Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — Investor Day (October 2004)
19 slides from Commonwealth Bank Of Australia's investor day presentation, Oct 19, 2004
Slide 1: Investor Half Day
Investor Half Day Net Interest Margin (NIM) Sustainability of Dividend Marten Touw Group Treasurer 19 October 2004 Which Bank ConmonwealthBank
Slide 2: Disclaimer
Disclaimer The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation, 19 October 2004. It is information given in summary form and does not purport to be complete. It is not financial product advice and is not in
Slide 3: Net Interest Margin
Net Interest Margin an do Which Bank ConmonwealthBak < 4
Slide 4: Half on Half Group NIM
Half on Half Group NIM Deposit Prices Asset Prices The Yield Curve Capital Transactions Lending Mix Wholesale Funding Non Lend IEA’s Dec-03 Other Deposit Prices Asset Prices The Yield Curve Capital Transactions Lending Mix Wholesale Funding Non Lend IEA's Jun-03 Other Deposit Prices Asset Prices The
Slide 5: NIM Drivers
NIM Drivers Non Lending Interest Earning Assets Wholesale Funding Lending Mix «. Capital Transactions hybrid issuance share issuance share buyback The Yield Curve cash: bills change in replicating effect Asset Prices housing personal business Deposit Prices at call deposits term deposits ee Which Ba
Slide 6: Non Lending Interest Earning Assets
Non Lending Interest Earning Assets ion L g Interest Earning Assets - Group _ ash & Liguid Assets ee ‘eceivabies from Other Financial Institutions ther Interest Earning Assets, lon Lending IEA‘s Treasury Liquidity Holdings _
Slide 7: Wholesale Funding
Wholesale Funding Half Year Ending Group Funding Jun-03 Dec-03 Jun-04 Long Term 32.4 34.6 35.9 Short Term 42.5 43.7 $7.1 Total Whoiesale 74.8 78.4 93.0 Total Retail 132.6 139.0 145.0 Total Funding 207.4 2174 238.0 Growth Long Term 1.8 2.3 13 Short Term -0.9 1.3 13.4 Total Wholesale 09 3.5 14.7 Total
Slide 8: Lending Mix
Lending Mix Interest Earning Lending Balances - Group Housing Other Personal Business / Other Totat Growth Housing Other Personal Business / Other Total % Share of Total Group Loans Housing Other Personal Business / Other Impact on Group NIM Figures may not add due to rounding Half Year Ending Jun-0
Slide 9: Capital Transactions
Capital Transactions Half Year Ending Impact From Capital Transactions Jun-03 Dec-03 Jun-04 Average Balance Preference Shares 07 0.7 07 Average Balance Other Equity Instruments 0.0 0.7 1.6 Issue $467m in Share Purchase Plan on 25/06/04 0.0 0.0 0.0 Sub-Total 07 14 2.3 Dividend Payment of $832m on 8/1
Slide 10: The Yield Curve
The Yield Curve Yield Curve NIE Impact Change in Basis Risk (Cash v 90 Day Bills) Reduced Replicating Portfolio Benefit (not due to Cash rate change} Subtotal Average 90 Day BBR Average Cash Rate Difference Impact on Group NIM Figures may not add due to rounding Half Year Ending Jun-03 Dec-03 Jun-04
Slide 11: Asset Prices
Asset Prices Half Year Ending Interest Earning Lending Balances - Group Jun-03 Dec-03 Jun-04 Housing 96.7 106.3 116.2 Other Personal 12.4 12.5 13.0 Business / Other 48.7 50.2 54.1 Total IEA Lending Assets 157.7 169.0 183.3 Change in Margin on Lending Products (CBA Bank Domestic) Home Loan Margin 0.0
Slide 12: Deposit Prices
Deposit Prices Half Year Ending Jun-03 Dec-03 Jun-04 Interest Bearing Deposits - Group Time Deposits 59.2 66.9 79.4 Savings Deposits 35.4 34.7 33.7 Other Demand Deposits 38.6 41.9 43.0 Sub-Total 133.2 143.6 156.2. Change in Margins on Deposit Products (CBA Bank Domestic) Time Deposits 0.05% -0.05% 0
Slide 13: NIM Sensitivity
NIM Sensitivity Change required to produce movement in Group NIM of 0.01% ~0.01% Non Lend IEA’s change in level ($bn) -$0.9 bn $0.9 bn Wholesale Funding (% change wholesale share) -0.65% 0.65% Lending Mix (% change in HL share) -0.78% 0.78% Capital Transactions ($bn change in Equity) $0.4 bn -$0.4 b
Slide 14: Sustainability of Dividend
Sustainability of Dividend poe % Which Bank ConmonwealthBank < , 4
Slide 15: Sustainability of Dividend
Sustainability of Dividend Sustainability of the Dividend Payout Ratio (DPR) is related to: » Cash Profit « Current and expected rates of business growth and the mix of business = Capital needs to support economic, regulatory and credit ratings requirements # The rate of return on assets » Investmen
Slide 16: Generation and Use of Capital
Generation and Use of Capital ADJUSTED COMMON EQUITY (0.66) (0.34) B.0% 288 ] 7 TIER ONE CAPITAL 7.0% sd (0.34) ws se ConmonwealthGark 16
Slide 17: Dividend and Buy-Back History
Dividend and Buy-Back History Increases in DPS each year Buy-backs regularly used to enhance EPS and increase ROE « $4.3bn of shares bought back since privatisation DIVIDENDS PER SHARE DPS (cents) 93 $4 95 96 SF $B 99 O89 Of G2 @ intorim @ Final $m 1400 1000 900 800 700 600 500 400 300 200 160 SHARE
Slide 18: ACE and the Dividend Payout Ratio
ACE and the Dividend Payout Ratio ACE is sensitive to the rate of business growth and business mix DPR represents total annual dividends as a proportion of cash profit less preference share dividends 85% 80% p 85% B0% 4 75% 4 DPR (LHS) DPR 70% 85% RWA growth 80% 55% way RWA grow th 96 8f 38 8S RESy
Slide 19: Investor Half Day
Investor Half Day Net Interest Margin (NIM) Sustainability of Dividend Marten Touw Group Treasury 19 October 2004 Which Bank ConmonwealthBank
Commonwealth Bank of Australia — Investor Day (October 2004) on 6ix