Australian Financial Services Conference

1
Australian Financial Services Conference

• Michael Cameron
• Group Executive, Retail Banking Services
• Commonwealth Bank of Australia
• 21 June 2006

2
Disclaimer The material that follows is a
presentation of general background information
about the Banks activities current at the date
of the presentation, 21 June 2006. 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
Outline

• Market conditions
• Business performance
• Credit quality
• RBS strategy
• Leadership
• Product initiatives
• Credit growth drivers

4
Market conditions

• Market remains competitive
• Home lending strong
• limited impact of rate rise
• fixed home borrowing increased
• Strong business capex
• Personal lending stable
• No material changes to credit quality

5
Banking - Home Lending (domestic)
Spot Balances (including securitisation)

• Orderly market slow down
• CBA balance growth (Dec 05)
• 12 vs Dec 04
• 5 vs Jun 05
• Market share steady
• Margin relatively stable

140bn
136bn
130bn
122bn
Dec 04
Jun 05
Dec 05
Mar 06
Market Share
Dec 04
Dec 03
Jun 04
Dec 05
Mar 06
Jun 05
6
Banking - Deposits (domestic)
Balances
129bn
127bn

• Market remains competitive
• Strong inflows into Netbank Saver Streamline
• Over 50 of Netbank inflows are new to the Bank
• Market share stabilising

123bn
119bn
Dec 04
Dec 05
Mar 06
Jun 05
Market Share (1)
Mar 06
Dec 04
Dec 03
Jun 04
Dec 05
Jun 05
(1) APRA published data series only begins in
March 2004 for Household Deposits
7
Banking Personal Lending (domestic)
Personal Lending Balances (1)

• CBA Balance growth (Dec 05)
• 7 vs Dec 04
• -1 vs Jun 05
• Market share and balance growth affected by DEET
  buy-back (Dec-05 Half)
• Credit card market share impacted by low rate
  cards
• Yellow Card introduced 1 March

15.5bn
15.4bn
15.6bn
14.3bn
Dec 04
Jun 05
Dec 05
Mar 06
Market Share (2)
Dec 04
Dec 03
Jun 04
Jun 05
Dec 05
Mar 06
(1) Includes credit cards, personal loans and
margin lending (2) APRA published data series
only begins in March 2004 for Personal Lending
8
Credit Quality Credit Cards
Credit Cards - 30 Day Arrears
6.00
9
8
5.00
7
4.00
6
5
3.00
4
2.00
3
2
1.00
1
0.00
0
04
04
05
05
05
06
04
05
-
-
-
-
-
-
-
-
Jun
Mar
Jun
Mar
Sep
Dec
Sep
Dec
CBA
Peer Average
9
Credit Quality Personal Loans
Personal Loans - 30 Day Arrears
6
7
6
5
5
4
4
()
3
3
2
2
1
1
0
0
Jun-04
Mar-05
Jun-05
Mar-06
Sep-04
Dec-04
Sep-05
Dec-05
CBA
Peer Average
10
Strategy
To be Australias finest financial services
organisation through excelling in customer
service
Empower Our people are empowered to care for the
business as if it was their own
People Our frontline people are the Bank
Service Operational Excellence Simplify and
automate
11
Leadership

• Organised around Sales, Products and Support
• Clarity, simplicity and accountability
• Sales organised around branch network and direct
  sales channels
• Products divided between assets and liabilities
• Single point accountability for business
  projects

12
Product initiatives

• NetBank Saver
• Yellow Credit Card
• PayPass
• NetBank fee free on everyday transactions
• Streamline e-Access and Streamline Unlimited

13
Credit growth drivers
14
Conclusion

• Retail Bank driven by good market growth
• No material changes to credit quality to date,
  but closely monitoring trends in portfolio
• Sales Service to align to customer needs
• Staffing levels, training and systems
• Listening to customers and staff

15
Australian Financial Services Conference

• Michael Cameron
• Group Executive, Retail Banking Services
• Commonwealth Bank of Australia
• 21 June 2006