Commonwealth Bank Of Australia · ASX:CBA

Commonwealth Bank Of Australia — H1 2014 Earnings Presentation

14 slides from Commonwealth Bank Of Australia's earnings presentation, Feb 12, 2014

  1. Slide 1: For the Half Year Ended 31 December 2013

    FOR THE HALF YEAR ENDED 31 DECEMBER 2013 For personal use only IAN NAREV CHIEF EXECUTIVE OFFICER COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124 | 12 FEBRUARY 2014

  2. Slide 2: Disclaimer

    Notes Disclaimer For personal use only The material that follows is a presentation of general background information about the Group’s activities current at the date of the presentation, 12 February 2014. It is information given in summary form and does not purport to be complete. It is not intended

  3. Slide 3: Continuing momentum

    Continuing momentum For personal use only Dec 13 vs Dec 13 Dec 12 Statutory Profit ($m) 4,207 16% Cash NPAT ($m) 4,268 14% ROE – Cash (%) 18.7% 80 bpts Cash Earnings per Share ($) 2.64 13% Dividend per Share ($) 1.83 12% 3

  4. Slide 4: All businesses contributing well

    All businesses contributing well 1H14 vs 1H13 For personal use only Operating Cash 1 Drivers Performance NPAT ■ Income  9% RBS 11% 10% ■ Home loan balances  7%  5% 2 ■ Business loan balances BPB 3% 10% ■ NIM lower (deposits) ■ Markets (ex CVA)  16% IB&M 4% 13% ■ Loan Impairment Expense  78% ■ A

  5. Slide 5: Long-term strategy underpins performance

    Long-term strategy underpins performance Progress 1H14 For personal use only People &  Peer leading customer satisfaction driving good Culture momentum across the business  Sustained cultural change enabling investment and Productivity benefiting underlying expense growth  Leveraging technology a

  6. Slide 6: Peer leading customer satisfaction

    Peer leading customer satisfaction For personal use only Area Measure CBA Rank 1 Retail Roy Morgan 1st 2,3 Business DBM =1st 4 Wealth Wealth Insights 1st 5 6 ASB TNS; Camorra* =1st IFS MRI – Foreign Banks 7 1st (PT Bank Commonwealth) 1, 2, 3, 4, 5, 6, 7 Refer notes slide at back of this presentation

  7. Slide 7: Revenue growth a key driver of performance

    Revenue growth a key driver of performance Home Lending Business Lending Household Deposits For personal use only Balance Growth1 Balance Growth1 Balance Growth1 +110bpts +370bpts +20bpts 5.4% 6.5% 9.5% 9.3% 5.4% 1.7% System CBA System CBA System CBA Transaction Deposits Funds Management ASB $bn Ret

  8. Slide 8: Productivity culture enabling on-going investment

    Productivity culture enabling on-going investment Sustained Improvements1 Case Study – WM Unit Pricing For personal use only Customer Service Average 1 Yr +8% Turnaround Time Volumes Headcount Transactions per FTE 2 Yr +13% (8%) +10% flat % Personal Loans 1 Yr +6% funded same day 2 Yr +15% % Deposit

  9. Slide 9: Technology a continuing investment priority

    Technology a continuing investment priority New CommBank app Simplified Processes For personal use only Over 1 million registered users  CBA led the market, first with cards and then with Simplified processes reducing 1 terminals since launch Dec-13  Now ~20% of total card transactions and growing

  10. Slide 10: Conservative business settings

    Conservative business settings Deposit Funding Wholesale Funding For personal use only % of Total Funding Portfolio Tenor (years) 1 3.8 63% 63% 3.7 62% 3.6 Dec 11 Dec 12 Dec 13 Dec 11 Dec 12 Dec 13 Liquidity Capital 2 Common Equity Tier 1 Liquids ($bn) (Basel III International) 128 137 11.4% 115 10.

  11. Slide 11: Strong contributor to Australian economy

    Strong contributor to Australian economy Where does our income go? For personal use only 1H14 ($bn) Loan impairment Expenses Cost of lending across Serving ~14.5 the economy million customers 2.0 0.5 Tax expense 1.7 Contributing to the community 2.8 1.2 Salaries Employing 2.9 Retained for capital ~5

  12. Slide 12: Outlook

    Outlook  Positive on medium term outlook, with short term For personal use only improvements likely to be gradual rather than dramatic  Domestic confidence slow to rebuild  Key question is whether lower dollar will stimulate non- resource driven growth  Global volatility likely to continue due t

  13. Slide 13: Summary

    Summary  Continuing momentum from a long-term strategy For personal use only  All divisions contributing, with good momentum across the business  Still considerable upside from effective execution of the strategy; – On-going strengthening of customer focused culture – Productivity focus enabling

  14. Slide 14: For the Half Year Ended 31 December 2013

    FOR THE HALF YEAR ENDED 31 DECEMBER 2013 For personal use only IAN NAREV CHIEF EXECUTIVE OFFICER COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124 | 12 FEBRUARY 2014

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