Capital

1
Capital
Marten Touw, Group Treasurer

• 29 July 2003

www.commbank.com.au
2
Disclaimer

• The material that follows is a presentation of
  general background information about the Banks
  activities current at the date of the
  presentation 29 July 2003. 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
Speakers Notes

• Speakers notes for these presentations are
  attached below each slide.
• To access them, you may need to save the slides
  in PowerPoint and view/print in notes view.

4
Capital requirements must be aligned with
business risks

• CBA understands the capital needs of its
  businesses in the
• context of the economic risks of those
  businesses
• Other measures of capital reflect proprietary
  assessment
• criteria designed to fit a particular decision
  making framework

5
There are differing perspectives of capital

• Shareholders
• Regulators
• Rating Agencies

6
Capital to protect shareholders interests

• Economic Equity
• Internal models show CBA is strongly capitalised
• Conglomerates - APRA review of internal models

7
Capital to protect depositors interests
8
Capital to protect policyholders interests
807m
Total excess over capital adequacy 807m
9
Capital to protect debtholders interests

• CBAs capital position remains strong as
  evidenced by our
• credit ratings

10
Proposed changes to the regulatory environment

• Conglomerates
• Basel 2
• IAS
• Capitalised Expenses

11
Proposed changes to the regulatory environment

• Conglomerates
• Basel 2
• IAS
• Capitalised Expenses

12
Proposed changes to the regulatory environment

• Conglomerates
• Basel 2
• IAS
• Capitalised Expenses

13
Proposed changes to the regulatory environment

• Conglomerates
• Basel 2
• IAS
• Capitalised Expenses

14
Summary

• CBA understands the capital needs of its
  businesses in the
• context of the economic risks of those
  businesses
• CBAs capital position reflects the requirements
  of
• Shareholders
• Regulators
• Rating Agencies

15
Capital
Marten Touw, Group Treasurer

• 29 July 2003

www.commbank.com.au