Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — 1H25 Earnings Presentation
128 slides from Commonwealth Bank Of Australia's earnings presentation, Feb 12, 2025
Slide 1: Results Presentation and Investor Discussion Pack
Results Presentation and Investor Discussion Pack For the half year ended 31 December 2024 Commonwealth Bank of Australia
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 this presentation, 12 February 2025. It is information given in summary form and does not purport to be complete. It is intended to be read by a prof
Slide 3: Contents
Contents CEO & CFO presentations 4 Overview & strategy 40 Financial overview 52 Home & consumer lending 71 Business & corporate lending 84 Funding, liquidity & capital 92 Economic overview 111 Sources, glossary & notes 119
Slide 4: Results presentation
Results presentation Matt Comyn, Chief Executive Officer
Slide 5: Supporting our customers and communities
Supporting our customers and communities Delivering better outcomes • Focus on supporting our customers with cost of living pressures • Provided more than 65,000 tailored payment arrangements for customers most in need of support1 Supporting • More than 3 million customers using digital money manage
Slide 6: How we contribute to Australia
How we contribute to Australia Supporting our customers, the community and the economy Customers Our people Suppliers Shareholders Government ~16m 35,000+ 3,700+ 13m+ Contributing as one of Australia’s Australian Australian of which over 2,000 Australians benefitting largest corporate customers1 emp
Slide 7: Some relief for stretched households
Some relief for stretched households Disposable income stabilised – consumption more evenly distributed Disposable income Spending3,4 Saving3,5 Real household disposable income1 Essentials Discretionary Year on year change: Oct – Dec 24 Per capita – indexed to Dec 19 Apr – Jun 24 Age, years 112 3.5%
Slide 8: Income growth, tax cuts and rebates providing support
Income growth, tax cuts and rebates providing support Increase in savings flowing to offsets and deposits Change in amount saved1 Hardship Salary and wage earners, annualised Number of cases (15%) $838 $2,501 $138 $710 $1,663 $1,653 Credit cards & personal loans Home loans Stage 3 2 Other 3 Change i
Slide 9: Building a brighter future for all
Building a brighter future for all Consistent, disciplined execution of our strategy Global best digital Leadership in Australia’s Reimagined products Simpler, better Our strategy experiences and recovery and transition and services foundations technology How we deliver on our Grow the economy Help
Slide 10: Core franchise
Core franchise Building stronger, deeper customer relationships Better understanding of 2 customer needs and risk 2 • Technology leader, history of innovation Stronger customer relationships • Leading decisioning technology 1 and frequency of engagement • Higher quality, lower risk lending • Persona
Slide 11: Customer engagement
Customer engagement Strong Net Promoter Scores1 across key segments Consumer Business2 Institutional3 #1 #1 #2 Peers Peers Peers Dec 22 Dec 24 Dec 22 Dec 24 Dec 22 Dec 24 Consumer mobile app Consumer digital Business digital #1 #1 #1 Peers Peers Peers Dec 22 Dec 24 Dec 22 Dec 24 Dec 22 Dec 24 1. Ref
Slide 12: Engaged customers
Engaged customers Building stronger, deeper customer relationships – strengthening long-term franchise Retail MFI share1 Retail transaction accounts2 Home lending3 Home loans linked Retail to a transaction account #1 vs Dec 23 +4% vs Dec 23 +6% More than 1 in 3 34.6% 11.4 >97% 10.9 552 584 Australia
Slide 13: Performance summary
Performance summary Consistent, disciplined execution • Leading NPS1 in Retail and Business2, achieved record consumer NPS1 for any major bank • NPS1 leadership across consumer mobile app, consumer and business digital Customer • Increased total number of transaction accounts by ~100k in business &
Slide 14: This result
This result1 Customer focus, consistent and disciplined execution MFI share Transaction accounts Deposit funding 6% Statutory NPAT 34.6% Retail MFI2 ~ +460k retail accounts3 26.5% Business MFI2 ~ +100k business accounts 77% Dec 24 Dec 24 vs Dec 23 % of total funding4 2% Cash NPAT CET1 Dividend per s
Slide 15: Financials
Financials1 Cash NPAT up 2% - disciplined approach, underlying margin stable - higher expenses Operating income Operating expenses Pre-provision profit Cash NPAT Disciplined approach to Inflation and Higher operating income Lower loan volume growth with increased investment and growth in operating i
Slide 16: Balance sheet strength maintained
Balance sheet strength maintained Long-term, conservative approach – well placed for a range of scenarios Deposit funding1 Long-term funding Liquid assets Capital % of total funding Weighted average maturity, yrs Average2, $bn CET1 ratio, Level 2 5 77% 5.1yrs $175bn 12.2% 5.4 73% 11.7%4 140 57% 3.5
Slide 17: Credit quality
Credit quality Arrears and TNPE stable – credit quality sound, well provisioned Troublesome & non-performing exposures1 Home loan arrears2 Provisioning4 % of TCE 90+ days, % Total provisions vs Central ECL5 Dec 24 Historic avg3: 0.65% 0.95% 0.66% $6.23bn 0.98% 0.65% 0.61% ~$2.4bn 0.76% $3.87bn Dec 2
Slide 18: Disciplined growth
Disciplined growth Disciplined volume growth across all core business segments RBS BB IB&M ASB Retail MFI share1 Business MFI share1 Deposit funding ratio5 Reputation score8 Dec 24 Net deposit Avg of major Next highest peer Next highest peer funding contribution Dec 24 (spot) +$61bn NZ banks #1 42.2
Slide 19: Business Banking
Business Banking Continued progress in Business Banking CommBank Yello MFI Share2 Business transaction accounts More than 1 in 4 for Business Business MFI share +45% Australian businesses 1.3 #1 #1 m 0.9 Business deposit market share Dec 20 Dec 24 Peers Business deposits4,5 ~1.3m Business transactio
Slide 20: Global best digital experiences
Global best digital experiences Extending our market leading digital ecosystem – deeper, stronger customer relationships CommBank app Net Promoter Score2 CommBank app 8.8 million CommBank Yello Consumer mobile app active customers3 active app users3 #1 8.5 8.8 >12.3 million daily logins to the CommB
Slide 21: Supporting our customers
Supporting our customers Helping our customers to keep safe and secure NameCheck QR Cardless • Invested $450m in 1H25 to protect against fraud, scams, and financial and cyber crime3 • >70% reduction in customer scam losses over two years4 • Joined global first inter-bank real time behavioural intell
Slide 22: Results presentation
Results presentation Alan Docherty, Chief Financial Officer
Slide 23: Results overview
Results overview Supporting our customers, investing in our franchise, delivering for our shareholders Operating context Management response Long-term franchise implications • Some relief for stretched households (↓ tax, rebates) • Support for customers, restructures (↓ hardship) • Focus on customer
Slide 24: Statutory vs cash NPAT
Statutory vs cash NPAT1 Statutory NPAT of $5.1 billion - in line with cash NPAT $m 1H24 2H24 1H25 Statutory NPAT – continuing operations 4,837 4,644 5,142 Non-cash items: - Transaction costs and losses on disposals2 (210) (162) 9 - Hedging and IFRS volatility3 28 (11) 1 Cash NPAT – continuing operat
Slide 25: 1H25 result
1H25 result1 Cash NPAT up 2.3% vs 1H24 1H25 vs 1H25 vs $m 1H25 1H24 2H24 Operating income 14,097 3.3% 4.2% Operating expenses 6,372 6.0% 2.7% Operating performance 7,725 1.1% 5.6% Loan impairment expense 320 (22.9%) (17.3%) Cash NPAT 5,132 2.3% 6.5% 1. Presented on a continuing operations basis. 25
Slide 26: Operating income
Operating income1 Higher net interest income achieved through disciplined franchise growth – underlying margin stable 2H24: +4.2% • Underlying margin2 +2bpts • Lower Treasury and Markets trading income, partly offset by • Lending volume growth2 +4.1% • Volume related growth in banking fees and commi
Slide 27: Disciplined volume growth for sustainable returns
Disciplined volume growth for sustainable returns CBA gained share of NII – targeted, disciplined approach to growth Share of total NII1 Change in home loan market share Home loan funding Four largest banks2 Four largest banks2,3 By channel 2H24 (Sep) Sep 24 vs Mar 24 1H25 Change in share (0.3%) (0.
Slide 28: Group margin
Group margin Underlying margin stable – competition effects offset by hedging activities Minimal impact on earnings Stable underlying margin 6 1 (5) 5 - 1 - 207 208 200 Deposit competition (4) Higher earnings on capital 3 $31bn decrease in Basis risk (1) Replicating portfolio 2 average liquid assets
Slide 29: Operating expenses
Operating expenses1 Inflation and investment in technology & frontline driving cost growth, partly funded by ongoing productivity Cost to income 44.0% 45.2% 2H24: +2.7% Contribution to mvt: +3.8% +3.2% +2.7% (3.7%) +6.0% 191 168 (225) 227 6,372 6,011 • Investment in infrastructure modernisation, AI
Slide 30: Credit risk
Credit risk Low impairment expense - arrears broadly stable, lower corporate TNPE – sound credit quality Loan impairment expense Arrears2 Troublesome & non-performing exposures4 Loan loss rate, bpts1 90+ days Corporate, $bn 1H24 2H24 1H25 Home loans Personal loans Credit cards % of TCE: 0.80% 0.85%
Slide 31: Provisioning
Provisioning1 Strong provision coverage retained – loan loss provisions broadly stable Total credit provisions Provisions and scenarios $bn Dec 24 TP/CRWA: 1.29% 1.66%2 1.62%2 8.14 $6.23bn $6.23bn 6.14 4.80 3.07 3.23 Corporate 3.87 3.07 3.00 Consumer Pre-COVID $bn $bn Jun 19 Jun 24 Dec 24 Central Re
Slide 32: Provisioning through the cycle
Provisioning through the cycle Forward-looking approach – customer, macroeconomic and sectoral considerations Economic cycle • AASB 9 requires a forward-looking approach to loan loss provisioning to dampen pro-cyclical provisioning behaviour through forward-looking adjustments (FLAs) and multiple ec
Slide 33: Funding
Funding Long-term conservative settings maintained Deposit funding1 Funding composition Liquid assets $bn % of total funding Average5, $bn % of total funding WAM2 Liquids as a % of total assets 57% 73% 77% 3.5yrs 5.4yrs 5.1yrs 10% 14% 13% 8% 8% 874 Short-term 24% 15% 175 wholesale3 19% 16% AT1/T24 2
Slide 34: Capital
Capital1 Strong capital position maintained Movements in bpts Level 1 12.1% (37) 12.2% (88) 110 1 12.3% >11% target operating range7 10.25% APRA minimum8 Credit Risk4 (36) Partial sale of VIB5 10 Operational Risk (7) HQLA (ISRR)6 (7) IRRBB 5 Capitalised software (4) Market Risk 1 Other 2 3 Jun 24 2H
Slide 35: Dividends
Dividends Long-term sustainable returns • Interim dividend of $2.25, a 5% increase on 1H24 dividend Sustainable returns Dividend per share (cents) • DRP with no discount and expected to be fully neutralised 250 225 95% 210 215 85% ~75% • Half year payout ratio of ~75% on a normalised basis, 200 73%
Slide 36: Capital management
Capital management Disciplined & balanced approach to optimise growth, reinvestment, shareholder returns & flexibility Capital generation Capital flexibility Reinvested in the Group Distributed to shareholders Retained Franchise growth Franchise investment Dividends Capital return Surplus retained C
Slide 37: Supporting sustainable returns
Supporting sustainable returns Our long-term approach supports strong, sustainable shareholder returns Superior shareholder returns Strong return on equity and Disciplined capital management Delivering superior and generation of organic capital + and continued investment + sustainable shareholder re
Slide 38: Economic outlook
Economic outlook Inflation moderating, Australian economy remains resilient • Economic growth has been below trend - Underlying inflation has taken time to moderate but is returning to the target band - Higher interest rates have weighed on consumer demand and remain restrictive - Immigration is mod
Slide 39: Summary
Summary Delivering for all through customer focus disciplined execution – strengthening long-term franchise Customers Net Promoter Score1 Rank Market share Rank • Supporting and protecting our customers Consumer #1 Household deposits2 #1 Business #1 Home lending3 #1 • Providing strength and stabilit
Slide 40: Overview & strategy
Overview & strategy
Slide 41: Why CBA?
Why CBA? Leading franchise – strong balance sheet settings – supports sustainable shareholder returns Retail MFI share1 Home lending share2 Household deposits share3 Business MFI share1 Next highest peer Deposit funding Business deposits Peers as at September 20244 market share5 44.9% 42.2% 77% 72%
Slide 42: How we contribute to Australia
How we contribute to Australia1 Supporting our customers, the community and the economy Customers & domestic debt investors2 Our people >25% $11.1bn 41% $3.3bn $19.0m Leading retail bank Interest paid to paid in salaries and invested in share of market3 Australian savers superannuation paid to upski
Slide 43: Our strategy
Our strategy Building tomorrow’s bank today for our customers Our purpose Building a brighter future for all Our priorities Leadership in Australia’s Reimagined products Global best digital Simpler, recovery and transition and services experiences and technology better foundations Extend retail and
Slide 44: Reimagining banking
Reimagining banking Franchise strength – supporting our customers across their lifecycle CBA Retail MFI share1 Retail MFI share1 Dec 23 More than Dec 24 1 in 3 Australians 45.1% 44.9% 42.2% #1 34.7% 28.9% 25.8% 35.0% 34.6% 34.2% Peers Dec 24 16.7% 12.8% 11.7% Customer lifecycle Dec 17 Dec 23 Dec 24
Slide 45: Reimagining banking
Reimagining banking Our market leading digital ecosystem - building deeper, stronger customer relationships CommBank app CommBank Yello Travel Booking Car buying Home Hub Australia’s best banking app1 Customer rewards & Search, book & pay via the app Find, finance & manage your car6 Manage each step
Slide 46: Business Banking
Business Banking Continuous innovation - leveraging technology to deliver superior, differentiated experiences CommBank Yello Capital Growth Auto-decisioned Fast online bank Simple annual for Business Account lending guarantees reviews Launched CommBank Yello for Flexibility to manage your Faster lo
Slide 47: Global best digital experiences
Global best digital experiences Building on a history of innovation to reimagine banking 24/7 NetBank Core banking Customer CommBank Market first offerings CommBank app 5.0 Full functionality Real-time banking Engagement Engine app 4.0 First major bank to offer: Making Australia’s best 24-hour onlin
Slide 48: Global best digital experiences
Global best digital experiences Our market leading digital ecosystem - CommBank app 5.0 and CommBank Yello CommBank app Australia’s >12.3 million Simpler, more personalised app experience best banking Daily logins to the app2 CommBank app6 • Personalised, dynamic navigation Bank of the Year • Enhanc
Slide 49: Global best digital experiences
Global best digital experiences Reimagining banking using our world-class data, AI and analytics platform Personalised experiences Making things easier Delivering more personalised customer experiences Making things easier for our people • Customer Engagement Engine (CEE) launched in 2015 • 60+ iden
Slide 50: Home loans – experience
Home loans – experience1 Simple, fast & digital home buying and ownership experience CommBank Simple and seamless application experience ~70% Applications auto Home Hub • Application – simple online application, fast initial approval, incl. first home buyer schemes decisioned same day3 • Pre-populat
Slide 51: Supporting our customers
Supporting our customers Helping our customers today CommBank Safe Benefits finder • Expanded and easier access to hardship support • Proactively identifying and supporting customers sooner • Supporting home loan customers in hardship with tailored solutions • Flexible payment plans, repayment pause
Slide 52: Financial overview
Financial overview
Slide 53: Overview – 1H25 result
Overview – 1H25 result1 Key outcomes summary Financial Balance sheet, capital & funding Statutory NPAT ($m) 5,142 +6.3% Capital – CET12,5 (Int’l) 18.8% (20bpts) Cash NPAT ($m) 5,132 +2.3% Capital – CET12 (APRA) 12.2% (10bpts) ROE (cash) 13.7% (10bpts) Total assets ($bn) +2.6% 1,309 EPS cents (cash)
Slide 54: Overview – 1H25 result
Overview – 1H25 result Key financial outcomes Cash NPAT1 ($m) NIM1 Cost to income1 Cash ROE1 +2% +9bpts +120bpts (10bpts) +7% +8bpts (70bpts) +40bpts 5,132 1.99% 2.00% 2.08% 5,019 4,817 44.0% 45.9% 45.2% 13.8% 13.3% 13.7% 1H24 2H24 1H25 1H24 2H24 1H25 1H24 2H24 1H25 1H24 2H24 1H25 Cash EPS1 (cents)
Slide 55: Cash NPAT by division
Cash NPAT By division1 RBS BB IB&M NZ (NZD)2 vs 1H24 vs 1H24 vs 1H24 vs 1H24 • Income +2% • Income +6% • Income +4% • Income +5% • Expenses +6% • Expenses +8% • Expenses +6% • Expenses +8% • Impairment expense ($135m) • Impairment expense +$10m • Impairment expense +$46m • Impairment expense +$7m +2
Slide 56: Balance sheet
Balance sheet1 Disciplined approach to growth - non-interest bearing deposit balances relatively stable Dec 24 vs Dec 24 vs Group lending $bn Dec 23 Jun 24 Dec 24 Jun 24 Dec 23 Home loans 650.5 664.7 685.3 3.1% 5.4% +5.2% Consumer finance 17.5 16.8 16.9 0.6% (3.5%) +2.9% Business loans2,3 168.7 177.
Slide 57: Volume growth
Volume growth Disciplined approach – focus on generating sustainable returns Home lending1,2 Business lending1,2,3 Household deposits1,4 Business deposits1,5 CBA CBA (excl. IB&M) CBA CBA System CBA (incl. IB&M) System System System (incl. Institutional lending) 11.2% 10.4% 9.3% 8.1% 8.7% 5.7% 6.9% 6
Slide 58: Market share
Market share1 Disciplined approach to growth – strong market share % Dec 23 Jun 24 Dec 24 Home lending2,9 Household deposits3,9 Home loans – RBA2 24.6 24.5 24.6 CBA Peers CBA Peers Break in series 40% Break in series Home loans – APRA 3 25.2 25.2 25.4 40% Break in series from Jun 21 Break in series
Slide 59: Group margin – 12 months
Group margin – 12 months Underlying margin stable – competition effects offset by hedging activities and treasury earnings Minimal impact on earnings Broadly stable underlying margin 2 (1) 7 2 5 (6) - 206 208 199 Treasury earnings $30bn decrease in average liquid assets Deposit competition (5) Basis
Slide 60: Group margin
Group margin Hedge earnings continue to increase due to higher interest rates Replicated portfolio (RP) & equity hedge1 Liquidity & basis risk • In 1H25, RP and equity hedge earnings benefitted from higher rates Liquidity • Earnings outlook continues to improve with higher exit tractor rates • Ever
Slide 61: Deposit switching
Deposit switching Non-interest bearing deposit balances relatively stable Retail deposits1,2 Business deposits1,2,3 $bn 459 $bn 409 430 11% 315 316 316 330 12% 15% 18% NIB 10% 17% 18% 15% 16% 17% 197 Offsets 15% At-call 46% 47% NIB 11% 56% 53% 53% 39% 45% At-call 62% Term deposits 36% 23% 25% 24% 26
Slide 62: Margins by division
Margins by division1 Margins impacted by continuing competitive pressure, deposit mix and funding costs RBS BB IB&M (ex Markets)2 NZ (ASB)3 Lower margins due to increased Lower lending margins reflecting Higher deposit and equity earnings and Higher earnings on equity, Treasury competition and unfav
Slide 63: Other operating income
Other operating income1 Lower trading income and impacts of minority investments, partly offset by volume driven fees Other operating income Trading income 1H25 vs 1H24 • Impacts from minority investments 2,245 2,105 2,163 partly offset by Other2 155 110 • Higher rental income from aircraft lease 81
Slide 64: Sequential half operating income
Sequential half operating income1 Higher net interest income achieved through disciplined franchise growth – underlying margin stable • Underlying margin2 +1bpt • 2 additional days $125m • Markets trading and sales income and • Lending volume growth2 +2.8% • Volume related growth in banking fees and
Slide 65: Sequential half operating expenses
Sequential half operating expenses1 Inflation and increased investment in technology, partly funded by ongoing productivity Cost to income1 45.2% 45.2% Contribution to mvt: +4.4% +1.1% +0.2% (1.5%) +4.2% 67 5 (90) 272 6,372 6,118 • Investment in AI capabilities infrastructure Cumulative cost savings
Slide 66: Cost approach
Cost approach Increased investment spend – primarily on infrastructure refresh Cost reduction Investment spend Cumulative savings1 Examples Increase in infrastructure spend – accelerated technology refresh Capitalised software Capitalised ($bn) software as a % 8% 8% 7% 6% 6% 6% 7% 8% 8% of revenue2:
Slide 67: Investment spend
Investment spend Increased investment in technology to accelerate infrastructure refresh and enhance AI capability Investment spend Additional investment spend focused on: 1. Accelerating the refresh of our technology infrastructure • Faster delivery of change ~$2.2bn • Improved security and resilie
Slide 68: Loan losses
Loan losses Loan impairment expense remains low Loan loss rate1 Loan loss rate by business unit1,2 bpts bpts 9 8 7 13 19 16 Consumer Corporate 7 4 3 1H24 1H25 1H24 2H24 1H25 41 33 25 18 17 76 21 20 19 50 43 16 16 15 15 16 12 9 9 24 23 20 7 9 7 7 13 11 8 10 14 3 3 26 26 16 4 15 16 2 2 17 19 17 18 18
Slide 69: Provisions
Provisions1 Maintained strong provision coverage Provision coverage/CRWA Provisions by stage % Total Credit Credit Stage 2 exposures provision 1.69 exposures provisions by credit grade2 coverage 1.62 $m Jun 24 Dec 24 Jun 24 Dec 24 1.47 $209bn 1.26 Stage 1 941,150 968,239 1,795 1,805 $191bn 9 Weak Co
Slide 70: Financial performance by division
Financial performance1 1H25 financial performance by division RBS BB IB&M ASB (NZD) Cost to income Cost to income Cost to income Cost to income 37.9% 39.5% 31.5% 31.9% 41.0% 41.9% 39.3% 40.7% 1H24 1H25 1H24 1H25 1H24 1H25 1H24 1H25 53% of 39% of 11% of 13% of 6,555 Group 4,527 Group Group Group NPAT
Slide 71: Home & consumer lending
Home & consumer lending
Slide 72: Home loans – overview
Home loans – overview Disciplined strategic and operational execution, targeted growth - focus on sustainable returns Consistent market share performance1 Fundings weighted towards proprietary distribution, with increased investor lending 25% 25% Fundings mix2 Fundings mix2 Fundings mix3 Broker 22%
Slide 73: Home loans – CBA
Home loans – CBA1 A disciplined approach to portfolio quality, growth and sustainable returns Portfolio1 Dec 23 Jun 24 Dec 24 New business1 Dec 23 Jun 24 Dec 24 8 Total balances – spot ($bn) 582 596 616 Total funding ($bn) 67 69 87 Average funding size ($’000)9 453 457 490 Total balances – average (
Slide 74: Home loans – CBA ex BWA
Home loans – CBA ex BWA1 A disciplined approach to portfolio quality, growth and sustainable returns Portfolio1 Dec 23 Jun 24 Dec 24 New business1 Dec 23 Jun 24 Dec 24 7 Total balances – spot ($bn) 491 500 511 Total funding ($bn) 55 55 68 Total balances – average ($bn) 490 494 505 Average funding si
Slide 75: Home loans – serviceability assessment
Home loans – serviceability assessment1 91% of the book originated under tightened standards since FY16 Key serviceability changes by year2 New loan assessment (from FY16)3 • Increased serviceability buffer and buffers on existing debts • Removed Low doc and EQFS products • All income used in applic
Slide 76: Home loans – borrowing capacity
Home loans – borrowing capacity1 Improved borrowing capacity from changes to individual income tax rates and thresholds2 Borrowing capacity3 Application gross income band7 % of applicants with Change in maximum borrowing capacity3 – indexed Dec 16 additional capacity to borrow4 6 months to Dec 24 –
Slide 77: Home loans – resilience
Home loans – resilience1 Higher savings buffers and improved DLVR from higher house prices – arrears stable Average payments in advance2,3 Offset and redraw balances # of payments $bn % customers 82% 79% 80% 81% 148 in advance2 133 134 95 63 35 58 59 30 29 31 Redraw4 46 75 75 85 Offset 49 Dec 19 Dec
Slide 78: Home loans – savings and repayment buffers
Home loans – savings and repayment buffers Higher savings and repayment buffers Repayment buffers Repayment buffers Payments in advance1, % of accounts Payments on time1, % of accounts Residual Dec 23 Structural: e.g. fixed rate loans Jun 24 New accounts: <1 year on book Dec 24 Investment loans: neg
Slide 79: Home loans – portfolio DLVR
Home loans – portfolio DLVR1 Strong portfolio DLVR of 42% – supported by growth in house prices Dynamic LVR bands2 Average dynamic LVR3 Dec 23 Negative equity4 Jun 24 % of total portfolio balances Dec 23 45% Dec 24 Proportion of balances in negative equity • 65% of customers ahead of repayments 70%
Slide 80: Home loans – non-performing loans, losses & insurance
Home loans – non-performing loans, losses & insurance1 Stable non-performing, not well-secured home loans – portfolio losses remain low Australian non-performing home loans2 Australian non-performing, not well-secured home loans2,3 Moderate increase in non-performing home loans driven by 90+ arrears
Slide 81: Home loans – arrears (30+ days)
Home loans – arrears (30+ days) Higher cost of living continuing to impact some borrowers - arrears broadly stable Portfolio Product Repayment and interest type 30+ days Group 30+ days1 Owner occupied 30+ days1 Principal & interest Variable BWA Investment Interest only Portfolio 2.5% ASB Fixed 1.5%
Slide 82: Home loans – arrears (90+ days)
Home loans – arrears (90+ days) Higher cost of living continuing to impact some borrowers - arrears broadly stable Portfolio Product Repayment and interest type 90+ days Group 90+ days1 Owner occupied 90+ days1 Principal & interest Variable BWA Investment Interest only Portfolio ASB Fixed 1.0% CBA 0
Slide 83: Consumer finance – arrears
Consumer finance – arrears1 Arrears favourably impacted by seasonality and changes to income tax rates and thresholds Credit cards Portfolio Group Portfolio Group By year 2020 BWA BWA 2021 Group 30+ days Group 90+ days Group 90+ days ASB ASB 2022 6.0% 2.0% CBA CBA 1.5% 2023 5.0% 2024 1.5% 4.0% 1.0%
Slide 84: Business & corporate lending
Business & corporate lending
Slide 85: Portfolio quality
Portfolio quality1 Lower corporate TNPE – portfolio credit quality remains sound Exposures by industry1 Corporate portfolio quality Total Group TCE by geography AAA A+ BBB+ Investment grade to to to TCE $bn AA- A- BBB- Other Dec 24 Dec 23 Jun 24 Dec 24 Australia 80.6% 81.5% 81.8% Gov. Admin & Defenc
Slide 86: Total committed exposure
Total committed exposure1,2 Close monitoring of key sectors TCE ($bn) 0 TNPE ($bn) TNPE % of TCE Provisions % of TCE Dec 23 Jun 24 Dec 24 Dec 23 Jun 24 Dec 24 Dec 23 Jun 24 Dec 24 Dec 23 Jun 24 Dec 24 Government Administration & Defence 206.9 174.5 175.6 0.0 0.0 0.0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Fin
Slide 87: Commercial Property
Commercial Property Diversified growth, improved trading conditions • Commercial property trading activity has started to increase as institutions and Group exposure Dec 23 offshore buyers have weighed back into property markets. Jun 24 94.0 94.9 98.4 Dec 24 • Increased trading activity over the hal
Slide 88: Agriculture & Forestry
Agriculture & Forestry Moderate growth, well-secured - market conditions sound • Portfolio growth of ~3% in the half, mostly in Livestock Farming, Grain Group exposure Dec 23 Growing and Mixed Farming. Jun 24 Dec 24 33.6 • Weather conditions have been generally favourable, with good subsoil 31.2 32.
Slide 89: Entertainment, Leisure & Tourism
Entertainment, Leisure & Tourism Sector performance remains steady • Portfolio growth of ~10% in the half weighted to Accommodation, with the Group exposure Dec 23 sub-sector increasingly attracting largely offshore institutional capital flows. Jun 24 Dec 24 • LVRs are typically lower than 55%, with
Slide 90: Wholesale & Retail Trade
Wholesale & Retail Trade Strong inventory management essential for Wholesale Trade, Retail Trade outlook remains challenging Wholesale Trade Retail Trade • Portfolio growth of ~12% in the half, focused on higher quality and diversified operators • Portfolio growth of ~3% in the half reflecting cauti
Slide 91: Construction
Construction Sector is improving while challenges remain • Portfolio growth of ~4% in the half focused on established Civil & Group exposure Dec 23 Non-Building Contractors, and smaller trade services which are in high Jun 24 demand. Dec 24 14.2 • Home builders have worked through long-dated, loss-m
Slide 92: Funding, liquidity & capital
Funding, liquidity & capital
Slide 93: Funding overview
Funding overview Long-term conservative funding settings maintained Funding composition Wholesale funding2,3 Funding profile Long-term as % of total wholesale funding $bn % of total funding Issuance Maturity5 74% Short-term 66% 68% 6% 8% 8% wholesale1 24% 17% 14% 15% 66 Long-term 19% 43% wholesale 5
Slide 94: Deposit funding
Deposit funding Highest share of stable customer deposits in Australia – 77% deposit funded Customer deposits vs peers1 Customer deposits by segment4,5 $bn $bn % of total funding 70% 77% 66% 72% 67% 840 852 874 5.5 yr 874 ASB & Other5 95 98 100 11% CAGR 730 IB&M 153 154 149 17% 181 674 613 581 1% 94
Slide 95: Balance sheet composition
Balance sheet composition1 CBA has stable, high quality assets and conservative funding settings Europe US CBA Assets – CBA has a stable, high quality asset profile: • High proportion of well-secured home lending assets Assets Liab + Equity Assets Liab + Equity Assets Liab + Equity 6% 4% 6% • Very l
Slide 96: Wholesale funding
Wholesale funding Wholesale funding diversified across differing products, currencies and tenor Portfolio mix Short-term funding by product4 Dec 24 32% 68% Short-term funding 1 Certificates of deposits 50% Long-term funding 2 Jun 24 34% 66% Term Funding Facility (TFF) Commerical paper Commercial 33%
Slide 97: Funding and liquidity metrics
Funding and liquidity metrics1 Funding and liquidity metrics remain well above regulatory minimums NSFR NSFR (%) NSFR requirements specify banks must maintain a sufficient profile of Dec 24 stable funding to meet their assets and off-balance sheet activities 4.0 0.5 (2.1) (1.3) 0.4 (1.5) 116% 909 11
Slide 98: Capital overview
Capital overview Strong capital position maintained CET1 CET1 Dividend per share (cents) CET1 APRA International +554% Payout Ratio (cash NPAT basis)1 Level 2 Level 1 225 130% 200 210 215 120% Assets 150 175 110% 18.8% +197% 100% 79% 68% 72% 73% 90% 12.2% 67% 62% 80% 12.1% 70% 60% 50% Dec 24 Dec 24
Slide 99: CET1 – International
CET1 – International APRA’s capital framework is more conservative than Basel framework CET1 International adjustments1 Level 2 Definition of Risk weighting equity investments, deferred tax assets, capitalised expenses which are fully deducted from CET1 1.6% capital under APRA rules 18.8% IRRBB 1.5%
Slide 100: Capital – summary
Capital – summary Strong capital position maintained Key capital ratios (%) Dec 23 Jun 24 Dec 24 • Level 2 CET1 capital ratio of 12.2% • 2024 final dividend – DRP neutralised CET1 capital ratio 12.3 12.3 12.2 • Strong organic capital generation Additional Tier 1 capital 2.4 2.0 1.9 CET1 capital rati
Slide 101: RWA drivers
RWA drivers1 Higher RWA driven by Credit RWA volume growth CET1 (Level 2) Total Risk Weighted Assets (RWA) bpts $bn (88) 110 (37) 1 14.7 (0.5) (2.0) 2.6 482 468 8 12.3% 12.2% Market Risk 8 42 Credit Risk2 (36) IRRBB 44 IRRBB 5 48 Op Risk 45 Market Risk 1 Operational Risk (7) Credit Risk 385 370 Jun
Slide 102: Our long-term approach
Our long-term approach Long-term approach to key settings, strengthened over time Long-term approach to key settings Funding Structural hedges Investment Franking Capital management MFI led deposit growth Net interest earnings supported Ongoing investment in Tightly manage share count; + by reinvest
Slide 103: Additional Tier 1 Capital
Additional Tier 1 Capital APRA proposal to phase out AT1 Capital effective 1 Jan 2027 APRA Requirements • APRA discussion paper released 10 Sep 24 with a proposal to increase the effectiveness of the capital framework in stress by removing Additional Tier 1 Capital (AT1) Total Capital Changes • Subs
Slide 104: Total Capital
Total Capital Well placed to meet APRA requirements for loss-absorbing capacity (LAC) • Total capital ratio of 20.7% as at 31 Dec 24, $11.7bn above 1 Jan 26 requirement of 18.25%. • With 6.6% of Tier 2 as at 31 Dec 24, CBA is well positioned to meet the upcoming increases to the LAC requirement. 1 J
Slide 105: Share count
Share count Lower share count supports higher shareholder returns and dividends Number of shares (m)1 Dividend per share ($) CBA Peers CBA Peers Capital raisings for 3,438 3,076 strengthening 2,980 2.25 during GFC 0.64 0.85 1,776 0.58 0.83 1,516 1,673 0.35 0.76 1,506 0.28 1,260 Increase due to acqui
Slide 106: Capital management – share buy-back
Capital management – share buy-back $9.3bn buy-backs completed to date • $300 million of current $1 billion on-market share buy-back CBA capital management activities completed to date FY22 to 1H25 Cost of capital Dividend impact2 • Completion of remaining $700 million on-market share buy-back Inter
Slide 107: Capital – divestments/buy-backs
Capital – divestments/buy-backs Announced divestment program – $9.3bn returned to shareholders to date Divestments CET1 Associated Completed buy-back Bank of Hangzhou (HZB)1 Mid CY25 Commonwealth Private Advice Mid CY25 ~$12bn Vietnam International Commercial Joint 1H25 Stock Bank (VIB)2,3 PT Bank C
Slide 108: CET1 – Level 1
CET1 – Level 1 Strong CET1 Level 1 of 12.1% - well above minimum regulatory requirement CET1 (Level 1)1 bpts RWA of L2 banking subsidiaries 155bpts Higher reserves and retained earnings at L2 (115bpts) Elim. of investments in reg. subsidiaries at L2 (70bpts) Goodwill and intangibles 20bpts L1 vs L2:
Slide 109: Capital – regulatory changes
Capital – regulatory changes A number of regulatory changes in progress Change Implementation Details • Revised APS 330 on public disclosure requirements which aligns with both APRA’s new capital framework and the Basel Committee’s Revision to capital framework APS 330 (1 Jan 2025) internationally a
Slide 110: Regulatory expected loss
Regulatory expected loss1 For non-defaulted exposures, eligible provisions in excess of regulated expected losses added back to Tier 2 Capital Dec 23 Jun 24 Dec 24 $m Defaulted Non-defaulted Defaulted Non-defaulted Defaulted Non-defaulted Regulatory expected loss (EL) 1,506 2,399 1,708 2,515 1,640 2
Slide 111: Economic overview
Economic overview
Slide 112: Key Australian economic indicators (December CY)
Key Australian economic indicators (December CY)1 GDP % Unemployment rate % Headline CPI % Calendar year average Year on year, December quarter December quarter average GDP Nominal GDP 4.0 4.3 4.2 3.9 3.5 7.8 12.7 4.1 4.1 2.1 1.9 2.2 5.6 3.3 2.5 3.8 4.0 4.2 2.4 1.0 2022 2023 2024 2025 2026 2022 2023
Slide 113: The Australian economy
The Australian economy Economic growth below trend but predicted to improve in 2025 as interest rates come down Annual economic growth slowest in 30 years GDP per capita has fallen for seven quarters1 Investment still contributing to growth1 outside the pandemic period1 Quarterly growth in GDP and G
Slide 114: The Australian economy
The Australian economy Consumer spending growth weak in 2024, 2025 estimated be better Real per capita consumption has declined1 Consumers have wound back discretionary spend1 Renters feeling the pain2 Real household consumption (index = 100, Q4 19) Household consumption (annual growth contribution)
Slide 115: The Australian economy
The Australian economy Underlying inflation moving back towards the target, labour market remains solid Headline inflation in target1 Housing inflation moderating2 Falling share of prices rising by more than 3%3 Inflation (annual change) Inflation (annual change) Inflation (annual change) % % % 9 22
Slide 116: The Australian economy
The Australian economy Risks remain Spending has room to lift given income growth1 Population growth slowing, but still high2 Australian dollar has fallen3 CBA card spend and income growth (annual change) Population growth (with CBA forecast) AUD vs USD and trade weighted index (TWI) % % AUD/USD Ind
Slide 117: Housing sector
Housing sector Higher house prices as supply is constrained National home price growth has stalled1 After prices reached fresh record highs1 New lending has been robust2 Dwelling prices (8 capital cities) Dwelling prices (8 capital cities) Housing loan approvals (excluding refinancing) % % Index $bn
Slide 118: Key New Zealand economic indicators (December CY)
Key New Zealand economic indicators (December CY)1 GDP % CPI % Unemployment rate % Calendar year average Year on year, December quarter December quarter average GDP Nominal GDP 5.1 4.9 7.2 4.5 4.0 9.2 3.4 6.9 4.7 2.9 3.1 2.9 3.9 2.2 2.4 2.3 1.8 2.1 0.9 (0.5) 2022 2023 2024 2025 2026 2022 2023 2024 2
Slide 119: Sources, glossary & notes
Sources, glossary & notes
Slide 120: Sources and notes
Sources and notes Slide 5 11. CBA paid 2H24 dividends as at record date to over 825,000 direct shareholders and indirectly to over 13 million Australians through their superannuation as well as returns through shares bought back on-market in 1H25. Slide 9 1. CBA Business lending multiple is based on
Slide 121: Sources and notes
Sources and notes Slide 17 1. Troublesome and non-performing exposures (TNPE). Non-performing exposures are exposures in default as defined in regulatory standard APS220 Credit Risk Management. Corporate troublesome exposures are defined as exposures to corporate customers where profitability is wea
Slide 122: Sources and notes
Sources and notes Slide 20 1. CBA won Canstar's Bank of the Year – Digital Banking award for 2024 (for the 15th year in a row). Awarded June 2024. 2. Refer to glossary at the back of this presentation for further details. 3. The total number of customers that have logged into the CommBank app at lea
Slide 123: Sources and notes
Sources and notes Slide 45 1. Awarded Canstar’s Bank of the Year – Digital Banking award for 2024. 2. The total number of customers that have logged into the CommBank app at least once in the month of December 2024. 3. Launched CommBank Yello for eligible businesses. Initial rollout to 20,000 small
Slide 124: Sources and notes
Sources and notes Slide 57 1. Percentage growth calculations are based on actual numbers on a non-annualised basis. 2. Source: RBA Lending and Credit Aggregates. 3. Business including select financial businesses. CBA excludes Cash Management Pooled Lending Facilities. Historic CBA balances restated
Slide 125: Sources and notes
Sources and notes Slide 93 1. Includes other short-term liabilities. 2. Deposit funding includes central bank and interbank deposits (31 December 2024: $17.7 billion, 30 June 2024 $17.4 billion, 31 December 2023: $15.2 billion and 30 June 2008: $5.4 billion) previously classified as short-term whole
Slide 126: Glossary
Glossary Term Description Term Description Cash Profit The Profit Announcement (PA) discloses the net profit after tax on both a statutory and cash basis. The statutory basis is prepared NPS – RFI Global Atlas Consumer MFI NPS. Based on Australian population aged 14+ years old rating their likelihoo
Slide 127: Our reporting suite
Our reporting suite Committed to transparent reporting Annual Report Climate Report Corporate Governance Profit Announcement Pillar 3 Report Statement Investor Discussion Pack Sustainability Performance Metrics UN PRB, GRI and SASB reporting Modern Slavery and Human Trafficking Statement 127
Slide 128: Contact us
Contact us Investor Relations Media Relations Investor Centre Melanie Kirk Danny John For more information Investor Relations Media Relations commbank.com.au/investors +61 2 9118 7113 +61 2 9595 3219 CBAInvestorRelations@cba.com.au Media@cba.com.au 128
Commonwealth Bank of Australia — 1H25 Earnings Presentation on 6ix