UBS Warburg 2003 Global Financial Services Conference Michael Cameron Chief Financial Officer April

2 The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation, 29 April 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 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 Agenda Current Environment Focus Platforms for Growth

Current Environment

6 Australia’s Economy has been relatively resilient given global conditions Source: Commonwealth Research ECONOMIC GROWTH: 2002 China South Korea Thailand New Zealand Australia Indonesia Taiwan Canada United States Singapore Hong Kong Spain Sweden United Kingdom Norway France Belgium Italy Germany Netherlands Switzerland Japan

7 Domestic housing demand has been strong Source: Commonwealth Research, Melbourne Institute -3%-2%-1%0%1% Income (+1%) Mortgage rate (up 1%) Unemployment rate (up 1%) Investment returns (+1%) House Price Sensitivity (% deviation from baseline) Income ($'000pa) < >100 % Debt Repayment Levels: % household income (Melbourne Institute) Jul-99Jul-00Jul-01Jul-02 Quarterly Monthly $'000 Established House Prices (national) Jul-03 Wisest Place for New Savings? (Melbourne Institute) Sep-79Sep-85Sep-91Sep-97 Sep-02

8 Business confidence has been subdued, but is expected to gain momentum Source: Commonwealth Research

9 While equity markets have showed some resilience, returns and fund flows have declined $m Total Net Retail Fund Flows (for quarter ended) Source: Plan for Life (ex Cash) -74% Equity Markets Source: Bloomberg Index (Base 100) Jul-02 Aug-02 Oct-02 Dec-02Feb % -14% All Ordinaries MSCI World $m

10 Commonwealth Bank’s 1st Half result reflects modest growth in an uncertain environment Net Profit After Tax (cash basis)* Comprising: Banking Funds Management Life Insurance Dec 2002 $1,208m $1,079m $135m ($6m) Dec 2001 $1,192m % Change 1% * ie excluding appraisal value uplift/reduction and goodwill amortisation. Unless otherwise stated the numbers in this presentation refer to the net profit after tax (cash basis) and all comparisons are to the prior comparative period. $975m $182m $35m 11% (26%) (117%)

11 4% 5% 6% 7% 8% 9% 10% 11% Dec 2001Jun 2002Dec 2002 CBAANZNABWBC The Bank’s credit quality and capital adequacy strengthened during the half Tier 1 CapitalTier 2 CapitalTarget Range 9.31% 9.80% 9.81% 6.75%6.78% 7.06% Capital Adequacy Ratios Bad Debt Expense to RWA* General Provision to RWA % RWA *RWA: risk weighted assets

12 The Bank’s dividend payout ratio remains high relative to peers Dividends per Share Dividend Payout Ratio Dec cps 72.7% 95cps 12.39% 52.6% Dec cps 72.6% 94cps 12.43% 54.2% Change 1c - 1c (4bps) (3%) Earnings per Share Return on Equity Banking Cost to Income Ratio (underlying basis) …and EPS has improved For more detail, visit:

13 Meeting the challenges in the current environment and the longer term Immediate focus: Productivity Implementation of strategic initiatives Longer-term focus: key competitive strengths Scale Brand Risk Profile Products and Businesses Distribution Innovation People

Focus

15 Immediate focus is on improving efficiency...to achieve: A better service experience for customers, through greatly improved turnaround times Elimination of duplication and inefficiencies Annualised benefits of $159m, following an incremental net cost of ~$143m in FY2003 Four strategic initiatives... Remove back-office functions from branches Streamline Business Banking processes Rationalise investment products & systems Organisational design

16 % Customer Share: All Relationships Source: Research International, December 2002 The Bank is a leading player in Australia with the highest number of relationships... 1st in Home Lending 1st in Credit Cards 1st in Retail Deposits 1st in Online Broking Largest customer base Most points of access Best known bank brand

17...and achieve consistently high ratings from retail customers Source: Research International Brand Monitor Average across all brand attributes for CBA vs average of ANZ, NAB and Westpac % In touch with its customers Is leading the way Is doing new and different things Has knowledgable and competent staff Has friendly and reliable staff

18 Australia’s Most Accessible Bank* Branches1,000 Premium banking centres13 Business banking centres70 ATMs4,000 EFTPOS terminals126,000 Direct Banking calls per annum146m Registered NetBank users2m Personal lenders700 Financial planners700 Mobile bankers200 3rd party advisers, brokers and agents10,000 Postal and private agencies4,000 EzyBanking store locations700 * Distribution channel numbers have been rounded

Platforms for Growth: Banking

20 Several key trends are shaping the future of the home loan market Economic Environment Interest rates at historical lows - but affordability has weakened Slowing housing credit demand likely Historically low credit losses Property sector attractive compared to other asset classes Customer Need Entrenched fast repayment psyche First home buying activity brought forward by FHOG* - weaker demand likely Defined service demands Wealth creation mindset has fuelled investment loan growth but expect to be tempered by economic uncertainty Distribution Mortgage brokers well established - but facing first slowdown in demand Continued market consolidation likely Linkages likely to intensify to financial planners - increased competition Technology Broker groups also investing in front end & CRM** solutions Centralised back end models utilising straight through processing Intensification in use of CRM type solutions - owned and rented Increased use of IVR***/web for customer servicing requests and marketing Competitive Environment Mortgage market a high demand sector Low credit losses - increasing willingness by some market participants to take on risk Slowing housing credit demand - propensity for increased poaching/ refinancing offers, including increasing commissions to third parties ***IVR: interactive voice recognition **CRM: customer relationship management*FHOG: First Home Owner’s Grant

21 Share of wallet improving - cross-sell, retention and service initiatives are in train Basis: If a customer has a relationship (as a main Financial Institution or otherwise) with a Financial Institution, what proportion of their holdings do they keep with that Financial Institution? Share of Wallet by Financial Institution Source: Research International, December 2002

22 Savings needs Transacting needs Credit Card needs Unsecured Credit needs Investing needs Secured Credit needs Complex needs Youth Customers: Addressing the change and growth in banking needs Lower involvement products Higher value products Age of Customer Competitor Activity Banking needs change and grow as customers age and pass through different life stages

23 Premium Customers: Offering a Differentiated Business Model Banking Platform Borrowing Services Lending Services Transactional Banking Broking Platform Advisory Services Direct Investment Indirect Investment Debt Products Equity Products Commercial Adviser Personal Adviser Investment Adviser Financial Adviser Risk/Insurance Adviser Client Primary Relationship Manager Secondary Relationship Manager & specialised advice

24 Republic: Providing a comprehensive view of premium customers Please note information on these data screens has been scrambled for privacy purposes

25 Republic: Providing a comprehensive view of premium customers Please note information on these data screens has been scrambled for privacy purposes

26 Transforming Business and Corporate Banking Transformation Agenda Structured In Three Phases Completed Status 1.Define and revitalise Business/Corporate Banking 2.Re-organise for success 3.Capture industry leadership Underway Parallel implementation with Phase Initiatives Segment clients and create differentiated business models to improve client service experience Introduce streamlined credit processes Lift performance of bottom quartile centres Better align distribution footprint to client needs Realise segment specific share targets Build client service and sales skills

27 No change to credit standards Owner Occupied Investment $bn Dec 01Jun 02Dec 02 Composition of Housing Portfolio Consumer Portfolio *CBA Equivalent Ratings 60% invest. grade Commercial Portfolio Bad debt charge as annualised % of unsecured lending balances Bad debt charge as annualised % of secured lending balances Dec 01Jun 02Dec

Platforms for Growth: Funds Management

29 The Bank maintains its leadership position in Australian funds under management Group Funds Under Management by Country of Source December 2002 Australian Funds Under Management** by Asset Class December 2002 Total Funds Under Management: $95bn Consisting of: retail $52bn wholesale $38bn retail CMT* $5bn Australian Funds Under Management:$72bn Consisting of: retail $39bn wholesale $28bn retail CMT* $5bn *CMT: cash management trust **Total funds managed in Australia, excluding Colonial First State Property

30 Several key trends are shaping the future of the Australian Funds Management industry Strong inherent growth in the funds management market expected, particularly retail Growth of mastertrusts Industry consolidation Institutionalisation of distribution Industry commoditisation Projected Size of Various Product Segments Source: Rice Kachor projections March 2002, include 5% post fee returns, except for DIY (7%)

31 FirstChoice has been further enhanced... and other initiatives are underway $m Realise integration benefits, including further rationalisation of legacy systems Offer increased style diversification Leverage internal distribution opportunities Leverage scale to reduce costs Grow alternate asset classes Increase reputation as manager of international shares FirstChoiceOther Strategic Initiatives

Platforms for Growth: Life Insurance

33 The Bank ranks second in the Australian life insurance market Source: Tillinghast, December 2002 By Channel Market Size* and Growth Prospects: By Product $m projected projected Commonwealth Bank Premiums*: By Product By Channel CBA total annual inforce premiums = $548m * Refers to annual inforce premiums $3.4bn $4.3bn $m

34 Focus is on distribution, service and risk pricing Increase internal distribution through:  Personal Insurance Consultants  Business Investment Managers Repricing of premiums Upskilling of call centre staff Product rationalisation Systems migration

35 Key Points Resilient Australian economy Strong first half growth in our banking business Strong franchise: scale, brand, distribution, innovation, people Cross sell, retention and service initiatives in train in retail and business bank Maintenance of high credit standards Leadership in Funds Management to continue Insurance business well positioned

Michael Cameron Chief Financial Officer April UBS Warburg 2003 Global Financial Services Conference

37 9% growth in lending assets Lending Assets**: ** Excludes securitised housing loan balances $5.9b (Dec 02), $7.0b (Jun 02), $5.7b (Dec 01). HousingPersonalBusiness & Corporate $ billion Bank Acceptances

38 A number of one offs impacted funds under management $bn (1) (5) (2) 2(4) (1) Underlying reduction of $8bn One off reduction of net $3bn

39 Shareholder Funds in Life Insurance Companies: investment reflect underlying nature of the business Income $0.5 billion $2.1 billion 51% 49% Growth $2.6 billion 74% 26% 54%46% *Risk includes traditional, investment account, annuities, personal risk and group risk.

40 Continuing sound asset quality

41 * Includes Colonial $millions The Bank remains well provisioned

42 Arrears in consumer book remain at low levels Loans Accruing past 90 days or more 30/06/01 31/12/01 30/06/02 31/12/02 $m $m $m $m Housing Loans Other Loans Total Housing loans arrears rate 30/06/01 31/12/01 30/06/02 31/12/02 Housing Loans accruing but past 90 days or more $m Housing loan balances $m 73,511 79,745 85,83993,545 Arrears rate % 0.30% 0.21% 0.21%0.15%

43 Commercial Portfolio: large exposures are mostly investment grade Dec 2000 Dec 2001 Dec 2002 Top 20 Exposures as a % of Total Committed Exposure Committed Exposure ($m) 31 December 2002 Top 20 Exposures to Corporates (Committed) S&P Rating or Equivalent BBB A+ BBB A AAA BBB A- AA- A- A+ A- BBB- BBB BBB- A+

44 Credit Exposure - Energy Sector 80% 7% 3% 10% Australia (73% investment grade) Asia (94% investment grade) North America (58% investment grade) Other (97% investment grade) $3,411m , $m

45 Credit Exposure - Telcos Sector 72% 13% 4% 11% Australia (72% investment grade) Asia (100% investment grade) North America (100% investment grade) Other (64% investment grade) $1,509m $m

46 Credit Exposure - Technology Sector 86% 9% 4% $1,114m $m Australia (68% investment grade) North America (100% investment grade) Other (99% investment grade)

47 Credit Exposure - Agriculture Sector 74% 26% $7,673m 1,540 5,569 $m Australia (10% investment grade) New Zealand (3% investment grade)