Mr David Murray Managing Director

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Mr David MurrayManaging Director
www.commbank.com.au
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Disclaimer

• The material that follows is a presentation of
  general background information about the Banks
  activities current at the date of the
  presentation, 26 October 2000. 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.

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Speakers Notes

• Speakers notes for this presentation are
  attached below each slide.
• To access them, you may need to save the slides
  into PowerPoint.

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Banks with Capitalisation over USD15 billion
USD billion
CBA
NAB
B of A
HSBC
LLOYDS
CHARLES SCHWAB
ABN AMRO
CITIGROUP
ROYAL BANK OF CANADA
UBS AG-REG
BNP PARIBAS
STATE STREET
RBS NATWEST
DEUTSCHE BANK
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Agenda

• Commonwealth Bank Group Positioning
• Technology Service and Efficiency
• Commonwealth Bank Groups Imperatives

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Commonwealth Bank Group Positioning
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Size Compared to Global Banks
Banks with market capitalisation greater than
USD15 billion
250 b
CBA
USD billion
79c
65c
NAB
HSBC
B of A
LLOYDS
CHARLES SCHWAB
ABN AMRO
CITIGROUP
ROYAL BANK OF CANADA
UBS AG-REG
BNP PARIBAS
STATE STREET
RBS NATWEST
DEUTSCHE BANK
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International Comparison
US Banks 2
UK Banks 3
Commonwealth Bank Group 1
Measure



Return on Equity
22.1
19.7
28.5
Return on Assets
1.08
1.64
1.26
Efficiency ratio
54.7
59.8
49.1
1. Year to 30 June 2000 2. Quarter to 30 June
2000 3. Half Year to 30 June 2000
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Global Performance
Financial Institutions ranked by shareholder
performance 1995-99
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Decreasing Margins
750 m Implied Loss of Revenue
1.9bn Implied Loss of Revenue
Commonwealth Bank Group NIM Actual
Commonwealth Bank Group NIM 95 Level
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Technology Service and Efficiency
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Customer Needs
Demographics Value Awareness
Value Awareness Diversification
Work Patterns Technology
Channel Choice
Product Choice
Supplier Choice
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Changing Banking Technology
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Technology Adoption
Years to 50 Million Users
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Where We Are Now
Sept 00
Measure
Jun 99
Oct 00 (est)
Retail Financial Services NetBank 89,400
433,000 471,000 HomePath -
63,000 69,000 MobileBank -
10,000 11,500 ComSec Online 60,000
165,000 185,000 Business Services 149,400
671,000 736,500 Diammond/eCommCorporate 6,100
7,500 8,000 Quickline 23,600
40,000 41,000 Domestic Online Customers 29,700
47,500 49,000 ASB Bank (NZ) 74,000 80,000
865,500
TOTAL ONLINE CUSTOMERS
792,500
179,000
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Internet The Future Force
Customers require

• Immediacy
• Choice
• Depth of Knowledge

The Consequence of this is
Skill building with Technology
Investment in Technology
For Shareholders of Financial Institutions
For Staff
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Commonwealth Bank Groups Imperatives
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Service Adaptation
Millions of Transactions (not including Colonial)
NetBank
Agencies
Telephone Banking
Other Bank Customers
Direct Entries
Electronic
EFTPOS
ATM
Over the Counter
EFTPOS Electronic Funds Transfer, Point Of
Sale
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The Internet

• Internet Protocol Everywhere
• Extend e-Procurement
• Extend Online delivery
• Multi-device delivery

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Our People
Focusing our talent through
Leadership
Alignment
Recognition
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Colonial Integration
The integration of Colonial into the Commonwealth
Bank Group combines complementary businesses, not
like businesses, and brings together the best
people in the financial services sector

• Non-Bank Financial Institution of the Decade
  Australian Banking Finance
• Fund Manager of the year Money Management

• Bank of the Decade Australian Banking Finance
• E-commerce Internet Bank of the Decade
  Australian Banking Finance

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Summary

• We must be globally competitive
• We must match new services to the capability of
  the technology and competition
• We must increase productivity to keep pace