Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — H1 FY2015 Earnings Presentation
154 slides from Commonwealth Bank Of Australia's earnings presentation, Feb 11, 2015
Slide 1: Results Presentation for the half year ended 31 December 2014
RESULTS PRESENTATION FOR THE HALF YEAR ENDED 31 DECEMBER 2014 For personal use only IAN NAREV DAVID CRAIG Results Presentation CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER For the half year ended 31 December 2009 10 February Commonwealth Bank of Australia ACN 123 123 124 2010 COMMONWEALTH BANK OF
Slide 2: Disclaimer
Notes Disclaimer For personal use only The material that follows is a presentation of general background information about the Group’s activities current at the date of the presentation, 11 February 2015. It is information given in summary form and does not purport to be complete. It is not intended
Slide 3: Our Vision and Values
Our Vision and Values For personal use only Our Vision Our Values Integrity Have the courage to do and say what’s right To excel at securing and Collaboration Listen and work as one inclusive team enhancing the financial Excellence wellbeing of Do your best people, Accountability businesses and Take
Slide 4: Consistent strategy
Additional information Consistent strategy For personal use only People Focus on the customer Productivity Cultural change driving service and efficiency benefits Technology Customer value through world-class technology and operations Strength Long term support for our customers 4
Slide 5: Our strategy
Our strategy Customer Focus For personal use only People Productivity Technology Strength Capabilities “One CommBank” Growth Continued growth in business and institutional banking Opportunities Disciplined capability-led growth outside Australia TSR Outperformance 5
Slide 6: Snapshot 1H15
Additional Snapshot 1H15 1 information 2 Financial Operating Performance by Division 2 For personal use only Cash earnings ($m) 4,623 8% Retail Banking Services ($m) 3,111 9% ROE (Cash) 18.6% (10) bpts Business and Private Banking ($m) 1,127 6% Cash EPS ($) 2.84 8% Institutional Banking & Markets ($
Slide 7: Continuing growth
Continuing growth For personal use only Dec 14 vs Dec 14 Dec 13 Statutory Profit ($m) 4,535 8% Cash NPAT ($m) 4,623 8% ROE – Cash (%) 18.6 (10) bpts Cash Earnings per Share ($) 2.84 8% Dividend per Share ($) 1.98 8% 7
Slide 8: Business Unit Summary
Additional information Business Unit Summary 1H15 vs 1H14 For personal use only % of Cost-to- Business Operating Operating Cash Group Costs LIE Income Unit 1 NPAT Income Performance NPAT Dec 14 RBS 43% 7% 2% 9% (10%) 12% 34% BPB 16% 6% 5% 6% (21%) 8% 38% IB&M 14% 6% 5% 6% large (3%) 33% 2 Wealth 8%
Slide 9: All divisions contributing
All divisions contributing 1 Income 7% Cash NPAT 1H15 For personal use only Costs 2% C:I 160 bpts to 34.5% Income 6% Transaction Deposits 16% Business loans 5% C:I 120 bpts to 43.5% + 12% Costs 5% NIM lower (home loans) 1,992 Income 6% Lending 5% Avg Lending
Slide 10: Market Share
Additional Market Share 1 information % Dec 14 Jun 14 Dec 13 For personal use only Home loans 25.2 25.3 25.3 Credit cards – RBA2 25.2 24.9 24.7 Other household lending3 18.6 18.8 18.2 Household deposits4 28.8 28.7 28.6 Business lending – RBA 17.2 17.7 17.9 Business lending - APRA 18.6 18.8 19.0 Busi
Slide 11: Continuing volume growth
Continuing volume growth Household Deposits Home Lending Credit Cards For personal use only Balance Growth1 Balance Growth1 Balance Growth 1 Underweight in higher growth Existing customers represent segments – broker and ~90% of new RBS accounts 10.3% investment lending 9.1% 8.1% 6.8% 6.4% 5.8% 3.6%
Slide 12: Notes
For personal use only 12 Notes
Slide 13: Continued focus on the customer
Continued focus on the customer For personal use only 1 Retail Customer Satisfaction Area CBA 86% 5 CBA Business - Micro =1st 84% Peers 5 82% Business - Small =1st 80% 5 Business - Medium =1st 78% 5 76% Business - Large 1st 74% 6 Wealth 1st 72% 7 70% IFS 1st 68% 9 Jun 07 Dec 14 % Satisfied ('Very Sa
Slide 14: Notes
For personal use only 14 Notes
Slide 15: MFI share
MFI share 3 MFI share CBA MFI share by age 3 For personal use only % Overall 34.0% 34.0 45.8% Dec 14 32.7 42.7% 42.3% Dec 13 45.5% 41.6% 39.2% 20.0 20.0 MFI Share 29.9% 13.4 13.3 28.9% 28.1% 11.3 11.4 28.6% 28.5% 26.5% Dec Dec Dec Dec Dec Dec Dec Dec 13 14 13 14 13 14 13 14 14-17 18-24 25-34 35-49 5
Slide 16: Notes
For personal use only 16 Notes
Slide 17: Open Advice Review Program
Open Advice Review Program For personal use only Independent Reports program Expert outcomes publicly Independent Provides support Customer for customers Advocates Hon Ian Callinan AC Chairman Reviews Independent individual cases Review Panel Hon Geoffrey Davies AO Hon Julie Dodds-Streeton QC if req
Slide 18: Productivity metrics
Additional information Productivity metrics Customer Service Personal Loans Asset Finance For personal use only Telling transactions per CSR per week % funded same day Credit approval time (minutes) +11% +27% (67%) +3% +19% (19%) Dec 12 Dec 13 Dec 14 Dec 12 Dec 13 Dec 14 Dec 12 Dec 13 Dec 14 Home In
Slide 19: Productivity improving service and efficiency
Productivity improving service and efficiency Improving service 1 Driving efficiency For personal use only Personal loans funded Cost-to-Income (%) same day 27% Asset Finance – Credit approval time 67% 43.8% Productivity saving Home insurance claims – $140m turnaround time 39% 42.9% Transaction Bank
Slide 20: Leading technology, innovative solutions
Additional information Leading technology, innovative solutions For personal use only New NetBank for Better Kaching for Essential CommBank Cardless Innovation mobile Business FaceBook Super app Cash Lab launch Android Insights Mar 2013 Jul 2013 Dec 2013 / May 2014 Oct 2014 Feb 2011 Nov 2012 Jan 201
Slide 21: Leading technology
Leading technology Digital property settlement Online & electronic origination For personal use only CBA First e-docs for new home loan customers CBA first bank to perform property – 75% take-up where offered purchase settlement on PEXA1 platform 10% of personal transaction accounts Digitisi
Slide 22: Notes
For personal use only 22 Notes
Slide 23: Leading technology: CommBank app
Leading technology CommBank app For personal use only #1 free financial app1 #1 in customer satisfaction2 ~3 million unique users 15 million log-ons per week $2.5bn in transactions per week Temporary lock Cancel and replace ■ Temporarily lock/unlock Oct 14 Oct 14 credit cards ■ Instantly c
Slide 24: Notes
For personal use only 24 Notes
Slide 25: Leading technology: Albert at the cricket
Leading technology “Albert” at the cricket For personal use only Albert, CBA’s revolutionary new EFTPOS tablet, helped the McGrath Foundation raise more than $100,000 during the January Pink Test in Sydney As well as accepting card payments, Albert also issued tax receipts for high value donatio
Slide 26: Notes
For personal use only 26 Notes
Slide 27: Take Your Money Everywhere (TYME)
Leading technology Take Your Money Everywhere (“TYME”) For personal use only TYME machine for ultra low cost KYC in large retail stores In-built smartphone with locked apps Modular design allowing fingerprint or other biometric sensors Provides under-serviced customers access to regulated bank acc
Slide 28: Notes
For personal use only 28 Notes
Slide 29: Strength to support our customers
Strength to support our customers Deposit Funding Wholesale Funding Tenor For personal use only % of Total Funding Years Portfolio Tenor 1 3.9 63% 63% 63% 3.8 3.7 Dec 12 Dec 13 Dec 14 Dec 12 Dec 13 Dec 14 Liquids 2 Capital 2 Liquids ($bn) Basel III Common Equity Tier 1 13.3% 151 137 8.5% 9.2% 128 8.
Slide 30: Notes
For personal use only 30 Notes
Slide 31: Results Presentation – David Craig, CFO
RESULTS PRESENTATION FOR THE HALF YEAR ENDED 31 DECEMBER 2014 For personal use only DAVID CRAIG Results Presentation CHIEF FINANCIAL OFFICER For the half year ended 31 December 2009 10 February Commonwealth Bank of Australia ACN 123 123 124 2010 COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124 | 11
Slide 32: Notes
For personal use only 32 Notes
Slide 33: A strong financial result
A strong financial result For personal use only Dec 14 vs $m Dec 14 Dec 13 Dec 13 Operating income 11,647 11,067 5% Operating expenses (4,914) (4,751) 3% Operating performance 6,733 6,316 7% Investment experience 80 81 (1%) Loan impairment expense (440) (457) (4%) Tax and non-controlling interests (
Slide 34: Non-cash items
Additional information Non-cash items For personal use only $m Dec 14 Dec 13 Hedging and IFRS volatility Unrealised accounting gains and losses arising from (42) (5) the application of “AASB 139 Financial Instruments: Recognition and Measurement” Other Bankwest non-cash items (26) (30) Treasur
Slide 35: Statutory Profit up 8%
Statutory Profit up 8% For personal use only $m Dec 14 Dec 13 Cash NPAT 4,623 4,268 +8% Hedging and IFRS volatility (42) (5) Other non-cash items (46) (56) Statutory NPAT 4,535 4,207 +8% 35
Slide 36: Other Banking Income
Additional information Other Banking Income Other Banking Income Net Trading Income For personal use only $m 241 281 443 420 508 414 513 Dec 14 vs $m Dec 14 Dec 13 Dec 13 26 30 Commissions 1,127 1,081 4% 52 44 189 163 Lending fees 528 537 (2%) 158 124 87 120 Other 202 108 87% 1,857 1,726 8% 321 289
Slide 37: 6% underlying income growth
6% underlying income growth $m For personal use only Operating Income +5% (underlying +6%) Funds & Insurance (underlying +7%) 1 Property non-recurring ($100m) 1,386 Underlying FUA 1 10% 1,389 - Funds management margin 6bpts 2,370 2,234 +6% Other Banking Income Commissions/fees/other 8% Trading
Slide 38: Group NIM
Additional information Group NIM For personal use only bpts 12 Month Movement (10) 3 (1) 7 (1) 214 212 1 1H14 Asset Funding Basis Portfolio Other 1H15 pricing costs risk mix 1 Includes Treasury, impact from change in Non Lending Interest Earning Assets and other unallocated items 38
Slide 39: Group NIM down 2bpts in the half
Group NIM down 2bpts in the half bpts Group NIM (Six Months) For personal use only bpts 6 Month Movement 213 214 217 214 214 212 210 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 12 month NIM (4) (1) 2 (1) 2 214 212 1 2H14 Asset Funding Basis Portfolio Other 1H15 pricing costs risk mix 1 Includes Treasury, imp
Slide 40: Investment spend
Additional information Investment spend Investment Spend 1H15 Investment Spend For personal use only $m 1,286 1,237 $595m 1,179 1,182 1,075 1,036 Branches and Other 639 655 593 638 12% 538 563 28% Risk & 60% Compliance 647 589 595 Productivity 537 541 582 473 & Growth FY09 FY10 FY11 FY12 FY13 FY14 F
Slide 41: Productivity benefiting underlying expenses
Productivity benefiting underlying expenses Operating Expenses Cost-to-income For personal use only $m 43.8% 42.9% 42.2% Underlying 1H13 1H14 1H15 +3.0% +0.4% +3.4% 22 4,914 4,892 137 4,751 (140) 144 1H14 1H14 Productivity Staff Other 1H15 FX 1H15 1H15 costs underlying 41
Slide 42: Credit quality
Additional information Credit quality Commercial Portfolio Quality1 Loan Impairment Expense (Cash) to Gross Loans For personal use only TCE ($bn) bpts 2,3 Consumer 400 Other 300 BBB 200 19 18 A 17 17 16 100 AAA/AA 0 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 FY11 FY12 FY13 FY14 1H15 Group Consumer Arrears L
Slide 43: Sound credit quality
Sound credit quality Loan Impairment Expense (Cash) Home Loan Arrears For personal use only CBA Group 90+ days (basis points) 1 1.0% 2 Bankwest 73 RBS ASB 0.0% Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 3 41 Troublesome and Impaired Assets $bn 10.5 10.1 9.5 25 8.2 4.7 4.5 7.0 21 20 3 4.3 6.5 3.9 163
Slide 44: Provision coverage
Additional information Provision coverage Collective Provisions1 to Credit RWA2 Provisions for Impaired Assets3 to Impaired Assets4 For personal use only 1.60% 60.0% 1.40% 50.0% 1.20% 40.0% 1.00% 30.0% 0.80% 20.0% FY09 FY10 FY11 FY12 FY13 FY14 1H15 FY09 FY10 FY11 FY12 FY13 FY14 1H15 CBA Peer 1 Peer
Slide 45: Provisions
Provisions Individual Provisions Collective Provisions For personal use only $m $m 2,870 2,779 2,763 Overlay 875 762 790 Economic 1,416 overlay unchanged 1,127 1,116 377 347 306 547 Bankwest 389 357 149 906 941 942 128 128 Consumer 720 631 610 Commercial 712 729 725 Dec 13 Jun 14 Dec 14 Dec 13 Jun 1
Slide 46: RBS
Additional information RBS Retail Banking Services Home Loan Market Share 1 For personal use only Dec 14 vs $m Dec 14 Dec 13 28% Home loans 1,875 2% 26% 25.2% Consumer finance 1,219 6% 24% Retail deposits 1,365 17% 22% 23.2% Distribution 201 3% 20% Other 86 (15%) 18% Total banking income 4,746 7% 16
Slide 47: Retail Banking Services
Retail Banking Services Dec 14 vs Dec 13 Cost-to-Income Ratio For personal use only Segment Income Operating Performance 17% 36.1% (160bpts) 9% 6% 7% 34.5% 2% 2% Home Consumer Retail Income Costs Operating Dec 13 Dec 14 loans finance deposits performance RBS Margin Retail Deposit Mix bpts $bn Total
Slide 48: Corporate
Additional information Corporate Business & Private Banking Institutional Banking & Markets For personal use only Dec 14 vs Dec 14 vs $m Dec 14 $m Dec 14 Dec 13 Dec 13 Corporate Financial Services 644 8% Institutional Banking 1,033 3% Regional and Agribusiness 328 3% Markets 401 13% Local Business B
Slide 49: Corporate
Corporate BPB – Dec 14 vs Dec 13 IB&M – Dec 14 vs Dec 13 For personal use only Segment Income Operating Performance Segment Income Operating Performance 13% 10% 11% 9% 8% 6% 6% 6% 6% 5% 5% 3% 3% 3% CFS RAB LBB Private Comm Income Costs Operating Institutional Markets Markets Income Costs Operating B
Slide 50: Wealth Management
Additional Wealth Management 1 information Wealth Management Platform3 Net Flows For personal use only $bn Dec 14 vs $m Dec 14 Dec 13 2.1 2.0 1.9 CFSGAM 402 9% Colonial First State2 451 7% CommInsure 338 (3%) Dec 13 Jun 14 Dec 14 Total operating income 1,191 5% Operating expenses (783) 5% FUA Net Fl
Slide 51: Wealth Management
Wealth Management 1 Dec 14 vs Dec 13 FUA For personal use only Segment Income2 Operating Performance $bn +10% 9% 7% 270.3 5% 5% 5.2 253.5 1.5 15.3 245.0 3.3 3% CommInsure CFSGAM CFS Income2 Costs3 Operating Net Investment Net Investment Dec 13 Jun 14 Dec 14 performance flows returns flows returns Sp
Slide 52: Funding
Additional information Funding Australian Deposits Term Maturity Profile1 For personal use only $bn Total Deposits $bn (excl CD’s) Weighted Average Maturity 3.9yrs 394 343 279 8 191 233 2 7 179 175 129 2 6 203 24 22 24 164 14 104 104 14 13 CBA Peer 3 Peer 2 Peer 1 FY 2015 2016 2017 2018 2019 >2019 H
Slide 53: Funding and Liquidity
Funding and Liquidity Funding Liquidity1 For personal use only $bn $bn Source of funds Use of funds 151 137 140 128 115% LCR 63% $18bn Deposit 18 (17) 52 buffer 100% LCR Funded 53 4 70 CLF 57 36 20 (23) Reg min 30 $82bn 31 16 HQLA 70 assets3 (23) 63 54 40 7 2 2 Equity IFRS & FX Net short Customer Ne
Slide 54: Dividend per Share
Additional information Dividend per Share Payout For personal use only ratio (cash) 74.2% 75.0% 78.2% 73.9% 73.2% 75.8% 75.9% 75.1% 81% 90% 81% 70% 84% 70% 84% 71% 88% 87% 62% 62% 63% 63% 84% 74% 61% cents 107 149 113 153 113 115 120 170 132 188 137 197 164 200 183 218 198 FY07 FY08 FY09 FY10 FY11 F
Slide 55: Interim Dividend
Interim Dividend cents per share For personal use only 140% 198 +8% 183 120% 164 132 137 100% 113 120 107 113 80% 84% 71% 70% 70% 60% 61% 63% 63% 62% 62% 40% 20% 1H07 1H08 1H09 1H10 1H11 1H12 1H13 1H14 1H15 Cash NPAT Payout Ratio 0% 55
Slide 56: CBA CET1 under various regulatory regimes
Additional CBA CET1 under various regulatory regimes 1 information For personal use only +4.1% +2.6% +3.3% +3.6% 13.3% 2 13.3% 0.8%4 0.8%4 12.8% 12.5% 11.8% 8.0% 9.2% D-SIB buffer 1.0% CBA if regulated in Singapore CBA if regulated in Canada Internationally Comparable CBA if regulated in Europe CCB
Slide 57: Strong Capital Position
Strong Capital Position 1 For personal use only CET1 - APRA International 13.3% 9.3% (100) 131 (47) 19 (13) 9.2% 8.5% 8.0% 2 Dec 13 Jun 14 Jun 14 Cash Credit Credit Other Dec 14 APRA Dec 14 APRA APRA Final NPAT RWA RWA Min Dividend Volume Quality 2016 (DRP Neutral) (DRP Neutral) 1 The Group has revi
Slide 58: CBA vs peers in each jurisdiction
Additional information CBA vs peers in each jurisdiction Under UK regime Under European regime Under Canadian regime For personal use only % 13.7 13.3 12.5 11.8 12.0 11.7 10.8 11.1 10.8 10.2 10.4 10.4 10.4 10.3 10.1 9.8 9.7 9.6 9.9 9.4 UniCredit CBA RBS CBA UBS Deutsche BBVA CBA RBC Barclays Lloyds
Slide 59: International Peer Basel III CET1
International Peer Basel III CET1 % For personal use only 15.7 13.7 13.3 13.1 13.0 Peer bank average CET1 ratio 12.7 12.0 11.8 11.7 11.7 11.6 (ex. Australian banks): 11.4 11.1 11.1 10.8 10.8 10.8 10.7 10.7 10.5 10.5 10.4 10.4 10.4 10.4 10.4 10.3 10.8% 10.2 10.1 10.1 9.9 9.8 9.7 9.6 9.6 9.5 9.4 8.9 I
Slide 60: Result quality
Additional information Result quality 1 Group NIM ROE For personal use only 2.5 Cash basis % 18.6% 2.4 16.4% 15.3% 2.3 2.2 9.1% 2.1 2.0 1.9 1.8 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 Sep 14 Dec 14 CBA Peer 3 Peer 1 Peer 2 CBA Peers 2 Capitalised Software 2 Capital $m APRA CET1 2,533 9.2% 2,070 2,
Slide 61: Financial Summary
Financial Summary A strong result All divisions contributing For personal use only 1H15 vs 1H14 Operating Performance 1H15 +8% +9% +7% +6% 3,111 +6% +6% +3% +14% 1,127 959 +3% 408 515 680 $m Underlying Operating Cash 2 1 Operating Performance NPAT RBS BPB IB&M WM BWA NZ Income Productivity, efficien
Slide 62: Notes
For personal use only 62 Notes
Slide 63: Results Presentation – Ian Narev, CEO
RESULTS PRESENTATION FOR THE HALF YEAR ENDED 31 DECEMBER 2014 For personal use only IAN NAREV Results Presentation CHIEF EXECUTIVE OFFICER For the half year ended 31 December 2009 10 February Commonwealth Bank of Australia ACN 123 123 124 2010 COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124 | 11 FE
Slide 64: Economic Indicators
Additional information Economic Indicators Economic Summary – Australia For personal use only 2015 2016 2017 2011 2012 2013 2014 (f) (f) (f) Credit Growth % – Total 2.7 4.3 3.0 5.1 5-7 4½-6½ 4-6 Credit Growth % – Housing 6.0 5.0 4.6 6.4 6-7 5½-7½ 5-7 Credit Growth % – Business -2.2 4.4 0.9 3.5 4-6 3
Slide 65: Outlook
Outlook For personal use only On-going focus on long-term strategy to strengthen the franchise in an increasingly competitive environment Some signs of positive transition in Australian economy: reality ahead of sentiment But clear, long term policy needed to build confidence so as to sustain
Slide 66: Notes
For personal use only 66 Notes
Slide 67: Summary
Summary For personal use only Consistent strategy Ongoing growth Focus on the People ■ Strong earnings customer Cash NPAT +8% Driving service and EPS +8% Productivity efficiency benefits ROE 18.6% Customer value DPS +8% through world ■ All divisions contributing Technology class techno
Slide 68: Supplementary Slides
RESULTS PRESENTATION FOR THE HALF YEAR ENDED 31 DECEMBER 2014 For personal use only SUPPLEMENTARY SLIDES Overview, Customers & People 69 Results Presentation Technology & Innovation Strength – Capital, Funding & Risk 83 99 For the half year ended 31 December 2009 Business Performance 123 10 February
Slide 69: CBA overview
CBA overview Australia NZ Other Total For personal use only Customers 12.5m 2.2m 0.4m 15.1m Staff 41,900 5,600 5,000 52,500 Branches1 1,150 140 115 1,405 ATMs1 4,400 466 173 5,039 Market capitalisation (ASX) #1 Credit Ratings (S&P, Moodys, Fitch) AA- / Aa2 / AA- Basel III CET1 (International)
Slide 70: Broad contributor to Australian wellbeing
Broad contributor to Australian wellbeing Operating For personal use only Income Loan impairment 1H15 Expenses Including ~5,000 Cost of lending across SME partners the economy and suppliers $0.4bn $2.0bn Tax expense $1.7bn Australia’s 3rd largest tax payer, equivalent to Salaries $2.9bn $1.6bn 4% of
Slide 71: Creating jobs and opportunities
Creating jobs and opportunities Providing direct For personal use only Employing 1 in 10 people employment to ~42,000 working in the Australian people in Australia, financial services sector ~52,500 people globally Paid $2.2bn to ~5,000 Paid $2.9bn in wages suppliers in 1H15 – to Australian househol
Slide 72: Strength to support our community
Strength to support our community For personal use only We have reached our commitment to provide financial education to ‘One Million Kids’ $50m committed for financial education for next three years More than 250,000 students are active in our school banking program Our Indigenous Customer Assistan
Slide 73: Bank Profitability
Bank Profitability ROE1 CBA Ranking For personal use only % Indonesia (Amongst ASX 100 companies) China CBA Russia Rank2 Canada Australia Market capitalisation (ASX) 1st India Singapore Dividends declared 1st Japan South Korea Taxes Paid 3rd United States France United Kingdom Return-on-Equity (ROE)
Slide 74: Our stakeholders
Our stakeholders Customer Product Holdings1 For personal use only 14.6m Super fund unit holders ? 5.1m 11.0m 4.5m 2.2m 4.2m 1.6m 3.2m 830k 1.8m 700k 350k 1.0m ~800k 52k Home Loans Credit Cards Retail Savings Insurance Personal Loans Business Funds CommSec Shareholders Employees and Transactions Rela
Slide 75: Home Loan Growth Profile
Home Loan Growth Profile Home Loan Balances Channel Growth1 For personal use only $bn Broker Proprietary 14 (41) 40 10.9% (4) 7.5% 4.6% 302 310 3.7% New Redraw Repayments External 1 1 Jun 14 Dec 14 CBA Majors CBA Majors fundings & / Other refinance Excludes Bankwest interest Excludes Bankwest Austra
Slide 76: Customer Satisfaction
Customer Satisfaction Retail Customer Satisfaction1 Business Customer Satisfaction4 For personal use only 86% 8.0 CBA CBA 84% Peers Peers 82% 80% 78% 7.0 76% 74% 72% 70% 68% 6.0 Dec 07 Dec 14 Dec 11 Dec 14 % Satisfied ('Very Satisfied' or 'Fairly Satisfied')1 Customer Satisfaction - Average 1, 4 Ref
Slide 77: Business Customer Satisfaction
Business Customer Satisfaction 5 Micro Small For personal use only 7.8 7.8 7.6 7.6 7.4 7.4 7.2 7.2 7.0 7.0 6.8 6.8 6.6 6.6 6.4 6.4 6.2 6.2 Dec 11 Dec 12 Dec 13 Dec 14 Dec 11 Dec 12 Dec 13 Dec 14 CBA Peers CBA Peers Medium Large* 8.0 8.5 7.8 8.0 7.6 7.4 7.5 7.2 7.0 7.0 6.8 6.5 6.6 6.4 6.0 Dec 11 Dec
Slide 78: Sustainability Progress
Sustainability Progress In the first half of the financial year, the Board-endorsed sustainability framework with its five focus areas has continued to support the Group’s vision and the creation of enduring value for our customers, people, shareholders and the broader community. For personal use on
Slide 79: Sustainability Scorecard
Sustainability Scorecard Units 1H15 FY14 FY13 FY12 FY11 FY10 For personal use only % 83.2 83.2 83.0 79.0 75.2 75.6 Roy Morgan MFI Retail Customer Satisfaction1 Rank 2nd 1st 1st 2nd 4th 2nd Customer 7.5 7.4 7.4 7.3 7.1 7.0 Avg. score satisfaction DBM Business Financial Services Monitor2 Rank =1st =1s
Slide 80: Resources Exposure
Resources Exposure We recognise that we play a crucial role in enabling the economic and social development of Australia, supporting jobs, growth, innovation and opportunities for people and businesses. We also recognise our role in addressing the challenge of For personal use only climate change, i
Slide 81: Return on Equity
Return on Equity Cash ROE For personal use only 19.2% 600 18.6% 18.7% 18.8% 18.6% 550 18.1% 17.9% 500 Return on Assets 1.0% 450 1.1% 400 350 300 250 200 150 100 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 81
Slide 82: Customer needs met
Customer needs met 2 Products per Customer 2 Products per Customer #1 For personal use only Wealth Share of 3.04 3.00 Lending and Cards 7.86 product 2.90 Deposits 2.83 2.71 0.53 3.86 13.2% 0.51 2.55 0.48 0.49 2.36 0.49 2.20 0.48 0.21 0.20 3.00 0.20 1.77 57.6% 0.47 0.22 0.51 0.21 1.02 0.43 0.20 2.22
Slide 83: Australia's leading technology bank
Australia’s leading technology bank For personal use only #1 #1 #1 Free financial Most innovative Innovative app 1 bank 9 banking app 8 #1 #1 #1 Social Customer Customer & Satisfaction 11 – Satisfaction – 3 6 Facebook Internet Banking Apps 2 MFI for #1 5.3m In the youth 5 Active online 1 in 3 7 segm
Slide 84: Customer Satisfaction - Online
Customer Satisfaction - Online Customer Satisfaction - Website 4 For personal use only Customer Satisfaction – Internet Banking 6 97% Satisfaction with Internet Banking Services 95% via "Website" or "App“6 92.5% 93% 97% 91% 95% 89% 87% CBA Peers 93% 92.5% 85% Dec 13 Jun 14 Dec 14 91% Customer Satisf
Slide 85: Transaction volumes
Transaction volumes Branch ATMs For personal use only (deposits & withdrawals) m m (all transactions1) 130 325 278 72 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1H15 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1H15 x2 x2 2 3 EFTPOS Internet m (all transactions, inclu
Slide 86: Transaction volumes
Transaction volumes % of total transactions NetBank logins via mobile device For personal use only 1H15 Weekly 72% 3% Branch 36% 64% 12% ATM 58% 4% 64% EFTPOS 10% 41% 22% Internet 50% Volume Value Apr 12 Dec 12 Dec 13 Dec 14 86
Slide 87: Transaction volumes
Transaction volumes Intelligent Deposit Machines (IDMs) Accounts with e-statements For personal use only % of deposits completed via IDM in branches Transactions and Savings (% of total) that have had a machine for > 1 month 50% 46% 45% 45% 35% 40% 35% 30% Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 D
Slide 88: World leading technology
World leading technology For personal use only Putting the customer at the centre of everything we do Revitalised State-of-the- Innovation Securing the front-line art Core Culture digital future Single view of Legacy system Innovation Lab Simplicity and customer across replacement convenienc
Slide 89: Contactless Tap & Pay
Leading technology, innovative solutions Contactless Tap & Pay For personal use only Fast in-store payments $48 million+ in spend (12 mths) CBA market leading in cards 2.3 million+ transactions (12 mths) and terminals Average spend per transaction 33% of all credit transactions $21 89
Slide 90: Small Business App & Emmy
Leading technology, innovative solutions Small Business App & Emmy For personal use only Apr 14 Improved cash flow and reduced administration with on-the-spot payments and invoicing Provides customers more ways to pay, with BPAY™ included 1 Easily track and follow up estimates to win more busi
Slide 91: CommBiz Mobile and Daily IQ
Leading technology, innovative solutions CommBiz Mobile Daily IQ For personal use only Mar 13 Mar 14 400k logins since the launch Cash flow reporting Real time account balances and Customer and merchant insights transaction history Cash flow forecasting and a Create, view and authorise w
Slide 92: Online Origination
Online Origination Everyday Business Motor Insurance For personal use only 1 Dec 13 Jun 14 Jun 14 Account opening in Business transaction Consistent double digit <60 seconds1 and savings accounts growth in sales since opened online, real- online origination 5% of accounts opened launched in
Slide 93: ASB technology
Leading technology, innovative solutions ASB For personal use only ASB launches NZ’s first public banking API technology Mobile app registrations up 65%; satisfaction remains one of the highest in NZ at 84.6% 1 ASB Accept mPOS released allowing businesses to accept card payments via mobile dev
Slide 94: Branch of the future
Branch of the future For personal use only Video conferencing Dedicated small Tablets and software 1 1 facilities in all branches - business for branch concierges access to CBA specialists capability with to enhance customer ~ 35,000 referrals in 1H15 120 specialists flow Express branches in select
Slide 95: Accelerated change, more reliable systems
Accelerated change, more reliable systems For personal use only High impact system incidents 400 System changes per month 3,852 338 314 153 150 1,514 93 67 44 16 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 1H15 95
Slide 96: TYME Identity KYC Process
TYME Identity KYC Process For personal use only Capture Capture biometrics Verify against Submit to TYME information via / fingerprints external data back-office TYME Machine (if required) sources TYME back-office ensures quality and correctness Retrieve for Store applicant Notify relevant Applicant
Slide 97: Digital Banking Ecosystem
Digital Banking Ecosystem For personal use only TYME technology enables an ecosystem of partners to collectively deliver real-time banking services at ultra-low cost through a distribution network of proprietary and third party channels Mobile Network Banking Partner Operator Product Banking lic
Slide 98: Notes
For personal use only 98 Notes
Slide 99: RBS Home Loan Book Quality
RBS Home Loan Book Quality Sound For personal use only Portfolio dynamic LVR1 of 48% 73% of customers paying in advance of required monthly mortgage repayment 2 Maximum LVR of 95%3 for low risk customers Low Deposit Premium (LDP) available to low risk customers for higher LVR loans Lenders Mortgage
Slide 100: Home Lending Practices
Home Lending Practices For personal use only CBA lending practices are broadly consistent with APRA’s recent letter Overview on sound mortgage lending practices. RBS Dynamic High LVR proportions (LVR>80%) have reduced to 15%. Higher Risk Small increase in interest only loans this period as cus
Slide 101: RBS Home Loan Portfolio
RBS Home Loan Portfolio Dec 14 Jun 14 Dec 13 Dec 14 Jun 14 Dec 13 For personal use only Total Balances - Spot ($bn) 310 302 293 Total Funding ($bn)1 40 73 37 Total Balances - Average ($bn) 306 293 289 Average Funding Size ($’000)1 267 254 252 Total Accounts (m) 1.5 1.5 1.4 Serviceability Buffer (%)8
Slide 102: Consumer Arrears (Group)
Consumer Arrears (Group) Credit Cards 1 Personal Loans 1 For personal use only 90+ days 2.0% 90+ days 2.0% 1.0% 1.0% 0.0% 0.0% Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 RBS Bankwest ASB RBS Bankwest ASB Home Loans 1 RBS Home Loans 2.0% 90+ days 2.0% 90+ days
Slide 103: Consumer Arrears (RBS)
Consumer Arrears (RBS) Home Loans Home Loans by State For personal use only 3.0% 30+ days 30+ days 3.0% 2.5% 2.5% 2.0% 2.0% 1.5% 1.5% 1.0% 1.0% 0.5% 0.5% 0.0% 0.0% Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 09/10 10/11 11/12 12/13 13/14 NSW/ACT SA/N
Slide 104: RBS Home Loans – Stress Test
RBS Home Loans – Stress Test 1 Key Assumptions For personal use only Cash Rate Unemployment Hours under-employed Cumulative reduction (%) (%) (%) in house prices (%) (32) (32) 15.8 18.4 (15) 10.5 11.5 10.1 11.4 5.9 7.0 2.5 2.75 1.0 1.0 Base Yr 1 Yr 2 Yr 3 Base Yr 1 Yr 2 Yr 3 Base Yr 1 Yr 2 Yr 3 Base
Slide 105: RBS Home Loans – LVR & Arrears
RBS Home Loans – LVR & Arrears Home Loan Dynamic LVR1 Profile Home Loan Arrears Rates by Vintage For personal use only 90+ days Average 70% Dynamic 2.0% LVR1 Dec 13 49% 60% Jun 14 48% Proportion of Total Portfolio Dec 14 48% 1.5% 50% FY09 40% FY08 1.0% FY07 30% FY10 20% 0.5% FY11 FY12 10% FY13 FY14
Slide 106: Credit Exposures by Industry
Credit Exposures by Industry 1 For personal use only Dec 14 Dec 14 Jun 14 Jun 14 Consumer 54.2% 55.8% Agriculture 1.9% 2.0% Mining 1.9% 1.5% Manufacturing 1.6% 1.8% Energy 1.0% 1.0% Construction 0.9% 0.8% Retail & Wholesale 2.3% 2.2% Transport 1.5% 1.5% Banks 8.3% 9.0% Finance – other 4.5% 3.4% Busi
Slide 107: Sector Exposures
Sector Exposures Commercial Exposures by Industry 1,2 Top 20 Commercial Exposures2 For personal use only AAA A+ BBB+ $bn Other Total to AA- to A- to BBB- A+ 35.9 38.9 3.6 1.8 80.2 A- Banks A Finance Other 23.1 12.1 4.4 4.1 43.7 A- A Property 1.3 4.8 12.5 41.0 59.6 BBB+ BBB- Sovereign 74.9 9.8 0.6 0.
Slide 108: Commercial Property Market
Commercial Property Market CBD Office Supply Pipeline1 CBD Vacancy Rates For personal use only % of Total Stock 1991 Recession Jun 14 Dec 14 Peak 1990s Jun 14 Dec 14 40% 40% 35% 35% 30% 30% 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% Sydney Melbourne Brisbane Perth Adelaide Sydney Melbourne Brisbane
Slide 109: Interest Rate Risk in the Banking Book
Interest Rate Risk in the Banking Book For personal use only bpts 24 29 43 47 43 13 $1,303m $1,403m $1,181m $880m $781m $388m Optionality Optionality Risk Risk Basis Risk Basis Risk Repricing & Yield Repricing and Curve Risk Yield Curve Risk Embedded Gain (offset to capital) Jun 12 Dec 12 Jun 13 Dec
Slide 110: RWA & Capital Usage
RWA & Capital Usage Total Risk Weighted Assets Credit Risk Weighted Assets For personal use only $bn $bn Underlying movement (28bpts) 9.6 2.5 311.5 22.3 1.2 (9.9) 17.7 (6.7) 1.7 353.0 (0.7) 299.4 337.7 Corporates 6.9 289.1 Standardised 6.4 Retail 2.4 Banks/Sovereign 1.0 Securitisation 1.0 CET1 impac
Slide 111: Regulatory Exposure Mix
Regulatory Exposure Mix For personal use only Regulatory Credit Exposure Mix % CBA Peer 1 Peer 2 Peer 3 Residential Mortgages 56% 34% 41% 56% Corporate, SME & Specialised Lending 26% 34% 40% 30% Bank 5% 14% 8% 4% Sovereign 9% 10% 8% 6% Qualifying Revolving 3% 3% 1% 2% Other Retail 1% 5% 2% 2% Total
Slide 112: APRA & International Comparison
APRA & International Comparison The following table provides details on the differences, as at 31 December 2014, between the For personal use only APRA Basel III prudential requirements and capital as measured on an Internationally Comparable basis1. % CET1 Basel III (APRA) 9.2% Equity investments 1
Slide 113: APRA & International Comparison
APRA & International Comparison The APRA prudential requirements are more conservative than those of the Basel Committee on Banking For personal use only Supervision (BCBS), leading to lower capital ratios under APRA’s methodology: A deduction is required from CET1 for equity investments in financia
Slide 114: Colonial Group Debt
Colonial Group Debt For personal use only Capital benefit from Colonial Group Colonial Group debt will debt maturity profile % be phased out as existing debt matures 9.2 No immediate capital 1 Impact on CET1 impact and strong capital generation will mitigate impact in future periods Timing of
Slide 115: D-SIB and CCB Buffer
D-SIB and CCB Buffer For personal use only In December 2013, APRA announced % of earnings that the Australian major banks are able to be used for discretionary domestic systemically-important banks CET1 ratio Value payments (D-SIBs) Above top of PCR + 3.5%, 100% CCB and above From 1 January 2016
Slide 116: UK and US Balance Sheet Comparison
UK and US Balance Sheet Comparison 1,2 For personal use only United Kingdom USA Assets Liab + Equity Assets Liab + Equity Cash & equivalents 7% 7% Equity Cash & 11% Equity equivalents 13% Home Loans 21% Home Loans 12% 55% Deposits 56% Deposits Other Lending 38% Other Lending 43% 8% Long Term3 Other
Slide 117: Australian Banks – Safe Assets, Secure Funding
Australian Banks – Safe Assets, Secure Funding For personal use only Commonwealth Bank Balance Sheet Comparisons Assets – CBA has a safe, conservative asset profile: Assets Liab + Equity 52% of balance sheet is home loans, which are stable/long Cash & equivalents 4% Equity 6% term. Trading secur
Slide 118: Regulatory Expected Loss
Regulatory Expected Loss For personal use only $m Dec 14 Jun 14 Dec 13 Regulatory Expected Loss (EL)1 4,281 4,669 4,516 Eligible Provisions (EP) Collective Provisions2 2,613 2,614 2,722 Specific Provisions2,3 1,956 1,980 2,192 General Reserve for Credit Losses adjustment 321 305 283 less ineligible
Slide 119: Funding - Portfolio
Funding - Portfolio Funding Composition Wholesale Funding by Product For personal use only 1% Customer Deposits 4% 2% Structured MTN 5% 5% 9% 13% Vanilla MTN ST Wholesale Funding Commercial Paper 4% 1% LT Wholesale Funding maturing Debt Capital < 12 months 27% LT Wholesale Funding maturing 9% CDs 17
Slide 120: Funding – Issuance and Maturity
Funding – Issuance and Maturity 1 Funding strategy driven by market and investor diversity, appropriate maturity profile and overall cost For personal use only Term wholesale funding requirement has eased materially since FY 2010 $bn 60 50 9 Weighted Average Maturity 3.9yrs 40 7 Expected funding
Slide 121: Replicating Portfolio and Funding Costs
Replicating Portfolio and Funding Costs 2 Replicating Portfolio 1 Average Long Term Funding Costs For personal use only Actual and Forecast Scenario % Margin to BBSW Portfolio average cost 2.00 Indicative spot market cost Replicating Portfolio Yield Predicted 1.75 funding costs if current market rat
Slide 122: Funded Assets
Funded Assets For personal use only $bn Dec Jun $bn 14 14 Transactions 82 77 15 1 2 7 Savings 163 155 20 51 Equity Investments 198 193 Long term1 wholesale 145 (incl IFRS MTM & FX) Other 15 14 Total customer 458 439 deposits 776 783 129 Short term 738 wholesale Wholesale 274 250 funding Total fundin
Slide 123: CFSGAM – Global Reach
CFSGAM – Global Reach For personal use only Edinburgh London Frankfurt Paris New York Beijing Tokyo Dubai Hong Kong Shenzhen Singapore Australia and New Zealand AUM $110.9 billion1 Jakarta UK, Europe and Middle East AUM $56.7 billion Asia AUM $18.8 billion Sydney North America Melbourne Auckland AUM
Slide 124: RBS – Month Periods
RBS – 6 Month Periods $m Dec 14 vs Dec 14 vs Dec 14 Jun 14 Dec 13 For personal use only Jun 14 Dec 13 Net interest income Home loans 1,763 1,738 1,727 1% 2% Consumer finance 920 906 876 2% 5% Retail deposits 1,137 1,022 942 11% 21% Other 38 43 53 (12%) (28%) 3,858 3,709 3,598 4% 7% Other banking inc
Slide 125: Retail Banking Services
Retail Banking Services For personal use only $m Dec 14 Dec 14 vs Jun 14 Dec 14 vs Dec 13 Solid balance growth within Solid balance growth within competitive market. Home loans 1,875 2% 2% competitive market. Focus Seasonally higher new business on profitable growth volumes Solid balance gro
Slide 126: BPB – Month Periods
BPB – 6 Month Periods Dec 14 vs Dec 14 vs $m Dec 14 Jun 14 Dec 13 For personal use only Jun 14 Dec 13 Net interest income Corporate Financial Services 496 469 456 6% 9% Regional & Agribusiness 281 275 275 2% 2% Local Business Banking 435 416 415 5% 5% Private Bank 131 123 121 7% 8% CommSec 75 71 74
Slide 127: Business and Private Banking
Business and Private Banking $m Dec 14 Dec 14 vs Jun 14 Dec 14 vs Dec 13 For personal use only Solid Lending and Deposit Strong Lending and Deposit balance growth in addition to balance growth in addition to Corporate Financial Services 644 6% 8% increased Global Markets increased Global Markets
Slide 128: IB&M – Month Periods
IB&M – 6 Month Periods For personal use only Dec 14 vs Dec 14 vs $m Dec 14 Jun 14 Dec 13 Jun 14 Dec 13 Net interest income Institutional Banking 632 638 610 (1%) 4% Markets 78 75 81 4% (4%) 710 713 691 - 3% Other banking income Institutional Banking 401 388 394 3% 2% Markets 323 207 273 56% 18% 724
Slide 129: Institutional Banking and Markets
Institutional Banking and Markets For personal use only $m Dec 14 Dec 14 vs Jun 14 Dec 14 vs Dec 13 Growth in average lending Growth in average lending and average transaction and average transaction Institutional Banking 1,033 1% deposit balances, partly 3% deposit balances, partly offset by lo
Slide 130: WM – Month Periods
WM – 6 Month Periods 1 Dec 14 vs Dec 14 vs For personal use only Dec 14 Jun 14 Dec 13 Jun 14 Dec 13 Total operating income CFSGAM 402 371 368 8% 9% Colonial First State2 451 407 421 11% 7% CommInsure 338 357 350 (5%) (3%) 1,191 1,135 1,139 5% 5% Operating expenses CFSGAM (257) (241) (227) 7% 13% 2 C
Slide 131: Wealth Management
Wealth Management For personal use only 1 $m Dec 14 Dec 14 vs Jun 14 Dec 14 vs Dec 13 Average AUM 6%, Average AUM 10%, investment investment outperformance, CFSGAM 402 8% 9% outperformance and foreign foreign exchange benefits, exchange benefits stronger margins Strong investment 2 Strong investme
Slide 132: NZ – Month Periods
NZ – 6 Month Periods Dec 14 vs Dec 14 vs For personal use only NZ$m Dec 14 Jun 14 Dec 13 Jun 14 Dec 13 Net interest income ASB 827 755 743 10% 11% Other 4 14 5 (71%) (20%) Total NII 831 769 748 8% 11% Other banking income ASB 169 160 177 6% (5%) Other (16) (15) (15) 7% 7% Total OBI 153 145 162 6% (6
Slide 133: New Zealand
New Zealand For personal use only NZ$m Dec 14 Dec 14 vs Jun 14 Dec 14 vs Dec 13 Lending 5% and retail Lending 3% and retail deposits 9% (spot) deposits 6% (spot) ASB Operating Income 1,032 9% 9% Strong business and rural Continued favourable growth and favourable funding conditions f
Slide 134: Bankwest – Month Periods
Bankwest – 6 Month Periods For personal use only Dec 14 vs Dec 14 vs $m Dec 14 Jun 14 Dec 13 Jun 14 Dec 13 Net interest income 803 773 804 4% - Other banking income 109 103 103 6% 6% Total banking income 912 876 907 4% 1% Operating expenses (397) (401) (405) (1%) (2%) Loan impairment expense 26 (6)
Slide 135: Bankwest
Bankwest For personal use only $m Dec 14 Dec 14 vs Jun 14 Dec 14 vs Dec 13 Continued growth in average interest earning Balance growth across assets most product lines Banking income 912 4% Improvement in Net 1% Lower net interest Interest Margin due to margin improved investment deposit mar
Slide 136: CBA in Asia
CBA in Asia Cash NPAT1 For personal use only $m Solid revenue growth offset by Growth in Lending, Leasing and Trade Profit in line with prior cost of strategic initiatives and Finance businesses, combined with the comparative period footprint expansion benefit of a weaker Australian dollar. 201 5 20
Slide 137: IFS Asia – Continued growth despite economic slowdown
IFS Asia – Continued growth despite economic slowdown NPAT and Revenue (A$m)1 Proprietary Customers2 For personal use only A$m A$m 200 80 '000 Cash NPAT CAGR - 20% 500 70 Revenue CAGR - 15% 450 150 60 400 50 350 300 100 40 250 30 200 150 50 20 100 10 50 - - - Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-1
Slide 138: CBA in Asia
CBA in Asia Japan For personal use only ♦ Tokyo CBA branch, First State Investments China ♦ Bank of Hangzhou (20%): 159 branches ♦ Qilu Bank (20%): 102 branches ♦ County Banking - Henan: 7 Banks and 4 branches (5 Banks and 4 branches @ 80% and 2 Banks @ 100% shareholding) - Hebei: 8 Banks (5 Banks @
Slide 139: Australian economy – growth transition
Australian economy – growth transition For personal use only Growth drivers from Key resource exports Labour market indicators mining peak LABOUR MARKET INDICATORS GROWTH DRIVERS FROM MINING PEAK KEY RESOURCE EXPORTS '000 % (cumulative contribution to GDP since end 2012) Mt Mt 1000 100 45 7.0 % 6 %
Slide 140: Growth transition – Infrastructure & business investment
Growth transition – Infrastructure & business investment Infrastructure spend Business finances For personal use only INFRASTRUCTURE SPEND NON-FINANCIAL BUSINESS $bn % $bn (State & Federal) FINANCES 60 900 70 Thousands States Projections 700 63 40 Business Credit (lhs) 500 55 Business Bank 20 Deposi
Slide 141: Growth transition – the role of the consumer
Growth transition – the role of the consumer For personal use only Unemployment Households: Greatest fear Saving ratio Expectations & Wages HOUSEHOLDS: GREATEST FEAR EXPECTATIONS & WAGES % SAVING RATIO % % % %pa (% of respondents) % 20 20 30 30 5.0 -20 Unable to pay *Source: Melbourne Institute mort
Slide 142: Growth transition – housing construction
Growth transition – housing construction Dwelling commencements CBA Dwelling starts forecast For personal use only DWELLING COMMENCEMENTS '000 '000 Calendar year Dwelling starts Thousands Thousands Boosted by government 190 stimulus 190 package 2012 151k CBA (f) 170 170 2013 168k 2014e 198k 150 150
Slide 143: Housing market dynamics
Housing market dynamics Population growth is solid in Australia High population growth increased For personal use only because of a high migration program demand for housing POPULATION DRIVERS CBA: HOUSING DEMAND & SUPPLY '000 '000 '000 '000 200 200 450 450 Supply Net migration 100 100 300 300 Deman
Slide 144: Housing market dynamics
Housing market dynamics State population growth Dwelling price growth For personal use only STATE POPULATION GROWTH 3 Years 12 mths 6 mths '000 (annual change) '000 to to to 100 100 change (%) Dec 14 Dec 14 Dec 14 Vic 75 Qld 75 Sydney 30.6 12.4 6.5 Melbourne 13.4 7.6 4.5 50 50 WA Brisbane 9.2 4.8 2.
Slide 145: Housing market dynamics
Housing market dynamics Are investors a problem? Rental yields For personal use only RENTAL YIELDS HOUSING LOAN APPROVALS % (2 bedroom "other" dwelling) % $bn $bn 9 9 12 Investor 12 Term deposit CBA TEI & THE CASH RATE special rate %pa %pa 7.0 8 9 9 6 6 O-Occupier Cash (ex refin & FHB) rate 6.4 (lhs
Slide 146: Housing market dynamics
Housing market dynamics First time buyers Housing debt For personal use only FIRST TIME BUYERS HOUSING DEBT RATIOS % (% buying an investment property) % % % 24 24 160 40 Source: Mortgage Choice First Time Housing debt Investor Survey 140 to disposable income, (lhs) 35 120 30 16 16 100 25 Housing deb
Slide 147: Factors that typically characterise a house price bubble are not evident
Factors that typically characterise a house price bubble are not evident in Australia Housing “Bubble” – For personal use only Current position in Australia typical characteristics Unsustainable asset prices Prices supported by the excess of demand over supply Australia’s population continues to
Slide 148: New Zealand Economic Summary
New Zealand Economic Summary – New Zealand For personal use only 2015 2016 2017 2010 2011 2012 2013 2014 (f) (f) (f) Credit growth (annual – June 3½- 3½- 3½- 0.7 1.5 3.2 3.9 4.2 vs June) 5½ 5½ 5½ 2½- Household credit 2.5 1.2 1.8 5.1 5.2 3-5 3-5 4½ 3½- Business credit -7.6 1.2 3.9 1.8 3.2 5-7 5-7 5½
Slide 149: Customer Satisfaction - Sources
Customer Satisfaction - Sources 1 Roy Morgan Research Retail Main Financial Institution (MFI) Customer Satisfaction. Australian population 14+, % “Very Satisfied” or “Fairly For personal use only Satisfied” with relationship with that MFI. 6 month rolling average to December 2014. Peers includes ANZ
Slide 150: Technology - Sources
Technology - Sources 1 CommBank app on iOS and Android in Australia. Sources are the Apple App Store and the Google Play Store. For personal use only 2 Roy Morgan Research. Australian population 14+. Proportion of customers who conducted internet banking via an app with their Main Financial Institut
Slide 151: Productivity Metrics - Definitions
Productivity Metrics - Definitions For personal use only Measure Metric Timeframe Average number of transactions completed per week Teller transactions per CSR 1H15 v 1H13 in branch by Retail Customer Service Representatives Percentage of personal loans funded on day of Personal loans funded same da
Slide 152: Sustainability Scorecard – Sources and Definitions
Sustainability Scorecard – Sources and Definitions Complete definitions for scorecard metrics are available at www.commbank.com.au/sustainability2014 For personal use only All metrics capture data from Australian domestic operations only (excluding Bankwest), unless otherwise stated. 1 Proportion of
Slide 153: CO2e Emissions Method – Project Finance Energy Sector
CO2e Emissions Method – Project Finance Energy Sector The financed emissions analysis was conducted by EY, CBA’s Sustainability Consultant, following the principles set out in the GHG Protocol’s Corporate Value Chain (Scope For personal use only 3) Accounting and Reporting Standard. This approach dr
Slide 154: Results Presentation – Closing
RESULTS PRESENTATION FOR THE HALF YEAR ENDED 31 DECEMBER 2014 For personal use only IAN NAREV DAVID CRAIG Results Presentation CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER For the half year ended 31 December 2009 10 February Commonwealth Bank of Australia ACN 123 123 124 2010 COMMONWEALTH BANK OF
Commonwealth Bank of Australia — H1 FY2015 Earnings Presentation on 6ix