Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — H1 2017 Earnings Presentation
25 slides from Commonwealth Bank Of Australia's earnings presentation, Feb 15, 2017
Slide 1: Media Presentation
Media Presentation For the Half Year Ended 31 December 2016 COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124 | 15 FEBRUARY 2017
Slide 2: Today
Today Strategic Update Financials Outlook
Slide 3: Delivering on our Vision
Delivering on our Vision In the last six months: $109 billion new lending to personal and business customers 140,000 new home loans, including 15,000 first home buyers $3.5 billion new loans to 12,700 small businesses $1.2 billion new lending to farmers and other rural customers 1.5 million new depo
Slide 4: This Result
This Result Dec 16 vs Dec 15 Statutory Profit 6% Cash NPAT 2% Cash Earnings per Share ($) 2.86 Flat Dividend per Share ($) 1.99 +1 cent ROE – Cash 16.0% (130) bpts
Slide 5: Contributing to our economy and community
Contributing to our economy and community Total Income $13.1bn Salaries $3.1bn 50,000 employees globally including 41,000 jobs in Australia Profit After Tax
Slide 6: Contributing to our economy and community
Contributing to our economy and community Total Income $13.1bn Salaries $3.1bn Expenses $2.6bn We buy products and services from more than 5,000 small and Profit After Tax medium-sized businesses
Slide 7: Contributing to our economy and community
Contributing to our economy and community Total Income $13.1bn Salaries $3.1bn Expenses $2.6bn Tax We are Australia’s largest tax payer $1.9bn Equivalent to: Profit After Tax 126 3 Schools Hospitals
Slide 8: Contributing to our economy and community
Contributing to our economy and community Total Income $13.1bn Salaries $3.1bn Expenses $2.6bn Loan impairment expense – Tax LIE a cost of lending $1.9bn $0.6bn Profit After Tax
Slide 9: Contributing to our economy and community
Contributing to our economy and community Total Income $13.1bn Salaries $3.1bn Expenses $2.6bn Tax 800,000 households own our shares – $1.9bn and millions more Australians do so LIE $0.6bn through their super funds Profit After Tax Dividends $3.4bn
Slide 10: Contributing to our economy and community
Contributing to our economy and community Total Income $13.1bn Salaries $3.1bn Expenses $2.6bn Reinvesting in our business to make it Tax $1.9bn better for our customers LIE $0.6bn Profit After Tax Dividends $3.4bn Reinvested $1.5bn
Slide 11: Summary – managing for today’s environment
Summary – managing for today’s environment Positive “Jaws” Strength Returns International +1 cent Underlying 15.4% 16% 199 4% 135% 66% 3% 9.9% 1% Income Expense Operating Deposit LCR CET1 ROE Dividend Perform. funding (cash) (cents)
Slide 12: Delivering for customers
Delivering for customers Retail Customer Satisfaction 83.2% #1 19 consecutive months CBA Peers 66.5% Dec 06 Dec 16
Slide 13: More satisfied customers - business
More satisfied customers - business Customer Satisfaction Customer Satisfaction 4 years* (DBM) (DBM, Large) #1 Micro = #1 Small = #1 Medium = #1 CBA Peers Large #1 Dec 15 Dec 16 *Outright or equal 1st
Slide 14: Focus on Better Banking
Focus on Better Banking Improving Listening Putting things right Agribusiness Customer Advocate Open Advice Review customer assistance appointed assessments completed measures introduced New Industry First phase of pre 2012 review of Financial inclusion Whistleblower advice under licence
Slide 15: Branches remain key
Branches remain key Customer Relationships Efficiency 68k Customer insights each week New format – 88 locations 24k Video-conferencing referrals 1H17 50% reduction in branch space
Slide 16: Branches remain key – home lending
Branches remain key – home lending Proprietary % of Total Flows RBS 57% 55% Branch applications up 13% 54% Smarter analytics: o 10x increase in branch leads Market 48% 48% 46% o higher contact rate (now 95%) o higher conversion rates (3x) Extra branch lenders Dec 15 Jun 16 Dec 16
Slide 17: Real time banking
Real time banking Group Transaction Balances +41% Used by 15 million customers since 2012 +18% Originate and transact in real time: anywhere, anytime, any device Instant banking: fast and simple Driving customer satisfaction 1H15 1H16 1H17
Slide 18: The digital revolution
The digital revolution 5.8m customers now using digital 53% of total transactions (by $) 25% of new account openings 3mins to open new accounts 80% of logins via mobile
Slide 19: Transformative technology a differentiator
Transformative technology a differentiator Blockchain Digital & Analytics Payments First interbank open Landmark account transaction Empowering clients partnerships with with insights based on Alipay and Barclays First global real-time customer government bond trial behaviours Albert and Pi
Slide 20: Transformative technology - Albert
Transformative technology - Albert 70,000 64% devices new merchants to CBA 13 39 new apps last six apps in total months POS Vista POS
Slide 21: TYME kiosk
TYME kiosk Self service on-boarding Account creation on the spot Debit card issuance Identity and authentication Biometric capture External verification of identity
Slide 22: TYME kiosks South Africa rollout
685 across South Africa, since launch May 2016 kiosks 9 from concept to rollout months 100,000 through Pick ’n Pay and Boxer stores enrolments 4 to on-board new minutes customers on-boarding cost per $4 customer
Slide 23: SmartPOS prototype
SmartPOS prototype Security 2x Cameras Strictest global Voucher, coupon, QR, security standards bar code scanning Connectivity 4G, Antenna & Wi-Fi, Bluetooth and GPS Payments Contactless, NFC, Wallet Touch 7” high resolution Open Apps & VAS multi-touch screen Open platform app development, CommBank
Slide 24: Outlook
Outlook Globally – heightened geopolitical and market volatility Domestically – some positive trends: o Improving commodity prices, terms-of-trade o Export sector For CBA: o Focus on the long term o Supporting Australia through strength, investment and innovation
Slide 25: Media Presentation
Media Presentation For the Half Year Ended 31 December 2016 COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124 | 15 FEBRUARY 2017
Commonwealth Bank of Australia — H1 2017 Earnings Presentation on 6ix