Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — H1 2012 Earnings Presentation
15 slides from Commonwealth Bank Of Australia's earnings presentation, Feb 15, 2012
Slide 1: 100 Years of Banking on Australia's Future
100 YEARS OF BANKING ON AUSTRALIA’S FUTURE Media Presentation Ian Narev Chief Executive Officer FOR THE HALF YEAR ENDED 31 DECEMBER 2011 For personal use only Results Presentation For the half year ended 31 December 2009 10 February Commonwealth Bank of Australia ACN 123 123 124 2010 15 FEBRUARY 201
Slide 2: Snapshot – 1H12 Results
Additional Information Snapshot – 1H12 Results1 For personal use only Financial Operating Performance by Division Cash earnings ($m) 3,576 +7% RBS ($m) 2,404 +7% ROE (Cash) 19.2% - BPB ($m) 897 +5% Cash EPS ($) 2.27 +6% IB&M ($m) 739 (13%) DPS ($) 1.37 +4% Bankwest ($m) 421 +14% Cost-to-Income 45.8%
Slide 3: Effects of an unpredictable environment
Notes For personal use only 5 Effects of an unpredictable environment Subdued system credit growth Preference for cash % Deposits as % of financial assets 30.0 % 20.0 2012 Business Fcst 29 30 10.0 4-6% Households 3-5% 0.0 2-4% 20 19 -10.0 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Mar-08 Mar-09 Mar-10 Mar-1
Slide 4: Business unit profitability; Momentum drivers
Additional Information Business unit profitability For personal use only Operating Mvt Impairment Investment Tax & non- Cash Cash Mvt $m Performance Operating Expense Experience controlling NPAT NPAT Cash Performance interests Dec 11 Dec 10 NPAT RBS 2,404 7% (365) - (600) 1,439 1,397 3% BPB 897 5% (
Slide 5: Momentum challenges
Notes For personal use only 9 Momentum challenges Cash NPAT ($m) Margin 9 bpts Markets income 45% since June +3% Equities & Weak equity markets Margin Lending Income 5% income 8% Expenses 10% 1,439 +10% +10% (24%) +15% +20% 551 547 1 272 336 268 RBS BPB IB&M WM NZ Bankwest 1 NZ result in
Slide 6: Maintaining a long term focus
Notes For personal use only 11 Maintaining a long term focus Investment Spend Investment Spend Profile Core $m Banking 29% 1,179 Productivity 1,075 & Growth 48% 1,020 1,036 4% Other 7% 12% Branch Refurbishment 638 Risk/Compliance 538 583 562 Technology Leader 647 537 474 541 437 FY08 FY09 FY10 FY11
Slide 7: Building a culture of productivity
Additional Information Building a culture of productivity For personal use only Productivity improvement Mortgage Services Driving productivity savings through: (Loan Servicing) Leveraging technology Bankwest Calls-to-fulfilment ratio Process transformation CFS Investment Operation Continuous
Slide 8: Strong funding and liquidity
Notes For personal use only 15 Strong funding and liquidity 62% Deposit Funded Liquidity 1 $bn Long term 133 Other wholesale Asia 4% 1% Europe 3% US 5% 93 Australia 6% 19% Short 19% term 62% wholesale Customer Deposits Dec 10 Current 1 Group liquid holdings as at 8 February 2012 16 8
Slide 9: A strong & sustainable business model
Notes For personal use only 17 A strong & sustainable business model Investing in technology Strong funding & liquidity Total Investment Spend profile Deposit Funding Liquids $m Spend (% of total) $bn 1,179 133 1,036 62% Core 60% 93 Banking 89 2nd half 638 Productivity 29% 562 & Growth 56% 48% 1st h
Slide 10: Return on Equity (Cash); Bank profitability
Additional Information Return on Equity (Cash) For personal use only 21.5% 21.7% 20.4% 19.5% 19.2% 18.8% 18.7% 15.8% 1.1% 1.0% Return On Assets 2005 2006 2007 2008 2009 2010 2011 1H12 19 Bank profitability 1 % ROE CBA Ranking (Amongst ASX 100 companies) Indonesia China India CBA Rank2 Russia Austral
Slide 11: Increase in retail funding costs since Jun 07
Increase in retail funding costs since Jun 07 For personal use only Basis Risk 38% x 1.75% Wholesale Funding Deposit Funding 62% x 1.57% Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Jan 11 Dec 12 Current Increase in Wholesale Funding1 1.30% 1.75% Increase in Deposit Funding 1.45% 1
Slide 12: Stakeholders
Notes For personal use only 23 Stakeholders Customer Product Holdings1 11.0m Super fund unit holders 4.3m 10.0m ? 3.0m 2.0m 4.0m 1.2m 1.0m 1.8m 500k 600k 360k 800k 52k Home Loans Credit Cards Retail savings CommInsure Personal Loans Business Funds CommSec Other Shareholders Employees and transaction
Slide 13: Strong contributor to Australian economy
Strong contributor to Australian economy For personal use only Profitable bank Strong balance sheet AA- credit rating Attracts Debt & Equity investors at Safe place to deposit money lower cost and higher volume and transact Enables ample cost Pay good return to millions effective lending of deposit
Slide 14: Economic forecasts; Outlook
Additional Information As at June* For personal use only 2008 2009 2010 2011 2012 (f) 2013 (f) Credit Growth % – Total 11.7 3.1 3.2 2.7 3-5 5-7 Credit Growth % – Housing 9.5 6.5 8.0 6.0 4-6 5-7 Credit Growth % – Business 16.9 0.5 -3.9 -2.1 2-4 5½-7½ Credit Growth % – Other Personal 3.4 -7.0 3.1 0.3
Slide 15: 100 Years of Banking on Australia's Future
100 YEARS OF BANKING ON AUSTRALIA’S FUTURE Media Presentation Ian Narev Chief Executive Officer FOR THE HALF YEAR ENDED 31 DECEMBER 2011 For personal use only Results Presentation For the half year ended 31 December 2009 10 February Commonwealth Bank of Australia ACN 123 123 124 2010 15 FEBRUARY 201
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