 1,334 695 798 +15% 731 771 +5% Expensed 2nd Half 1st Half 639 639 Flat 603 666 +10% Capitalised FY19
Slide 78: Strategic cost reduction
Strategic cost reduction Building momentum – committed to long-term cost reduction Targets Progress to-date Cost-to-Income1 Cumulative cost reduction achieved Sequential operating Elevated expenses growth rate compliance/ 45.9% 45.9% $326m 2.3% (excl. notable items) remediation < 40% $222m Non-core
Slide 79: Balance sheet resilience
Balance sheet resilience Conservative settings – prepared for a range of possible macro-economic outcomes Credit Risk Funding Liquidity Capital • Disciplined approach • Peer leading deposits • Significant excess liquidity • Unquestionably strong • COVID-19 provision • NSFR 120% • LCR well above mini
Slide 80: Asset quality
Asset quality Sound portfolio credit quality – deferrals assisting – well provisioned Loan Impairment Expense1 Provision coverage2 Loan losses3 Impairment Expense at 33bpts reflecting COVID-19 Prudent levels of credit provisioning Portfolio losses remain low provisioning Group Total Loans Current Hi
Slide 81: Provisions, Scenarios & Credit RWA migration
Provisions, Scenarios & Credit RWA migration A range of scenarios considered – provisioned between Central (Downturn) and Downside Macroeconomic assumptions reflect forward Central - Downturn Downside looking scenarios updated for current assessments of the impacts of COVID-19 Key assumptions: CY2
Slide 82: Business units
Business units Core businesses contribute ~97% of Group NPAT $m ~ 97% of Group NPAT1 $m Divestments/Strategic reviews Movements are FY20 vs FY19 Movements are FY20 vs FY19 2% 3,949 (9%) (41%) (20%) (48%) (9%) (74%) 50% Lge 2,654 967 655 131 137 48 (952) 16 RBS 2 BPB IB&M ASB IFS Other Wealth Managem
Slide 83: Cash NPAT by division
Cash NPAT by division1 Higher provisioning (COVID-19) impacted across business units RBS2 BPB IB&M NZ (NZD) • Income +5% • Income 1% • Income (7%) • Income flat • Costs +1% • Costs flat • Costs +1% • Costs +11% • Impairment +50% • Impairment +$430m • Impairment +$330m • Impairment +$198m 2% 3,875 3,
Slide 84: Retail Banking Services (RBS)
Retail Banking Services (RBS)1 Operational execution – improved NPS – volume growth above system – income up 5% Net Promoter Score2 MFI Share3 Volume growth Balancing growth and returns - managing 0 Consumer NPS #2 regulatory requirements 35.5% (annualised) -5 35.6% CBA System 9.8% -10 8.6% 4.3% -15
Slide 85: Business and Private Banking (BPB)
Business and Private Banking (BPB) Renewed focus on service model and leveraging digital assets – improving NPS Net Promoter Score1 SME Guarantee Loan Scheme2 Volume growth In June, CBA achieved its highest NPS score in the last CBA has funded more than 50% of all SME Guarantee Jun 20 vs Jun 19 2 ye
Slide 86: Institutional Banking and Markets (IB&M)
Institutional Banking and Markets (IB&M) Combining global connectivity and capability to build a better Australia Net Promoter Score IB&M Lending Credit RWAs Institutional NPS1 (Turnover $300m+ pa) #1 for 5 months Higher drawdown of warehouse facilities FY20 growth driven by regulatory changes, fore
Slide 87: ASB
ASB Strong deposit growth, partly offset by COVID-19 driven impairments and higher expenses COVID-19 Customer Support Volume growth Deposits ASB has provided support to customers through Strong deposit volume growth Strong deposit growth reflecting heightened COVID-19 relief packages, including loan
Slide 88: Wealth
Wealth Discontinued operations impacted by one off expense provisions Wealth Management Contribution to Total NPAT CFS and Other (Discontinued) Platform pricing changes and one off expense Group NPAT Contribution % Group NPAT (incl discontinued operations) provisions contributed to the lower result
Slide 89: Home and Consumer Lending
Home and Consumer Lending 89
Slide 90: Home lending overview
Home lending overview Process efficiency – above system growth - strong risk profile Consistent balance growth Growth driven by new fundings Assisted by process efficiencies System multiple1 Home Loan Fundings ($bn)2 Proprietary - % of loans auto-decisioned same day4 1.3x 2H20: 58% Proprietary3 75%
Slide 91: Serviceability assessment
Serviceability assessment1 Tighter serviceability and underwriting standards in the current environment Stricter assessment criteria applied progressive from April 20202 New Loan Assessment All income used in application to assess serviceability is verified Additional cap on overtime, bonus & co
Slide 92: Borrowing capacity
Borrowing capacity1 Maintaining credit availability – lending growth well within risk appetite Reduced borrowing capacity for investors due to lower interest rates Lower floor rates supportive - broadly offsetting impact of revised HEM impacting negative gearing Interest rate buffers (%) Change in m
Slide 93: Portfolio quality remains sound
Portfolio quality remains sound1 Strong repayment buffers in place Repayment buffers Those with less than 1 month buffer include investors and new borrowers (Payments in advance2, % of accounts) <1 month 35%34%35% 33% 32%33% 10% 10% 10% Residual Jun 19 Dec 19 Jun 20 6% 5% 6% Structural: e.g. fixed r
Slide 94: Home loan portfolio – CBA
Home loan portfolio – CBA A balanced approach to portfolio quality, growth and returns Portfolio1 Jun 19 Dec 19 Jun 20 New Business1 Jun 19 Dec 19 Jun 20 Total Balances - Spot ($bn) 467 477 485 Total Funding ($bn) 43 53 53 Total Balances - Average ($bn) 462 472 482 Average Funding Size ($’000)7 320
Slide 95: Home loan portfolio – CBA ex Bankwest
Home loan portfolio – CBA ex Bankwest A balanced approach to portfolio quality, growth and returns Portfolio1 Jun 19 Dec 19 Jun 20 New Business1 Jun 19 Dec 19 Jun 20 Total Balances - Spot ($bn) 395 403 411 Total Funding ($bn) 36 44 47 Total Balances - Average ($bn) 391 399 407 Average Funding Size (
Slide 96: Portfolio LVRs
Portfolio LVRs1 Portfolio LVRs stable in FY20 Average Portfolio Dynamic LVR2 Dynamic LVR Bands3 Jun 19 Dec 19 % of total Portfolio Accounts Jun 20 53% 52% 53% LVR LVR LVR LVR LVR LVR LVR ≤60% 60%- 70%- 80%- 90%- 95%- >100% Jun 19 Dec 19 Jun 20 70% 80% 90% 95% 100% Negative Equity4 Dynamic LVR Bands3
Slide 97: Interest Only (IO) home loans
Interest Only (IO) home loans1 Reducing proportion of IO home loans for total portfolio and new business flow Proportion of IO loans reducing Augmented by a reducing proportion of total new business flows IO % of total home loans – total portfolio balance IO % of total home loans – new business flow
Slide 98: Home loan arrears
Home loan arrears Relatively stable due to focused collections practices, repayment deferrals and low cash rate Group portfolio arrears relatively stable Continued downward trends on …with interest only arrears improved year-on- this half Owner Occupied year, with minor deterioration in the last qua
Slide 99: Home loan impairments
Home loan impairments Reduced impairments given loan repayment deferrals Impaired home loans $bn Overview • Exits outpaced new impairments in the six months to Jun-20 1.81 1.85 1.67 • New impairment volumes reduced as a result of the take up of COVID-19 deferrals, where arrears are paused • Highest
Slide 100: Portfolio losses and insurance
Portfolio losses and insurance1 Portfolio losses remain historically low and manageable in a severe stress scenario Losses to average gross loans2 Portfolio Insurance Profile3 2.5% % of Home Loan portfolio Current Historical Avg.4 Insurance with Genworth or 2.0% Group Total Loans 0.13% 0.31% Excess
Slide 101: Managing unsecured lending
Managing unsecured lending Personal loan arrears steady given loan deferrals – emerging stress in credit cards 2.0% Credit Cards1 2016 2017 Group 90+ days 2018 Credit Cards arrears rates increased in 4Q20 driven by 1.5% 2019 2020 reduced portfolio balances and emerging COVID-19 Adjusted for portfo
Slide 102: Consumer arrears
Consumer arrears Collections resources re-allocated to customer support, impacting new arrears, ASB write-offs Group Credit Cards Credit Cards Group 5.4% Bankwest 1.8% Bankwest 4.8% CBA Group 30+ days Group 90+ days CBA 4.2% ASB ASB 1 3.6% 1.2% 3.0% 2.4% 1.8% 0.6% 1.2% 0.6% 0.0% 0.0% Jun 18 Dec 18 J
Slide 103: Business and Corporate Lending
Business and Corporate Lending 103
Slide 104: Portfolio quality
Portfolio quality1 67% investment grade – weighted to Australia/NZ Exposures by Industry Corporate portfolio quality Group TCE by geography AAA A+ BBB+ Jun TCE $bn to to to Other Investment Grade Jun 19 Dec 19 Jun 20 20 AA- A- BBB- Australia 78.4% 79.5% 79.8% Sovereign 118.0 12.4 0.7 0.1 131.2 67.4%
Slide 105: Credit exposure summary
Credit exposure summary TIA/TCE at 0.78% - emerging stress in impacted sectors Group TCE1 TIA $m TIA % of TCE1 Dec 19 Jun 20 Dec 19 Jun 20 Dec 19 Jun 20 Consumer 60.0% 58.8% 2,111 1,952 0.32% 0.30% Sovereign 9.9% 11.7% - - - - Property 6.5% 6.6% 835 714 1.17% 0.97% Finance – Other 4.9% 4.7% 33 45 0.
Slide 106: Sector focus – commercial property
Sector focus – commercial property Portfolio weighted to NSW – TIAs remain low at 1.0% Group exposure Jun 19 Increased exposure this half primarily to investors. 73.4 Dec 19 71.1 68.2 Jun 20 Diversified across sectors and by counterparty with the top 20 counterparties representing 17% of the por
Slide 107: Sector focus – residential apartments
Sector focus – residential apartments Weighted to Sydney – sound leverage and qualifying pre-sale debt coverage Sound credit quality with TIA for the Total Residential segment <0.3% of total Total Residential Profile Apartment Development1 Commercial Property exposure. $8.8bn (12% of CP) $1.6bn (0
Slide 108: Sector focus – transport and storage
Sector focus – transport and storage Conditions remain challenging The Air Transport and Services sector includes aviation and airport Group exposure2 Jun 19 exposures which have been heavily impacted by passenger reductions 22.5 21.9 23.5 Dec 19 resulting from COVID-19 restrictions, reducing cred
Slide 109: Sector focus – agriculture
Sector focus – agriculture Well diversified, weighted to NZ dairy – some risk to supply chains due to COVID-19 Group agriculture exposure of $22.2bn (2.0% of Group TCE) – Group exposure Jun 19 22.5 22.6 22.2 diversified by geography, sector and client base. Dec 19 NZ Dairy sector milk prices for
Slide 110: Sector focus – retail trade
Sector focus – retail trade Conditions remain challenging The retail trade sector remains weak, challenged by COVID-19 and Group exposure1 Jun 19 11.3 Dec 19 ongoing, long term competitive pressures. 10.811.0 Jun 20 COVID-19 has increased sector challenges particularly in discretionary segments
Slide 111: Sector focus – accommodation, cafes and restaurants
Sector focus – accommodation, cafes and restaurants Conditions remain challenging Group exposure Jun 19 The closure of international borders and restrictions on Dec 19 domestic tourism, combined with social distancing rules 9.2 9.6 10.0 Jun 20 has materially impacted the sector. 134 135 122 Pubs
Slide 112: Sector focus – construction
Sector focus – construction Outlook is uncertain Group exposure Jun 19 Exposure is higher in the half, while TIAs have reduced. 8.2 8.1 8.6 Dec 19 Jun 20 Risk appetite continues to be cautious. 18 18 17 As a designated essential industry, the sector has continued to operate through COVID-19 with
Slide 113: Sector focus – mining, oil and gas
Sector focus – mining, oil and gas Exposures broadly stable, well diversified Group exposure Jun 19 Exposures of $10.5bn (0.9% of Group TCE), reduced by 11.4 Dec 19 11.010.5 $0.5bn over the past 6 months mainly from reduced Oil & Jun 20 Gas facilities. 75 76 73 Stable performance over the past 6
Slide 114: Sector focus – cultural and recreational services
Sector focus – cultural and recreational services Outlook remains weak Group exposure Jun 19 Diverse industry with many sub-sectors (including Casinos 6.2 6.2 6.3 Dec 19 58 55 and Cinemas) impacted by government restrictions, including 48 Jun 20 shutdowns and social distancing initiatives. Certa
Slide 115: Deposits, Funding and Liquidity
Deposits, Funding and Liquidity 115
Slide 116: Funding overview
Funding overview Resilient balance sheet – lengthened funding profile – excess liquidity Funding composition Wholesale funding Funding profile Deposit growth supporting 74% of funding Wholesale funding weighted to Long Term Balanced maturity profile reducing refinancing risk FY20 Maturity % of total
Slide 117: Deposit funding
Deposit funding Highest share of stable household deposits in Australia Deposit funding $bn Deposits vs peers1 Deposits in NSFR2 552 As at 30 Jun 2020 ($bn) 74% 453 Peers as at 31 March 20203 Other 273 372 deposits 307 250 CBA 69% 232 67% 68% 234 Peer 3 178 66% Household 279 Peer 1 deposits 221 138
Slide 118: Wholesale funding
Wholesale funding Well funded - portfolio WAM at 5.3 years Long term funding1 Indicative funding costs5 Weighted Average Maturity (WAM)2, Years 3.0% New issuance (FY20) 9.0 $31bn Portfolio 5.4 $21bn 2.5% 5.3 5.1 2.0% 10yr market v funding cost 66% 66% 69% $1.5bn 1.5% Long Long Long drawn Term Term T
Slide 119: Wholesale funding
Wholesale funding Diversified wholesale funding across product, currency and tenor Portfolio mix Short term funding by product¹ Short term Certificates of Deposits 59% 34% 34% 31% funding¹ Commercial Paper 18% 66% 66% 69% Long term FI Deposits 15% funding2 5.1 5.4 5.3 WAM3 WAM3 WAM3 MTN 8% Other 0%
Slide 120: Long term funding
Long term funding $14.5bn long term wholesale funding issued and $1.5bn TFF drawdown completed in FY20 Group FY20 benchmark issuance New term issuance by currency New term issuance by tenor Tenor Volume Spread at Date Entity Type 21% (yr) (m) Issue (bpts) 25% 30% 38% 42% 45% >5 years Aug-19 ASB NZD
Slide 121: Funding and Liquidity metrics
Funding and Liquidity metrics1 Strong funding and liquidity positions maintained 120% 0.5 120% 0.5 NSFR NSFR (%) (0.8) 2.8 (2.1) 679 Jun 20 564 Wholesale 5.7 2 Funding & Other Liquids and Other Assets 112% 1.3 Other Loans Retail/SME Deposits Residential Mortgages ≤ 35% risk weight 3 $bn Capital Capi
Slide 122: Capital
Capital 122
Slide 123: Capital overview
Capital overview Strong capital position maintained CET1 CET1 CET1 Dividend per Share International 489% (cents) APRA Level 2 Level 2 Payout Ratio (cash NPAT basis) Level 1 17.4% Assets 431 431 11.9% 420 420 429 11.6% 130% 298 11.2% 16.2% 10.7% 88% 77% 80% 75% 75% 71% Jun 19 Jun 20 Jun 19 Jun 20 Jun
Slide 124: Capital
Capital Lower share count supports higher shareholder returns and dividends compared to peers Number of shares (bn) Dividend Per Share ($)2 3.6 Capital raisings for strengthening during 3.0 3.0 GFC 2.98 2.6 2.8 2.1 1H20 Interim Dividend 1.8 1.30 Peer 1: Deferred 1.5 1.8 1.23 Peer 2: Down 64% Peer 3:
Slide 125: Capital drivers
Capital drivers Higher Risk Weighted Assets this half bpts CET1 5 $bn Total Risk Weighted Assets (RWA) 26 (43) (79) 95 (14) 449 7.0 (2.3) 455 11.7% 11.6% Market Risk (1.0) 2.1 PTCL 7 Credit RWA 3 IRRBB 9 5 13 11 COVID-19 (32) CMLA 19 IRRBB (5) Remediation (11) Op Risk 60 57 Market RWA (18) Op RWA 6
Slide 126: Capital targets and focus areas
Capital targets and focus areas Target setting underpinned by ongoing capital discipline bpts Illustrative Targets Organic Capital Generation1 month above 10.5% FY20 $m Bpts month below 10.5% RBS 4,538 99 Level 1 BPB 2,483 56 Level 2 IB&M 386 10 10.5% New Zealand 918 19 APRA ‘unquestionably strong’
Slide 127: CET1 (Level 1)
CET1 (Level 1) CET1 Level 11 +30 bpts above Level 22 at 11.9% CET1, bpts -20bpts in 2H20 (absorbing -7bpts of provisions and divestments and -12bpts interim dividend neutralisation) Pro-forma Impact 12.4%-12.5% Differences between Level 1 and Level 2 (bpts) 12.1% (23) 11.9% Lower RWA at Level 1 due
Slide 128: CET1 – internationally comparable
CET1 – internationally comparable The Group’s CET1 ratio of 11.6% translates to 17.4% on an international basis bpts Internationally comparable1 CET1 CET1 APRA 11.6% Equity investments 0.8% Capitalised expenses 0.1% 17.5% (99) 121 (12) 9 17.4% Deferred tax assets 0.5% 16.5% 17 (46) IRRBB RWA 0.3% Re
Slide 129: Regulatory expected loss
Regulatory expected loss Increase in provisions due to COVID-19 $m Jun 19 Dec 19 Jun 20 Regulatory Expected Loss (EL) 4,706 4,440 4,910 Eligible Provisions (EP) Collective Provisions1 3,510 3,663 4,902 Specific Provisions1,2 1,751 1,647 1,769 General Reserve for Credit Losses adjustment3 515 - - Les
Slide 130: Regulatory capital changes
Regulatory capital changes Scheduled implementation of Basel III reforms in Australia deferred by one year Change Details Implementation APRA commenced consultation on: • Revisions to risk-based capital requirements for credit, interest rate risk in banking book and operational risk; 1 Jan 2023 APRA
Slide 131: APRA's LAC requirements
APRA’s LAC requirements 3% increase in Total Capital by 2024 to increase loss absorbing capacity (LAC) 18.0% • Additional 3% of RWA in Total Capital applicable to all 17.5% 14.5% Capital Surplus domestically systemically important banks (D-SIBs) by 1 Jan 24. 15.0% Tier 2 • CBA requires an additional
Slide 132: RBNZ capital requirements
RBNZ capital requirements New Zealand Tier 1 minimum to increase to 16% RBNZ capital requirement changes 16.0% 18.0% Minimum • Due to COVID-19 implementation was delayed by one year until 2.0% Tier 2 Tier 1 July 2021 with a transitional period of 7 years. 2.5% AT1 • Under APRA’s proposed revisions t
Slide 133: Leverage ratio
Leverage ratio CBA leverage ratio well above proposed APRA minimum Leverage ratio introduced to constrain the build-up of leverage in $m Jun 20 the banking system Tier 1 Capital 63,414 Leverage ratio = Tier 1 Capital Total Exposures 1,073,131 Total Exposures Leverage Ratio (APRA) 5.9% 7.0% 6.7% $m J
Slide 134: Economic Overview
Economic Overview CBA Chief Economist 134
Slide 135: Key Australian economic indicators (June FY)
Key Australian economic indicators (June FY) GDP % Trimmed Mean CPI % Unemployment rate % GDP Nominal GDP 1.6 1.7 1.6 1.5 1.5 8.9 8.5 3.8 1.3 2.4 2.9 2.0 6.2 4.9 5.3 5.3 5.7 5.5 5.6 5.1 0.0 -3.6 1.9 -3.4 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 2017 2
Slide 136: The Global Economy
The Global Economy Risks remain elevated despite some improvement The global economy is in recession As the severity of Covid-19 lockdowns differed.. …so did the economic contraction in Q1 20 GLOBAL GROWTH FORECAST EVOLUTION1 COVID-19 GOVERNMENT RESPONSE STRINGENCY INDEX2 GDP GROWTH IN Q1 20203 % (a
Slide 137: The Australian Economy
The Australian Economy The breadth and depth of the Covid-19 impact Border closures impacting international tourism Business confidence retreated more than State lockdown measures impacting spending consumer confidence 000's SHORT TERM OVERSEAS ARRIVALS1 CONFIDENCE2 % % CBA: CARD SPEND IN-STORE3 Ind
Slide 138: The Australian Economy
The Australian Economy The medium term Covid-19 impact Spare capacity in the labour market to remain Some % industries will take longer to recoup than Household incomes being supported by elevated others, judged by job losses to date government payments % AUST. LABOUR FORCE1 EMPLOYMENT CHANGE1 WAGES
Slide 139: The Australian Economy
The Australian Economy The outlook from here and other themes Australia is in recession – growth of -4.2% The unemployment rate to peak ~9% and take Inflation rates to weaken expected in calendar 2020 a long period to retreat % CBA FORECAST: GDP1 % CBA FORECAST: CBA FORECAST: CPI1 UNEMPLOY. RATE (%)
Slide 140: The Australian Economy
The Australian Economy External sector in good shape, but there are risks and support measures Government share of the economy is rising Stimulus has been large and extended Public debt was low going into crisis % FISCAL SUPPORT MEASURES2 GOVERNMENT NET DEBT IN 20193 PUBLIC SPENDING1 20.5 (% of GDP)
Slide 141: Home lending
Home lending COVID-19 impacting demand for housing despite low interest rates A strong recovery saw a pause in lending pre- Dwelling prices started falling in May after Number of auctions collapsed on uncertainty COVID-19 which accelerated during COVID-19 previous strong gains and restrictions HOUSI
Slide 142: Household Spending Intention Series
Household Spending Intention Series Household Spending Intention Series (HSIS) at June 2020 Combines actual CBA transactional data and publically available Google Trends search data. Combined, these two data sets provide unique insights and a new perspective on the Australian economy. Results
Slide 143: Household Spending Intention Series
Household Spending Intention Series Home buying intentions and retail sales CBA HSI: Home Buying1 CBA HSI: Retail Sales1 (annual % change) (annual % change) % % 14 Smoothed HSI 10 HSI 10 Smoothed 0 6 -10 2 -20 -2 -30 -6 Jun 15 Jun 16 Jun 17 Jun 18 Jun 19 Jun 20 Jun 15 Jun 16 Jun 17 Jun 18 Jun 19 Jun
Slide 144: Evolving economic situation in Victoria
Evolving economic situation in Victoria The impact of lockdowns STATE SHARES OF GDP1 % CBA CARD SPEND: STATE SPENDING 2 PAYROLL JOBS BY STATE3 JOBSEEKER2 (%, 2018-19) (annual % change) Index (Index = 100 March 14) % (28 day rolling total, annual % change) 20 WA QLD 100 NSW 10 Vic WA, 14 110 QLD, 19
Slide 145: New Zealand economic indicators (June FY)
New Zealand economic indicators (June FY) GDP % CPI % Unemployment rate % GDP Nominal GDP 1.7 1.8 7.1 6.9 3.4 3.2 2.8 2.5 6.6 6.7 1.4 1.5 1.3 5.0 4.5 4.1 4.1 -3.3-0.4 3.6 3.4 0.9 -0.3 0.4 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 20
Slide 146: New Zealand
New Zealand NZ economy was picking up ahead of COVID-19 Dairy prices edging up after COVID-19 dip NZ’s Terms of Trade expected to hold up Inflation to fall below 1%-3% target Global dairy trade auction results1 Index NZ Terms of Trade2 % NZ CPI inflation3 6,000 (USD/tonne) 6 (f) 1500 Whole Milk Powd
Slide 147: Sources, Glossary & Notes
Sources, Glossary & Notes 147
Slide 148: Sources and Notes
Sources and Notes Core franchise strength Slide 10 1. Net Promoter Score - Mobile App (via mobile app on a mobile phone or tablet): Roy Morgan Research. Australian population 14+ who used the internet banking services of their (self-nominated) main financial institution in the last 4 weeks, rolling
Slide 149: Sources and Notes
Sources and Notes Executing our strategy Slide 16 1. MFI Share measures the proportion of Banking and Finance MFI Customers that nominated each bank as their Main Financial Institution. Main Financial Institution (MFI) definition: In the Roy Morgan Single Source Survey MFI is a customer determined r
Slide 150: Sources and Notes
Sources and Notes Best in digital Slide 43 1. Net Promoter Score (NPS) - Mobile App (via mobile app on a mobile phone or tablet): Roy Morgan Research. Australian population 14+ who used the internet banking services of their (self- nominated) main financial institution in the last 4 weeks, rolling a
Slide 151: Sources and Notes
Sources and Notes Delivering for our stakeholders Slide 53 1. MFI Share measures the proportion of Banking and Finance MFI Customers that nominated each bank as their Main Financial Institution. Main Financial Institution (MFI) definition: In the Roy Morgan Single Source Survey MFI is a customer det
Slide 152: Sources and Notes
Sources and Notes Cash Profit The Profit Announcement discloses the net profit after tax on both a statutory and cash basis. The statutory basis is prepared in accordance with the Corporations Act and the Australian Accounting Standards, which comply with International Financial Reporting Standards
Slide 153: Glossary
Glossary Capital & Other Funding & Risk Risk Weighted Assets or The value of the Group’s On and Off Balance Sheet assets are adjusted by risk Liquidity Coverage Ratio The LCR is the first quantitative liquidity measure that is part of the Basel III RWA weights calculated according to various APRA pr
Slide 154: Thank You Contact us
Thank You Contact us Investor Relations Media Relations Investor Centre Melanie Kirk Danny John For more information Investor Relations Media Relations commbank.com.au/investors 02 9118 7113 02 9118 6919 CBAInvestorRelations@cba.com.au media@cba.com.au
Slide 155: Thank You
Thank You
Commonwealth Bank of Australia — FY2020 Earnings Presentation on 6ix