RESULTS PRESENTATION Results Presentation FOR THE FULL YEAR ENDED - PowerPoint PPT Presentation

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

Disclaimer & Important Notice Disclaimer 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 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. Investors should consult with their own legal, tax, business and/or financial advisors in connection with any investment decision. Any forward-looking statements included in this presentation speak only as at the date of this presentation and undue reliance should not be placed upon such statements. Although the Group believes the forward-looking statements to be reasonable, they are not certain. To the maximum extent permitted by law, responsibility for the accuracy or completeness of any forward-looking statements whether as a result of new information, future events or results or otherwise is disclaimed. The Group is under no obligation to update any of the forward-looking statements contained within this presentation, subject to disclosure requirements applicable to the Group. 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

1 CBA snapshot Snapshot FY16 Financial at 30 June 2016 1 To excel at securing and enhancing 9,450 3% Cash earnings ($m) the financial w ellbeing of 16.5% (170) bps ROE (Cash) people, businesses and communities Cash EPS ($) 5.55 - 4.20 - DPS ($) Integrity 42.4% (40) bps Accountability Cost-to-Income Collaboration 2.07 (2) bps NIM (%) Excellence Service 2.06 - NIM (%) ex Treasury & Markets Balance Sheet Capital & Funding 14.4% 170 bps Capital – CET1 (Int’l) 4 933 7% Total assets ($bn) 10.6% 150 bps Capital – CET1 (APRA) 872 6% Total liabilities ($bn) LT wholesale funding WAM (yrs) 4.1 0.3yrs 143 4% FUA ($bn) – average 66% 1% Deposit funding (%) 395 7% RWA ($bn) 120% - Liquidity Coverage Ratio (%) 1.09% (5) bps Provisions to Credit RWAs (%) N/A 5 5.0% Leverage Ratio (APRA) 1. All movements on prior comparative period unless stated 2. Operating Performance is Total Operating Income less Operating 3 Expense 3. Growth (1%) ex CVA / FVA 4. Internationally comparable capital - refer glossary for definition 5. The Group commenced disclosure of its leverage ratio at 30 September 2015, thus no comparatives have been presented

Divisional Contributions 1 Cash NPAT FY16  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% + 5%  CommInsure  13% -9% -4% + 5% -6% $m 4,436 1,567 1,164 617 763 908 3 Retail Banking Business & Institutional Wealth Bankw est ASB Services Private Bank Bank & Markets 1. All movements on prior comparative period except where noted 4 2. Growth in Markets income excluding derivative valuation adjustments 3. ASB result and performance metrics in NZD

Ongoing volume grow th Balance Grow th 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. 5 System CBA includes BWA except Business Lending. 2. Domestic Lending balance CBA growth (BPB & IB&M). Source RBA.

Operating Income up 5% $m +5.3% Funds & Insurance +3%  +4.7% before FX Average FUA 4%  Insurance income flat 2,811 2,730 Other Banking Income +1% 4,860 4,811  FVA / CVA ($35m)  Trading (ex FVA/CVA) 8% OBI (ex Trading)  flat 16,935 15,827 Net Interest Income +7%  Volume 8% Margin (2) bpts  FY15 FY16 6

Underlying expenses up 3% Total Operating Expenses $m + 4.4% Underlying + 3.0% 71 71 65 250 10,429 (21) 10,293 9,993 FY15 Staff Amortisation Other FY16 Investment FX FY16 underlying Spend increase 7

Investment spend Gross Investment Spend Investment Spend $m % of total 1,373 1,286 1,246 Branches 1,237 11% 12% 12% 1,182 & Other 1,179 24% 692 Risk & 30% 37% 639 Compliance 2 nd Half 651 655 638 593 65% Productivity 58% 51% 681 & Growth 647 1 st Half 589 595 582 541 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY16 8

Group NIM 12 Month Movement 214 209 bpts 207 210 206 206 FY14 FY15 FY16 2 - - 209 207 (2) (2) 206 206 ex Treasury & Markets Group NIM  3bps ex Treasury & Markets FY15 Asset Funding Portfolio Capital & Treasury & FY16 pricing costs & mix Other Markets Basis risk 9

Underlying Group NIM dow n 1bpt 1 6 Month Movement bpts 212 207 208 206 209 206 205 204 Dec 14 Jun 15 Dec 15 Jun 16 1 208 2 206 (1) (3) (1) 206 205 ex Treasury & Markets 1H16 Asset Funding Portfolio Capital & Treasury 2H16 pricing costs & mix Other & Markets Basis risk 1. Excluding Treasury and Markets 10

Sound credit quality Loan Impairment Expense Consumer (bpts) 19 18 18 18 17 17 CBA Group (bpts) FY11 FY12 FY13 FY14 FY15 FY16 Corporate (bpts) 30 24 Uptick largely in 13 13 73 commodity and 43 related sectors 1Q16 2Q16 3Q16 4Q16 24 23 20 13 11 FY11 FY12 FY13 FY14 FY15 FY16 Troublesome and Impaired Assets 41 $bn Group Impaired 9.5 Commercial Troublesome 8.2 7.0 25 6.6 6.5 4.3 6.0 5.9 21 3.9 20 19 3.4 3.1 3.4 16 16 2.9 2.8 5.2 4.3 3.6 3.5 3.1 3.1 3.1 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Pro Forma Cash LIE basis points (bpts) calculated as a percentage of average GLA. FY09 includes Bankwest on a pro-forma basis and is based 11 on LIE for the year. Statutory LIE for FY10 48 bpts, FY13 21 bpts and FY14 16 bpts. Consumer Home Loan Arrears exclude Reverse Mortgage, Commonwealth Portfolio Loan (RBS only) and Residential Mortgage Group (RBS only) loans.

Strong provisioning Collective Provisions Individual Provisions $m $m 2,818 2,779 2,762 695 Economic 762 755 Overlay Overlay unchanged 1,127 187 264 347 Bankwest 944 389 887 209 1,077 267 981 941 128 Consumer 169 128 610 566 492 Commercial 859 762 729 Jun 14 Jun 15 Jun 16 Jun 14 Jun 15 Jun 16 12

Funding and Liquidity Funding Long Term Funding Portfolio Tenor (years) 4 $bn 4.1 Source of funds Use of funds 3.9 3.8 66% (27) Deposit 38 Jun 15 Dec 15 Jun 16 Funded Liquidity 5 1 $bn 120% 123% 120% LCR (56) 140 132 134 NSFR 40 >100% 66 59 CLF 6 66 (1) (3) 8 HQLA 6 74 75 66 1 3 Equity FX Customer Short term New long 2, 3 Long term Lending Other Assets deposits funding term funding maturities Jun 15 Dec 15 Jun 16 12 Months to Jun 16 1. Includes net short term collateral deposits. 2. Includes restructure of swaps. 3. Reported at historical FX rates. 4. Weighted 14 Average Maturity of long term wholesale debt. Includes all deals with first call or residual maturity of 12 months or greater. 5. Liquids are reported net of applicable regulatory haircuts. 6. Refer glossary for definition.