Commonwealth Bank Of Australia · ASX:CBA

Commonwealth Bank Of Australia — FY2012 Earnings Presentation

149 slides from Commonwealth Bank Of Australia's earnings presentation, Aug 15, 2012

1. Slide 1: Results Presentation for the Full Year Ended 30 June 2012

   For personal use only Results Presentation FOR THE FULL YEAR ENDED 30 JUNE 2012 Ian Narev Results Presentation David Craig For the Chief half year Officer Executive ended 31 December Chief2009 Financial Officer 10 February Commonwealth Bank of Australia ACN 123 123 124 2010 15 AUGUST 2012 | COMMONWE

2. Slide 2: Disclaimer

   Notes Disclaimer For personal use only The material that follows is a presentation of general background information about the Group’s activities current at the date of the presentation, 15 August 2012. It is information given in summary form and does not purport to be complete. It is not intended t

3. Slide 3: Agenda

   Agenda For personal use only Ian Narev, CEO – Company Update David Craig, CFO – Financial Overview Ian Narev, CEO – Summary and Outlook Questions and Answers 3

4. Slide 4: Notes

   For personal use only 4 Notes

5. Slide 5: Continuing momentum

   Continuing momentum For personal use only vs Jun 12 Jun 11 Statutory Profit ($m) 7,090 11% Cash NPAT ($m) 7,113 4% ROE – Cash (%) 18.6% (90) bpts Cash Earnings per Share ($) 4.49 2% Dividend per Share ($) 3.34 4% 5

6. Slide 6: Business unit profitability

   Additional information Business unit profitability For personal use only Mvt Tax & non- Cash Cash Mvt $m Operating Operating Impairment Investment controlling NPAT NPAT Cash Performance Performance Expense Experience interests Jun 12 Jun 11 NPAT RBS 4,795 4% (623) - (1,238) 2,934 2,854 3% BPB 1,753

7. Slide 7: Cash NPAT drivers

   Cash NPAT drivers FY12 For personal use only  Expenses 2%  Lending assets 15%  Positive “jaws”  C:I ratio  to 38.1%  LIE 53%  Expenses 1%  Margin 4bpts  CVA turnaround ($215m)  NII mix +3%  Business banking revenue1 5%  FUA net flows $4bn  Expenses 2%  Expenses 1%  Insurance

8. Slide 8: Notes

   For personal use only 8 Notes

9. Slide 9: Our strategy

   Our strategy For personal use only Customer focus Capabilities People Technology Strength Productivity Capability- led More customer needs identified and met in core growth opportunities retail/business franchise “One CommBank” Growth Continued growth in business and institutional banking Discipline

10. Slide 10: Australia's leading technology bank

    Additional information Australia’s leading technology bank For personal use only #1 #1 >40% #1 Online In the youth of all payment itunes banking segment transactions app* #1 460k 1st #1 Social & Kaching Real-time Contactless Facebook downloads banking acceptance points 4.25m >2.0m MFI for #1 active

11. Slide 11: Technology

    Technology Core Banking Leveraging real time For personal use only  Deposits completed  Lending well advanced  12 million+ customers migrated  Real-time banking 24/7  Focus on benefits realisation Product innovation Driving efficiency  Process elimination  Straight-through processing  Immedi

12. Slide 12: Productivity – some examples

    Productivity – some examples Retail branch sales Retail customer service For personal use only Sales and converted referrals per CSS per week1 Transactions per CSR per week2 +4% +13% Jun 11 Jun 12 Jun 11 Jun 12 Local Business Banking call centres Bankwest home loan processing Time spent on customer

13. Slide 13: Productivity led flat costs - continuing investment

    Productivity led flat costs - continuing investment Total operating expenses Investment spend For personal use only $m 3% $m 3% 9,196 8,891 1,286 8,601 (0.2%) 1,179 1,036 FY10 FY11 FY12 4,602 4,594 639 4,483 638 $m 4,408 2nd half 562 4,333 4,268 647 1st half 474 541 1H10 2H10 1H11 2H11 1H12 2H12 FY1

14. Slide 14: Notes

    For personal use only 14 Notes

15. Slide 15: A vibrant customer-focused culture and people

    A vibrant customer-focused culture and people Retail customer satisfaction1 Business customer satisfaction2 For personal use only 7.4 80.0% 7.3 Average rating 75.0% 7.2 7.1 70.0% 7.0 6.9 65.0% CBA CBA Peer average 6.8 Peer average 60.0% 6.7 Jan 06 Jun 09 Jun 12 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar

16. Slide 16: Snapshot – FY12 Results

    Additional information Snapshot – FY12 Results1 For personal use only Financial Operating performance by division Cash earnings ($m) 7,113 4% Retail Banking Services ($m) 4,795 4% ROE (Cash) 18.6% (90) bpts Business and Private Banking ($m) 1,753 3% Cash EPS ($) 4.49 2% Institutional Banking & Marke

17. Slide 17: Strength

    Strength Deposit funding Wholesale funding tenor (years)1 For personal use only % of Total Funding New issuance Portfolio 5.2 62% 3.9 4.0 61% 3.6 3.6 3.7 58% Jun 10 Jun 11 Jun 12 Jun 11 Dec 11 Jun 12 Total provisions2 to credit RWA Liquidity and capital Total provisions Total provisions to CRWA Liqu

18. Slide 18: Notes

    For personal use only 18 Notes

19. Slide 19: Results Presentation – David Craig, CFO

    For personal use only Results Presentation FOR THE FULL YEAR ENDED 30 JUNE 2012 David Craig Chief Financial Officer 15 AUGUST 2012 | COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124

20. Slide 20: Notes

    For personal use only 20 Notes

21. Slide 21: Solid profit growth

    Solid profit growth For personal use only Jun 12 Jun 11 Jun 12 vs $m $m Jun 11 Operating income 20,001 19,538 2% Operating expenses (9,196) (8,891) 3% Operating performance 10,805 10,647 1% Investment experience 149 121 23% Loan impairment expense (1,089) (1,280) (15%) Tax and non-controlling intere

22. Slide 22: Non-cash items

    Additional information For personal use only Non-cash items Jun 12 Jun 11 $m $m Hedging and IFRS volatility  Unrealised accounting gains and losses arising from the application of “AASB 139 Financial 124 (265) Instruments: Recognition and Measurement” Other  Bankwest merger related amortisation (8

23. Slide 23: Statutory profit

    Statutory profit For personal use only Jun 12 Jun 11 $m $m Cash NPAT 7,113 6,835 4% Hedging and IFRS volatility 124 (265) Other non-cash items (147) (176) Statutory NPAT 7,090 6,394 11% 23

24. Slide 24: Group Trading Income

    Additional information Group Trading Income For personal use only Other Banking Income $m 597 717 522 103 56 77 Jun 12 Jun 11 Jun 12 107 144 $m $m vs Jun 11 572 434 470 Commissions 1,997 1,946 3% (127) Sales Trading CVA Lending Fees 997 982 2% FY10 FY11 FY12 Other 411 351 17% Funds & Insurance Incom

25. Slide 25: Operating income

    Operating income For personal use only +2% FY12 vs FY11 Average FUM 2% Funds & Insurance +1% Insurance Income 12% Other Banking (2%) Commissions, Fees, Other $126m 4% Income Trading Income (ex CVA) $35m 6% CVA1 ($230m) lge Net Interest Income +4% Volume $679m 5% Margin ($167m) 1% FY11 FY12 1

26. Slide 26: Increase in retail funding costs since Jun 07

    Additional information Increase in retail funding costs since Jun 07 For personal use only Basis Risk 37% x 1.65% Wholesale Funding 1 63% x 1.86% Deposit Funding Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Increase in Wholesale Funding2 1.30% 1.75% 1.65% Increase in

27. Slide 27: Higher funding costs impacting Group NIM

    Higher funding costs impacting Group NIM Group NIM1 bpts Six month NIM For personal use only bpts 217 212 206 206 (12) 8 (8) Dec 10 Jun 11 Dec 11 Jun 12 (4) (1) (1) 212 206 1H12 Assets & Deposits Wholesale Liquid Other2 2H12 Mix Funding Assets 1 Comparative NIM information has been restated for the

28. Slide 28: Investment spend

    Additional information Investment spend Investment spend profile For personal use only Core 1,286 Banking $m 29% 1,179 Productivity 1,075 1,036 & Growth 46% 1,020 3% Other 502 7% 486 15% Branch 785 378 Refurbishment 410 Risk/Compliance 615 Technology leader 527 784 697 626 693 405 258 FY07 FY08 FY09

29. Slide 29: Continued cost discipline

    Continued cost discipline $m (0.2%) Total Operating For personal use only $m 4,602 4,594 Expenses 4,483 4,408 +3% 1H11 2H11 1H12 2H12 +6% (3%) +6% +3% Includes one-off Includes transition to compliance costs, new CBD office marketing campaigns premises in Sydney and Perth and higher credit card 9,19

30. Slide 30: Loan impairment and arrears

    Additional information PD ratings migration risk-rated portfolio1 Loan impairment expense to gross loans For personal use only 11 bpts Consumer 2 6 Exposures ($bn) 37 1 28 4 23 22 9 18 20 19 Total Upgrades 13 15 15 Downgrades - excluding defaults 14 Total Defaults Net 19 Dec 10 Jun 09 Dec 09 Jun 10

31. Slide 31: Sound credit quality

    Sound credit quality Loan impairment expense to gross loans Consumer arrears For personal use only CBA Group1 5.0% 30+ Days Six months annualised 85 (basis points) 4.0% Personal Loans 3.0% 2.0% Credit Cards 61 Home Loans 1.0% 55 0.0% Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 40 CBA domestic o

32. Slide 32: Provisions to credit RWA

    Additional information Collective provisions to credit RWA Individual provisions to impaired assets For personal use only Collective provisions Collective provisions to CRWA to CRWA (ex Residential Mortgages CRWA) 1.62% 44.6% 1.57% 1 1.45% 37.8% 1.36% 32.1% 1.22% 1.20% 26.8% 1.09% 1.02% Peer 3 CBA P

33. Slide 33: Provisioning

    Provisioning Individual provisions Collective provisions For personal use only $m $m Jun 12 Overlay vs Dec 11 movement $m 3,043 2,984 Economic 2,837 overlay - unchanged Overlay 1,049 970 Amortisation of 2,125 847 BWA fair value (22) 2,097 2,008 provision Runoff of higher 528 473 risk Bankwest (56) 9

34. Slide 34: Retail Banking Services and home loan market share

    Additional information Home loan market share For personal use only Retail Banking Jun 12 Jun 12 vs Services $m Jun 11 28% 25.7% Home loans 2,892 - 26% 24% Consumer finance 1,896 11% 22% 23.8% Retail deposits 2,612 - 18.8% 20% Distribution 352 15% 18% Total banking income 7,752 3% 16% 14.8% 13.6% Op

35. Slide 35: Retail Banking Services

    Retail Banking Services FY12 vs FY11 operating performance RBS margin For personal use only Segment Income bpts FY12 vs FY11 11% 269 256 239 234 233 239 3% 4% 223 230 225 2% 0% (0%) Home Consumer Retail Income Costs Operating Loans Finance Deposits Performance 1H06 1H07 1H08 1H09 1H10 1H11 2H11 1H12

36. Slide 36: Business & Private Banking and Institutional Banking & Markets

    Additional information For personal use only Business & Private Jun 12 Jun 12 vs Institutional Banking & Jun 12 Jun 12 vs Banking $m Jun 11 Markets $m Jun 11 Corporate Financial Services 1,086 10% Institutional Banking 1,973 6% Regional and Agribusiness 489 9% Markets 373 (39%) Local Business Bankin

37. Slide 37: Corporate

    Corporate FY12 operating performance – BPB Business lending growth1 For personal use only Segment Income Bankwest total (2.4%) FY12 vs FY11 3% 19.0% 2% 10% 9% 1% 7.1% 6.4% 5% 4.4% 1% 0.8% (9.5%) (12%) BPB IB&M BWA BWA target CBA System CFS RAB LBB Private Equities Income Costs Operating legacy book

38. Slide 38: Wealth Management

    Additional information For personal use only Wealth Management Jun 12 Jun 12 vs $m Jun 11 CFSGAM 743 (2%) Colonial First State 653 (5%) CommInsure 643 1% Net operating income 2,039 (2%) Operating expenses (1,369) 7% Tax (178) (18%) Underlying profit after tax 492 (15%) Investment experience 77 26% C

39. Slide 39: Wealth Management

    Wealth Management FY12 operating performance Platform* quarterly net flows For personal use only Segment Income $m FY12 vs FY11 7% 1% 1,220 1,079 919 729 (2%) 626 (2%) (16%) (5%) CFSGAM CFS CommInsure Income Costs Operating Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Performance * FirstChoice & Custom Soluti

40. Slide 40: Australian deposits and term maturity profile

    Additional information Australian deposits Term maturity profile1 For personal use only $bn Total Deposits $bn 327 (excl CD’s) Weighted Average Maturity 3.7yrs 282 229 167 193 5 157 6 14 149 111 4 21 7 160 19 125 14 13 14 80 82 8 CBA Peer 3 Peer 2 Peer 1 2013 2014 2015 2016 2017 > 2017 Household Dep

41. Slide 41: Funding & Liquidity

    Funding & Liquidity Funding Liquidity2 For personal use only $bn Source of funds Use of funds $bn 4 (16) 29 62% Deposit 135 (26) Funded Internal 30 58 RMBS (25) Bank, NCD, 33 Bills, RMBS, Regulatory Supra Minimum 4 $62bn Cash, Govt, 6 (6) 44 Semi-Govt IFRS & FX Equity Customer New long Net short Liq

42. Slide 42: Notes

    For personal use only 42 Notes

43. Slide 43: Strong capital position – Basel II

    Strong capital position – Basel II For personal use only Tier 1 capital movement  Tier 1 Capital 10.0% 13.6%  Common Equity 7.8% (0.2%) 9.9% 0.3% 10.0% 11.1%  Expected improvement of 0.30% 7.7% 7.8% from Bankwest Advanced Accreditation  UK FSA Tier 1 Capital equivalent of 13.6% Dec 11 Organic 1

44. Slide 44: Notes

    For personal use only 44 Notes

45. Slide 45: Basel III - New capital policy and position

    Basel III - New capital policy and position  Revised capital policy For personal use only Basel III Int’l harmonised common equity Tier One – Basel III, Rating Agencies, Global Peers 9.8% – Economic capital requirements Target – Stress tested, volatility and Capital +42% (> 9%) Conservation Buffer

46. Slide 46: Notes

    For personal use only 46 Notes

47. Slide 47: Peer Basel III Common Equity

    Peer Basel III Common Equity For personal use only 11.0 10.6 10.3 10.3 9.8 9.8 9.4 9.4 9.3 9.3 9.3 9.0 8.9 8.8 Peer bank average CE ratio 8.5 8.3 8.2 8.1 8.0 (ex. Australian banks): 8.4% 7.9 7.9 7.8 7.8 7.7 7.6 7.5 7.4 7.0 6.9 6.3 2 2 1 2 1 1 1 1 1 Westpac ING Lloyds Santander Nordea Intesa Sanpaolo

48. Slide 48: Notes

    For personal use only 48 Notes

49. Slide 49: Dividends

    Dividends 400 For personal use only 150%  Revised dividend policy Dividend history (cents per share) +4.4% – Recognition shareholders want 350 334 130% 320 payout ratio optimised 300 290 – Maximise use of franking account 256 266 110% balance 250 228 224 90%  Target payout ratio 70-80% 200 80% 78.

50. Slide 50: Notes

    For personal use only 50 Notes

51. Slide 51: A strong and sustainable business model

    A strong and sustainable business model Revenue challenges Managing costs For personal use only bpts Group NIM System Credit $m Total Operating Growth Expenses (0.2%) 217 4,602 4,594 212 4,483 4,408 4.4% 206 3.1% 2.8% Jun 11 Dec 11 Jun 12 2010 2011 2012 1H11 2H11 1H12 2H12 Strong funding & liquidity

52. Slide 52: Notes

    For personal use only 52 Notes

53. Slide 53: Results Presentation – Ian Narev, CEO

    For personal use only Results Presentation FOR THE FULL YEAR ENDED 30 JUNE 2012 Ian Narev Chief Executive Officer 15 AUGUST 2012 | COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124

54. Slide 54: Economic summary

    Economic summary As at June For personal use only 2008 2009 2010 2011 2012 2013 (f) Credit Growth % – Total 11.8 3.3 3.1 2.8 4.4 5-7 Credit Growth % – Housing 9.6 6.6 8.0 6.0 5.1 5-7 Credit Growth % – Business 16.9 0.9 -3.9 -2.2 4.4 5½-7½ Credit Growth % – Other Personal 3.4 -7.0 3.0 1.0 -1.5 4-6 GD

55. Slide 55: Outlook

    Outlook  Operating environment For personal use only – Australian economic fundamentals remain strong – Continued global volatility – Low credit growth – Deposit cost pressures – Evolution to new regulatory regimes  Our approach – Scenario based with conservative settings – Long term focus without

56. Slide 56: Notes

    For personal use only 56 Notes

57. Slide 57: Summary

    Summary  A predictable result For personal use only  Revenue consistent with the environment – Subdued Retail – Relative strength in Commercial – Focus on volume/margin trade-off – Ongoing weakness in markets related businesses  Strong cost discipline  Credit quality a strength  Maintenance of

58. Slide 58: Notes

    For personal use only 58 Notes

59. Slide 59: Supplementary Slides

    For personal use only Results Presentation FOR THE FULL YEAR ENDED 30 JUNE 2012 Supplementary Slides 15 AUGUST 2012 | COMMONWEALTH BANK OF AUSTRALIA | ACN 123 123 124

60. Slide 60: Index

    Index For personal use only Strategy 60 Business Performance 81 Risk and Credit Quality 100 Capital, Funding & Liquidity 116 Economic Indicators 129

61. Slide 61: CBA overview

    CBA overview  Largest Australian Bank by market capitalisation For personal use only  AA- / Aa2 / AA- Credit Ratings (S&P, Moodys, Fitch)  Tier 1 Basel II Capital 10.0%; 13.6% UK FSA  Total Assets of $718bn  14 million customers  51,000 staff  Over 1,100 branches, leading online platforms  #

62. Slide 62: Stakeholders

    Stakeholders Customer Product Holdings1 For personal use only 11.3m Super fund unit holders 4.4m 10.1m ? 3.9m 2.1m 4.0m 1.6m 3.0m 1.1m 1.8m 520k 600k 330k 1.2m 800k 51k Home Loans Credit Cards Retail savings CommInsure Personal Loans Business Funds CommSec Other Shareholders Employees and transactio

63. Slide 63: Strong contributor to Australian economy

    Strong contributor to Australian economy Where does our income go? For personal use only FY12 ($bn) Loan impairment Expenses Cost of lending across Serving 14 million the economy customers 4.3 1.1 Tax expense 2.7 Australia’s 3rd largest tax payer 1 4.9 1.8 Salaries Employing 5.3 Retained for capital

64. Slide 64: Return on Equity

    Return on Equity For personal use only Return on Equity (Cash) 600 21.5% 21.7% 550 20.4% 19.5% 500 18.7% 18.6% 15.8% 450 1.1% 1.0% 400 Return On 350 Assets 300 250 200 150 100 2006 2007 2008 2009 2010 2011 2012 64

65. Slide 65: Bank profitability

    Bank profitability 1 % ROE CBA Ranking For personal use only (Amongst ASX 100 companies) Russia Indonesia China CBA 2 Rank India Australia Market Capitalisation (ASX) 2nd Canada Singapore Dividends Declared 2nd Korea Japan Taxes Paid 3rd UK US Return-on-Equity (ROE) 31st Spain Germany Return-on-Asse

66. Slide 66: Products per customer

    Products per customer For personal use only Average Number of Banking and Finance Products held by 2.90 Customers 18+ (at the Financial Institution) 3 2.83 CBA Average Products Held at Financial Institution CBA Group 2.80 Westpac Group 2.80 Peer 3 ANZ Group 2.70 2.71 Peer 1 NAB Group 2.60 2.61 Peer

67. Slide 67: Products per customer (II)

    Products per customer (II) Average Product Composition between Commonwealth Bank, For personal use only the 3 Major Banking Peers and Bankwest 18+ 3 2.83 2.80 2.71 Insurance 0.34 0.34 2.61 0.26 Personal Lending 0.25 2.36 Home loan 0.21 0.26 0.08 0.23 0.25 0.31 Cards 0.65 0.79 0.71 0.67 Managed Funds

68. Slide 68: Retail customer satisfaction

    Retail customer satisfaction For personal use only Retail main financial institution customer satisfaction1 90% % Satisfied ('Very Satisfied' or 'Fairly Satisfied') 85% 80% 1.4% 75% Diff to No.1 - 12.3% 70% 65% 60% Jan 06 Jun 07 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 CBA Peers 1 Refer note slide at back

69. Slide 69: Business customer satisfaction

    For personal use only Satisfaction - Average 6 7 8 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 2 Refer note slide at back of this presentation for source information Jan-11 Feb-11 CBA Mar-11 Apr-11 May-11 Overall market Jun-11 Jul-11 Peers - Competitive Context Business cus

70. Slide 70: Business customer satisfaction by segment

    Business customer satisfaction by segment 5 Micro Small For personal use only 8.0 7.5 7.5 7.0 7.0 6.5 6.5 CBA Peers CBA Peers Medium Large 8.0 8.5 8.0 7.5 7.5 7.0 7.0 6.5 6.5 CBA Peers CBA Peers 5 Refer note slide at back of this presentation for source information 70

71. Slide 71: A track record in technology delivery

    A track record in technology delivery For personal use only Customer Strategic Advantage Core Revitalised Core Best-in-class front-line customer Banking online platforms interface Modernisation  Single view of customer  NetBank  Legacy system replacement across channels  CommBiz  Real-time bank

72. Slide 72: IT transformation

    IT transformation For personal use only 5 Years Ago Today  26% of spend on Infrastructure  50% of spend on Infrastructure  74% customer-focused content  23 data centres  2 data centres  70 Severity 1 incidents1  7 Severity 1 incidents1  1,200 changes into production  3,000 changes into prod

73. Slide 73: Core Banking Modernisation

    Core Banking Modernisation For personal use only 2008 2009 2010 2011 2012 Underway Retail Business Customer Pre-Launch Deposits & Deposits & Lending Records Transactions Transactions  Proof-of-  Largest migration in  11 million  Over 1 million  Migration of concept Australian banking accounts m

74. Slide 74: Innovations across four touch points

    For personal use only Innovations across four touch points Online Mobile Social POS CommBank CommBank Kaching Contactless NetBank Kaching Facebook Pi CommBiz Property Guide YouTube Everyday Settlement

75. Slide 75: Albert

    “Albert” For personal use only Touch Payments 7” high resolution EMV chip & PIN, contactless, projected capacitive magnetic stripe as well as NFC multi-touch screen couponing and wallet capabilities Secure Connectivity meets the strictest global 3G and Wi-Fi as standard, security standards with the

76. Slide 76: CBA in Asia – strong growth

    CBA in Asia – strong growth For personal use only Customer numbers (IFS) Cash NPAT2 (proprietary)1 Continued Growth in PTBC Growth in HZB profit investment offshore and PTCL offset by QLB in a challenging +54% performance market 292,000 $m 239,000 189,000 IFS Asia4 +49% 231 237 +3% Jun 10 Jun 11 Jun

77. Slide 77: CBA in Asia

    CBA in Asia Country Representation as at June 2012 For personal use only China Bank of Hangzhou (20%) – 117 branches Qilu Bank (20%) – 84 branches County Banking (84%) – 5 Banks in Henan Province Beijing Beijing Representative Office Jinan BoCommLife JV (37.5%) – Henan Province Tokyo operating in 3

78. Slide 78: Sustainability progress

    Sustainability progress In late 2011, the Board endorsed a refreshed sustainability strategic framework to monitor progress over the long For personal use only term across five areas of focus (building on the five foundations of Governance, Customers, People, Community and Environment). Sustainable

79. Slide 79: Sustainability scorecard

    Sustainability scorecard Units 2010 2011 2012 For personal use only Customer satisfaction Roy Morgan MFI Retail Customer Satisfaction1 75.6 75.2 79.0 % (ranked 2nd) (ranked 4th ) (ranked 2nd) DBM Business Financial Services Monitor 2 7.0 7.1 7.3 Avg. score (ranked equal 1st) (ranked equal 2nd) (rank

80. Slide 80: Transaction volumes

    Transaction volumes m Branch m ATMs For personal use only (all transactions*) 130 (deposits & withdrawals) 90 325 325 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 * All cardholder transactions at Australian-located CBA ATMs m EFTPOS m Internet (

81. Slide 81: Index

    Index For personal use only Strategy 60 Business Performance 81 Risk and Credit Quality 100 Capital, Funding & Liquidity 116 Economic Indicators 129

82. Slide 82: RBS – month periods

    RBS – 6 month periods Jun 12 vs For personal use only $m Jun 12 Dec 11 Jun 11 Jun 11 (6 months) Net interest income Home Loans 1,331 1,372 1,441 (8%) Consumer Finance 744 680 660 13% Retail Deposits 1,078 1,137 1,115 (3%) 3,153 3,189 3,216 (2%) Other banking income Home Loans 91 98 92 (1%) Consumer

83. Slide 83: RBS

    RBS For personal use only Cash earnings FY12 vs $m FY11 $m  Balances 3%; Lower Home Loans 2,892 - margins reflecting higher funding costs 3 47 (54) (65) 193 (32) 2,934 Consumer  Strong volume growth 2,854 (12) 15% 11% driven by new products - 2% 12% 1,896 3% Finance and campaigns - 11%  Balances

84. Slide 84: BPB – month periods

    BPB – 6 month periods Jun 12 vs For personal use only $m Jun 12 Dec 11 Jun 11 Jun 11 (6 months) Net interest income Corporate Financial Services 415 404 385 8% Regional & Agribusiness 201 196 189 6% Local Business Banking 308 303 292 5% Private Bank 92 95 97 (5%) Equities and Margin Lending 84 84 88

85. Slide 85: BPB

    BPB FY12 vs $m For personal use only Cash earnings Key segments FY11  Lending balances Corporate Financial 10% and higher $m 1,086 10% demand for risk Services 34 (46) management products. 58 (9)  Higher demand for risk 1,067 Regional & management products 1,030 (13%) 489 9% and prudent lending 1

86. Slide 86: IB&M – month periods

    IB&M – 6 month periods For personal use only $m Jun 12 vs Jun 12 Dec 11 Jun 11 Jun 11 (6 months) Net interest income Institutional Banking 589 583 545 8% Markets 116 121 115 1% 705 704 660 7% Other banking income Institutional Banking 414 387 410 1% Markets 63 73 137 (54%) 477 460 547 (13%) Total ba

87. Slide 87: IB&M

    IB&M For personal use only Cash earnings FY12 $m vs $m FY11 113 (215)  Strong balance 29 1,060 Institutional 171 1,973 6% growth and higher 1,004 Banking leasing income 6% (9%) (19) (23)  Challenging market (Lge) (4%) 3% (53%) Markets 373 (39%) conditions and unfavourable CVA* Total Banking 2,346

88. Slide 88: WM – month periods

    WM – 6 month periods $m Jun 12 vs For personal use only Jun 12 Dec 11 Jun 11 Jun 11 (6 months) Net operating income CFSGAM 364 379 378 (4%) Colonial First State 357 296 347 3% CommInsure 300 343 283 6% Other 1 (1) (1) Large 1,022 1,017 1,007 1% Operating expenses CFSGAM (215) (224) (201) 7% Colonial

89. Slide 89: Wealth Management

    Wealth Management For personal use only Cash earnings FY12 $m vs FY11 $m  Lower FUM (2% to 642 (13) CFSGAM (2%) $146bn) due to decline (36) 743 in global equity 8 1 (89) markets (2%) 16 569 (5%) 1% - 40  Challenging market 26% conditions, ASX 200 CFS 653 (5%) 7% (18%) 11% & changing investor pre

90. Slide 90: New Zealand – month periods

    New Zealand – 6 month periods NZ$m Jun 12 vs For personal use only Jun 12 Dec 11 Jun 11 Jun 11 (6 months ) Net interest income ASB 621 602 569 9% Other (5) (8) (12) 58% Total NII 616 594 557 11% Other banking income ASB 162 161 189 (14%) Other (19) (17) (17) (12%) Total OBI 143 144 172 (17%) Total b

91. Slide 91: New Zealand

    New Zealand For personal use only Cash earnings NZ FY12 vs $m FY11 NZ$m  Benefit from fixed rate loan repricing ASB 1,596 4%  Shift to higher margin variable loans 17 (1) (13) 25 (24) 68 (22)  Favourable claims 4% 638 7% 1% (35%) 13% experience 588 Lge Sovereign 274 7%  Inforce premium growth dr

92. Slide 92: Bankwest – month periods

    Bankwest – 6 month periods For personal use only $m Jun 12 vs Jun 12 Dec 11 Jun 11 Jun 11 (6 months) Net interest income 709 748 741 (4%) Other banking income 104 103 102 2% Total banking income 813 851 843 (4%) Operating expenses (422) (430) (441) (4%) Loan impairment expense (23) (38) (60) (62%) N

93. Slide 93: Bankwest

    Bankwest For personal use only Cash earnings $m 48 (28) FY12 $m vs FY11 524  Above system home loan volume Banking 14% 1,664 1% growth offset by run Income 17 off of higher risk business loans 24 (44%)  Lower personnel (2%) costs Expenses (852) (2%) 463  Lower discretionary spend 1%  Improved cr

94. Slide 94: RBS home lending growth profile

    RBS home lending growth profile RBS home loan balance growth External refinancing For personal use only $bn 5% % of Total Balances 29 (67) 54 (7) 261 270 Jun 11 New Redraw & Repayments / External Jun 12 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun fundings interest Other refinance FY 2007 FY 2008

95. Slide 95: Increase in retail funding costs since Jun

    Increase in retail funding costs* since Jun 07 For personal use only Increase in home + 1.78% loan (SVR) rate Increase in home +1.48% loan (SVR) rate Basis Risk + 1.39% +1.24% Basis Risk Wholesale +1.65% Wholesale Funding Funding +1.30% 37% 40% Deposit Deposit Funding Funding +1.86% +1.45% 63% 60% J

96. Slide 96: Market shares

    Market shares Jun 12 Dec 11 Jun 11 For personal use only CBA BWA Combined CBA + BWA CBA + BWA Home loans 21.7% 4.0% 25.7% 25.9% 25.8% Credit cards1 20.8% 2.7% 23.4% 23.7% 23.0% Personal lending 13.8% 1.0% 14.8% 14.6% 14.8% Household deposits 26.0% 2.9% 28.9% 29.4% 30.0% Retail deposits 22.5% 3.5% 26

97. Slide 97: Dividends per Share

    Dividends per Share 74.2% 75.0% 78.2% 73.9% 73.2% 75.0% For personal use only 89% 84% Payout Ratio (cash) 84% 88% 87% 61% 62% 63% 63% 84% 74% 61% cents 107 149 113 153 113 115 120 170 132 188 137 197 2007 2008 2009 2010 2011 2012 Interim Final 97

98. Slide 98: CFS Global Asset Management

    CFS Global Asset Management For personal use only Globally: $146bn FUM1, 902 people North America Japan $1.4bn FUM $2.6bn FUM 6 People 7 people Asia ex Japan Middle East $16.3bn FUM $6.4bn FUM 107 People UK & Europe Australia & New Zealand $24.7bn FUM $94.9bn FUM 202 People 580 People 35% FUM raised

99. Slide 99: Group NIM movement

    Additional information 1 Group NIM 12 month movement1 Group NIM For personal use only bpts (11) bpts 11 (4) 217 (7) (5) 2 212 206 206 212 209 FY11 Assets & Deposit Wholesale Increased Other2 FY12 Dec 10 Jun 11 Dec 11 Jun 12 Mix funding Funding Liquid Assets 1 Comparative NIM information has been res

100. Slide 100: Index

     Index For personal use only Strategy 60 Business Performance 81 Risk and Credit Quality 100 Capital, Funding & Liquidity 116 Economic Indicators 129

101. Slide 101: Credit quality

     Credit quality Impaired assets to gross loans Impaired assets to gross loans For personal use only bpts1 bpts1 CBA CBA vs Peers 128 124 102 102 102 96 86 88 83 88 83 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 CBA Peer 3 Peer 2 Peer 1 CBA at 30 June 2012 & Peers as at 31 March 2012 1 Bpts calcu

102. Slide 102: RBS home loan book quality very sound

     RBS home loan book quality very sound For personal use only Portfolio average LVR* of 44% 68% of customers paying in advance – average 7 payments Maximum LVR of 95% for low risk customers Lenders Mortgage Insurance (LMI) is required for higher LVR loans Interest rate buffer of 150 bpts built into se

103. Slide 103: Home loan portfolio profile

     Home loan portfolio profile For personal use only Portfolio Jun 12 Quality Jun 12 Total Balances - Spot ($bn) 1 351 Total Balances – Avg YTD ($bn) 1 343 Total Accounts (m) 1.4 Actual Losses YTD ($m) 1,3 107 Fundings ($bn) 2 54 Loss Rate (%)1,2 0.03 Variable Rate (%) 87 LVR – Portfolio Avg (%) 4 44 O

104. Slide 104: Consumer arrears (Group)

     Consumer arrears (Group) Credit cards Personal loans For personal use only 2.0% 2.0% 90+ Days 90+ Days 1.0% 1.0% 0.0% 0.0% Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Bankwest CBA ASB Bankwest CBA ASB Home loans RBS First Home Buyers 90+ Days 1.5

105. Slide 105: Consumer arrears (RBS)

     Consumer arrears (RBS) Home loans Home loans by state For personal use only 2.2% 30+ Days 90+ Days 2.0% 1.8% 1.5% 1.4% 1.0% 1.0% 0.5% 0.6% 0.0% Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 07/08 08/09 09/10 10/11 11/12 NSW/A CT SA/NT QLD VIC/TA

106. Slide 106: RBS home loans – LVR and arrears by vintage

     RBS home loans – LVR and arrears by vintage Home Loan Dynamic LVR1 Profile 30+ Days Home Loan Arrears Rates by Vintage For personal use only 80% 70% 4.0% FY09 60% 3.5% FY08 Proportion of Total Portfolio 3.0% 50% 30+ Arrears Rate FY07 2.5% 40% 2.0% FY06 30% FY10 1.5% 20% 1.0% 10% FY11 0.5% 0% FY12 0.

107. Slide 107: Home loan losses

     Home loan losses Losses to average gross loans For personal use only 2.5% 2.0%  Historical home loan losses have been low  Strong portfolio credit quality a key driver of low 1.5% loss rates  Mortgage losses in FY12 for the Group were $107m on a mortgage portfolio of $343bn average 1.0% (0.03%) 0

108. Slide 108: RBS home loans – enhanced stress test

     RBS home loans – enhanced stress test Observations Key assumptions For personal use only  Potential losses of $1.7bn for the Year 1 Year 2 Year 3 Unemployment 7.0% 10.5% 11.5% uninsured portfolio only over 3 years. Hours under-employed * 11.4% 15.8% 18.4% Cumulative House Prices -15% -32% -32% Cash

109. Slide 109: Regulatory exposure mix

     Regulatory exposure mix For personal use only Regulatory Credit Exposure Mix1 CBA Peer 1 Peer 2 Peer 3 Residential Mortgages 55% 41% 40% 57% Corporate, SME & Spec Lending 28% 34% 39% 31% Bank 7% 7% 12% 3% Sovereign 6% 9% 6% 5% Qualifying Revolving 3% 4% 2% 3% Other Retail 1% 5% 1% 1% Total Advanced2

110. Slide 110: Sector exposure by Industry

     Sector exposure by Industry 1 For personal use only Dec 11 Dec 11 Jun 12 Jun 12 Consumer 52.7% 52.8% Agriculture 2.1% 2.1% Mining 1.0% 1.0% Manufacturing 2.0% 2.1% Energy 1.0% 1.1% Construction 1.0% 0.9% Retail & Wholesale 2.6% 2.4% Transport 1.5% 1.5% Banks 10.9% 11.1% Finance – other 3.7% 3.5% Bus

111. Slide 111: Sector exposures

     Sector exposures Commercial exposures by sector1 Top 20 Commercial Exposures2 ($m) For personal use only BBB+ AAA A+ to $bn to Other Jun 12 to AA- A- A- BBB- A 41.5 38.6 6.3 0.4 86.8 A+ Banks BBB Finance Other 9.7 10.0 3.0 4.7 27.4 A BBB+ Property 0.1 6.1 10.6 33.9 50.7 A- A- Sovereign 56.8 1.3 0.5

112. Slide 112: Group PD Rating Migration

     Group PD Rating Migration Group Ratings Migration (Ex. Banks & Sovereigns) For personal use only 11 6 Exposures ($bn) 1 4 9 Total Upgrades Downgrades - excluding defaults 14 Total Defaults Net 19 Sep 09 Sep 10 Sep 11 Dec 09 Dec 10 Dec 11 Mar 10 Mar 11 Mar 12 Jun 09 Jun 10 Jun 11 Jun 12 Group Ratings

113. Slide 113: Commercial property market

     Commercial property market CBD office supply pipeline1 CBD vacancy rates For personal use only Peak Current Previous 40% % of Total Stock 2nd Half 1st Half Market 1990s FY12 FY12 35% Sydney 22.4% 8.6% 8.5% 30% Perth 31.8% 2.9% 2.5% Melbourne 25.8% 7.4% 5.8% 25% Brisbane 14.3% 8.8% 6.3% 20% Adelaide

114. Slide 114: Risk Weighted Assets 2H12

     Risk Weighted Assets 2H12  Credit risk RWA increased over the half by $3bn to $261bn primarily due to; RWA Movement For personal use only  Growth in Corporate, Residential Mortgage and Standardised portfolio exposures; and re-grading of credit ratings for some Bank counterparts; Tier 1  These inc

115. Slide 115: Interest rate risk

     Capital Assigned to Interest Rate Risk in Interest rate risk Banking Book - APS117 For personal use only 33 bpts 62 bpts 36 bpts 40 bpts 33 bpts $1,363m $781m $922m Optionality Risk $822m $776m Basis Risk Optionality Risk Basis Risk Repricing and Repricing and Yield Curve Risk Yield Curve Risk Embed

116. Slide 116: Index

     Index For personal use only Strategy 60 Business Performance 81 Risk and Credit Quality 100 Capital, Funding & Liquidity 116 Economic Indicators 129

117. Slide 117: Common Equity Tier 1 – Basel III

     Common Equity Tier 1 (“CET1”) – Basel III 10% 9.8% For personal use only 9.6% 8.7% Board target (> 9%) 9% January 2013 8% 7.7% 7.4% 6.9% 7.5% Min incl. Capital 7% 7.3% Conservation Buffer 6.6% (7%) 6% January 2016 5% 5.6% Min(4.5%) 5.0% January 2013 4% 4.5% 3% 2% 1% 0% 1 Jun 07 Jun 08 Jun 09 Jun 10

118. Slide 118: Dividends Per Share

     Dividends Per Share For personal use only 88.0% 89.2% 87.3% 78.2% 84.0% 84.2% 82.4% 74.2% 75.0% 73.9% 75.0% 73.2% 70.5% 73.7% 4.4% 10.3% 27.2% 14.0% 4.0% 14.0% (14.3%) $1.88 $1.97 $1.70 $1.49 $1.53 $1.15 $1.30 $1.20 $1.32 $1.37 $0.94 $1.07 $1.13 $1.13 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Interim DPS F

119. Slide 119: Regulatory expected loss

     Regulatory expected loss Jun 11 Dec 11 Jun 12 For personal use only $m $m $m CBA (ex Bankwest) Regulatory Expected Loss (EL) – before tax 4,324 4,005 3,961 Eligible Provision1 Collective provision 2 1,994 2,050 2,008 Individually assessed provisions 2 1,255 1,202 1,209 Other provisions 21 21 18 Subt

120. Slide 120: UK Comparison

     UK Comparison The following table estimates the impact on CBA Group capital, as at June 2012, of the differences For personal use only between the APRA Basel II guidelines and those of the UK regulator, Financial Services Authority (FSA). Common Actual Total Equity Tier One Capital Capital 1 Capital

121. Slide 121: UK Comparison

     UK Comparison ♦ Key differences between the APRA and FSA method of calculating regulatory capital. For personal use only Impact on Bank’s Item Items impacting published total capital adequacy ratio ratio if FSA rules applied Under APRA rules, the minimum Loss Given Default (LGD) for residential real

122. Slide 122: Funding

     Funding Wholesale funding by product 62% Deposit funded For personal use only 4% 5% Structured MTN 9% 2%1% 1% Customer Deposits Vanilla MTN 12% 4% Commercial Paper ST Wholesale Funding Structured Finance 4% 5% LT Wholesale Funding maturing < 12 months Debt Capital 4% 36% CDs 62% LT Wholesale Funding

123. Slide 123: Funded assets

     Funded assets For personal use only $bn Jun Jun $bn 11 12 30 4 3 4 6 Transactions 79 83 42 Equity Savings 82 89 Long term 124 wholesale Investments 176 197 108 Short term wholesale Other 12 10 Total Customer 349 379 647 653 606 Wholesale 220 232 Funding 379 Customer Deposits Total Funding 569 611 Eq

124. Slide 124: UK and US balance sheet comparison

     UK and US balance sheet comparison For personal use only United Kingdom USA Assets Liab + Equity Assets Liab + Equity Cash 9% 7% Capital Cash 8% 10% Capital Home Loans 13% Home Loans 19% 50% Deposits 52% Deposits Other Lending 38% Other Lending 43% 10% Long Term Other Fair Long Term 16% 11% Value As

125. Slide 125: Australian Banks – safe assets, secure funding

     Australian Banks – safe assets, secure funding For personal use only Commonwealth Bank Balance sheet comparisons Assets – CBA’s assets are safer because: Assets Liab + Equity  52% of balance sheet is home loans, which are stable/long Cash 4% term 6% Capital  Trading securities and other fair value

126. Slide 126: Replicating portfolio

     Replicating portfolio Actual and Forecast Scenario For personal use only Forecast* Replicating Portfolio Yield Official Cash Rate 2001 Current 2013 * Indicative forecast of the replicating portfolio in relation to hypothetical movements in the official cash rate 126

127. Slide 127: Regulatory change

     Regulatory change 2012 2013 2014 2015 2016 2017 2018 For personal use only ♦ Capital - APRA draft and LCR 2012 - 2015 observation LCR – effective Timetable final standards ♦ LCR, NSFR - draft and final standards (timing tbc) NSFR - APRA observation and review NSFR - Effective ♦ BCBS LCR review 1 ♦ “

128. Slide 128: Funding overview

     Funding overview Overview For personal use only  Well diversified  Over 62% deposit funded  Weighted average maturity of 3.7 years  Responsible and responsive issuer with commitment to ongoing direct investor engagement  Ratings across agencies and markets declining – CBA remains in upper echel

129. Slide 129: Index

     Index For personal use only Strategy 60 Business Performance 81 Risk and Credit Quality 100 Capital, Funding & Liquidity 116 Economic Indicators 129

130. Slide 130: Policy protection available

     Policy protection available For personal use only Interest rates can be cut Fiscal policy can be used OFFICIAL INTEREST RATES GENERAL GOVERNMENT NET DEBT % % % (% of GDP) % 100 100 8 8 Advanced G-20 75 75 6 6 UK Australia Canada 50 50 Emerging G-20 4 4 25 25 NZ Australia US 2 2 0 0 Euro Japan Source

131. Slide 131: Financial system in good shape

     Financial system in good shape For personal use only Funding is longer and more diversified 131

132. Slide 132: The consumer

     The consumer Job prospects are a key concern Consumers are spending But balance sheet repair is a priority For personal use only GREATEST FEAR CONSUMER SPENDING SAVING RATIO % % % % (% of respondents) (annual % change) 30 30 % 20 20 10 % 10 Losing Unable to pay Total job mortgage/rent household Inab

133. Slide 133: Labour market

     Labour market For personal use only The labour market is holding up Some indicators suggest stronger jobs growth LABOUR MARKET TAXES & JOBS % '000 % % 6.0 90 5 16 Unemployment rate (lhs) 5.5 60 3 8 5.0 30 4.5 0 1 0 Employment Gross PAYG 4.0 growth -30 revenue (3mnth average, rhs) (smoothed %pa) (rhs

134. Slide 134: Business

     Business The mining construction boom will support But structural change weighing on the non- For personal use only economic growth mining economy 134

135. Slide 135: Credit

     Credit For personal use only Modest credit growth set to continue  Economic growth prospects are % CREDIT & SPENDING (annual % change) % reasonably favourable 30 30 CBA  But downside risks persist (f) Credit  Household and business confidence 20 20 remains subdued  Global uncertainty and fear dr

136. Slide 136: Housing market - summary

     Housing market - summary For personal use only An orderly adjustment has occurred in the Australian housing market post-GFC This adjustment is characterised by slower credit growth, increased savings and lower servicing ratios Australian house prices have undergone a modest correction as part of the

137. Slide 137: An orderly adjustment in the Australian housing market

     An orderly adjustment has occurred in the Australian housing market, as households repair their balance sheets Housing credit growth Savings rate Debt servicing ratio For personal use only % RBA Credit Aggregates Household Savings Ratio Debt Servicing Ratio (annual % change) (% of household disposab

138. Slide 138: Australian house prices have undergone a modest correction

     Australian house prices have undergone a modest correction as part of the adjustment process House prices House price growth For personal use only $'000 MEDIAN HOUSE PRICES $'000 3 Years 12 mths (Stratified median) 700 700 to to Jun 12 Sydney Mvt (%) houses Jun 12 Jun 12 Qtr 600 600 Perth houses Syd

139. Slide 139: Demand-supply balance mitigates risk of house price decline

     The demand-supply balance significantly mitigates the risk of a material decline in Australian house prices Population growth Housing demand & supply Projected population change For personal use only ‘000 2009-2050 200 POPULATION DRIVERS Demand '000 '000 190 60% 450 450180 170 40% 40% 160 30% Net 30

140. Slide 140: Low vacancy rates, rent growth and sentiment support house prices

     Low vacancy rates, growth in rents, affordability trends and positive sentiment are all supportive of house prices Housing indicators Affordability & prices For personal use only % % 60 Rents 9 Housing (%pa, rhs) 50 sentiment 8 (lhs) 40 7 30 6 20 5 10 4 0 3 -10 2 -20 Vacancy 1 rate* (rhs) -30 0 Sep-

141. Slide 141: Strong economic fundamentals underpin Australian house prices

     Strong economic fundamentals underpin Australian house prices GDP growth Stronger labour market For personal use only % Unemployment 110 12 108 106 Australia 10 US 104 8 Euro Zone NZ UK 102 US 100 6 Australia 98 UK Europe 4 96 Japan 94 Japan 2 92 90 0 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Jan-05 Jan-07

142. Slide 142: House prices influenced by high urbanisation rate

     Australian house prices are influenced by a high urbanisation rate Urban population Density & house prices Dwelling prices For personal use only URBAN POPULATION Ratio to Household Income (% in two largest cities) 6 New Zealand Australia Capital 5 France cities Belgium Canada 4 Spain Netherlands 3 I

143. Slide 143: House price to income ratios in line with global norms

     The house price to income ratios in Australia is in line with global norms Dwelling price to income ratios For personal use only 143

144. Slide 144: Factors characterising a house price bubble not evident

     Factors that typically characterise a house price bubble are not evident in Australia Housing “Bubble” – For personal use only Current position in Australia typical characteristics Unsustainable asset prices  Prices supported by the excess of demand over supply  Australia’s population continues to

145. Slide 145: Differences between Australian and US housing markets

     Significant differences between Australian and US housing markets minimise risk of a US style house price collapse CBA / Aust US Australian mortgage product For personal use only  Principal and interest amortising 25/30 Unemployment ~5% ~8% year loan  Variable interest rate set at bank’s discretio

146. Slide 146: CBA home loan loss rates have been low

     Historically, CBA home loan loss rates have been low, notwithstanding cyclical house price movements House prices movements vs Home loans losses (CBA)1 For personal use only % 0.30% 30 0.20% 20 0.10% 10 0.00% 0 -0.10% -10 -0.20% -20 -0.30% -30 Mar 97 Mar 04 Mar 11Mar 12 Home loan losses (LHS) House

147. Slide 147: Home loan losses under a high stress scenario

     Even under a high stress scenario, CBA home loan losses would be modest/manageable – ($1.7bn over 3 years, or ~0.5% of book) For personal use only High stress loss = $1.7bn over 3 yrs Factors Mitigating Against Potential (~0.5% of book) Losses Interest Unemployment Property  Full recourse to borrow

148. Slide 148: Notes – sources for results

     Notes For personal use only Sources for results outlined in this pack 1 Roy Morgan Research Main Financial Institution (MFI) Retail Customer Satisfaction. Australian population 14+, % “Very Satisfied” or “Fairly Satisfied” with relationship with that MFI. 6-month rolling average. Note the institutio

149. Slide 149: Results Presentation – closing slide

     For personal use only Results Presentation FOR THE FULL YEAR ENDED 30 JUNE 2012 Ian Narev Results Presentation David Craig For the Chief half year Officer Executive ended 31 December Chief2009 Financial Officer 10 February Commonwealth Bank of Australia ACN 123 123 124 2010 15 AUGUST 2012 | COMMONWE

Commonwealth Bank of Australia — FY2012 Earnings Presentation on 6ix