MEDIA PRESENTATION Results Presentation FOR THE HALF YEAR ENDED 31 DECEMBER 2015 For the half year ended 31 December 2009 COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124 | 10 FEBRUARY 2016 10 February Commonwealth Bank of Australia ACN 123 123 124 2010
Note Notes Disclaimer The material that follows is a presentation of general background information about the Group’s activities current at the date of the presentation, 10 February 2016. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. Cash Profit The Management Discussion and Analysis discloses the net profit after tax on both a statutory and cash basis. The statutory basis is prepared and reviewed in accordance with the Corporations Act 2001 and the Australian Accounting Standards, which comply with International Financial Reporting Standards (IFRS). The cash basis is used by management to present a clear view of the Group’s underlying operating results, excluding items that introduce volatility and/or one- off distortions of the Group’s current period performance. These items, such as hedging and IFRS volatility, are calculated consistently with the prior comparative period and prior half disclosures and do not discriminate between positive and negative adjustments. A list of items excluded from statutory profit is provided in the reconciliation of the Net profit after tax (“cash basis”) on page 3 of the Profit Announcement (PA) and described in greater detail on page 15 of the PA and can be accessed at our website: http://www.commbank.com.au/about-us/shareholders/financial-information/results/ 2
Our Our Vision ision and V and Values alues Our Vision Our Values Integrity To excel at Accountability securing and enhancing Collaboration the financial wellbeing of people, businesses and Excellence communities Service 3
Cash NP Cash NPAT T up up 4% 4% Dec 15 vs Dec 15 Dec 14 Statutory Profit ($m) 4,618 2% Cash NPAT ($m) 4,804 4% ROE – Cash (%) 17.2% (140) bpts Cash Earnings per Share ($) 2.84 1% Dividend per Share ($) 1.98 - 4
All divisions All divisions contribut contributing ing Cash NP Cash NPAT T 1H1 1H16 1 Income 7% C:I 80 bpts to 32.8% Transaction Deposits 29% Income 5% C:I 70 bpts to 41.5% Deposits 10% Slower lending volumes Subdued lending growth + 8% Income (ex CVA/FVA) 8% Lending (avg) 17% Home loans 8% Loan impairment 44% Business/Rural 12% Loan impairment 11% Avg FUA 6% CommIns. inc. 15% + 5% - 6% + 4% + 5% - 1% + 7% ex CVA / FVA 2,215 803 608 372 396 463 $m RBS BPB IB&M WM BWA NZ 2 1 All movements on prior comparative period except where noted 2 NZ result in AUD, performance metrics in NZD. Home loan and Business/Rural growth, source RBNZ 12 months to Dec 15. 5
Continued f Cont inued focus on ocus on the cu the customer stomer Ranking Rank ing # 1 Customer Satisfaction - Retail # 1 Customer Satisfaction - Business = # 2 Customer Satisfaction - Wealth # 1 Customer Satisfaction - IFS # 1 Customer Satisfaction - Internet Refer notes slide at back of this presentation for source information 6
Cust Customer omer focus ocus - mor more needs e needs met met Retail C etail Cust ustomer omer Sa Satis tisfaction action Customer Cus tomer Needs Needs Met Met % Satisfied ('Very Satisfied' or 'Fairly Satisfied') (#) 3.2 3.11 83.9% 86% 84% 3.0 82% 2.8 80% 78% 2.6 76% 2.4 74% 72% 2.2 70% 2.0 68% Dec 15 Dec 08 Dec 07 Dec 15 CBA Peers Refer notes slide at back of this presentation for source information 7
Ongoing Ong oing volume olume growth wth Balan alance ce Gr Growth th 1 Continued strong growth 12 months to Dec 15 Reflects long in Transaction Accounts term investment in frontline A balanced Growth in line volume/margin outcome with system 12.0% Good growth in target sectors 10.6% 9.3% 7.7% 7.8% 7.7% 7.4% 6.3% 6.8% 6.5% Household Home Business ASB ASB Deposits Lending Lending 2 (Home Lending) (Business & Rural) ex Bankwest 1 Spot balance growth twelve months to December 2015. Source System CBA RBA/APRA/RBNZ. CBA includes BWA except Business Lending. 8 2 Domestic Lending balance growth (BPB & IB&M). Source RBA.
Transaction ansaction Banking Banking Strong growth across divisions Group Transaction Balances 1H16 v 1H15 $m +21% 34% 29% Group 97,327 21% +21% 80,758 71,039 14% 15% 5% Ex 9% offset accounts 2% 1 RBS BPB IB&M BWA NZ 1H14 1H15 1H16 RBS New Transaction Accounts 2 • Fast, simple processes in real time # +27% • Growing digital - 15% of new accounts 3 • Real time funds transfer from other banks 515k 470k 404k • Continuous product innovation: • Cardless Cash, Tap & Pay, Intelligent Deposit Machines, Real Time Alerts, Foreign Current 1H14 1H15 1H16 Accounts, Digital wallet 1 Excludes Cash Management Pooling Facilities (CMPF) 2 Number of new accounts. Includes offset accounts. Personal transaction accounts in RBS. 9
Continuous Continuous Inno Innova vation tion 1H16 2010 – 2015 • Innovating in Wealth, ASB & IFS Everyday settlement, Online origination, MyWealth, • Expanding the digital wallet Pi & Leo, Touch ID, Portfolio View, Small Business app, Daily IQ, PayTag, Tap&Pay, VC in branches, • New property app Apps for smart watches and tablets, PEXA property settlement, Cardless cash, Cancel and Replace & • Exploring new opportunities: Temp Lock, Lock & Limit, Albert, Innovation Lab Blockchain, Quantum, Cyber Security etc. Real time banking (Core) 10
Continuou Continuous s Inno Innova vation tion ASB ASB TYME TYME Wea ealth lth Clever Kash – Rapid cycle testing of Portfolio View - SMSF cashless interactive digital strategy moneybox solutions Complete view of investment portfolio - R&D + partnerships + 37% increase in Mobile shares, cash, property banking licence 1 app users Latest insights at the Mobile app 1 st in Kiosk developed for low customer’s fingertips cost physical presence 2 customer satisfaction 1 12 months to December 2015 2 Customer Retail Market Monitor, Camorra Research, December 2015 11
Exploring Exploring new o new oppor pportunities tunities Supporting Australia’s growing digital economy Quantum Quantum Cyber Cy ber Security Security Bloc Blockc kchain hain Supporting Australian Driving collaboration Partnership with UNSW researchers in and innovation through in a centre of expertise developing the world’s boosting Australia’s the R3 partnership and first silicon-based the CBA-sponsored reserve of security quantum computer workshops engineering professionals 12
Pr Productivity oductivity Enabling Reinvestment Case Study Gross Investment Spend ($m) % of total Retail Collections & 12% 12% Other 13% Risk & 24% 1 28% Customer Solutions 36% Compliance Productivity 63% 60% & Growth 52% Continuous improvement culture, 1H14 1H15 1H16 process simplification and elimination 1,286 1,246 1,237 of non-value tasks, supported by robust 1,179 1,182 measurement systems 639 651 655 2 nd 593 638 Half 90% Hand-offs 60% Turnaround times 1 st Cost to Collect 20% 681 647 Half 589 595 582 541 Employee Engagement* 86% FY11 FY12 FY13 FY14 FY15 1H16 * 2% above Global Best in Class (Kenexa) 1. All movements since inception of productivity programme (3-5 yrs) 13
Strength Str ength to suppor to support our customer t our customers Deposit Depos it Wholesale holesale Ca Capital pital Liquidity 3 Liquidity Funding Funding Funding Funding Basel III $bn % of Total Funding Portfolio Tenor 2 Common Equity Tier 1 (years) 14.3% LCR 116% 123% Internationally comparable 1 140 10.2% 64% 3.9 3.9 63% 9.2% 66 CLF 136 HQLA 4,5 74 assets Dec 14 Dec 15 Dec 14 Dec 15 Dec 14 Dec 15 Dec 14 Dec 15 Analysis aligns with the APRA study entitled “International capital comparison study” (13 July 2015 ) 1 2 Weighted Average Maturity of long term wholesale debt. Includes all deals with first call or residual maturity of 12 months or greater. 3 Liquids are reported net of applicable regulatory haircuts. Dec 14 adjusted to align with final reporting with APRA. 14 4 The Exchange Settlement Account (ESA) balance is netted down by the Reserve Bank of Australia open-repo of internal RMBS. 5 Qualifying HQLA includes cash, Govt and Semi Govt securities. Also includes $5.6bn of RBNZ eligible securities.
Suppo Supporting jobs and g ting jobs and growth wth $6 billion in salaries and wages to 41,000 Australians and 51,000 people overall $4 billion to 6,000 SME partners and suppliers Over $3 billion in tax, representing more than 4.5% of Australia's total corporate tax $5.5 billion in dividends to Australian shareholders, including more than 800,000 households, either directly or through Australian super funds Annual figures as at 31 December 2015 15
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