Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — Investor Presentation (September 2012)
22 slides from Commonwealth Bank Of Australia's investor presentation, Sep 3, 2012
Slide 1: Commonwealth Bank PERLS VI Investor Presentation
For personal use only Commonwealth Bank PERLS VI Investor Presentation 3 September 2012 Investments in PERLS VI 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 accounts of CBA under the Ban
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by the Commonwealth Bank of Australia (“CBA”) in relation to the offer of PERLS VI (the “Offer”). The Offer will be made in or accompanied by a copy of the Prospectus (“Prospectus”). CBA intends to lodge a replacement Prospectus wh
Slide 3: Overview
For personal use only Overview
Slide 4: Overview
Overview For personal use only PERLS VI ♦ Perpetual, exchangeable, resaleable, listed, subordinated1, unsecured notes, issued by CBA Offer size ♦ A$750 million, with the ability to raise more or less Use of proceeds ♦ The Offer raises Tier 1 Capital to satisfy CBA’s regulatory capital requirements a
Slide 5: Key Features of PERLS VI
For personal use only Key Features of PERLS VI
Slide 6: Distributions
Distributions For personal use only Distributions ♦ PERLS VI are scheduled to pay quarterly, floating rate Distributions ♦ Distributions are expected to be fully franked, but will be increased to compensate Holders to the extent that a Distribution is not fully franked Distribution Rate ♦ Distributi
Slide 7: Early Redemption & Early Exchange
Early Redemption & Early Exchange For personal use only Early Redemption ♦ CBA may Redeem PERLS VI in the following circumstances (subject to certain conditions including prior Rights for CBA written approval by APRA): — on the Call Date (15 December 2018); or — at any time for tax or regulatory rea
Slide 8: Mandatory Exchange
Mandatory Exchange For personal use only Mandatory ♦ On the Mandatory Exchange Date (15 December 2020), CBA must Exchange all PERLS VI (subject to the Exchange Maximum Exchange Number and Mandatory Exchange Conditions) for a variable number of Ordinary Shares with the benefit of a 1% discount1 ♦ If
Slide 9: Early Exchange – Capital Trigger Event
Early Exchange – Capital Trigger Event For personal use only Capital Trigger ♦ A Capital Trigger Event occurs when: Event — 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 or less tha
Slide 10: Early Exchange – Non-Viability Trigger Event
Early Exchange – Non-Viability Trigger Event For personal use only Non-Viability ♦ A Non-Viability Trigger Event occurs when APRA notifies CBA in writing that it believes: Trigger Event — Exchange of all or some PERLS VI, or conversion or write down of capital instruments of the CBA Group, is necess
Slide 11: Comparison to other CBA hybrids
Comparison to other CBA hybrids Other securities issued by CBA For personal use only PERLS IV PERLS VI PERLS III PERLS V Issuer CBA CBA Preferred Capital Limited, a CBA subsidiary of CBA Legal form Stapled security Perpetual note Preference share Stapled security Face value A$200 A$100 A$200 A$200 A
Slide 12: Ranking of PERLS VI
Ranking of PERLS VI For personal use only Existing CBA obligations / securities1 Amount as at 30 June 2012 Higher Ranking Secured debt ♦ Covered bonds ♦ A$11.4bn Liabilities preferred ♦ Liabilities in Australia in relation to protected ♦ See deposits below by law accounts ♦ Other liabilities preferr
Slide 13: Information about CBA
For personal use only Information about CBA
Slide 14: FY 2012 Financial Results
FY 2012 Financial Results Snapshot – FY12 Results1 For personal use only Financial Operating performance by division Cash earnings ($m) 7,113 4% Retail Banking Services ($m) 4,795 4% ROE (Cash) 18.6% (90) bpts Business and Private Banking ($m) 1,753 3% Cash EPS ($) 4.49 2% Institutional Banking & Ma
Slide 15: Sound Credit Quality
Sound Credit Quality For personal use only Loan impairment expense to gross loans Consumer arrears Flood /earthquake related overlay 5.0% 30+ Days Review of Bankwest pre acquisition business book 4.0% 85 Personal Loans 3.0% Credit Cards 2.0% Home Loans 1.0% 61 CBA Group1 0.0% 55 Six months annualise
Slide 16: Basel III – New capital policy and position
Basel III – New capital policy and position For personal use only Basel III Int’l harmonised Common Equity Tier 1 ♦ Revised capital policy — Basel III, Rating Agencies, Global Peers 9.8% — Economic capital requirements Target — Stress tested, volatility and Capital +42% (>9%) Conservation Buffer ♦ R
Slide 17: Funding and Liquidity
Funding and Liquidity For personal use only CBA maintains conservative settings in its funding and liquidity metrics to support its high credit ratings and strategic priorities CBA’s term maturity profile as at 30 June 2012 CBA’s funding by type as at 30 June 2012 ($bn) 2% 1%1% 12% Customer Deposits
Slide 18: Key Dates & Contacts
For personal use only Key Dates & Contacts
Slide 19: Key Dates
Key Dates For personal use only Key dates for the Offer Lodgement of Prospectus with ASIC 3 September 2012 Bookbuild 10 September 2012 Announcement of Margin 11 September 2012 Opening Date for the Offer 12 September 2012 Closing Date for the Offer 5.00pm (Sydney time), 5 October 2012 Issue Date 17 O
Slide 20: Contacts
Contacts For personal use only Issuer Commonwealth Bank of Australia Lyn Cobley, Group Treasurer Tricia Ho-Hudson, Head of Capital +61 2 9118 1300 & Regulatory Strategy +61 2 9118 1319 Arrangers Commonwealth Bank of Australia Truong Le Trevor Franz +61 2 9118 1205 +61 2 9118 1211 Morgan Stanley Aust
Slide 21: Appendix PERLS VI – Key Benefits and Key Risks
Appendix PERLS VI – Key Benefits and Key Risks1 Key Benefits of PERLS VI For personal use only ♦ Floating Distribution Rate ♦ Fixed Margin to be determined through the Bookbuild ♦ Distribution paid quarterly in arrears ♦ Distributions are expected to be fully franked ♦ PERLS VI may be sold on ASX ♦
Slide 22: For personal use only
For personal use only
Commonwealth Bank of Australia — Investor Presentation (September 2012) on 6ix