i n s t i t u t i o n a l b a n k i n g

1. New HorizonsManaging GrowthStephen CoulterGeneral Manager Global eCommerceCommonwealth Bank of AustraliaJune 19, 2001 e - c o m m e r c e s o l u t i o n s i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k

2. Disclaimer e - c o m m e r c e s o l u t i o n s The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation, 19 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. i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k

3. Best value service through innovation & on-line leadership Best Team Attract more customers & more revenue per customer Develop offshore opportunities Global best-practice costs Group Strategy WHY? Strategic Vision Financial Goal Business Goals Top Quartile TSR Growth with low inflation To be the best brands in helping customers manage and build wealth Major technology shift Pace of change Limited longer term domestic scope Margin squeeze

4. 100.0 99.3 98.7 97.0 96.8 96.6 95.9 95.6 95.5 95.4 95.3 95.3 95.2 94.9 94.6 94.4 94.3 93.8 92.7 AIG CBA BBVA Fortis Aegon Mellon Skandia Swiss Re Ideal Firm Power Finl. Capital One Mediolanum Providian Finl. Robeco Group Northern Trust Charles Schwab Bank of New York Great West Lifeco American Express Index of Top Consistent Performers e - c o m m e r c e s o l u t i o n s SPI through December 2000. i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k Source : Oliver, Wyman & Company Report Number 3 Volume 11 March 2001

5. Flashback Analysts Presentation – May 27, 1999 e - c o m m e r c e s o l u t i o n s i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k Analyst Presentation, May 27, 1999

6. Flashback Analysts Presentation – May 27, 1999 e - c o m m e r c e s o l u t i o n s i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k Analyst Presentation, May 27, 1999

7. Flashback Analysts Presentation – May 27, 1999 e - c o m m e r c e s o l u t i o n s i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k Analyst Presentation, May 27, 1999

8. Commonwealth Group Home Page e - c o m m e r c e s o l u t i o n s i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k

9. Strategic battles around relationships have been successful…. Measure Jun 99 Jun 00 Jun 01 est NetBank 89,400 325,000 900,000 Quickline 23,600 36,000 50,000 MobileBank - 6,500 17,000 Diammond/eCommCorporate 6,100 7,300 8,000 ASB/BankDirect 18,000 58,000 100,000 Banking 137,100 432,800 1,075,000 ComSec Online 60,000 155,000 225,000 HomePath - 36,000 100,000 Total Online Customers 197,100 623,800 1,400,000 e - c o m m e r c e s o l u t i o n s i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k

10. As have our alliances... • EDS • Telecom NZ • Vodafone • KeyCorp • CommerceNet • Knowledge Lab • Cyberlynx • Australia Post • Woolworths Ezy Banking • ninemsn Market Access e - c o m m e r c e s o l u t i o n s Alliances Technology/Skills Access Risk Sharing • EDS • TelecomNZ • Vodafone • SupplySearch • KeyCorp • Cyberlynx Scale Economics i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k • EDS • Telecom NZ • ninemsn • Cyberlynx

11. Customers are moving transactions and business activities online • Transactions • December 2000 profit announcememt we advised 84% of transactions are now electronic versus 16% over the counter • Over 1,800 online merchants • Over $10 billion in payments through NetBank • 80% of Commsec trades occur online • Total transactions of 34 million online in April 2001 • 4m in 98, 8.5m in 99 and 18.5m in 2000 • Sales • Over 4,000 credit and 10,000 deposit account applications per month online • Inquiries • Over 17 million service enquiries per month via NetBank e - c o m m e r c e s o l u t i o n s i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k

12. Commonwealth Group is applying web technologies to its own business e - c o m m e r c e s o l u t i o n s • Finance and Human Resources with PeopleSoft • IP enablement of all premises • Target of end July for all branches to be cabled • eProcurement with Cyberlynx • Growing intranet applications and information • Over 2 million activities per week • Online Shareholder and Media Centres i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k

13. Intranet Development & Usage is Improving e - c o m m e r c e s o l u t i o n s i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k

14. Shareholder Centre for Investors e - c o m m e r c e s o l u t i o n s i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k

15. Cyberlynx has been successfully implemented e - c o m m e r c e s o l u t i o n s i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k

16. e - c o m m e r c e s o l u t i o n s Looking Forward………. i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k

17. Commonwealth’s Online Vision “ In chosen markets, to be the leading global provider of online information services related to financial services in a profitable manner.” e - c o m m e r c e s o l u t i o n s Requirements • Retain and attract commercially astute, eCommerce aware people • Customer focussed information • Network and device independent • Anything, Anywhere, Anytime • Decision support, Information, Education and Advice • Web enable our enterprise i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k

18. There is no “new economy” e - c o m m e r c e s o l u t i o n s • There is one economy • There are old and new ways of doing business • Old truths still prevail • Customers • Products and Distribution • Returns to owners • Employees – retain and attract • Community – support and earn respect i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k

19. The only sustainable competitive advantages will be customer service and trust e - c o m m e r c e s o l u t i o n s • Products are commoditising • Price differences will narrow • Low costs will be a hygiene factor i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k

20. Customer Performance Model e - c o m m e r c e s o l u t i o n s Customer Retention Customer Acquisition Customer Share of Wallet i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k Customer Value

21. NetBank customers are valuable Product Penetration Balance vs Average Customer Online Customers Average Customer Credit Cards 31%76% 130% Loans 14%46% 178% Deposits 81%98% 100% e - c o m m e r c e s o l u t i o n s • Online Customers also make significant use of the Internet for product origination, enquiries and transactions. • These are the tip of an online-influenced iceberg • Cross Channel referrals and service are vital • Monitor sales rates by origination point • Monitor quality of business by origination point i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k

22. Organisations are now realising the power and value delivered from end-to-end web enablement • Better customer service leading to revenue growth • Lower internal delivery cost • Quicker time-to-market • Lower distribution costs e - c o m m e r c e s o l u t i o n s i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k

23. Trust as a competitive advantage • Identification • Authentication • Security • Privacy • Integrity (Data & Message) • Fairness & Honesty • Experience • Stability e - c o m m e r c e s o l u t i o n s i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k Trust based services will grow……..

24. Account AggregationBring My Information Together at One Web Site with one user name and password. e - c o m m e r c e s o l u t i o n s Site User Name Password Commonwealth Bank abcdef 123456 ComSec ghijk 789012 NAB 6578hkjf87 -82roi eTrade ;lq3i33 oppof8 Westpac offewupoi 3287j Hotmail iuywhvkj 9387 Ozemail klewkk 098j98 Qantas fefewif 997ug4 Wall Street Journal ioewf 237809 GolfWeb iufulvjvj 08070 F2 jiogkjv 8787r0 Financial Times lkjeslkjg 98732070 Individual Inc iohefhff 8747r709 etc etc etc i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k

25. Commonwealth Bank Example e - c o m m e r c e s o l u t i o n s i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k

26. Commonwealth Bank Example e - c o m m e r c e s o l u t i o n s i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k

27. Aggregation Issues • Trust • Banking Terms & Conditions • Customer Consent/Authority Process • Privacy & Security • Fraud Mitigation • Liability • Advice e - c o m m e r c e s o l u t i o n s i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k

28. Summary • eCommerce and eBusiness are significant business tools – not strategies in themselves • Successful businesses need to integrate these tools as part of their overall business strategy • Leading incumbent players have significant advantages and opportunities • Customer base • Brand • Multi channel distribution • Customer Service & Trust will be critical for future success • Commonwealth Group has and will continue to be trusted and successful in applying eCommerce tools to its business strategy, benefiting • Customers • Employees; and • Shareholders e - c o m m e r c e s o l u t i o n s i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k

29. e - c o m m e r c e s o l u t i o n s i n s t i t u t i o n a l b a n k i n g c o m m o n w e a l t h b a n k