Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — FY2013 Earnings Presentation
24 slides from Commonwealth Bank Of Australia's earnings presentation, Aug 14, 2013
Slide 1: Commonwealth Bank of Australia 14 August 2013
For personal use only 14 AUGUST 2013 | COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124
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, 14 August 2013. 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 A strong financial result driven by long term strategic focus Customer satisfaction driving revenue momentum Productivity culture enabling investment Innovation underpinned by state-of-the-art technology core Conservative settings further strengthened 3
Slide 4: A strong financial result
A strong financial result For personal use only Jun 13 vs Jun 13 Jun 12 Statutory Profit ($m) 7,677 8% Cash NPAT ($m) 7,819 10% ROE – Cash (%) 18.4% (20) bpts Cash Earnings per Share ($) 4.86 8% Dividend per Share ($) 3.64 9% 4
Slide 5: Cash NPAT drivers
Cash NPAT drivers FY13 For personal use only Income 8% Operating performance 12% Lending balances 9% Expenses 3% CVA turnaround +$215m C:I ratio 180 bpts Deposit income 11% NII 10% LIE $9m (19%) +13% Business loans 4% 1 Avg FUA 13% Income 5% Expenses flat Net o
Slide 6: Peer leading customer satisfaction and products per customer
Peer leading customer satisfaction and products per customer Retail Customer Satisfaction Products per Customer For personal use only 84.0% CBA CBA 82.0% Peers 3.00 Peers 80.0% 2.80 78.0% 2.60 76.0% 74.0% 2.40 72.0% 2.20 70.0% 68.0% 2.00 Jun 07 Jun 13 Jun 07 Jun 13 % Satisfied ('Very Satisfied' or '
Slide 7: Strong momentum
Strong momentum Home Loans Household Deposits Business Lending For personal use only Balance Growth1 Balance Growth1,2 Balance Growth1 +160bpts +120bpts 5X 6.7% 6.5% 7.0% 5.1% 5.3% 1.4% System CBA System CBA System CBA 4 Transaction Banking Funds Management ASB No. IB&M Mandates/Wins $bn Platform3 N
Slide 8: Productivity culture enabling investment
Productivity culture enabling investment Examples1 Investment Spend For personal use only Customer Service FY13 Transactions per FTE 4% ~$1.2bn Sales and Converted Referrals per FTE 10% 16% % Personal Loans funded same day 11% 12% 53% Direct Banking call handling 3% time 19% % Deposit custom
Slide 9: For personal use only
For personal use only Same day access to funds, everyday, for merchant customers Market leading innovation enabled by Core Banking Material benefit to customer cash flows
Slide 10: For personal use only
For personal use only Real-time cash flow information for business customers Payment authorisation from anywhere 36,000 logins, >2,000 activations since launch in Mar 2013
Slide 11: Kaching
For personal use only Kaching World first social payments app for Apple and Android >1 million downloads, >$9 billion in transactions Now with QR code for bill payment; new card activation
Slide 12: For personal use only
For personal use only Fast, simple in-store payments CBA led the market, first with cards and then with terminals Now ~20% of total card transactions and growing
Slide 13: For personal use only
For personal use only World first innovations revolutionising point-of-sale experience Opening up opportunities to change the business model Pi launched and growing, Leo in rollout, Albert pilot coming soon
Slide 14: For personal use only
For personal use only Online contract acceptance for Asset Finance and Business Transaction account opening Straight through processing – reduced errors, greater efficiency Document turn-around-times improved by 60%
Slide 15: For personal use only
For personal use only Essential Super - easy, low fee superannuation solution MyWealth - simplified investing in one powerful hub
Slide 16: For personal use only
For personal use only More than 4.5 million active customers 1 Australia’s most visited business & finance site (NetBank) Refreshed, upgraded and redesigned online presence (Jun 13) Simpler navigation, single sign-on across sites, intelligent search 1. Source: Hitwise
Slide 17: For personal use only
1 For personal use only Rolled out to 1,016 CBA branches in the past six months On-the-spot customer access to a range of CBA specialists Customer needs addressed at first interaction Early results encouraging - especially in Merchant Facilities, Asset Finance and Mortgage Lending 1. Exclude
Slide 18: For personal use only
For personal use only Mobile app users 250% in one year Mobile now >50% of all online account access Extra home loan payments online - Canstar Innovation Award Pay Trade Me sellers (NZ’s eBay equivalent) via mobile banking app
Slide 19: Conservative settings further strengthened
Conservative settings further strengthened Deposit Funding Wholesale Funding Tenor (years)1 For personal use only % of Total Funding Portfolio 3.8 63% 3.7 62% 3.6 61% Jun 11 Jun 12 Jun 13 Jun 11 Jun 12 Jun 13 Liquidity Capital 2 Common Equity Tier 1 Liquids ($bn) (Basel III International) 135 137 11
Slide 20: Strong contributor to Australian economy
Strong contributor to Australian economy Where does our income go? For personal use only FY13 ($bn) Loan impairment Expenses Cost of lending across Serving ~14.6 the economy million customers 4.5 1.1 Tax expense 3.0 Contributing to the community 5.1 2.0 Salaries Employing 5.8 Retained for capital ~5
Slide 21: Shareholder return
Shareholder return For personal use only +37% $ 3,385 67,722 14,954 49,383 Based on average retail shareholding (930 shares) Value as at FY13 FY13 Total 30 June 2012 Capital Gain Dividends Based on share price of $53.10 as at 30 June 2012 and $69.18 as at 28 June 2013. 21
Slide 22: Outlook – external factors influencing momentum
Outlook – external factors influencing momentum For personal use only Confidence the key: – Chinese demand – Outlook for AUD – Global markets volatility – Stable policy environment Competition remains strong Limited short term upside for domestic economy 22
Slide 23: Summary – sticking to the strategy
Summary – sticking to the strategy For personal use only A strong, good quality, strategy-driven result: – Revenue growth underpinned by peer leading customer satisfaction – Productivity focus enabling investment – Technology-led innovation Already conservative settings further strengthened St
Slide 24: For personal use only
For personal use only 14 AUGUST 2013 | COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124
Commonwealth Bank of Australia — FY2013 Earnings Presentation on 6ix