Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — UBS Eighth Annual Financial Services Conference (June 2009)
20 slides from Commonwealth Bank Of Australia's conference presentation, Jun 24, 2009
Slide 1: Commonwealth Bank of Australia – UBS Financial Services Conference
Commonwealth Bank of Australia For personal use only David Craig Chief Financial Officer UBS Eighth Annual Financial Services Conference 24 June 2009 Commonwealth Bank of Australia ACN 123 123 124
Slide 2: Disclaimer
Disclaimer For personal use only The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation, 24 June 2009. It is information given in summary form and does not purport to be complete. It is not intended to be reli
Slide 3: Operating conditions remain challenging
Operating conditions remain challenging Global slowdown/recession Unemployment trending higher For personal use only % % pa GDP Growth 2009 10 (evolution of forecasts) 12 9 China 8 8 Asia 7 (ex. Japan & China) 6 4 Industrial 5 Countries 4 0 3 - 2002 2003 2004 2005 2006 2007 2008 2009 4 Jan 08 Jul 08
Slide 4: Strong financial services sector
Strong financial services sector Credit Ratings of Largest 100 Banks For personal use only Effective regulatory regime US$b Major banks: AA credit ratings All rated in top 20 global safest banks* By assets, log scale. Holding company ratings Profitable Sources : Bloomberg; The Banker Effec
Slide 5: CBA - Strength in uncertain times
CBA - Strength in uncertain times Position as at March 2009 For personal use only Priority Areas Financial Good income growth supported by strong market shares performance Sound cash earnings, ROE maintained above 15% Risk Prudent provisioning - management overlay $1.3bn management Strengthe
Slide 6: Strong market share positions
Strong market share positions Home Lending Household Deposits Credit Cards For personal use only 32.4% 24.6% 21.6% 22.3% 22.4% 23.2% 17.7% 12.6% 12.9% 13.4% 12.9% 11.9% CBA / Peer 1 Peer 2 Peer 3 CBA / Peer 1 Peer 2 Peer 3 CBA / Peer 1 Peer 2 Peer 3 BankWest BankWest BankWest Personal Lending Busine
Slide 7: Lending overview
Lending overview Home lending For personal use only Home lending: 22.4% Balance Growth Benefiting from customer service focus 4 Months to Apr 09 (annualised) 15.0% Branch channel turnaround 7.8% SVR pricing differential 6.4% 2.9% Prudent lending criteria CBA Peer 1 Peer 2 Peer 3 Business
Slide 8: Branch channel turnaround
Branch channel turnaround For personal use only 20% Home Loan Balance Growth (%, annualised) 18% CBA Branches 16% System 14% 12% 10% 8% 6% 4% 2% 0% Dec-06 Jun-07 Dec-07 Jun-08 Sep-08 Dec-08 Mar-09 -5.6% -3.0% 0.0% +2.6% +3.7% +7.7% +11.3% Difference between CBA Branch Growth and System Growth For De
Slide 9: Deposits overview
Deposits overview Household deposits For personal use only Source: APRA/RBA Strong market shares benefiting Group Balance Growth 4 Months to Apr 09 (annualised) funding position 11.9% 15.0% 11.8% 10.7% 9.8% Over 32% share of Household Deposits CBA Peer 1 Peer 2 Peer 3 CBA includes Bankwest. Figu
Slide 10: Solid Wealth Management performance
Solid Wealth Management performance Flat FUA Strong net flows For personal use only $1,239m FirstChoice and Avanteos $1bn ($1bn) $158bn $158bn* $763m $751m $647m Dec 08 Netflows Investment Returns Mar 09 Jun 08 Sep 08 Dec 08 Mar 09 Solid Investment Performance Inforce premiums up 9% Number of Funds
Slide 11: Credit quality – consumer
Credit quality – consumer Home loan arrears For personal use only Arrears trends consistent with slowdown 2.0% 30+ Days % 1.6% Strong home loan portfolio: 1.2% 70% paid in advance – avg 7 months 0.8% 0.4% Average LVR 37% on current values 0.0% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Slide 12: Australian housing market
Australian housing market Underpinned by population growth Demand outstripping supply For personal use only POPULATION HOUSING DEMAND & SUPPLY '000 ‘000 '000 (rolling annual increase) Rolling annual increase ‘000 '000 '000 200 200 450 450 450 200 Demand D emand 350 350 350 150 150 150 250 250 250 Su
Slide 13: Credit quality – commercial
Credit quality – commercial Total and New Impaired Assets For personal use only Overall portfolio quality remains sound $m 3,399 2,792 895 848 1,398 69% investment grade 683 2,504 785 1,944 352 Jun 08 Dec 08 Mar 09 Some deterioration in SME portfolio Total Impaired Assets Total Impaired Assets
Slide 14: Further prudent increase in provisions
Further prudent increase in provisions For personal use only Individual provisions ($m) Collective provisions ($m) 1,521 2,954 2,703 1,297 2,474 Bankwest 488 Single Names 1,134 1,303 Granularity 1,159 Economic 454 1,082 Model and data 454 1,466 443 Bankwest 274 Bankwest 115 267 401 359 238 46 Consum
Slide 15: Good coverage ratios maintained
Good coverage ratios maintained Total provisions to GLAs* Individual provisions to impaired assets For personal use only 48.4%* 2.35% 2.29% 2.21% 44.7% 2.00% 36.1% 33.5% 0.99% 1.13% 0.93% 1.10% Peer 3 CBA Peer 1 Peer 2 Peer 3 Mar 09 Peer 1 Mar 09 CBA Mar 09 Peer 2 Mar 09 Mar 09 Mar 09 Mar 09 Mar 09
Slide 16: Loss rates - last recession
Loss rates - last recession 4 For personal use only Institutional Banking 3 Small Business Loss Rate (%) Business Banking 2 Personal Loans Credit cards 1 Home Loans 0 1982 1984 1986 1988 1990 1992 1994 16
Slide 17: Strong capital and funding positions
Strong capital and funding positions FY09 Term Funding Completed Source of Funding For personal use only 8 FY09 funding task completed ($26bn) 22% 7 $16bn in Govt guaranteed debt 6 Weighted average maturity = 3.5yrs 5 1% 57% AUD (bn) 4 4% 3 2 14% 1 2% 0 Retail Funding Long Term Wholesale matur
Slide 18: Strategy on track and delivering
Strategy on track and delivering Retail MFI Customer Satisfaction1 Business Customer Satisfaction2 For personal use only Gap to top-rated peer Gap to top-rated peer % Satisfied (‘Very Satisfied’ or ‘Fairly Satisfied’) 83% 90.0% 81% 79% 4.4% 85.0% 77% 80.0% 75% 9.7% 75.0% 73% 70.0% 20.1% 71% 65.0% 6.
Slide 19: Summary
Summary For personal use only Operating conditions remain challenging Australian economy slowing, but relatively well placed CBA pursuing a cautious and conservative approach March 2009 quarter outcomes consistent with this approach: Core business performing well - unaudited cash earnings
Slide 20: Commonwealth Bank of Australia
Commonwealth Bank of Australia For personal use only David Craig Chief Financial Officer UBS Eighth Annual Financial Services Conference 24 June 2009 Commonwealth Bank of Australia ACN 123 123 124
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