MEDIA 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
Our Our Str Strate tegy Customer F Custome r Foc ocus us People Strength Productivity Technology Capabilities Capabilit ies “One CommBank” Growt Gr owth h Opport Opportunities unities Continued growth in business and institutional banking Disciplined capability-led growth outside Australia TSR TS R Outpe Outperf rfor orman mance ce 2
Our Our Vision ision and V and Values alues Our Vision Our ision Our Value Our alues To excel at Inte Integrity rity securing and Ac Acco coun unta tability bility enhancing Collabo Collabora ration tion the financial wellbeing of Exc Excellenc ellence people, businesses Ser Service vice and communities 3
Cash NP Cash NPAT T up up 3% 3% Jun 16 vs Jun 16 Jun 15 9,227 2% Statutory Profit ($m) Cash NPAT ($m) 9,450 3% ROE – Cash (%) 16.5% (170) bpts 5.55 - Cash Earnings per Share ($) 4.20 - Dividend per Share ($) 4
Australia’s economy exposed to global un unce certain tainty ty GDP GDP 1 Un Unemp emplo loyment R yment Rate te 2 Global Global Inter Interest est Rates tes 1 (%) (%) (annual % change) 8 12 6 6 2 8 4 -2 2 4 -6 0 0 -2 -10 Jan 05 Sep 07 May 10 Jan 13 Sep 15 Jan 05 Sep 07 May 10 Jan 13 Sep 15 Mar 05 Nov 08 Jul 12 Mar 16 1. Source: Bloomberg UK Australia US Eurozone Japan 5 2. Source: CEIC
The he do domes mestic tic growth wth tr tran ansition sition co cont ntinue inues Gr Growth th driv driver ers s fr from om mining mining pe peak ak 1 Nominal No minal GDP/T GDP/Ter erms ms of of T Trad ade (cumulative contribution to GDP since end 2012) (annual % change) Other (non-mining) 12 48 12 Rise in resource exports GDP Downturn in mining capex Nominal GDP, (lhs) 8 32 8 4 16 4 0 0 0 Terms of trade %pa, (rhs) -4 -16 -4 Mar 00 Mar 04 Mar 08 Mar 12 Mar 16 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 1. Source: ABS 6
Continued f Cont inued focus on ocus on the cu the customer stomer Customer S Custome r Satisf tisfac action tion Reta etail il Custome ustomer r Sa Satis tisfac action tion #1 % Satisfied ('Very Satisfied' or 'Fairly Satisfied') Retail 82.8% 82 .8% 87% #1 Business = 82% #1 77% Wealth 72% #1 IFS 67% #1 Internet CBA Peers 62% Jun 16 Jun 06 Refer notes slide at back of this presentation for source information 7
Divisional Divisiona l Contributions Contributions Cash Cash NP NPAT T FY1 FY16 1 Income 8% C:I 30 bpts to 41.7% C:I 150 bpts to 32.6% Reduced impairment credit Business loans 6% Loan impairment 18% Home loans 9% C:I 110 bpts to 37.3% Markets 14% 2 Loan impairment 46% Loan impairment 51% + 11% Funds Income 2% CommInsure 13% + 5% -9% -4% + 5% -6% $m 4,436 1,567 1,164 617 763 908 RBS BPB IB&M WM BWA ASB 3 1. All movements on prior comparative period except where noted 8 2. Growth in Markets income excluding derivative valuation adjustments 3. ASB result and performance metrics in NZD
Ongoing Ong oing volume olume growth wth Balance Balan ce Gr Growth wth 1 12 months to Jun 16 Driven by continued strong growth in Transaction Accounts ASB – strong growth across the board: housing, business, rural Above system growth in 2H16 12.7% BPB > system in 2H16 IB&M < system in 2H16 8.8% 9.5% 8.8% 9.1% 6.7% 7.0% 6.6% 6.1% 6.6% Household Home Business ASB ASB Deposits Lending Lending 2 (Home Lending) (Business & Rural) ex Bankwest 1. Spot balance growth twelve months to June 2016. Source RBA/APRA/RBNZ. 9 System CBA includes BWA except Business Lending. 2. Domestic Lending balance CBA growth (BPB & IB&M). Source RBA.
Transaction ansaction Banking Banking 1 Grou Gr oup T p Tran ansaction saction Balan alance ces Stron Str ong g g growth th ac across oss divi divisi sion ons $m FY16 v FY15 40% + 22% 34% Group 20% 126,780 +22% 14% 103,528 14% 88,351 15% Ex 17% 14% offset 9% accounts 2 RBS BPB IB&M BWA NZ FY14 FY15 FY16 Inno In nova vation & tion & Simpli Simplicity city RBS S Ne New Tran ansaction saction A Acc ccou ounts nts 3 # Real time + 29% Instant Banking 1,070k 959k 831k Fast, simple processes FY14 FY15 FY16 1. Includes non-interest bearing deposits. 2. Excludes Cash Management Pooling Facilities (CMPF). 3. Number of new RBS 10 personal transaction accounts, including offset accounts.
Innova Inno vation and Simp tion and Simplicity licity Simpli Simplified fied Ho Home me Lo Loan ans Simpli Simplified fied Per ersona sonal l Lo Loan ans Easy Easy conversion application of and approval conditional with focus on to full financial approval wellbeing Enhan Enh ance ced d Pr Prop oper erty Se ty Sear arch In Instant B stant Ban anking king Open, fund Now across and access key platforms transaction – property accounts listings, in under 5 prices etc minutes 11
Inno Innova vation and Simp tion and Simplicity licity Paper perless less Sta Statement tements s Instant Instant Banking Banking Photo a bill Photo a bill October 2015 May 2016 June 2016 BPAY details Move to paperless New transaction automatically statements with a single accounts opened < 5 populated from photo click - over 800,000 minutes + instant additional accounts now access via Cardless – simple click for paperless 1 Cash, Tap & Pay payment 1. Since launch in October 2015 12
Pr Productivity oductivity + + Ef Efficienc ficiency + + In Investment estment Pr Prod oduc uctiv tivity ity Cost-to Cost to-In Inco come me Rein einvestmen estment (%) ($m) As Asset et Finance Finance Appr pproval al 73% +10% (Turnaround time) 44.6 SME Loan Loan 1,373 Appr pproval al - IFS FS 72% Branches (Turnaround time) 12% & Other 1,246 42.8 42.4 Risk & 37% Colonial Colonial Compliance Customer Cus tomer 85% Reques equests ts (Turnaround time) Productivity 51% & Growth Bankw Bankwes est t Small mall Bus Busines iness 97% Cr Credit edit Car Card (Turnaround time) FY12 FY15 FY16 FY15 FY16 13
Strength Str ength Dep Deposit osit Who holesale lesale Capita Ca pital Liquidity Liqu idity 3 Fund Fu nding ing Fund Fu nding ing $bn Portfolio Tenor 2 Basel III % of Total Funding (years) Common Equity Tier 1 LCR 14.4% 120% 120% 12.7% Internationally comparable 1 134 132 4.1 10.6% 66% 3.8 59 65% CLF 1 9.1% 66 HQLA 1 75 assets 66 Jun 15 Jun 16 Jun 15 Jun 16 Jun 15 Jun 16 Jun 15 Jun 16 1. Refer glossary for definitions 2. Weighted Average Maturity of long term wholesale debt. Includes all deals with first call or 14 residual maturity of 12 months or greater. 3. Liquids are reported net of applicable regulatory haircuts.
Depos Dep ositor itors s and and sha shareho eholder lders s fund our fund our lending to lending to bor borrower ers Deposi Depositor tors Sha Shareh eholde olders Borrower Bor ers 11.3 million Over 800,000 1.9 million Australian households are deposit customers home loan customers direct shareholders and millions more individuals through their superannuation funds 76% A customer who invests in a 3 $403 year term deposit offer will earn of profits are paid to shareholders as dividends. per year saved on the average $575 variable home loan** The average retail shareholder more per year* will receive $3,738 this year * based on the average customer term deposit balance and CBA 3 year TD offer announced on 2 August, 2016 15 ** based on rate reduction announced on 2 August, 2016
Br Broa oad d co cont ntribu ributo tor r to to A Aus ustr tralian alian wellbeing ellbeing Operating Income Loan impairment FY16 Expenses Cost of lending across the economy Including ~5,000 SME $24.6bn partners and suppliers (>90% Australian) $1.3bn Tax expense $4.2bn Australia’s largest tax payer 1 and signatory of $3.6bn the Voluntary Tax Transparency Code Salaries $2.3bn $6.2bn Employing ~41,400 people in Australia, ~51,700 globally $7bn Retained for capital and growth Over $192 billion in new Dividends lending in FY16 Returned to over 800,000 shareholders & super funds All figures are annual figures as at 30 June 2016 16 1. Bloomberg data as at July 2016
Outlook Outloo 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 – conservatism, focus on the long-term, wary of structural responses to cyclical trends 17
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