Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — Debt Investor Presentation (August 2014)
25 slides from Commonwealth Bank Of Australia's debt investor presentation, Aug 18, 2014
Slide 1: CommBank PERLS VII Capital Notes Investor Presentation
For personal use only CommBank PERLS VII Capital Notes Investor Presentation 18 August 2014 Investments in PERLS VII 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 th
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 CommBank PERLS VII Capital Notes (‘PERLS VII”) (the “Offer”). The Offer will be made in or accompanied by a copy of the Prospectus (“Prospectus”). CBA intend
Slide 3: Overview
For personal use only Overview
Slide 4: Overview
Overview For personal use only CommBank PERLS ■ PERLS VII are subordinated, unsecured notes issued by CBA, through its New Zealand branch VII Capital Notes (“PERLS VII”) Offer size ■ A$2 billion, with the ability to raise more or less Use of proceeds ■ The Offer raises Tier 1 Capital to satisfy CBA’
Slide 5: Key Features of CommBank PERLS VII Capital Notes
For personal use only Key Features of CommBank PERLS VII Capital Notes
Slide 6: Distributions
Distributions For personal use only Distributions ■ PERLS VII are scheduled to pay quarterly, floating rate Distributions ■ The first Distribution is scheduled to be paid on 15 December 2014 ■ Distributions are expected to be fully franked, but will be increased to compensate Holders to the extent t
Slide 7: Summary of events that may affect PERLS VII
Summary of events that may affect PERLS VII For personal use only PERLS VII do not have a fixed maturity date but may be Exchanged into Ordinary Shares, Redeemed or Resold. The diagram below summarises when these events could occur1. If none of these events occur, PERLS VII could remain on issue ind
Slide 8: Early Redemption & Resale
Early Redemption & Resale For personal use only Early Redemption ■ CBA may Redeem PERLS VII in the following circumstances (subject to certain conditions including prior written Rights for CBA approval by APRA): — on the Call Date (15 December 2022) - all or some PERLS VII; or — At any time – all of
Slide 9: Mandatory Exchange
Mandatory Exchange For personal use only Mandatory ■ On the Mandatory Exchange Date (15 December 2024), CBA must Exchange all PERLS VII (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 10: Automatic Early Exchange – Non-Viability Trigger Event
Automatic 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 VII (or the taking of an action in relation to other capital instruments
Slide 11: Automatic Early Exchange – Capital Trigger Event
Automatic 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
Slide 12: Comparison to other CBA hybrid securities
Comparison to other CBA hybrid securities For personal use only Other hybrid securities issued by CBA CommBank PERLS VII PERLS V PERLS III PERLS VI Capital Notes Issuer CBA CBA Preferred Capital Limited, a CBA subsidiary of CBA Legal form Stapled security Perpetual note Preference share Perpetual no
Slide 13: Information about CBA
For personal use only Information about CBA
Slide 14: FY 2014 Financial Results
FY 2014 Financial Results Snapshot – FY14 Results1 For personal use only Financial Operating performance by division Cash NPAT ($m) $8,680m 12% Retail Banking Services ($m) 3,472 12% ROE (Cash) 18.7% 50 bpts Business and Private Banking ($m) 1,526 4% Cash EPS ($) 5.36 11% Institutional Banking & Mar
Slide 15: Sound credit quality
Sound credit quality For personal use only Loan Impairment Expense Home Loan Arrears CBA Group (basis points) 1 2 73 3 Troublesome and Impaired Assets 41 25 3 21 20 3 16 FY09 FY10 FY11 FY12 FY13 FY14 Pro Forma 1 Basis points as a percentage of average Gross Loans and Acceptances (GLA) 2 FY09 include
Slide 16: Strong capital position
Strong capital position For personal use only 12.1% 11.0% CET1 9.8% 6.9% 9.3% 8.2% 7.5% +70bpts +107% 4.5% 47 23 12.1% Jun 07 Jun 12 Jun 13 Jun 14 11.4% Internationally harmonised 1 52 28 9.3% Strong organic growth APRA 8.5% 8.0% CET1 above Capital Trigger Event level (5.125%) Dec 13 Organic List
Slide 17: Funding and liquidity
Funding and liquidity For personal use only CBA’s term maturity profile as at 30 June 2014 CBA’s funding by type as at 30 June 2014 ($bn) 2% 1% 3% 3 10% Customer Deposits 4% ST Wholesale Funding LT Wholesale Sale Funding < 12 months 7 LT Wholesale Sale Funding > 12 months 16% Covered Bonds 2 RMBS 64
Slide 18: Bank Hybrid Securities Basics
For personal use only Bank Hybrid Securities Basics
Slide 19: Bank hybrid securities basics
Bank hybrid securities basics For personal use only An interactive module on bank hybrid securities basics is available to potential investors to help them understand bank hybrid securities, their features and risks. It is available from www.commbank.com.au/about- us/shareholders/securities/bank-hyb
Slide 20: Key Dates & Contacts
For personal use only Key Dates & Contacts
Slide 21: Key Dates
Key Dates For personal use only Key dates for the Offer Lodgement of Prospectus with ASIC 18 August 2014 Securityholder Offer Record Date 22 August 2014 Bookbuild 25 August 2014 Announcement of Margin 26 August 2014 Opening Date for the Offer 26 August 2014 Closing Date for the Offer 5.00pm (Sydney
Slide 22: Contacts
Contacts For personal use only Issuer 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 Trevor Franz +61 2 9118 1205 +61 2 9118 1211 Morgan Stanley A
Slide 23: Appendix: PERLS VII Key Benefits and Key Risks
Appendix: CommBank PERLS VII Capital Notes – Key Benefits and Key Risks1 For personal use only Key Benefits of PERLS VII ■ PERLS VII are scheduled to pay a floating Distribution Rate ■ PERLS VII Distributions are scheduled to be paid quarterly in arrears ■ PERLS VII pay a Fixed Margin above the Mark
Slide 24: Appendix: PERLS VII Key Benefits and Key Risks (cont.)
Appendix: CommBank PERLS VII Capital Notes – Key Benefits and Key Risks1 For personal use only Key Risks of PERLS VII (cont.) ■ CBA may Redeem PERLS VII on the Call Date or at any time for tax or regulatory reasons, subject to APRA’s prior written approval. APRA’s approval may or may not be given ■
Slide 25: For personal use only
For personal use only
Commonwealth Bank of Australia — Debt Investor Presentation (August 2014) on 6ix