Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — FY2016 Earnings Presentation
146 slides from Commonwealth Bank Of Australia's earnings presentation, Aug 10, 2016
Slide 1: Results Presentation for the Full Year Ended 30 June 2016
For personal use only RESULTS PRESENTATION Results Presentation FOR THE FULL YEAR ENDED 30 JUNE 2016 For the half year ended 31 December 2009 COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124 | 10 AUGUST 2016 10 February Commonwealth Bank of Australia ACN 123 123 124 2010
Slide 2: Our Strategy
Our Strategy Customer Focus For personal use only People Productivity Technology Strength Capabilities “One CommBank” Growth Opportunities Continued growth in business and institutional banking Disciplined capability-led growth outside Australia TSR Outperformance 2
Slide 3: Our Vision and Values
Our Vision and Values Our Vision Our Values For personal use only To excel at Integrity securing and Accountability enhancing the financial Collaboration wellbeing of Excellence people, businesses Service and communities 3
Slide 4: For personal use only
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Slide 5: Overview
Overview For personal use only Result again built on the consistent execution of a 10 year strategy: - Customer satisfaction, innovation, strength Changing operating context, impacting returns: - Economic sentiment - Interest rates - Competitive intensity - Regulatory compliance/costs Long-ter
Slide 6: Snapshot FY16
Additional Snapshot FY16 1 information Financial Operating Performance 2 For personal use only Cash earnings ($m) 9,450 3% Group ($m) 14,177 6% ROE (Cash) 16.5% (170) bpts Retail Banking Services ($m) 6,988 10% Cash EPS ($) 5.55 - Business and Private Banking ($m) 2,419 6% DPS ($) 4.20 - Institution
Slide 7: Cash NPAT up 3%
Cash NPAT up 3% For personal use only Jun 16 vs Jun 16 Jun 15 Statutory Profit ($m) 9,227 2% Cash NPAT ($m) 9,450 3% ROE – Cash (%) 16.5% (170) bpts Cash Earnings per Share ($) 5.55 - Dividend per Share ($) 4.20 - 7
Slide 8: Business Unit Summary
Additional information Business Unit Summary FY16 vs FY15 For personal use only % of Cost-to- 1 Operating Operating Cash Business Unit Group Costs LIE Income Income Performance NPAT NPAT Jun 16 RBS 47% 8% 3% 10% 5% 11% 33% BPB 17% 5% 4% 6% 18% 5% 38% IB&M 12% 2% 11% (3%) 51% (9%) 38% 2 IB&M 13% 3% 1
Slide 9: Divisional Contributions
Divisional Contributions Cash NPAT FY16 1 For personal use only Income 8% C:I 150 bpts to 32.6% C:I 30 bpts to 41.7% Reduced impairment credit Business loans 6% Loan impairment 18% Home loans 9% C:I 110 bpts to 37.3% Markets2 14% Loan impairment 46% + 11% Loan im
Slide 10: Customer Satisfaction
Additional information Customer Satisfaction Internet Banking For personal use only Satisfaction with Internet Banking Services via "Website" or "App“ 97% 95% 93.3% 93% 91% 89% 87% 85% Dec 14 Jun 15 Dec 15 Jun 16 Refer notes slide at back of this presentation for source information CBA Peer 1 Peer 2
Slide 11: Continued focus on the customer
Continued focus on the customer Customer Satisfaction For personal use only Retail #1 13 consecutive months to Jun 16 Business = #1 First or equal first - all key segments Wealth #1 Regained #1 in adviser satisfaction in Apr 16 IFS #1 PT Bank Commonwealth (Indonesia) Internet #1 First or e
Slide 12: MFI Share
Additional information MFI Share MFI Share MFI Share by Age For personal use only % Date Legend Overall 33.9% 34.2 33.9 33.1 Jun 16 Jun 15 Jun 14 44.4 43.3 42.9 Opportunity 20.2 19.4 19.2 Gap MFI Share % 13.5 13.5 13.6 30.5 11.4 11.6 11.9 28.6 27.2 Jun 16 Jun 14 CBA Peer 3 Peer 1 Peer 2 14-17 18-24
Slide 13: Customer focus - more needs met
Customer focus - more needs met Retail Customer Satisfaction Customer Needs Met For personal use only % Satisfied ('Very Satisfied' or 'Fairly Satisfied') (#) 87% 82.8% 3.2 3.15 3.0 82% 2.8 77% 2.6 72% 2.4 67% 2.2 62% 2.0 Jun 06 Jun 16 Jun 06 Jun 16 CBA Peers Refer notes slide at back of this presen
Slide 14: Market Share
Additional Market Share 1 information % Jun 16 Dec 15 Jun 15 For personal use only Home loans 25.3 25.1 25.2 Credit cards – RBA2 24.4 24.7 24.3 Other household lending3 16.8 16.9 17.4 Household deposits4 29.2 29.1 29.0 Business lending – RBA 16.9 17.0 17.0 Business lending – APRA 18.7 18.7 18.8 Busi
Slide 15: Ongoing volume growth
Ongoing volume growth Balance Growth 1 For personal use only 12 months to Jun 16 Driven by continued strong growth in Transaction Accounts ASB – strong growth across the Above system growth in board: housing, business, rural 2H16 12.7% BPB > system in 2H16 IB&M < system in 2H16 9.5% 8.8% 8.8% 9.1% 6
Slide 16: Deposits
Additional information Deposits Deposits vs Peers1 Deposits in LCR calculation2 For personal use only June 2016 ($bn) As at 31 March 2016 ($bn) 160 441 140 CBA overweight more 369 stable deposits 120 Other CBA 210 308 deposits Peer 1 100 Peer 2 187 244 Peer 3 80 194 138 60 Household 40 deposits 231
Slide 17: Transaction Banking
Transaction Banking 1 Group Transaction Balances Strong growth across divisions For personal use only $m FY16 v FY15 40% + 22% 34% 126,780 20% Group 103,528 14% +22% 14% 88,351 Ex 15% offset 14% 17% 9% accounts 2 FY14 FY15 FY16 RBS BPB IB&M BWA NZ RBS New Transaction Accounts3 Innovation & Simplicit
Slide 18: Innovation and Simplicity
Innovation and Simplicity Simplified Personal Loans Simplified Home Loans For personal use only Easy Easy application conversion and approval of with focus on conditional financial to full wellbeing approval Enhanced Property Search Instant Banking Now across Open, fund key platforms and access – pr
Slide 19: Innovation and Simplicity
Innovation and Simplicity Paperless Statements Instant Banking Photo a bill For personal use only October 2015 May 2016 June 2016 Move to paperless New transaction BPAY details statements with a single accounts opened < 5 automatically click - over 800,000 minutes + instant populated from photo addi
Slide 20: Innovation and Simplicity
Innovation and Simplicity OnDeck Kounta on Albert Innovation Labs For personal use only Awarded Best Fintech/Bank 1 Collaboration Melbourne “pop-up” February 2016 March 2016 May 2016 40k+ Albert terminals, Sydney, Hong Kong, 24 apps incl. Kounta - London - Exclusive banking Supporting an referral ar
Slide 21: Innovation and Simplicity
Innovation and Simplicity Easy Alerts Albert TYME For personal use only Canstar Innovation Award October 2015 Roll-out May 2016 Customisable push Now with 40,000+ Customer on-boarding notifications for devices in market in ~5 minutes with deposits, high/low biometric balance & payment 60% new mercha
Slide 22: Productivity
Additional information Productivity Productivity Metrics Personal Loans – Same day funding For personal use only % of new loans funded same day1 Measure Metric Timeframe Asset Finance Settlement Received to Funded FY16 vs Approval 42% (for the new Fast Lane abridged FY15 – turnaround settlement proc
Slide 23: Productivity + Efficiency + Investment
Productivity + Efficiency + Investment Productivity Cost-to-Income Reinvestment For personal use only (%) ($m) Asset Finance 73% Approval (Turnaround time) +10% 44.6 SME Loan 1,373 72% Approval - IFS (Turnaround time) Branches 12% & Other 42.8 1,246 42.4 Risk & Colonial 37% Compliance Customer
Slide 24: Notes
For personal use only 24 Notes
Slide 25: Strength
Strength Deposit Wholesale Capital Liquidity3 For personal use only Funding Funding Basel III % of Total Funding Portfolio Tenor2 $bn Common Equity Tier 1 (years) LCR 14.4% 120% 120% 12.7% Internationally comparable1 134 132 10.6% 4.1 65% 66% 3.8 59 CLF1 9.1% 66 HQLA1 75 assets 66 Jun 15 Jun 16 Jun
Slide 26: Notes
For personal use only 26 Notes
Slide 27: Results Presentation - Chief Financial Officer
For personal use only RESULTS PRESENTATION FOR THE FULL YEAR ENDED 30 JUNE 2016 Results Presentation D AV I D C R A I G CHIEF FINANCIAL OFFICER For the half year ended 31 December 2009 COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124 | 10 AUGUST 2016 10 February Commonwealth Bank of Australia ACN 12
Slide 28: Non-cash items & Tax
Additional information Non-cash items & Tax Non-cash items Tax For personal use only $m Jun 16 Jun 15 Effective Tax Rate “cash basis” (%) Cash NPAT 9,450 9,137 27.5% 27.2% 27.3% Non-cash items Hedging and IFRS volatility Unrealised accounting gains and losses arising from the application of “AASB
Slide 29: Good operating result
Good operating result For personal use only Jun 16 vs $m Jun 16 Jun 15 Operating income 24,606 5% Operating expenses (10,429) 4% Operating performance 14,177 6% Investment experience 141 (33%) Loan impairment expense (1,256) 27% Tax and non-controlling interests (3,612) 4% Cash NPAT 9,450 3% Statuto
Slide 30: Other Banking Income
Additional information Other Banking Income Other Banking Income Trading Income For personal use only $m $m 1,087 4,860 1,039 4,811 946 4,283 558 548 Trading Other 2 378 188 1,087 424 Trading 946 1,039 371 Lending 1,005 1,010 1,037 fees 783 Sales 654 573 Commissions 2,112 2,209 2,215 (39) (74) CVA /
Slide 31: Operating Income up 5%
Operating Income up 5% $m For personal use only +5.3% Funds & Insurance +3% +4.7% before FX Average FUA 4% Insurance income flat 2,811 2,730 4,860 Other Banking Income +1% 4,811 FVA / CVA ($35m) Trading (ex FVA/CVA) 8% OBI (ex Trading) flat 16,935 15,827 Net Interest Income +7% Volume 8%
Slide 32: Group NIM Movement
Additional information Group NIM 12 Month Movement For personal use only 214 bpts 209 207 210 206 206 FY14 FY15 FY16 2 - - 209 (2) 207 (2) 206 206 ex Treasury Group NIM 3bps ex Treasury & Markets & Markets FY15 Asset Funding Portfolio Capital & Treasury & FY16 pricing costs & mix Other Markets Bas
Slide 33: Underlying Group NIM down 1bpt
Underlying Group NIM down 1bpt 1 6 Month Movement For personal use only bpts 212 207 208 206 209 204 206 205 Dec 14 Jun 15 Dec 15 Jun 16 208 1 2 206 (3) (1) (1) 206 205 ex Treasury & Markets 1H16 Asset Funding Portfolio Capital & Treasury 2H16 pricing costs & mix Other & Markets Basis risk 1. Exclud
Slide 34: Continuing to Invest
Additional information Continuing to Invest Gross Investment Spend Investment Spend For personal use only $m % of total 1,373 1,286 1,246 Branches 1,237 11% 12% 12% 1,179 1,182 & Other 24% 692 30% Risk & 639 37% Compliance 2nd Half 638 655 593 651 65% 58% Productivity 647 681 51% & Growth 1st Half 5
Slide 35: Underlying expenses up 3%
Underlying expenses up 3% Total Operating Expenses For personal use only $m Underlying +3.0% +4.4% 71 65 71 250 (21) 10,293 10,429 9,993 FY15 Staff Amortisation Other FY16 Investment FX FY16 underlying Spend increase 35
Slide 36: Credit quality
Additional information Credit quality Home Loan Arrears LIE to Gross Loans For personal use only 1.5% 90+ days Consumer (bpts) Bankwest RBS ASB 1.0% 19 18 18 18 17 17 0.5% 0.0% Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 FY11 FY12 FY13 FY14 FY15 FY16 Group Home Loan Arrears LIE to Gross Loans C
Slide 37: Sound credit quality
Sound credit quality Loan Impairment Expense Consumer Arrears For personal use only CBA Group (bpts) Personal Loans 90+ Days Credit Cards Home Loans 1.46% 1.34% 1.23% 1.20% 73 1.02% 1.01% 1.05% 0.99% 0.62% 0.50% 0.52% 0.54% Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 41 Troublesome and Impaired
Slide 38: Credit Quality
Additional information Credit Quality Commercial Portfolio Quality For personal use only % of book rated investment grade 67.5 68.8 68.3 69.8 69.9 69.8 68.7 500 TCE ($bn) 400 Other 300 BBB 200 A 100 AAA/AA 0 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Impaired Assets to GLAs CBA Peer 1 2.0% Pee
Slide 39: Strong provisioning
Strong provisioning Individual Provisions Collective Provisions For personal use only $m $m 2,779 2,762 2,818 695 Economic Overlay 762 755 Overlay unchanged 1,127 187 Bankwest 347 264 944 389 887 209 1,077 267 941 981 128 169 Consumer 128 610 566 492 Commercial 729 762 859 Jun 14 Jun 15 Jun 16 Jun 1
Slide 40: RBS
Additional information RBS Retail Banking Services Home Loan Market Share For personal use only CBA Peer 1 FY16 vs Peer 2 Peer 3 $m FY16 FY15 27% 25.3% Home loans 4,100 9% 25% Consumer finance 2,520 4% 23.2% 23% Retail deposits 3,149 11% 21% Distribution 427 8% Other 165 0% 19% Total banking income
Slide 41: Retail Banking Services
Retail Banking Services FY16 vs FY15 Cost-to-Income Ratio For personal use only Income Operating Performance % 11% 10% 9% 35.2 8% 34.1 4% 3% 32.6 Home Consumer Retail Income Costs Operating Jun 14 Jun 15 Jun 16 loans finance deposits performance RBS Margin Retail Deposit Mix bpts $bn + 7% 266 266 26
Slide 42: Corporate
Additional information Corporate Business & Private Banking Institutional Banking & Markets For personal use only FY16 vs FY16 vs $m FY16 $m FY16 FY15 FY15 Corporate Financial Services 1,395 6% Institutional Banking 2,164 0% Regional and Agribusiness 646 1% Markets 689 9% Local Business Banking 1,13
Slide 43: Corporate
Corporate BPB – FY16 vs FY15 IB&M – FY16 vs FY15 For personal use only Income Operating Performance Income Operating Performance 11% 14% 7% 6% 9% 6% 5% 5% 4% 11% 1% 3% 0% (3%) CFS RAB LBB Private Comm Income Costs Operating 2% Bank Sec performance Institutional Markets Markets Income Costs Operating
Slide 44: Wealth Management
Additional information Wealth Management Wealth Management General Insurance Claims For personal use only FY16 vs Net Event Claims $ $m FY16 FY15 Colonial First State (CFS)1 929 7% CFSGAM 842 (1%) CommInsure (CI) 622 (2%) Total operating income 2,393 2% 2H13 1H14 2H14 1H15 2H15 1H16 2H16 Operating e
Slide 45: Wealth Management
Wealth Management FY16 vs FY15 Funds Under Administration For personal use only Income1 Operating Performance $bn 7% 15% +2% 1.3 1.1 Investment experience 2 134.3 52% 131.9 2% Jun-15 Jun 15 Net Net Flows Markets and Other Markets Jun-16 (1%) Jun 16 (3%) Flows & Other (2%) (6%) Op. Spot CFS CFSGAM
Slide 46: Dividend per Share
Additional information Dividend per Share Payout ratio (cash) For personal use only 75.0% 78.2% 73.9% 73.2% 75.8% 75.9% 75.1% 75.1% 76.5% 81% 81% 82% 90% 81% 70% 71% 84% 70% 84% 71% 87% 62% 62% 63% 63% 84%74% cents 113 153 113 115 120 170 132 188 137 197 164 200 183 218 198 222 198 222 FY08 FY09 FY1
Slide 47: Dividend maintained
Dividend maintained cents per share For personal use only 420 420 401 364 334 320 290 266 228 75.0% 78.2% 75.8% 75.9% 75.1% 75.1% 76.5% 73.9% 73.2% FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Cash NPAT Payout Ratio 47
Slide 48: Pro-forma Capital
Additional information Pro-forma Capital For personal use only Estimated increase Mortgage risk weight change has Entitlement offer in average risk no impact on the Group’s (Aug-15) raised weight for the internationally comparable ratio. $5.1bn or 131 Group’s mortgage Capital raising strengthened th
Slide 49: Strong Capital Position
Strong Capital Position CET1 For personal use only bpts 14.4% 118 (6) 10.6% 10.2% (72) 9.1% 8.0% Jun 15 Dec 15 Dec 15 Cash RWA Jun 16 APRA Jun 16 APRA APRA Interim NPAT & Other APRA Min Int'l 1 Dividend (Net of DRP) 1. Internationally comparable capital - refer glossary for definition 49
Slide 50: Notes
For personal use only 50 Notes
Slide 51: International Peer Basel III CET1
International Peer Basel III CET1 G-SIBs in dark grey For personal use only 17.7 APRA top quartile 1 14.9 14.7 14.5 14.4 14.0 13.9 13.5 13.5 13.5 13.2 13.0 12.9 12.5 12.4 12.1 12.1 11.9 11.8 11.6 11.6 11.4 11.4 11.4 11.3 11.3 11.1 10.8 10.8 10.7 10.6 10.6 10.5 10.3 10.3 10.2 10.110.1 Santander 3 Int
Slide 52: Funding
Additional information Funding Funding Composition Average Long Term Funding Costs For personal use only 200 Margin to BBSW (bpts) Customer Deposits 66% 175 ST Wholesale Funding1 14% 150 LT Wholesale Funding > 12 months 10% 125 LT Wholesale Funding ≤ 12 months 3% 100 Predicted LT Covered Bonds 3% 75
Slide 53: Funding and Liquidity
Funding and Liquidity Funding Long Term Funding For personal use only Portfolio Tenor (years)4 $bn Source of funds Use of funds 3.9 4.1 3.8 66% Deposit (27) Funded 38 Jun 15 Dec 15 Jun 16 Liquidity 5 1 $bn 120% 123% 120% LCR NSFR (56) 132 140 134 40 >100% 66 66 59 CLF6 (1) (3) 8 66 74 75 HQLA6 Equit
Slide 54: Notes
For personal use only 54 Notes
Slide 55: Summary
Summary A volume driven income result Good operating performance For personal use only FY16 vs FY15 +5% +10% (Income less operating expenses, $m) FUA FY16 vs FY15 F&I +3% +4% 6,988 OBI +1% Volume +6% NII +7% -1% +4% +8% 2,419 +15% Flat 1,843 1,444 717 1,082 1 2 Total Operating Income RBS BPB IB&M WM
Slide 56: Notes
For personal use only 56 Notes
Slide 57: Results Presentation - Chief Executive Officer
For personal use only RESULTS PRESENTATION FOR THE FULL YEAR ENDED 30 JUNE 2016 IAN NAREVResults Presentation CHIEF EXECUTIVE OFFICER For the half year ended 31 December 2009 COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124 | 10 AUGUST 2016 10 February Commonwealth Bank of Australia ACN 123 123 124
Slide 58: Capital
Additional information Capital CET1 For personal use only 2 +367% 10.6% 9.3% 42 9.1% 8.2% 7.5% 33 7.3% 31 6.6% 27 5.6% 5.0% 24 4.5% 22 20 17 11 9 Jun 07 1 Jun 08 1 Jun 09 1 Jun 10 1 Jun 111 Jun 12 1 Jun 13 Jun 14 Jun 15 Jun 16 CET1 amount ($bn) CET1 ratio (%) 1. Calculated Basel III equivalent 2. Gr
Slide 59: Depositors and shareholders fund our lending to borrowers
Depositors and shareholders fund our lending to borrowers For personal use only Depositors Shareholders Borrowers 11.3 million Over 800,000 1.9 million deposit customers Australian households are direct shareholders and home loan customers millions more individuals through their superannuation funds
Slide 60: Economic Indicators (June FY)
Additional information Economic Indicators (June FY) GDP % CPI% Unemployment Rate % For personal use only GDP Nominal GDP 5.7 6.2 3.6 5.9 2.7 5.8 5.8 2.9 2.9 4.0 2.3 2.3 2.4 2.5 2.3 1.7 5.4 2.3 2.3 1.4 1.3 5.2 1.6 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2017 2
Slide 61: Outlook
Outlook For personal use only Solid underlying GDP growth and stable employment, but nominal growth remains weak Globally, monetary stimulus unable to offset low confidence from weak incomes and instability “More of the same” the most likely scenario, but with some downside risk For CBA – co
Slide 62: Result quality
Additional information Result quality Group NIM ROE1 For personal use only Cash basis % CBA ROE for 2H16 2.4 CBA 2.3 Peers 15.6% 2.2 14.2% 14.1% 2.1 2.0 1.9 9.7% 1.8 1.7 Mar 13 Sep 13 Mar 14 Sep 14 Mar 15 Sep 15 Mar 16 Jun 16 CBA Peer 3 Peer 2 Peer 1 Capitalised Software2 Capital3 $m APRA CET1 10.6%
Slide 63: Summary
Summary For personal use only Result again built on the consistent execution of a 10 year strategy: - Customer satisfaction, innovation, strength Changing operating context, impacting returns: - Economic sentiment - Interest rates - Competitive intensity - Regulatory compliance/costs Long-term
Slide 64: Supplementary Slides
For personal use only RESULTS PRESENTATION FOR THE FULL YEAR ENDED 30 JUNE 2016 S U P P L E M E N TA R Y S L I D E S O v e r v i e w, C u s t o m e r s & P e o p l e 65 Technology & Innovation 83 Risk & Credit Quality 95 Capital & Funding 111 Economic Indicators 125 Results Presentation For the half
Slide 65: CBA Overview
CBA Overview Australia NZ Other Total For personal use only People, Customers 13.1m 2.3m 0.5m 15.9m Customers & Staff 41,400 5,800 4,500 51,700 Delivery Branches 1,131 133 145 1,409 ATMs 4,381 445 172 4,998 Retail #1 Customer Business = #1 Satisfaction Internet Banking #1 Main Financial Institution
Slide 66: Sector leading returns
Sector leading returns Cash ROE For personal use only CBA Ranking1 Market Return Return Dividend Taxes Cap on on declared Paid (ASX) Equity Assets 1st 1st 1st 31st 81st 19.5% 18.7% Return 18.4% on 18.2% 18.2% 1.0% 1.0% Assets 16.5% FY11 FY12 FY13 FY14 FY15 FY16 1. Most recent annual results data amo
Slide 67: Broad contributor to Australian wellbeing
Broad contributor to Australian wellbeing Operating Income For personal use only Loan impairment FY16 Cost of lending across Expenses Including ~5,000 SME the economy partners and suppliers $24.6bn (>90% Australian) $1.3bn Tax expense $4.2bn Australia’s largest tax $3.6bn payer1 and signatory of the
Slide 68: Our Stakeholders
Our Stakeholders Customer Product Holdings1 For personal use only 15.2m Super fund unit holders ? 5.1m 11.3m 4.5m 2.3m 4.1m 1.7m 3.2m 905k 1.9m 650k >300k 1.1m ~800k 51,700 Home Loans Credit Cards Retail Savings Insurance Personal Loans Business Funds CommSec Shareholders Employees and Transactions
Slide 69: Customer needs met
Customer needs met By Age By Channel For personal use only 3.35 3.43 3.35 3.15 4.16 2.70 2.59 3.29 3.15 2.21 1.54 14 - 17 18 - 24 25 - 34 35 - 49 50 - 64 65+ Total Overall Non-Internet Mobile App Website and 18+ Users Only Users Mobile App Users Share of Product Wealth – Share of Product Wealth Shar
Slide 70: Corporate Responsibility Strategy
Corporate Responsibility Strategy Our Vision For personal use only To excel at securing and enhancing the financial wellbeing of people, businesses and communities Our Values Corporate Responsibility Strategy Our role in society Our people The way we do business Build Innovate Fairness and Community
Slide 71: Corporate Responsibility
Corporate Responsibility Our vision is to excel at securing and enhancing the financial wellbeing of people, businesses and communities. Our corporate For personal use only responsibility efforts help us deliver on our vision with a focus on our role in society, our people and the way we do business
Slide 72: Corporate Responsibility
Corporate CorporateResponsibility Responsibility Our role in society For personal use only Delivering on 2015 $50 million investment Australia’s leading technology bank commitment to education over 3 years Doubled investment in Start Smart financial literacy $10 million provided (of $15 mill
Slide 73: Corporate Responsibility
Corporate CorporateResponsibility Responsibility Our people For personal use only Employer of Choice for Gender Equality Committed to national Financial Inclusion Action Named second most inclusive employer in the 2016 Plan (FIAP) program alongside 10 other community Australian Workplace Equal
Slide 74: Corporate Responsibility
Corporate CorporateResponsibility Responsibility The way we do business For personal use only Committed to addressing The Group was closely Updated Group Environment community concerns about involved through the full Policy acknowledging industry conduct process of government international eff
Slide 75: Corporate Responsibility Scorecard
Corporate Responsibility Scorecard FY16 FY15 FY14 FY13 FY12 FY11 For personal use only Roy Morgan MFI Retail Customer Satisfaction % 82.8 84.2 83.2 83.0 79.0 75.2 - Rank (CBA)1 1st 1st 1st 1st 2nd 4th Customer satisfaction DBM Business Financial Services Monitor (avg) 7.2 7.5 7.4 7.4 7.3 7.1 - Rank
Slide 76: Investing in our society
Investing in our society #1 550,000+ $262m For personal use only Largest tax payer Students Total in Australia registered for Start Community Smart financial Investment education $2m 170,357 2,400+ In grants to 229 Calls to our Businesses youth focused Indigenous engaged with our organisations custo
Slide 77: Supporting the transition to a low carbon economy
Supporting the transition to a low carbon economy Detailed assessment undertaken of the carbon emissions arising from the Group’s business lending, providing the analysis and insights to identify and act on key opportunities to reduce these carbon emissions. For personal use only The Group’s lending
Slide 78: Open Advice Review Program Progress
Open Advice Review Program Progress For personal use only ♦ Offer to review advice provided to all Financial Independent Reports program Promontory Financial Group Expert outcomes publicly Wisdom and Commonwealth Financial Planning customers between September 2003 and July 2012 ♦ Opened 3 July 2014.
Slide 79: CFSGAM – Global Reach
CFSGAM – Global Reach For personal use only Australia and New Zealand AUM $111.6 billion1 UK, Europe and Middle East AUM $71.6 billion Asia (incl. Japan) AUM $9.7 billion Joint venture North America AUM $6.8 billion2 Spot 1. Assets under management indicated above includes Realindex Investments whic
Slide 80: CBA in Asia and South Africa
CBA in Asia and South Africa China For personal use only ♦ Bank of Hangzhou (20%): 189 branches ♦ Qilu Bank (20%): 120 branches ♦ County Banking (Henen & Hebei): - 15 branches (10 @ 100% holding, 5 @ 80% holding) - 8 sub-branches (2 @ 100% holding, 6 @ 80% holding) ♦ CBA Beijing, Shanghai and Hong K
Slide 81: IFS – Continued growth
IFS – Continued growth 1 Revenue Direct Proprietary Customers For personal use only 300 A$m 600 ‘000 250 500 200 400 150 300 100 200 50 100 - - Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Proprietary Loans & Inforce Premium Proprietary Income Spot (A$m) 140 A$
Slide 82: Business Customer Satisfaction
Business Customer Satisfaction Micro CBA all segments: Small For personal use only 7.8 7.2 (= #1) 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 Jun 13 Jun 14 Jun 15 Jun 16 Jun 13 Jun 14 Jun 15 Jun 16 IB&M first/equal first – Medium Large 57 consecutive months 8.0 8.2 7.8 8.0 7.8 7.6 7.
Slide 83: World class technology & operations
World classWorld technology & operations class technology & operations For personal use only Revitalised State-of-the- Innovation The Digital front-line art Core Culture Future Single view of Legacy system Innovation Lab Simple, personalised digital experiences customer across replacement
Slide 84: Australia's leading technology bank
Australia’s leading technology bank #1 #1 #1 For personal use only Free Online Banking Customer Satisfaction financial 7 years in a row Internet Banking Services (CANSTAR) (Roy Morgan) app #1 #1 #1 Following Innovative Business Client on Product – Daily IQ Feedback social media (AB+F) (Peter Lee Ass
Slide 85: Customer Satisfaction - Online
Customer Satisfaction - Online Internet Banking Website For personal use only Satisfaction with Internet Banking Services 97% Satisfaction with Internet Banking Services via "Website" or "App“ 95% via "Website" 93.6% 97% 93% 91% 95% 89% 93.3% 87% 93% 85% Dec 14 Jun 15 Dec 15 Jun 16 91% App 97% Satis
Slide 86: Innovation and Simplicity
Innovation and Simplicity Wealth Solutions Financial Toolkit NZ For personal use only October 2015 – June 2016 March 2016 June 2016 Online features include: Toolkit gives customers Interactive & personalised assistance with planning, Clever Kash - cashless general insurance quotes saving and budgeti
Slide 87: Exploring new opportunities
Exploring new opportunities Quantum Blockchain Cyber security For personal use only Partnering with Our $15m investment Investigating and UNSW to deliver is supporting experimenting widely training to more than Australian with the technology – 16,000 people – researchers to working on 25+ use boosti
Slide 88: Small Business
Small Business Australian first real-time For personal use only Over 170k conversations Access to specialists 1 transaction account alerts (58k in branch) with small available within every business customers to better Recently launched data branch, with increased understand their business and feed i
Slide 89: Distribution Transformation
Distribution Transformation Small Business Video Conferencing For personal use only 165 dedicated specialists Access to CBA specialists, 58k conversations in FY16 almost 60k calls in FY16 Express Branches 82 sites and growing Concierge Supported by tablets and Self Service software to enhance 700+ I
Slide 90: Self Service and Digital
Self Service and Digital Simple activities move to digital Accounts with e-statements For personal use only Migration of selected services Transactions and Savings (% of total) # low-value add interactions in branch per month (m) Jun 16 63% Jun 15 35% 30% 86% 44% 49% Updated contact Pin change C
Slide 91: Self Service and Digital
Self Service and Digital Digital adoption increasing Sales rapidly growing For personal use only Total # logons (Six Monthly) Digital contribution to total sales2 on NetBank and CommBank App (m)1 21% +41% 808 840 10% 672 709 597 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 M
Slide 92: Transaction volumes
Transaction volumes Branch ATM1 For personal use only m (deposits & withdrawals) m (all transactions) 130 325 261 59 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Point of Sale2 Internet3 m (all transaction
Slide 93: Transaction volumes
Transaction volumes By Number By $ Value For personal use only FY16 FY16 % of total % of total 65% 52% 34% 23% 10% 9% 5% 2% Branch ATM PoS Internet Branch ATM PoS Internet 93
Slide 94: Self Service and Digital
Additional information Self Service and Digital Growing Mobile Cardless Cash Tap & Pay Pay Tag For personal use only Cumulative volume of unique transactions (m)1 Volume of transactions per quarter (m)2 Number of Pay Tags in market (k) 2.7 8.5 412 361 2.0 313 1.8 5.3 256 1.4 1.2 176 2.7 1.2 0.1 Jun
Slide 95: RBS Home Loan Portfolio
RBS Home Loan Portfolio Jun Dec Jun Jun Dec Jun For personal use only Portfolio1 New Business1 15 15 16 15 15 16 Total Balances - Spot ($bn) 321 331 345 Total Funding ($bn) 80 44 87 Total Balances - Average ($bn) 311 326 332 Average Funding Size ($’000) 274 304 302 Total Accounts (m) 1.5 1.5 1.5 Ser
Slide 96: Australian Home Loan Portfolio
Australian Home Loan Portfolio1 Strong Portfolio Quality For personal use only Portfolio losses continue to be low (FY16: 2bpts) 77% of customers paying in advance2 by 31 months on average, including offset facilities Regular stress testing undertaken to identify areas of sensitivity Portfolio dynam
Slide 97: Australian Home Loan Portfolio
Australian Home Loan Portfolio1 Jun Dec Jun Jun Dec Jun Portfolio1 New Business1 For personal use only 15 15 16 15 15 16 Total Balances - Spot ($bn) 383 393 409 Total Funding ($bn) 94 50 101 Total Balances - Average ($bn) 371 388 395 Average Funding Size ($’000) 274 302 300 Total Accounts (m) 1.7 1.
Slide 98: Australian Home Loans
Australian Home Loans Balance Growth State Profile For personal use only FY16 Balance Growth % of Portfolio $bn 31 (90) 101 10.5% 17% (16) 33% 26% 409 7.9% 18% 6% 383 5.4% 4.7% 4.2% Jun 15 New Redraw & Repayments External Jun 16 NSW/ACT VIC/TAS QLD WA SA/NT Fundings Interest / Other Refinance Determ
Slide 99: RBS Home Loan Growth Profile
RBS Home Loan Growth Profile Home Loan Balances Broker Share of Fundings1 For personal use only $bn 54% 28 (79) 52% 52% 87 51% 50% (12) 47% 46% 345 45% 321 42% 40% 38% 39% Jun 15 New Redraw & Repayments External Jun 16 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 fundings interest / Other refinance Mar
Slide 100: RBS Consumer Arrears
RBS Consumer Arrears Home Loans Credit Cards For personal use only 30+ days FY12 FY13 30+ days FY12 FY13 3.0% 3.5% FY14 FY15 FY14 FY15 FY16 FY16 2.5% 3.0% 2.0% 1.5% 2.5% 1.0% 0.5% 2.0% Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Personal Lo
Slide 101: Group Consumer Arrears
Group Consumer Arrears Consumer Portfolios Home Loans For personal use only Personal Loans Bankwest 2.0% 90+ days 2.0% 90+ days Credit Cards RBS Home Loans ASB 1.0% 1.0% 0.0% 0.0% Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Credit Cards Personal
Slide 102: Australian Investment Home Loans
Australian Investment Home Loans Arrears New Business Profile (%) For personal use only 1.00% 90+ days Owner Occupied 3 3 2 Line of Credit Portfolio 0.80% 31 32 Investor Investment Loan 37 0.60% 0.40% Owner Occupied 60 66 66 0.20% 0.00% Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 FY15 1H16 FY16
Slide 103: Australian Home Loans – Stress Test
Australian Home Loans – Stress Test Assumptions and Outcomes Net Losses For personal use only $m Assumptions (%) Base Year 1 Year 2 Year 3 2,5301 (93) 4 2,441 Cash Rate 2.0 1.0 0.5 0.5 Unemployment 5.8 7.5 9.5 11.0 Hours under- 10.2 12.4 15.3 17.4 Dec 15 Change in Portfolio Movements Jun 16 employed
Slide 104: Regulatory Exposure Mix
Regulatory Exposure Mix For personal use only Regulatory Credit Exposure Mix Portfolio CBA Peer 1 Peer 2 Peer 3 Residential Mortgages 56% 39% 45% 55% Corporate, SME, Specialised Lending 27% 33% 39% 30% Bank 4% 6% 5% 3% Sovereign 9% 14% 8% 8% Qualifying Revolving 3% 3% 2% 2% Other Retail 1% 5% 1% 2%
Slide 105: Credit Exposures by Industry
Credit Exposures by Industry TCE TIA $m TIA % of TCE For personal use only Jun 15 Jun 16 Jun 15 Jun 16 Jun 15 Jun 16 Consumer 54.2% 54.9% 1,353 1,405 0.25% 0.24% Sovereign 8.4% 9.0% - - - - Banks 8.6% 6.8% 10 10 0.01% 0.01% Property 6.3% 6.6% 562 544 0.90% 0.79% Finance – Other 4.6% 5.2% 87 64 0.19%
Slide 106: Sector Exposures
Sector Exposures Exposures by Industry Top 20 Commercial Exposures For personal use only BBB+ A- AAA A+ AA- TCE $bn to Other Jun 16 to AA- to A- BBB- BBB- A- BBB+ Sovereign 87.3 6.8 0.2 0.3 94.6 BBB BBB- AA- Banks 31.7 29.7 8.0 2.4 71.8 AA- AAA Property 1.7 5.8 14.3 47.4 69.2 A A+ AA- Finance - Othe
Slide 107: Commercial Property
Commercial Property Overview Group Exposure For personal use only 65.9 69.2 Date Legend Exposure of $69.2bn (6.6% of Group TCE) diversified 62.5 across sectors/geography/counterparties. Jun 16 Dec 15 Jun 15 32% of the portfolio investment grade, majority of sub- investment grade exposures secure
Slide 108: Mining, Oil and Gas
Mining, Oil and Gas Overview Group Exposure For personal use only Exposure of $16.0bn (1.5% of Group TCE), $2.8bn Date Legend 79 reduction from Dec 15 due to active portfolio 74 Jun 16 Dec 15 Jun 15 70 management, repayments and limited origination. Portfolio continues to perform acceptably: 18.
Slide 109: Agriculture
Agriculture Overview Group Exposure For personal use only Exposure of $19.7bn (1.9% of Group TCE) is well Date Legend 18.5 19.7 diversified by geography, sector and client base. Jun 16 Dec 15 18.2 Jun 15 Australian agriculture portfolio performing well. NZ dairy portfolio: 13 11 12 Represent
Slide 110: Offshore Exposure
Offshore Exposure Overview Offshore Exposure For personal use only Exposure of $147bn (14.1% of Group TCE) with 70% to Date Legend 164 Banks, Sovereigns and Other Finance sectors. Jun 16 Dec 15 Jun 15 148 147 Excluding Banks, Sovereigns and Other Finance: Exposure of $43bn with $22bn to Mining
Slide 111: Liquidity Coverage Ratio
Liquidity Coverage Ratio LCR Qualifying Liquid Assets1 LCR 120% at 30 Jun 2016 For personal use only Committed Liquidity Facility reduced by $7.5bn $bn The Group’s Net Stable Funding Ratio (NSFR) is 140 currently above the 100% requirement 134 132 Liquidity Coverage Change Jun 16 Jun 15 Ratio
Slide 112: Funding - Portfolio
Funding - Portfolio Term Wholesale Funding by Currency1 Wholesale Funding by Product For personal use only Vanilla MTN 28% Jun 16 AUD CP 17% CDs 12% Jun 15 USD 2 FI Deposits 11% EUR Covered Bonds 8% Jun 14 Other 7% Other Structured MTN 6% Jun 13 Debt Capital 6% 0% 20% 40% 60% 80% 100% Securitisation
Slide 113: Funded Assets
Funded Assets Jun Jun $bn 16 15 For personal use only $bn Transactions 90 89 40 3 (2) 8 8 2 Savings 191 176 Investments 197 195 Other 40 18 518 Customer deposits Total customer 518 478 deposits 848 850 Wholesale 791 262 249 funding 2 111 Short term Short-term wholesale collateral 9 11 2 deposits 151
Slide 114: Interest Rate Risk in the Banking Book
Interest Rate Risk in the Banking Book For personal use only bpts 43 47 43 13 27 48 20 $1,303m $1,403m $1,181m $388m $868m $1,401m $596m Optionality Risk Basis Optionality Risk Risk Basis Risk Repricing & Yield Curve Risk Repricing & Yield Curve Risk Embedded Gain (offset to capital) Embedded Gain (
Slide 115: RWA & Capital Usage
RWA & Capital Usage Total Risk Weighted Assets Credit Risk Weighted Assets For personal use only $bn $bn 2.5 (0.9) 0.3 0.3 344.0 2.0 (10.1) 6.8 9.1 394.7 335.0 1.0 392.7 CET1 impact bpts (25) (5) 26 (3) (7) CET1 impact bpts (19) (6) 2 (1) (1) (25) Dec 15 Credit Traded IRRBB Operational Jun 16 Dec 15
Slide 116: APRA & International Comparison
APRA & International Comparison The APRA Basel III capital requirements are more conservative than those of the Basel Committee on For personal use only Banking Supervision (BCBS), leading to lower reported capital ratios. In July 2015, APRA published a study that compared the major banks’ capital r
Slide 117: APRA & International Comparison
APRA & International Comparison The following table provides details on the differences, as at 30 June 2016, between the APRA Basel III For personal use only capital requirements and internationally comparable capital ratio1. CET1 Basel III (APRA) 10.6% Equity investments 0.8% Capitalised expenses 0
Slide 118: UK and US Balance Sheet Comparison
UK and US Balance Sheet Comparison 1,2 United Kingdom USA For personal use only Assets Liab + Equity Assets Liab + Equity Cash & Cash & 9% 8% Equity 12% 12% Equity equivalents equivalents Home Loans 20% Home Loans 13% 57% Deposits Deposits 58% Other Lending 40% Other Lending 39% 8% Long Term3 Other
Slide 119: Australian Banks – Safe Assets, Secure Funding
Australian Banks – Safe Assets, Secure Funding Commonwealth Bank Balance Sheet Comparisons For personal use only Assets – CBA has a safe, conservative asset profile: Assets Liab + Equity 51% of balance sheet is home loans, which are stable/long Cash & equivalents 3% term. 7% Equity Trading secur
Slide 120: Capital Conservation Buffer (CCB)
Capital Conservation Buffer (CCB) For personal use only The Australian major banks are % of earnings domestic systemically-important banks able to be used CET1 ratio Value for discretionary (D-SIBs). From 1 January 2016, D- payments SIBs are required to hold 1% additional PCR + 3.5%, capital in th
Slide 121: Replicating Portfolio
Replicating Portfolio Actual Actual 1 and and Forecast Forecast Scenario Scenario For personal use only Replicating Portfolio Yield Official Cash Rate 2002 FY16 FY18 Replicating portfolio provides partial economic hedge for certain liabilities and assets that display imperfect correlation between th
Slide 122: Regulatory Expected Loss
Regulatory Expected Loss For personal use only $m Jun 16 Dec 15 Jun 15 Regulatory Expected Loss (EL) 4,430 4,214 4,083 Eligible Provisions (EP) Collective Provisions1 2,562 2,656 2,599 Specific Provisions1,2 1,801 1,649 1,656 General Reserve for Credit Losses adjustment 552 386 346 less ineligible p
Slide 123: Leverage Ratio
Leverage Ratio CBA Leverage Ratio well above prescribed Basel Committee minimum For personal use only $m Jun 16 Leverage ratio introduced to constrain the build-up of leverage in the banking system. Tier 1 Capital 48,553 Scheduled to be introduced as a minimum requirement Total Exposures 980,846 fro
Slide 124: Regulatory Change
Regulatory Change APRA 2016 2017 2018 2019 For personal use only Leverage ratio Disclosure requirements only Implementation CCB + D-SIB Implemented 1 Jan 2016 CCB CET1 2.5% + D-SIB CET1 1.0% Countercyclical Implemented 1 Jan 2016 – not material Capital Buffer (CCyB) Response to FSI Implementation fr
Slide 125: Economic Indicators
Economic Indicators 2011 2012 2013 2014 2015 2016 2017 For personal use only World GDP 4.2 3.4 3.3 3.4 3.1 3.0 3.2 Australia Credit Growth % – Total 2.6 4.4 3.1 5.0 5.9 6.2 4¾-6¾ Credit Growth % – Housing 6.1 5.0 4.6 6.4 7.3 6.7 5-7 Credit Growth % – Business -2.3 4.4 1.2 3.4 4.4 6.6 5-7 Credit Grow
Slide 126: Australia remains well placed, but exposed to global uncertainty
Australia remains well placed, but exposed to global uncertainty GDP1 Unemployment Rate2 Global Interest Rates1 For personal use only (annual % change) (%) (%) 12 8 6 6 2 8 4 -2 2 4 -6 0 -10 0 -2 Mar 05 Nov 08 Jul 12 Mar 16 Jan 05 Sep 07 May 10 Jan 13 Sep 15 Jan 05 Sep 07 May 10 Jan 13 Sep 15 Austra
Slide 127: Chinese economic growth is slowing
Chinese economic growth is slowing China: GDP1 Export Shares2 For personal use only (annual % change) (% of share of annual exports) 16 40 12 30 CBA 8 (f) 20 4 10 0 0 1998 2004 2010 2016 Jan 00 Mar 03 May 06 Jul 09 Sep 12 Nov 15 We expect the Chinese economy to China and the rest of emerging Asia dr
Slide 128: Growth in China is shifting away from resource-intensive industries
Growth in China is shifting away from resource- intensive industries China GDP growth by industry1 Short term overseas arrivals2 For personal use only (annual % change) (rolling annual total millions) 20% 1.5 Industry New Zealand China Services UK India Japan 15% Agriculture 1.0 10% 0.5 5% 0% 0.0 Ma
Slide 129: The domestic growth transition continues
The domestic growth transition continues Growth drivers from mining peak1 Progress on the transition2 For personal use only (cumulative contribution to GDP since end 2012) % of Ch in GDP '000 12 Other (non-mining) 5.0 Drop in mining capex Mining-related job losses 110 GDP Rise in resource exports 8
Slide 130: But the transition is uneven
But the transition is uneven Dwelling construction1 Transition drivers1 For personal use only (index; end 2012=100) (rolling annual total ‘000) (index, end 2012=100) 250 Approvals 120 Residential construction 200 Non-mining capex 100 150 80 Government Commencements capex 100 60 Sep 89 Sep 95 Sep 01
Slide 131: Consumer spending has lifted & the lower currency is supporting service industries
Consumer spending has lifted & the lower currency is supporting service industries Employment & the consumer1 Some “surprises”1 For personal use only (annual % change) (smoothed annual % change) 5 Consumer 4 spending 6 Consumer spending 3 3 2 Non-resource exports 1 Jobs growth 0 0 -1 -3 Mar 08 Mar 1
Slide 132: There is an income threat because of the declines in commodity prices
There is an income threat because of the declines in commodity prices Per capita income1 Income & the terms-of-trade1 For personal use only (real net national disposable income % per annum) (annual % change) 8 12 44 Nominal GDP, 4 8 (lhs) 28 0 4 12 -4 0 -4 Terms of trade %pa, (rhs) -8 -4 -20 Sep 95
Slide 133: The housing market is slowing
The housing market is slowing Population growth1 CBA: Housing demand & supply2 For personal use only (moving annual total ‘000) (‘000) 500 Total Supply 200 200 Net migration 400 Natural increase 300 100 100 Demand 200 Pent-up demand 0 0 100 Excess supply 0 -100 -100 Jun 91 Dec 94 Jun 98 Dec 01 Jun 0
Slide 134: Dwelling price growth diverges
Dwelling price growth diverges Dwelling prices2 Housing credit growth2 For personal use only (annual % change) (annual % change) 50 36 40 30 27 Melbourne Sydney 20 Owner-occupier housing 18 10 Total housing 0 9 Perth -10 Brisbane Investor housing -20 0 Jan 06 Jan 08 Jan 10 Jan 12 Jan 14 Jan 16 Jan 0
Slide 135: Household balance sheets remain strong
Household balance sheets remain strong Saving ratio1 Cash holdings2 For personal use only (%) (deposits as % of GDP) 12 60 9 Savings ratio Households 40 6 Consumer spending Business 3 (exc financial) 20 0 -3 0 Sep 98 Sep 02 Sep 06 Sep 10 Sep 14 Mar 88 Mar 93 Mar 98 Mar 03 Mar 08 Mar 13 The household
Slide 136: Households in better shape in net terms
Households in better shape in net terms Household Wealth and Liabilities1 For personal use only (% of annual household disposable income) 750 Net Wealth 600 450 Dwellings 300 Financial Assets 150 Liabilities 0 Mar 00 Mar 04 Mar 08 Mar 12 Mar 16 Household net worth has improved despite an increase in
Slide 137: Factors that typically characterise a house price bubble are not evident in Australia
Factors that typically characterise a house price bubble are not evident in Australia Housing “Bubble” – Current position in Australia typical characteristics For personal use only Unsustainable asset prices Prices were supported by underbuilding in past years but demand and supply are now more in
Slide 138: New Zealand
New Zealand Global dairy trade auction results1 NZ short term arrivals2 For personal use only (USD/tonne) (monthly, seasonally adjusted ‘000) 6,000 300 Whole Milk Powder 280 5,000 CWC 260 RWC 4,000 240 3,000 220 Lions tour 200 2,000 GDT overall price 180 1,000 160 Jul 08 Jul 09 Jul 10 Jul 11 Jul 12
Slide 139: New Zealand
New Zealand NZ CPI inflation1 OCR forecasts2 For personal use only (%) (ASB forecast and implied market pricing) 6 4.0 (f) Annual % 5 3.5 4 3 3.0 OCR implied by current 2 2.5 market pricing 1 2.0 ASB Economics Forecast 0 (peak of 3.5% in 2020) Quarterly change -1 1.5 Jun 00 Jun 03 Jun 06 Jun 09 Jun
Slide 140: New Zealand
New Zealand NZ household lending growth1 NZ median house price2 For personal use only (% annual change) (3 month moving average $‘000) 20 800 15 700 Mortgage lending Auckland 10 600 5 500 NZ Wellington 0 400 -5 300 Canterbury/Westland Consumer Credit -10 200 Jan 94 Jan 98 Jan 02 Jan 06 Jan 10 Jan 14
Slide 141: Customer Metrics - Sources
Customer Metrics - Sources 1 Roy Morgan Research Retail Main Financial Institution (MFI) Customer Satisfaction. Australian population 14+, % “Very Satisfied” or “Fairly Satisfied” with For personal use only relationship with that MFI. 6 month rolling average to June 2016. Peers includes ANZ, NAB and
Slide 142: Sustainability Scorecard – Sources and definitions
Sustainability Scorecard – Sources and definitions All metrics capture data of the wholly owned and operated entities of the Commonwealth Bank Group (the Group) unless otherwise stated. 1. The metric represents the proportion of retail Main Financial Institution (MFI) customers surveyed by Roy Morga
Slide 143: Technology - Sources
Technology - Sources Sources for ‘Australia’s leading technology bank’ (slide 84) For personal use only 1 Free financial app: CommBank app on iOS and Android in Australia. Sources are the Apple App Store and the Google Play Store. 2 Online banking: CBA won Canstar's Bank of the Year – Online Banking
Slide 144: Glossary of Key Definitions
Glossary of Key Definitions Capital & Other Funding & Risk For personal use only Risk Weighted The value of the Group’s On and Off Balance Sheet Liquidity coverage The LCR is a quantitative liquidity measure that is part of Assets or RWA assets are adjusted by risk weights calculated ratio (LCR) the
Slide 145: Disclaimer & Important Notice
Disclaimer & Important Notice Disclaimer For personal use only The material in this presentation is general background information about the Group and its activities current as at the date of the presentation, 10 August 2016. It is information given in summary form and does not purport to be complet
Slide 146: Results Presentation for the Full Year Ended 30 June 2016
For personal use only RESULTS PRESENTATION Results Presentation FOR THE FULL YEAR ENDED 30 JUNE 2016 For the half year ended 31 December 2009 COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124 | 10 AUGUST 2016 10 February Commonwealth Bank of Australia ACN 123 123 124 2010
Commonwealth Bank of Australia — FY2016 Earnings Presentation on 6ix