David Murray Securities Institute of Australia 9 May

1 The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation, 9 May 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

2 Speaker’s Notes Speaker’s notes for this presentation are attached below each slide.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.”To access them, you may need to save the slides in PowerPoint and view/print in “notes view.”

3 Changing EnvironmentChanging Environment StrategyStrategy Changing EnvironmentChanging Environment StrategyStrategy Agenda

4 AUD - "FAIR VALUE" Actual Traditional Fair Value Calculation USD THE AUD vs USD (lhs) vs JPY (rhs) CBA (f) Currency 2001 Source : Commonwealth Bank Group illustration 2001

5 Wealth Distribution and Ageing United Kingdom 20% 35% 30% % 10% 30% 20% United States Japan 15% 40% 25% 20% 35% 30% Australia 15% 35% 25% China 5% 35% 15% 25% Source: US Census Bureau Prime Savers and Dissavers - % of total population Prime Savers (40-59 yrs) Dissavers (60+ yrs) This marks the current decade

6 Regulation Growing influence of populismGrowing influence of populism More than 25 inquiries currently underwayMore than 25 inquiries currently underway Declining understanding of industry’s role and operationDeclining understanding of industry’s role and operation Increasing trend to micro regulationIncreasing trend to micro regulation Increased regulation seems inevitable

7 Technology Manual Posting BRANCH NETWORKS ATM / EFTPOS Proof / Sorters Technology THE BANKING REVOLUTION Call Centres Business Intelligence Electronic Banking WebTV Telecentres Internet-based Workflow Advanced Mobile Computing Personalisation Customer Self-Service Customisation Source: A.T. Kearney The Nasdaq Index 1997 On-line Entry More than 20 Emerging Technologies

8 People Skills formation Skills retention Flexibility Leadership

Strategy

10 Group Strategy To be the best brands in helping customers manage and build wealth Strategic Vision Low inflation Technology shift Environment of: Competition and margin squeeze Ageing population and rate of change On line services and wealth creation

11 Accelerated Change CURRENCY REGULATION FURTHER SHIFT IN TECHNOLOGY PEOPLE

12 Accelerated Change Diversify revenue streams Productivity improvement CURRENCY REGULATION Use technology to raise service and productivity FURTHER SHIFT IN TECHNOLOGY Upgrade skill base for productivity change Use technology to multiskill people and raise the service levelPEOPLE

David Murray Securities Institute of Australia 9 May