Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — FY2008 Earnings Presentation
125 slides from Commonwealth Bank Of Australia's earnings presentation, Aug 13, 2008
Slide 1: Results Presentation – Full Year Ended 30 June 2008
Results Presentation Results Presentation For the full year ended 30 June 2008 For the full year ended 30 June 2008 Ralph Norris Ralph Norris CHIEF EXECUTIVE OFFICER CHIEF EXECUTIVE OFFICER David Craig David Craig CHIEF FINANCIAL OFFICER CHIEF FINANCIAL OFFICER 13th August 2008 Commonwealth Bank of
Slide 2: Disclaimer
Disclaimer Disclaimer The material that follows is a presentation of general background The material that follows is a presentation of general background information about the Bank’s activities current at the date of the information about the Bank’s activities current at the date of the presentation
Slide 3: For personal use only
For personal use only 4 4
Slide 4: Agenda
Agenda Agenda Ralph Norris, CEO – Company Update and Outlook Ralph Norris, CEO – Company Update and Outlook David Craig, CFO – Financial Overview David Craig, CFO – Financial Overview Questions and Answers Questions and Answers 5 5 3 3 Agenda Agenda For personal use only Ralph Norris,
Slide 5: Notes
Notes Notes 6 6 45 45 Notes Notes For personal use only 45 45
Slide 6: Strength in uncertain times
Strength in uncertain times Strength in uncertain times ► A solid operating result in a difficult environment ► A solid operating result in a difficult environment ► Strong capital and funding positions ► Strong capital and funding positions ► Strong risk management = sound credit quality ► Strong r
Slide 7: Market shares
Market shares Market shares Jun 08 Dec 07 Jun 07 Jun 08 Dec 07 Jun 07 Retail Banking Services Retail Banking Services Home loans 19.3% 18.8% 18.5% Home loans 19.3% 18.8% 18.5% Credit cards 18.2% 18.5% 18.8% Note Credit cards 18.2% 18.5% 18.8% Note Personal lending (APRA Other Households) 15.8% 16.7%
Slide 8: A solid operating result
A solid operating result A solid operating result Jun 08 vs Jun 08 vs Jun 08 Jun 07 Jun 08 Jun 07 Operating Income ($m) 14,358 10% Operating Income ($m) 14,358 10% Statutory NPAT ($m) 4,791 7% Statutory NPAT ($m) 4,791 7% Cash NPAT ($m) 4,733 5% Cash NPAT ($m) 4,733 5% Cash EPS (cents) 356.9 3% Cash
Slide 9: Strong growth in core products
Strong growth in core products Strong growth in core products Home lending Business deposits Home lending Business deposits 15 consecutive monthly increases CBA growth well above system 15 consecutive monthly increases CBA growth well above system 19.6% in market share 12 months growth 19.6% in mark
Slide 10: Targeted market share growth
Targeted market share growth Targeted market share growth Market Jun 08 Market Jun 08 Share vs Share vs Jun 08 Jun 07 Jun 08 Jun 07 15 consecutive months of market 15 consecutive months of market Home Lending 19.3% 0.8% share gains Home Lending 19.3% 0.8% share gains Household Deposits* 29.7% 0.7% S
Slide 11: Determined to be better than we have ever been
Determined to be better than we have ever been Determined to be better than we have ever been Money Magazine Awards 2008 Money Magazine Awards 2008 Winner - Bank of the Year Winner - Bank of the Year Winner - Margin Lender of the Year (Colonial Margin Lending) Winner - Margin Lender of the Y
Slide 12: Determined to be different
Determined to be different Determined to be different Determined to offer strength in uncertain times Determined to offer strength in uncertain times Determined to be better than we have ever been Determined to be better than we have ever been Determined to be Australia’s finest financial
Slide 13: Other highlights
Other highlights Other highlights IT efficiency ratio Repeat Severity 1 and 2 incidents IT efficiency ratio Repeat Severity 1 and 2 incidents World-wide best practice 20 World-wide best practice 20 13-15% 18 Substantially improved 13-15% 18 Substantially improved 16 system stability 16 system stabil
Slide 14: Determined to be different
Determined to be different Determined to be different X Customer Satisfaction reached 10 year highs X Customer Satisfaction reached 10 year highs Customer Service Customer Service X Money Magazine “Bank of the Year” 2008 X Money Magazine “Bank of the Year” 2008 X New CommSec banking solutions + iPho
Slide 15: Determined to be better than we have ever been
Determined to be better than we have ever been Determined to be better than we have ever been Smartinvestor Awards 2008 Smartinvestor Awards 2008 Online Broker of the Year – Full Featured (CommSec) Online Broker of the Year – Full Featured (CommSec) Smartinvestor Awards 2007 Smartinvestor Awards
Slide 16: Strong customer satisfaction gains
Strong customer satisfaction gains Strong customer satisfaction gains Closing the gap to top rated peer Strong gains in Business Customer Satisfaction Closing the gap to top rated peer Strong gains in Business Customer Satisfaction 84% Roy Morgan Research Customer Satisfaction1 TNS Customer Satisfac
Slide 17: Determined to be better than we have ever been
Determined to be better than we have ever been Determined to be better than we have ever been Wealth Insights - Service Level Survey Awards 2008 Wealth Insights - Service Level Survey Awards 2008 Best Fund Manager (Colonial First State) Best Fund Manager (Colonial First State) Best Master Trus
Slide 18: Core Banking our next key step
Core Banking our next key step Core Banking our next key step Core Banking Core Banking Our Journey so far Our Journey so far Modernisation Modernisation Improving the Front-End Addressing the Back-End Improving the Front-End Addressing the Back-End Sales & service training A step change in cust
Slide 19: Key Forecasts and Projections
Key Forecasts and Projections Key Forecasts and Projections 1 1 2005 2006 2007 2008 2009 (f) 2005 2006 2007 2008 2009 (f) Credit Growth % – Total 13.5 14.4 15.4 11.7 9-11 Credit Growth % – Total 13.5 14.4 15.4 11.7 9-11 Credit Growth % – Housing 14.7 13.7 12.9 9.9 9½-11½ Credit Growth % – Housing 14
Slide 20: Outlook
Outlook Outlook Challenging global conditions dominate 2009 outlook for banking sector Challenging global conditions dominate 2009 outlook for banking sector Australian economy expected to experience modest growth Australian economy expected to experience modest growth Group remains cautio
Slide 21: For personal use only
For personal use only 20 20 20 20
Slide 22: Results Presentation – David Craig, CFO
Click to edit Master title style Click to edit Master title style Results Presentation Results Presentation For the full year ended 30 June 2008 For the full year ended 30 June 2008 David Craig David Craig CHIEF FINANCIAL OFFICER CHIEF FINANCIAL OFFICER 23 23 13th August 2008 Commonwealth Bank of Au
Slide 23: Notes
Notes Notes 24 24 2223 2223 Notes Notes For personal use only 2223 2223
Slide 24: A solid underlying result
A solid underlying result A solid underlying result Jun 08 Jun 07 Jun 08 vs Jun 08 Jun 07 Jun 08 vs $m $m Jun 07 $m $m Jun 07 Operating income 14,358 13,048 10% Operating income 14,358 13,048 10% Operating expenses 7,021 6,427 9% Operating expenses 7,021 6,427 9% Loan impairment expense 930 434 Larg
Slide 25: Other key information
Other key information Other key information Visa IPO gain: Visa IPO gain: Gain on the Visa Initial Public Offering of $295 million after tax Gain on the Visa Initial Public Offering of $295 million after tax Investment and restructuring: Investment and restructuring: Amounts have been recognis
Slide 26: Statutory Profit up 7%
Statutory Profit up 7% Statutory Profit up 7% Jun 08 Jun 07 Jun 08 vs Jun 08 Jun 07 Jun 08 vs $m $m Jun 07 $m $m Jun 07 Cash NPAT 4,733 4,527 5% Cash NPAT 4,733 4,527 5% Visa IPO gain 295 - Visa IPO gain 295 - Investment and restructuring (264) - Investment and restructuring (264) - 31 31 Defined be
Slide 27: Other key information
Other key information Other key information 6 months 6 months % of total group operating income Jun 08 Dec 07 Jun 07 % of total group operating income Jun 08 Dec 07 Jun 07 Net interest income 54% 56% 54% Net interest income 54% 56% 54% Other banking income 24% 22% 24% Other banking income 24% 22% 24
Slide 28: Positive "Jaws" in all business units
Positive “Jaws” in all business units Positive “Jaws” in all business units Jun 08 vs Jun 07 Jun 08 vs Jun 07 30% 30% 25% 24% 25% 24% 22% 22% PBS and WM exclude PBS and WM exclude 20% impact of asset sales 19% 20% impact of asset sales 19% 18% 18% 15% 15% 15% 15% 11% 11% 10% 11% 11% 10% 10% 9% 10% 9
Slide 29: Investing for the future
Investing for the future Investing for the future Investment spend ($m) Investment spend ($m) Expensed Capitalised Total Expensed Capitalised Total Core Banking Modernisation Core Banking Modernisation Growth CommSec banking solutions Growth CommSec banking solutions 219 304 523 219 304 523
Slide 30: Investment driven cost growth
Investment driven cost growth Investment driven cost growth Expense Movements Expense Movements 2008 vs 2007 ($m) 2008 vs 2007 ($m) 78 (100) 78 (100) 121 121 89 (64) 89 (64) 224 224 246 Investing for the future 246 Investing for the future 7,021 7,021 IWL IWL Bank ANK Indonesia Bank ANK Indo
Slide 31: Underlying NIM down 10bpts (12 months)
Underlying NIM down 10bpts (12 months) Underlying NIM down 10bpts (12 months) Asset pricing and mix bpts Asset pricing and mix bpts Underlying NIM È 10bpts Underlying NIM È 10bpts ¾ Home Loans È 7 ¾ Home Loans È 7 ¾ Business Loans È 2 208* (10) ¾ Business Loans È 2 208* (10) ¾ Personal Loans È 2
Slide 32: Underlying NIM down 7bpts (6 months)
Underlying NIM down 7bpts (6 months) Underlying NIM down 7bpts (6 months) Asset pricing and mix bpts Asset pricing and mix bpts Underlying NIM È 7bpts Underlying NIM È 7bpts ¾ Home Loans È 8 ¾ Home Loans È 8 ¾ Business Loans È 1 206* (9) ¾ Business Loans È 1 206* (9) ¾ Personal Loans Ç 1 6 (4) ¾
Slide 33: Notes
Notes Notes 34 34 3233 3233 Notes Notes For personal use only 3233 3233
Slide 34: Loan impairment expense
Loan impairment expense Loan impairment expense 6 months annualised (basis points) 12 months ($m) 6 months annualised (basis points) 12 months ($m) 32 Collective 930 Collective 32 Collective 930 Collective Management Management Management 212 economic Management 212 economic 11 economic overlay 11 e
Slide 35: Other key information
Other key information Other key information Home loan portfolio mix New mortgagee in possession cases Home loan portfolio mix New mortgagee in possession cases Jun 08 Jun 07 # Jun 08 Jun 07 # Owner-Occupied 55% 55% 60 Owner-Occupied 55% 55% 60 Investment 34% 34% Investment 34% 34% Line-of-Credit 11%
Slide 36: Sound consumer credit quality
Sound consumer credit quality Sound consumer credit quality Home loan arrears Home loan arrears Home lending: Home lending: 30+ Days % 30+ Days % ¾ Portfolio quality remains sound ¾ Portfolio quality remains sound 1.2% 1.2% ¾ Arrears similar to prior years ¾ Arrears similar to prior years 1.0% 1
Slide 37: Other key information – Margin Lending
Other key information Notes Other key information Notes Margin Lending Margin Lending 6 months 6 months Jun 08 Dec 07 Jun 08 Dec 07 Portfolio Size ~$8bn ~$9bn Portfolio Size ~$8bn ~$9bn Aggregated Gearing 42% 44% Aggregated Gearing 42% 44% Margin Calls 18,500 7,000 Margin Calls 18,500 7,000 Forced s
Slide 38: Commercial Credit Quality
Commercial Credit Quality Commercial Credit Quality Risk-Rated Exposures Risk-Rated Exposures Cyclically higher provisioning: Cyclically higher provisioning: ¾ No new large problem accounts 29% Other 29% ¾ No new large problem accounts 29% Other 29% 17% BBB+ to BBB- 17% BBB+ to BBB- Book quali
Slide 39: Other key information – Expected loss by Business Unit
Other key information Notes Other key information Notes Expected loss by Business Unit * Expected loss by Business Unit * As at Jun 08 As at Jun 08 Retail Banking Services 0.22% Retail Banking Services 0.22% Premium Business Services 0.29% Premium Business Services 0.29% International Financial Serv
Slide 40: Conservative provisioning
Conservative provisioning Conservative provisioning Gross impaired assets to GLAs Impaired Assets vs Peers Gross impaired assets to GLAs Impaired Assets vs Peers 1,600 CBA as at Jun 08; Peers as at Mar 08 45.0% 1,600 CBA as at Jun 08; Peers as at Mar 08 45.0% 1,400 40.0% 1,400 40.0% 40 35.0% 40 35.0
Slide 41: Notes
Notes Notes 42 42 4041 4041 Notes Notes For personal use only 4041 4041
Slide 42: All Business Units contributing
All Business Units contributing All Business Units contributing Jun 08 Jun 07 Jun 08 vs Jun 08 Jun 07 Jun 08 vs $m $m Jun 07 $m $m Jun 07 Retail Banking Services 1,904 1,766 8% Retail Banking Services 1,904 1,766 8% Premium Business Services 1,480 1,445 2% Premium Business Services 1,480 1,445 2% We
Slide 43: Other key information – 6 month movements
Other key information – 6 month movements Other key information – 6 month movements Jun 08 Dec 07 Jun 07 Jun 08 vs Jun 08 Dec 07 Jun 07 Jun 08 vs Jun 07 Jun 07 Net interest income Home loans 529 645 637 (17%) Net interest income Home loans 529 645 637 (17%) Consumer finance 406 374 374 9% Consumer f
Slide 44: Retail Banking Services
Retail Banking Services Retail Banking Services Strong volume growth: Jun 08 Jun 08 vs Strong volume growth: Jun 08 Jun 08 vs $m Jun 07 $m Jun 07 ¾ Home loans Ç 15% Home loans 1,308 (5%) ¾ Home loans Ç 15% Home loans 1,308 (5%) Consumer finance 1,127 (3%) Consumer finance 1,127 (3%) ¾ Deposits Ç
Slide 45: Notes
Notes Notes 46 46 4445 4445 Notes Notes For personal use only 4445 4445
Slide 46: Retail Banking Services
Retail Banking Services Retail Banking Services Compliments Branch channel growing above system Compliments Branch channel growing above system Index +60% Home Loan Balance Growth Index +60% Home Loan Balance Growth 13.5% 6 Months to Jun 08 13.5% 6 Months to Jun 08 5.0 5.0 4.0 4.0 3.0 7.7% 3.0 7.7%
Slide 47: Other key information – 6 month movements
Other key information – 6 month movements Other key information – 6 month movements Jun 08 Dec 07 Jun 07 Jun 08 vs Jun 08 Dec 07 Jun 07 Jun 08 vs Jun 07 Jun 07 Net interest income Institutional Banking 511 485 433 18% Net interest income Institutional Banking 511 485 433 18% Private Client Services
Slide 48: Premium Business Services
Premium Business Services Premium Business Services Jun 08 Jun 08 vs Jun 08 Jun 08 vs Excluding “Loy Yang”: $m Jun 07 Excluding “Loy Yang”: $m Jun 07 Institutional Banking 1,882 14% Institutional Banking 1,882 14% ¾ Banking income Ç 18% ¾ Banking income Ç 18% Private Client Services 626 25% Priv
Slide 49: Notes
Notes Notes 50 50 4849 4849 Notes Notes For personal use only 4849 4849
Slide 50: Premium Business Services
Premium Business Services Premium Business Services 6 month targeted growth vs market Customer complaints 6 month targeted growth vs market Customer complaints Business down >50% Business down >50% Deposits +5.2% Deposits +5.2% Institutional & Institutional & -7.4% Markets -7.4% Markets Corporate Co
Slide 51: Other key information – 6 month movements
Other key information – 6 month movements Other key information – 6 month movements Jun 08 Dec 07 Jun 07 Jun 08 vs Jun 08 Dec 07 Jun 07 Jun 08 vs Jun 07 Jun 07 Net operating income CFS GAM 484 431 356 36% Net operating income CFS GAM 484 431 356 36% Colonial First State 316 378 354 (11%) Colonial Fi
Slide 52: Wealth Management
Wealth Management Wealth Management CFS GAM: Jun 08 Jun 08 vs CFS GAM: Jun 08 Jun 08 vs $m Jun 07 $m Jun 07 ¾ FUM up 9% to $153bn ¾ FUM up 9% to $153bn CFS GAM 915 38% CFS GAM 915 38% ¾ 84% of AWG sold down ¾ 84% of AWG sold down Colonial First State 694 5% Colonial First State 694 5% Colonial
Slide 53: Notes
Notes Notes 54 54 5253 5253 Notes Notes For personal use only 5253 5253
Slide 54: Wealth Management
Wealth Management Wealth Management Funds under Administration FirstChoice net flows remain positive Funds under Administration FirstChoice net flows remain positive + 10% $m + 10% $m 1,896 1,896 2,000 2,000 $29bn ($13bn) $29bn ($13bn) $185bn 1,626 $185bn 1,626 $169bn 1,600 $169bn 1,600 1,200 1,200
Slide 55: Other key information – 6 month movements
Other key information – 6 month movements Other key information – 6 month movements Jun 08 vs Jun 08 vs Jun 08 Dec 07 Jun 07 Jun 07 Jun 08 Dec 07 Jun 07 Jun 07 Net interest income ASB 414 400 372 11% Net interest income ASB 414 400 372 11% Other 59 42 18 Large Other 59 42 18 Large 473 442 390 21% 47
Slide 56: International Financial Services
International Financial Services International Financial Services Jun 08 Jun 08 vs Jun 08 Jun 08 vs $m Jun 07 $m Jun 07 ASB profit Ç 11% in NZD ASB profit Ç 11% in NZD ASB 1,130 16% ASB 1,130 16% Sovereign 258 (3%) Sovereign 258 (3%) Growing Asian contribution Other 210 98% Growing Asian con
Slide 57: Other key information – Wholesale funding
Other key information Other key information Wholesale Funding - Geographic Distribution Wholesale Funding by Product Wholesale Funding - Geographic Distribution Wholesale Funding by Product Australia Structured MTN Australia Structured MTN 3% 2% 10% 2% 11% Vanilla MTN 3% 2% 10% 2% 11% Vanilla MTN 4%
Slide 58: Strong funding and liquidity positions
Strong funding and liquidity positions Strong funding and liquidity positions Source of Funding 1 Source of Funding 1 AA credit rating, stable outlook 21% AA credit rating, stable outlook 21% Globally respected borrowers – EuroWeek 2% Globally respected borrowers – EuroWeek 2% 5% 5% Overall
Slide 59: Notes
Notes Notes 60 60 5859 5859 Notes Notes For personal use only 5859 5859
Slide 60: A strong capital position
A strong capital position A strong capital position Basel I Basel II Basel I Basel II 14% 14% 12.08% 12.08% 12% 11.58% Total 12% 11.58% Total 10.74% Capital 10.74% Capital 9.76% 9.82% Target 9.76% 9.82% Target 10% Range 3 10% Range 3 8% 8% 8.17% 8.17% Tier 1 8.17% 8.17% Tier 1 7.58% Target 7.58% Tar
Slide 61: Notes
Notes Notes 62 62 6061 6061 Notes Notes For personal use only 6061 6061
Slide 62: Capital ratios compare favourably to peers
Capital ratios compare favourably to peers Capital ratios compare favourably to peers Domestic Peer Comparison Domestic Peer Comparison Basel II advanced accreditation Tier 1 Capital Ratios, without IRRBB1 Basel II advanced accreditation Tier 1 Capital Ratios, without IRRBB1 achieved December 20
Slide 63: Notes
Notes Notes 64 64 6263 6263 Notes Notes For personal use only 6263 6263
Slide 64: Key Messages
Key Messages Key Messages A solid operating result A solid operating result Significant progress on strategic initiatives Significant progress on strategic initiatives Good market share gains, particularly deposits Good market share gains, particularly deposits Sound risk management =
Slide 65: Notes
Notes Notes 66 66 6465 6465 Notes Notes For personal use only 6465 6465
Slide 66: Agenda
Agenda Agenda Ralph Norris, CEO – Company Update and Outlook Ralph Norris, CEO – Company Update and Outlook David Craig, CFO – Financial Overview David Craig, CFO – Financial Overview Questions and Answers Questions and Answers 67 67 6566 6566 Agenda Agenda For personal use only Ralph
Slide 67: Supplementary materials
Supplementary materials Supplementary materials For the full year ended 30 June 2008 For the full year ended 30 June 2008 68 68 13th August 2008 Commonwealth Bank of Australia ACN 123 123 124 13th August 2008 Commonwealth Bank of Australia ACN 123 123 124 66 66 Supplementary materials Supplementary
Slide 68: Index
Index Index Group Results Overview…………………………………………..….…69 Group Results Overview…………………………………………..….…69 Banking…………………………………………………………….…......72 Banking…………………………………………………………….…......72 Wealth Management……………………………………………..…...…82 Wealth Management……………………………………………..…...…82 International Financial Se
Slide 69: Supplementary Information – Group Results Overview
Supplementary Information Supplementary Information Group Results Overview Group Results Overview Banking Banking Wealth Management Wealth Management International Financial Services International Financial Services Credit Quality and Risk Management Credit Quality and Risk Management Capital, Fundi
Slide 70: Fully franked dividends
Fully franked dividends Fully franked dividends Dividend (cents per share) Dividend (cents per share) 280 280 240 240 200 200 149 153 149 153 160 130 160 130 Cents Cents 112 112 104 104 120 120 82 85 82 85 107 113 107 113 80 Second Half 80 Second Half 85 94 85 94 79 79 68 69 First Half 68 69 First H
Slide 71: Expenses
Expenses Expenses 12 months 12 months Jun 08 Jun 07 Jun 08 vs Jun 08 Jun 07 Jun 08 vs $m $m Jun 07 $m $m Jun 07 Staff expenses 3,661 3,229 13% Staff expenses 3,661 3,229 13% Occupancy and equipment 767 688 11% Occupancy and equipment 767 688 11% IT Services 826 883 (6%) IT Services 826 883 (6%) Post
Slide 72: Supplementary Information – Banking
Supplementary Information Supplementary Information Group Results Overview Group Results Overview Banking Banking Wealth Management Wealth Management International Financial Services International Financial Services Credit Quality and Risk Management Credit Quality and Risk Management Capital, Fundi
Slide 73: Other banking income
Other banking income Other banking income 6 months 6 months Jun 08 Dec 07 Jun 07 Jun 08 vs Jun 08 vs Jun 08 Dec 07 Jun 07 Jun 08 vs Jun 08 vs $m $m $m Dec 07 Jun 07 $m $m $m Dec 07 Jun 07 Commissions 919 908 870 1% 6% Commissions 919 908 870 1% 6% Lending Fees 507 469 479 8% 6% Lending Fees 507 469
Slide 74: Banking Revenue by Segment
Banking Revenue by Segment Banking Revenue by Segment Jun 08 vs Jun 08 vs Jun 08 Jun 07 Jun 07 Jun 08 Jun 07 Jun 07 Home Loans 1,308 1,380 (5%) Home Loans 1,308 1,380 (5%) Other, 3% Other, 3% ASB, 10% Home Loans, 12% Consumer Finance 1,127 1,161 (3%) ASB, 10% Home Loans, 12% Consumer Finance 1,127 1
Slide 75: Housing Credit
Housing Credit Housing Credit Share of housing approvals – Banks vs Non-Banks Share of housing approvals – Banks vs Non-Banks % % % % 95 30 95 30 B a nk s ( LH S ) B a nk s ( LH S ) 90 25 90 25 85 20 85 20 \ \ 80 15 80 15 75 10 75 10 N o n- ba nk s N o n- ba nk s 76 (R H S) 76 (R H S) 70 5 70 5 Jan
Slide 76: Market Share Trends
Market Share Trends Market Share Trends Home Loans Household Deposits Home Loans Household Deposits RBA/APRA APRA RBA/APRA APRA 19.6% 30.0% 19.6% 30.0% Adjusted for peer Adjusted for peer 29.5% reclassifications 29.5% reclassifications 19.2% 19.2% 18.8% 29.0% 18.8% 29.0% 18.4% 28.5% 18.4% 28.5% 18.0
Slide 77: CBA growth vs market (12 months to Jun 08)
CBA growth vs market (12 months to Jun 08) CBA growth vs market (12 months to Jun 08) Home Lending Personal Lending Home Lending Personal Lending 12.1% 9.0% 12.1% 9.0% 10.1% 10.1% 4.2% 4.2% 14.9% 14.9% 13.4% 12.4% 10.5% 13.4% 12.4% 10.5% 7.8% 1.3% 7.8% 1.3% -0.1% 2.3% 0.7% -0.1% 2.3% 0.7% -2.8% -2.8
Slide 78: CBA growth vs market (6 months to Jun 08)
CBA growth vs market (6 months to Jun 08) CBA growth vs market (6 months to Jun 08) Home Lending Personal Lending Home Lending Personal Lending 3.0% 3.2% 3.0% 3.2% 6.5% 6.5% 4.7% 4.7% 0.3% 0.3% 7.4% 7.3% 7.4% 7.3% 6.3% 6.3% 5.2% 5.4% -0.3% -0.6% 5.2% 5.4% -0.3% -0.6% CBA Peer 1 Peer 2 Peer 3 Peer 4
Slide 79: State Summary
State Summary State Summary NSW/ACT VIC/TAS WA SA/NT QLD Total NSW/ACT VIC/TAS WA SA/NT QLD Total Branches 382 335 77 65 150 1,009 Branches 382 335 77 65 150 1,009 ATMs 1,227 1,002 275 198 599 3,301 ATMs 1,227 1,002 275 198 599 3,301 HL Growth* 7% 16% 24% 21% 24% 15% HL Growth* 7% 16% 24% 21% 24% 15
Slide 80: Home loan balance growth by channel
Home loan balance growth by channel Home loan balance growth by channel 6 months 6 months 15.8% 15.8% 13.3% 13.5% 13.3% 13.5% 7.0% 7.7% 7.0% 7.7% 6.5% 6.8% 6.5% 6.8% 5.9% 5.9% 5.0% 5.2% 5.2% 5.0% 5.2% 5.2% 4.7% 4.7% 3.3% 3.5% 3.3% 3.5% -0.5% -0.5% 81 81 Jun 07 Dec 07 Jun 08 Jun 07 Dec 07 Jun 08 Brok
Slide 81: Replicating Portfolio
Replicating Portfolio Replicating Portfolio No change Easing Scenario No change Easing Scenario Replicating Replicating Portfolio Yield Portfolio Yield Replicating Replicating Portfolio Yield Portfolio Yield Target Cash Target Cash Target Cash Target Cash Rate Rate Rate Rate 2001 2011 2001 2011 2001
Slide 82: Supplementary Information – Wealth Management
Supplementary Information Supplementary Information Group Results Overview Group Results Overview Banking Banking Wealth Management Wealth Management International Financial Services International Financial Services Credit Quality and Risk Management Credit Quality and Risk Management Capital, Fundi
Slide 83: Global Asset Management
Global Asset Management Global Asset Management Globally: $153bn FUM*, 1,000 people Globally: $153bn FUM*, 1,000 people North America Japan North America Japan $1.6bn FUM $4.7bn FUM $1.6bn FUM $4.7bn FUM 4 People 4 People Middle East Asia ex China & Japan Middle East Asia ex China & Japan $4.6bn FUM
Slide 84: Funds under Administration (FUA)
Funds under Administration (FUA) Funds under Administration (FUA) Full Year to Jun 08 Full Year to Jun 08 Investment Investment Opening income and Closing Opening income and Closing Funds Under Administration balance Inflows Outflows Netflows other 5 balance Funds Under Administration balance Inflow
Slide 85: Funds under Management (FUM)
Funds under Management (FUM) * Funds under Management (FUM) * Full Year Ended Half Year Ended Full Year Ended Half Year Ended Jun 08 Jun 07 Growth Jun 08 Dec 07 Growth Jun 08 Jun 07 Growth Jun 08 Dec 07 Growth $m $m % $m $m % $m $m % $m $m % Australian equities 23,502 31,199 (25) 23,502 29,618 (21)
Slide 86: Well diversified product mix
Well diversified product mix Well diversified product mix Funds Under Administration Funds Under Administration Jun 08 Jun 08 Total FUA = $185 bn Total FUA = $185 bn Internationally sourced Internationally sourced 18% FirstChoice/Avanteos 18% FirstChoice/Avanteos (19% as at Jun 07) 24% (19% as at Ju
Slide 87: Shareholder investment asset mix
Shareholder investment asset mix Shareholder investment asset mix Australia New Zealand Asia Total Australia New Zealand Asia Total Local equities 1% - - - Local equities 1% - - - International equities - 1% 12% 1% International equities - 1% 12% 1% Property 21% - 32% 17% Property 21% - 32% 17% Grow
Slide 88: Supplementary Information – International Financial Services
Supplementary Information Supplementary Information Group Results Overview Group Results Overview Banking Banking Wealth Management Wealth Management International Financial Services International Financial Services Credit Quality and Risk Management Credit Quality and Risk Management Capital, Fundi
Slide 89: Asian Footprint
Asian Footprint Asian Footprint China Indonesia China Indonesia Staff numbers 3,600 100 - CBA 1,110 PT Bank Commonwealth Staff numbers 3,600 100 - CBA 1,110 PT Bank Commonwealth 3,500 - Jinan City Commercial Bank & 306 PT Commonwealth Life 3,500 - Jinan City Commercial Bank & 306 PT Commonwealth Lif
Slide 90: Asian Footprint
Asian Footprint Asian Footprint China China 11% Jinan City Commercial Bank 11% Jinan City Commercial Bank (Top up to 20% subject to regulatory approval) (Top up to 20% subject to regulatory approval) 19.9% Bank of Hangzhou 19.9% Bank of Hangzhou Beijing and Shanghai – Representative offices Beijing
Slide 91: Supplementary Information – Credit Quality and Risk Management
Supplementary Information Supplementary Information Group Results Overview Group Results Overview Banking Banking Wealth Management Wealth Management International Financial Services International Financial Services Credit Quality and Risk Management Credit Quality and Risk Management Capital, Fundi
Slide 92: Credit Quality – Key Indicators Summary
Credit Quality – Key Indicators Summary Credit Quality – Key Indicators Summary Jun 08 Dec 07 Jun 07 Jun 08 Dec 07 Jun 07 Risk Weighted Assets (RWA) - Basel I N/A $272,609m $245,347m Risk Weighted Assets (RWA) - Basel I N/A $272,609m $245,347m Risk Weighted Assets (RWA) - Basel II $205,501m $198,228
Slide 93: Home loans – LVR Profile
Home loans – LVR Profile Home loans – LVR Profile Original LVR of Portfolio Original LVR of Portfolio Strong average LVR profile: 100% Strong average LVR profile: 100% 90% 90% ¾ 50% based on original value 80% ¾ 50% based on original value 80% 70% 70% 60% 80%+ 60% 80%+ ¾ 40% based on current val
Slide 94: Consumer Arrears – 90+ days
Consumer Arrears – 90+ days Consumer Arrears – 90+ days Home loans Credit cards Home loans Credit cards 1.2% 1.2% 0.5% 0.5% 1.0% 1.0% 0.4% 0.4% 0.8% 0.8% 0.3% 0.3% 0.2% 0.6% 0.2% 0.6% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Slide 95: Total exposures by geography
Total exposures by geography Total exposures by geography Jun 08 Jun 07 Jun 08 Jun 07 International 16% International 13% International 16% International 13% New Zealand 11% New Zealand 14% New Zealand 11% New Zealand 14% Australia 73% Australia 73% Australia 73% Australia 73% 96 96 Total exposures
Slide 96: Home Loan Stress Testing
Home Loan Stress Testing Home Loan Stress Testing Stress test scenarios modelled, based on Stress test scenarios modelled, based on experience of UK recession of the late experience of UK recession of the late 1980s / early 1990s, which saw 1980s / early 1990s, which saw Expected loss Expected l
Slide 97: Top Commercial Exposures and Large Exposures
Other key information Other key information Top 20 Commercial Exposures Large Exposures % Top 20 Commercial Exposures Large Exposures % 20 largest exposures as a % 20 largest exposures as a % 4.0% of Total Committed Exposures 4.0% of Total Committed Exposures $m as at Jun 08 $m as at Jun 08 3.0% 3.0
Slide 98: Total exposures by sector
Total exposures* by sector Total exposures* by sector Jun 08 Jun 07 Jun 08 Jun 07 Mining 1.2% Mining 1.2% Mining 1.2% Mining 1.2% Manufacturing 2.9% Manufacturing 2.9% Manufacturing 3.1% Manufacturing 3.1% Agriculture 2.3% Agriculture 2.3% Energy 1.8% Agriculture 2.3% Energy 1.8% Agriculture 2.3% En
Slide 99: Exposures by sector – Top
Exposures* by sector – Top 10 Exposures* by sector – Top 10 Jun 08 Jun 07 Jun 08 Jun 07 AAA A+ to BBB+ Other Total AAA A+ to BBB+ Other Total AAA A+ to BBB+ Other Total AAA A+ to BBB+ Other Total to AA- A- to to AA- A- to to AA- A- to to AA- A- to $bn $bn BBB- BBB- BBB- BBB- Banks 41.7 14.7 1.8 0.4
Slide 100: Counterparty and Other Exposures
Counterparty and Other Exposures* Counterparty and Other Exposures* US Debt and No exposure to foreign sub-prime or Alt-A assets. Countrywide exposure recently repaid in full. US Debt and No exposure to foreign sub-prime or Alt-A assets. Countrywide exposure recently repaid in full. Agencies No
Slide 101: Supplementary Information – Capital, Funding and Liquidity
Supplementary Information Supplementary Information Group Results Overview Group Results Overview Banking Banking Wealth Management Wealth Management International Financial Services International Financial Services Credit Quality and Risk Management Credit Quality and Risk Management Capital, Fundi
Slide 102: UK Capital Comparison – Basel II
UK Capital Comparison – Basel II UK Capital Comparison – Basel II PricewaterhouseCoopers has worked with the Bank in identifying, in principle, the PricewaterhouseCoopers has worked with the Bank in identifying, in principle, the key differences between the APRA and FSA method of calculating reg
Slide 103: UK Capital Comparison – Basel II
UK Capital Comparison – Basel II UK Capital Comparison – Basel II The following table estimates the impact on CBA capital of the differences between the The following table estimates the impact on CBA capital of the differences between the APRA Basel II guidelines and those of the UK regulator, Fina
Slide 104: European Capital Levels
European Capital Levels European Capital Levels 11.8% 11.8% 12% Basel II Tier 1 Capital 12% Basel II Tier 1 Capital 10.2% 10.1% 10.2% 10.1% Europe Europe 10% 9.3% 9.3% 10% 9.3% 9.3% 9.1% 9.0% 8.6% Average 9.1% 9.0% 8.6% Average 8.6% 8.5% 8.3% 8.2% 8.6% 8.5% 8.3% 8.2% Tier 1: Tier 1: 7.8% 8.7% 7.8% 8
Slide 105: Tier 1 movement in half year to Jun 08
Tier 1 movement in half year to Jun 08 Tier 1 movement in half year to Jun 08 10.0% 10.0% Basel II Basel II 9.5% 1.14% (0.99%) 9.5% 1.14% (0.99%) 9.0% 9.0% 0.30% (0.27%) 0.30% (0.27%) 8.5% (0.24%) 8.5% (0.24%) 8.17% 0.11% (0.05%) 8.17% (0.59%) 8.17% 0.11% (0.05%) 8.17% (0.59%) 8.0% 8.0% 7.58% 7.58%
Slide 106: Total Capital movement in half year to Jun 08
Total Capital movement in half year to Jun 08 Total Capital movement in half year to Jun 08 14.0% 14.0% Basel II Basel II 1.14% (0.99%) 1.14% (0.99%) 13.0% 13.0% 0.30% (0.41%) 0.30% (0.41%) 12.08% (0.48%) 12.08% (0.48%) 12.0% 12.0% (0.05%) (0.01%) 11.58% (0.84%) (0.05%) (0.01%) 11.58% (0.84%) 11.0%
Slide 107: Tier 1: Dec 07 Basel I to Basel II
Tier 1: Dec 07 Basel I to Basel II Tier 1: Dec 07 Basel I to Basel II 8.5% 8.5% 2.23% 8.17% 2.23% 8.17% 8.0% 8.0% 7.5% 7.41% (0.10%) 7.5% 7.41% (0.10%) (0.20%) (0.20%) (0.60%) (0.60%) 7.0% 7.0% (0.58%) (0.58%) 6.5% 6.5% 6.0% 0.01% 6.0% 0.01% 5.5% 5.5% 5.0% 5.0% 1 2 1 2 Tier 1 Unit Expected AIFRS Ine
Slide 108: Total Capital: Dec 07 Basel I to Basel II
Total Capital: Dec 07 Basel I to Basel II Total Capital: Dec 07 Basel I to Basel II 12.5% 12.5% 3.29% 12.08% 3.29% 12.08% 12.0% 12.0% 11.5% 11.5% 11.0% 11.0% 10.5% 10.5% 10.0% 9.82% (0.20%) 10.0% 9.82% (0.20%) (0.39%) (0.39%) 9.5% 9.5% (0.29%) (0.29%) 9.0% (0.14%) 9.0% (0.14%) (0.01%) (0.01%) 8.5% 8
Slide 109: Regulatory Expected Loss
Regulatory Expected Loss Regulatory Expected Loss Jun-08 Dec-07 Jun 08 v Jun-08 Dec-07 Jun 08 v Dec 07 Dec 07 $m $m $m $m $m $m Regulatory Expected Loss (EL) - before tax 2,372 2,087 285 Regulatory Expected Loss (EL) - before tax 2,372 2,087 285 Eligible Provision Eligible Provision Collective Provi
Slide 110: Hybrid instrument information
Hybrid instrument information Hybrid instrument information Hybrid dividends paid Hybrid dividends paid Franked/ Franked/ Jun 08 Dec 07 Jun 07 Dec 06 Jun 08 Dec 07 Jun 07 Dec 06 Imputed Imputed PERLS II 23 20 19 19 F PERLS II 23 20 19 19 F PERLS III 35 31 31 29 F PERLS III 35 31 31 29 F PERLS IV 1 4
Slide 111: Capital treatment – Basel II
Capital treatment – Basel II Capital treatment – Basel II AIFRS APRA AIFRS APRA Accounting Tier 1 Tier 2 Total Accounting Tier 1 Tier 2 Total Shareholders' Equity Shareholders' Equity Ordinary Share Capital 3 3 3 Ordinary Share Capital 3 3 3 Other Equity Instruments 3 3 3 Other Equity Instruments 3
Slide 112: Funding costs
Funding costs Funding costs Basis Risk Long Term Funding Costs Basis Risk Long Term Funding Costs bpts bpts bpts bpts 100 1.00% 100 1.00% 115 115 1.20% 1.20% 120 105 30 Jun 08 120 105 30 Jun 08 80 0.80% 1.00% 80 0.80% 1.00% 100 90 100 90 Margin to BBSW Margin to BBSW 0.80% 80 0.80% 80 58 60 0.60% 58
Slide 113: A respected name in global funding markets
A respected name in global funding markets A respected name in global funding markets “Best Overall MTN Issuer” 2008 “Best Overall MTN Issuer” 2008 Credit ratings: “Best Structured Note Issuer” 2008 Credit ratings: “Best Structured Note Issuer” 2008 “Best Financial Institution MTN Issuer” 2008 “
Slide 114: Market-leading retail funding position
Market-leading retail funding position Market-leading retail funding position Deposit Mix - Australia Deposit Mix - Australia CBA’s deposit portfolio is significantly more heavily weighted CBA’s deposit portfolio is significantly more heavily weighted towards “stickier” and higher margin household d
Slide 115: Supplementary Information – Sustainability
Supplementary Information Supplementary Information Group Results Overview Group Results Overview Banking Banking Wealth Management Wealth Management International Financial Services International Financial Services Credit Quality and Risk Management Credit Quality and Risk Management Capital, Fundi
Slide 116: Sustainability - metrics
Sustainability - metrics Sustainability - metrics 2008 2007 2006 2005 2004 2008 2007 2006 2005 2004 Customers Customers Customer satisfaction rating – Main Financial Institution (MFI) Retail 1 70. 1 % 70. 5% 64. 9% 65. 4% 63. 2% Customer satisfaction rating – Main Financial Institution (MFI) Retail
Slide 117: Sustainability – progress
Sustainability – progress Sustainability – progress Customers Customers Overall customer satisfaction at 10 year highs Overall customer satisfaction at 10 year highs Strongest gains in Business customer satisfaction amongst peer group Strongest gains in Business customer satisfaction amongst
Slide 118: Sustainability – focus going forward
Sustainability – focus going forward Sustainability – focus going forward Further embedding sustainability into our business processes Further embedding sustainability into our business processes Enhanced reporting and disclosure Enhanced reporting and disclosure Supporting diversity and f
Slide 119: Supplementary Information – Economic Indicators
Supplementary Information Supplementary Information Group Results Overview Group Results Overview Banking Banking Wealth Management Wealth Management International Financial Services International Financial Services Credit Quality and Risk Management Credit Quality and Risk Management Capital, Fundi
Slide 120: Economic Growth
Economic Growth Economic Growth World Economic Growth GDP Growth – RBA Forecast World Economic Growth GDP Growth – RBA Forecast % % % % (annual % change) %pa %pa (annual % change) %pa %pa 8 8 8 8 9 9 9 9 So urce: CB A , Co nsensus, IM F (f) So urce: CB A , Co nsensus, IM F (f) N o n -f a rm N o n -f
Slide 121: Economic Indicators
Economic Indicators Economic Indicators Migration Mining projects Migration Mining projects '000 '000 $bn $bn '000 '000 $bn $bn 60 60 60 60 180 180 180 180 Target Target A dvanced A dvanced 08/09 08/09 To tal pro jects To tal pro jects 120 120 40 40 120 120 40 40 Co mpleted Co mpleted 07/08 07/08 Sk
Slide 122: Credit Growth
Credit Growth Credit Growth Total Credit Growth Housing Credit Total Credit Growth Housing Credit % (annual % change) % (% ch an g e ) % % (annual % change) % (% ch an g e ) % % 25 25 % 25 25 16 16 16 16 A nnual A nnual 20 20 20 20 14 14 14 14 15 15 15 15 12 12 12 12 10 10 10 10 10 10 Q u a r t e r
Slide 123: Housing Indicators
Housing Indicators Housing Indicators Housing loan approvals Market share of approvals Housing loan approvals Market share of approvals % % % % 95 30 95 30 B a nk s ( LH S ) B a nk s ( LH S ) 90 25 90 25 85 20 85 20 80 15 80 15 75 10 75 10 N o n- ba nk s N o n- ba nk s (R H S) (R H S) 70 5 70 5 Jan
Slide 124: Credit quality - System
Credit quality - System Credit quality - System Sub-prime – share of total housing System housing loan arrears Sub-prime – share of total housing System housing loan arrears System housing loan arrears by State System housing loan arrears in NSW System housing loan arrears by State System housing lo
Slide 125: Results Presentation – Full Year Ended 30 June 2008
Results Presentation Results Presentation For the full year ended 30 June 2008 For the full year ended 30 June 2008 Ralph Norris Ralph Norris CHIEF EXECUTIVE OFFICER CHIEF EXECUTIVE OFFICER David Craig David Craig CHIEF FINANCIAL OFFICER CHIEF FINANCIAL OFFICER 126 126 13th August 2008 Commonwealth
Commonwealth Bank of Australia — FY2008 Earnings Presentation on 6ix