Investor Presentaiton
Automatic Early Exchange - Capital Trigger Event
Capital Trigger
Event
Exchange following
a Capital Trigger
Event
Maximum Exchange
Number
Common Equity Tier
1 Capital Ratio
A Capital Trigger Event occurs when:
CBA determines; or
APRA notifies CBA in writing that it believes
that either or both the CBA Level 1 or CBA Level 2 Common Equity Tier 1 Capital Ratio is equal to or less than
5.125%
If a Capital Trigger Event occurs, CBA must immediately Exchange such number of PERLS VIII (or a percentage of
the Face Value of each PERLS VIII) as is sufficient to return the relevant Common Equity Tier 1 Capital Ratio to
above 5.125%
The Mandatory Exchange Conditions do not apply and the Terms provide that Exchange occurs automatically
without the need for any further act or step by CBA and that CBA will recognise Holders as having been issued
Ordinary Shares
Calculated according to the formula: (Face Value) / (Relevant Percentage x Issue Date VWAP)
The Relevant Percentage is 20% if Exchange is occurring as a result of a Capital Trigger Event
The Common Equity Tier 1 Capital Ratio is the ratio of CBA's Common Equity Tier 1 Capital to its risk-weighted
assets, where Common Equity Tier 1 Capital is the strongest form of capital held by CBA
As at 31 December 2015, CBA's Level 2 Common Equity Tier 1 Capital Ratio was 10.2%. This equates to a surplus
of approximately A$20.1bn above the Capital Trigger Event level of 5.125%
CBA Level 2 Common Equity Tier 1 Capital levels (under APRA's approach)
12
Common
Equity Tier 1
Capital Ratio
Common
Equity Tier 1
Capital (A$bn)
Capital
Trigger Event
Capital
Trigger Event
(A$bn)
Surplus
above Capital
Surplus
Common
Equity Tier 1
Trigger Event
Capital (A$bn)
31 Dec 2015
30 Jun 2015
10.2%
40.2
5.125%
20.1
5.1%
20.1
9.1%
33.4
5.125%
18.9
4.0%
14.5
31 Dec 2014
30 Jun 2014
9.2%
32.6
5.125%
18.1
4.1%
14.5
9.3%
31.4
5.125%
17.3
4.2%
14.1
Commonwealth Bank of Australia / PERLS VIII Investor Presentation
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