Disclaimer

1. Customer Service DivisionSales & Service in the post-integration networkGail Kelly, Mukesh Parekh & Neil Schafer 18 July 2001

2. Disclaimer The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation, 18 July 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.

3. Agenda 1. Overview - Goals & Strategy 2. Network Integration 3. Business Outcomes

4. Vision & Goals CSD Goals Group Vision 1. Build a team of people who are willing, able and empowered 2. Differentiate the Group on service 3. Maximise sales effectiveness across all channels and segments 4. Transform to a customer focussed distribution model 5. Reduce costs through maximum efficiency and productivity + 6. Complete Integration on time/within budget To be the best brands in helping customers manage and build wealth

5. Sales & Service 2000+ - Platform for Change • New sales leadership & reward system • Target group - front-line leaders & managers • Key Principles; • - Ownership • - Accountability • - Outcomes • - Reward • Key Components; • - Increased authority • - Focussed performance measurement • - Flexible workplace arrangements • - Variable remuneration • - Upskilling & coaching - business acumen & leadership skills

6. Agenda 1. Overview - Goals & Strategy 2. Network Integration 3. Business Outcomes

7. Network Integration - Key Milestones January 2001 May 2001 October 2000 June 2001 New Network Structure Transaction Bridge Channel Integration Systems Conversion Integration of network structures and people Allowing Colonial Customers to transact at CBA Branch, ATM & Call Centre integration Conversion of Colonial accounts to CBA systems

8. Highlights - Overall Program • Transaction bridge designed and built for testing in 90 days • 279 branch amalgamations and 89 Colonial branch sites • rebadged over 7 weekends • 500 ATM movements • 5,100 pieces of equipment deployed in network • 1,950 staff completed Orientation workshops • 39,600 hours of call centre staff training • 1 million Product conversion mailing packs sent to customers • 1.3 million accounts converted

9. New Network Structure - Key Principles • Rapid & smooth transition • Leverage best elements of CBA & Colonial • Embed “Sales & Service 2000+” • Retain quality people • Minimise customer disruption • Streamlined & customer-focussed

10. Key Changes • Number of Areas reduced from 125 to 70 • Of 70 Area Managers - 22 former Colonial Franchisees • Single Model - Area & Franchise structures merged • Business Banking; • - Dedicated Structure & Focus • Personal Banking; • - Dedicated Focus on Managed Funds Business • - Allfinanz Strategy

11. “Allfinanz” strategy • Largest customer base • Growth opportunity - effective cross-sell & referral • Grouping of Advisory/Insurance staff - specialist stream • “Team” approach within Areas (referrals); • - Branch Sales & Service • - Mobile Bankers • - Advisors/Consultants/Insurance • - Relationship Managers • - Small Business Sales

12. Business Banking • Distinct delivery models - “Middle Market” & “Small” • “Middle Market”; • - Separate reporting line to State General Manager • - New Regional Manager positions established • - Streamlined & rationalised Business Banking Centres • “Small Business”; • - Sales teams within Areas • - Centralised, telephone-based account servicing

13. Positive Outcomes • All milestones achieved on or ahead of schedule • Strong business momentum • Tracking to business case costs & synergies • Public assurances being met

14. Keys to Success • Line management ownership at local level • New network structure (best-of-the-best) • Focus on business • Managing dual networks • Support - Queue Walkers, Advocates, Training, Diary • Meticulous planning & execution

15. Agenda 1. Overview - Goals & Strategy 2. Network Integration 3. Business Outcomes

16. Sales & Service 2000+ “This is where I work” “This is my business” Cultural Change

17. Key Performance Indicators  Sales Service Customer Management Leadership & People   

18. Sales • Growing momentum in key markets • Record Home Loan volumes • Commercial Lending • Managed Funds

19. Service Quality • New standards & measurement - all key channels • Service a KPI for all network leaders • Linked to year-end remuneration • Communication, training, reinforcement • Extra focus during integration

20. Customer Management • Transaction migration - customer education • Ongoing promotion of self-service options • Over 2000/01; • - EzyBanking customer numbers up over 200% • - NetBank transactions +200% • - EFTPOS transactions +40% • - ATM transactions +6% • - Over 2 million customer service calls per week • - “Over-the-Counter” transactions < 16%

21. Leadership & People • Gallup Staff Survey - significant improvement • Positive trends; • - Absenteeism • - Turnover • Differentiated approach across key job families; • - Recruitment • - Employment Arrangements • - Accreditation & Upskilling • - Remuneration & Reward

22. Summary • Platforms for Growth • Growing business momentum • Future potential