Determined to be better than we’ve ever been. For personal use only Commonwealth Bank of Australia September Quarter 2010 Information Pack For the quarter ended 30 September 2010 15 November 2010 Commonwealth Bank of Australia ACN 123 123 124
Dis isclaimer claimer For personal use only The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation, 15 November 2010. 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. These should be considered, with or without professional advice when deciding if an investment is appropriate. 2 September Quarter 2010 Trading Update
Summary Summary – Septe September mber Qua Quarter rter 20 2010 10 For personal use only Operating conditions remain challenging; Global economic recovery still fragile; regulatory uncertainties Muted system credit growth Elevated funding costs Unaudited cash earnings of approximately $1.6 billion; Good cost discipline Further gradual improvement in credit quality CBA well positioned; Strong organic capital generation - Tier 1 Capital Ratio increased to 9.6% $92 billion in liquid assets Strong provisioning – industry leading Total Provisions to Credit RWAs Effective execution of strategic agenda setting platform for future growth 3 September Quarter 2010 Trading Update
Busine usiness ss Summa Summary ry Australia - Retail Australia - Commercial For personal use only Improved outlook, but confidence still fragile Disciplined cost control Expect stronger system growth in 2 nd Half Higher funding costs impacting margins Modest growth in SME lending Arrears trending lower in key portfolios Bankwest – solid performance Solid growth in deposits Wealth Management New Zealand Improving economic outlook Good Funds Management income growth ASB performing relatively well FUA up 4.6%, FUM up 4.4% Improved margins FirstChoice positive netflows Consumer arrears stable Inforce premiums up 2.1% 4 September Quarter 2010 Trading Update
Cred redit Q it Qua uali lity ty Consumer arrears Portfolio migrations For personal use only 5.0% 30 days + Risk-Rated Portfolios 10,000 4.0% 5,000 Exposure ($m) 0 3.0% -5,000 2.0% -10,000 1.0% -15,000 0.0% -20,000 Sep 07 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Sep Sep Sep Sep Sep -25,000 07 08 09 06 10 CBA Home Loans (incl customer assist) Bankwest Home Loans -30,000 CBA Credit Cards CBA Personal Loans Total Upgrades Total Downgrades Net Includes ASB & Bankwest 2 Total and new impaired assets to GLA Total provisions to Credit RWA 107 102 2.32% 1 96 2.15% 2.15% bpts bpts 86 39 40 35 Quarter 28 only 1.63% 51 49 46 68 62 61 58 22 $5,464m $4,210m $4,823m $5,216m Peer 1 Jun 09 Dec 09 Jun 10 Sep 10 CBA Peer 3 Peer 2 Sep 10 Sep 10 Sep 10 Sep 10 CBA Bankwest New CBA Includes ASB 1 Bpts is for the three months to Sep 2010. Prior periods are six-monthly figures. 5 September Quarter 2010 Trading Update 2 Provisions do not include GRCL equity reserves or other similar adjustments.
Funding and Capital Retail Bank funding costs Retail Bank margin For personal use only bpts 251 +1.37% Increased x 60% (7) funding 1 2 cost Deposit Funding +1.35% 219 215 +1.33% Wholesale Funding x 40% Basis Risk 6 Months 6 Months Funding Pricing Other 3 Months Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 to Jun 07 to Jun 10 to Sep 10 Asset growth entirely deposit funded Tier 1 capital ratio of 9.62% $bn (2) 1 12.8% (3) 6 1 9.62% 9.10% 9.15% 596 593 Sep 10 Jun 10 Sep 10 Dec 09 Deposits Short Long Dividend Equity Funded Funded CBA Term Term Accrual Assets Assets (UK FSA) wholesale wholesale Sep 10 Jun 10 6 September Quarter 2010 Trading Update
Determined to be better than we’ve ever been. For personal use only Commonwealth Bank of Australia September Quarter 2010 Information Pack For the quarter ended 30 September 2010 15 November 2010 Commonwealth Bank of Australia ACN 123 123 124
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