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Stock Review: Commonwealth Bank of Australia drops on high volatility


Dateline: Monday September 16, 2019
Commonwealth Bank of Australia (ASX:CBA), Australia's largest Bank by market cap, traded between a four-day low of $A81.37 and three-day high of $A81.94. The average daily volatility of 1.4% places Commonwealth Bank of Australia's stock in the 4th quartile in the market, meaning it is the least volatile. Since the start of trading its volatility (highest price minus lowest price/lowest price) of 0.7% was 0.5 times the average daily volatility of 1.4%, up from 0.6% on Friday and 0.4% on Thursday. Commonwealth Bank of Australia's stock price has decreased 45.0c (0.6%) from its previous trading session to close at $A81.69. Compared with the All Ordinaries Index which rose 4.9 points (0.07%) in the day, the relative price change was -0.6%. There were 2,544,920 shares worth $A207.9 million traded today. The volume was 0.9 times the average daily trading volume of 2.9 million shares.

COMMONWEALTH BANK OF AUSTRALIA DIVIDENDS
The company paid a dividend of $A2.31 per share; the ex-dividend date was August 14.

Stock Summary
CurrencyAustralian Dollar (AUD)
1 AUD = 0.69 USD
Last$A81.69
Shares Outstanding1,770,239,507
SectorBank
Market Cap$A144.6 billion ($US99.4 billion)
52-Week Range($A)61.61 - 82.24
Ave Daily Volume2.9 million


INDEX

SECTION 1 THE PAST WEEK

SECTION 2 TODAY'S BEARISH SIGNALS

SECTION 3 TODAY'S BULLISH SIGNALS

SECTION 4 ONGOING BEARISH PARAMETERS

SECTION 5 ONGOING BULLISH PARAMETERS

SECTION 6 PRICE VOLUME DYNAMICS (PAST QUARTER)

SECTION 7 PERIOD-BASED SHAREHOLDER RETURNS

SECTION 8 COMMONWEALTH BANK OF AUSTRALIA PEER GROUP ANALYSIS & RANKING

SECTION 9 AMERICAN DEPOSITARY RECEIPTS

SECTION 10 STOCK NEWS

SECTION 11 COMMONWEALTH BANK OF AUSTRALIA FINANCIALS

SECTION 12 COMMONWEALTH BANK OF AUSTRALIA BOARD OF DIRECTORS

SECTION 13 CORPORATE PROFILE

SECTION 14 GLOSSARY

SECTION 1 THE PAST WEEK

Snapshot: Commonwealth Bank of Australia stock was up $A1.88 or 2.4% in the past week. Volume in the week was 0.9 times average trading of 14.6 million shares. It outperformed the All Ordinaries index in 5 out of 5 days.
DayCommonwealth Bank of AustraliaClose price [AUD]Price change %Relative change %Comment
FridayHits year-high 6th time in three months82.141.00.8Top Rise; VI*=1.2
ThursdayHits three-month high81.350.90.7Price rise on rising relative strength
WednesdayIncreases strengthening above moving average price80.60.90.5Price rise on rising relative strength
TuesdayIn 4th consecutive rise, nears two-month high79.890.10.6Price rise on rising relative strength
MondayHits two-month high79.810.30.2Price rise on rising relative strength

[Volume Index (VI); 1 is average]

SECTION 2 TODAY'S BEARISH SIGNALS

2.1 Short Selling
+ In the Australian Short Selling market of 863 stocks, short selling (on ASX and CHI-X) as a % of issued shares ranked 128th and within the top quartile of stocks. This means it was higher than market average of 0.05%, a bearish indicator.
+ The current short volume is 1.1 times its own historical average of 0.1%. It soared 131.9% from the previous day, soared 81.5% from a week ago and soared 10.8% from a month ago, a significant bearish indicator.

2.2 Downtrend
Today's Volatility:
The 0.7% discount to 12-month high of $A82.24 against the 32.6% premium to 12-month low of $A61.61 suggests the climb might be peaking.

2.3 Overvaluation
Price/Earnings
- Price/Earnings of 17.2 versus sector average of 14.4. We estimate the shares are trading at a current year P/E of 18 and a forward year P/E of 18.8.
Dividend Yield
- The relative yield of the stock, defined by its yield of 5.3%, divided by average yield of dividend yielding stocks in the All Ordinaries Index of 6.0% is 87.9%. This suggests the stock is overvalued in dividend yield terms.
Price to Book
- The Price to Book of 2.3 higher than average of 1.9 for the Bank sector. We estimate the shares are trading at a current year Price to Book of 2.2 and a forward year Price to Book of 2.

2.4 Other Bearish Signals
- Total Liabilities/ EBITDA of 32.1 is more than or equal to 5, this compares unfavourably with the Joseph Piotroski benchmark of 5.

Annual Trend in EPS and EBITDA:
- Profit growth and EBITDA growth have shown signs of deterioration in recent years. [Year ended, all figures in %]
YearEPS GrowthEBITDA Growth
Jun 18-7.5-1.8
Jun 1796.4


2.5 Overbought/Bearish Signals:
- The Relative Strength Index (RSI) of 83.1 has penetrated the overbought line of 70, suggesting the price gain of 6.4% in the last 14 days is unusually high.
- The stock is overbought according to the Williams % R indicator of -9.3, suggesting the price is close to its 14-day high of $A82.24.
- The Stochastic indicator of 96.9 has broken through the overbought line of 80; this indicates the price is close to its 14-day high and is likely to revert to a downtrend.

SECTION 3 TODAY'S BULLISH SIGNALS

3.1 Uptrend
Price/Moving Average Price and MACD:
- The Price/MAP of 1.12 for CBA is higher than the Price/MAP for the All Ordinaries Index of 1.11.
- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 80.11 minus the 26-day EMA of 79.15 is positive, suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.
- The price to 50-day EMAP ratio is 1.0, a bullish indicator. The 50-day EMAP has increased to $A78.49. An increase is another bullish indicator.
- The price to 200-day MAP ratio is 1.12, a bullish indicator. In the past 200 days this ratio has exceeded 1.12, 38 times suggesting further upside. The stock is trading above both its MAPs and the 50-day MAP of $A78.60 is higher than the 200-day MAP of $A73.09, a bullish indicator. The 200-day MAP has increased to $A73.09. An increase is another bullish indicator.

Past Week:
- In the past week, volume was 0.9 times average and the shares were up 2.4%. Monday's close price is at a 0.6% premium to its 5-day Volume Weighted Average Price (VWAP) of $A81.18.

Past Month:
- The present value of $A1,000 (PV1000) invested one month ago in Commonwealth Bank of Australia is $A1,098, comprising a capital gain of $A66 and dividend reinvested of $A32.
PV$10001-week1-month1-year
CBA.ASX1,0241,0981,282
All Ordinaries Index1,0051,0251,081


Past Quarter:
- Rises to Falls: In the last three months the number of rises outnumbered falls 35:30 or 1.2:1.
- In the last three months the stock has hit a new 52-week high six times, pointing to an uptrend.
- In the last 21 trading sessions there has been a net rise of 7.1%; the stock has advanced fourteen times and the biggest one day rise was 2.1% on August 30.

3.2 High Price Performance Indicators and rank of Commonwealth Bank of Australia in the Australian market:
DescriptionCBA ValueRank In Market
Today's Trading Turnover$A207.9 millionIn Top 1%
MCap$A144.6 billionIn Top 1%
Volatility %0.7In Top 8%


3.3 Undervaluation
MCap/Total Assets
- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.1. Compared with the rest of the market the stock is undervalued and ranks in the top 3% of stocks by value of Q Ratio.
- The company is cash rich with Cash to Market Capitalisation at 37.8%.
Brand Value/Enterprise Value
- Brandirectory have estimated Commonwealth Bank of Australia brand value at $A7.7 billion. The Brand Value represents 5.6% of the estimated Enterprise Value of $A138.2 billion. Enterprise Value is defined as MCap of $A144.6 billion plus net debt of $A-6.4 billion.

3.4 Other Bullish Signals
- Return on Equity of 12.0% versus sector average of 11.4% and market average of 10.6%.
- Return on Assets of 0.9% versus sector average of 0.8%.
- Return on Capital Employed of 40.5% versus sector average of 4.9% and market average of 6.7%.
- Market Capitalization has increased by $A57.2 billion from $A87.4 billion to $A144.6 billion in the last 12 years. This increase comprises cumulative retained earnings (RETE) of $A28.5 billion and Created Market Value of $A28.7 billion. The Created Market Value multiple, defined by the change in MCap for every $A1 of retained earnings is exemplary at $A2.01.

SECTION 4 ONGOING BEARISH PARAMETERS


4.1 Past 5 years Annual EPS growth:
Annual ReportEPS ($A)Growth %
20194.74-8.7
20185.19-10.1
20175.779.0
20165.29-2.0
20155.44.0

Average Annual Compounded rate of growth in EPS for the 5 years was -1.8%. There have been two rises and three declines in the past 5 years.

4.2 Thin interest cover and deteriorating
YearsInterest cover
Jun 20191.71
Jun 20181.82

Interest cover of 1.7 is thin and under a safe benchmark figure of 3. Moreover, it has decreased from 1.8 a year ago.

4.3 Decrease in Insider Buying :
In the past 5 years a total of 88,123,826 Commonwealth Bank of Australia shares (or 4.98% of the total shares on issue) worth $A7.7 million were bought by insiders. Based on a dynamic start date of 5 years ago, insider buying has averaged 17,624,765 shares per year. In the past year, insiders bought 5,886 shares, a decrease of 99.99% from the previous year.
YearNo. of SharesValue, AUD
Sep 16, 20195,88634,398
1 Yr ago88,023,15256,661
2 Yrs ago32,5072,642,566
3 Yrs ago3,341252,289
4 Yrs ago58,9404,708,001
Total88,123,8267,693,916


4.4 Low Performance Indicators and rank in the Australian market:
DescriptionValueRank In Market
Return on Assets [ROA] %0.9In Bottom 5%


4.5 Satisfies 3 out of 9 criteria of Joseph Piotroski [pass mark 5]
- Positive net income.
- Positive operating cashflow.
- Good quality of earnings [operating cashflow exceeds net income].

SECTION 5 ONGOING BULLISH PARAMETERS

5.1 Earnings yield > Bond Yield
(All figures in %)
Earnings Yield5.8
Dividend Yield5.28
Bond Yield1.23


- Earnings yield of 5.8% is 4.7 times the 10-year bond yield of 1.23%.

5.2 Dividend yield > Bond yield
(All figures in %)
Dividend Yield5.28
Bond Yield1.23
Spread4.05

The dividend yield of 5.28% is 4.29 times the triple-A bond yield of 1.23%. This is above the benchmark of 0.67 set by Benjamin Graham.

5.3 Dividend payout > Market Average
Dividend Payout (%)90.93
Market Average (%)22.3
Spread (PP)68.63

The dividend payout ratio of 90.9% is more than the market average of 22.3% for dividend paying stocks.

5.4 Low Debt to Equity and reducing
YearsDebt to Equity (%)
Jun 201932.97
Jun 201833.88
Jun 201732.21
Jun 20161,276.88

The debt to equity ratio of 33.0% is under a safe benchmark figure of 50%. Moreover, it has improved from 33.9% a year ago.

5.5 MCap: 5-Year Increase
In the past 5 years Market Capitalization has increased by $A14.7 billion from $A129.9 billion to $A144.6 billion. Based on a dynamic start date of 5 years ago, there have been declines in MCap in 2 out of 5 years.
  PriceMCap (AUD B)MCap (US$ B)
Last$A81.69144.699.4
1 Year ago$A67.53125.890
2 Years ago$A68.26132.6106.4
3 Years ago$A58.82119.290.1
4 Years ago$A60.09122.385.8
5 Years ago$A60.67129.9118.3


5.6 Moving Annual Return (Past 5 years)
Based on a dynamic start date of 5 years ago, the real rate of return has averaged 13.4%. The Moving Annual Return has consistently exceeded 4%.
CBAClose (AUD)Dividends (AUD)Capital Gain / (Loss) %% YieldAnnual Return %
Sep 1681.694.31216.427.4
1 Yr ago67.534.31(1.1)6.35.2
2 Yrs ago68.264.29167.323.3
3 Yrs ago58.824.2(2.1)74.9
4 Yrs ago60.094.2(1.0)6.96.0


Close 5 years ago $A60.67

5.7 Annualised Period-based Total Shareholder Returns [TSR %]
TSR %1 yr3 yrs5 yrs10 yrs20 yrs
CBA.ASX28.218.212.919.718

The annualised period-based Total Shareholder Returns [TSR %] for 1 yr, 3 yrs, 5 yrs, 10 yrs and 20 yrs has consistently exceeded 12.8%.

5.8 Present Value of AUD1,000 invested 20 years ago
- The present value of AUD1,000 (PV1000) invested twenty years ago in Commonwealth Bank of Australia is $A27,340, including a capital gain of $A6,814 and dividend reinvested of $A19,526.
- 20 years Multiplier in AUD = 27.34x
- Annualized Total Shareholder Returns (TSR) in AUD = 18.0%

5.9 Present Value of USD1,000 invested 20 years ago
- The present value of USD1,000 (PV1000) invested twenty years ago in Commonwealth Bank of Australia is $US28,675, including a capital gain of $US7,196 and dividend reinvested of $US20,480.
- 20 years ago AUD 1 equalled USD 0.6554
- 20 years Multiplier in USD = 28.675x
- Annualized Total Shareholder Returns (TSR) in USD = 18.3%

- The average annual compound return on the share price in the last 5 years was 12.9%, exceeding the average annual compound return on the All Ordinaries Index of 4.5%.

5.10 High Performance Indicators and rank in the Australian market:
DescriptionValueRank In Market
Turnover in Quarter$A15.8 billionIn Top 1%
MCap$US99.4 billionIn Top 1%
Return on Capital Employed [ROCE] %40.5In Top 4%
Cash to MCap %37.8In Top 5%
Volatility %0.7In Top 8%


5.11 Increased ADVT past five years
Avg. Daily Volume Traded 12 months ended Sep 16, million shares
YearADVT
20192.9
20182.7
20173.0
20163.1
20152.9

In the past five years, Average Daily Volume of Trading (ADVT) has increased 1.7% to 2.9 million shares.

5.12 Increased VWAP
Past five years, 12 months ended Sep 16 (AUD)
YearHigh PriceVWAPLow Price
201982.2471.6461.61
201873.7168.2461.55
201776.0269.3558.94
201668.6661.6456.1
201574.8164.2955.72

In the past five years Volume Weighted Average Price (VWAP) has increased by 11.4% to $A71.64. Based on a dynamic start date of five years ago, there have been declines in VWAP in 2 out of 5 years.

5.13 Increased Average Daily Turnover
Past five years, 12 months ended Sep 16 (AUD million)
YearAverage Daily Turnover
2019209.8
2018188.7
2017210.3
2016191.6
2015186.0

In the past five years, average daily share turnover has increased 12.8% to $A209.8 million. This suggests increased liquidity.

5.14 Period-based Price Change %
3-Year price change of 38.9% for CBA outperformed the change of 27.1% in the All Ordinaries index for a relative price change of 11.8%.
Price Change %QuarterYear3 Years
CBA5.52138.9
Bank3.58.111.5
All Ordinaries index2.28.127.1


5.15 Satisfies four criteria of Benjamin Graham
- "An earnings-to-price yield of at least twice the triple-A bond"; the stock's earning yield of 5.8% is 4.7 times the triple-A bond yield of 1.2%.
- "A dividend yield of at least two-thirds the triple-A bond yield"; the stock's dividend yield is 4.3 times the triple-A bond yield of 1.2%.
-"Total debt less than tangible book value"; total debt of AUD23 Billion is less than tangible book value of AUD61.7 Billion.
-"Stability of growth in earnings over the last 5 years, defined as no more than two declines of 5% or greater in year-end earnings";there have been 2 declines in earnings in the last 5 years.

SECTION 6 PRICE VOLUME DYNAMICS (PAST QUARTER)

6.1 YTD Aggregate Volumes

+ASX: CBA.ASX year-to-date volume is 525,513,908; volume 99.96% of aggregate. Average daily volume is 2,919,522.
Year-to-date (YTD) Volume Weighted Average Price (VWAP): $A76.0.
+Frankfurt: CWW.FRA year-to-date volume is 220,539; volume 0.04% of aggregate. Average daily volume is 3,270.
Year-to-date (YTD) VWAP: EUR48.0.
Using the current exchange rate of EUR1 equals 1.6119AUD, the shares are at a 1.8% premium to the year-to-date VWAP on ASX.
+YTD Aggregate volume: there were 525,734,447 shares of Commonwealth Bank of Australia worth AUD40.1 billion traded year-to-date.

6.2 The Best 3 weeks in the past quarter
Mon-FriChange %All Ordinaries index Change %RPC %Vol Ind [1 is avg]
Sep 09-133.30.42.90.9
Jun 17-213.11.51.61.4
Aug 19-23321.10.9

In the past quarter the week beginning Monday September 09 saw the highest weekly rise of 3.3% for a relative price increase of 2.9%.

6.3 The Worst 3 weeks in the past quarter
Mon-FriChange %All Ordinaries index Change %RPC %Vol Ind [1 is avg]
Aug 05-09-3-2.7-0.31.5
Aug 12-16-2.6-2.70.11.3
Jul 08-12-0.9-0.6-0.30.7

In the past quarter the steepest fall of 3.0% took place in the week beginning Monday August 05.

6.4 Stock Trading Volume and Turnover in the past 3 months
TurnoverUS$10.8 billion
Avg daily turnoverUS$164.3 million
Volume196,323,687
Avg daily volume2,974,601


6.5 Standard Deviation
SD is a statistical measure of deviation from the mean. The SD of 1.1% gives it a percentile rank of 4 meaning that 4% of stocks in the Australian market are less volatile than this stock.
 StockInterpretation
Beta1.0 
Standard Deviation1.1Less volatile

SECTION 7 PERIOD-BASED SHAREHOLDER RETURNS

7.1 Past Quarter
The stock rose 35 times (53% of the time), fell 30 times (45.5% of the time) and was unchanged 1 time (1.5% of the time). The aggregate volume equalled average trading of 2.9 million shares. The value of $A1,000 invested 3 months ago is $A1,086 [vs $A1,038 for the All Ordinaries Index], including a capital gain of $A55 and dividend reinvested of $A32.

7.2 Year-to-Date
Commonwealth Bank of Australia gains 22% in 2019
Commonwealth Bank of Australia (ASX:CBA), gained $A14.66 (or 21.9%) year-to-date (YTD) in 2019 to close at $A81.69 today. Compared with the All Ordinaries Index which has risen 18.8% YTD, this is a relative price increase of 3.1%.

7.3 Past Year
Commonwealth Bank of Australia gains 21% in past year
Commonwealth Bank of Australia (ASX:CBA), gained $A14.16 (or 21.0%) in the past year to close at $A81.69 today. Compared with the All Ordinaries Index which has risen 8.1% over the same period, this is a relative price increase of 12.9%.
The stock rose 135 times (53.4% of the time), fell 117 times (46.2% of the time) and was unchanged 1 time (0.4% of the time). The value of $A1,000 invested a year ago is $A1,282 [vs $A1,081 for the All Ordinaries Index], including a capital gain of $A210 and dividend reinvested of $A72.

7.4 Present Value of $A1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]
PV$A1,0003 mo ago1 yr ago3 yrs ago
CBA.ASX$A1,086$A1,282$A1,660
Bank sector$A1,038$A1,081$A1,103
All Ordinaries Index$A1,038$A1,081$A1,257


The present value of $A1,000 invested 3 mo ago, 1 Yr ago and 3 Yrs ago has consistently exceeded $A1,085.

SECTION 8 COMMONWEALTH BANK OF AUSTRALIA PEER GROUP ANALYSIS & RANKING

8.1 Global Peer Group (all figures in USD): Key Financials
In its Global Peer Group of 9 companies CBA is ranked second by Relative Strength, third by PV$1000, fifth by MCap, sixth by Total Assets and seventh by Net Profit.
Name (Code)Relative Str.
(6 mo)
MCapPV $1000
(1 yr)
RevenueNet ProfitTotal Assets
Rank of CBA253 76
China Merchants Bank - A Share (600036)80125.1B1,292.538.3B11.4B952.9B
Royal Bank of Canada (RY)71114.2B1,067.132.1B9.3B1,005.7B
Bank of China - A Share (601988)54109.1B1,107.781.4B23.2B2,563.6B
Toronto-Dominion Bank (TD)67103.5B1,005.529.3B8.3B1,005.8B
Commonwealth Bank of Australia (CBA)8199.4B1,227.0 5.7B670.7B
US Bancorp (USB)7888.4B1,077.8 6.8B467.4B
HDFC Bank (HDFCBANK)6286.5B1,141.017.5B3.2B182B
Sberbank of Russia (SBER)8377.8B1,341.2   
Mitsubishi UFJ Financial (8306)7373.6B931.462B8.1B2,879B

Global Peer Group: Relative Value Indicators
CBA is ranked fifth by P/Book, sixth by P/E and seventh by Turnover Rate.
CodeCountry CodeLast PriceP/EP/BookTurnover Rate (%)% Disc to 52-w HiRetention Ratio
Rank of CBA  657  
600036CNCNY35.011.81.744.85.968.7
RYCACAD105.2512.02.445.11.554.5
601988CNCNY3.66  15.35.4 
TDCACAD75.2112.52.246.34.353.2
CBAAUAUDA81.6917.32.437.70.19.1
USBUS$US56.0813.52.398.33.064.3
HDFCBANKINRs2,257.4527.14.029.69.676.0
SBERRURUB233.36  56.66.3 
8306JPJPY567.508.5 94.521.967.1


8.2 BuySellSignals Fundamentals Valuation Ranking: Commonwealth Bank of Australia vs Bank sector
Out of 1,433 stocks and 26 units in the Australian Market, Commonwealth Bank of Australia is ranked first by Total Debt/Equity, first by Market Cap $A, second by Free Cash Flow and fifth by ROE.
 Bank sectorCBARankRank 1Rank 2Rank 3Lowest Rank
Total Debt/Equity5.7x0.3x10.3x CBA0.8x BEN1.4x CYB8.7x WBC
Market Cap $A32.8 B144.6 B1144.6 B CBA103.1 B WBC84 B NAB140 M MOC
Free Cash Flow30.5 million10.6 B212.8 B WBC10.6 B CBA81.5 M BEN 
ROE (%)11.412.02531.5 AFG15.9 MOC15.6 RMC4.4 GMA
ROA (%)0.80.963.4 MOC2.1 GMA1.1 AFG0.3 RMC
Premium to 52-Wk Low (%)23.9732.6716.1 CYB17.9 BOQ18.3 MYS180.3 AFG
Discount to 52-Wk High (%)0.90.7962.6 CYB8.1 BOQ5.8 ANZ0.3 GMA
Yield (%)6.85.31011.8 GMA7.3 BOQ6.4 WBC2.5 CYB
P/Earnings14.4x17.2x1110.2x MOC11.6x BOQ12.4x ANZ19.9x GMA
Price/Net Tangible Assets1.9x2.3x110.8x GMA1.04x CYB1.2x ABA4.6x AFG

Negative values are shown in brackets.

8.3 Share in Index
Commonwealth Bank of Australia is a constituent of the following indices. Its market capitalisation accounts for 28.2% of the combined MCap of the S&P/ASX Dividend Opportunities Index.
Index NameMCap of Index (USD B)MCap as % of Index
S&P/ASX Dividend Opportunities Index352 28.2
S&P/ASX 200 Financial-x-A-REIT403 24.7
S&P/ASX 200 Financials Index403 24.7
S&P/ASX 20 Index774 12.8
S&P/ASX All Australian 501,032 9.6
S&P/ASX 50 Index1,036 9.6
S&P/ASX 100 Index1,239 8.0
S&P/ASX All Australian 2001,331 7.5
S&P/ASX 200 Index1,378 7.2
S&P/ASX 300 Index1,428 7.0
All Ordinaries Index1,494 6.7


8.4 Global Rank [out of 47,247 stocks] and Rank of Commonwealth Bank of Australia in the Asia Pacific Region [out of 2,048 stocks]
DescriptionValueGlobal RankIn APAC Region
MCap (US$)99.4B1082
Total Assets (US$)670.7B1141
Net Profit (US$)5.7B1752
Return on Equity %12.010,183325
Price to Book2.425,326938
Price/Earnings17.312,823363
Yield %5.25,577223
PV1000 (1Year) USD*1,2277,159393
US$* Change (1Year) %16.98,501422


* 1 year ago AUD 1 = USD 0.72
Sep 16, 2019: AUD 1 equals USD 0.69

8.5 Rank of Commonwealth Bank of Australia in the All Ordinaries Index [out of 477 stocks], in the Total Australian Market [out of 1822 stocks] and in the Bank sector [out of 12 stocks]
DescriptionValueIn All Ordinaries IndexIn Total Australian MarketIn Bank sector
MCap (AUD)144.6B221
Total Assets (AUD)976.5B111
Net Profit (AUD)8.4B221
Return on Equity %12.01852945
Price to Book2.318889010
Price/Earnings17.217133111
Yield %5.311019711
PV1000 (1Year) AUD1,2821313685


8.6 Independent Ratings
+ S&P Global Market Intelligence 100:
Commonwealth Bank of Australia was ranked 45 in SNL's list of Top 100 Banks by Total Assets in 2016; a deterioration over a year from rank 44 in 2015.
+ PwC 100:
It is a new entrant in PwC's list of Top 100 Global companies; ranked 63rd by MCap as at March 31, 2015.
+ FT 500:
It is the 47th largest by profit in the FT Global 500.
+ Fortune 500:
It was ranked 333 by total revenues in the Fortune 500 annual list for 2017; a deterioration over a year from rank 269 in 2016.
+ Newsweek 500:
It was ranked 15 by Newsweek and Corporate Knights Capital in the World's 500 Greenest Companies 2016. It had outstanding scores of 14.2% in Energy productivity, 12.8% in Water productivity and 11.4% in Carbon productivity.
+ Brand Finance 500:
It was ranked 29 in the Brand Finance list of the world's 500 Valuable Banking brands by brand value in 2015; an improvement over a year from rank 42 in 2014. Brand Finance valued the brand at US$7,520 million and ranked it Number 29 in APAC.
+ Forbes 2000:
It is the 236th largest by revenue in the Forbes Global 2000.
+ BuySellSignals/News Bites:
It is placed 372/1366 in BuySellSignals News Bites' ranking of Australian performers in the past year, a percentile ranking of 73.
+ Vanguard Total World Stock ETF 7636:
The stock was one of 7636 global stocks selected by Vanguard Total World Stock ETF (VT). As at Jul 31, 2019, the Vanguard Total World Stock ETF held 585,033 shares worth $US33,060,799 or 0.19% by value of the ETF's portfolio [Ranked 74 out of 7636 by value and 1 out of 243 for Australia].

SECTION 9 AMERICAN DEPOSITARY RECEIPTS

Commonwealth Bank of Australia, the ADR market's 3rd largest Bank by market cap, climbed $US8.16 (or 16.9%) in the trailing 12 months to September 13, 2019 to close at $US56.59. This means the ADR has outperformed 87% of OTC-listed ADRs in the same period. Compared with the Bank of New York Mellon Composite ADR Index which has fallen 1.5% over the same period, this is a relative price increase of 18.4%. Average daily volume of 23,958 ADRs in the trailing year was 1.1 times average daily volume in the previous year.

9.1 ADR Summary
SymbolCMWAY
PriceUSD 56.59
% Change YTD18.7
ISINUS2027126000
CUSIP202712600
Ratio1 ADR equals 1 ordinary share
TypeSponsored
Avg. Daily Volume23,958


SECTION 10 STOCK NEWS

10.1 Commonwealth Bank of Australia Corporate Wires

10.1.1 Changes in Board (TTM)
February 25: Commonwealth Bank of Australia: Retirement of Anna Lenahan
Monday, 25 February 2019 (SYDNEY) : Commonwealth Bank today announced Anna Lenahan, Group General Counsel and Group Executive Group Corporate Affairs, will retire effective 30 June 2019.
"Anna has played a critical role in helping to steer the Group th r ough a wide variety of legal and regulatory challenges including AUSTRA C, BBSW, the APRA Inquiry and the Royal Commission, as well as important transactions that will simplify the Bank including the sale of CommInsure Life to AIA and Colonial First State Global Asset Management to Mitsubishi UFJ Trust and Banking Corporation, " said Matt Comyn, Chief Executive Officer.
Source: Australian Securities Exchange

October 15 2018: Commonwealth Bank of Australia appoints Chief Financial Officer
Commonwealth Bank of Australia has appointed Alan Docherty as Chief Financial Officer. The effective date is Monday, October 15.

10.1.2 Dividends
August 08: Commonwealth Bank of Australia announces dividend
Commonwealth Bank of Australia today announced a final dividend of $A2.31 per share, franked to 100%. The ex dividend date is Wednesday, August 14, 2019 and the record date is Thursday, August 15, 2019 and it is payable on Thursday, September 26.

February 07: Commonwealth Bank of Australia announces dividend
Commonwealth Bank of Australia today announced an interim dividend of $A2.0 per share, franked to 100%. The ex dividend date is Wednesday, February 13, 2019 and the record date is Thursday, February 14, 2019 and it is payable on Thursday, March 28.

10.1.3 Performance
February 06: Commonwealth Bank of Australia: ASB Half Year Results Media Release
ASB today reported a statutory net profit after taxation (NPAT) of $ 6 30 million for the six months ended 31 December 2018. This represents a 6 % increase on the prior comparative period.
Cash NPAT was $ 6 0 8 million, an increase of 6 % on the prior comparative period. Cash NPAT presents ASB's underlying operating results and e xcludes items that introduce volatility and/or one - off distortions which are not considered representative of ASB's on - going financial performance 1.
Source: Australian Securities Exchange

February 06: Commonwealth Bank of Australia: 2019 Half Year Results ASX Announcement
CBA continued to deliver strong core business outcomes in a challenging period. The highlights included robust transaction deposit growth and strengthened balance sheet resilience with the Bank now above 'unquestionably strong' capital requirements. We maintained our focus on being best in digital and achieved leading rankings for the CommBank mobile banking app and for digital customer advocacy. We are also on track to deliver a more focused portfolio of businesses in line with our competitive advantages.
Source: Australian Securities Exchange

10.1.4 Press Releases
July 09: Commonwealth Bank of Australia: APRA's decision on loss-absorbing capacity of ADIs
Tuesday, 9 July 2019 ( SYDNEY ): C ommonwealth Bank of Australia ( CBA ) today notes the response by Australian Prudential Regulatory Authority ( APRA ) to the submissions for the November 2018 consultation paper on the loss - absorbing capacity ( LAC ) of Authorised Deposit - taking institutions ( ADIs ).
Source: Australian Securities Exchange

June 19: CBA Instalment Warrants Reset Announcement
Commonwealth Bank of Australia (CBA) Equity Products Gr ou p advises that, further to our announcement dated 20 May 201 9, the following Instalment Warrants have been reset after close of trading on 1 8 June 201 9. The table below shows the Interest Amount and the new Loan Amount. The new Interest Amount drawn down has been added to the Loan Amount. Holders are not required to make any additional payments from their own funds in relation to this reset
Source: Australian Securities Exchange

June 13: CBA announces divestment of Count Financial
Thursday, 13 June 2019 (Sydney): Commonwealth Bank of Australia (CBA) has today entered into an agreement to sell Count Financial Limited (Count Financial) to ASX - listed CountPlus Limited (CountPlus) for $2.5 million (the Transaction). CountPlus is a logical owner of Count Financial given its historical corporate relationship and equi ty holdings in 15 Count Financial member firms.
Source: Australian Securities Exchange

May 30: Commonwealth Bank of Australia: Suspension and Removal from Official Quotation - CBAHX
Commonwealth Bank of Australia 2.00% 5 - year Covered Bonds due 18 June 2019 - Suspension of Class (ASX: CBAHX ) from Official Quotation
Source: Australian Securities Exchange

April 18: Commonwealth Bank of Australia: Colonial First State Fee Cuts
18 April 2019: Colonial First State today announced significant fee reductions across its superannuation and investment platforms, reducing the cost of investing for over 500,000 members.
Source: Australian Securities Exchange

March 18: Commonwealth Bank settles R&D tax matter
Monday, 18 March 2019 (SYDNEY) : Commonwealth Bank of Australia (CBA) and the Australia n Taxation Office (ATO) have entered into an agreement relating to Research and Development (R&D) tax claims.
Under the agreement terms, CBA has agreed to withdraw from all current proceedings with the ATO and Innovation and Science Australia (ISA) before the Administrative Appeals Tribunal ( AAT) in respect of the eligibility of R&D claims that were made for the years ended 30 June 2012 and 30 June 2013 relating to the CBA core banking modernisation project that involved digital transformation and software development. All other prior year mat ters have also been finalised.
Source: Australian Securities Exchange

March 14: Commonwealth Bank of Australia: Wealth management and mortgage broking businesses update
Thursday, 14 March 2019 (SYDNEY): Commonwealth Bank of Australia (CBA) has today provided an update on its remediation and demerger plans for its wealth management and mortgage broking businesses.
The update follows the release la st week of CBA's full response to implementing the recommendations from the Royal Commission.
Source: Australian Securities Exchange

March 08: CBA updates on actions for the Royal Commission
Friday, 8 March 2019 (SYDNEY) : Attached is the opening statement by Commonwea lth Bank CEO Matt Comyn before t he House of Representatives Standing Committee on Economics - Review of the Four Major Banks.
A table outlining CBA's progress and action s to address the recommendations of the Royal Commission is also attached.
Source: Australian Securities Exchange

February 06: Commonwealth Bank of Australia: Redemption of ASB Capital Perpetual Preference Shares
6 February 2019 (Sydney): Commonwealth Bank of Australia ( CBA ) today announce d that it intends to redeem ASB Capital Limited Perpetual Preference Shares and ASB Capital N o.2 Limited Perpetual Preference Shares, at par plus any accrued dividends, on 15 May 2019.
The securities are listed on the New Zealand Stock Exchange and currently qualify as the Group's Additional Tier 1 capital under APRA's Basel III transitional arrangements.
Source: Australian Securities Exchange

February 06: Commonwealth Bank of Australia: Update on Prudential Inquiry Remedial Action Plan
Wednesday, 6 February 2019 (SYDNEY) : Commonwealth Bank of Australia (CBA) today released Promontory Australasia's second independent report into CBA's progress against its Remedial Action Plan.
The Remedial Action Plan was designed to address all of the recommendations of APRA's Prudential Inquiry into CBA release d in May 2018, with the goal of strengthening governance, cu lt ure and account ability. The report provides an update on actions CBA has taken to execute against the Remedial Action Plan to 30 November 2018
Source: Australian Securities Exchange

January 18: Commonwealth Bank of Australia: Update on non-cash items and 1H19 financial comparatives
Friday, 18 January 2019 (Sydney): Commonwealth Bank of Australia (CBA) today provides an update on unaudited non - cash items, changes to financial reporting and 2019 Interim financial comparatives (refer to Attachment A for detailed comparative tables).
Source: Australian Securities Exchange

October 09 2018: CBA takes further action to improve its wealth businesses
Tuesday, 9 October 2018. Commonwealth Bank today announced further actions to improve outcomes for wealth managem ent customers including the rebating of grandfathered commissions for Commonwealth Financial Planning (CFP) customers, and a review and remediation program for any instances where unauthorised advice fees have been charged to deceased estates.
Source: Australian Securities Exchange

SECTION 11 COMMONWEALTH BANK OF AUSTRALIA FINANCIALS

11.1 Financials Summary
Year endedJun 2019Jun 2018Jun 2017
Pretax (USD B)8.199.4
Net (USD B)5.76.26.8
EPS (AUD)4.745.195.77

+ Net profit was down 7.7% from US$6.2 billion in 2018 to US$5.7 billion in 2019.
+ Earnings Per Share (EPS) was down 8.7% from $A5.19 to $A4.74.
11.2 Financial Results as reported (Annual)

RESULTS OF OPERATIONS AND FINANCIAL CONDITION
(In $A Million, except per share data and shares outstanding)

INCOME STATEMENT AS REPORTED
Description$A Million$A Million 
Jun 3020192018Change %
Interest income:   
Effective interest income34,08933,643Up 1.3
Other499501Down 0.4
Interest expense-16,468-15,802Deterioration 4.2
Net interest income18,12018,342Down 1.2
Other banking income4,9945,423Down 7.9
Net banking operating income23,11423,765Down 2.7
Net funds management operating income1,0731,124Down 4.5
Net insurance operating income150241Down 37.8
Total net operating income before impairment and operating expenses24,33725,130Down 3.2
Loan impairment expense-1,201-1,079Deterioration 11.3
Operating expenses-11,373-11,029Deterioration 3.1
Net profit before income tax11,76313,022Down 9.7
Corporate tax expense-3,391-3,952Improved 14.2
Net profit after income tax from continuing operations8,3729,070Down 7.7
Non-controlling interests in net profit after income tax from continuing operations-12-13Improved 7.7
Net profit attributable to equity holders of the Bank from continuing operations8,3609,057Down 7.7
Net profit after income tax from discontinued operations218278Down 21.6
Non-controlling interests in net profit after income tax from discontinued operations-7-6Deterioration 16.7
Net profit attributable to equity holders of the Bank8,5719,329Down 8.1
Earnings per share from continuing operations:(1)   
Basic$A4.74$A5.19Down 8.7
Diluted$A4.58$A5.03Down 8.9
Earnings per share:   
Basic$A4.86$A5.34Down 9.0
Diluted$A4.69$A5.18Down 9.5


BALANCE SHEET AS REPORTED
Description$A Million$A Million 
Jun 3020192018Change %
Assets   
Cash and liquid assets29,38736,417Down 19.3
Receivables due from other financial institutions8,0939,222Down 12.2
Assets at fair value through Income Statement:   
Trading32,50632,254Up 0.8
Insurance 372 
Other1,171258Up 353.9
Derivative assets25,21532,133Down 21.5
Investment securities:   
At amortised cost7,355  
At fair value through other comprehensive income78,912  
Available-for-sale investments 82,240 
Loans, bills discounted and other receivables755,141743,365Up 1.6
Bank acceptances of customers32379Down 91.6
 937,812936,640Up 0.1
Property, plant and equipment2,3832,576Down 7.5
Investments in associates and joint ventures3,0012,842Up 5.6
Intangible assets7,9659,090Down 12.4
Deferred tax assets1,6751,439Up 16.4
Other assets7,1156,924Up 2.8
Assets held for sale16,55115,654Up 5.7
 38,69038,525Up 0.4
Total assets976,502975,165Up 0.1
Liabilities   
Deposits and other public borrowings636,040622,234Up 2.2
Payables due to other financial institutions23,37020,899Up 11.8
Liabilities at fair value through Income Statement8,52010,247Down 16.9
Derivative liabilities22,77728,472Down 20.0
Bank acceptances32379Down 91.6
Current tax liabilities326952Down 65.8
Other provisions2,7511,860Up 47.9
Insurance policy liabilities 451 
Debt issues163,990172,294Down 4.8
Bills payable and other liabilities10,28511,625Down 11.5
Liabilities held for sale15,79614,900Up 6.0
 883,887884,313Down
Loan capital22,96622,992Down 0.1
Total Mabilities906,853907,305Down
Net assets69,64967,860Up 2.6
Shareholders' Equity   
Ordinary share capital38,02037,270Up 2.0
Reserves3,0921,676Up 84.5
Retained profits28,48228,360Up 0.4
Shareholders' Equity attributable to equity holders of the Bank69,59467,306Up 3.4
Non-controlling interests55554Down 90.1
Total Shareholders' Equity69,64967,860Up 2.6


CASH FLOW AS REPORTED
Description$A Million$A Million 
Jun 3020192018Change %
Cash flows from operating activities   
Interest received34,75735,801Down 2.9
Interest paid-15,695-15,356Deterioration 2.2
Other operating income received5,8086,181Down 6.0
Expenses paid-10,784-10,340Deterioration 4.3
Income taxes paid-4,878-4,791Deterioration 1.8
Net inflows from assets at fair value through Income Statement (excluding life insurance)2,4825,270Down 52.9
Net inflows/(outflows) from liabilities at fair value through Income Statement:   
Insurance:   
Investment income340225Up 51.1
Premiums received (3)2,4143,241Down 25.5
Policy payments and commission expense (3)-3,061-3,453Improved 11.4
Other liabilities at fair value through Income Statement126-208Recovery
Cash flows from operating activities before changes in operating assets and liabilities11,50916,570Down 30.5
Changes in operating assets and liabilities arising from cash flow movements   
Movement in investment securities:   
Purchases-41,925  
Proceeds43,239  
Movement in available-for-sale investments:   
Purchases -51,783 
Proceeds 52,832 
Net increase in loans, bills discounted and other receivables-9,465-16,105Improved 41.2
Net decrease in receivables due from other financial institutions and regulatory authorities1,345884Up 52.1
Net decrease in securities purchased under agreements to resell9309,258Down 90.0
Insurance business:   
Purchase of insurance assets at fair value through Income Statement-1,383-1,594Improved 13.2
Proceeds from sale/maturity of insurance assets at fair value through Income Statement2,5122,671Down 6.0
Net decrease/(increase) in other assets525-11Recovery
Net increase/(decrease) in deposits and other public borrowings4,891-876Recovery
Net increase/(decrease) in payables due to other financial institutions2,154-8,279Recovery
Net increase/(decrease) in securities sold under agreements to repurchase4,402-1,574Recovery
Net decrease in other liabilities-648-884Improved 26.7
Changes in operating assets and liabilities arising from cash flow movements6,577-15,461Recovery
Net cash provided by operating activities18,0861,109Up 1,530.8
Cash flows from investing activities   
Cash inflows/(outflows) from acquisitions 26 
Net proceeds from disposal of entities and businesses (net of cash disposals)1,259  
Dividends received14168Up 107.4
Proceeds from sale of property, plant and equipment151155Down 2.6
Purchases of property, plant and equipment-326-477Improved 31.7
Net cash flows from sales/(acquisitions) of associates/joint ventures72-271Recovery
Net purchase of intangible assets-314-503Improved 37.6
Net cash provided by/(used in) investing activities983-1,002Recovery
Cash flows from financing activities   
Dividends paid (excluding Dividend Reinvestment Plan)-6,853-5,366Deterioration 27.7
Redemption of other equity instruments (net of costs)-505  
Proceeds from issuance of debt securities56,44868,273Down 17.3
Redemption of issued debt securities-73,747-67,809Deterioration 8.8
Purchase of treasury shares-93-95Improved 2.1
Sale of treasury shares2255Down 60.0
Issue of loan capital1,5794,445Down 64.5
Redemption of loan capital-2,637-464Deterioration 468.3
Proceeds from issuance of shares (net of issue costs)   
Other4727Up 74.1
Net cash used in financing activities-25,739-934Deterioration 2,655.8
Net decrease in cash and cash equivalents-6,670-827Deterioration 706.5
Effect of foreign exchange rates on cash and cash equivalents675715Down 5.6
Cash and cash equivalents at beginning of year23,00523,117Down 0.5
Cash and cash equivalents at end of year17,01023,005Down 26.1


11.3 Annual Report: Key Parameters
FY2019 Annual Report: Commonwealth Bank of Australia Net Profit down 7.7%

Commonwealth Bank of Australia (ASX:CBA) reported net profit for the year-ended 30 June 2019 of $A8.4b, down 7.7% from $A9.1b in the previous year.

Major changes compared with previous year:
Favourable Changes:
- Working capital to total assets up 5.4% to 3.2%
Unfavourable Changes:
- Net profit down 7.7% from $A9.1b ($US6.7b) to $A8.4b ($US5.9b)
- EPS down 8.7% from $A5.19 ($US3.83) to $A4.74 ($US3.33)
- EBIT to total assets down 2.2 from 3% to 2.9%
- Return on Equity down from 13.4% to 12%
Note:
- Retained earnings to total assets steady at 2.9%

Annual Report [Year-on-year comparison: 2019 vs 2018]
Company Name : Commonwealth Bank of Australia (CBA)     
June 302019201820192018Change
Description$A ('000)$A ('000)$US ('000)$US ('000)(%)
EBITDA28,231,00028,824,00019,827,534.721,281,652.7Down 2.1
EBITD28,231,00028,824,00019,827,534.721,281,652.7Down 2.1
EBIT28,231,00028,824,00019,827,534.721,281,652.7Down 2.1
Finance cost16,468,00015,802,00011,566,003.411,667,106.5Up 4.2
Pre-Tax Profit/(Loss)11,763,00013,022,0008,261,531.39,614,546.3Down 9.7
Profit/(Loss) after Tax8,360,0009,057,0005,871,495.56,687,063.9Down 7.7
Working Capital30,959,00029,335,00021,743,496.421,658,939.9Up 5.5
Current Assets937,812,000936,640,000658,655,377.6691,550,347.8Up 0.1
Shareholders' Funds69,594,00067,306,00048,878,093.249,694,106.3Up 3.4
Total Assets976,502,000975,165,000685,828,602.7719,994,549.6Up 0.1
Current Debt22,966,00022,992,00016,129,756.716,975,706.4Down 0.1
Total Debt22,966,00022,992,00016,129,756.716,975,706.4Down 0.1
Cash and cash equivalents29,387,00036,417,00020,639,430.526,887,800Down 19.3
Net Assets69,649,00067,860,00048,916,721.550,103,141.7Up 2.6
Net Tangible Assets61,684,00058,770,00043,322,647.143,391,712.9Up 5


Year-on-year comparison of Per Share figures
* EPS Dilution Factor = Net Profit change / EPS change
June 302019201820192018Change (%)
Description$A $A $US $US  
EPS Final$A4.7$A5.23.33.8Down 8.7
   EPS Dilution Factor *0.89    


Year-on-year comparison of Performance Ratios
June 3020192018Change (%)
Return on Equity (%)1213.4Down 10.4


Currency Conversion (June 30, 2019): $US1 = $A1.42
Currency Conversion (June 30, 2018): $US1 = $A1.35

Three-year record of growth and performance:
EBITDA averaged $US16.6B or $A23.6B over the last 3 years. Operating Profit averaged $US16.6B or $A23.6B over the last 3 years. Net Profit averaged $US6.4B or $A9.1B over the last 3 years. In the last 3 years EBITDA averaged $A23.6B ($US16.6B) and Net Profit averaged $A9.1B ($US6.4B)
DescriptionAnnual ($A B)Annual ($US B)3-year Avg ($A B)3-year Avg ($US B)3-year CAGR %
EBITDA28.219.823.616.630
Operating Profit28.219.823.616.630
Net Profit8.45.99.16.4(3.3)


Three-year record of ROE, ROA and ROCE
In 2019 Return on Equity 3-years average is 13.6% (All Figures in %)
Description20193-year Avg
Return on Equity1213.6
Return on Assets0.90.9
Return on Capital Employed40.528.2


11.4 Dividend History
Trailing 12 months dividend has improved from AUD4.2 in 2015 to AUD4.31 in 2019.
Date PaidValue (AUD)Type
14 Aug 20192.31Final
13 Feb 20192Interim
Tr 12 Months4.31 
15 Aug 20182.31Final
14 Feb 20182Interim
2017 - 20184.31 
16 Aug 20172.3Final
22 Feb 20171.99Interim
2016 - 20174.29 
17 Aug 20162.22Final
16 Feb 20161.98Interim
2015 - 20164.2 
18 Aug 20152.22Final
17 Feb 20151.98Interim
2014 - 20154.2 


SECTION 12 COMMONWEALTH BANK OF AUSTRALIA BOARD OF DIRECTORS

12.1 Board of Directors and years since appointment
NameDesignationSince Appointment
Matt ComynChief Executive Officer, Managing Director1 Yr, 5 Mos
Catherine LivingstoneChairman, Independent Non-Executive Director3 Yrs, 6 Mos
Alan DochertyChief Financial Officer11 Mos
Brian LongIndependent Non-Executive Director9 Yrs
Anne Templeman-JonesIndependent Non-Executive Director1 Yr, 6 Mos
Andrew MohlIndependent Non-Executive Director11 Yrs, 2 Mos
Wendy StopsIndependent Non-Executive Director4 Yrs, 6 Mos
Sir David HigginsIndependent Non-Executive Director-
Shirish ApteIndependent Non-Executive Director5 Yrs, 3 Mos
Robert WhitfieldIndependent Non-Executive Director2 Yrs
Mary PadburyNon-Executive Independent Director3 Yrs, 3 Mos
Clare McManusCompany Secretary2 Yrs, 7 Mos


12.2 Resignations in the past 4 years
NameDesignationDate of Resignation
Rob JesudasonChief Financial Officer14 May 2018
Ian NarevChief Executive Officer09 April 2018
David J TurnerChairman31 December 2016
John AndersonDirector09 November 2016
David CohenCompany Secretary30 June 2016
Jane HemstritchDirector31 March 2016
Carolyn KayDirector31 March 2015
Margaret TaylorCompany Secretary14 February 2015


12.3 Profiles
Matt Comyn
CEO & Managing Director
Matt Comyn's appointment as Chief Executive Officer of the Commonwealth Bank took effect from 9 April 2018.
Matt has nearly 20 years' experience in banking across business, institutional, retail and wealth management. Since joining Commonwealth Bank Group in 1999 he has held a number of senior leadership roles including Managing Director of CommSec from 2006-2010.
Since 2012 Matt has overseen Retail Banking Services which accounts for half of the Group's profit and leads development of digital products and services for the Group.
Matt holds an Executive MBA from Sydney University, a Master's degree in Commerce majoring in finance and a Bachelor's degree in Aviation, both from the University of New South Wales. He has completed the General Management Program at Harvard Business School and is also a director of Unicef Australia.
Shareholder Value:
Creation of shareholder value in Commonwealth Bank of Australia:
Since appointment as CEO: The present value of AUD1,000 invested on the appointment date of April 09, 2018 at close price of $A67.35 is $A1,328, including a capital gain of $A213 and dividend reinvested of $A115.

Catherine Livingstone
Chairman & Independent Non-Executive Director
Director of the Bank since March 2016. Catherine Livingstone was appointed Chairman of the Bank in January 2017.
She is Chairman of the Board Performance and Renewal Committee and a member of the Audit Committee.
Ms Livingstone is a highly respected company director with extensive business and finance experience across a broad range of industries and organisations. She is also a Chartered Accountant.
Her executive career spanned more than 22 years in which she held general management and finance leadership roles, primarily in the medical devices sector and including six years as the Chief Executive Officer of Cochlear Limited.
Ms Livingstone was the former Chairman of Telstra Corporation Limited and of the CSIRO. She has served on the Boards of Macquarie Group Limited, Goodman Fielder Limited and Rural Press Limited and has contributed to the work of the Innovation and Productivity Council for the New South Wales Government. She was also the former President of the Business Council of Australia. In 2008, Catherine was awarded Officer of the Order of Australia.
Other Directorships and Interests: WorleyParsons Ltd, The George Institute for Global Health, Saluda Medical Pty Ltd, Chancellor of the University of Technology Sydney and Australian Museum Trust (President).
Qualifications: BA (Accounting) (Hons), Fellow of Chartered Accountants Australia and New Zealand, Fellow of Australian Academy of Technological Sciences and Engineering, Fellow of the Australian Institute of Company Directors and Fellow of the Australian Academy of Science.
Ms Livingstone is a resident of New South Wales. Age 61.
Shareholder Value:
Creation of shareholder value in Commonwealth Bank of Australia:
Since appointment as Independent Non-Executive Director: The present value of AUD1,000 invested on the appointment date of March 01, 2016 at close price of $A58.67 is $A1,781, including a capital gain of $A392 and dividend reinvested of $A388.

Alan Docherty
CFO
Mr Docherty has been Acting Chief Financial Officer since May 2018. Prior to this, Mr Docherty was Chief Financial Officer of the Institutional Banking and Markets division and held senior roles in Group Finance, Group Treasury and the B usiness and Private Ba nk.
Shareholder Value:
Creation of shareholder value in Commonwealth Bank of Australia:
Since appointment as CFO: The present value of AUD1,000 invested on the appointment date of October 15, 2018 at close price of $A61.98 is $A1,397, including a capital gain of $A318 and dividend reinvested of $A79.

Wendy Stops
Independent Non-Executive Director
Director of the Bank since March 2015. Wendy Stops is a member of the Remuneration Committee.
Ms Stops was Senior Managing Director, Technology - Asia Pacific for Accenture Limited from 2012 until her retirement in June 2014. In this role she had responsibility for over 11,000 professional personnel spanning all industry groups and technology disciplines across 13 countries in Asia Pacific.
Other most recent senior leadership positions held prior to this time included Global Managing Director, Technology Quality & Risk Management (2009 to 2012), Global Managing Director, Outsourcing Quality & Risk Management (2008 to 2009) and Director of Operations, Asia Pacific (2006 to 2008).
She also served on Accenture's Global Leadership Council from 2008 until her retirement. Ms Stops career at Accenture spanned some 32 years.
Other Directorships and Interests: Board Member of Fitted For Work Ltd, Council Member of the University of Melbourne and Member of Chief Executive Women, serving on the Scholarships and Marketing & Communications Committees.
Qualifications: Bachelor of Applied Science (Information Technology) and Graduate Member of the Australian Institute of Company Directors.
Ms Stops is a resident of Victoria. Age 56.
Shareholder Value:
Creation of shareholder value in Commonwealth Bank of Australia:
Month of appointment: March 2015
In the last 3 years the average annualized return to shareholders was 18.2%. The present value of AUD1,000 (PV1000) invested 3 years ago is now $A1,660, a gain of $A389 and dividend reinvested of $A271.

Andrew Mohl
Independent Non-Executive Director
Andrew has been a Director since July 2008.
He is a member of the Risk Committee and the Remuneration Committee.
Andrew has over 40 years' financial services experience. He was Managing Director and Chief Executive Officer of AMP Limited from October 2002 until December 2007. Andrew's previous roles at AMP included Managing Director, AMP Financial Services and Managing Director and Chief Investment Officer, AMP Asset Management.
Previously, he was the Group Chief Economist, Chief Manager, Retail Banking and Managing Director, ANZ Funds Management at ANZ Banking Group. Andrew commenced his career at the Reserve Bank of Australia where his roles included Senior Economist and Deputy Head of Research.
Other Directorships and Interests: ASIC External Advisory Panel (Member) and CEDA Board of Governors (Member).
Qualifications: BEc (Hons) (Monash). Mr Mohl is a resident of New South Wales. Age 62.
Shareholder Value:
Creation of shareholder value in Commonwealth Bank of Australia:
Month of appointment: July 2008
In the last 10 years the average annualized return to shareholders was 19.7%. The present value of AUD1,000 (PV1000) invested 10 years ago is now $A6,040, a gain of $A1,917 and dividend reinvested of $A3,124.

Sir David Higgins
Independent Non-Executive Director
Director of the Bank since September 2014. Sir David Higgins is the Chairman of the Remuneration Committee and a member of the Risk Committee.
Sir David is the Chairman of High Speed Two (HS2) Ltd, the company responsible for developing and promoting the UK's new high speed rail network. He is a senior advisor to Global Infrastructure Partners (US) and to Lone Star Funds. Prior to that, he was Chief Executive Officer of Network Rail Infrastructure Ltd which is involved in the maintenance and development of railway infrastructure throughout the UK.
From 2006 until 2011, he was Chief Executive Officer of the Olympic Delivery Authority where he oversaw the creation of the London 2012 Olympic Games venues, the Olympic Village and transport projects.
For the three years prior to 2005, he was Chief Executive Officer of English Partnerships, the UK Government's national housing and regeneration agency. In 1985, he joined Lend Lease, and was Managing Director and Chief Executive Officer of Lend Lease from 1995 until 2002.
Other Directorships and Interests: High Speed Two (HS2) Ltd (Chairman).
Qualifications: Bachelor of Engineering (Civil), USyd, and Diploma, Securities Institute of Australia.
Sir David is a resident of London, United Kingdom. Age 62.

Brian Long
Independent Non-Executive Director
Brian has been a Director since September 2010.
He is Chairman of the Audit Committee, a member of the Risk Committee and the Nominations Committee.
He retired as a partner of Ernst & Young on 30 June 2010. Until that time he was the Chairman of both the Ernst & Young Global Advisory Council and the Oceania Area Advisory Council. He was one of the firm's most experienced audit partners with over 30 years' experience in serving as audit signing partner on major Australian public companies including those in the financial services, property, insurance and media sectors.
Other Directorships and Interests: Brambles Limited, Cantarella Bros Pty Ltd, University of New South Wales (Council Member) and Centennial Park and Moore Park Trust (Trustee).
Qualifications: FCA. Mr Long is a resident of New South Wales. Age 71.
Shareholder Value:
Creation of shareholder value in Commonwealth Bank of Australia:
Month of appointment: September 2010
In the last 5 years the average annualized return to shareholders was 12.9%. The present value of AUD1,000 (PV1000) invested 5 years ago is now $A1,835, a gain of $A346 and dividend reinvested of $A488.

Robert Whitfield
Independent Non-Executive Director
Rob has been a Director since September 2017.
He is a member of the Risk Committee and the Nominations Committee.
He has significant banking and finance and senior management experience in the private and public sectors. He is a Director of New South Wales Treasury Corporation and was previously its Chairman. He is a former Secretary of NSW Treasury and NSW Industrial Relations.
Prior to NSW Treasury, Rob had a 30 year career with Westpac Banking Corporation and held various senior management positions, including Chief Executive Officer of the Institutional Bank, Chief Risk Officer, Group Treasurer and Chairman of the Asia Advisory Board. At Westpac, Rob developed a deep knowledge of equity and capital markets and was instrumental in developing Westpac's risk management function and strategies.
Shareholder Value:
Creation of shareholder value in Commonwealth Bank of Australia:
Since appointment as Independent Non-Executive Director: The present value of AUD1,000 invested on the appointment date of September 04, 2017 at close price of $A66.35 is $A1,433, including a capital gain of $A231 and dividend reinvested of $A201.

Anne Templeman-Jones
Independent Non-Executive Director
Anne is an experienced listed company non-executive director, currently serving on the boards of HT&E Limited, GUD Holdings Limited, The Citadel Group Limited and WorleyParsons Limited. She is the former Chairman of the Commonwealth Bank's financial advice companies and is a former director of Cuscal Limited, Pioneer Credit Limited, TAL Superannuation Fund, and HBF's private health and general insurance companies.
Anne had a 30 year executive career developing deep operational, risk, governance and strategy experience. Early in her career she held audit and accounting roles with Price Waterhouse working in Australia and overseas. She gained experience in corporate banking with Bank of Singapore and then Westpac Banking Corporation, and in private banking with Australia and New Zealand Banking Group. Anne returned to Westpac in 2007 and went on to hold various senior management positions in private banking, risk and strategy until 2013. Her depth of experience has enabled her to serve as a Chair or Member of Audit and Risk Committees on current and past Boards.
Shareholder Value:
Creation of shareholder value in Commonwealth Bank of Australia:
Month of appointment: March 2018
In the last 1 years the average annualized return to shareholders was 28.2%. The present value of AUD1,000 (PV1000) invested 1 years ago is now $A1,282, a gain of $A210 and dividend reinvested of $A72.

Shirish Apte
Independent Non-Executive Director
Director of the Bank since June 2014. Shirish Apte is Chairman of the Risk Committee and a member of the Audit Committee.
He was Co-Chairman of Citi Asia Pacific Banking from January 2012 until January 2014. Previously he was Chief Executive Officer of Citi Asia Pacific (2009 to 2011), with responsibility for South Asia, including Australia, New Zealand, India and ASEAN countries.
He has more than 32 years' experience with Citi, including as CEO of Central & Eastern Europe, Middle East & Africa and, before that, as Country Manager and Deputy President of Citibank Handlowy, Poland, where he is now Vice Chairman of the Supervisory Board.
Other Directorships and Interests: IHH Healthcare Bhd, Crompton Greaves Ltd, AIG Asia Pacific Pte Ltd, Clifford Capital Pte Ltd, Pierfront Capital Mezzanine Fund Pte Ltd (Chairman), Parkway Hospitals Singapore, Acibadem Hospital Group, Turkey and Supervisory Board of Citibank Handlowy, Poland.
Qualifications: Chartered Accountant, Institute of Chartered Accountants in England and Wales and Bachelor of Commerce (Calcutta), MBA (London Business School).
Mr Apte is a resident of Singapore. Age 63.
Shareholder Value:
Creation of shareholder value in Commonwealth Bank of Australia:
Since appointment as Independent Non-Executive Director: The present value of AUD1,000 invested on the appointment date of June 10, 2014 at close price of $A60.65 is $A1,901, including a capital gain of $A347 and dividend reinvested of $A555.

Mary Padbury
Non-Executive Independent Director
Director of the Bank since June 2016. Mary Padbury is a member of the Remuneration Committee and the Board Performance and Renewal Committee.
Ms Padbury is a pre-eminent intellectual property lawyer with an Australian and international legal career spanning over 30 years. She is a partner and the Vice Chairman of Ashurst, having been the Chairman of Ashurst Australia for eight years prior to the firm's full merger with Ashurst LLP into an integrated global firm in 2013.
Earlier in her career, Ms Padbury spent a number of years in the United Kingdom with boutique firm, Bristows, and as resident partner of Ashurst Australia. She has undertaken intellectual property work for Australian and multinational corporations in a range of technology areas and has extensive international, legal and governance experience.
Other Directorships and Interests: Ashurst (Vice Chairman), the Macfarlane Burnet Institute for Medical Research and Public Health Ltd, Australasian Gastro-Intestinal Trials Group, Chief Executive Women, Melbourne University Law School Foundation, Professional Standards Board for Patent and Trade Marks Attorneys (Chair) and Victorian Legal Admissions Board.
Qualifications: Bachelor of Laws (Hons) and Bachelor of Arts, University of Melbourne.
Ms Padbury is a resident of Victoria. Age 58.
Shareholder Value:
Creation of shareholder value in Commonwealth Bank of Australia:
Since appointment as Non-Executive Independent Director: The present value of AUD1,000 invested on the appointment date of June 14, 2016 at close price of $A60.41 is $A1,674, including a capital gain of $A352 and dividend reinvested of $A322.

Clare McManus
Company Secretary
Shareholder Value:
Creation of shareholder value in Commonwealth Bank of Australia:
Since appointment as Company Secretary: The present value of AUD1,000 invested on the appointment date of February 13, 2017 at close price of $A70.38 is $A1,388, including a capital gain of $A161 and dividend reinvested of $A227.

SECTION 13 CORPORATE PROFILE

13.1 Stock Identifiers
ISIN: AU000000CBA7
PermID: 4295856152
CUSIP: Q26915100

13.2 Contact details
Websitehttp://www.commbank.com.au/
Physical AddressGround Floor, Tower 1, 201 Sussex Street, SYDNEY, NSW, AUSTRALIA, 2000
Phone(02) 9378 2000
Fax(02) 9118 7192
Emaillouise.amos@cba.com.au


13.3 Industry & Sector
Classification LevelName of Sector
Economic SectorFinancials
Business SectorBanking & Investment Services
Industry GroupBanking Services
IndustryBanks


13.4 Primary Exchange and Other Listings
ExchangeTickerLast PriceAvg. Daily VolumeVolume % of TotalVol Index*
ASXCBA$A81.692,928,91699.80.9
FrankfurtCWWEUR50.871,2160.23.8
Total   100.00 

* 1-day (1 is avg)

13.5 Activities
Commonwealth Bank of Australia (CBA) is Australia's leading providers of integrated financial services, providing retail, business and institutional banking, funds management, superannuation, life insurance, general insurance, broking services and finance company activities. Their operations are conducted primarily in Australia and New Zealand. In addition, they also operate in a number of other countries, including the United Kingdom, the United States, China, Japan, Singapore, Hong Kong, Indonesia and South Africa.

SECTION 14 GLOSSARY

ADVT: Average Daily Volume of shares Traded
Capital Gain/Loss from n Years Ago to n-1 Years Ago: Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)
Debt/Equity: Net Debt/Net Assets %
Dividend Yield: Dividend Per Share/Share Price (%)
Interest Cover: Earnings Before Interest and Tax/Interest (times)
PV1000: Present value of 1000 invested 1 year/'n' years ago
Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index
Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.
Volatility: Highest Price minus Lowest Price/Lowest Price (%)
Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period

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