Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — H1 2018 Earnings Presentation
14 slides from Commonwealth Bank Of Australia's earnings presentation, Feb 7, 2018
Slide 1: Media Presentation: Half year ended 31 December 2017
For personal use only Media Presentation For the half year ended 31 December 2017 Ian Narev, Chief Executive Officer Commonwealth Bank of Australia | ACN 123 123 124 | 7 February 2018
Slide 2: Overview
Overview For personal use only ► Period of effort to fix our mistakes ► Pride and dedication led to continuing operating momentum: − Customer satisfaction driving customer activity − Margin, productivity and credit discipline − Innovation investments paying off ► Continuing to prepare for the future
Slide 3: This result
This result1 Dec 17 vs For personal use only Dec 16 Statutory Profit ($m) 4,895 1.2% Cash NPAT ($m) 4,735 (1.9%) Cash Earnings per Share ($) 2.72 (3.2%) ROE – Cash 14.5% (120)bpts Dividend per Share ($) 2.00 +1 cent 1. Presented on a continuing operations basis. 3
Slide 4: Long term strategy continued
Long term strategy continued Productivity Investment Customers Strength Returns For personal use only Cost to Income % Gross Spend, HY $m % Satisfied3 CET1 (APRA) DPS Growth TSR (%) (avg, pa) 5 141% 48.4 10.4 #1 627 81.7 #1 6% Peer Avg6 438 #1 83% 4.8 40.8 70.5 Peer Avg6 #4 3% Dec 07 Dec 17 1,2 Dec
Slide 5: Operating momentum continues
Operating momentum continues 1 Operating Performance Strength Returns For personal use only 1H18 vs 1H17 Underlying2 International +1 cent 3 131% 16.3% 15.7% 2.00 ex AUSTRAC 5.1% 68% penalty 4.9% 4.7% provision 10.4% Expected compliance APRA 14.5% program spend +$200m Benefit from accelerated amorti
Slide 6: Regulatory update
Regulatory update Committed to investment in For personal use only AUSTRAC strengthening compliance ► Progress over recent years, including Program of Action ► Strengthened policies, systems and processes ($m) ► No evidence of misconduct or unethical behaviour 3,978 CAGR1 33% 3,370 APRA Inquiry ► Pr
Slide 7: Customers
Customers Customer Satisfaction1 Net Promoter Score2 For personal use only 10 Retail 5 +4.4 +1.8 Rank 0.0 0 -0.7 Retail #1 -5 -10 Business = #1 -15 31.5% 27.1% -20 Wealth #1 -25 Internet #1 -30 CBA Peers +4.4 -35 Promoters Detractors2 NPS Dec 08 Dec 17 1. Refer notes slide in the 1H18 Results Presen
Slide 8: Selective volume growth
Selective volume growth Home Loan Growth 1 Apartment Development 3 For personal use only Interest Only 12 months to Dec 17 % of total home loan flows Total exposures $bn Owner-Occupied +7.5% (23%) Investor +0.5% 11.3% 38% APRA benchmark 5.24 (30%) 4.51 6.3% 4.06 5.2% 23% 21% Group CBA System 2 Syste
Slide 9: Customers: Better Customer Outcomes
Customers Better Customer Outcomes For personal use only ATM Service Australian Assistance fee free not sales Call Centres Package No ATM withdrawal Tellers rewarded You’ll talk to Accessed by over fees no matter who for service, not CommBank people 2,700 customers you bank with sales on the phone s
Slide 10: Technology
Technology For personal use only Ceba Chatbot Tyme Coach 2018 ► Cloud core banking platform in South Africa ► Commercialised blockchain solution in South Africa ► Digital, real time, end-to-end personal loan in Indonesia ► Technology transfer into ASB - Chat to an automated A financial wellbeing 130
Slide 11: Technology
Technology Net Promoter Score1 #1 Free Financial app Customer’s likelihood to recommend main financial institution based on use of For personal use only Internet Banking services (via Mobile App) (Apple App Store & Google Play Store)2 50.7% Promoters +36.6 #1 Online Banking – 8 years in a row (CANST
Slide 12: Strength
Strength Deposit Long term CET1 Portfolio Management For personal use only funding funding APRA Businesses exited/under review (%) (%) (%) ► GAM strategic review (ongoing) 68% 63% 10.4% ► Life insurance (2017 announced) 54% ► Vietnam branch (2017) 40% 4.8%1 ► Mumbai branch (2017) ► County banks (201
Slide 13: Our stakeholders
Our stakeholders Customers Shareholders For personal use only 1 15.9 million ~800,000 MFI for one in three Australians + millions more via super Community People $2.0bn in 48,900 1 taxes 1 Australia’s second largest taxpayer employed in 16 countries 1. Presented on a continuing operations basis. 13
Slide 14: Outlook
Outlook For personal use only ► Fundamental economic trends positive overall, globally and for Australia ► Global monetary policy carries volatility risk ► Low wage growth continues to impact confidence ► Time of renewal at CBA, with continuing focus on the long term 14
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