Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — Debt Investor Presentation (September 2019)
78 slides from Commonwealth Bank Of Australia's debt investor presentation, September 2019
Slide 1: Debt Investor Discussion Pack
Debt Investor Discussion Pack For the full year ended 30 June 2019
Slide 2: Becoming a simpler, better bank
Becoming a simpler, better bank Disciplined Responding Delivering execution to challenges strong core outcomes ► Customer focus ► Customer remediation ► Home loans +4% ► Appropriate risk appetite ► Lower interest rates ► Transaction deposits +9% ► Balance sheet settings ► Softer housing market ► Dep
Slide 3: Economic Overview
1 Economic Overview “ Against a volatile global backdrop, the Australian economy has slowed, but remains resilient ”
Slide 4: Key economic indicators (June FY)
Key economic indicators (June FY) GDP % Underlying CPI % Unemployment Rate % GDP Nominal GDP 5.9 5.7 5.9 5.5 2.9 5.6 5.1 5.0 4.8 2.8 2.1 2.1 2.5 2.6 4.7 4.9 4.7 1.8 2.3 1.7 1.6 2.1 1.4 2.4 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2
Slide 5: Key economic indicators (June FY)
Key economic indicators (June FY) 2014 2015 2016 2017 2018 2019 2020 2021 World GDP 3.6 3.5 3.3 3.8 3.6 3.3 3.6 3.6 Australia Credit Growth % – Total 5.0 5.9 6.2 5.4 4.4 3.3 3½-5½ 4½-6½ Credit Growth % – Housing 6.4 7.3 6.7 6.6 5.6 3.5 3½-5½ 4½-6½ Credit Growth % – Business 3.4 4.5 6.6 4.2 3.2 4.0 4
Slide 6: Global growth risks remain elevated
Global growth risks remain elevated The global economy has …as trade war risks …and policy uncertainty remains slowed… escalate… elevated Index Global PMI1 New Export Orders2 Index Global Policy Uncertainty3 60 65 (higher readings indicate greater uncertainty) US 300 Services Expansion 60 56 Expansi
Slide 7: Australia – the economy has slowed
Australia – the economy has slowed GDP growth has dipped below Progress in reducing unemployment Inflation rates remain trend has stalled low % GDP Growth1 Unemployment Rate1 % CPI Growth1 % 6 6 6 4 4 4 2 2 2 0 0 0 Jun 07 Jun 13 Jun 19 Jun 07 Jun 13 Jun 19 Jun 07 Jun 13 Jun 19 Consumer spending is s
Slide 8: Australia – some positives
Australia – some positives The major economic imbalances continue Population growth remains strong, Policy stimulus is coming via interest to narrow supporting demand rate cuts and tax cuts % Key balances1,2 % Population1 Impact on disposable income3 (rolling annual total, % of GDP) (annual % change
Slide 9: New Zealand
New Zealand Dairy prices have remained relatively NZ’s terms of trade expected to remain Inflation is likely to range between 1-2% steady since late 2016 near record highs over next few years Global dairy trade auction results1 Index NZ Terms of Trade2 % NZ CPI inflation3 (USD/tonne) 1500 6 6,000 (f
Slide 10: Results Summary
2 Results Summary Commonwealth Bank, South Eveleigh building, NSW Commonwealth Bank of Australia | ACN 123 123 124 | 7 August 2019 10
Slide 11: FY19 – result overview
FY19 – result overview1 Financial Balance Sheet, Capital & Funding Statutory NPAT2 ($m) 8,571 (8.1%) Capital – CET12,4(Int’l) 16.2% 70 bpts Cash NPAT3 ($m) 8,492 (4.7%) Capital – CET12 (APRA) 10.7% 60 bpts ROE3 % (cash) 12.5 (110)bpts Total assets ($bn) 977 0.1% Total liabilities ($bn) 907 Flat EPS3
Slide 12: Franchise strength
Franchise strength Group Lending Lending Growth2 Home Lending Growth CBA growth as a multiple of system growth4 +2% +4% +4% (12%) 1.3x 760 0.9x 747 Home Business Insto. Lending Lending 3 Lending 0.6x $bn Jun 18 Jun 19 Jun 18 Dec 18 Jun 19 Group Deposits5 Transaction Balances5 Deposit Funding +2% +9%
Slide 13: Franchise strength
Franchise strength1 Home Lending2 Business Lending Household Deposits2 Volume growth Volume growth Volume growth System CBA System CBA System CBA annualised annualised annualised 5.0% 3.4% 3.7% 3.1% 3.9% 4.1% 4.0% 2.5% 2.5% 1.3% -3.6% -4.0% 12 Months 6 Months 12 Months 6 Months 12 Months 6 Months Ju
Slide 14: Best in digital
Best in digital A global mobile banking leader Recognition and engagement CommBank app users Forrester Banking WaveTM: Global Mobile Apps Monthly unique customers (m)8 Asia Pacific 20181 Mobile app #1 Net Promoter Score2 5.6m 5.3 Online banking 4.4 4.8 5.0 #1 (Canstar - 10 years in a row)3 3.0 3.4 3
Slide 15: Operating income down 2.0%
Operating income down 2.0%1 • Core volume growth • Better Customer Outcomes - fee removals (118) • Margin -5bpts (flat 2H19) • Institutional lending fees - AASB 15 (73) -1.2% • NSW/Vic storms, Qld floods • Lower advice fees 24,914 • FUA growth +6.0% (222) -3.9% Volume Growth2 -2.0% (194) -10.2% Home
Slide 16: Group margin
Group margin1 bpts bpts Last 5 halves This half 216 Flat 214 210 210 210 1 (1) 1 (1) 210 210 FY20 Headwinds bpts Home Loans: Higher Lower Switching (2) deposit earnings AASB 16 (1) Discounting (2) funding on free Cash Rate2 (4) SVR +4 equity Lending Mix +1 2H17 1H18 2H18 1H19 2H19 1H19 Asset Deposit
Slide 17: Group margin
Group margin Basis Risk Replicating Portfolio (RP) & Equity Hedge Every 5 bpts = 1 bpt of NIM1 Equity and Deposit Hedge Jun 19 2H19 Exit Average Balance Avg. Tractor2 investment $bn Tractor2 Rate term 1.0% 8.0% Equity Hedge 46 2.17% 2.06% 3 yrs Deposit Hedge 67 2.26% 2.22% 5 yrs FY19 RP Hedge FY19 0
Slide 18: Operating expenses up +2.5%
Operating expenses up +2.5%1 Strategic Targets Notable +2.4% • Absolute cost reduction items (ex notable items) • Sub 40% Cost:Income 12,000 +2.5% 158 259 (190) 11,269 11,000 10,995 (930) 977 10,000 Remediation +$866m +600 FTE 9,000 +450 FTE Wage inflation and IT increases 8,000 ($700m) AUSTRAC pena
Slide 19: Credit risk
Credit risk Loan Loss Rate1 - Group Loan Loss Rate1 – Divisions TIA • Single name exposures Consumer 17 BPB – Small number of larger impairments • Emerging signs of weakness - Corporate 14 IB&M – Ongoing portfolio optimisation discretionary spending, agriculture Group 16 and construction 73 % of bpt
Slide 20: Credit risk – consumer credit quality & provisions
Credit risk – consumer credit quality & provisions % Arrears1 $m Collective Provisions 90+ days Provision Coverage3 Personal Loans 0.75% 1.05% 1.41% 1.44% 1.56% 3,904 1.21% 1.44% Credit Cards 1.03% 1.03% 2,763 0.88% v v 2,416 Consumer 1.02% 0.94% 1,528 Home Loans2 0.70% 0.67% 0.68% 0.60% 0.59% 1,488
Slide 21: A simpler bank – divestments/reviews
A simpler bank – divestments/reviews Sovereign Completed Jul 18 TymeDigital Completed Nov 18 CET1 CFSGAM Completed Aug 19 11.8% 10.7% BoCommLife Expected Completion 1H20 Includes divestments1 10.5% CommInsure Life Expected Completion 1H20 Unquestionably ~130bpts strong PTCL Expected Completion 1H20
Slide 22: Investment spend
Investment spend1 Investment spend FY19 vs Investment spend FY19 vs FY18: $m $m FY18: 1,399 +9% 1,399 +9% 1,282 Total 1,282 1st Half 597 676 +13% 603 (1%) Capitalised 611 +6% +19% Expensed 2nd Half 685 723 671 796 FY18 FY19 FY18 FY19 Investment spend Capitalised software balance % of total $bn Avera
Slide 23: Funding, Liquidity and Capital
3 Funding, Liquidity and Capital “with We have maintained our strong funding position the highest share of stable household deposits in Australia ”
Slide 24: Funding overview
Funding overview Resilient balance sheet with ongoing Stable wholesale funding composition ...with a >5.0yrs WAM to reduce customer deposit growth weighted to longer term funding… refinancing risk Deposit Funding Long Term Funding Long Term Funding WAM % of total wholesale funding Tenor, years 68% 6
Slide 25: Deposit funding
Deposit funding Deposit Funding Deposits vs Peers1 Deposits in NSFR5 $bn As at 30 June 2019 ($bn) 69% 499 Peers as at 31 March 20196 68% 426 67% Other 343 250 deposits 235 CBA 66% 211 273 Peer 1 211 Household 155 Peer 2 63% 264 215 200 Peer 3 deposits 132 118 CBA overweight Jun 15 Jun 16 Jun 17 Jun
Slide 26: Wholesale funding
Wholesale funding Portfolio Mix Short Term funding by product¹ Certificate of Deposits 46% Short term 33% 34% 34% funding¹ Commercial Paper 24% 67% 66% 66% FI Deposits 22% Long term Funding2 5.1 5.0 5.1 WAM WAM3 MTN 5% WAM Other 3% Jun 18 Dec 18 Jun 19 Long Term funding by currency2 Long Term fundin
Slide 27: Long term funding
Long term funding Group FY19 benchmark issuance New term issuance New term issuance Date Entity Type Tenor Volume Spread at Issue by currency by tenor (yr) (m) (bpts) Jul 18 CBA GBP Senior 3 GBP 250 3m GBP Libor +45 25% 23% 21% Jul 18 CBA USD Covered 5 USD 1,250 MS +40 38% 42% 44% 45% >5 years Aug 1
Slide 28: Capital overview
Capital overview CET1 CET1 CET1 433% International APRA 10.8% 10.7% 16.5% 16.2% Assets 10.1% 15.5% 122% 2007 2009 2011 2013 2015 2017 2019 Jun 18 Dec 18 Jun 19 Jun 18 Dec 18 Jun 19 International CET1 ratios 16.9 16.3 16.2 16.2 14.8 14.8 14.6 14.6 14.5 14.3 G-SIBs in dark grey 13.9 13.8 13.7 13.7 13.
Slide 29: CET1 – internationally comparable
CET1 – internationally comparable bpts Internationally Comparable1 CET1 CET1 APRA 10.7% Equity investments 1.0% Capitalised expenses 0.1% Deferred tax assets 0.4% 16.5% (99) 110 (49) 8 16.2% IRRBB RWA 0.3% Residential mortgages 2.1% Other retail standardised exposures 0.1% Unsecured non-retail expos
Slide 30: Leverage ratio
Leverage ratio Leverage ratio introduced to constrain the build-up of leverage in $m Jun 19 the banking system. Tier 1 Capital 57,355 Leverage ratio = Tier 1 Capital Total Exposures 1,023,181 Total Exposures Leverage Ratio (APRA) 5.6% $m Jun 19 6.3% 6.4% 6.5% Group Total Assets 976,502 5.5% 5.6% 5.6
Slide 31: APRA’s LAC proposal
APRA’s LAC proposal • Additional 3% of RWA in Total Capital 18.0% applicable to all domestically systemically important banks (D-SIBs) by 1 January 2024. Capital Surplus 15.5% • This represents additional A$13.6bn of Total 15.0% 14.5% Capital requirement for CBA. Tier 2 Capital Surplus Capital • Ove
Slide 32: Potential loss absorption
APRA’s LAC proposal A$bn • Continue to hold a strong, stable capital position with A$69bn Tier 2 of loss absorbing capital underpinning Tier 2 issuance. 12.8 Actions to Strengthen Capital Levels; • Capital actions CBA may implement to increase capital levels Additional Tier 1 9.0 before reaching the
Slide 33: RBNZ capital proposal
RBNZ capital proposal RBNZ proposed capital requirement changes 16.0% 18.0% • Potential capital increase in ASB of ~NZ$3bn, Minimum assuming current balance sheet size and 2.0% Tier 2 Tier 1 composition. 1.5% AT1 CCYB Buffer • RBNZ expected to finalise reforms towards the end 1.5% of calendar year 2
Slide 34: Regulatory capital changes
Regulatory capital changes Change Details Implementation APRA’s • Capital to exceed unquestionably strong benchmark of CET1 >10.5% by 1 Jan 2020 1 Jan 2020 unquestionably strong APRA commenced consultation in 2018 on: • Revisions to risk-based capital requirements for credit, interest rate risk in t
Slide 35: Business Units
4 Business Units “ We have maintained sound business fundamentals and momentum in a challenging operating context ”
Slide 36: Business Units
Business Units ~ 95% of Group NPAT1 Divestments/ Strategic Reviews Movements are FY19 vs FY18 Life 13 IFS Discontinued (15) (10%) Sovereign - Eliminations (24) 4,234 (7%) (8%) 4% 49% (28%) (37%) (18%) (73%) Large 2,658 1,071 1,191 240 $m 227 (941) 160 33 (26) 2 RBS BPB IB&M ASB IFS Other WM CFSGAM M
Slide 37: Retail Banking Services (RBS)
Retail Banking Services (RBS)1 % of Group NPAT2 Volume growth3,4 Balancing growth and returns - managing regulatory requirements 12 months to Jun 19 5.0% 50% System 3.4% 4.1% 3.7% Home Household Loans Deposits $m Jun 18 Jun 19 % Margin RBS provides simple, convenient Income 11,470 10,959 (4) and aff
Slide 38: Business & Private Banking (B&PB)
Business & Private Banking (B&PB) % of Group NPAT1 Volume growth Jun 19 vs Jun 18 Transport & Storage +10% Business Services +10% 31% Property Investor +3% Property Developer -12% 2.9% 1.7% -0.7% Business Home Deposits Lending Loans We are continuing to invest in our $m Jun 18 Jun 19 % Margin busine
Slide 39: Institutional Banking and Markets (IB&M)
Institutional Banking and Markets (IB&M) % of Group NPAT1 Volume growth Front book discipline, back book optimisation 13% RWA $bn 101 97 96 90 85 Other 13 16 20 17 18 Credit 88 81 76 73 67 Jun 17 Dec 17 Jun 18 Dec 18 Jun 19 Institutional Banking and Markets $m Jun 18 Jun 19 % Margin serves the comme
Slide 40: ASB
ASB % of Group NPAT1 Volume growth Solid volume growth in lending and deposits 13% 12 months to Jun 19 6% 6% Deposits Lending NZD $m Jun 18 Jun 19 % ASB conducts its business through Margin Income 2,600 2,726 5 four business units: Retail Banking; Margin remained stable over the half Expense (935) (
Slide 41: Home and Consumer Lending
5 Home and Consumer Lending “ We are Australia’s largest home lender, providing $92 billion of new lending this year for Australian home buyers ”
Slide 42: Home lending – system overview
Home lending – system overview The recent modest slowdown in housing credit The slowdown has been driven by a combination of growth is expected to extend into calendar year 2020 regulatory/other factors, largely in investment lending % Housing Credit1 CBA Economics Forecast Range % Credit Growth1 7.
Slide 43: Home lending - CBA
Home lending - CBA1 CBA adopted regulatory changes early and avoided Whilst some market share was ceded as a result, more riskier segments at the peak of the market recent growth has been at or above system CBA growth vs system (6mthly) • APRA 10% cap on 12 month rolling growth (%) Market share IHL
Slide 44: Borrowing capacity relatively stable
Borrowing capacity relatively stable1 A number of strengthened servicing policies and Despite tightening, maximum borrowing capacity has practices have been implemented since June 2015 remained relatively stable over the last 12-18 months Change in maximum borrowing capacity2 Indexed December 2016
Slide 45: Serviceability assessment
Serviceability assessment1 New loan applications are assessed based on a range An interest rate buffer is used in of income and expenditure metrics loan servicing tests All income used in application to assess serviceability is verified Interest rate buffers (%) • Loans assessed based on the 80%
Slide 46: Portfolio quality remains sound
Portfolio quality remains sound1 Approximately 60% of the book was originated under Significant repayment buffers tightened standards from FY16 in place Mortgage portfolio by year of origination Repayment buffers 17% (Payments in advance2, % of accounts) 15% 16% 10% 12% 9% 6% 7% 31% 5% 5% 2% 3% 3% 3
Slide 47: Portfolio LVRs
Portfolio LVRs1 Portfolio LVRs remain strong, with a modest uptick in Approximately 3.5% of accounts and 4.5% of balances higher LVR bands given market softening are in a negative equity3 position Dynamic LVR Bands2 Jun 18 Proportion of Balances in Negative Equity3 60% Dec 18 50% % of total Portfoli
Slide 48: Home loan portfolio – CBA
Home loan portfolio – CBA Portfolio1 Jun 18 Dec 18 Jun 19 New Business1 Jun 18 Dec 18 Jun 19 Total Balances - Spot ($bn) 451 458 467 Total Funding ($bn) 45 49 43 Total Balances - Average ($bn) 443 455 462 Average Funding Size ($’000)7 319 326 320 Total Accounts (m) 1.8 1.8 1.8 Serviceability Buffer
Slide 49: Interest only (IO) home loans
Interest only (IO) home loans1 IO loans account for a reducing proportion of total …and a reducing proportion of portfolio balances… total new business flow IO % of total home loans IO % of total home loans Total portfolio balance New business flow 30% 26% 22% 23% 23% 22% 2H18 1H19 2H19 2H18 1H19 2H
Slide 50: Home loan arrears
Home loan arrears Group portfolio arrears broadly stable Trends are broadly consistent across ….with interest only arrears steady over this half loan types…. the last 12 months Arrears by Portfolio Group Arrears by Product Arrears by Repayment Type 1.0% 1.8% 1.0% Group 90+ days Bankwest 90+ days1 90
Slide 51: Portfolio losses, insurance and stress testing
Portfolio losses, insurance and stress testing1 Losses to average gross loans2 Portfolio Insurance Profile3 2.5% % of Home Loan portfolio Excess of loss re- Insurance with Genworth insurance 4% or QBE for higher risk 2.0% 21% loans above 80% LVR 5% 1.5% CBA Home Loans Insurance not required 70% Low
Slide 52: Consumer arrears
Consumer arrears Group 2015 Credit Cards Bankwest Credit Cards 2016 2017 1.8% Group 90+ days CBA Group 90+ days 2018 ASB 1 2019 1.2% 1.2% 1.0% 0.6% 0.0% 0.8% Jun 17 Dec 17 Jun 18 Dec 18 Jun 19 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Personal Loans Personal Loans 2015 Group Group 90+ days 201
Slide 53: Business and Corporate Lending
6 Business and Corporate Lending “$36Supporting Australian businesses with billion of new business lending this year ”
Slide 54: Corporate portfolio quality
Corporate portfolio quality1 Exposures by Industry Corporate Portfolio Quality Group TCE by Geography Investment Grade AAA A+ BBB+ Jun 18 Dec 18 Jun 19 Jun TCE $bn to to to Other 19 AA- A- BBB- Australia 77.6% 77.9% 78.4% 67.9% 67.9% 67.4% Sovereign 95.8 9.1 0.5 - 105.4 New Zealand 10.0% 10.4% 10.6%
Slide 55: Credit exposure summary
Credit exposure summary Group TCE TIA $m TIA % of TCE Dec 18 Jun 19 Dec 18 Jun 19 Dec 18 Jun 19 Consumer 57.8% 58.6% 1,832 2,101 0.29% 0.33% Sovereign 10.0% 9.7% - - - - Property 6.2% 6.3% 652 775 0.97% 1.14% Banks 4.6% 4.5% 9 9 0.02% 0.02% Finance – Other 4.9% 4.9% 78 35 0.15% 0.07% Retail & Wholes
Slide 56: Sectors of interest - Construction
Sectors of interest - Construction Exposures of $8.2bn (0.8% of Group TCE) with no Group Exposure Jun 18 8.1 8.3 8.2 Dec 18 material changes to sector composition. Jun 19 Portfolio rated 18% investment grade and 41% of 17 17 18 exposures secured. On-going higher risk is evidenced by elevated T
Slide 57: Sectors of interest – Commercial Property
Sectors of interest – Commercial Property Group Exposure Jun 18 Increase in investment exposures driving moderate Dec 18 68.2 increase exposure for the half year (+1.4%). 67.2 67.2 Jun 19 Diversified across sectors and by counterparty. Lower apartment development exposures. 34 34 35 Top 20 c
Slide 58: Sectors of interest – Residential Apartments
Sectors of interest – Residential Apartments Apartment Development1 exposure reduced by $2.9bn Profile (56%) since Dec 16. Total Residential Apartment Development1 $9.5bn (14% of CP) $2.3bn (0.2% of TCE) Facilities being repaid on time from pre-sale settlements. Perth Other $0.3bn Weighting to
Slide 59: Sectors of interest – Agriculture
Sectors of interest – Agriculture Jun 18 Group Exposure Group agriculture exposure of $22.5bn (2.1% of Group Dec 18 21.8 22.4 22.5 TCE) – diversified by geography, sector, client base. Jun 19 Australian agriculture portfolio is facing weak seasonal and drought conditions. The Australian dairy se
Slide 60: Sectors of interest – drought affected areas
Sectors of interest – drought affected areas CBA enacted its emergency assistance package in June 2018 for drought impacted clients. Drought more pronounced in NSW and Victoria, with conditions drier than long term averages. Past droughts have not materially impacted the portfolio’s performanc
Slide 61: Sectors of interest – Retail Trade
Sectors of interest – Retail Trade The retail trade sector remains weak, challenged by low 11.7 11.711.3 Group Exposure Jun 18 Dec 18 wage growth, falling house prices, continued subdued Jun 19 consumer sentiment, and online disrupters. 27 Retail trading conditions, particularly in the discretio
Slide 62: Good business practice
7 Good business practice “ we We are committed to earning trust and changing the way do things, to become a better bank for our customers and communities ”
Slide 63: Good business practice
Good business practice Doing the right thing • Customer remediation • Better Customer Outcomes Regulatory engagement • Royal Commission - Progress • Remedial Action Plan (APRA) Doing business openly, responsibly, sustainably • Banking Code of Practice • Comprehensive Credit Reporting (CCR) • Open Ba
Slide 64: Customer remediation
Customer remediation Remediation and Program Costs Total Cumulative spend and provisions to- $m 1H19 2H19 FY19 date Banking customers $2,174m Aligned Advice remediation1 200 334 534 534 Wealth customers 462 Wealth customer refunds • Includes an estimate of refunds and interest to customers relating
Slide 65: Better customer outcomes
Better customer outcomes Income forgone by date of initiative Examples RBS BPB WM $m 415 • Calculation of interest on credit cards • Wealth Management – Protecting Your Super Date of pricing • CFP – removal of ongoing service fees change 190 • Wealth Management – CFS repricing 275 • Overdr
Slide 66: Regulatory engagement
Regulatory engagement Jun 19 Jun 19 75 23 submitted2 underway3 No action required as action is with government/regulator or CBA does not No action required by CBA4 26 operate in that business Submitted Not yet Due 27 Actively participating in consultation Government 16 legislation/review 27 processe
Slide 67: Responding to heightened regulatory requirements
Responding to heightened regulatory requirements • Royal Commission – addressing recommendations and implementing the necessary changes • APRA – delivering all 156 milestones of the Remedial Action Plan, with updates to APRA by the Independent reviewer every 3 months. Delivering on APRA requirements
Slide 68: Doing business openly, responsibly and sustainably
Doing business openly, responsibly and sustainably ► New Code approved by ASIC, ► Enabling customers to take control of ► Enhancing customers financial security commenced 1 July 2019. their data, with the right to direct data to and enabling better risk based decisions accredited third parties. Info
Slide 69: Doing business openly, responsibly and sustainably
Doing business openly, responsibly and sustainably Community investment Employee engagement Renewable energy Total community investment ($m)1 CBA Employee Engagement Index (%)2 Exposure ($bn)3 281 3.6 290 81 3.7 263 266 77 78 2.8 68 2.2 243 72 1.4 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY
Slide 70: Our commitment to doing business sustainably
Our commitment to doing business sustainably 2014 2016 2018 ♦ Signatory to the Equator ♦ Ranked 4th overall, recognised as the most ♦ Australia’s most sustainable company for the 3rd Principles III sustainable company in Australia and the most year running in the 2018 Global 100 2001 ♦ Developed and
Slide 71: Our sustainable development goals
Our sustainable development goals We show our customers that we are on their side through service excellence, supporting financial wellbeing, good customer outcomes and advocacy, Customers and digital innovation We are rebuilding trust and our reputation by engaging proactively and openly with gover
Slide 72: Environmental and Social Policy Framework
Environmental and Social Policy Framework • Reducing our exposures to • Open, fair, inclusive workplace • Complying with, or exceeding, • Keeping abreast of advances • We will not knowingly support, thermal coal mining and coal regardless off age, gender, environmental legislation in industry sustai
Slide 73: Doing business openly, responsibly and sustainably
Doing business openly, responsibly and sustainably Our phased approach to managing climate change risk is published in the 2019 Annual Report Governance Strategy Risk management Metrics and targets • The Board governs our • Second phase of climate • Inclusion of physical climate • Source 100% of our
Slide 74: Energy value chain
Energy value chain1 Natural resources Infrastructure Electricity generation Network and retailers Oil Oil distribution and refining $2.3bn (-18%) Renewables $0.8bn $3.6bn (-17%) (-2%) Gas LNG terminals Gas $1.2bn $2.8bn $0.8bn (-29%) (-14%) (+24%) Electricity and gas transmission, Thermal coal distr
Slide 75: Sources, Glossary & Notes
8 Sources, Glossary & Notes
Slide 76: Sources and Notes
Sources and Notes Best in digital Slide 14 1. The Forrester Banking WaveTM: Global Mobile Apps Summary, 2018. Commonwealth Bank of Australia received the highest industry WaveTM overall score among mobile apps in APAC in Forrester's proprietary Industry WaveTM evaluation. Forrester Research does not
Slide 77: Glossary
Glossary Capital & Other Funding & Risk Risk Weighted Assets or The value of the Group’s On and Off Balance Sheet assets are Liquidity coverage The LCR is the first quantitative liquidity measure that is part of the RWA adjusted by risk weights calculated according to various APRA ratio (LCR) Basel
Slide 78: Notes
Notes Disclaimer The material in this presentation is general background information about the Group and its activities current as at the date of the presentation, 7 August 2019. It is information given in summary form and does not purport to be complete. Information in this presentation is not inte
Commonwealth Bank of Australia — Debt Investor Presentation (September 2019) on 6ix