Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — FY2015 Earnings Presentation
191 slides from Commonwealth Bank Of Australia's earnings presentation, Aug 12, 2015
Slide 1: Results Presentation for the Full Year Ended 30 June 2015
RESULTS PRESENTATION Not for distribution or release in the United States FOR THE FULL YEAR ENDED 30 JUNE 2015 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 Au
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, 12 August 2015. It is information given in summary form and does not purport to be complete. It is not intended t
Slide 3: Our Vision and Values
Our Vision and Values For personal use only Our Vision Our Values Integrity To excel at securing and Collaboration enhancing the financial Excellence wellbeing of people, Accountability businesses and communities Service 3
Slide 4: Consistent strategy execution
Additional information Consistent strategy execution 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 FY15
Additional Snapshot FY15 1 information Financial Operating Performance 2 2 For personal use only Cash earnings ($m) 9,137 5% Group ($m) 13,375 6% ROE (Cash) 18.2% (50) bpts Retail Banking Services ($m) 6,144 5% Cash EPS ($) 5.61 5% Business and Private Banking ($m) 2,239 6% DPS ($) 4.20 5% Instituti
Slide 7: Continuing growth
Continuing growth For personal use only Jun 15 vs Jun 15 Jun 14 Statutory Profit ($m) 9,063 5% Cash NPAT ($m) 9,137 5% ROE – Cash (%) 18.2 (50) bpts Cash Earnings per Share ($) 5.61 5% Dividend per Share ($) 4.20 5% 7
Slide 8: Business Unit Summary
Additional information Business Unit Summary FY15 vs FY14 For personal use only % of Cost-to- Business Operating Operating Cash Group Costs LIE Income Unit 1 NPAT Income Performance NPAT Jun 15 RBS 42% 5% 4% 5% 8% 5% 35% BPB 16% 5% 4% 6% (36%) 10% 38% IB&M 14% 6% 7% 5% large 1% 36% 2 Wealth 7% 3% 13
Slide 9: All divisions contributing
All divisions contributing 1 Cash NPAT FY15 For personal use only Income 5% C:I 30 bpts to 34.9% Income 5% Transaction Deposits 24% + 5% Business loans 5% C:I 190 bpts to 43.3% Home loans 2% NIM lower 3,867 Income 2 7% Lending 8% C:I 160 bpts to 38.9% 5 Marke
Slide 10: Notes
For personal use only 10 Notes
Slide 11: Continued focus on the customer
Continued focus on the customer For personal use only Area CBA Ranking Retail 1 1st Business – Micro5 =1st Business – Small =1st 5 Business – Medium 5 =1st Business – Large 5 =1st Wealth 6 2nd IFS 7 1st Internet Banking 9 1st 1, 5, 6, 7, 9 Refer notes slide at back of this presentation for source in
Slide 12: Market Share
Additional Market Share 1 information % Jun 15 Dec 14 Jun 14 For personal use only Home loans 25.1 25.1 25.3 Credit cards – RBA2 24.5 25.1 24.7 Other household lending3 19.8 20.2 20.3 Household deposits4 29.5 29.1 29.0 Business lending – RBA 17.2 17.1 17.7 Business lending - APRA 18.9 18.6 18.8 Busi
Slide 13: 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 Not participating in zero segments – broker and balance transfer market investment lending 11.6% 8.1% 9.5% 7.4% 6.6% 2.0% 1.2% Sys
Slide 14: MFI by Age
Additional information MFI by Age MFI by Age – Mvt Jun 15 vs Jun 143 For personal use only 2.00% 14-17 18-24 25-34 1.50% 35-49 50-64 65+ 1.00% 0.50% 0.00% -0.50% -1.00% -1.50% CBA Peer 3 Peer 1 Peer 2 3 Refer notes slide at back of this presentation for source information 14
Slide 15: MFI share
MFI share 3 MFI share CBA MFI share by age 3 For personal use only % Overall 34.2% 46.3% 34.2 41.9% 33.1 44.9% Key Drivers 42.0% Customer Satisfaction 42.2% Transaction Banking 40.6% Technology & Innovation 20.2 19.4 MFI Share 30.1% 29.7% 28.2% 13.5 13.5 11.4 11.6 29.2% 28.6% 27.0% Jun 15 Jun 14 Jun
Slide 16: Leading technology, innovative solutions
Additional information Leading technology, innovative solutions For personal use only CommBank Better Video Essential Cardless Innovation app for Business conferencing Emmy Super Cash Lab launch smart Insights in branches Apr 2014 Jul 2013 May 2014 Oct 2014 watches Nov 2012 Jun 2013 Jun 2015 New Com
Slide 17: Continuous Innovation
Continuous Innovation 2011 2013 2015 For personal use only “Albert” Eftpos tablet NetBank for mobile MyWealth; Kaching for Facebook; CommBiz Android; Everyday mobile; Union Pay; Video Conferencing in Apps for Tablets & Smartwatches settlement branches; Essential Super; CommBiz Markets Portfoli
Slide 18: Key Technology Metrics
Additional information Key Technology Metrics Cardless Cash Lock, Block & Limit Temporary Lock1 For personal use only Total number of transactions Number of accounts enrolled Number of accounts enrolled 363K 2.7m 215K 57K 1.2m 16K 0.1m 26K Jun 14 Dec 14 Jun 15 Jun 14 Dec 14 Jun 15 Jun 14 Dec 14 Jun
Slide 19: Innovating in Transaction Banking
Innovating in Transaction Banking Transaction Accounts Continuous Innovation For personal use only Balance Growth FY15 • Cardless Cash 38% • Tap & Pay • Intelligent Deposit Machines • Real Time Alerts • Foreign Current Accounts 25% 24% Easy Account Opening • Real time online origination in 16% less
Slide 20: Notes
For personal use only 20 Notes
Slide 21: Innovating in Transaction Banking
Innovating in Transaction Banking Foreign Currency Accounts Real time alerts For personal use only ~50k accounts 1 ($3.2bn) Nov 14 Jul 15 Leveraging Core - originate & Leveraging Core - real time alerts transact in real-time across devices for business transaction account customers Integrated
Slide 22: Notes
For personal use only 22 Notes
Slide 23: Innovating for Business
Innovating for Business “Albert” For personal use only CBA First • Global first-to-market EFTPOS tablet Mar Mar 15 15 • Transforming the way merchants interact with their customers • Tailored customer experience, portable, secure, user-friendly • Over 3,000 devices in market across 2,500 merchants •
Slide 24: Notes
For personal use only 24 Notes
Slide 25: Innovating Internationally
Innovating Internationally International Financial Services For personal use only Indonesia – new core, mobile, internet & funds platforms, data warehouse New mobile apps in Indonesia and Vietnam (Cashflow, Workflow, BizLoan etc) Partnership with FinTech Innovation Lab in Hong Kong TYME – op
Slide 26: Productivity metrics
Additional information Productivity metrics 3 Customer Service Personal Loans Asset Finance For personal use only Telling transactions per CSR per week % funded same day Credit approval time (minutes) +13% +12% (71%) +5% +7% (22%) 1 Jun 13 Jun 14 Jun 15 Jun 13 Jun 14 Jun 15 Jun 13 Jun 14 Jun 15 Home
Slide 27: Productivity
Productivity Cultural Change Embedded Group Cost-to-Income For personal use only Productivity >95% of staff trained saving $260m Leadership focused Six 43.6% Training & Sigma training 42.9% 42.8% Leadership Visual Management Boards FY13 FY14 FY15 $760m in benefits over Banking Cost-to-Income
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 63% 64% 63% 3.8 3.8 3.8 Jun 13 Jun 14 Jun 15 Jun 13 Jun 14 Jun 15 Liquidity22 Capital Basel III Common Equity Tier 1 LCR 116% 120% 12.7% 139 136 132 9.3% 9.1% 2
Slide 30: Notes
For personal use only 30 Notes
Slide 31: Results Presentation – David Craig, CFO
RESULTS PRESENTATION FOR THE FULL YEAR ENDED 30 JUNE 2015 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 | 12 AUGU
Slide 32: Non-cash items
Additional information Non-cash items For personal use only $m Jun 15 Jun 14 Hedging and IFRS volatility Unrealised accounting gains and losses arising from 6 6 the application of “AASB 139 Financial Instruments: Recognition and Measurement” Other Bankwest non-cash items (52) (56) Treasury sha
Slide 33: Cash Profit up 5%
Cash Profit up 5% For personal use only Jun 15 vs $m Jun 15 Jun 14 Jun 14 Operating income 23,368 22,166 5% Operating expenses (9,993) (9,499) 5% Operating performance 13,375 12,667 6% Investment experience 210 235 (11%) Loan impairment expense (988) (953) 4% Tax and non-controlling interests (3,460
Slide 34: Other Banking Income
Additional information Other Banking Income Other Banking Income Net Trading Income For personal use only $m $m 4,156 4,323 4,839 241 281 443 420 508 414 513 492 558 188 26 30 250 1,005 227 922 52 863 44 189 163 158 124 87 1,083 1,050 120 1,053 321 320 334 267 289 293 280 2,130 2,226 251 1,990 (43)
Slide 35: Operating Income
Operating Income $m +5% For personal use only (underlying1 +6%) Funds & Insurance (underlying1 +4%) Property non-recurring ($137m) 2,730 Underlying1 FUA 14% 2,752 (1%) Insurance claims (weather events) ($108m) 4,323 +12% 4,839 Other Banking Income (OBI) FVA ($81m) CVA $40m Trading (ex FVA/CV
Slide 36: Group NIM
Additional information Group NIM For personal use only bpts 12 Month Movement 214 (8) 4 (2) 6 (1) (4) 209 204 ex Treasury Group NIM 1bpt ex Treasury & Markets 203 & Markets FY14 Asset Funding Basis Portfolio Other Treasury FY15 pricing costs risk mix and Markets 36
Slide 37: Underlying Group NIM down 3bpts
Underlying Group NIM down 3bpts 1 bpts Group NIM (Six Months) For personal use only bpts 214 209 6 Month Movement 204 204 204 201 Dec 13 Jun 14 Dec 14 Jun 15 12 month NIM 212 (1) (1) (2) 1 (2) 207 204 ex Treasury Group NIM 3bpts ex Treasury & Markets 201 & Markets 1H1514 Dec Asset Basis Portfolio
Slide 38: Notes
For personal use only 38 Notes
Slide 39: Operating Expenses
Operating Expenses $m Underlying For personal use only 2H15: (0.6%) +5.2% Underlying 9,993 (151) +2.9% 347 (63) 9,779 185 Compliance: • Additional risk 9,499 investment (260) 222 Programs: • Advice Reviews • Cyber security Regulation: • AML FY14 FY14 Productivity Staff Other Compliance, FY15 Non-rec
Slide 40: World class technology & operations
Additional information World class technology & operations 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 cust
Slide 41: Continuing to invest
Continuing to invest Investment Spend Investment Spend For personal use only % of total $m 1,286 1,237 1,246 1,179 1,182 Core Branches 16% 11% 12% 1,036 Banking & Other 639 12% 655 651 24% Risk & 638 593 30% Compliance 563 19% 65% Productivity 647 53% 58% & Growth 541 582 589 595 473 FY10 FY11 FY12
Slide 42: Credit quality
Additional information Credit quality Commercial Portfolio Quality1 Loan Impairment Expense (Cash) to Gross Loans For personal use only TCE ($bn) bpts Consumer2,3 400 Other 300 19 18 18 BBB 17 17 200 A 100 AAA/AA 0 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 FY11 FY12 FY13 FY14 FY15 Home Loan Arrears4 Loan I
Slide 43: Sound credit quality
Sound credit quality Loan Impairment Expense (Cash) Group Consumer Arrears For personal use only CBA Group 90+ days (basis points) 1 1.34% 1.23% 1.20% 2 73 1.05% 1.02% 1.01% 0.52% 0.62% 0.50% Personal Loans Credit Cards Home Loans4 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 3 41 Troublesome and Impaired Ass
Slide 44: Provision coverage
Additional information Provision coverage Collective Provisions1 to Credit RWA2 For personal use only CBA Peer 1 1.5% Peer 2 Peer 3 1.0% 0.5% FY09 FY10 FY11 FY12 FY13 FY14 FY15 Total Provisions1 to Credit RWA2 2.5% CBA Peer 1 Peer 2 Peer 3 2.0% 1.5% 1.0% FY09 FY10 FY11 FY12 FY13 FY14 FY15 Charts bas
Slide 45: Provisions
Provisions Individual Provisions Collective Provisions For personal use only $m $m 2,858 2,779 2,762 1,628 Overlay 823 Economic 762 755 overlay portion 659 increased 1,127 419 347 264 Bankwest 887 157 389 267 941 981 128 Consumer 909 128 812 610 492 Commercial 729 762 707 Jun 13 Jun 14 Jun 15 Jun 13
Slide 46: RBS
Additional information RBS Retail Banking Services Home Loan Market Share For personal use only CBA Peer 1 FY15 vs $m FY15 Peer 2 Peer 3 FY14 28% Home loans 3,676 0% 26% 25.1% Consumer finance 2,456 6% 24% Retail deposits 2,749 14% 22.9% 22% Distribution 395 1% 20% Other 161 (14%) 18% Total banking
Slide 47: Retail Banking Services
Retail Banking Services FY15 vs FY14 Cost-to-Income Ratio For personal use only Segment Income Operating Performance (170 bpts) 14% 36.6% 6% 5% 35.2% 34.9% 5% 4% 0% Home Consumer Retail Income Costs Operating loans finance deposits performance Jun 13 Jun 14 Jun 15 Jun 13 has been restated to conform
Slide 48: Corporate
Additional information Corporate Business & Private Banking Institutional Banking & Markets For personal use only FY15 vs FY15 vs $m FY15 $m FY15 FY14 FY14 Corporate Financial Services 1,278 7% Institutional Banking 2,107 4% Regional and Agribusiness 647 2% Markets 712 12% Local Business Banking 1,0
Slide 49: Corporate
Corporate BPB – FY15 vs FY14 IB&M – FY15 vs FY14 For personal use only Segment Income Operating Performance Segment Income Operating Performance 17% 10% 9% 12% 7% 7% 6% 6% 5% 5% 4% 3% 4% 2% CFS RAB LBB Private Comm Income Costs Operating Institutional Markets Markets Income Costs Operating Bank Sec
Slide 50: Wealth Management
Additional information Wealth Management1 Wealth Management Annual Inforce Premiums For personal use only $m FY15 vs +7% $m FY15 FY14 129 36 (7) CFSGAM 847 15% 2,467 2,309 Colonial First State (CFS)2 866 5% CommInsure (CI) 636 (10%) Jun 14 Retail Wholesale General Jun 15 Life Life Insurance Spot Tot
Slide 51: Wealth Management
Wealth Management 1 FY15 vs FY14 FUA4 For personal use only Segment Income2 $bn Operating Performance +12% 15% 27.1 3.1 13% 284 253 5% 3% Operating CI performance CFSGAM CFS Income2 Costs3 Jun 14 Net flows Investment Jun 15 returns and FX (10%) (17%) Spot General Insurance Claims CFSGAM Funds Perfor
Slide 52: Funding
Additional information Funding Australian Deposits Term Maturity Profile1 For personal use only $bn Total Deposits $bn Weighted Average Maturity 3.8yrs (excl CD’s) 35 Billions 411 30 342 25 Other 288 20 deposits 200 231 15 10 Household 211 5 deposits CBA Peer 3 Peer 2 Peer 1 FY2016 2017 2018 2019 20
Slide 53: Funding and Liquidity
Funding and Liquidity Funding Liquidity Coverage Ratio1 For personal use only $bn $bn Source of funds Use of funds 116% 120% LCR 63% 139 136 132 Deposit 31 (32) Funded 52 70 66 CLF2 39 (38) 31 HQLA 16 66 66 Assets2,3 (35) 56 2 15 4 Equity IFRS & FX Net short Customer New long Long term Lending Other
Slide 54: Dividend per Share
Additional information Dividend per Share Payout ratio (cash) For personal use only 75.0% 78.2% 73.9% 73.2% 75.8% 75.9% 75.1% 75.1% 81% 81% 90% 81% 70% 84% 70% 84% 71% 87% 62% 62% 63% 63% 84% 74% cents 113 153 113 115 120 170 132 188 137 197 164 200 183 218 198 222 FY08 FY09 FY10 FY11 FY12 FY13 FY14
Slide 55: Dividend
Dividend cents per share For personal use only 140% 420 +5% 401 364 120% 334 320 100% 290 266 228 80% 75.0% 78.2% 75.8% 75.9% 75.1% 75.1% 73.9% 73.2% 60% 40% 20% FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Cash NPAT Payout Ratio 0% 55
Slide 56: Notes
For personal use only 56 Notes
Slide 57: Strong Capital Position
Strong Capital Position bpts CET1 For personal use only 12.7% 9.3% 122 (17) (43) 9.2% (72) 9.1% 8.0% June 14 Dec 14 Dec 14 Cash Credit RWA Other 1 Jun 15 APRA Jun 15 2 APRA APRA Interim NPAT underlying APRA Min International Dividend 2016 (Net of DRP) 1 Primarily relates to increases in IRRBB RWA an
Slide 58: APRA & International Comparison
Additional information APRA & International Comparison The APRA Basel III capital requirements are more conservative than those of the Basel Committee on For personal use only Banking Supervision (BCBS), leading to lower reported capital ratios. In July 2015, APRA published a study that compared the
Slide 59: APRA & International Comparison
APRA & International Comparison The following table provides details on the differences, as at 30 June 2015, between the APRA For personal use only Basel III capital requirements and internationally comparable capital ratios 1. It also provides details on the differences from the PricewaterhouseCoop
Slide 60: Notes
For personal use only 60 Notes
Slide 61: Strong Capital – International Basis
Strong Capital – International Basis For personal use only In July 2015, APRA published a study 15.4% 15.3% that compared the major banks’ 13.9% 1.1% Tier 2 capital ratios against a set of 2.3% 0.1% 0.7% 1.6% Tier 1 international peers 0.6% Aust. CBA’s internationally comparable major bank ratio
Slide 62: Notes
For personal use only 62 Notes
Slide 63: Entitlement Offer
Not for distribution or release in the United States For personal use only Entitlement Offer 12 August 2015
Slide 64: Mortgage Risk Weights
Not for distribution or release in the United States Additional information Mortgage Risk Weights Impact of changes to risk-weighting of For personal use only Australian residential mortgages In July 2015, APRA announced an increase in the capital requirements under the Internal Ratings Based appr
Slide 65: Entitlement Offer Overview
Not for distribution or release in the United States Entitlement Offer Overview Pro-forma CET1 For personal use only Entitlement offer of ordinary CBA shares to all shareholders - fully 14.3% underwritten to raise $5bn More than satisfies higher mortgage risk weight requirements 1.35% 10.4% intr
Slide 66: Important Notices
Not for distribution or release in the United States Additional information Important Notices Status of New Shares Investments in New Shares are not deposit liabilities or protected accounts of CBA under the Banking Act and are not guaranteed or insured by any For personal use only Australian govern
Slide 67: International Peer Basel III CET1
Not for distribution or release in the United States International Peer Basel III CET1 16.0 APRA top quartile 12.4%1 For personal use only 14.4 14.3 13.7 13.5 13.0 12.7 12.3 12.2 12.1 12.0 G-SIBs in dark grey 11.7 11.7 11.7 11.6 11.4 11.3 11.2 11.0 10.9 10.8 10.6 10.6 10.6 10.6 10.5 10.4 10.4 10.4 1
Slide 68: Important Notices
Not for distribution or release in the United States Additional information Important Notices Forward-looking statements (cont) To the maximum extent permitted by law, CBA disclaims any responsibility for the accuracy or completeness of any forward-looking statements. CBA For personal use only will
Slide 69: Entitlement Offer Structure & Terms
Not for distribution or release in the United States Entitlement Offer Structure & Terms Key Metrics For personal use only ♦ Eligible shareholders entitled to buy 1 new ordinary share in CBA (New Share) for every 23 FY15 Reported Pro-forma CBA shares they hold (1:23) ROE (Cash) 18.2% 16.8% ♦ New Sha
Slide 70: Notes
For personal use only 70 Notes
Slide 71: Key Dates
Not for distribution or release in the United States Key Dates Timetable Date For personal use only Announcement of the entitlement offer Ordinary Shares purchased on or after this date will not be eligible for the Wednesday, 12 August 2015 entitlement offer Wednesday, 12 August 2015 – Institutional
Slide 72: Notes
For personal use only 72 Notes
Slide 73: Results Presentation – Ian Narev, CEO
RESULTS PRESENTATION FOR THE FULL YEAR ENDED 30 JUNE 2015 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 | 12 AUGUST
Slide 74: Economic Indicators
Additional information Economic Indicators 2011 2012 2013 2014 2015 2016 2017 For personal use only World GDP 4.2 3.4 3.4 3.4 3.5 3.7 3.2 Australia Credit Growth % – Total 2.7 4.4 3.0 5.1 6.2 4¾-6¾ 4¼-6¼ Credit Growth % – Housing 6.0 5.0 4.6 6.5 7.4 6-8 5-7 Credit Growth % – Business -2.2 4.4 0.9 3.
Slide 75: Outlook
Outlook For personal use only Result shows good economic foundations in savings, credit growth and credit quality, though near-term global risks remain Need for businesses and all sides of politics to work together towards diversified, sustainable growth Continued investment for CBA in same lo
Slide 76: Result quality
Additional information Result quality 1 Group NIM ROE For personal use only 2.4 Cash basis % 17.8% 2.3 CBA Peers 2.2 15.8% 2.1 14.7% 14.7% 2.0 1.9 CBA Peer 3 Peer 1 Peer 2 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 Sep 14 Mar 15 Jun 15 CBA ROE for 2H15 Capitalised Software 2 Capital 3 $m APRA CET1 2,689 10.
Slide 77: Summary
Summary For personal use only Consistent strategy execution Ongoing growth Focus on the People ■ Solid earnings customer Cash NPAT +5% Driving service and EPS +5% Productivity efficiency benefits DPS +5% Customer value ROE 18.2% through world ■ All divisions contributing Technology cla
Slide 78: Supplementary Slides
RESULTS PRESENTATION FOR THE FULL YEAR ENDED 30 JUNE 2015 For personal use only SUPPLEMENTARY SLIDES Overview, Customers & People 79 Results Presentation Technology & Innovation Strength – Capital, Funding & Risk 95 109 For the half year ended 31 December 2009 Business Performance 157 10 February Co
Slide 79: CBA Overview
CBA Overview People, Customers & Delivery Market Shares For personal use only Australia NZ Other Total MFI 3 1st Customers 12.6m 2.2m 0.5m 15.3m Home Lending 11 1st Staff 42,300 5,700 4,500 52,500 Household Deposits 12 1st Branches 1,147 136 116 1,399 FirstChoice 5 1st ATMs 4,440 460 172 5,072 Custo
Slide 80: Broad contributor to Australian wellbeing
Broad contributor to Australian wellbeing Operating For personal use only Income Loan impairment FY15 Expenses Including ~6,100 Cost of lending across SME partners the economy and suppliers $4.2bn $1.0bn Tax expense Australia’s 2nd largest $3.4bn tax payer, equivalent to Salaries $5.8bn 4% of all co
Slide 81: Creating jobs and opportunities
Creating jobs and opportunities Providing direct Employing over 1 in 10 For personal use only employment to ~42,300 people working in the people in Australia, Australian financial ~52,500 people globally services sector Paid over $4bn to ~6,100 Paid $4.8bn in wages suppliers in FY15 – to Australian
Slide 82: Our People
Our People Employee Engagement Index Score4 Women in Executive Manager and above roles6 For personal use only % % 35% 80% 80% 81% 81% 33% 31% 30% 26% 28% FY12 FY13 FY14 FY15 FY10 FY11 FY12 FY13 FY14 FY15 Lost Time Injury Frequency Rate7 Employee Turnover – Voluntary5 Rate % 2.7 2.8 2.4 1.9 12.7% 12.
Slide 83: Our Stakeholders
Our Stakeholders Customer Product Holdings1 For personal use only 15.0m Super fund unit holders ? 5.2m 11.2m 4.6m 2.2m 4.2m 1.7m 3.3m 850k 1.8m 700k >300k 1.1m ~800k 52,500 Home Loans Credit Cards Retail Savings Insurance Personal Loans Business Funds CommSec Shareholders Employees and Transactions
Slide 84: Customer Satisfaction and MFI share
Additional Customer Satisfaction and MFI share information Retail Customer Customer Needs MFI For personal use only 1 Satisfaction1 Met2 Share3 CBA #1 CBA #1 CBA #1 84.2% 3.05 34.2% Jun 07 Jun 15 Jun 08 Jun 15 Jun 12 Jun 15 1, 2, 3 Refer notes slide at back of this presentation for source informatio
Slide 85: Customer Satisfaction and MFI share
Customer Satisfaction and MFI share Retail Customer Customer Needs CBA MFI For personal use only 1 Satisfaction Met2 Share3 Internet customers highly Internet customers hold Internet customers 5 have satisfied more products higher MFI share % # % 93.7 5 36.4 4.15 34.2 5 84.2 3.05 #1 #1 #1 5 6 7 CBA
Slide 86: 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 Jun 07 Jun 15 Jun 12 Jun 15 % Satisfied ('Very Satisfied' or 'Fairly Satisfied')1 Customer Satisfaction - Average 1, 4 Ref
Slide 87: 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 6.0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 12 Jun 13 Jun 14 Jun 15 CBA Peers CBA Peers Medium Large1 8.0 8.2 8.0 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
Slide 88: Corporate Responsibility
Corporate Responsibility For personal use only FY15 Highlights Recognition In the 2015 financial year the Group was named the industry mover on the Dow Jones Sustainability World Index (DJSI) and received a bronze class distinction for sustainability performance. The G100 is the global index of the
Slide 89: Corporate Responsibility
Corporate Responsibility The Group’s new 2016-2018 Corporate Responsibility (CR) strategy launched in FY15. The CR strategy is the Group’s roadmap to secure and enhance the financial wellbeing of the communities in which we operate, through the Way We Do Business and Our Role in Society. For persona
Slide 90: Sustainability Scorecard
Sustainability Scorecard Units FY15 FY14 FY13 FY12 FY11 FY10 For personal use only Customer satisfaction % 84.2 83.2 83.0 79.0 75.2 75.6 Roy Morgan MFI Retail Customer Satisfaction1 Rank 1st 1st 1st 2nd 4th 2nd Avg. score 7.5 7.4 7.4 7.3 7.1 7.0 DBM Business Financial Services Monitor2 Rank =1st =1s
Slide 91: Resources Exposure
Resources Exposure Resources Industries June 2015 Assessed Carbon Emissions – Business Lending For personal use only Commercial Exposure1 Assessed carbon emissions arising from the Group’s business lending exposure to the energy sector, per the Group’s ESG reporting commitments. Data is % of reporte
Slide 92: Customer needs met
Customer needs met2 CBA leads peers in the number of products customers hold For personal use only CBA: 3.05 3.00 Peer 3: 3.00 Peer 1: 2.88 2.80 2.60 Peer 2: 2.59 2.40 2.20 2.00 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 2 Refer notes slide at back of this presentation for source inform
Slide 93: Customer needs met
Customer needs met2 By Age2 Internet Banking2 For personal use only Age Band Products per Customer 4.15 14 – 17 1.52 3.23 3.05 18 – 24 2.65 2.24 25 – 34 3.18 35 – 49 3.38 50 – 64 3.25 65+ 2.50 Overall Non-Internet Mobile App Website and Users Only Users Mobile App Total 18+ 3.05 Users Share of Produ
Slide 94: Delivering consistent returns
Delivering consistent returns Cash ROE For personal use only CBA Ranking1 Market Return Return Dividend Taxes Cap on on declared Paid (ASX) Equity Assets 1st 1st 2nd 27th 73rd 19.5% 600 18.7% 18.7% 18.4% 18.2% 18.2% 500 1.1% 1.0% 400 Return on 300 Assets 200 100 - 2010 2011 2012 2013 2014 2015 1 Mos
Slide 95: Australia's leading technology bank
Australia’s leading technology bank For personal use only #1 #1 #1 Free financial Most Innovative 9 app1 innovative bank banking app8 #1 #1 #1 Social Customer Customer & satisfaction 11 – satisfaction – 3 6 Facebook Internet banking 6 apps 2 MFI for #1 5.16m In the youth 5 Active online10 1 in 3 7 s
Slide 96: 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% 93.7% via "Website" or "App“6 93% 97% 91% 95% 89% CBA Peer 1 93.7% 87% Peer 2 Peer 3 93% 85% Jun 14 Dec 14 Jun 15 91%
Slide 97: 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 ~ 69,000 referrals in FY15 165 specialists flow Over 400 Intelligent Deposi
Slide 98: Continuous innovation
Continuous innovation Tap & Pay Touch ID Apps for Smartwatches For personal use only Now on Android CommBank and CommSec Use your iPhone or Android Sign in to CommBank apps – account balances, for MasterCard PayPass app with your fingerprint ATM locator, transactions, purchases in store 1 live share
Slide 99: Wealth Management innovation
Wealth Management innovation Portfolio View For personal use only Integrated banking & wealth experience CBA and non-CBA holdings - holistic view of assets & liabilities Free property estimates, live pricing of share portfolio etc Single sign-on in NetBank into CommSec and MyWealth 99
Slide 100: Continuous innovation
Continuous innovation Mobile Wallet For personal use only Jul 15 Taking consumers one step closer to a day when a physical wallet will not be needed. • New functionality on CommBank app enables customers to store all their loyalty cards in the CommBank app • New CommBank Offers app provides tailored
Slide 101: ASB – innovative solutions
ASB – innovative solutions Equal 1st Mobile app satisfaction at For personal use only 87%1 1st to market with Card Control in mobile app: allowing customers to control several features including temporary lock, change limits and turn off online and/or international in- store purchases 1st to m
Slide 102: Self service acceleration
Self service acceleration NetBank: Branch Self Service Mini-Statements For personal use only Enhanced Search & Support Hub Kiosks May 15 Nov 14 Mar 15 Single entry point to help and More than 100k self-service support within NetBank 25% reduction in branch effort interactions in-branch every f
Slide 103: Self service acceleration
Self service acceleration 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 month1 54% 60% 52% 50% 35% 40% Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 De
Slide 104: Transaction volumes
Transaction volumes Branch ATM For personal use only m (deposits & withdrawals) m (all transactions1) 130 325 270 68 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 EFTPOS2 Internet3 m (all transactions, including cred
Slide 105: Transaction volumes
Transaction volumes Number % Value % For personal use only Percentage of total transactions by number Percentage of total transactions by $ value 62% 64% 51% 47% 39% 35% 21% 22% 13% 11% 10% 10% 4% 3% 4% 4% Jun 14 Jun 15 Jun 14 Jun 15 Jun 14 Jun 15 Jun 14 Jun 15 Jun 14 Jun 15 Jun 14 Jun 15 Jun 14 Jun
Slide 106: Growing mobile
Growing mobile % of NetBank logins via mobile device % of Online Sales via mobile device1 For personal use only Weekly 72% 35% 30% 62% 24% 51% 43% 2 Jun 12 Jun 13 Jun 14 Jun 15 Jun 14 Dec 14 Jun 15 1 RBS Products included: Savings & Transaction accounts (QNA), Credit Cards (exc. limit increases), Ca
Slide 107: Growing online sales
Growing online sales Personal loans1 Transactions QNA1, 2 For personal use only % of Sales Online % of Sales Online 12% 22% 19% 10% 17% 8% Jun 14 Dec 14 Jun 15 Jun 14 Dec 14 Jun 15 Business transactions QNA1 Credit cards1 % of Sales Online % of Sales Online 39% 6% 33% 31% 2% Jun 14 Dec 14 Jun 15 Jun
Slide 108: Accelerated change, more reliable systems
Accelerated change, more reliable systems For personal use only High impact system incidents 400 System changes per month 3,863 338 314 153 150 1,514 93 67 44 41 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 108
Slide 109: Group Consumer Arrears
Group Consumer Arrears Consumer Portfolios1 Home Loans5 For personal use only 90+ days Personal Loans 90+ days Bankwest 2.0% 2.0% Credit Cards RBS Home Loans5 ASB 1.5% 1.0% 1.0% 0.5% 0.0% 0.0% Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Credit Cards2,4 Personal Loans2,3,4 9
Slide 110: RBS Home Loan Portfolio
RBS Home Loan Portfolio Jun Dec Jun Jun Dec Jun For personal use only Portfolio1 New Business1 14 14 15 14 14 15 Total Balances - Spot ($bn) 302 310 321 Total Funding ($bn) 73 40 80 Total Balances - Average ($bn) 293 306 311 Average Funding Size ($’000) 254 267 274 Total Accounts (m) 1.5 1.5 1.5 Ser
Slide 111: Australian Home Loan Portfolio
Australian Home Loan Portfolio1 Jun Dec Jun Jun Dec Jun Portfolio1 New Business1 For personal use only 14 14 15 14 14 15 Total Balances - Spot ($bn) 360 370 383 Total Funding ($bn) 87 46 94 Total Balances - Average ($bn) 349 365 371 Average Funding Size ($’000) 256 269 274 Total Accounts (m) 1.7 1.7
Slide 112: Australian Home Loan Portfolio
Australian Home Loan Portfolio1 Portfolio losses low at < 2bpts For personal use only 77% of customers paying in advance2 by 27 months on average, including offset facilities Mortgage offset balances up 40% in FY15 to $22 billion Overview Regular stress testing undertaken to identify areas of sensit
Slide 113: Australian Home Loans
Australian Home Loans1 Australian Home Loan Balances State Profile2 For personal use only $bn FY15 Balance Growth % of Portfolio 32 (91) 94 18% 32% (12) 26% 18% 6% 360 383 7.6% 7.2% 6.9% 6.0% 6.2% Jun 14 New Redraw Repayments External Jun 15 fundings & / Other refinance interest NSW/ACT SA/NT QLD VI
Slide 114: Australian Investment Home Loans
Australian Investment Home Loans1 Overview Modest balance growth For personal use only FY15 Balance Growth2 Investment Home Loans Modest balance growth – sub-system, sub- peers and <10% 11.4% 11.5% Arrears lower than overall portfolio 9.7% Strong borrower profile – skewed to higher income band
Slide 115: RBS Home Loan Growth Profile
RBS Home Loan Growth Profile Home Loan Balances Broker Growth Profile2 For personal use only $bn 29 (81) 80 10.8% (9) 7.7% 302 321 Jun 14 New Redraw Repayments External Jun 15 fundings & / Other refinance CBA Majors interest Home Loan Dynamic LVR1 Profile Home Loan Arrears Rates by Vintage3 70% Aver
Slide 116: RBS Consumer Arrears
RBS Consumer Arrears Home Loans Home Loans by State For personal use only 30+ days FY11 FY12 30+ days WA NSW/ACT 3.0% 3.0% FY13 FY14 SA/NT QLD 2.5% FY15 2.5% VIC/TAS National 2.0% 2.0% 1.5% 1.5% 1.0% 1.0% 0.5% 0.5% 0.0% 0.0% Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jun 12 Dec 12 Jun 13 De
Slide 117: RBS Home Loans – Stress Test
RBS Home Loans – Stress Test 1 Key Assumptions For personal use only 3 Cash Rate Unemployment Hours under-employed Cumulative reduction (%) (%) (%) in house prices (%) (32) (32) 18.4 15.8 (15) 10.5 11.5 10.9 11.4 6.1 7.0 2.50 2.75 1.00 1.00 0 Base Yr 1 Yr 2 Yr 3 Base Yr 1 Yr 2 Yr 3 Base Yr 1 Yr 2 Yr
Slide 118: Credit Exposures by Industry
Credit Exposures by Industry 1 For personal use only Jun 14 Jun 14 Jun 15 Jun 15 Consumer 55.8% 54.2% Agriculture 2.0% 1.8% Mining 1.5% 1.9% Manufacturing 1.8% 1.7% Energy 1.0% 0.9% Construction 0.8% 0.9% Retail & Wholesale 2.2% 2.3% Transport 1.5% 1.5% Banks 9.0% 8.6% Finance – other 3.4% 4.6% Busi
Slide 119: Sector Exposures
Sector Exposures Commercial Exposures by Industry 1,2 Top 20 Commercial Exposures2 For personal use only A+ AA- AAA to to BBB+ to TCE $bn1 AA- A- BBB- Other Jun 15 A- BBB+ Banks 36.7 42.4 4.7 1.9 85.7 AA- Finance Other 22.8 13.9 5.5 3.1 45.3 BBB+ AA Property 1.7 5.8 13.3 41.7 62.5 A- A Sovereign 72.
Slide 120: Commercial Property Exposure
Commercial Property Exposure Overview Group Sector Profile For personal use only % of Group TCE1 % of Portfolio graded troublesome or impaired 6.4 6.2 8% Other Commercial 23% 17% REIT Retail 13% Office 1.2 16% 0.8 Residential 23% Industrial Jun 14 Jun 15 FY14 Jun 14 Jun 15 FY15 Australian Exposure b
Slide 121: 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 27 $1,303m $1,403m $1,181m $880m $868m $781m $388m Optionality Optionality Risk Risk Basis Risk Basis Risk Repricing & Yield Repricing & Yield Curve Risk Curve Risk Embedded Gain (offset to capital) Embedded Gain (of
Slide 122: Regulatory Exposure Mix
Regulatory Exposure Mix For personal use only Regulatory Credit Exposure Mix Portfolio CBA Peer 1 Peer 2 Peer 3 Residential Mortgages 56% 35% 40% 56% Corporate, SME & Specialised Lending 26% 33% 39% 31% Bank 6% 13% 10% 3% Sovereign 8% 12% 9% 6% Qualifying Revolving 3% 2% 1% 2% Other Retail 1% 5% 1%
Slide 123: Funding – Portfolio
Funding – Portfolio Funding Composition Wholesale Funding by Product For personal use only Customer Deposits 63% Vanilla MTN 26% ST Wholesale Funding Commercial Paper 14% 18% Certificates of deposit 14% LT Wholesale Funding ≥ 12 months 9% FI Deposits 14% LT Wholesale Funding ≤ 12 months 4% Covered B
Slide 124: 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 Annual term wholesale funding issuance requirement currently in a range between $25 - $35bn $bn 45 Weighted average maturity 3.8years 40
Slide 125: Funded Assets
Funded Assets For personal use only $bn Jun Jun $bn 15 14 Transactions 91 77 (1) 15 39 16 4 Savings 176 155 53 Equity Investments 195 193 Long term1 144 wholesale (incl IFRS Other 16 14 MTM & FX) Total customer 478 439 deposits 796 811 136 Short term 738 wholesale Wholesale 280 250 funding Total fun
Slide 126: 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 LT 1.75 funding costs if current market
Slide 127: Colonial Group Debt
Colonial Group Debt For personal use only Capital benefit from Colonial Group Colonial Group phased 9.1% debt maturity profile out as existing debt matures First tranche matured 1 Impact on CET1 April 2015 $350m. Remaining debt to mature across FY17 and FY18. Timing of APRA Level 3 capital ref
Slide 128: D-SIB and CCB
D-SIB and CCB 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, D-SIB
Slide 129: Regulatory Expected Loss
Regulatory Expected Loss For personal use only $m Jun 15 Dec 14 Jun 14 Regulatory Expected Loss (EL) 4,083 4,281 4,669 Eligible Provisions (EP) Collective Provisions1 2,599 2,613 2,614 Specific Provisions1,2 1,656 1,956 1,980 General Reserve for Credit Losses adjustment 346 321 305 less ineligible p
Slide 130: 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 & 8% 8% Cash & equivalents Equity 14% 11% Equity equivalents Home Loans 17% Home Loans 12% 57% Deposits Deposits 57% 43% Other Lending 37% Other Lending 7% Long Term3 Other
Slide 131: 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 51% of balance sheet is home loans, which are stable/long Cash & equivalents 4% 6% term. Equity Trading secur
Slide 132: RWA & Capital Usage
RWA & Capital Usage Total Risk Weighted Assets Credit Risk Weighted Assets For personal use only $bn $bn 368.7 Underlying movement: (17) bpts 2.2 6.0 1.3 (0.7) 1.5 (1.0) 318.7 319.2 6.6 7.6 (0.1) 311.5 353.0 CET1 impact bpts (19) - (15) (5) CET1 impact bpts (16) (3) 2 (17) (4) 2 (19) Dec 14 Credit R
Slide 133: Entitlement Offer
Not for distribution or release in the United States For personal use only Entitlement Offer 12 August 2015
Slide 134: Appendix A – Risks of participating in the Entitlement Offer
Not for distribution or release in the United States Appendix A – Risks of participating in the Entitlement Offer and of Ordinary Shares Risks associated with CBA’s businesses which may affect Ordinary Shares For personal use only CBA may be adversely affected by a downturn in the Australian economy
Slide 135: Appendix A – Risks of participating in the Entitlement Offer
Not for distribution or release in the United States Appendix A – Risks of participating in the Entitlement Offer and of Ordinary Shares CBA is subject to extensive regulation which may adversely affect its performance or financial position CBA and its businesses are subject to extensive regulation
Slide 136: Appendix A – Risks of participating in the Entitlement Offer
Not for distribution or release in the United States Appendix A – Risks of participating in the Entitlement Offer and of Ordinary Shares CBA may incur losses associated with customer, counterparty and supplier exposures CBA lends to both retail and non-retail customers. Customers may default on thei
Slide 137: Appendix A – Risks of participating in the Entitlement Offer
Not for distribution or release in the United States Appendix A – Risks of participating in the Entitlement Offer and of Ordinary Shares CBA is subject to operational risks and may incur losses CBA’s businesses are highly dependent on their ability to process and monitor a very large number of trans
Slide 138: Appendix A – Risks of participating in the Entitlement Offer
Not for distribution or release in the United States Appendix A – Risks of participating in the Entitlement Offer and of Ordinary Shares CBA may be adversely affected by harm to its reputation CBA manages risks relating to legal and regulatory requirements, sales, trading and advisory practices, pot
Slide 139: Appendix A – Risks of participating in the Entitlement Offer
Not for distribution or release in the United States Appendix A – Risks of participating in the Entitlement Offer and of Ordinary Shares CBA may be adversely affected by catastrophic events CBA conducts business in many locations in many jurisdictions. If a catastrophic event (including fire, storm,
Slide 140: Appendix A – Risks of participating in the Entitlement Offer
Not for distribution or release in the United States Appendix A – Risks of participating in the Entitlement Offer and of Ordinary Shares Risks associated with participating in the Entitlement Offer For personal use only Risk of doing nothing If you do not exercise your Entitlements, then your Entitl
Slide 141: Appendix A – Risks of participating in the Entitlement Offer
Not for distribution or release in the United States Appendix A – Risks of participating in the Entitlement Offer and of Ordinary Shares Risks associated with Ordinary Shares specifically For personal use only The market price of Ordinary Shares will fluctuate Ordinary Shares trade on ASX. The marke
Slide 142: Appendix A – Risks of participating in the Entitlement Offer
Not for distribution or release in the United States Appendix A – Risks of participating in the Entitlement Offer and of Ordinary Shares CBA may raise more debt and issue other securities CBA has the right in its absolute discretion to issue additional Ordinary Shares, debt or other securities, whic
Slide 143: Appendix A – Risks of participating in the Entitlement Offer
Not for distribution or release in the United States Appendix A – Risks of participating in the Entitlement Offer and of Ordinary Shares Shareholders may be subject to Foreign Account Tax Compliance Act (“FATCA”) withholding and information reporting In order to comply with FATCA, it is possible tha
Slide 144: Appendix B – Entitlement Offer selling restrictions
Not for distribution or release in the United States Appendix B – Entitlement Offer selling restrictions This presentation does not constitute an offer of entitlements ("Entitlements") or new ordinary shares ("New Shares") of the Group in any jurisdiction in which it would be unlawful. In particular
Slide 145: Appendix B – Entitlement Offer selling restrictions
Not for distribution or release in the United States Appendix B – Entitlement Offer selling restrictions Statutory rights of action for damages and rescission For personal use only Securities legislation in certain of the Provinces may provide purchasers with, in addition to any other rights they ma
Slide 146: Appendix B – Entitlement Offer selling restrictions
Not for distribution or release in the United States Appendix B – Entitlement Offer selling restrictions Certain Canadian income tax considerations. Prospective purchasers of the Entitlements and the New Shares should consult their own tax adviser with respect to any taxes payable in connection with
Slide 147: Appendix B – Entitlement Offer selling restrictions
Not for distribution or release in the United States Appendix B – Entitlement Offer selling restrictions European Economic Area – Austria, Belgium, Denmark, Germany and Netherlands For personal use only The information in this presentation has been prepared on the basis that all offers of Entitlemen
Slide 148: Appendix B – Entitlement Offer selling restrictions
Not for distribution or release in the United States Appendix B – Entitlement Offer selling restrictions Pursuant to Article 211-3 of the General Regulation of the AMF, investors in France are informed that the Entitlements and the New Shares cannot be distributed (directly or indirectly) to the pub
Slide 149: Appendix B – Entitlement Offer selling restrictions
Not for distribution or release in the United States Appendix B – Entitlement Offer selling restrictions Italy For personal use only The offering of the Entitlements and the New Shares in the Republic of Italy has not been authorized by the Italian Securities and Exchange Commission (Commissione Naz
Slide 150: Appendix B – Entitlement Offer selling restrictions
Not for distribution or release in the United States Appendix B – Entitlement Offer selling restrictions Japan For personal use only The Entitlements and the New Shares have not been and will not be registered under Article 4, paragraph 1 of the Financial Instruments and Exchange Law of Japan (Law N
Slide 151: Appendix B – Entitlement Offer selling restrictions
Not for distribution or release in the United States Appendix B – Entitlement Offer selling restrictions New Zealand For personal use only This presentation has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (the "FMC
Slide 152: Appendix B – Entitlement Offer selling restrictions
Not for distribution or release in the United States Appendix B – Entitlement Offer selling restrictions Singapore For personal use only This presentation and any other materials relating to the Entitlements and the New Shares have not been, and will not be, lodged or registered as a prospectus in S
Slide 153: Appendix B – Entitlement Offer selling restrictions
Not for distribution or release in the United States Appendix B – Entitlement Offer selling restrictions Switzerland For personal use only The Entitlements and the New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exc
Slide 154: Appendix B – Entitlement Offer selling restrictions
Not for distribution or release in the United States Appendix B – Entitlement Offer selling restrictions United Kingdom For personal use only Neither the information in this presentation nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority i
Slide 155: Appendix B – Entitlement Offer selling restrictions
Not for distribution or release in the United States Appendix B – Entitlement Offer selling restrictions Not an offer For personal use only This presentation is for information purposes only and is not a prospectus, product disclosure statement or other disclosure or offering document under Australi
Slide 156: Notes
For personal use only 156 Notes
Slide 157: Business Unit Cash NPAT
Business Unit Cash NPAT Retail Banking Services Business & Private Banking Institutional Banking & Markets For personal use only $m $m $m Growth +5% Growth +10% Growth +1% 3,867 3,678 3,337 1,459 1,321 1,268 1,224 1,252 1,188 Jun 13 Jun 14 Jun 15 Jun 13 Jun 14 Jun 15 Jun 13 Jun 14 Jun 15 Wealth Mana
Slide 158: RBS – Month Periods
RBS – 6 Month Periods $m Jun 15 vs Jun 15 vs Jun 15 Dec 14 Jun 14 For personal use only Dec 14 Jun 14 Net interest income Home loans 1,699 1,763 1,738 (4%) (2%) Consumer finance 950 920 906 3% 5% Retail deposits 1,152 1,137 1,022 1% 13% Other 32 38 43 (16%) (26%) 3,833 3,858 3,709 (1%) 3% Other bank
Slide 159: Retail Banking Services
Retail Banking Services $m FY15 FY15 vs FY14 2H15 2H15 vs 1H15 For personal use only Balance growth broadly in line Growing contribution from broker with system Home loans 3,676 - Reduction in margins driven by 1,801 (4%) Competition and basis risk intense pricing competition impacting margi
Slide 160: BPB – Month Periods
BPB – 6 Month Periods 1 Jun 15 vs Jun 15 vs $m Jun 15 Dec 14 Jun 14 Dec 14 Jun 14 For personal use only Corporate Financial Net interest income 490 495 464 (1%) 6% Services Regional & Agribusiness 274 281 275 (2%) - Local Business Banking 440 439 421 - 5% Private Bank 135 130 124 4% 9% CommSec 70 73
Slide 161: Business and Private Banking
Business and Private Banking $m FY15 FY15 vs FY14 2H15 2H15 vs 1H15 For personal use only Strong Business Lending and Corporate Financial Deposit balances Decreased demand for interest 1,278 7% Increased demand for interest 635 (1%) rate risk management products Services rate risk management p
Slide 162: IB&M – Month Periods
IB&M – 6 Month Periods For personal use only Jun 15 vs Jun 15 vs $m Jun 15 Dec 14 Jun 14 Dec 14 Jun 14 Net interest income Institutional Banking 646 632 638 2% 1% Markets 96 78 75 23% 28% 742 710 713 5% 4% Other banking income Institutional Banking 428 401 388 7% 10% Markets 215 323 207 (33%) 4% 643
Slide 163: Institutional Banking and Markets
Institutional Banking and Markets For personal use only $m FY15 FY15 vs FY14 2H15 2H15 vs 1H15 Growth in average Growth in average lending and leasing lending Institutional Banking 2,107 4% balances, partly offset by 1,074 4% and deposit balances, lower margins partly offset by lower margins P
Slide 164: WM – Month Periods
WM – 6 Month Periods 1 Jun 15 vs Jun 15 vs For personal use only $m Jun 15 Dec 14 Jun 14 Dec 14 Jun 14 Total operating income CFSGAM 445 402 371 11% 20% CFS2 415 451 407 (8%) 2% CI 298 338 357 (12%) (17%) 1,158 1,191 1,135 (3%) 2% Operating expenses CFSGAM (269) (257) (241) 5% 12% CFS2 (440) (295) (
Slide 165: Wealth Management
Wealth Management 1 $m FY15 FY15 vs FY14 2H15 2H15 vs 1H15 For personal use only Average AUM 13% (spot Average AUM 8% (spot 6%), CFSGAM 847 15% 12%), strong investment 445 11% strong investment markets and markets, and weaker AUD weaker AUD Average FUA 13% (spot 12%), strong investment Average
Slide 166: NZ – Month Periods
NZ – 6 Month Periods Jun 15 vs Jun 15 vs For personal use only NZ$m Jun 15 Dec 14 Jun 14 Dec 14 Jun 14 Net interest income ASB 825 827 755 - 9% Other (4) 4 14 Large Large 821 831 769 (1%) 7% Other banking income ASB 172 169 160 2% 8% Other (17) (16) (15) 6% 13% 155 153 145 1% 7% Total banking income
Slide 167: New Zealand
New Zealand NZ$m FY15 FY15 vs FY14 2H15 2H15 vs 1H15 For personal use only Lending 8% and retail Improved home loan deposits 16% (spot) growth (in line with ASB Operating Strong business and 2,067 9% 1,035 - system) Income rural lending growth Pressure on lending and Favourable funding
Slide 168: Bankwest – Month Periods
Bankwest – 6 Month Periods For personal use only Jun 15 vs Jun 15 vs $m Jun 15 Dec 14 Jun 14 Dec 14 Jun 14 Net interest income 791 803 773 (1%) 2% Other banking income 108 109 103 (1%) 5% Total banking income 899 912 876 (1%) 3% Operating expenses (388) (397) (401) (2%) (3%) Loan impairment write- 2
Slide 169: Bankwest
Bankwest For personal use only $m FY15 FY15 vs FY14 2H15 2H15 vs 1H15 Continued growth in Balance growth across average interest key product lines earning assets Lower net interest Total Banking income 1,811 2% Lower net interest 899 (1%) margin due to margin due to competitive market compet
Slide 170: IFS - significantly enhancing capabilities
IFS - significantly enhancing capabilities Customer focus For personal use only Build a digital banking ecosystem that focuses on delivering excellent customer service and enhanced financial literacy to our customers Key capabilities People Technology Partnerships Strength Productivity Talent Stabil
Slide 171: CBA in Asia & South Africa
CBA in Asia & South Africa Cash NPAT1 For personal use only $m Solid operating income, provision for VIB Growth driven by the Increased revenue from impairment in FY14 and benefit of weaker Institutional Lending and favourable markets performance Australian dollar, partly offset by Leasing businesse
Slide 172: CBA in Asia and South Africa
CBA in Asia and South Africa China For personal use only ♦ Bank of Hangzhou (20%): 171 branches ♦ Qilu Bank (20%): 105 branches ♦ County Banking - Henan: 7 Banks and 5 branches (5 Banks and 5 branches @ 80% and 2 Banks @ 100% holding) - Hebei: 8 Banks (5 Banks @ 80% and 3 Banks @ 100% shareholding).
Slide 173: IFS – Continued growth
IFS – Continued growth 1 Revenue (A$m) Direct Proprietary Customers For personal use only A$m ‘000 250 500 200 400 150 300 100 200 50 100 - - Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Proprietary Loans & Inforce Premium – spot Proprietary Income A$m A$m A$m
Slide 174: CFSGAM – Global Reach
CFSGAM – Global Reach For personal use only Australia and New Zealand AUM $113.2 billion1 UK, Europe and Middle East AUM $61.3 billion Asia (incl. Japan) AUM $21.7 billion Joint venture North America AUM $6 billion2 Spot 1. Assets under management indicated above includes Realindex Investments which
Slide 175: Australia remains well placed
Australia remains well placed For personal use only Australia is now well into its 24th year of uninterrupted economic growth. Australian policy makers retain some firepower – the RBA could cut interest rates if necessary. GDP1 Unemployment Rate2 Global Interest Rates1 (annual % change) (%) (%) % %
Slide 176: China growth slowing but remains solid
China growth slowing but remains solid China/Asia is a major export market for other countries as well as Australia. For personal use only Whilst the Chinese economy has slowed, outcomes in line with the growth target (of 7%pa) are still likely in 2015 and 2016. Growth near the target will be enough
Slide 177: The growth transition continues
The growth transition continues For personal use only The transition from mining to non-mining led growth is proceeding. The addition to economic activity from resource exports and non-mining activity has more than offset the decline in mining capex and construction job gains have more than offset m
Slide 178: Confidence remains weak, but signs of improved consumer spending
Confidence remains weak, but there are signs of improved consumer spending For personal use only Businesses remain cautious but AUD depreciation is boosting the competitiveness of exporters and import-competing industries. Consumer spending growth is lifting, despite the weakness in wages growth and
Slide 179: Strong population growth underpins housing demand
Strong population growth underpins housing demand For personal use only Strong population growth underpins a strong pick up in dwelling construction. The surge in dwelling construction will allow housing demand and supply to better align. Population Growth1 Housing Demand & Supply1 Dwelling Commence
Slide 180: Low interest rates a key driver of housing growth
Low interest rates a key driver of housing growth For personal use only The low interest rate environment has encouraged a search for yield, driving the pick up in investor lending and credit growth. Dwelling price growth varies widely by region – Sydney is not representative of Australia. Populatio
Slide 181: Household balance sheets remain strong
Household balance sheets remain strong For personal use only The upward trend in household credit (or debt) was a multi-decade event driven by structural factors. But household balance sheets are strong. Households have cut back their use of consumer debt (credit cards, margin loans). The savings ra
Slide 182: House price bubble characteristics not evident in Australia
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 183: New Zealand
New Zealand For personal use only Dairy prices have weakened over 2014 and 2015. Global supply growth has been strong; Chinese import demand affected by high Chinese inventories. Sharp drop in NZ dollar will boost dairy earnings in the following season (year-ending May 2017). Global Dairy Trade Auct
Slide 184: New Zealand
New Zealand For personal use only Inflation environment subdued, even with impact of NZ dollar depreciation over 2015-16. RBNZ has cut the Official Cash Rate from 3.5% to 3%. Expected to further cut the OCR to 2.5% in coming months. Headroom to cut further if needed. NZ CPI Inflation1 Official Cash
Slide 185: New Zealand
New Zealand For personal use only Housing market underpinned by strong inbound migration and falling interest rates. Construction to maintain a high level, with further growth in Auckland in particular. Moderate household credit growth being supported by housing activity and interest rates. NZ House
Slide 186: 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 June 2015. Peers includes ANZ, NA
Slide 187: 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 188: Productivity Metrics - Definitions
Productivity Metrics - Definitions For personal use only Measure Metric Timeframe Average number of transactions completed per week Teller transactions per CSR FY15 v FY13 in branch by Retail Customer Service Representatives Percentage of personal loans funded on day of Personal loans funded same da
Slide 189: Sustainability Scorecard – Sources and Definitions
Sustainability Scorecard – Sources and Definitions Complete definitions for scorecard metrics are available at www.commbank.com.au/sustainability2015 All metrics capture data from Australian domestic operations only (excluding Bankwest), unless otherwise stated. For personal use only 1 The proportio
Slide 190: CO2e Emissions Method – Business Lending
CO2e Emissions Method – Business Lending The financed emissions analysis was conducted by EY, following the principles set out in the GHG Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard. This approach draws on the emerging protocols being discussed through the Greenhouse
Slide 191: Results Presentation for the Full Year Ended June 2015
RESULTS PRESENTATION FOR THE FULL YEAR ENDED 30 JUNE 2015 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 AUS
Commonwealth Bank of Australia — FY2015 Earnings Presentation on 6ix