John Mulcahy UBS Warburg Conference 6 June 2001 commbank.au

1. John MulcahyUBS Warburg Conference  6 June 2001www.commbank.com.au

2. 1 www.commbank.com.au The material that follows is a presentation of general background information about the Bank�s activities current at the date of the presentation, 6 June 2001. 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. Disclaimer

3. 2 www.commbank.com.au Speaker�s Notes Speaker�s notes for this presentation are attached below each slide. To access them, you may need to save the slides in PowerPoint and view/print in �notes view.�

4. 3 www.commbank.com.au Group Performance Progress Report on Integration and Group Strategy Drivers of growth in Financial Services Agenda

5. 4 www.commbank.com.au Group Performance Net Operating Profit The Group recorded a headline net operating profit for the half year ending December 2000 of $1,135 million. On a �cash basis�, that is adjusting for goodwill and appraisal value uplift, the after tax result was $1,109 million, up 7% on the proforma 31 December 1999 result. Operating Income Total Income for the half increased 5% (or $200 million) on the proforma prior comparative period. This reflected good growth in net interest earnings, strong other banking and funds management income, partly offset by poor investment returns in the life insurance business.Net Operating Profit The Group recorded a headline net operating profit for the half year ending December 2000 of $1,135 million. On a �cash basis�, that is adjusting for goodwill and appraisal value uplift, the after tax result was $1,109 million, up 7% on the proforma 31 December 1999 result. Operating Income Total Income for the half increased 5% (or $200 million) on the proforma prior comparative period. This reflected good growth in net interest earnings, strong other banking and funds management income, partly offset by poor investment returns in the life insurance business.

6. 5 www.commbank.com.au Group Performance Unlike the previous slide these charts have been updated to include results as at March 2001. Funds Under Management The Group now manages funds in excess of $117 billion, and this excludes custody assets administered of $70 billion. The growth momentum of the Australian retail and wholesale funds has continued through the merger. The growth in international funds in the six months to 30 June 2000 reflects the acquisition of Stewart Ivory. The decline in the last nine months is related to the sale of the UK life business. Summary The Group�s share price performance reflects continued earnings and dividend growth and the market�s assessment of the Group�s strategic positioning, leading to a progressive re-rating of the stock. As a result, the Group has met its overriding objective of delivering top quartile shareholder returns amongst its peer group. Indeed, our performance in this area is best reflected in the next slide. Unlike the previous slide these charts have been updated to include results as at March 2001. Funds Under Management The Group now manages funds in excess of $117 billion, and this excludes custody assets administered of $70 billion. The growth momentum of the Australian retail and wholesale funds has continued through the merger. The growth in international funds in the six months to 30 June 2000 reflects the acquisition of Stewart Ivory. The decline in the last nine months is related to the sale of the UK life business. Summary The Group�s share price performance reflects continued earnings and dividend growth and the market�s assessment of the Group�s strategic positioning, leading to a progressive re-rating of the stock. As a result, the Group has met its overriding objective of delivering top quartile shareholder returns amongst its peer group. Indeed, our performance in this area is best reflected in the next slide.

7. 6 www.commbank.com.au Index of Top Consistent Performers

8. 7 www.commbank.com.au Australian Market Share The Group has leading shares in all markets. Home Loans - the figures given are for the overall residentially secured portfolio. They include securitisation, HEF and Colonial. On an Owner-Occupied basis only the market share as at March was 23.33%, but this measure does not include home equity and similar facilities for the Group. (Source APRA) Credit Cards - The Commonwealth Bank is Australia�s largest Bank issuer of credit cards with a market share of 29% at 31 December 2000. (Source: Wallis Financial Behavior Monitor) Personal Loans - Market share as at 31 December 2000 shows some seasonality - with market share increasing steadily through the first quarter of the year. Personal Lending market share is exclusive of Cards and IHLs. (Source: APRA) Retail Deposits - Leading market share of 24.61% as at both December and March. (Source: APRA Australian Banking Statistics) Retail Funds Under Management - The Commonwealth Bank Group has continued to increase its market share strongly over the last nine months. The Group�s market share of 19.97% at the end of March is well ahead of the 2nd ranked manager National/ MLC�s market share of 14.32%. (Source : Assirt.) Commonwealth Securities - ComSec processed 8.0% by number of ASX trades as at 31 March 2001. ComSec is: First in terms of number of trades done over the Internet. We estimate the Group is also number one in value of Internet trades. Major internet surveys continue to place the Commonwealth Securities website as one of the top three most visited sites in Australia. The Group has leading shares in all markets. Home Loans - the figures given are for the overall residentially secured portfolio. They include securitisation, HEF and Colonial. On an Owner-Occupied basis only the market share as at March was 23.33%, but this measure does not include home equity and similar facilities for the Group. (Source APRA) Credit Cards - The Commonwealth Bank is Australia�s largest Bank issuer of credit cards with a market share of 29% at 31 December 2000. (Source: Wallis Financial Behavior Monitor) Personal Loans - Market share as at 31 December 2000 shows some seasonality - with market share increasing steadily through the first quarter of the year. Personal Lending market share is exclusive of Cards and IHLs. (Source: APRA) Retail Deposits - Leading market share of 24.61% as at both December and March. (Source: APRA Australian Banking Statistics) Retail Funds Under Management - The Commonwealth Bank Group has continued to increase its market share strongly over the last nine months. The Group�s market share of 19.97% at the end of March is well ahead of the 2nd ranked manager National/ MLC�s market share of 14.32%. (Source : Assirt.) Commonwealth Securities - ComSec processed 8.0% by number of ASX trades as at 31 March 2001. ComSec is: First in terms of number of trades done over the Internet. We estimate the Group is also number one in value of Internet trades. Major internet surveys continue to place the Commonwealth Securities website as one of the top three most visited sites in Australia.

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10. 9 www.commbank.com.au Integration Targets Expect majority of cost synergies to be achieved by end of year two whilst revenue synergies will progressively be realised over the next few years Funding benefits from anticipated improved ratings and capital management Maintain & improve service levels Maintain the momentum of Colonial First State Investments Continue strong relationships with independent distributors This slide outlines what we said we were going to do when we announced the merger in March 2000. Let me outline how we are on target to achieve these goals by reviewing: Outcomes of the integration to date, and What is expected going forward. This slide outlines what we said we were going to do when we announced the merger in March 2000. Let me outline how we are on target to achieve these goals by reviewing: Outcomes of the integration to date, and What is expected going forward.

11. 10 www.commbank.com.au Customer Retention Customer Retention has been a critical target Retention based upon Customer Revenues rather than specific Customer Numbers Retention is on target Early Card Product changes resulted in 97% retention Customer experience has been well managed A prime focus throughout the Integration phase has been on customer retention, with a specific team set up to develop and implement retention strategies. Retention strategies have been based on customer revenue rather than customer number and accordingly the emphasis has been on retaining high value customers. Examples of the key high value customer retention strategies initiated include: Advocacy Programme - this was designed to support Colonial customers by addressing their concerns about products, service, technical difficulties and new products. It was particularly focussed on high value customers. Personal Addvantage - this was a bundled product offering to Colonial high value customers. Customer Contact Programme. Overall, customer retention is on track. Fundamental to our Integration Planning has been customer management - this has been evidenced in the way we have streamlined and simplified our written customer communications and in the way we have managed each customer service interaction. For example throughout this process we have employed Queue Walkers in the branches whose role it has been to manage customers from queue to counter. Proof of our success is of course in the customer feedback we get. In a typical day the Colonial Call Centre will take over 7000 customer calls, of these at present approximately 6%relate to integration. The overwhelming majority of these are requests for product information. A prime focus throughout the Integration phase has been on customer retention, with a specific team set up to develop and implement retention strategies. Retention strategies have been based on customer revenue rather than customer number and accordingly the emphasis has been on retaining high value customers. Examples of the key high value customer retention strategies initiated include: Advocacy Programme - this was designed to support Colonial customers by addressing their concerns about products, service, technical difficulties and new products. It was particularly focussed on high value customers. Personal Addvantage - this was a bundled product offering to Colonial high value customers. Customer Contact Programme. Overall, customer retention is on track. Fundamental to our Integration Planning has been customer management - this has been evidenced in the way we have streamlined and simplified our written customer communications and in the way we have managed each customer service interaction. For example throughout this process we have employed Queue Walkers in the branches whose role it has been to manage customers from queue to counter. Proof of our success is of course in the customer feedback we get. In a typical day the Colonial Call Centre will take over 7000 customer calls, of these at present approximately 6%relate to integration. The overwhelming majority of these are requests for product information.

12. 11 www.commbank.com.au Outcomes to Date Retail banking operations Systems build complete Transaction bridge operational End to End Testing commenced Launceston call centre site build (stage 1) complete Conversion Management System operational Launceston call centre operational Colonial customer retention on track Product Conversion Mailing Lodged Branch amalgamation program complete You will have seen this slide before on expected Integration outcomes, so let me update you on our progress: Overall the integration of the Retail Banking Operation is ahead of schedule. Amalgamation of the eastern seaboard branches commenced ahead of schedule in February 2001. Branch amalgamation was completed on the weekend of 19/20 May, smoothly and ahead of schedule. Last weekend Colonial retail banking products were converted to Commonwealth products and systems. Significant effort was made to ensure that the systems conversion was seamless and required little action on the part of customers. A new Call Centre in Newcastle, creating up to 325 new skilled jobs in the region was announced in May. Meanwhile, the expansion of the Call Centre in Launceston is on track and the fit out of the new Call Centre in Hobart has commenced. These initiatives are part of the Group�s commitment to meeting its public assurances of increased employment in Tasmania and no reduction in regional NSW employee numbers as a result of the merger. The Call Centre in Parramatta is also being expanded. The integration of Head Office, the Institutional Bank and ASB has been completed ahead of schedule. You will have seen this slide before on expected Integration outcomes, so let me update you on our progress: Overall the integration of the Retail Banking Operation is ahead of schedule. Amalgamation of the eastern seaboard branches commenced ahead of schedule in February 2001. Branch amalgamation was completed on the weekend of 19/20 May, smoothly and ahead of schedule. Last weekend Colonial retail banking products were converted to Commonwealth products and systems. Significant effort was made to ensure that the systems conversion was seamless and required little action on the part of customers. A new Call Centre in Newcastle, creating up to 325 new skilled jobs in the region was announced in May. Meanwhile, the expansion of the Call Centre in Launceston is on track and the fit out of the new Call Centre in Hobart has commenced. These initiatives are part of the Group�s commitment to meeting its public assurances of increased employment in Tasmania and no reduction in regional NSW employee numbers as a result of the merger. The Call Centre in Parramatta is also being expanded. The integration of Head Office, the Institutional Bank and ASB has been completed ahead of schedule.

13. 12 www.commbank.com.au Other Outcomes Area manager incentive scheme now incorporates integration metrics 1 million Product conversion mailings sent to customers 700,000 Keycards issued to customers Extensive Verification Programme Campaign Management initiated to review all customer impacts No unplanned impact on agent network An integration of this scale is an enormous logistical exercise, requiring incredibly well developed project management capability to ensure that not only is transition smooth but that the synergies are achieved over time. A focus on systems has been key, not only on product and distribution systems but also on our people systems. All system changes have been supported by rigorous verification processes including, Dress Rehearsals Retained PIN and Password Testing Contingency activities The overriding intent has been to ensure that when Integration is complete Colonial customers will enjoy the same access as Commonwealth Bank customers to Netbank Same or more favorable product features and pricing Equal or lower rates and fees on Credit Cards True Awards Australia Post Access ATM network An integration of this scale is an enormous logistical exercise, requiring incredibly well developed project management capability to ensure that not only is transition smooth but that the synergies are achieved over time. A focus on systems has been key, not only on product and distribution systems but also on our people systems. All system changes have been supported by rigorous verification processes including, Dress Rehearsals Retained PIN and Password Testing Contingency activities The overriding intent has been to ensure that when Integration is complete Colonial customers will enjoy the same access as Commonwealth Bank customers to Netbank Same or more favorable product features and pricing Equal or lower rates and fees on Credit Cards True Awards Australia Post Access ATM network

14. 13 www.commbank.com.au Integration Phase 2 Rationalisation of the Financial Services product set to ensure a streamlined set of products with a consistent brand Life products Managed Funds products Systems Infrastructure to support the rationalised product set Distribution Strategy comprehensive strategy leveraging proprietary and third party distribution channels The majority of the merger synergies flow from the integration of the Retail Banking business. However, further synergies can be realised from integration and more particularly, rationalisation of the Financial Services product set. The Colonial merger brought with it a large number of legacy systems and a mix of both open and closed products. The rationalisation focus will be on achieving a streamlined and simplified set of open products. Planning for this rationalisation is underway and implementation will be managed progressively over the coming 12 months. A little later in the presentation I will speak to our vision and business model for the Financial Services products. Let me just say at this point that the Colonial merger gave us access to a new and important distribution channel - third party distributors. The challenge for us now is to ensure that we develop and leverage this channel in addition to continuing to maximise our strength in the proprietary channels. The majority of the merger synergies flow from the integration of the Retail Banking business. However, further synergies can be realised from integration and more particularly, rationalisation of the Financial Services product set. The Colonial merger brought with it a large number of legacy systems and a mix of both open and closed products. The rationalisation focus will be on achieving a streamlined and simplified set of open products. Planning for this rationalisation is underway and implementation will be managed progressively over the coming 12 months. A little later in the presentation I will speak to our vision and business model for the Financial Services products. Let me just say at this point that the Colonial merger gave us access to a new and important distribution channel - third party distributors. The challenge for us now is to ensure that we develop and leverage this channel in addition to continuing to maximise our strength in the proprietary channels.

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16. 15 www.commbank.com.au Group Strategy GROUP STRATEGY Our strategy deals with an environment of : low inflation; technology shift; competition and margin squeeze; aging population and rate of change; and online services and wealth creation. The Colonial merger was a part of this strategy. Let me now walk you through the progress we have made against each of the major planks of this strategy. GROUP STRATEGY Our strategy deals with an environment of : low inflation; technology shift; competition and margin squeeze; aging population and rate of change; and online services and wealth creation. The Colonial merger was a part of this strategy. Let me now walk you through the progress we have made against each of the major planks of this strategy.

17. 16 www.commbank.com.au Progress against the Strategy Attract More Customers & More Revenue per Customer Approximately 10 million personal customers Growth in customer numbers and/or revenue across all segments Innovation and On-line leadership 1.1m on-line customers as at 31/3/01 Best Team Key skills and people from Colonial retained All staff participate in a form of performance based remuneration Attract More Customers and More Revenue Per Customer In a low inflation environment, it is important to attract more customers and more revenue per customer. We have grown customer numbers and/or revenue per customer in each of the personal, business and corporate segments. As an example, in excess of 250,000 account holders had signed up for EzyBanking as at 31 December 2000. More than 35% of these account holders are new to the Group. Best Value Service Through Innovation and On-line Leadership The Bank now has over one million on-line customers. NetBank The Group�s Internet banking service has seen registered customer numbers grow to well over 770,000 as at the end of April 2001. Growth in transaction numbers has matched customer growth, showing that our customers are actively using these channels. The profile of customers taking up our on-line offering shows that the penetration of our base is strong. HomePath HomePath has experienced worthwhile growth in the number of registered users and loan originations. ComSec ComSec has 615,400 customers. 48% of calls are now handled using automatic voice recognition. . Best Team The areas of focus for our Best Team strategy have been to ensure the Group has the appropriate skill mix (to reflect business mix and technology changes) and to build a performance based culture.Attract More Customers and More Revenue Per Customer In a low inflation environment, it is important to attract more customers and more revenue per customer. We have grown customer numbers and/or revenue per customer in each of the personal, business and corporate segments. As an example, in excess of 250,000 account holders had signed up for EzyBanking as at 31 December 2000. More than 35% of these account holders are new to the Group. Best Value Service Through Innovation and On-line Leadership The Bank now has over one million on-line customers. NetBank The Group�s Internet banking service has seen registered customer numbers grow to well over 770,000 as at the end of April 2001. Growth in transaction numbers has matched customer growth, showing that our customers are actively using these channels. The profile of customers taking up our on-line offering shows that the penetration of our base is strong. HomePath HomePath has experienced worthwhile growth in the number of registered users and loan originations. ComSec ComSec has 615,400 customers. 48% of calls are now handled using automatic voice recognition. . Best Team The areas of focus for our Best Team strategy have been to ensure the Group has the appropriate skill mix (to reflect business mix and technology changes) and to build a performance based culture.

18. 17 www.commbank.com.au Progress against the Strategy Develop Offshore Opportunities ASB wholly owned Entry into UK mortgage market Integration of Stewart Ivory and CFS China - commenced Life Insurance business Global Best Practice Costs Focus on technology driven productivity Leverage the increased scale from Integration Develop Offshore Opportunities The Group�s offshore business goal is to develop revenue streams to supplement growth in our domestic markets over the long term. The New Zealand operations were restructured with the purchase of ASB Bank Community Trust�s 25% in ASB Bank. 100% ownership of ASB Bank has facilitated the integration of Sovereign and of Colonial Life�s operations. In the UK we have launched our flexible mortgage product. The UK operations acquired through the merger included Colonial Life (UK), which was in the process of being sold by Colonial Limited at the time of the merger. Colonial Finance (UK) has now been sold. With the Colonial merger we acquired an Asian footprint. Offshore growth opportunities will continue to be pursued in this area. In light of the more uncertain global environment currently, the Group�s strategic focus offshore will necessarily be on a selective basis. We intend our geographic mix of business in Asia to focus on North Asia. Global Best Practice Costs Over the last 6 months attention on the cost side has been focused on the integration. With a merger of this scale and complexity, other process re-engineering can be undertaken only if it does not jeopardise integration activities. Realising the estimated cost and revenue synergies would, on a pro forma basis, reduce the Group cost to income ratio for the last half by at least 3 percentage points. Additionally we are laying the platform for technology driven productivity gains, where a number of initiatives have moved beyond the concept stage and are in the process of implementation. Telecom NZ: The Group�s agreement with Telecom NZ is now fully operational and we expect savings of approximately 20% per annum over the next five years. eProcurement: Our eProcurement alliance has seen aggregated procurement activity for 3 pilot categories completed. This indicates that cost savings of between 7- 34% should be achievable across major spend areas. Web enablement of the Group: The web enablement of the Group has been progressing rapidly with all head office locations now converted. An Internet protocol network is being installed in 5 branches each night. The target date for all branches to be completed is July 2001. Shared Services: The management and processing of many common functions, such as HR and finance, will be streamlined across the Group. With the increased scale provided from the integration with Colonial, we have a platform from which to realise substantial new productivity improvements. Develop Offshore Opportunities The Group�s offshore business goal is to develop revenue streams to supplement growth in our domestic markets over the long term. The New Zealand operations were restructured with the purchase of ASB Bank Community Trust�s 25% in ASB Bank. 100% ownership of ASB Bank has facilitated the integration of Sovereign and of Colonial Life�s operations. In the UK we have launched our flexible mortgage product. The UK operations acquired through the merger included Colonial Life (UK), which was in the process of being sold by Colonial Limited at the time of the merger. Colonial Finance (UK) has now been sold. With the Colonial merger we acquired an Asian footprint. Offshore growth opportunities will continue to be pursued in this area. In light of the more uncertain global environment currently, the Group�s strategic focus offshore will necessarily be on a selective basis. We intend our geographic mix of business in Asia to focus on North Asia. Global Best Practice Costs Over the last 6 months attention on the cost side has been focused on the integration. With a merger of this scale and complexity, other process re-engineering can be undertaken only if it does not jeopardise integration activities. Realising the estimated cost and revenue synergies would, on a pro forma basis, reduce the Group cost to income ratio for the last half by at least 3 percentage points. Additionally we are laying the platform for technology driven productivity gains, where a number of initiatives have moved beyond the concept stage and are in the process of implementation. Telecom NZ: The Group�s agreement with Telecom NZ is now fully operational and we expect savings of approximately 20% per annum over the next five years. eProcurement: Our eProcurement alliance has seen aggregated procurement activity for 3 pilot categories completed. This indicates that cost savings of between 7- 34% should be achievable across major spend areas. Web enablement of the Group: The web enablement of the Group has been progressing rapidly with all head office locations now converted. An Internet protocol network is being installed in 5 branches each night. The target date for all branches to be completed is July 2001. Shared Services: The management and processing of many common functions, such as HR and finance, will be streamlined across the Group. With the increased scale provided from the integration with Colonial, we have a platform from which to realise substantial new productivity improvements.

19. 18 www.commbank.com.au Sector Growth Now looking ahead at the overall outlook for growth in each of the Group�s key business components: The projections for banking, represented by credit and deposit growth are forecast to slow. Demand for credit should soften in line with a weaker economic environment. The growth rate for deposits is forecast to decline, but to remain at between 3% and 6% for the next few years, necessitating a continued expansion of the Group�s wholesale funding program. Retail funds management should continue to grow at between 12-15% due to the effect of compulsory superannuation and the increasing popularity and accessibility of this market. Our continued funds management business has consistently grown above this rate. Similarly, solid growth in the life insurance market is expected to continue, as a beneficiary of the general increase in the level of wealth assets, the personal superannuation sector, as well as improved and expanded financial cross selling and distribution channels. This analysis indicates the importance of our strategic move to diversify our revenue streams across all aspects of the financial services sector. Following the acquisition of Colonial, we have a leading market position in each of these sectors. It also illustrates why it has been so important to maintain the momentum in our businesses through the integration.Now looking ahead at the overall outlook for growth in each of the Group�s key business components: The projections for banking, represented by credit and deposit growth are forecast to slow. Demand for credit should soften in line with a weaker economic environment. The growth rate for deposits is forecast to decline, but to remain at between 3% and 6% for the next few years, necessitating a continued expansion of the Group�s wholesale funding program. Retail funds management should continue to grow at between 12-15% due to the effect of compulsory superannuation and the increasing popularity and accessibility of this market. Our continued funds management business has consistently grown above this rate. Similarly, solid growth in the life insurance market is expected to continue, as a beneficiary of the general increase in the level of wealth assets, the personal superannuation sector, as well as improved and expanded financial cross selling and distribution channels. This analysis indicates the importance of our strategic move to diversify our revenue streams across all aspects of the financial services sector. Following the acquisition of Colonial, we have a leading market position in each of these sectors. It also illustrates why it has been so important to maintain the momentum in our businesses through the integration.

20. 19 www.commbank.com.au Financial Services Drivers Demographics Aging population Increased life expectancy There are a number of important dynamics driving change in the Financial Services Industry. Whilst each in isolation is an important driver of change, these dynamics in combination are resulting in increasing industry complexity. If we take a look at some of the key drivers... Customers have changed - in their demographics, their behaviours and their expectations. The Australian population is ageing and living longer. The average Australian is used to a higher standard of living than ever before and increasingly understands that they will need to be self reliant in retirement. They are becoming more financially sophisticated and their choice of products and services is now more self determined. They have less loyalty to financial institutions. Increasingly they expect CHOICE, CONVENIENCE, VALUE FOR MONEY; AND INTELLIGENT AND RESPECTFUL CUSTOMER SERVICE. Paradoxically given these demographics, Australians are poor savers. This will present a real challenge to the economy going forward when you think that around 2010 the �baby boomers� will start to move out of the workforce and for the first time we will have more people out of the workforce than in it. Competition in the industry is fierce, fuelled by globalisation, consolidation, new technology and the blurring of industry boundaries. The drive for productivity has driven the need for scale and underpinned much of the investment in new technology. This competition has delivered great benefits to the customer in terms of choice but it has in effect led to a commoditisation of the basic products. Going forward the key differentiator from the customer�s perspective will be value added advice and more fundamentally the quality of customer service.There are a number of important dynamics driving change in the Financial Services Industry. Whilst each in isolation is an important driver of change, these dynamics in combination are resulting in increasing industry complexity. If we take a look at some of the key drivers... Customers have changed - in their demographics, their behaviours and their expectations. The Australian population is ageing and living longer. The average Australian is used to a higher standard of living than ever before and increasingly understands that they will need to be self reliant in retirement. They are becoming more financially sophisticated and their choice of products and services is now more self determined. They have less loyalty to financial institutions. Increasingly they expect CHOICE, CONVENIENCE, VALUE FOR MONEY; AND INTELLIGENT AND RESPECTFUL CUSTOMER SERVICE. Paradoxically given these demographics, Australians are poor savers. This will present a real challenge to the economy going forward when you think that around 2010 the �baby boomers� will start to move out of the workforce and for the first time we will have more people out of the workforce than in it. Competition in the industry is fierce, fuelled by globalisation, consolidation, new technology and the blurring of industry boundaries. The drive for productivity has driven the need for scale and underpinned much of the investment in new technology. This competition has delivered great benefits to the customer in terms of choice but it has in effect led to a commoditisation of the basic products. Going forward the key differentiator from the customer�s perspective will be value added advice and more fundamentally the quality of customer service.

21. 20 www.commbank.com.au Financial Services Vision The Commonwealth Bank Group�s Strategic Vision is to have �the best brands in helping customers manage and build wealth�. As such the Group is committed to providing the full range of financial management products and services. To realise this vision our focus is on: Providing customers with best of breed products. Wherever possible these will be our own, but through selective wholesaling we will ensure that our customers are offered choice and comparison. Ensuring that we tailor our offerings to match need. Our approach to customer segmentation supports our capability to deliver targeted products and propositions. Allowing customers their choice of access by continuing to develop and upgrade alternate delivery channels. Delivering end to end service excellence - increasingly customer service is the key differentiator. The Commonwealth Bank Group�s Strategic Vision is to have �the best brands in helping customers manage and build wealth�. As such the Group is committed to providing the full range of financial management products and services. To realise this vision our focus is on: Providing customers with best of breed products. Wherever possible these will be our own, but through selective wholesaling we will ensure that our customers are offered choice and comparison. Ensuring that we tailor our offerings to match need. Our approach to customer segmentation supports our capability to deliver targeted products and propositions. Allowing customers their choice of access by continuing to develop and upgrade alternate delivery channels. Delivering end to end service excellence - increasingly customer service is the key differentiator.

22. 21 www.commbank.com.au Financial Services Business Model The Colonial acquisition has strengthened our position as a financial services provider, by broadening our product offering and expanding our distribution capability. Going forward our business model will encompass both a product manufacturing and wholesaling capability distribution through our extensive proprietary network and our newly acquired third party network. The fundamental underpinnings haven�t changed but our ability to �make it happen� has been enhanced superior customer service remains our prime focus giving the customer added value through professional advice will be key to our wealth management offering. Our intention is to build our position as the main financial institution for all of our customers. We will do this by understanding, anticipating and responding to their needs. To this end we are building our capability in �event� based marketing and developing our capacity to provide bundled solutions tailored to major life stages. The Colonial acquisition has strengthened our position as a financial services provider, by broadening our product offering and expanding our distribution capability. Going forward our business model will encompass both a product manufacturing and wholesaling capability distribution through our extensive proprietary network and our newly acquired third party network. The fundamental underpinnings haven�t changed but our ability to �make it happen� has been enhanced superior customer service remains our prime focus giving the customer added value through professional advice will be key to our wealth management offering. Our intention is to build our position as the main financial institution for all of our customers. We will do this by understanding, anticipating and responding to their needs. To this end we are building our capability in �event� based marketing and developing our capacity to provide bundled solutions tailored to major life stages.

23. 22 www.commbank.com.au So against this backdrop how are we performing�. The overall retail market has increased to $212.7 bn in the March quarter. This is an increase of 3.9% from $204.8bn in the December 2000 quarter. In line with this overall market growth the Commonwealth Bank Group has continued to grow strongly increasing its market share from 19.6% to 20% in the three month period.So against this backdrop how are we performing�. The overall retail market has increased to $212.7 bn in the March quarter. This is an increase of 3.9% from $204.8bn in the December 2000 quarter. In line with this overall market growth the Commonwealth Bank Group has continued to grow strongly increasing its market share from 19.6% to 20% in the three month period.

24. 23 www.commbank.com.au Total Assets Under Management Market Share as at 31/12/2000 Market Share as at 31/3/2001 $bn share $bn share 1. CBA 90.4 14.8% $94.5 15.1% 2. AMP 72.2 11.8% $72.4 11.6% 3. NAB 43.4 7.3% $47.1 7.5% 4. BT 37.1 6.2% $35.9 5.7% 5. Deutsche 33.3 5.6% $33.3 5.3% 6. State Street 30.3 5.1% $30.3 4.8% Funds under Management Similarly, over the last 3 months the Commonwealth Bank Group�s market share of total assets under management has grown from 14.8% to 15.1%Similarly, over the last 3 months the Commonwealth Bank Group�s market share of total assets under management has grown from 14.8% to 15.1%

25. 24 www.commbank.com.au Areas of Strategic Focus Rationalisation of the Financial Services product set Improvement in customer service Continued focus on productivity improvement To conclude, let me just touch on the major areas of focus for the Group going forward. The Colonial integration is creating significant strategic value, and while integration of the banking business is now all but complete we are turning our attention to the streamlining and simplifying of the financial services product set. Rationalising and supporting these offerings will, as I indicated earlier, result in additional synergies. Over the last 12 months significant effort has been devoted, across the Group, to improving customer service. The Group has developed a systematic approach to measuring the service experience that our customers have at every point of interface. We have developed a comprehensive customer service index, based on �best practice� customer service standards. Performance is tracked monthly. Customer service metrics are now a key component of the Group�s management reporting suite and as such have an impact on the performance assessment of all staff in the organisation. Ensuring consistent and sustained improvement in the service our customers� experience will be our overriding focus. The spotlight on productivity improvement will continue: Integration has provided the Group with the opportunity to realise scale efficiencies, Additional gains are now envisaged through the application of technology and the move to shared services. Thank you. I would now like to open the floor to questions. To conclude, let me just touch on the major areas of focus for the Group going forward. The Colonial integration is creating significant strategic value, and while integration of the banking business is now all but complete we are turning our attention to the streamlining and simplifying of the financial services product set. Rationalising and supporting these offerings will, as I indicated earlier, result in additional synergies. Over the last 12 months significant effort has been devoted, across the Group, to improving customer service. The Group has developed a systematic approach to measuring the service experience that our customers have at every point of interface. We have developed a comprehensive customer service index, based on �best practice� customer service standards. Performance is tracked monthly. Customer service metrics are now a key component of the Group�s management reporting suite and as such have an impact on the performance assessment of all staff in the organisation. Ensuring consistent and sustained improvement in the service our customers� experience will be our overriding focus. The spotlight on productivity improvement will continue: Integration has provided the Group with the opportunity to realise scale efficiencies, Additional gains are now envisaged through the application of technology and the move to shared services. Thank you. I would now like to open the floor to questions.

26. UBS Warburg Conference  6 June 2001www.commbank.com.au