Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — Debt Investor Presentation (February 2016)
26 slides from Commonwealth Bank Of Australia's debt investor presentation, Feb 16, 2016
Slide 1: CommBank PERLS VIII Capital Notes Investor Presentation
For personal use only CommBank PERLS VIII Capital Notes Investor Presentation 16 February 2016 Investments in PERLS VIII are an investment in CBA and may be affected by the ongoing performance, financial position and solvency of CBA. They are not deposit liabilities or protected 1 accounts of CBA un
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by the Commonwealth Bank of Australia (“CBA”) in relation to the offer of CommBank PERLS VIII Capital Notes (‘PERLS VIII”) (the “Offer”). The Offer will be made in or accompanied by a copy of the Prospectus (“Prospectus”). CBA intends to lodge a replace
Slide 3: Overview
3 For personal use only Overview
Slide 4: Overview
Overview CommBank PERLS ■ PERLS VIII are subordinated, unsecured notes issued by CBA, through its New Zealand branch For personal use only VIII Capital Notes (“PERLS VIII”) Offer size ■ A$1.25 billion, with the ability to raise more or less Use of proceeds ■ The Offer raises Tier 1 Capital to satisf
Slide 5: Capital structure to absorb losses
Capital structure to absorb losses CBA APRA % of earnings able to be For personal use only capital requirements used for discretionary structure at 1 Jan 2016 payments1 Management 100% 1H16 Buffer Cash NPAT Potential loss A$4.8bn absorption 4th (PCR+3.5%) 60% quartiles 3rd (PCR+2.625%) 40% CCB2 Tota
Slide 6: Key Features of CommBank PERLS VIII Capital Notes
For personal use only Key Features of CommBank PERLS VIII Capital Notes 6
Slide 7: Distributions
Distributions Distributions ■ PERLS VIII are scheduled to pay quarterly, floating rate Distributions For personal use only ■ The first Distribution is scheduled to be paid on 15 June 2016 ■ Distributions are expected to be fully franked, but will be increased to compensate Holders to the extent that
Slide 8: Summary of events that may affect PERLS VIII
Summary of events that may affect PERLS VIII PERLS VIII do not have a fixed maturity date but may be Exchanged into Ordinary Shares, Redeemed or Resold. For personal use only The diagram below summarises when these events could occur1. If none of these events occur, PERLS VIII could remain on issue
Slide 9: Early Redemption & Resale
Early Redemption & Resale Early Redemption ■ CBA may Redeem PERLS VIII in the following circumstances (subject to certain conditions including prior written For personal use only Rights for CBA approval by APRA): — on the Call Date (15 October 2021) – all or some PERLS VIII; or — at any time – all o
Slide 10: Mandatory Exchange
Mandatory Exchange Mandatory ■ On the Mandatory Exchange Date (15 October 2023), CBA must Exchange all PERLS VIII (subject to the Maximum For personal use only Exchange Exchange Number and Mandatory Exchange Conditions) for a variable number of Ordinary Shares with the benefit of a 1% discount1 ■ If
Slide 11: Automatic Early Exchange – Non-Viability Trigger Event
Automatic Early Exchange – Non-Viability Trigger Event Non-Viability Trigger ■ A Non-Viability Trigger Event occurs when APRA notifies CBA in writing that it believes: For personal use only Event — Exchange of all or some PERLS VIII (or the taking of an action in relation to other capital instrument
Slide 12: Automatic Early Exchange – Capital Trigger Event
Automatic Early Exchange – Capital Trigger Event Capital Trigger ■ A Capital Trigger Event occurs when: Event For personal use only – CBA determines; or – APRA notifies CBA in writing that it believes that either or both the CBA Level 1 or CBA Level 2 Common Equity Tier 1 Capital Ratio is equal to o
Slide 13: Comparison to other CBA hybrid securities
Comparison to other CBA hybrid securities There are differences between PERLS III and PERLS VIII, and PERLS VIII may not suit your investment objectives, financial situation or particular needs. If you have any questions about the differences between PERLS III and PERLS VIII, you should seek advice
Slide 14: Information about CBA
For personal use only Information about CBA 14
Slide 15: 1H16 Financial Results
1H16 Financial Results Snapshot – 1H16 Results1 For personal use only Financial Operating performance3 Cash NPAT ($m) 4,804 4% Group ($m) 7,146 6% ROE (Cash) 17.2% (140) bpts Retail Banking Services ($m) 3,466 8% Cash EPS ($) 2.84 1% Business and Private Banking ($m) 1,219 5% DPS ($) 1.98 - Institut
Slide 16: Sound credit quality
Sound credit quality For personal use only LIE (Loan Impairment Expense): Basis points calculated as a percentage of average Gross Loans and Acceptances (GLA). FY09 includes Bankwest on a pro-forma basis and is based on impairment expense for the year. Statutory Loan Impairment Commonwealth 16Expens
Slide 17: Strong capital position
Strong capital position bpts CET1 For personal use only 14.3% 122 (28) (38) 131 (77) 10.2% 9.2% 9.1% 8.0% Dec 14 Jun 15 Share Jun 15 Cash Underlying 1 Other 2 Dec 15 APRA Dec 15 APRA APRA Issue Final NPAT Credit RWA APRA Min Int'l 3 Dividend 2016 (Net of DRP) 1 Excludes impact of FX and change in re
Slide 18: Funding and liquidity
Funding and liquidity CBA’s term maturity profile as at For personal use only 31 December 2015 ($bn) 35 $ Billions 30 25 20 15 10 5 0 2016 2017 2018 2019 2020 2021 >2021 FY Long Term Wholesale Debt CoveredBond Covered Bonds CBA’s funding by type as at 31 CBA’s liquid assets as at 31 December 2015 De
Slide 19: Bank Hybrid Securities Basics
For personal use only Bank Hybrid Securities Basics 19
Slide 20: Bank hybrid securities basics
Bank hybrid securities basics An interactive module on bank hybrid securities basics is available to potential investors to help them understand bank For personal use only hybrid securities, their features and risks. It is available from www.commbank.com.au/about- us/shareholders/securities/bank-hyb
Slide 21: Key Dates & Contacts
For personal use only Key Dates & Contacts 21
Slide 22: Key Dates
Key Dates Key dates for the Offer For personal use only Lodgement of Prospectus with ASIC 16 February 2016 Securityholder Offer Record Date 22 February 2016 Bookbuild 23 February 2016 Announcement of Margin 24 February 2016 Opening Date for the Offer 24 February 2016 Closing Date for the Offer 5.00p
Slide 23: Contacts
Contacts Issuer For personal use only Commonwealth Bank of Australia Paolo Tonucci, Group Treasurer Tricia Ho-Hudson, Head of Capital & +61 2 9303 1711 Regulatory Strategy +61 2 9118 1319 Arrangers Commonwealth Bank of Australia Truong Le Sally Choi +61 2 9118 1205 +61 2 9117 1214 Goldman Sachs Aust
Slide 24: Appendix: Key Benefits and Key Risks
Appendix: CommBank PERLS VIII Capital Notes – Key Benefits and Key Risks1 Key Benefits of PERLS VIII For personal use only ■ PERLS VIII are scheduled to pay a floating Distribution Rate ■ PERLS VIII Distributions are scheduled to be paid quarterly in arrears ■ PERLS VIII pay a fixed Margin above the
Slide 25: Appendix: Key Benefits and Key Risks (cont.)
Appendix: CommBank PERLS VIII Capital Notes – Key Benefits and Key Risks1 Key Risks of PERLS VIII (cont.) For personal use only ■ PERLS VIII may not be Exchanged on the scheduled Mandatory Exchange Date and you may continue to hold PERLS VIII indefinitely ■ CBA may redeem PERLS VIII on the Call Date
Slide 26: For personal use only
For personal use only
Commonwealth Bank of Australia — Debt Investor Presentation (February 2016) on 6ix