Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — FY2016 Earnings Presentation
19 slides from Commonwealth Bank Of Australia's earnings presentation, Aug 10, 2016
Slide 1: Media Presentation: Results for the Full Year Ended 30 June 2016
For personal use only MEDIA PRESENTATION Results Presentation FOR THE FULL YEAR ENDED 30 JUNE 2016 For the half year ended 31 December 2009 COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124 | 10 AUGUST 2016 10 February Commonwealth Bank of Australia ACN 123 123 124 2010
Slide 2: Our Strategy
Our Strategy Customer Focus For personal use only People Productivity Technology Strength Capabilities “One CommBank” Growth Opportunities Continued growth in business and institutional banking Disciplined capability-led growth outside Australia TSR Outperformance 2
Slide 3: Our Vision and Values
Our Vision and Values Our Vision Our Values For personal use only To excel at Integrity securing and Accountability enhancing the financial Collaboration wellbeing of Excellence people, businesses Service and communities 3
Slide 4: Cash NPAT up 3%
Cash NPAT up 3% For personal use only Jun 16 vs Jun 16 Jun 15 Statutory Profit ($m) 9,227 2% Cash NPAT ($m) 9,450 3% ROE – Cash (%) 16.5% (170) bpts Cash Earnings per Share ($) 5.55 - Dividend per Share ($) 4.20 - 4
Slide 5: Australia's economy exposed to global uncertainty
Australia’s economy exposed to global uncertainty GDP1 Unemployment Rate2 Global Interest Rates1 For personal use only (annual % change) (%) (%) 12 8 6 6 2 8 4 -2 2 4 -6 0 -10 0 -2 Mar 05 Nov 08 Jul 12 Mar 16 Jan 05 Sep 07 May 10 Jan 13 Sep 15 Jan 05 Sep 07 May 10 Jan 13 Sep 15 1. Source: Bloomberg
Slide 6: The domestic growth transition continues
The domestic growth transition continues Growth drivers from mining peak1 Nominal GDP/Terms of Trade For personal use only (cumulative contribution to GDP since end 2012) (annual % change) Other (non-mining) 12 48 12 Rise in resource exports GDP Downturn in mining capex Nominal GDP, 8 (lhs) 32 8 4 4
Slide 7: Continued focus on the customer
Continued focus on the customer Customer Satisfaction For personal use only Retail Customer Satisfaction #1 % Satisfied ('Very Satisfied' or 'Fairly Satisfied') Retail 82.8% 87% Business = #1 82% Wealth #1 77% 72% IFS #1 67% Internet #1 CBA Peers 62% Jun 06 Jun 16 Refer notes slide at back of this p
Slide 8: Divisional Contributions
Divisional Contributions Cash NPAT FY16 1 For personal use only Income 8% C:I 150 bpts to 32.6% C:I 30 bpts to 41.7% Reduced impairment credit Business loans 6% Loan impairment 18% Home loans 9% C:I 110 bpts to 37.3% Markets2 14% Loan impairment 46% + 11% Loan im
Slide 9: Ongoing volume growth
Ongoing volume growth Balance Growth 1 For personal use only 12 months to Jun 16 Driven by continued strong growth in Transaction Accounts ASB – strong growth across the Above system growth in board: housing, business, rural 2H16 12.7% BPB > system in 2H16 IB&M < system in 2H16 9.5% 8.8% 8.8% 9.1% 6
Slide 10: Transaction Banking
Transaction Banking 1 Group Transaction Balances Strong growth across divisions For personal use only $m FY16 v FY15 40% + 22% 34% 126,780 20% Group 103,528 14% +22% 14% 88,351 Ex 15% offset 14% 17% 9% accounts 2 FY14 FY15 FY16 RBS BPB IB&M BWA NZ RBS New Transaction Accounts3 Innovation & Simplicit
Slide 11: Innovation and Simplicity
Innovation and Simplicity Simplified Personal Loans Simplified Home Loans For personal use only Easy Easy application conversion and approval of with focus on conditional financial to full wellbeing approval Enhanced Property Search Instant Banking Now across Open, fund key platforms and access – pr
Slide 12: Innovation and Simplicity
Innovation and Simplicity Paperless Statements Instant Banking Photo a bill For personal use only October 2015 May 2016 June 2016 Move to paperless New transaction BPAY details statements with a single accounts opened < 5 automatically click - over 800,000 minutes + instant populated from photo addi
Slide 13: Productivity + Efficiency + Investment
Productivity + Efficiency + Investment Productivity Cost-to-Income Reinvestment For personal use only (%) ($m) Asset Finance 73% Approval (Turnaround time) +10% 44.6 SME Loan 1,373 72% Approval - IFS (Turnaround time) Branches 12% & Other 42.8 1,246 42.4 Risk & Colonial 37% Compliance Customer
Slide 14: Strength
Strength Deposit Wholesale Capital Liquidity3 For personal use only Funding Funding Basel III % of Total Funding Portfolio Tenor2 $bn Common Equity Tier 1 (years) LCR 14.4% 120% 120% 12.7% Internationally comparable1 134 132 10.6% 4.1 65% 66% 3.8 59 CLF1 9.1% 66 HQLA1 75 assets 66 Jun 15 Jun 16 Jun
Slide 15: Depositors and shareholders fund our lending to borrowers
Depositors and shareholders fund our lending to borrowers For personal use only Depositors Shareholders Borrowers 11.3 million Over 800,000 1.9 million deposit customers Australian households are direct shareholders and home loan customers millions more individuals through their superannuation funds
Slide 16: Broad contributor to Australian wellbeing
Broad contributor to Australian wellbeing Operating Income For personal use only Loan impairment FY16 Cost of lending across Expenses Including ~5,000 SME the economy partners and suppliers $24.6bn (>90% Australian) $1.3bn Tax expense $4.2bn Australia’s largest tax $3.6bn payer1 and signatory of the
Slide 17: Outlook
Outlook For personal use only Solid underlying GDP growth and stable employment, but nominal growth remains weak Globally, monetary stimulus unable to offset low confidence from weak incomes and instability “More of the same” the most likely scenario, but with some downside risk For CBA – co
Slide 18: Customer Metrics - Sources
Customer Metrics - Sources 1 Roy Morgan Research Retail Main Financial Institution (MFI) Customer Satisfaction. Australian population 14+, % “Very Satisfied” or “Fairly Satisfied” with For personal use only relationship with that MFI. 6 month rolling average to June 2016. Peers includes ANZ, NAB and
Slide 19: Media Presentation: Results for the Full Year Ended 30 June 2016
For personal use only MEDIA PRESENTATION Results Presentation FOR THE FULL YEAR ENDED 30 JUNE 2016 For the half year ended 31 December 2009 COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124 | 10 AUGUST 2016 10 February Commonwealth Bank of Australia ACN 123 123 124 2010
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