Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — Debt Investor Presentation (August 2012)
75 slides from Commonwealth Bank Of Australia's debt investor presentation, Aug 15, 2012
Slide 1: Debt Investor Update
Debt Investor Update FOR THE FULL YEAR ENDED 30 JUNE 2012 Results Presentation For the half year ended 31 December 2009 10 February Commonwealth Bank of Australia ACN 123 123 124 2010 15 AUGUST 2012 | COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124
Slide 2: Notes: Disclaimer and Cash Profit
Notes Disclaimer The material that follows is a presentation of general background information about the Group’s activities current at the date of the presentation, 15 August 2012. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as ad
Slide 3: Index
Index Overview and Results Capital, Funding and Liquidity Credit Quality Housing Strategy and outlook Economic Indicators Additional Information
Slide 4: CBA overview
CBA overview 9 Largest Australian Bank by market capitalisation Results – 12 months to 30 June 20121 Cash earnings ($m) 7,113 4% 9 AA- / Aa2 / AA- Ratings (S&P, Moodys, Fitch) ROE (Cash) 18.6% (90) bpts 9 Tier 1 Basel II Capital 10.0%; 13.6% UK FSA Cash EPS ($) 4.49 2% DPS ($) 3.34 4% 9 Total Assets
Slide 5: Cash NPAT drivers
Cash NPAT drivers Full Year 2012 Expenses Ç2% Lending assets Ç15% Positive “jaws” C:I ratio È to 38.1% LIE È53% Expenses Ç1% Margin È4bpts CVA movement ($215m) NII mix +3% Business banking FUA net flows Ç$4bn Expenses È2% revenue1 Ç5% Insurance Income Ç11% LIE È$48m Expenses Ç1% Funds Mgmt Income È4
Slide 6: Group NIM - 12 months
Group NIM - 12 months 1 Group NIM 12 month movement1 Group NIM – 6 months bpts (11) bpts 11 (4) 217 (7) (5) 2 212 206 206 212 209 FY11 Assets & Deposit Wholesale Increased Other2 FY12 Dec 10 Jun 11 Dec 11 Jun 12 Mix funding Funding Liquid Assets 1 Comparative NIM information has been restated for th
Slide 7: Increase in retail funding costs since Jun 2007
Increase in retail funding costs since Jun 2007 Basis Risk 37% x 1.65% Wholesale Funding 1 63% x 1.86% Deposit Funding Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 From Jun 2007 until … Jun 11 Dec 11 Jun 12 Increase in Wholesale Funding2 1.30% 1.75% 1.65% Increase in
Slide 8: Continued cost discipline
Continued cost discipline $m (0.2%) $m Total Operating 4,602 4,594 Expenses 4,483 4,408 +3% 1H11 2H11 1H12 2H12 +6% (3%) +6% +3% Includes one-off Includes transition to compliance costs, new CBD office marketing campaigns premises in Sydney and Perth and higher credit card 9,196 8,891 rewards expens
Slide 9: Sound credit quality
Sound credit quality Loan impairment expense to gross loans PD ratings migration 2 11 CBA Group1 Six months annualised 6 85 Exposures ($bn) (basis points) 1 4 9 Total Upgrades 61 14 Downgrades - excluding defaults Total Defaults 55 19 Net Jun 09 Jun 10 Jun 11 Jun 12 Dec 09 Dec 10 Dec 11 40 32 28 Tro
Slide 10: Provisioning
Provisioning Individual provisions Collective provisions $m $m Jun 12 Overlay vs Dec 11 movement $m 3,043 2,984 Economic 2,837 overlay - unchanged Overlay 1,049 970 Amortisation of 2,125 847 BWA fair value (22) 2,097 2,008 provision Runoff of higher 528 473 risk Bankwest (56) 979 999 Bankwest 598 Lo
Slide 11: Provisioning
Provisioning Collective provisions to credit RWA Individual provisions to impaired assets Collective provisions Collective provisions to CRWA to CRWA (ex Residential Mortgages CRWA) 1.62% 44.6% 1.57% 1 1.45% 37.8% 1.36% 32.1% 1.22% 1.20% 26.8% 1.09% 1.02% Peer 3 CBA Peer 1 Peer 2 CBA Peer 3 Peer 1 P
Slide 12: Index
Index Overview and Results Capital, Funding and Liquidity Credit Quality Housing Strategy and outlook Economic Indicators Additional Information
Slide 13: Funding – sources and uses
Funding – sources and uses Funding $bn Jun 11 Jun 12 Transactions 79 83 $bn Source of funds Use of funds 4 (16) 29 Savings 82 89 62% Investments 176 197 Deposit (26) Funded Other 12 10 30 Total Customer 349 379 (25) Wholesale Funding 220 232 Total Funding 569 611 4 Equity 37 42 6 (6) Total Funded 60
Slide 14: Funding - deposits
Funding - deposits Deposit % of total funding Major bank deposit rates 62% 61% 58% 56% Jun 09 Jun 10 Jun 11 Jun 12 Australian deposits (excl CDs) $bn 327 282 229 167 193 157 149 111 160 125 80 82 CBA Peer 3 Peer 2 Peer 1 Household Deposits Other Deposits Source : APRA 14
Slide 15: Funding - issuance
Funding - issuance Term issuance Total Debt Issues outstanding (>12mths)1 $bn FY10 Six-Monthly $bn 94 $54bn 91 81 31% 77 21% FY12 23% $29bn 59 35% 12% 13% FY11 17% 51 10% $23bn 33% 12% 12% 31% 45% 39% 13% 30% 52% 37% 34% 23% 21% 28% 19% 19% Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 2007 2008 2009 20
Slide 16: Funding - portfolio
Funding - portfolio Wholesale funding by product 62% Deposit funded 4% 5% Structured MTN 9% 2%1%1% Customer Deposits Vanilla MTN 12% 4% Commercial Paper ST Wholesale Funding 5% Debt Capital 4% LT Wholesale Funding maturing < 12 months CDs 4% 36% 62% LT Wholesale Funding maturing >= 12 months Securit
Slide 17: Funding – Covered Bonds
Funding – Covered Bonds Banking Amendment (Covered Bonds) Issuer Commonwealth Bank of Australia Bill passed October 2011 Covered Bond Perpetual Corporate Trust Limited in its capacity as Legislative limit of 8% of a bank’s Guarantor Trustee of the CBA Covered Bonds Trust assets in Australia pled
Slide 18: Encumbrance
Encumbrance 100% Short Term secured Long Term secured 80% Short Term unsecured Long Term unsecured Subordinated 60% Deposits Core Tier 1 67.0% 40% 58.4% 59.4% 53.7% 51.7% 49.2% 51.1% 44.2% 51.5% 44.7% 41.8% 41.2% 39.8% 35.4% 20% 0% Source: Morgan Stanley / CBA 18
Slide 19: Liquidity and APS 210
Liquidity and Australian Prudential Standard (APS) 210 Liquidity1 Current APS 210 based on 5 day stress scenario $bn 135 APRA released draft APS 210 for Basel III based on 30 day stress scenario 101 58 RBA Committed Liquidity Facility (CLF) addresses 86 lack of Level 1 & 2 liquid assets 40 1
Slide 20: Superannuation
Superannuation ♦ 1992 establishment of Compulsory Superannuation (“Super”) - originally 3% of salary, gradually increased to current 9% with plan to increase to 12% ♦ Australian Superannuation assets = $1.4tr (world’s 4th largest asset pool) ≈ 100% of GDP ♦ Defined contribution scheme with large coh
Slide 21: Strong capital position
Strong capital position Basel II (APRA) Tier 1 Capital 10.0% Tier 1 capital movement Basel II (APRA) Common Equity 7.8% CET 1 Tier 1 13.6% 0.3% 11.1% Basel II (UK FSA) Tier 1 Capital equivalent 9.9% (0.2%) 10.0% of 13.6% 7.8% 7.7% Expected 0.30% uplift in FY13 from Bankwest Advanced Accredit
Slide 22: Common Equity Tier 1 – Basel III
Common Equity Tier 1 (“CET1”) – Basel III 10% 9.6% 9.8% Board minimum (> 9%) 8.7% 9% January 2013 8% 7.7% 7.4% Min incl. Capital 6.9% 7.5% 7% 7.3% Conservation Buffer (7%) 6% 6.6% January 2016 5% 5.6% Min (4.5%) 5.0% January 2013 4% 4.5% 3% 2% 1% 0% 1 Jun 07 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 BIII C
Slide 23: Peer Basel III Common Equity Tier 1
Peer Basel III Common Equity Tier 1 11.0 10.6 10.3 10.3 9.8 9.8 9.4 9.4 9.3 9.3 9.3 9.0 8.9 8.8 Peer bank average CE ratio 8.5 8.3 8.2 8.1 8.0 (ex. Australian banks): 8.4% 7.9 7.9 7.8 7.8 7.7 7.6 7.5 7.4 7.0 6.9 6.3 2 2 1 2 1 1 1 1 1 Stan Ch CBA NAB UBS RBS ANZ Nordea SocGen JP Morgan Citi Westpac T
Slide 24: Index
Index Overview and Results Capital, Funding and Liquidity Credit Quality Housing Strategy and outlook Economic Indicators Additional Information
Slide 25: Regulatory exposure mix
Regulatory exposure mix Regulatory Credit Exposure Mix1 CBA Peer 1 Peer 2 Peer 3 Residential Mortgages 55% 41% 40% 57% Corporate, SME & Spec Lending 28% 34% 39% 31% Bank 7% 7% 12% 3% Sovereign 6% 9% 6% 5% Qualifying Revolving 3% 4% 2% 3% Other Retail 1% 5% 1% 1% Total Advanced2 100% 100% 100% 100% 1
Slide 26: Sector exposure by Industry
Sector exposure by Industry 1 Dec 11 Dec 11 Jun 12 Jun 12 Consumer 52.7% 52.8% Agriculture 2.1% 2.1% Mining 1.0% 1.0% Manufacturing 2.0% 2.1% Energy 1.0% 1.1% Construction 1.0% 0.9% Retail & Wholesale 2.6% 2.4% Transport 1.5% 1.5% Banks 10.9% 11.1% Finance – other 3.7% 3.5% Business Services 0.9% 1.
Slide 27: Commercial exposures
Commercial exposures Commercial exposures by sector1 Top 20 Commercial Exposures2 ($m) BBB+ AAA A+ to $bn to Other Jun 12 A- to AA- A- BBB- A 41.5 38.6 6.3 0.4 86.8 A+ Banks BBB Finance Other 9.7 10.0 3.0 4.7 27.4 A BBB+ Property 0.1 6.1 10.6 33.9 50.7 A- A- Sovereign 56.8 1.3 0.5 0.2 58.8 AA+ A- Ma
Slide 28: Commercial property market
Commercial property market CBD office supply pipeline1 CBD vacancy rates Peak Current Previous 40% % of Total Stock 2nd Half 1st Half Market 1990s FY12 FY12 35% Sydney 22.4% 8.6% 8.5% 30% Perth 31.8% 2.9% 2.5% Melbourne 25.8% 7.4% 5.8% 25% Brisbane 14.3% 8.8% 6.3% 20% Adelaide 19.8% 7.7% 7.6% 15% So
Slide 29: Unsecured consumer arrears
Unsecured consumer arrears Credit cards – Retail Bank Credit cards - Group 4.0% 2.0% 30+ Days 90+ Days 3.6% 3.2% 1.0% 2.8% 2.4% 2.0% 0.0% Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 07/08 08/09 09/10 10/11 11/12 Bankwest CBA ASB Personal loans
Slide 30: Home loan arrears
Home loan arrears Home loans - Group Home loans by state 90+ Days 90+ Days 2.0% 1.0% 1.5% 1.0% 0.5% 0.0% Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 0.0% Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Bankwest CBA ASB NSW/A CT SA/NT QLD VIC/TAS WA National First Home Buyers –Retail bank Home
Slide 31: Home loan portfolio profile
Home loan portfolio profile Portfolio Jun 12 Quality Jun 12 Total Balances - Spot ($bn) 1 351 Total Balances – Avg YTD ($bn) 1 343 Total Accounts (m) 1.4 Actual Losses YTD ($m) 1,3 107 Fundings ($bn) 2 54 Loss Rate (%)1,2 0.03 Variable Rate (%) 87 LVR – Portfolio Avg (%) 4 44 Owner-Occupied (%) 58 C
Slide 32: RBS home lending growth profile
RBS home lending growth profile RBS home loan balance growth External refinancing $bn 5% % of Total Balances 29 (67) 54 (7) 261 270 Jun 11 New Redraw & Repayments / External Jun 12 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun fundings interest Other refinance FY 2007 FY 2008 FY 2009 Excludes Bank
Slide 33: Retail Bank home loans – by vintage
Retail Bank home loans – by vintage Home Loan Dynamic LVR1 Profile 30+ Days Home Loan Arrears Rates by Vintage 80% 70% 4.0% FY09 60% 3.5% FY08 Proportion of Total Portfolio 3.0% 50% 30+ Arrears Rate FY07 2.5% 40% 2.0% FY06 30% FY10 1.5% 20% 1.0% 10% FY11 0.5% 0% FY12 0.0% 0-60% 61-75% 76-80% 81-90%
Slide 34: Retail Bank home loans – enhanced stress test
Retail Bank home loans – enhanced stress test Observations Key assumptions Potential losses of $1.7bn for the Year 1 Year 2 Year 3 Unemployment 7.0% 10.5% 11.5% uninsured portfolio only over 3 years. Hours under-employed * 11.4% 15.8% 18.4% Cumulative House Prices -15% -32% -32% Cash Rate 3.00% 1.
Slide 35: Home loan losses
Home loan losses Losses to average gross loans 2.5% 2.0% Historical home loan losses have been low Strong portfolio credit quality a key driver of low 1.5% loss rates Mortgage losses in FY12 for the Group were $107m on a mortgage portfolio of $343bn average 1.0% (0.03%) 0.5% 0.0% 1983 1984 198
Slide 36: Index
Index Overview and Results Capital, Funding and Liquidity Credit Quality Housing Strategy and outlook Economic Indicators Additional Information
Slide 37: Outlook
Outlook Operating environment – Australian economic fundamentals remain strong – Continued global volatility – Low credit growth – Deposit cost pressures – Evolution to new regulatory regimes Our approach – Scenario based with conservative settings – Long term focus without compromising momentum
Slide 38: Our strategy
Our strategy Capabilities Customer focus People Technology Strength Productivity Capability- led More customer needs identified and met in core growth opportunities retail/business franchise “One CommBank” Growth Continued growth in business and institutional banking Disciplined growth outside Austr
Slide 39: People
People Retail customer satisfaction1 Business customer satisfaction2 7.4 80.0% 7.3 Average rating 75.0% 7.2 7.1 70.0% 7.0 6.9 65.0% CBA CBA Peer average 6.8 Peer average 60.0% 6.7 Jan 06 Jun 09 Jun 12 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 MFI customer numbers3 People Engagement4 June 2012
Slide 40: Technology
Technology Core Banking Leveraging real time Deposits completed Lending well advanced 12 million+ customers migrated Real-time banking 24/7 Focus on benefits realisation Product innovation Driving efficiency Process elimination Straight-through processing Immediate problem resolution
Slide 41: Strength
Strength Deposit funding Wholesale funding tenor (years)1 % of Total Funding New issuance Portfolio 5.2 62% 3.9 4.0 61% 3.6 3.6 3.7 58% Jun 10 Jun 11 Jun 12 Jun 11 Dec 11 Jun 12 Total provisions2 to credit RWA Liquidity and capital Total provisions Total provisions to CRWA Liquids ($bn) Tier 1 Capit
Slide 42: Productivity
Productivity Total operating expenses Investment spend $m 3% $m 3% 9,196 8,891 1,286 8,601 (0.2%) 1,179 1,036 FY10 FY11 FY12 4,602 4,594 639 4,483 638 $m 4,408 2nd half 562 4,333 4,268 647 1st half 474 541 1H10 2H10 1H11 2H11 1H12 2H12 FY10 FY11 FY12 42
Slide 43: CBA in Asia
CBA in Asia Country Representation as at June 2012 China Bank of Hangzhou (20%) – 117 branches Qilu Bank (20%) – 84 branches County Banking (84%) – 5 Banks in Henan Province Beijing Beijing Representative Office Jinan BoCommLife JV (37.5%) – Henan Province Tokyo operating in 3 provinces Shanghai Sha
Slide 44: Index
Index Overview and Results Capital, Funding and Liquidity Credit Quality Housing Strategy and outlook Economic Indicators Additional Information
Slide 45: Economic summary
Economic summary As at June 2008 2009 2010 2011 2012 2013 (f) Credit Growth % – Total 11.8 3.3 3.1 2.8 4.4 5-7 Credit Growth % – Housing 9.6 6.6 8.0 6.0 5.1 5-7 Credit Growth % – Business 16.9 0.9 -3.9 -2.2 4.4 5½-7½ Credit Growth % – Other Personal 3.4 -7.0 3.0 1.0 -1.5 4-6 GDP % 3.8 1.4 2.3 1.9 3.
Slide 46: Strong economic fundamentals in Australia
Strong economic fundamentals in Australia GDP growth Stronger labour market % Unemployment 110 12 108 106 Australia 10 US 104 8 Euro Zone NZ UK 102 US 100 6 Australia 98 UK Europe 4 96 Japan 94 Japan 2 92 90 0 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Jan-05 Jan-07 Jan-09 Jan-11 Australian economic perfo
Slide 47: Australia’s economic mix
Australia’s economic mix Industry share of output Employment Export composition Export destination 47
Slide 48: China influences
China influences CHINA GDP GROWTH CHINA & EXPORTS % China – GDP growth (annual % change) % Australia GDP growth correlations (% of a% of exports country's that remain exports in China that remain in China) 15 15 90 % Source: HKMA 13 13 GDP Growth (%YoY) 5-Year Average Outcome 60 11 11 9 9 30 7 7 Fiv
Slide 49: China and the policy response
China and the policy response CHINA: GDP && policy Growth POLICY Construction CHINA: & policy CONSTRUCTION & POLICY SteelSTEEL CHINA: & policy & POLICY %pa (annual % change) %pts %pa (change) %pts %pa (change) %pts 6.0 -3.5 40 -3.5 60 -3.5 Ch in reserves Crude steel GDP requirement ratio production
Slide 50: Australia - policy and financial system
Australia - policy and financial system Monetary policy response OFFICIAL INTEREST RATES Fiscal policy GENERAL GOVERNMENT NET DEBT % % % (% of GDP) % 100 General Govt Net Debt 100 Official Interest Rates 8 8 Advanced G-20 75 75 6 6 UK Australia Canada 50 50 Emerging G-20 4 4 25 25 NZ Australia US 2
Slide 51: The consumer
The consumer Job prospects are a key concern Consumers are spending But balance sheet repair is a priority GREATEST FEAR CONSUMER SPENDING SAVING RATIO % % % % (% of respondents) (annual % change) 30 30 % 20 20 10 % 10 Losing Unable to pay Total job mortgage/rent household Inability to provide spend
Slide 52: Labour market
Labour market The labour market is holding up Some indicators suggest stronger jobs growth LABOUR MARKET TAXES & JOBS % '000 % % 6.0 90 5 16 Unemployment rate (lhs) 5.5 60 3 8 5.0 30 4.5 0 1 0 Employment Gross PAYG 4.0 growth -30 revenue (3mnth average, rhs) (smoothed %pa) (rhs) Employment (lhs) 3.5
Slide 53: Business and capex
Business and capex Support economic growth Structural change in the economy Capex & project status Value of advanced1 projects (in 2011-12 dollars) CAPEX & PROJECT STATUS % of Index 24 GDP 400 300 A$bn Under consideration* 250 (adv 2-years, rhs) 20 300 200 Business 150 16 capex 200 (lhs) 100 12 100
Slide 54: Advanced minerals and energy projects
Advanced minerals and energy projects Source : Australian Bureau of Resources and Energy Economics, April 2012 54
Slide 55: Credit
Credit Modest credit growth set to continue Economic growth prospects are CREDIT & SPENDING % (annual % change) % reasonably favourable 30 30 CBA But downside risks persist (f) Credit Household and business confidence 20 20 remains subdued Global uncertainty and fear driving 10 10 financial
Slide 56: Housing market - summary
Housing market - summary An orderly adjustment has occurred in the Australian housing market post-GFC This adjustment is characterised by slower credit growth, increased savings and lower servicing ratios Australian house prices have undergone a modest correction as part of the adjustment process De
Slide 57: House price growth
House price growth House price MEDIAN growth ($’000s) HOUSE PRICES $'000 $'000 (Stratified median) House prices have 700 700 moderated from recent Sydney peaks houses 600 600 Perth Prices down between 5-10% houses over the last 12 months 500 500 Nominal price falls are 400 400 typically modest
Slide 58: An orderly adjustment in the Australian housing market
An orderly adjustment has occurred in the Australian housing market, as households repair their balance sheets Housing credit growth Savings rate Debt servicing ratio % RBA Credit Aggregates Household Savings Ratio Debt Servicing Ratio (annual % change) (% of household disposable income) (Interest p
Slide 59: Supply and demand
Supply and demand Population growth Housing demand & supply Projected population change ‘000 2009-2050 200 POPULATION DRIVERS Demand '000 190 60% 450 180 170 40% 40% 160 30% Net 300 migration 150 20% 140 Supply 150 (rolling 4-qtr sum) 130 Natural 120 increase 0 110 1990/91 1995/96 2000/01 2005/06 20
Slide 60: Vacancy rates, rents, affordability and sentiment support house prices
Low vacancy rates, growth in rents, affordability trends and positive sentiment are all supportive of house prices Housing indicators Affordability & prices % % 60 Rents 9 Housing (%pa, rhs) 50 sentiment 8 (lhs) 40 7 30 6 20 5 10 4 0 3 -10 2 -20 Vacancy 1 rate* (rhs) -30 0 Sep-00 Sep-03 Sep-06 Sep-0
Slide 61: Australian house prices are influenced by a high urbanisation rate
Australian house prices are influenced by a high urbanisation rate Urban population Density & house prices Dwelling prices URBAN POPULATION Ratio to Household Income (% in two largest cities) 6 New Zealand Australia Capital 5 France cities Belgium Canada 4 Spain Netherlands 3 Italy Australia-wide Po
Slide 62: House price to income ratios in line with global norms
House price to income ratios in Australia is in line with global norms Dwelling price to income ratios 62
Slide 63: Comparing the Australian mortgage product
Comparing the Australian mortgage product CBA / Aust US Australian mortgage product Principal and interest amortising 25/30 Unemployment ~5% ~8% year loan Variable interest rate set at bank’s discretion No-Recourse Lending No Yes Limited pre-payment penalty Full recourse to borrower Variable
Slide 64: Index
Index Overview and Results Capital, Funding and Liquidity Credit Quality Housing Strategy and outlook Economic Indicators Additional Information
Slide 65: Market shares
Market shares Jun 12 Dec 11 Jun 11 CBA BWA Combined CBA + BWA CBA + BWA Home loans 21.7% 4.0% 25.7% 25.9% 25.8% Credit cards1 20.8% 2.7% 23.4% 23.7% 23.0% Personal lending 13.8% 1.0% 14.8% 14.6% 14.8% Household deposits 26.0% 2.9% 28.9% 29.4% 30.0% Retail deposits 22.5% 3.5% 26.0% 26.4% 26.9% Busine
Slide 66: Retail Banking Services
Retail Banking Services Cash earnings FY12 vs $m FY11 $m Balances Ç3%; Lower Home Loans 2,892 - margins reflecting higher funding costs 3 47 (54) (65) 193 (32) 2,934 Consumer Strong volume growth 2,854 (12) 15% 11% driven by new products - 2% 12% 1,896 3% Finance and campaigns - 11% Balances Ç
Slide 67: Business & Private Bank
Business & Private Bank FY12 vs Key segments $m Cash earnings FY11 Lending balances Corporate Financial Ç10% and higher $m 1,086 10% demand for risk Services 34 (46) management products. 58 (9) Higher demand for risk 1,067 Regional & management products 1,030 (13%) 489 9% and prudent lending 1%
Slide 68: Institutional Bank & Markets
Institutional Bank & Markets Cash earnings FY12 $m vs $m FY11 113 (215) Strong balance 29 1,060 Institutional 171 1,973 6% growth and higher 1,004 Banking leasing income 6% (9%) (19) (23) Challenging market (Lge) (4%) 3% (53%) Markets 373 (39%) conditions and unfavourable CVA* Total Banking 2,34
Slide 69: Wealth Management
Wealth Management Cash earnings FY12 $m vs FY11 $m Lower FUM (È2% to 642 (13) CFSGAM (2%) $146bn) due to decline (36) 743 in global equity 8 1 (89) markets (2%) 16 569 (5%) 1% - 40 Challenging market 26% conditions, ASX 200 CFS 653 (5%) 7% (18%) È11% & changing investor preferences Strong insu
Slide 70: New Zealand
New Zealand Cash earnings NZ FY12 vs $m FY11 NZ$m Benefit from fixed rate loan repricing ASB 1,596 4% Shift to higher margin variable loans 17 (1) (13) 25 (24) 68 (22) Favourable claims 4% 638 7% 1% (35%) 13% experience 588 Lge Sovereign 274 7% Inforce premium growth driven by 4% strong new
Slide 71: Bankwest
Bankwest Cash earnings $m 48 (28) FY12 $m vs FY11 524 Above system home loan volume Banking 14% 1,664 1% growth offset by run Income 17 off of higher risk business loans 24 (44%) Lower personnel (2%) costs Expenses (852) (2%) 463 Lower discretionary spend 1% Improved credit Impairment (61) (
Slide 72: Global comparison
Global comparison Australia Japan Canada Scandi UK US AAA AAA AAA AAA AA+ Sovereign rating AA- Negative Stable Stable Stable Stable Negative S&P BICRA1 2 2 1 2 3 3 Industry risk / Economic risk 2/2 3/2 1/2 3/2 3/4 4/3 Norway $483bn GDP2 $1.48tr $4.45tr $1.7tr $2.4tr $15tr Sweden $538bn Norway 3% Une
Slide 73: CBA – valuation considerations
CBA – valuation considerations Market leading franchise World leading technology Execution of strategy over last 5 years has established consistent premium on P/NTA Strong funding metrics amongst peers highest share of Australian household deposits longest duration of term wholesale port
Slide 74: How to find us
How to find us 24 Hour Global Contact Numbers… Sydney Direct Line Mobile Number Email Simon Maidment +61 2 9118 1339 +61 412 227 188 simon.maidment@cba.com.au Richard Nelson – Debt IR +61 2 9118 1343 +61 422 165 939 richard.nelson@cba.com.au Patrick Bryant +61 2 9118 1345 +61 424 754 934 patrick.bry
Slide 75: Debt Investor Update
Debt Investor Update For the Full Year ended 30 June 2012
Commonwealth Bank of Australia — Debt Investor Presentation (August 2012) on 6ix