Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — Debt Investor Presentation (February 2017)
27 slides from Commonwealth Bank Of Australia's debt investor presentation, Feb 20, 2017
Slide 1: CommBank PERLS IX Capital Notes Investor Presentation
For personal use only CommBank PERLS IX Capital Notes Investor Presentation 20 February 2017 Investments in PERLS IX are an investment in CBA and may be affected by the ongoing performance, financial position and solvency of CBA. They are not deposit liabilities or protected accounts of CBA 1 under
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by the Commonwealth Bank of Australia (“CBA”) in relation to the offer of CommBank PERLS IX Capital Notes (‘PERLS IX”) (the “Offer”). The Offer will be made in or accompanied by a copy of the Prospectus (“Prospectus”). CBA intends to lodge a replacement
Slide 3: Overview
3 For personal use only Overview
Slide 4: Overview
Overview CommBank PERLS ■ PERLS IX are subordinated, unsecured notes issued by CBA, through its New Zealand branch For personal use only IX Capital Notes (“PERLS IX”) Offer size ■ A$750 million, with the ability to raise more or less Use of proceeds ■ The Offer raises Tier 1 Capital to satisfy CBA’s
Slide 5: CET1 capital and future earnings absorbs losses before Additional Tier 1 securities
CET1 capital and future earnings absorbs losses before Additional Tier 1 securities APRA CET1 requirements CBA CET1 loss absorption CBA actions to strengthen % of earnings capital levels For personal use only Potential loss absorption before AT1 able to be used CET1 Ratio Value range for Future earn
Slide 6: Key Features of CommBank PERLS IX Capital Notes
For personal use only Key Features of CommBank PERLS IX Capital Notes 6
Slide 7: Distributions
Distributions Distributions ■ PERLS IX are scheduled to pay quarterly, floating rate Distributions For personal use only ■ The first Distribution is scheduled to be paid on 15 June 2017 ■ Distributions are expected to be fully franked, but will be increased to compensate Holders to the extent that a
Slide 8: Summary of events that may affect PERLS IX
Summary of events that may affect PERLS IX PERLS IX do not have a fixed maturity date but may be Exchanged into Ordinary Shares, Redeemed or Resold. The For personal use only diagram below summarises when these events could occur1. If none of these events occur, PERLS IX could remain on issue indefi
Slide 9: Early Redemption & Resale
Early Redemption & Resale Early Redemption ■ CBA may Redeem PERLS IX in the following circumstances (subject to certain conditions including prior written For personal use only Rights for CBA approval by APRA): — on the Call Date (31 March 2022) – all or some PERLS IX; or — at any time – all of PERL
Slide 10: Mandatory Exchange
Mandatory Exchange Mandatory ■ On the Mandatory Exchange Date (31 March 2024), CBA must Exchange all PERLS IX (subject to the Maximum For personal use only Exchange Exchange Number and Mandatory Exchange Conditions) for a variable number of Ordinary Shares with the benefit of a 1% discount1 ■ If all
Slide 11: Automatic Early Exchange – Non-Viability Trigger Event
Automatic Early Exchange – Non-Viability Trigger Event Non-Viability Trigger ■ A Non-Viability Trigger Event occurs when APRA notifies CBA in writing that it believes: For personal use only Event — Exchange of all or some PERLS IX (or the taking of an action in relation to other capital instruments
Slide 12: Automatic Early Exchange – Capital Trigger Event
Automatic Early Exchange – Capital Trigger Event Capital Trigger ■ A Capital Trigger Event occurs when: Event For personal use only – CBA determines; or – APRA notifies CBA in writing that it believes that either or both the CBA Level 1 Common Equity Tier 1 Capital Ratio or CBA Level 2 Common Equity
Slide 13: Key Differences between Colonial Group Subordinated Notes and PERLS IX
Key Differences between Colonial Group Subordinated Notes and PERLS IX There are significant differences between PERLS IX and the Colonial Group Subordinated Notes, and PERLS IX may not suit your investment objectives, financial situation or particular needs. If you have any questions about the diff
Slide 14: Comparison to other CBA hybrid securities
Comparison to other CBA hybrid securities There are differences between PERLS IX and other CBA PERLS securities, and PERLS IX may not suit your investment objectives, financial situation or particular needs. If you have any questions about the differences, you should seek advice from your financial
Slide 15: Information about CBA
For personal use only Information about CBA 15
Slide 16: 1H17 Financial Results
1H17 Financial Results Snapshot – 1H17 Results1 For personal use only Financial Operating Performance2 Cash earnings ($m) 4,907 2% Group ($m) 7,449 4% ROE (Cash) 16.0% (130) bpts Retail Banking Services ($m) 3,868 9% Cash EPS ($) 2.86 - Business and Private Banking ($m) 1,196 2% DPS ($) 1.99 1 cent
Slide 17: Sound credit quality
Sound credit quality LIE remains low Consumer arrears lower For personal use only bpts Cash LIE (Loan Impairment Expense) basis points calculated as a percentage of Consumer Home Loans Arrears exclude Reverse Mortgage, Commonwealth Portfolio average Gross Loans and Acceptances (GLA). Loan (RBS only)
Slide 18: Strong capital position
Strong capital position Common Equity Tier 1 (CET1) For personal use only bpts 15.4% 10.6% (80) 10.2% 9.8% (74) 112 (28) 9.9% Dec 15 Jun 16 Higher 1 Jul 16 June 16 Cash RWA & Dec 16 Dec 16 APRA APRA mortgage APRA Final NPAT Other APRA Int'l 1 risk weight Dividend (Net of DRP) 1 The analysis aligns w
Slide 19: Funding and liquidity
Funding and liquidity CBA’s term wholesale funding profile as For personal use only at 31 December 2016 ($bn) 50 $bn Weighted average maturity 4.2 years 40 30 20 10 Jun 17 Jun 18 Jun 19 Jun 20 Jun 21 Jun 22 > Jun 22 FY Long Term Wholesale Debt Covered Bond CBA’s funding by type1 as at 31 CBA’s liqui
Slide 20: Bank Hybrid Securities Basics
For personal use only Bank Hybrid Securities Basics 20
Slide 21: Bank hybrid securities basics
Bank hybrid securities basics An interactive module on bank hybrid securities basics is available to potential investors to help them understand bank For personal use only hybrid securities, their features and risks. It is available from www.commbank.com.au/about- us/shareholders/securities/bank-hyb
Slide 22: Key Dates & Contacts
For personal use only Key Dates & Contacts 22
Slide 23: Key Dates
Key Dates Key dates for the Offer For personal use only Securityholder Offer Record Date 9 February 2017 Lodgement of Prospectus with ASIC 20 February 2017 Bookbuild 27 February 2017 Announcement of Margin 28 February 2017 Opening Date for the Offer and lodgement of the replacement prospectus with A
Slide 24: Contacts
Contacts Issuer For personal use only Commonwealth Bank of Australia Paolo Tonucci, Group Treasurer Tricia Ho-Hudson, Head of Capital & +61 2 9303 1711 Regulatory Strategy +61 2 9118 1319 Arrangers Commonwealth Bank of Australia Truong Le Sally Choi +61 2 9118 1205 +61 2 9117 1214 Morgan Stanley Aus
Slide 25: Appendix: Key Benefits and Key Risks
Appendix: CommBank PERLS IX Capital Notes – Key Benefits and Key Risks1 Key Benefits of PERLS IX For personal use only ■ PERLS IX are scheduled to pay a floating Distribution Rate ■ PERLS IX Distributions are scheduled to be paid quarterly in arrears ■ PERLS IX pay a fixed Margin above the Market Ra
Slide 26: Appendix: Key Benefits and Key Risks (cont.)
Appendix: CommBank PERLS IX Capital Notes – Key Benefits and Key Risks1 Key Risks of PERLS IX (cont.) For personal use only ■ PERLS IX may not be Exchanged on the scheduled Mandatory Exchange Date and you may continue to hold PERLS IX indefinitely ■ CBA may redeem PERLS IX on the Call Date or at any
Slide 27: For personal use only
For personal use only
Commonwealth Bank of Australia — Debt Investor Presentation (February 2017) on 6ix