Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — H1 2014 Earnings Presentation
148 slides from Commonwealth Bank Of Australia's earnings presentation, Feb 12, 2014
Slide 1: Half Year Ended 31 December 2013
FOR THE HALF YEAR ENDED 31 DECEMBER 2013 For personal use only IAN NAREV DAVID CRAIG CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124 | 12 FEBRUARY 2014
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
Slide 3: Agenda
Agenda For personal use only Ian Narev, CEO – Company Update David Craig, CFO – Financial Overview Ian Narev, CEO – Outlook and Summary Questions and Answers 3
Slide 4: Snapshot – 1H14 Results
Additional information Snapshot – 1H14 Results1 For personal use only Financial Operating Performance by Division 2 Cash earnings ($m) 4,268 14% Retail Banking Services ($m) 2,674 11% ROE (Cash) 18.7% 80 bpts Business and Private Banking ($m) 1,226 3% Cash EPS ($) 2.64 13% Institutional Banking & Ma
Slide 5: 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% 5
Slide 6: 1H14 vs 1H13 by business unit
Additional information 1H14 vs 1H13 For personal use only % of Business Operating Operating Cash C:I Group Costs LIE Unit Income Performance NPAT Dec 13 NPAT RBS 39% 9% 6% 11% 18% 10% 37.0% BPB 19% 3% 2% 3% (42%) 10% 36.6% IB&M 16% 5% 5% 4% (78%) 13% 33.3% Wealth 9% 11% 6% 20% n/a 19% 63.8% NZ1 8% 1
Slide 7: 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
Slide 8: Our Strategy
Additional information Our Strategy For personal use only Customer Focus Capabilities People Technology Strength Productivity opportunities “One CommBank” Growth Continued growth in business and institutional banking Disciplined capability-led growth outside Australia TSR Outperformance 8
Slide 9: 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
Slide 10: Peer leading customer satisfaction
Additional information Peer leading customer satisfaction For personal use only Retail Business 8 86% CBA CBA 84% Peers Peers 82% 80% 78% 7 76% 74% 72% 70% 68% 6 Jun 07 Dec 13 Jun 11 Dec 13 % Satisfied ('Very Satisfied' or 'Fairly Satisfied')1 Customer Satisfaction2 - Average 1, 2 Refer notes slide
Slide 11: 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
Slide 12: Products per customer
Additional information 9 Products per customer 8 Wealth Insurance For personal use only Wealth product penetration9 H&C insurance sales as a % of new Home 3.04 14% Loans – Retail Conversion 2.90 13% 12% +6% 0.53 0.48 11% 46% 10% 40% 0.20 0.21 9% 8% 7% CBA Peers 0.70 0.74 6% Jun 11 Dec 11 Jun 12 Dec
Slide 13: 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 $bn Ret
Slide 14: Customer Service, Personal Loans, Direct Banking
Additional information Customer Service Personal Loans Direct Banking For personal use only Transactions per CSR (per week) % funded same day Number of calls +13% +15% (9%) +8% +6% (5%) Dec 11 Dec 12 Dec 13 Dec 11 Dec 12 Dec 13 Dec 11 Dec 12 Dec 13 Customers with e-statements Intelligent Deposit Mac
Slide 15: Productivity culture enabling on-going investment
Productivity culture enabling on-going investment Sustained Improvements1 Case Study – WM Unit Pricing For personal use only Customer Service Average 1 Yr +8% Turnaround Time Volumes Headcount Transactions per FTE 2 Yr +13% (8%) +10% flat % Personal Loans 1 Yr +6% funded same day 2 Yr +15% % Deposit
Slide 16: Digital
Additional information For personal use only Digital Better Kaching Property property Everyday CommSee QKR Business for Feb 2004 Guide App Dec 2011 settlement origination Jul 2010 Insights FaceBook Dec 2013 Nov 2012 Mar 2013 in PEXA Jun 2013 New NetBank CommSec Video CommSec Essential CommBank NetBa
Slide 17: Technology a continuing investment priority
Technology a continuing investment priority New CommBank app Simplified Processes For personal use only Over 1 million registered users CBA led the market, first with cards and then with Simplified processes reducing 1 terminals since launch Dec-13 Now ~20% of total card transactions and growing
Slide 18: Notes
For personal use only 18 Notes
Slide 19: Conservative business settings
Conservative business settings Deposit Funding Wholesale Funding For personal use only % of Total Funding Portfolio Tenor (years) 1 3.8 63% 63% 3.7 62% 3.6 Dec 11 Dec 12 Dec 13 Dec 11 Dec 12 Dec 13 Liquidity Capital 2 Common Equity Tier 1 Liquids ($bn) (Basel III International) 128 137 11.4% 115 10.
Slide 20: Notes
For personal use only 20 Notes
Slide 21: David Craig, Chief Financial Officer
FOR THE HALF YEAR ENDED 31 DECEMBER 2013 For personal use only DAVID CRAIG CHIEF FINANCIAL OFFICER COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124 | 12 FEBRUARY 2014
Slide 22: Notes
For personal use only 22 Notes
Slide 23: A strong financial result
A strong financial result For personal use only Dec 13 vs $m Dec 13 Dec 12 Dec 12 Operating income 11,067 10,205 8% Operating expenses (4,751) (4,467) 6% Operating performance 6,316 5,738 10% Investment experience 81 84 (4%) Loan impairment expense (457) (616) (26%) Tax and non-controlling interests
Slide 24: Non-cash Items
Additional information For personal use only Non-cash Items $m Dec 13 Dec 12 Hedging and IFRS volatility Unrealised accounting gains and losses arising from the application of “AASB 139 Financial Instruments: Recognition and Measurement” (5) (10) Other Bankwest non-cash items (30) (33) Treasur
Slide 25: Statutory Profit
Statutory Profit For personal use only $m Dec 13 Dec 12 Cash NPAT 4,268 3,750 +14% Hedging and IFRS volatility (5) (10) Other non-cash items (56) (109) Statutory NPAT 4,207 3,631 +16% 25
Slide 26: Other Banking Income and Net Trading Income
Additional information Other Banking Income Net Trading Income For personal use only $m Dec 13 vs $m Dec 13 Dec 12 Dec 12 426 291 241 281 443 420 508 26 Commissions 1,081 993 9% 52 80 44 189 Lending fees 537 509 6% 124 87 120 102 23 Other 108 160 (33%) 42 321 Sub-total 1,726 1,662 4% 267 289 293 244
Slide 27: Income growth across all key lines
Income growth across all key lines Operating Income For personal use only +8% 1H14 vs 1H13 Average FUA 22% Funds & Average inforce premiums 12% insurance +12% Insurance income 9% Other banking +6% Commissions, fees, other $64m 4% income Underlying trading income1 $65m 52% CVA (Group)2 ($26
Slide 28: Notes
For personal use only 28 Notes
Slide 29: Income growth assisted by FX and timing benefits
Income growth assisted by FX and timing benefits Operating Income For personal use only $m Underlying +5.4% +1.6% +8.4% 150 164 454 94 11,067 10,753 10,205 1H13 Underlying Underlying 1H14 FX Benefit Timing 1H14 1 Banking Income Funds & Underlying Benefits Insurance Income 1 Includes the full period
Slide 30: Increase in retail bank funding costs since Jun 07
Additional information Increase in retail bank funding costs since Jun 07 For personal use only Basis Risk 33% x 1.37% Wholesale funding 2 Deposit 67% x 1.94% funding Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Dec 12 Dec 13 (6 month average) (6
Slide 31: Group NIM marginally lower in the half
Group NIM marginally lower in the half bpts 6 month NIM Group NIM For personal use only bpts 213 (6 Month Movement) 209 212 217 214 206 210 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 12 month NIM (2) 3 (3) (1) 217 3 basis point decline 214 due to lower cash rate environment 1 2H13 2H13 Funding costs Basis r
Slide 32: Investment Spend
Additional information Investment Spend For personal use only $m 1,286 1,237 1,179 1,075 1,020 1,036 639 655 638 538 583 563 647 582 589 537 541 437 473 FY08 FY09 FY10 FY11 FY12 FY13 FY14 1st Half 2nd Half 32
Slide 33: Productivity benefiting underlying expense growth
Productivity benefiting underlying expense growth Operating Expenses +6.4% For personal use only $m +1.5% Underlying 4,751 +1.7% 68 +1.7% 46 18 4,544 75 4,467 181 Cost-to-income (234) 130 44.2% 43.8% 42.9% 1 1H12 1H13 1H14 1H13 1H13 Productivity Compensation Other 1H14 1H14 FX Amortisation Investmen
Slide 34: Credit quality metrics
Additional information PD Ratings Migration Risk-Rated Portfolio 1 Loan Impairment Expense (Cash) to Gross Loans For personal use only 2 bpts Consumer 10 5 TCE ($bn) 37 Adjusted for changes to customer segment reporting 0 28 5 23 23 19 19 18 10 Total Upgrades Downgrades - excluding defaults 15 16 16
Slide 35: Sound credit quality
Sound credit quality Loan Impairment Expense Home Loan Arrears For personal use only 90+ days Loan Impairment Expense (Cash) to average GLA (basis points)1 1.0% 2 73 0.0% Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 RBS Bankwest ASB 41 3 Troublesome and Impaired Assets $bn 13.1 12.3 25 3 11.1 10
Slide 36: Provisioning versus peers
Additional information Collective Provisions1 to Credit RWA2 Provisions for Impaired Assets3 to Impaired Assets4 For personal use only 50.0% 1.45% 1.25% 40.0% 1.05% 30.0% 0.85% 0.65% 20.0% FY08 FY09 FY10 FY11 FY12 FY13 1H14 FY08 FY09 FY10 FY11 FY12 FY13 1H14 CBA Peer 1 Peer 2 Peer 3 CBA Peer 1 Peer
Slide 37: Provisioning
Provisioning Individual Provisions Collective Provisions For personal use only $m $m 2,837 2,858 2,858 2,870 Economic 823 overlay 847 892 875 Overlay portion unchanged 2,008 1,845 419 377 1,628 473 470 934 Bankwest 780 1,416 659 547 909 906 898 853 227 199 Consumer 157 149 847 866 812 712 720 Commer
Slide 38: Retail Banking Services
Additional information Retail Banking Services Home Loan Market Share For personal use only Dec 13 vs 28% $m Dec 13 25.3% Dec 12 26% Home loans 1,772 15% 24% Consumer finance 1,129 12% 22% Retail deposits 1,088 (4%) 18.7% 23.2% 20% Distribution 203 17% Other 54 (8%) 18% 13.6% 15.3% Total banking inc
Slide 39: Retail Banking Services
Retail Banking Services Dec 13 vs Dec 12 Improved Market Shares1 For personal use only Segment Income Operating Performance bpts Movements in market share Dec 13 vs Dec 12 15% 12% 11% 66 9% 47 6% 22 18 (4%) Home Consumer Retail Income Costs Operating Home Household Credit Personal 2 loans finance de
Slide 40: Business & Private Banking; Institutional Banking & Markets
Additional information Business & Private Banking Institutional Banking & Markets For personal use only Dec 13 vs Dec 13 vs $m Dec 13 $m Dec 13 Dec 12 Dec 12 Corporate Financial Services 657 2% Institutional Banking 1,006 4% Regional and Agribusiness 331 Markets 362 6% 2% Local Business Banking 644
Slide 41: Corporate
Corporate Business Lending Growth (RBA)1 NIM2 For personal use only bpts BWA (11.1%) 218 5.3% 5.3% 5.4% 2.9% 1.7% 205 206 196 (4.2%) (6.9%) BPB IB&M CBA BWA BWA CBA System legacy core Group Jun 12 Dec 12 Jun 13 Dec 13 book market BPB – Dec 13 vs Dec 12 IB&M – Dec 13 vs Dec 12 Segment Income Operatin
Slide 42: Wealth Management
Additional information Wealth Management Platform2 Half Year Net Flows For personal use only $bn Dec 13 vs 4.2 $m Dec 13 Dec 12 CFSGAM 468 15% 2.0 2.0 1.7 1.7 1.8 1 Colonial First State 421 11% CommInsure 350 5% Other - - Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 2 FirstChoice and Custom Solutions N
Slide 43: Wealth Management
Wealth Management Strong Investment Performance – 3 years FUA For personal use only 99% 100% 100% 100% 99% 100% $bn +19% 93% 92% 89% 19.0 260.4 11.3 240.4 1.1 9.9 219.2 39% 42% 3% Core Growth Global Global Property Global Fixed Cash First Property Infra Weighted Dec 12 Net Investment Jun 13 Net Inve
Slide 44: Deposits, term maturity and funding costs
Additional information Australian Deposits Term Maturity Profile1 For personal use only $bn Total Deposits $bn Weighted Average maturity 3.8yrs (excl CD’s) 366 320 261 5 182 219 8 172 2 7 167 122 8 25 184 19 1 19 148 16 94 97 10 10 CBA Peer 3 Peer 2 Peer 1 FY 2014 2015 2016 2017 2018 >2018 Household
Slide 45: Funding and Liquidity
Funding and Liquidity Funding Liquidity 1 For personal use only $bn $bn Source of funds Use of funds 137 17 (12) 128 115 53 63% (24) 38 57 Deposit 21 Funded Reg min $71bn 30 37 31 8 (16) 54 4 40 40 2 Equity IFRS & FX Net short term Customer New long term Long term Lending Other Assets funding deposi
Slide 46: Notes
For personal use only 46 Notes
Slide 47: Interim Dividend
Interim Dividend For personal use only cents 183 +12% 140% 164 120% 132 137 120 113 113 100% 107 80% 84% 71%1 70% 60% 61% 63% 63% 62% 61% 40% 1H07 1H08 1H09 1H10 1H11 1H12 1H13 1H14 20% Dividend per share Cash NPAT Payout Ratio 0% 1 Dividend payout ratios for 2013 have been restated to conform to th
Slide 48: Notes
For personal use only 48 Notes
Slide 49: Strong Capital Position
Strong Capital Position CET1 (International)1 For personal use only CET1 (International) of 11.4% well 10.6% 11.0% 11.4% above international peer average of 10% 6.9% +65% Strong organic growth in the half year with CET1 +40 bps and up over 65% since Jun 07 Jun 07 Dec 12 Jun 13 Dec 13 CET1 (APR
Slide 50: Notes
For personal use only 50 Notes
Slide 51: International peer Basel III CET1
International peer Basel III CET1 For personal use only 13.9 12.8 Peer bank average CET1 ratio 11.6 11.4 11.1 11.0 10.9 (ex. Australian banks): 10.8 10.8 10.7 10.6 10.6 10.5 10.4 10.3 10.3 10.0 9.9 9.9 9.9 9.8 9.8 9.8 10% 9.7 9.6 9.5 9.5 9.5 9.4 9.4 9.3 9.1 9.0 8.7 8.6 8.6 8.2 7.9 2 1 1 1 Agri. Bank
Slide 52: Notes
For personal use only 52 Notes
Slide 53: CBA CET1 under various regulatory regimes
CBA CET1 under various regulatory regimes1 For personal use only +4.2% +3.2% +4.2% +3.4% +4.2% 12.7% 12.7% 12.7% 11.7% 11.9% 11.4% 8.0% 8.5% D-SIB buffer 1.0% CBA if regulated in South Africa CBA if regulated in Singapore CBA if regulated in Canada CBA if regulated in Europe Internationally harmonis
Slide 54: Notes
For personal use only 54 Notes
Slide 55: CBA vs peers in each jurisdiction
CBA vs peers in each jurisdiction Under UK regime Under European regime Under Canadian regime For personal use only 12.7 12.8 12.7 11.7 10.8 10.7 10.4 9.9 9.6 9.8 9.8 9.7 9.5 9.3 9.1 9.0 8.6 8.7 8.2 7.9 1 CBA RBS CBA UBS BBVA Deutsche CBA RBC Barclays Lloyds SocGen Santander Scotiabank UniCredit Com
Slide 56: Notes
For personal use only 56 Notes
Slide 57: Financial Summary
Financial Summary Good momentum Cost-to-income lower For personal use only Operating Performance1 10% 44.2% 43.8% 42.9% 5% 3% 2 1H12 1H13 1H14 1H12 1H13 1H14 Conservative business settings Strong returns LT Wholesale Tenor Liquids Basel III EPS DPS RoE (years) $bn CET1 (Int’l) ($) ($) (%) +13% +12%
Slide 58: Notes
For personal use only 58 Notes
Slide 59: Ian Narev, Chief Executive Officer
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
Slide 60: Economic Summary - Australia
Additional information For personal use only Economic Summary - Australia 2010 2011 2012 2013 2014 (f) 2015 (f) Credit Growth % – Total 3.0 2.7 4.4 3.1 3½-5½ 4½-6½ Credit Growth % – Housing 8.0 6.0 5.0 4.6 5-7 5½-7½ Credit Growth % – Business -4.0 -2.2 4.4 1.0 1-3 3-5 Credit Growth % – Other Persona
Slide 61: 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
Slide 62: Notes
For personal use only 62 Notes
Slide 63: 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
Slide 64: Supplementary Slides
FOR THE HALF YEAR ENDED 31 DECEMBER 2013 For personal use only PAGE Strategy 65 Business Performance 85 Risk and Credit Quality 99 Capital, Funding & Liquidity 111 Economic Indicators 127 SUPPLEMENTARY SLIDES COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124 | 12 FEBRUARY 2014
Slide 65: CBA Overview
CBA Overview For personal use only Largest Australian bank by market capitalisation AA- / Aa2 / AA- Credit Ratings (S&P, Moodys, Fitch) Basel III CET1 (International) 11.4% Total assets of $782bn ~14.5 million customers ~51,000 staff 1,155 branches (includes Bankwest) #1 in household
Slide 66: Stakeholders
Stakeholders Customer Product Holdings1 For personal use only 12.3m Super fund unit holders ? 4.5m 10.8m 3.9m 2.1m 4.1m 1.7m 3.0m 1.8m 570k 680k 340k 1.2m 800k 51k Home Loans Credit Cards Retail Savings and Insurance Personal Loans Business Funds CommSec Shareholders Employees Transactions Relations
Slide 67: Strong contributor to Australian economy
Strong contributor to Australian economy Where does our income go? For personal use only 1H14 ($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
Slide 68: Return on Equity (Cash)
Return on Equity (Cash) For personal use only 600 550 20.4% 19.5% 500 18.7% 18.6% 18.2% 18.7% 15.8% 450 1.0% 1.1% 400 Return on 350 Assets 300 250 200 150 100 2008 2009 2010 2011 2012 2013 1H14 68
Slide 69: Bank Profitability
Bank Profitability ROE1 CBA Ranking For personal use only % Indonesia (Amongst ASX 100 companies) China Russia CBA Canada Rank2 Australia Market capitalisation (ASX) 2nd India Singapore Japan Dividends declared 1st South Korea United States Taxes Paid 3rd United Kingdom France Return-on-Equity (ROE)
Slide 70: Customer satisfaction and products per customer
Customer satisfaction and products per customer Retail Customer Satisfaction Products per Customer For personal use only 86.0% 3.20 CBA CBA 84.0% Peers Peers 3.00 82.0% 80.0% 2.80 78.0% 2.60 76.0% 74.0% 2.40 72.0% 2.20 70.0% 68.0% 2.00 Jun 07 Dec 13 Jun 07 Dec 13 % Satisfied ('Very Satisfied' or 'Fa
Slide 71: Business customer satisfaction by segment
Business customer satisfaction by segment 3 Micro Small For personal use only 7.8 7.8 7.6 7.6 7.4 7.4 7.2 7.2 7.0 7.0 6.8 6.8 6.6 6.6 6.4 6.4 6.2 6.2 Dec 10 Dec 11 Dec 12 Dec 13 Dec 10 Dec 11 Dec 12 Dec 13 CBA Peers CBA Peers Medium Large 7.8 8.5 7.6 7.4 8.0 7.2 7.5 7.0 6.8 7.0 6.6 6.5 6.4 6.2 6.0 D
Slide 72: Products per Customer and MFI
Products per Customer and MFI Products per Customer 8 MFI Customer Proportion10 For personal use only 3.04 2.90 % 2.83 2.71 0.53 2.55 0.48 2.36 0.50 CBA 0.49 2.20 0.48 0.21 Other (incl BWA) 0.20 0.46 0.22 0.21 22.6 0.44 0.20 0.74 0.20 0.56 0.65 0.70 32.7 0.18 0.51 0.44 0.42 20.0 1.52 WBC 13.4 1.40 1
Slide 73: Branch of the Future
Branch of the Future For personal use only 3 key pillars - proud people, simple and easy processes, leading technology Video conferencing facilities in all branches 1 Dedicated small business capability with 123 new specialists New concept branches being trialled across Australia 189 Smart A
Slide 74: CFSGAM – Global Reach
CFSGAM– Global Reach For personal use only Edinburgh London Frankfurt Toronto Paris New York Beijing Tokyo Shenzhen Hong Kong Australia and New Zealand Singapore AUM $110.6 billion UK, Europe and Middle East Jakarta AUM $51.1 billion Asia AUM $16.5 billion North America Sydney Auckland AUM $4.2 bill
Slide 75: CBA in Asia – strong growth
CBA in Asia – strong growth Cash NPAT1 For personal use only $m Strong contribution from Strong performance from Growth driven by strong China investments and Trade Finance and the investment performance and Indonesian proprietary weakening of AUD a weaker AUD businesses against USD 9 201 19 14 159
Slide 76: CBA in Asia – strong proprietary growth
CBA in Asia – strong proprietary growth 1 2 NPAT and Revenue Proprietary Customers For personal use only IFS Asia (A$m) 450 IFS Asia (‘000) 200 70 180 400 Cash NPAT CAGR - 41% 60 160 350 Revenue CAGR - 19% 140 50 300 120 250 40 100 200 30 80 150 60 20 100 40 10 50 20 - 0 - Dec 08 Jun 09 Dec 09 Jun 1
Slide 77: CBA in Asia
CBA in Asia Country Representation as at December 2013 For personal use only China Bank of Hangzhou (20%) – 140 branches Qilu Bank (20%) – 85 branches County Banking – 7 County Banks and 1 County Bank branch in Henan (5 Banks and 1 County Bank branch @ 80% and 2 Banks Beijing @ 100% shareholding) an
Slide 78: Sustainability progress
Sustainability progress In the first half of the financial year 2014, the Board-endorsed sustainability strategic framework with its five focus areas has continued to support the Group’s vision and the creation of enduring value for our customers, people, shareholders and the broader community. For
Slide 79: Sustainability scorecard
Sustainability scorecard Units 1H14 FY13 FY12 FY11 FY10 FY09 For personal use only Roy Morgan MFI retail customer % 83.5 83.0 79.0 75.2 75.6 73.0 satisfaction1 Rank 1st 1st 2nd 4th 2nd 3rd Customer Avg. score 7.5 7.4 7.3 7.1 7.0 satisfaction DBM Business Financial Services Monitor2 n/a Rank =1st =1s
Slide 80: Technology transformation
Technology transformation – delivering strategic competitive advantage For personal use only Revitalised Best-in-class Supporting front-line online, mobile Innovating in One customer and social the back-end CommBank interface platforms Single view of customer NetBank Legacy system Deep
Slide 81: Real time technology innovation
Real time technology innovation Everyday Settlement CommBiz Mobile Contactless Payments For personal use only Same day access to funds, everyday, Real-time cash flow information Fast, simple in-store payments for merchant customers Payment authorisation from anywhere CBA market leading (ca
Slide 82: Transaction volumes
Transaction volumes Branch ATMs For personal use only m m 130 (deposits & withdrawals) (all transactions1) 325 290 80 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1H14 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1H14 x2 x2 m 2 m 3 EFTPOS Internet m m (all transactions, including
Slide 83: Transaction volumes
Transaction volumes % of total transactions NetBank logins via mobile device* For personal use only 1H14 Weekly 75% By number By value 70% 70% 4% 13% 11% 65% 63% 39% 60% 21% 62% 46% 55% 4% 50% 45% EFTPOS ATM 40% Internet Branch Apr 12 Jan 13 Dec 13 * Tablet and mobile 83
Slide 84: Total High Impact system incidents
Total High Impact system incidents For personal use only 400 338 314 153 150 93 67 12 FY07 FY08 FY09 FY10 FY11 FY12 FY13 1H14 84
Slide 85: Market share
Market share 1 Dec 13 Jun 13 Dec 12 For personal use only % CBA BWA Group Group Group Home loans 21.2 4.1 25.3 25.3 25.1 Credit cards – RBA2 21.9 2.8 24.7 24.4 23.9 Other household lending3 17.1 1.1 18.2 16.9 16.6 Household deposits4 25.8 2.8 28.6 28.8 28.8 Retail deposits5 22.5 2.9 25.4 25.5 25.3 B
Slide 86: RBS – Month Periods
RBS – 6 Month Periods Dec 13 vs For personal use only $m $m Dec 13 Jun 13 Dec 12 Dec 12 Net interest income Home loans 1,665 1,567 1,431 16% Consumer finance 858 804 764 12% Retail deposits 890 874 937 (5%) Other 19 20 28 (32%) 3,432 3,265 3,160 9% Other banking income Home loans 107 103 104 3% Cons
Slide 87: RBS Cash Earnings
RBS Cash Earnings Financial Summary For personal use only Dec 13 vs $m $m Dec 13 Dec 12 Above system balance Home loans 1,772 15% growth 119 (42) Consumer Successful new 25 (84) 1,129 12% finance business campaigns (4%) 11% (44) 237 Strong growth in at call 6% (63) 12% savings products & 18% t
Slide 88: BPB – Month Periods
BPB – 6 Month Periods Dec 13 vs For personal use only $m Dec 13 Jun 13 Dec 12 Dec 12 Net interest income Corporate Financial Services 489 481 489 - Regional & Agribusiness 283 283 278 2% Local Business Banking 536 526 512 5% Private Bank 123 122 120 3% CommSec 70 68 73 (4%) 1,501 1,480 1,472 2% Othe
Slide 89: BPB Cash Earnings
BPB Cash Earnings Financial Summary For personal use only Dec 13 vs $m $m Dec 13 Dec 12 Corporate Lending and Deposit 63 (29) balances 9% and Financial 657 2% 11% offset by margin Services compression in Deposits 50 (13) 9% 797 Deposit balances 9% Regional & 331 2% offset by margin 2% (42%) A
Slide 90: IB&M – Month Periods
IB&M – 6 Month Periods For personal use only $m Dec 13 vs $m Dec 13 Jun 13 Dec 12 Dec 12 Net interest income Institutional Banking 615 551 587 5% Markets 89 93 110 (19%) 704 644 697 1% Other banking income Institutional Banking 391 412 379 3% Markets 273 217 230 19% 664 629 609 9% Total banking inco
Slide 91: IB&M Cash Earnings
IB&M Cash Earnings Financial Summary For personal use only $m 76 (37) $m Dec 13 Dec 13 vs Dec 12 Growth in asset Institutional balances partly offset 1,006 4% Banking by lower deposits (23) 20% 674 income. 46 40 (24) Favourable trading performance, partly Markets 362 6% 5% (78%) offset by less f
Slide 92: WM – Month Periods
WM – 6 Month Periods For personal use only Dec 13 vs $m Dec 13 Jun 13 Dec 12 Dec 12 Total operating income CFSGAM 468 433 406 15% 1 Colonial First State 421 400 379 11% CommInsure 350 327 332 5% 1,239 1,160 1,117 11% Operating expenses CFSGAM (276) (241) (235) 17% Colonial First State1 (272) (298) (
Slide 93: Wealth Management Cash Earnings
Wealth Management Cash Earnings Financial Summary For personal use only $m Dec 13 vs $m Dec 13 Dec 12 18 (47) Average AUM 19% 42 due to equity markets, (7) CFSGAM 468 15% strong investment 62 5% (4) performance and foreign 6% exchange benefits 11% 7% 7% 395 Improved market CFS1 421 11% conditio
Slide 94: New Zealand – Month Periods
New Zealand – 6 Month Periods Dec 13 vs For personal use only NZ$m Dec 13 Jun 13 Dec 12 Dec 12 Net interest income ASB 743 693 672 11% Other 5 (2) (3) Large Total NII 748 691 669 12% Other banking income ASB 177 167 179 (1%) Other (15) (16) (19) (21%) Total OBI 162 151 160 1% Total banking income AS
Slide 95: New Zealand Cash Earnings
New Zealand Cash Earnings Financial Summary For personal use only Dec 13 vs NZ$m NZ$m Dec 13 Dec 12 Lending and retail 74 (26) ASB deposits both 6% Operating 951 8% Careful margin Income management across the deposit portfolio 7 (14) Uplift in staff levels to ASB 7 grow frontline 7% (25%) (4
Slide 96: Bankwest – Month Periods
Bankwest – 6 Month Periods For personal use only Dec13 vs $m Dec 13 Jun 13 Dec 12 Dec 12 Net interest income 804 776 761 6% Other banking income 103 100 110 (6%) Total banking income 907 876 871 4% Operating expenses (401) (409) (416) (4%) Loan impairment expense (5) (32) (86) (94%) Net profit befor
Slide 97: Bankwest Cash Earnings
Bankwest Cash Earnings Financial Summary For personal use only Dec 13 vs $m $m Dec 13 Dec 12 81 (37) Modest growth in average interest Banking 15 33% 353 907 4% earning assets income Improved net 36 (94%) interest margin (4%) 258 4% Efficiency savings in technology Operating (401) (4%) expense
Slide 98: Home Lending Growth Profile
Home Lending Growth Profile Home Loan Balances Balance Growth1 by Channel For personal use only $bn % Six Monthly (Annualised) 37 14 (40) 8.5 (3) 8.0 6.7 285 293 5.7 5.1 5.6 5.5 4.5 3.7 4.0 3.1 2.2 Jun 13 New Redraw Repayments External Dec 13 Dec 12 Jun 13 Dec 13 fundings & interest / Other refinanc
Slide 99: Regulatory Exposure Mix
Regulatory Exposure Mix For personal use only Regulatory Credit Exposure Mix CBA Peer 1 Peer 2 Peer 3 Residential Mortgages 58% 36% 42% 56% Corporate, SME & Specialised Lending 24% 33% 41% 30% Bank 5% 13% 8% 4% Sovereign 9% 10% 6% 5% Qualifying Revolving 3% 3% 2% 3% Other Retail 1% 5% 1% 2% Total Ad
Slide 100: RBS home loan book quality very sound
RBS home loan book quality very sound For personal use only Portfolio dynamic LVR1 of 47% and portfolio LVR2 of 51% 78% of customers paying in advance of required monthly mortgage repayment 3 Maximum LVR of 95%4 for low risk customers Lenders Mortgage Insurance (LMI) is required for higher LVR loans
Slide 101: RBS Home Loan Portfolio Profile
RBS Home Loan Portfolio Profile For personal use only RBS Portfolio Dec 13 Jun 13 Dec 12 RBS Portfolio Dec 13 Jun 13 Dec 12 Total Balances - Spot ($bn) 293 285 276 Total Funding ($bn)1 37 63 29 Total Balances - Average ($bn)1 289 278 274 Average Funding Size ($’000)1 252 244 243 Total Accounts (m) 1
Slide 102: Consumer Arrears (Group)
Consumer Arrears (Group) Credit Cards 1 Personal Loans 1 For personal use only 2.0% 90+ days 2.0% 90+ days 1.0% 1.0% 0.0% 0.0% Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 RBS Bankwest ASB RBS Bankwest ASB Home Loans 1 RBS Home Loans 90+ days 90+
Slide 103: Consumer Arrears (RBS)
Consumer Arrears (RBS) Home Loans Home Loans by State For personal use only 2.5% 30+ days 30+ days 3.0% 2.5% 2.0% 2.0% 1.5% 1.5% 1.0% 1.0% 0.5% 0.5% 0.0% Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 08/09 09/10 10/11 11/12 12/13 NSW/ACT SA/NT Q
Slide 104: RBS Home Loans – LVR and Arrears by Vintage
RBS Home Loans – LVR and Arrears by Vintage Home Loan Dynamic LVR1 Profile Home Loan Arrears Rates by Vintage For personal use only 90+ days 70% Average 2.0% Dynamic LVR1 60% Dec 12 49% Jun 13 48% 1.5% Proportion of Total Portfolio 50% Dec 13 47% 40% FY09 1.0% FY08 30% FY07 20% 0.5% FY10 FY11 10% FY
Slide 105: RBS Home Loans – Stress Test
RBS Home Loans – Stress Test Observations Key Assumptions For personal use only Base Year 1 Year 2 Year 3 Unemployment 5.5% 7.0% 10.5% 11.5% Aggressive three-year “stress test” scenario Hours under-employed1 8.1% 11.4% 15.8% 18.4% of cumulative 32% house price decline and Cumulative House Prices n
Slide 106: Credit Exposure by Industry
Credit Exposure by Industry 1 For personal use only Dec 13 Dec 13 Jun 13 Jun 13 Consumer 54.9% 54.9% Agriculture 2.0% 2.0% Mining 1.6% 1.5% Manufacturing 1.8% 1.8% Energy 0.8% 0.9% Construction 0.7% 0.8% Retail & Wholesale 2.2% 2.2% Transport 1.6% 1.7% Banks 9.4% 9.9% Finance – other 3.4% 3.5% Busin
Slide 107: Sector Exposures
Sector Exposures Commercial Exposures1 by Industry Top 20 Commercial Exposures2 For personal use only AAA A+ BBB+ $m $bn Other Total to AA- to A- to BBB- A Banks 34.9 42.2 6.5 1.3 84.9 A+ A- Finance Other 10.9 11.2 3.4 4.7 30.2 BBB+ AA+ Property 0.3 5.5 11.9 38.3 56.0 A- Sovereign 75.6 1.1 0.5 0.3 7
Slide 108: Commercial Property Market
Commercial Property Market CBD Office Supply Pipeline1 CBD Vacancy Rates For personal use only % of Total Stock Peak 1990s Previous Current 40% 1991 Recession Previous Current (2ndt Half FY13) (1st Half FY14) (2nd Half FY13) (1st Half FY14) 40% 35% 35% 30% 30% 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0
Slide 109: Interest Rate Risk in the Banking Book
Interest Rate Risk in the Banking Book For personal use only 25bpts 27bpts 24bpts 29bpts 43bpts 47bpts $1,303m $1,403m Optionality $880m Risk Basis Risk $922m $781m $776m Optionality Risk Repricing and Yield Curve Basis Risk Risk Repricing & Yield Curve Risk Embedded Gain (offset to capital) Jun 11
Slide 110: Risk Weighted Assets
Risk Weighted Assets Total Risk Weighted Assets Credit Risk Weighted Assets For personal use only $bn $bn 4.2 (3.5) 0.8 1.3 0.4 334.2 (1.4) 2.5 4.2 (1.0) 329.2 282.2 279.7 Jun Jun 13 Credit Risk 3 Traded IRRBB Operational Dec 13 Dec 13 Jun 13 FX Volume Credit Data & 3 CRF & 4 Dec 13 Market Risk Risk
Slide 111: Wholesale Funding Costs
Wholesale Funding Costs 1 2 Marginal Funding Costs Average Long Term Funding Costs For personal use only bpts Indicative Long Term Wholesale Funding Costs % Margin to BBSW 200 2.00 Predicted funding costs if 169 rates remain Jun 12 1.75 unchanged 153 150 137 1.50 Margin to BBSW Current Market Rates
Slide 112: APRA & International Comparison
APRA & International Comparison For personal use only The following table provides details of the impact on CBA Group capital, as at 31 December 2013, of the 1 differences between the APRA Basel III prudential requirements and the requirements of the Basel 2 Committee on Banking Supervision (BCBS).
Slide 113: APRA & International Comparison
APRA & International Comparison For personal use only ♦ The APRA prudential requirements are more conservative than those of the BCBS, leading to lower capital ratios under APRA: 100% deduction is required from CET1 for equity investments in financial institutions and entities that are not consolida
Slide 114: Regulatory Expected Loss
Regulatory Expected Loss Basel III For personal use only Basel III Basel III 1 Dec 13 Jun 13 Dec 12 ($m) ($m) ($m) CBA Regulatory Expected Loss (EL) 4,516 5,682 5,497 Eligible Provision Collective provision 2 2,698 2,668 2,701 Individually assessed provisions 2,3 2,192 2,668 2,622 Other provisions 2
Slide 115: CET1 – Movement in 1H14
CET1 – Movement in 1H14 International APRA For personal use only 142 128 (96) (108) (8) 12 2 11.4% 11.0% (6) 10 (6) 8.5% 8.2% 1 1 Jun 13 Jun 13 Cash Dividend Credit FX Other Dec Dec 1313 Jun 13 Jun 13 Cash Dividend Credit FX Other Dec 13 Dec 13 NPAT RWA Movement NPAT RWA Movement 1 Dec 13 movement r
Slide 116: Group NIM Movement
Group NIM 12 Month Movement For personal use only bpts 4 (4) 5 (4) 3 6 basis point impact 214 210 of lower cash rate environment 1 1H13 1H13 Asset Pricing Funding costs Basis risk Portfolio mix Other 1H14 1H14 1 Includes Treasury, Replicating Portfolio, impact from change in Non Lending IEA’s and ot
Slide 117: Funding – Portfolio
Funding – Portfolio Funding Composition Wholesale Funding by Product For personal use only 1% 1% Customer Deposits 5% Structured MTN 3% 5% 7% 10% Vanilla MTN ST Wholesale Funding 2% Commercial Paper 5% LT Wholesale Funding maturing Debt Capital 8% < 12 months CDs LT Wholesale Funding maturing 5% 34%
Slide 118: UK and US Balance Sheet Comparison
UK and US Balance Sheet Comparison For personal use only United Kingdom USA Assets Liab + Equity Assets Liab + Equity Cash 8% 7% Equity 10% Equity Cash 12% Home Loans 19% Home Loans 13% 54% Deposits 56% Deposits Other Lending 39% Other Lending 44% 9% Long Term Other Fair 16% 10% Long Term Other Fair
Slide 119: Australian Banks – Safe Assets, Secure Funding
Australian Banks – Safe Assets, Secure Funding For personal use only Commonwealth Bank Balance Sheet Comparisons Assets – CBA’s assets are safer because: Assets Liab + Equity 52% of balance sheet is home loans, which are stable/long Cash 4% term 6% Equity Trading securities and other fair value
Slide 120: Funding – Issuance and Maturity
Funding – Issuance and Maturity 1 Funding strategy driven by market and investor diversity, appropriate maturity profile and overall cost For personal use only Term wholesale funding requirement has eased materially since FY 2010 $bn 60 50 9 Weighted Average Maturity 3.8yrs 40 Expected 30 fundin
Slide 121: Funded Assets
Funded Assets For personal use only $bn Dec Jun $bn 13 13 7 5 1 4 Transactions 96 88 21 Equity 47 Savings 121 107 1 Investments 197 199 Long term 137 wholesale Other 12 11 Total customer 728 426 405 724 deposits 690 118 Short term wholesale Wholesale 255 239 funding Total funding 681 644 Customer 42
Slide 122: Replicating Portfolio
Replicating Portfolio Replicating portfolio provides partial economic hedge for certain liabilities and assets that display For personal use only imperfect correlation between the cash rate and the product interest rate Actual and Forecast Scenario Replicating Portfolio Yield Official Cash Rate 20
Slide 123: Leverage ratio
Leverage ratio ♦ Supplementary measure to the risk For personal use only based capital requirements proposed APRA’s view of industry levels by the Basel Committee (November 2011) – Monitors build up of excessive leverage – Ratio is Tier 1 Capital as a percentage of total exposures (on and off balanc
Slide 124: Regulatory Change
Regulatory Change 2013 2014 2015 2016 2017 2018 For personal use only Capital conservation Bank capital (Basel III) Leverage ratio buffer - implemented (CET1 Capital - observation period - to be implemented min 4.5%) Leverage ratio (publicly disclosed) (CET1 2.5%) Life and general - to be implemente
Slide 125: Dividend per share
Dividend per share Payout For personal use only ratio (cash) 74.2% 75.0% 78.2% 73.9% 73.2% 75.0% 75.9%1 89% 81%1 84% 70% 84% 71%1 87% 88% 61% 62% 63% 63% 84%74% 61% 183 cents 107 149 113 153 113 115 120 170 132 188 137 197 164 200 2007 2008 2009 2010 2011 2012 2013 2014 Interim Final 1 Dividend payo
Slide 126: Notes
For personal use only 126 Notes
Slide 127: Australia in perspective
Australia in perspective Australian growth will be sub-trend While other advanced economies For personal use only in the near-term are picking up GDP GROWTH AUSTRALIAN GROWTH FORECASTS % (annual % change) % (for 2014) 10 10 Economist's consensus EMDE's IMF 5 5 OECD Trend growth (3%pa) RBA (midpoint)
Slide 128: The global backdrop
The global backdrop Synchronised recovery in Trend improvement in the key For personal use only advanced economies Chinese growth drivers ADVANCED ECONOMY PMI's CHINA: KEY ECONOMIC INDICATORS Index (3-month moving average) Index % (monthly % change) % 65 65 3 3 UK CBA TEI & THE CASH RATE %pa %pa 55
Slide 129: Australia in perspective
Australia in perspective Unemployment remains at The period of rising leverage For personal use only relatively low levels has finished % UNEMPLOYMENT RATE % CREDIT % % (% of GDP) 12 12 100 100 Euro zone Household US 75 75 8 8 UK Australia 50 50 4 4 Business Japan 25 25 Source: CEIC 0 0 0 0 Jan 05 J
Slide 130: The resources boom
The resources boom is the defining feature of the Australian landscape over the past 10 years The resources boom has really been Lower mining construction For personal use only three overlapping waves will result in job losses THREE BOOMS MINING CAPEX & JOBS % % (start=100) 3 9 Index 210 Index 440 J
Slide 131: Policy settings are stimulatory
Policy settings are stimulatory The cash rate has been cut by The exchange rate depreciated For personal use only 225bps since 2011 by 14% during 2013 OFFICIAL INTEREST RATES THE AUD % % Index USD 90 1.20 8 8 80 1.05 6 6 UK TWI Australia (lhs) 70 0.90 4 4 AUD/USD NZ US (rhs) 2 2 60 0.75 Euro Canada
Slide 132: Policy is working
Policy is working Building approvals have surged Commercial finance commitments For personal use only in response to lower lending rates have turned up APPROVALS & RATES LENDING & NON-MINING CAPEX %pa %pa (annual % change) % (annual % change) % 40 -40 40 70 Building approvals Capex (lhs) (ex mining)
Slide 133: Transition to non-mining growth: capex
The transition from mining to non-mining led growth: non-mining business capex The fundamentals favour a lift in A lower currency should assist For personal use only non-mining investment non-mining capex activity CAPITAL STOCK THE AUD & CAPEX %pa %pa % (% of nominal GDP) % 320 36 -30 50 Non-mining
Slide 134: Transition: residential construction
The transition from mining to non-mining led growth: residential construction Residential construction upswings add For personal use only Housing construction is rising significantly to GDP growth DWELLING APPROVALS RESIDENTIAL CONSTRUCTION '000 '000 % (contribution to GDP during upswing) % (private
Slide 135: Transition: residential construction
The transition from mining to non-mining led growth: residential construction Stronger population growth is lifting Prior underbuilding has led to a For personal use only demand for housing significant level of pent-up demand POPULATION DRIVERS CBA: HOUSING DEMAND & SUPPLY '000 '000 '000 '000 450 45
Slide 136: Upside inflation risks are appearing
Upside inflation risks are appearing While domestic inflation looks to remain high For personal use only A lower AUD is boosting imported inflation because of structural factors INFLATION CONSUMER PRICES % (annual % change) % % (annual % change) % 9 9 12 12 Other Non- Structural? Goods & Services tr
Slide 137: Housing market - summary
Housing market - summary For personal use only An orderly adjustment occurred in the Australian housing market after the Global Financial Crisis. The adjustment was characterised by slower credit growth, increased savings and lower servicing ratios. Australian house prices underwent a modest cor
Slide 138: Credit growth is slowly edging higher
Credit growth is slowly edging higher Credit growth is lifting slowly, But, elevated savings means that For personal use only particularly housing credit consumer caution remains RBA CREDIT AGGREGATES HOUSEHOLD CREDIT & SAVINGS % (annual % change) % % %pa 30 30 -6 24 Household Housing credit credit
Slide 139: Australian dwelling prices are rising again
Australian dwelling prices are rising again, after a period of stabilisation Dwelling prices Dwelling price growth For personal use only DWELLING PRICES 3 Years 12 mths 6 mths Index Index to to to change (%) 700 Sydney 700 Dec 13 Dec 13 Dec 13 Melbourne Sydney 13.4 14.5 9.4 550 Perth 550 Melbourne 0
Slide 140: The transmission of higher house prices
The transmission of higher house prices Rising house prices boosts wealth, encourages Higher house prices are positive for For personal use only construction activity and lifts sentiment wealth positions HOUSING & THE CONSUMER CBA H/HOLD WEALTH INDICATOR % (annual % change) % (annual % change) 40 9
Slide 141: Urbanisation rates important in assessing house prices
Urbanisation rates important in assessing house prices Urban population Density & house prices Dwelling prices For personal use only URBAN POPULATION DWELLING PRICES (% in two largest cities) DENSITY & HOUSE PRICES (ratio to household income) %80urban pop NZ in 2 largest *Source: OECD/RBA cities Aus
Slide 142: House price bubble characteristics not evident in Australia
Factors that typically characterise a house price bubble are not evident in Australia Housing “Bubble” – For personal use only Current position in Australia typical characteristics Unsustainable asset prices Prices supported by the excess of demand over supply Australia’s population continues to
Slide 143: Australian vs US housing markets
Significant differences between Australian and US housing markets minimise risk of a US style house price collapse CBA / Aust US Australian mortgage product For personal use only Principal and interest amortising 25/30 Unemployment 5.8%1 6.7%2 year loan Variable interest rate set at bank’s No-Re
Slide 144: Economic Summary – New Zealand
New Zealand For personal use only Economic Summary – New Zealand 2010 2011 2012 2013 2014 (f) 2015 (f) Credit growth (annual – June vs June) 0.7 1.5 2.5 4.1 4-6 4-6 Household credit 2.5 1.1 1.8 5.1 5-6 4-6 Business credit -7.9 1.1 4.0 1.6 2-4 4-6 Agriculture credit 2.3 -0.9 3.1 4.4 3-5 5-7 GDP growt
Slide 145: Customer Satisfaction - Sources
Customer Satisfaction - Sources 1 Roy Morgan Research Retail Main Financial Institution (MFI) Customer Satisfaction. Australian population 14+, % “Very Satisfied” For personal use only or “Fairly Satisfied” with relationship with that MFI. 6-month rolling average. The ranking refers to CBA’s positio
Slide 146: Productivity Metrics - Definitions
Notes Productivity Metrics - Definitions For personal use only Customer service transactions per FTE - Average number of transactions completed per week in branch by Retail Customer Service Representatives. % Personal loans funded same day - Percentage of personal loans funded on day of application
Slide 147: Sustainability scorecard notes
Notes Sustainability scorecard For personal use only Complete definitions for scorecard metrics are available at www.commbank.com.au/sustainability2013 All metrics capture data from Australian domestic operations only (excluding Bankwest), unless otherwise stated. 1 Proportion of each financial inst
Slide 148: Half Year Ended December 2013
FOR THE HALF YEAR ENDED 31 DECEMBER 2013 For personal use only IAN NAREV DAVID CRAIG CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124 | 12 FEBRUARY 2014
Commonwealth Bank of Australia — H1 2014 Earnings Presentation on 6ix