Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — FY2014 Earnings Presentation
19 slides from Commonwealth Bank Of Australia's earnings presentation, Aug 13, 2014
Slide 1: Full Year Ended 30 June 2014
FOR THE FULL YEAR ENDED 30 JUNE 2014 For personal use only IAN NAREV CHIEF EXECUTIVE OFFICER COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124 | 13 AUGUST 2014
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, 13 August 2014. It is information given in summary form and does not purport to be complete. It is not intended t
Slide 3: Overview
Overview For personal use only Consistent strategic focus driving growth: – Engaged people committed to customer service – Productivity driving service, efficiency and reinvestment – Leading technology creating innovative solutions – Strength – being there for our customers Continuing NPAT, ROE,
Slide 4: Strong contributor to Australian economy
Strong contributor to Australian economy Operating Income For personal use only FY14 Loan impairment Expenses Cost of lending across Serving ~15 million the economy customers $1.0bn $4.0bn Tax expense $3.2bn Australia’s 3rd largest Salaries tax payer, equivalent to Employing ~42,000 $5.5bn $2.0bn 4%
Slide 5: Creating jobs and opportunities
Creating jobs and opportunities Providing direct Accounting for 1 in 10 For personal use only employment to ~42,000 people working in the people in Australia, Australian financial ~52,000 people globally services sector Paid $4bn to ~6,000 Paid $4bn in wages suppliers in FY14 – to Australian househo
Slide 6: Continuing growth
Continuing growth For personal use only Jun 14 vs Jun 14 Jun 13 Statutory Profit ($m) 8,631 13% Cash NPAT ($m) 8,680 12% ROE – Cash (%) 18.7 50 bpts Cash Earnings per Share ($) 5.36 11% Dividend per Share ($) 4.01 10% 6
Slide 7: All divisions contributing
All divisions contributing Cash NPAT FY14 For personal use only Markets (ex-CVA) 17% Income 2% Income 9% Avg Lending 9% Expenses 3% C:I lower - now 36.0% Deposit NIM lower Business loans 12% +12% 3,472 Business loans 4% 3 Avg FUA 19% Lending 5% Costs 2% Avg Inforce
Slide 8: Volume growth continues
Volume growth continues 1 Home Lending Household Deposits Business Lending For personal use only Balance Growth Balance Growth Balance Growth 9.1% 9.0% 3.9% 4.2% 6.2% 6.7% 3.5% System CBA System CBA System BPB IB&M Business Deposits Credit Cards ASB Balance Growth Balance Growth Business & Rural Bal
Slide 9: Consistent strategy
Consistent strategy For personal use only People and Engaged people committed to Culture customer service Improved efficiency enabling better service Productivity and reinvestment Technology Leading technology, innovative solutions Supporting our customers - strong balance Strength sheet, capital an
Slide 10: Long term focus on customers
Long term focus on customers For personal use only Area Measure CBA Rank Retail Roy Morgan Research 1 1st 4 Business DBM =1st Wealth Wealth Insights 6 1st IFS MRI – Foreign Banks 7 1st (PT Bank Commonwealth) 1, 4, 6, 7 Refer notes slide at back of this presentation for source information 10
Slide 11: Further significant upside
Further significant upside 3 MFI share3 CBA MFI share by age For personal use only % Overall 33.1% 32.8 33.1 45% 42% Opportunity 41% gap 20.1 20.2 MFI Share 13.6 13.5 11.1 11.4 29% 29% 27% Jun Jun Jun Jun Jun Jun Jun Jun 13 14 13 14 13 14 13 14 14-17 18-24 25-34 35-49 50-64 65+ CBA Peer 3 Peer 1 Pee
Slide 12: Productivity culture
Productivity culture For personal use only Local efficiency rather than offshoring Productivity Savings 94% of staff trained in ($m) Capability productivity habits 280 Certification of key staff 220 Qualifications in Lean and Six Sigma Visual Management Team Focus Boards bringing process impro
Slide 13: Service, efficiency, reinvestment
Service, efficiency, reinvestment Service Improvements - Examples 1 Case Study – Asset Finance For personal use only Turnaround Times Approval Volumes Volume per 23% HomeSeeker time FTE Home Asset Finance loan Insurance Credit conditional (66%) +64% +188% Claims Approval approval (14%) (66%) (75%) J
Slide 14: Leading technology, innovative solutions
Leading technology, innovative solutions For personal use only Digital NetBank for Better Lock & Kaching for property Everyday mobile Business Android Insights FaceBook settlement origination Limit Mar 2013 in PEXA Dec 2013 May 2014 Feb 2011 Nov 2012 Jun 2013 Video New CommSec CommBank Cardless Prop
Slide 15: Rate of innovation increasing for consumers
Rate of innovation increasing for consumers For personal use only Lock & Limit (May 14) Cardless Cash (May 14) 1 ■ Block or limit transactions ■ Withdraw up to $200 a day ■ Real time, 24/7 ■ Via CommBank app ■ Via CommBank app ■ Over 3,300 ATMs nationally 1 ■ 40,000 enrolments to date ■ 140k withdra
Slide 16: Rate of innovation increasing for businesses
Rate of innovation increasing for businesses For personal use only Small Business App + Emmy (Apr 14) Daily IQ (Mar 14) 1 All-in-one small business payment solution iPad app for CommBiz customers On-the-spot payments, instant invoicing and more Business insights, cash flow reporting, industr
Slide 17: Strength to support our customers
Strength to support our customers Deposit Funding Wholesale Funding Tenor For personal use only % of Total Funding Years Portfolio Tenor1 63% 64% 3.8 3.8 62% 3.7 Jun 12 Jun 13 Jun 14 Jun 12 Jun 13 Jun 14 Liquids 2 Capital Liquids ($bn) Common Equity Tier 1 (Basel III International) 3 139 137 11.0% 1
Slide 18: Outlook
Outlook For personal use only Domestically: – Strong foundations, but confidence remains fragile – Lower interest rates a positive for housing/construction, offsetting reduced investment in resource sector – Increased production from investments in resource sector Recent relative stability in gl
Slide 19: Full Year Ended 30 June 2014
FOR THE FULL YEAR ENDED 30 JUNE 2014 For personal use only IAN NAREV CHIEF EXECUTIVE OFFICER COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124 | 13 AUGUST 2014
Commonwealth Bank of Australia — FY2014 Earnings Presentation on 6ix