6-K

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934

Commonwealth Bank of Australia

ABN 48 123 123 124

(Registrant’s Name)

Level 2
48 Martin Place
SYDNEY NSW 1155
AUSTRALIA

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ                    Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule101(b)(1) o

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7) o

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organised (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o                     No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

Documents Furnished by the Registrant

Exhibit No.	Description
1.	Commonwealth Bank 2007 Full Year results – Media Release
2.	Commonwealth Bank 2007 Full Year Results – Profit Announcement
3.	Commonwealth Bank 2007 Full Year Results – Media Presentation
4.	Commonwealth Bank 2007 Full Year Results – Analyst Presentation
5.	2007 Full Year Results – ASB Media Release
6.	2007 Full Year Results – ASB Consolidated Performance

Exhibit No.	Description
1.	Commonwealth Bank 2007 Full Year results – Media Release
2.	Commonwealth Bank 2007 Full Year Results – Profit Announcement
3.	Commonwealth Bank 2007 Full Year Results – Media Presentation
4.	Commonwealth Bank 2007 Full Year Results – Analyst Presentation
5.	2007 Full Year Results – ASB Media Release
6.	2007 Full Year Results – ASB Consolidated Performance

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised.

COMMONWEALTH BANK OF AUSTRALIA
By:	/s/ John Damien Hatton Name: John Damien Hatton
	Title: Company Secretary
	Date: 15 August, 2007

INDEX TO EXHIBIT

Exhibit No.	Description
1.	Commonwealth Bank 2007 Full Year results – Media Release
2.	Commonwealth Bank 2007 Full Year Results – Profit Announcement
3.	Commonwealth Bank 2007 Full Year Results – Media Presentation
4.	Commonwealth Bank 2007 Full Year Results – Analyst Presentation
5.	2007 Full Year Results – ASB Media Release
6.	2007 Full Year Results – ASB Consolidated Performance

EX-99.1

Media Release Media Release

Marketing and Communications
GPO Box 2719
Sydney NSW 1155
www.commbank.com.au

COMMONWEALTH BANK OF AUSTRALIA DELIVERS 18 PER
CENT INCREASE IN CASH PROFIT*

Shareholders rewarded with record $1.49 final dividend, up 15 per cent
on prior comparative period

Highlights of 2007 Result

§	Net profit after tax on cash basis, increased 18 per cent to $4,604 million*;
§	Double digit earnings growth from all three of the Group’s business segments;
§	Significant progress on five key strategic priorities;
§	Return on equity, on a cash basis, increased 80 basis points (bpts) to 22.1 per cent;
§	Continued stability in credit quality across the Group;
§	Record final dividend of $1.49 per share, fully franked taking total dividends for the year to $2.56, an increase of 14 percent; and
§	Outlook for 2008 financial year remains positive with continued strong domestic credit growth expected.

				2007 v
	2007			2006
Cash NPAT ($m)*		4,604			18	%
Cash EPS (cents)*		353.0			16	%
Dividend ($  per share)		2.56			14	%
Return on Equity – Cash		22.1	%	80bpts

* Excludes $145 million profit on sale of Hong Kong based insurance business in prior year. Unless otherwise indicated all financial comparisons are with the prior year.

Media Release Media Release

Marketing and Communications
GPO Box 2719
Sydney NSW 1155
www.commbank.com.au

Sydney, 15 August 2007. The Commonwealth Bank of Australia delivered a cash net profit after tax (NPAT) for the year ended 30 June 2007 of $4,604 million – an increase of 18 per cent *.

Cash earnings per share (EPS) increased to 353 cents, up 16 per cent*. The Board declared a fully franked final dividend of $1.49 per share – an increase of 15 per cent on last year’s final dividend.

The result was underpinned by strong performance from all of the Group’s businesses with Banking, Funds Management and Insurance all delivering double digit growth in Underlying NPAT . As well as continuing to deliver strong earnings growth, the Group again improved its return on equity – up 80 bpts to 22.1 per cent. Credit quality across the Group remained robust. The Group’s capital position improved with the ACE ratio increasing from 4.39 in July 2006 to 4.79 per cent. During the year both Standard and Poor’s and Moody’s Investor Services upgraded the Group’s long term credit ratings.

Chief Executive Officer, Ralph Norris said: “This is another good result for the Group. All of our businesses have delivered excellent performances. We have again delivered double digit earnings growth and rewarded our shareholders with another record dividend. This has been achieved in a competitive environment where we have not relaxed our high credit standards.”

“One particularly pleasing aspect of the year has been that we have made good progress on our five strategic priorities and have continued to invest in the business. This has manifested itself in a wide range of initiatives many of which are focused on delivering great outcomes for our customers. We have significantly increased the number of frontline staff and built new technology solutions to help our customers and our people. These investments in new business opportunities are laying the foundations for future growth.”

“All of our businesses have momentum and I am confident, as we enter the new financial year, we are well positioned to perform strongly in a competitive environment.”

Business Performance

The banking business performed well with underlying NPAT of $3,763 million – up 17 per cent. Average loan balances across the business were up 15 per cent.

In a competitive environment, the Australian retail banking business delivered strong profitable volume growth, particularly in home loans and household deposits.

* The comparable period included a one off gain of $145 million on the sale of the Group’s Hong Kong based insurance business. With this added back to the prior comparative period, the increase in cash NPAT was 14 per cent.

Media Release Media Release

Marketing and Communications
GPO Box 2719
Sydney NSW 1155
www.commbank.com.au

The growth in market share achieved in the second half of the year was the result of the continued focus on customer service and improved performance from the branch network.

Business lending was also very strong with the Group benefiting from continuing momentum in Institutional Banking which delivered above market growth rates. Financial markets income also grew following favourable trading conditions and increased customer flows. CommSec experienced record trading volumes and margin lending balances grew 40 per cent.

While the Group continued to invest heavily in growth initiatives, the banking businesses were also able to deliver productivity improvements. As a result banking operating expenses only increased by 5 per cent (compared with revenue growth of 10 per cent) and the cost to income ratio improved to 45.8 per cent.

In New Zealand, ASB Bank grew lending balances and retail deposits by 16 per cent in a very competitive market. Despite the challenging conditions, underlying New Zealand dollar NPAT (excluding the impact of hedging and AIFRS volatility) increased 8 per cent.

The Funds Management business delivered underlying NPAT of $492 million – up 23 per cent. Funds under administration (FUA) grew 17 per cent to $177 billion driven by strong investment performance and the continued success of the FirstChoice platform which grew FUA by 51 per cent to $40 billion. Investment performance remained solid with 74 per cent of funds outperforming their respective 3 year benchmark. As part of its strategy to expand into alternative asset classes and further develop its infrastructure capabilities, CFS Global Asset Management participated in the successful acquisition of UK based water company AWG plc. The planned sell down of this asset into infrastructure funds is progressing well.

Underlying NPAT for the Insurance business was up 18 per cent. This result was driven by a combination of solid inforce premium growth in Australia and New Zealand (up 21 per cent); positive claims experience and an improvement in planned margins (which increased to 26 per cent) partially offset by an increase in investment to generating future revenue growth.

Outlook

The domestic economy maintained a good level of growth during 2007 financial year.

While there is some risk from recent instability in global financial markets, the outlook for the Australian economy remains positive for the 2008 financial year. As far as credit growth is concerned, housing credit is expected to grow at a similar rate to that

Media Release Media Release

Marketing and Communications
GPO Box 2719
Sydney NSW 1155
www.commbank.com.au

experienced in the 2007 financial year while business and other consumer credit growth is likely to ease slightly from current levels.

The current high level of competitive intensity is not anticipated to decline in the coming year. Despite this, all of the Group’s businesses are performing well and the investments we are making coupled with quality execution will ensure that we remain competitive.

Taking all these factors into consideration, the Group expects to again deliver, for the 2008 financial year, EPS growth which meets or exceeds the average of its peers through a continued focus on delivering exceptional customer service and profitable growth.

ENDS

Media contact:
Bryan Fitzgerald
General Manager, Media
Ph: (02) 9378 2663
Mobile: 0414 789 649

Media Release Media Release

Marketing and Communications
GPO Box 2719
Sydney NSW 1155
www.commbank.com.au

	Full Year			Full Year					Half Year			Half Year
	ended			ended			June07V’s		ended			ended
	June 07			June 06			June 06		June 07			Dec 06
Highlights	$M			$M			%		$M			$M
Banking		3,763			3,227			17		1,896			1,867
Funds Management		492			400			23		260			232
Insurance		253			215			18		142			111
Net profit after tax (underlying basis)		4,508			3,842			17		2,298			2,210
Add profit on sale of the Hong Kong Business		—			145			large		—			—
Add Shareholder Investment returns (after tax)		96			66			45		35			61
Net profit after tax (cash basis)		4,604			4,053			14		2,333			2,271
Less Non cash items		(134	)		(125	)		7		(54	)		(80	)
Net profit after tax (statutory basis)		4,470			3,928			14		2,279			2,191
Key Shareholder Ratios
Earnings per share (cents) (cash basis – basic)		353.0			315.9			12		178.3			174.7
Earnings per share (cents) (cash basis – basic) -excluding the sale of Hong Kong		353.0			304.6			16		178.3			174.7
Return on equity (%) (cash basis)		22.1			21.3		80bpts			22.0			22.3
Dividend per share (cents) (fully franked)		256			224			14		149			107
Dividend payout ratio (%) (cash basis) –		73.0			71.0		200bpts			84.1			61.5
Other Performance Indicators
Total lending assets (net of securitisation) ($M)		304,100			266,096			14		304,100			286,814
Total assets held and funds under administration ($M)		177,071			151,513			17		177,071			167,662
Net interest margin (%)		2.19			2.34		(15)bpts			2.16			2.22
Banking expense to income (%)		45.8			47.7			4		46.1			45.6
Funds management expense to FUA (%)		0.71			0.71			—		0.72			0.71
Insurance expense to in-force premiums (%)		36.3			38.6			6		34.7			36.2

Definitions:

NPAT (“Cash Basis”) – Represents profit after tax and minority interests before defined benefit superannuation plan expense/income, treasury shares valuation adjustment and one-off AIFRS mismatches.

NPAT (“Underlying Basis”) – Represents NPAT (“Cash Basis”) excluding shareholder investment returns and profit on sale of the Hong Kong business.

NPAT (“Statutory Basis”) – Represents profit after tax, minority interests, defined benefit superannuation plan expense/income, treasury shares valuation adjustment and one-off AIFRS mismatches. This is equivalent to the statutory item “Net Profit attributable to Members of the Group”.

EX-99.2

Profit Announcement

Incorporating ASX Appendix 4E requirements
For the full year ended 30 June 2007

Appendix 4E
Results for announcement to the market (1)
Report for the full year ended 30 June 2007	$M
Revenues from ordinary activities	Up 16% to $33,169
Profit (loss) from ordinary activities after tax attributable to Equity holders	Up 14% to $4,470
Net profit (loss) for the period attributable to Equity holders	Up 14% to $4,470
Dividends (distributions)
Final Dividend – fully franked (cents per share)		149
Interim Dividend – fully franked (cents per share)		107
Record date for determining entitlements to the dividend	24 August 2007

(1) Rule 4.2.C.3

Refer to Appendix 18 ASX Appendix 4E for disclosures required under ASX Listing Rules on page 56.

This report should be read in conjunction with the 30 June 2007 Annual Financial Report of the Group and any public announcements made in the period by the Group in accordance with the continuous disclosure requirements of the Corporations Act 2001 and the ASX Listing Rules.

Important Dates for Shareholders
Full Year Results Announcement	15 August 2007
Ex-dividend Date	20 August 2007
Record Date	24 August 2007
Final Dividend Payment Date	5 October 2007
Annual General Meeting	7 November 2007
2008 Interim Results Date	13 February 2008

For further information contact:

Investor Relations
Warwick Bryan
Phone: 02 9378 5130
Facsimile: 02 9378 2344
Email: ir@cba.com.au

Except where otherwise stated, all figures relate to the full year ended 30 June 2007 and comparatives to the full year ended 30 June 2006. The term “prior comparative period” refers to the half year ended 30 June 2006, while the term “prior half” refers to the half year ended 31 December 2006, unless otherwise stated.

Highlights	2
Financial Performance and Business Review	2
Group Performance Summary	3
Shareholder Summary	3
Balance Sheet Summary	4
Key Performance Indicators	4
Banking Analysis	6
Financial Performance and Business Review	6
Key Performance Indicators	7
Total Banking Assets and Liabilities	9
Australian Retail	10
Business, Corporate and Institutional	12
Asia Pacific	14
Funds Management Analysis	16
Financial Performance and Business Review	16
Key Performance Indicators	17
Funds Under Administration	18
Insurance Analysis	20
Financial Performance and Business Review	20
Key Performance Indicators	21
Annual Inforce Premiums	22
Shareholder Investment Returns	23
Financial Statements	24
Consolidated Income Statement	24
Consolidated Balance Sheet	25
Consolidated Statement of Cash Flows	26
Appendices	28

Highlights

Financial Performance and Business Review

Performance Highlights

	Full Year				Half Year
	30/06/07		30/06/06		30/06/07		31/12/06
Net Profit after Income Tax	$M		$M		$M		$M
Statutory basis		4,470		3,928		2,279		2,191
Cash basis		4,604		4,053		2,333		2,271
Cash basis ex HK sale		4,604		3,908		2,333		2,271

The Group’s net profit after tax (“statutory basis”) for the year ended 30 June 2007 was $4,470 million, an increase of 14% on the prior year. The final dividend of $1.49 per share is another record and the total dividend for the year is $2.56 per share.

Cash earnings per share⁽¹⁾ increased 16% on the prior year to 353.0 cents.

The net profit after tax (“cash basis”)⁽¹⁾ increased 18% to $4,604 million.

The Group’s Return on equity (“cash basis”) has improved by 80 basis points over the year to 22.1%.

The Group has delivered another strong performance during the year, through continued improvement in customer service and a focus on profitable growth. Key financial performance highlights over the year were:

• Solid growth in Banking income of 10% on the prior year, following growth in average interest earning assets of 15% to $316 billion and net interest margin contraction of 15 basis points (including 10 basis points of underlying margin contraction);

• Growth in Funds Under Administration of 17% to $177 billion supported by both strong underlying inflows and positive investment market returns;

• Growth in insurance premiums of 21% to $1,400 million and improved operating margins;

• Strong growth in Total operating income of 11% with expense growth of 7%. The expense growth is driven by ongoing reinvestment in our businesses through recruitment of front line staff and increased spend on strategic initiatives; and

• Continued stability in credit quality across the portfolio.

The result for the half year ended 30 June 2007 was solid with net profit after tax (“cash basis”), increasing by 17% to $2,333 million compared with the prior comparative period. The Group has invested significantly in the current half in support of its strategic priorities. The current half was also impacted by three fewer days and seasonally higher bad debts. This resulted in a 3% increase in cash profit compared with the prior half.

Other performance highlights specifically relating to the Group’s strategic priorities over the year included:

• Significant increases in customer satisfaction scores;

• Streamlining and simplifying the operation of the branch network, empowering local decision makers and strengthening the linkage between performance and remuneration;

• Launch of CommBiz transactional banking service and the Local Business Banking Online networking platforms to further enhance service quality to business customers; and

• Early success of the Wealth Management cross-sell initiatives with a 15% increase in total referrals and a 30% increase in new General Insurance sales.

Dividends

The total dividend for the year is another record at $2.56 per share.

The final dividend declared is $1.49 per share which takes the full year dividend to $2.56, an increase of 32 cents or 14% on the prior year. The dividend has been determined based on net profit after tax (“cash basis”). On this basis the dividend payout ratio for the year is 73.0%.

The dividend payment is fully franked and will be paid on 5 October 2007 to owners of ordinary shares at the close of business on 24 August 2007 (“record date”). Shares will be quoted ex–dividend on 20 August 2007.

The Group issued $518 million of shares to satisfy shareholder participation in the Dividend Reinvestment Plan (“DRP”) in respect of the interim dividend for 2006/07.

Dividends per Share (cents)

Outlook

The economy performed well in 2007 with strong credit growth in housing, personal and business lending, supported by low levels of unemployment and robust capital expenditure.

While the outlook for the Australian economy for the 2008 financial year remains positive, there is some risk from recent instability in global financial markets. However, given the mix of the Group’s business and, in particular, its strong retail franchise, the Group is well positioned to continue to deliver strong returns.

Credit growth for the 2008 financial year is likely to remain strong although growth in business credit, which ran at nearly 19% in the 2007 year, may begin to slow. Despite recent rate rises, housing credit growth is expected to be slightly stronger due to continued high demand assisted by the migration of skilled workers to Australia. However, consumer credit growth is likely to slow from the 15% experienced in 2007 to between 8.5 — 10.5%.

The current high level of competitive intensity is not anticipated to decline in the coming year. Despite this, all of the Group’s businesses are performing well and the investments we are making coupled with quality execution will ensure that we remain competitive.

Taking all these factors into consideration, the Group expects to again deliver EPS growth in the coming year which meets or exceeds the average of its peers through a continued focus on delivering exceptional customer service and profitable growth.

(1) Excluding the profit from the sale of the Hong Kong Insurance Business during the 2006 financial year.

2     Commonwealth Bank of Australia

Highlights continued

		Full Year Ended											Half Year Ended
	30/06/07			30/06/06			Jun 07 vs			30/06/07			31/12/06			Jun 07 vs
Group Performance Summary	$M			$M			Jun 06 %			$M			$M			Dec 06 %
Net interest income		7,036			6,514			8			3,551			3,485			2
Other banking income		3,432			3,036			13			1,754			1,678			5
Total banking income		10,468			9,550			10			5,305			5,163			3
Funds management income		1,874			1,543			21			981			893			10
Insurance income		817			742			10			435			382			14
Total operating income		13,159			11,835			11			6,721			6,438			4
Shareholder investment returns		149			101			48			64			85			(25	)
Profit on sale of the Hong Kong Insurance Business		—			145			large			—			—			—
Total income		13,308			12,081			10			6,785			6,523			4
Operating expenses		6,427			5,994			(7	)		3,283			3,144			(4	)
Loan impairment expense		434			398			(9	)		239			195			(23	)
Net profit before income tax		6,447			5,689			13			3,263			3,184			2
Corporate tax expense (1)		1,816			1,605			(13	)		916			900			(2	)
Minority interests (2)		27			31			13			14			13			(8	)
Net profit after income tax (“cash basis”)		4,604			4,053			14			2,333			2,271			3
Defined benefit superannuation plan income/(expense)		5			(25	)		large			1			4			(75	)
Treasury shares valuation adjustment		(75	)		(100	)		25			(37	)		(38	)		3
One-off AIFRS mismatches		(64	)		—			—			(18	)		(46	)		61
Net profit after income tax (“statutory basis”)		4,470			3,928			14			2,279			2,191			4
Represented by:
Banking		3,763			3,227			17			1,896			1,867			2
Funds management		492			400			23			260			232			12
Insurance		253			215			18			142			111			28
Net profit after income tax (“underlying basis”)		4,508			3,842			17			2,298			2,210			4
Shareholder investment returns after tax		96			66			45			35			61			(43	)
Cash net profit after tax excluding the sale of the Hong Kong Insurance Business		4,604			3,908			18			2,333			2,271			3
Profit on sale of Hong Kong Insurance Business		—			145			large			—			—			—
Net profit after tax (“cash basis”)		4,604			4,053			14			2,333			2,271			3

(1)	For purposes of presentation, Policyholder tax benefit and Policyholder tax expense components of corporate tax expense are shown on a net basis.
(2)	Minority interests include preference dividends paid to holders of preference shares in ASB Capital.

	Full Year Ended							Half Year Ended
	30/06/07		30/06/06		Jun 07 vs			30/06/07		31/12/06		Jun 07 vs
Shareholder Summary					Jun 06 %							Dec 06 %
Dividend per share – fully franked (cents)		256		224		14			149		107		39
Dividend cover – cash (times)		1.4		1.4		n/a			1.2		1.6		n/a
Earnings per share (cents) (1)
Statutory – basic		344.7		308.2		12			175.1		169.6		3
Cash basis – basic		353.0		315.9		12			178.3		174.7		2
Cash basis – basic excluding the sale of Hong Kong Insurance Business		353.0		304.6		16			178.3		174.7		2
Dividend payout ratio (%)
Statutory		75.2		73.3	190		bpts		86.1		63.8		large
Cash basis		73.0		71.0	200		bpts		84.1		61.5		large
Weighted avg no. of shares – statutory basic (M) (1)		1,281		1,275		—			1,286		1,276		1
Weighted avg no. of shares – cash basic (M) (1) 2)		1,289		1,283		—			1,293		1,284		1
Return on equity – cash (%)		22.1		21.3	80		bpts		22.0		22.3	(30)		bpts

(1)	For definitions refer to appendix 23 page 67.
(2)	Fully diluted EPS and weighted average number of shares (fully diluted) are disclosed on page 62.

Profit Announcement     3

Highlights continued

	As At
	30/06/07		31/12/06		30/06/06		Jun 07 vs			Jun 07 vs
Balance Sheet Summary	$M		$M		$M		Dec 06 %			Jun 06 %
Lending assets (1)		304,100		286,814		266,096		6			14
Total assets		425,139		397,261		369,103		7			15
Total liabilities		400,695		374,774		347,760		7			15
Shareholders’ Equity		24,444		22,487		21,343		9			15
Assets held and Funds Under Administration (FUA)
On Balance Sheet:
Banking assets		397,093		367,250		340,254		8			17
Insurance Funds Under Administration		19,814		21,040		20,792		(6	)		(5	)
Other insurance and internal funds management assets		8,232		8,971		8,057		(8	)		2
		425,139		397,261		369,103		7			15
Off Balance Sheet:
Funds Under Administration		157,257		146,622		130,721		7			20
Total assets held and FUA		582,396		543,883		499,824		7			17

(1) Lending assets comprise Loans, advances, and other receivables (gross of provisions for impairment and excluding securitisation) and Bank acceptances of customers.

	Full Year Ended							Half Year Ended
					Jun 07 vs							Jun 07 vs
Key Performance Indicators	30/06/07		30/06/06		Jun 06 %			30/06/07		31/12/06		Dec 06 %
Banking
Underlying net profit after tax ($M)		3,763		3,227		17			1,896		1,867		2
Net interest margin (%)		2.19		2.34	(15		)bpts		2.16		2.22	(6		)bpts
Average interest earning assets ($M) (1)		316,048		274,798		15			325,380		306,868		6
Average interest bearing liabilities ($M) (1)		294,792		255,100		16			303,171		286,548		6
Expense to income (%)		45.8		47.7		4			46.1		45.6		(1	)
Funds Management
Underlying net profit after income tax ($M)		492		400		23			260		232		12
Operating income to average Funds under administration (%)		1.15		1.12	3		bpts		1.16		1.13	3		bpts
Funds Under Administration – spot ($M)		177,071		151,513		17			177,071		167,662		6
Expense to average FUA (%)		0.71		0.71		—			0.72		0.71		(1	)
Insurance
Underlying net profit after income tax ($M)		253		215		18			142		111		28
Inforce premiums ($M) (2)		1,400		1,156		21			1,400		1,340		4
Expense to average inforce premiums (%)		36.3		38.6		6			34.7		36.2		4
Capital Adequacy
Tier One (%)		7.14		7.56	(42		)bpts		7.14		7.06	8		bpts
Total (%)		9.76		9.66	10		bpts		9.76		9.78	(2		)bpts
Adjusted Common Equity (%)		4.79		4.50	29		bpts		4.79		4.70	9		bpts

(1)	Average interest earning assets and average interest bearing liabilities have been adjusted to remove the impact of securitisation. Refer to Average Balances and Related Interest Page 30.
(2)	During the current year the basis of calculating General Insurance inforce premiums was amended, the main change being the exclusion of badged premiums. Prior periods have been restated on a consistent basis.

Credit Ratings	Long term	Short term			Affirmed
Fitch Ratings	AA		F1	+	Jun 07
Moody’s Investor Services	Aa1	P-1			Jun 07
Standards & Poor’s	AA		A-1	+	Jun 07

The Group continues to maintain a strong capital position which is reflected in its credit ratings. In February 2007 Standards & Poor’s upgraded the Group’s long term credit rating from AA- to AA. In May 2007, Moody’s Investor Services upgraded the Group’s long term credit rating from Aa3 to Aa1. Additional information regarding the Group’s capital is disclosed in appendix 13, pages 47 to 50.

4     Commonwealth Bank of Australia

Highlights continued

(1) 2004 is presented on a previous AGAAP basis; 2006 is presented excluding the profit from sale of the Hong Kong Insurance Business.

Profit Announcement     5

Banking Analysis

Financial Performance and Business Review

Performance Highlights

The full year underlying net profit after tax of $3,763 million for the Banking business increased by 17% on the prior year.

The strong performance during the year was supported by:

• Significant business lending volume growth of 19% since June 2006 to $91 billion;

• Solid volume growth in home loans, up 13% since June 2006 to $175 billion;

• Domestic deposit volume growth of 17% since June 2006 to $175 billion including the doubling of NetBank Saver balances which now total over $8 billion;

• Net interest margin decreased 15 basis points over the year, comprising 10 basis points of underlying margin contraction and five basis points due to the higher level of liquid assets held and AIFRS accounting volatility;

• Targeted investment in areas which will drive future profitability balanced by cost control in other areas, resulting in operating expenses increasing 5% on the prior year; and

• Continued stability in the credit quality across the portfolio.

The underlying net profit after tax for the second half of the year increased by 2% to $1,896 million. The current half was impacted by a $45 million increase in investment spend on strategic initiatives. As in previous years, the second half performance was dampened by three fewer days and seasonally higher bad debts.

Detailed disclosure of business highlights by key business segments and product categories is contained on pages 10-15.

Net Interest Income

Net interest income increased by 8% on the prior year to $7,036 million. The growth was a result of continued strong volume growth reflected by an increase in average interest earning assets of 15% offset by a 6% reduction in net interest margin.

During the second half of the year net interest income increased 2%. This represents 3% growth on an underlying basis, with the positive impact of AIFRS hedging reclassification more than offset by the dampening impacts of three fewer days and a 50 basis point increase in the pensioner savings deeming rate in April. The increase in net interest income was driven by 6% growth in average interest earning assets and net interest margin contraction of six basis points.

Average Interest Earning Assets

Average interest earning assets increased by $41 billion over the year to $316 billion, reflecting a $33 billion increase in average lending interest earning assets and $8 billion increase in average non-lending interest earning assets.

Average home loan balances increased by 10% since 30 June 2006 and by 3% since December 2006. Both these growth rates were impacted by the $7 billion securitisation undertaken in March as part of ongoing capital management initiatives. Excluding this impact, the increase in gross home loan balances was 11% over the full year and 5% over the half year.

Personal Lending average balances have increased by 13% since June 2006 and 7% since December 2006. This result continues to be largely driven by strong growth in margin lending.

Average balances for Business, Corporate and Institutional lending increased 24% since June 2006 and 9% since December 2006, driven by lending to large institutions.

Net Interest Margin

Underlying net interest margin declined by 10 basis points. Increased holdings of liquid assets and AIFRS hedging volatility added a further five basis points, bringing total net interest margin decline to 15 basis points. The key drivers of the margin reduction were:

Liquid Assets: Average non lending interest earning assets have increased by $8 billion, resulting in headline margin contraction of six basis points.

AIFRS Volatility: The yield related to certain non-trading derivatives is reclassified to other banking income under AIFRS, which distorts the calculation of net interest margin. In the current year this had the effect of increasing headline margin by one basis point, net of increased hybrid instrument distributions.

Asset Pricing & Mix: Mainly the impact of strong competition in the home lending segment in both Australia and New Zealand (five basis points); and personal lending portfolio repricing (three basis points). Business lending margin has remained stable overall with some improving margins on domestic lending offsetting growth in lower margin offshore portfolios.

Cash Rate & Deposit Pricing: The combined impact of cash rate increases during 2006 on deposits, repricing of certain products and increasing proportion of lower margin savings accounts was a net benefit of three basis points. This was more than offset by an increase in the deeming rate on pensioner savings (one basis point); and yield curve impact from tightening of bill rate to cash rate spread and replicating portfolio (five basis points).

NIM movement since June 2006

During the second half net interest margin decreased by six basis points on both a headline and an underlying basis due to the offsetting impact of liquid asset growth and AIFRS volatility.

Underlying margin contraction was due to:

• Asset Pricing & Mix impact of three basis points due to competitive pricing of home loans and growth in the lower yielding margin lending portfolio; and

• Cash Rate & Deposit Pricing related contraction of three basis points due to similar influences as described above.

Additional information, including the Average Balance Sheet, is set out on pages 30 to 33.

6     Commonwealth Bank of Australia

Banking Analysis continued

	Full Year Ended							Half Year Ended
	30/06/07		30/06/06		Jun 07 vs			30/06/07		31/12/06		Jun 07 vs
Key Performance Indicators	$M		$M		Jun 06 %			$M		$M		Dec 06 %
Net interest income		7,036		6,514		8			3,551		3,485		2
Other banking income		3,432		3,036		13			1,754		1,678		5
Total Banking income		10,468		9,550		10			5,305		5,163		3
Operating expenses		4,797		4,558		(5	)		2,443		2,354		(4	)
Loan impairment expense		434		398		(9	)		239		195		(23	)
Net profit before income tax		5,237		4,594		14			2,623		2,614		—
Income tax expense		1,447		1,339		(8	)		713		734		3
Minority interests		27		28		4			14		13		(8	)
Net profit after income tax (“cash basis”)		3,763		3,227		17			1,896		1,867		2
Net profit after income tax (“underlying basis”)		3,763		3,227		17			1,896		1,867		2

	Full Year Ended							Half Year Ended
	30/06/07		30/06/06		Jun 07 vs			30/06/07		31/12/06		Jun 07 vs
Productivity and Other Measures	$M		$M		Jun 06 %			$M		$M		Dec 06%
Net interest margin (%)		2. 19		2.34	(15		)bpts		2.16		2.22	(6		)bpts
Expense to income (%)		45. 8		47.7		4			46.1		45.6		(1	)
Effective corporate tax rate (%)		27. 6		29.1	150		bpts		27.2		28.1	90		bpts

	Full Year Ended								Half Year Ended
	30/06/07			30/06/06			Jun 07 vs		30/06/07			31/12/06			Jun 07 vs
Total Banking Net Profit after Tax (“Underlying Basis”)	$M			$M			Jun 06 %		$M			$M			Dec 06 %
Australian Retail products		1,840			1,678			10		928			912			2
Business, Corporate and Institutional products (1)		1,529			1,236			24		767			762			1
Hedging and AIFRS volatility (2)		2			(41	)	large			1			1			—
Asia Pacific		390			356			10		201			189			6
Hedging and AIFRS volatility(2)		59			17		large			85			(26	)	large
Other (2)		(57	)		(19	)	large			(86	)		29		large
Total Banking Net profit after tax (“underlying basis”)		3,763			3,227			17		1,896			1,867			2

(1)	During the current year certain Balance Sheet risk management operations have been merged within the Financial Markets product of the Business, Corporate and Institutional segment; and the methodology for overhead cost allocation between Banking segments has been refined. Prior periods have been restated on a consistent basis.
(2)	During the current half the impact of Hedging and AIFRS volatility has been separately disclosed within the Business, Corporate and Institutional and Asia Pacific segments. Prior periods have been restated on a consistent basis.

Other Banking Income

	Full Year						Half Year
	30/06/07			30/06/06			30/06/07		31/12/06
	$M			$M			$M		$M
Commissions		1,729			1,635			870		859
Lending fees		896			800			479		417
Trading income		555			505			249		306
Other income		271			175			112		159
		3,451			3,115			1,710		1,741
Non-trading derivatives		(19	)		(79	)		44		(63	)
Other banking income		3,432			3,036			1,754		1,678

     Excluding the impact of AIFRS non-trading derivative volatility, Other banking income increased 11% over the year.

Other Banking Income

Factors impacting Other banking income were:

•	Commissions: increased by 6% on the prior year to $1,729 million. The increase was driven by a 22% increase in CommSec brokerage volumes and increased volume of initial public offering activities;
•	Lending fees: increased by 12% on the prior year to $896 million. The result was driven by an increase in lending volumes, particularly line fees related to the business and corporate lending portfolios;
•	Trading income: increased 10% on the prior year to $555 million reflecting favourable market conditions; and
•	Other income: increased $96 million on the prior year. The current year includes a $79 million gain on the sale of the Group’s share in Greater Energy Alliance Corporation Pty Limited (“Loy Yang”) and $58 million in relation to the sale of Mastercard shares. The prior year includes $32 million relating to the Mastercard initial public offering. The level of asset sales is not inconsistent with historic experience.
	Other income in the second half decreased by $47 million to $112 million. After adjusting for the timing of Loy Yang, Mastercard and other property asset sales, other income was flat.

The current half result decreased by 2% compared to the prior half after excluding the impact of non-trading derivatives. This was the result of a reduction in trading income in the current half and the timing of asset sales impacting other income.

Profit Announcement     7

Banking Analysis continued

Operating expenses

Underlying operating expenses within the Banking business increased by 5% on the prior year to $4,797 million. Operating expenses were impacted by:

• Average salary increases of 4% reflecting the competitive domestic labour market and the effect of inflation on general expenses;

• Ongoing investment in front line staff across each of our key businesses, with staff numbers rising 3% over the year;

• Continued investment in various projects supporting the strategic priorities of the Group most notably the Business Banking and Global Markets growth initiatives, which were accelerated in the current half contributing to a $35 million half-on-half increase in investment spend; and

• Continued productivity improvements achieved through process simplification initiatives, including $100 million of cost savings in IT expenditure during the year.

During the second half of the year operating expenses increased 4% to $2,443 million, driven by similar factors (particularly the accelerated investment).

Banking Expense to Income Ratio

The underlying Banking expense to income ratio improved from 47.7% for the full year ended 30 June 2006 to 45.8% in the current year representing a productivity improvement of 4%. The improvement reflects strong income growth, targeted growth in investment spend and discipline in underlying cost control.

Productivity

Loan Impairment Expense

The total charge for loan impairment expense for the year was $434 million, which is 19 basis points of average risk weighted assets. During the second half the loan impairment expense increased by 23% to $239 million. This was driven by general growth in risk weighted assets, risk ratings downgrades in the corporate middle market segment and seasonal influences. Loan impairment expense on consumer loans remained steady in the second half as a proportion of risk weighted assets.

Gross impaired assets were $421 million as at 30 June 2007, compared with $326 million at June 2006.

The Group remains well provisioned, with total provisions for impairment as a percentage of gross impaired assets of 298%.

Taxation Expense

The corporate tax charge for the year was $1,447 million, an effective tax rate of 27.6%.

The effective tax rate for the half year ended 30 June 2007 was 27.2% compared to 28.1% in the prior half.

The lower effective tax rate was principally due to the utilisation of domestic capital losses in the current half and was also assisted by lower offshore tax rates.

Provisions for Impairment Losses

Total provisions for impairment losses at 30 June 2007 were $1,256 million. This includes a collective provision of $1,034 million, which expressed as a percentage of gross loans and acceptances is 0.32%. The current level reflects:

• Stable arrears rates within the Group’s consumer lending portfolios;

• The high proportion of low risk home loans within the credit portfolio; and

• Risk ratings downgrades and specific provisions within the business lending portfolio.

Risk Weighted Assets on Balance Sheet ($M)

Gross Impaired Assets ($M)

8     Commonwealth Bank of Australia

Banking Analysis continued

	As At
	30/06/07			31/12/06			30/06/06			Jun 07 vs			Jun 07 vs
Total Banking Assets & Liabilities	$M			$M			$M			Dec 06 %			Jun 06 %
Interest earning assets
Home loans including securitisation		190,337			176,721			167,121			8			14
Less: securitisation		(15,633	)		(10,754	)		(12,607	)		45			24
Home loans excluding securitisation		174,704			165,967			154,514			5			13
Personal		20,074			18,237			17,228			10			17
Business and corporate		90,601			84,215			76,044			8			19
Loans, advances and other receivables (1)		285,379			268,419			247,786			6			15
Non lending interest earning assets		49,553			45,792			40,283			8			23
Total interest earning assets		334,932			314,211			288,069			7			16
Other assets (2)		62,161			53,039			52,185			17			19
Total assets		397,093			367,250			340,254			8			17
Interest bearing liabilities
Transaction deposits		41,915			36,070			35,771			16			17
Savings deposits		49,975			47,380			42,729			5			17
Investment deposits		76,856			72,188			67,364			6			14
Other demand deposits		26,157			24,892			20,325			5			29
Total interest bearing deposits		194,903			180,530			166,189			8			17
Deposits not bearing interest		8,479			8,289			7,038			2			20
Deposits and other public borrowings		203,382			188,819			173,227			8			17
Debt issues		69,753			71,431			65,086			(2	)		7
Other interest bearing liabilities		43,719			40,320			34,890			8			25
Total interest bearing liabilities		308,375			292,281			266,165			6			16
Securitisation debt issues		15,737			11,130			13,505			41			17
Non interest bearing liabilities (3)		53,355			46,788			44,515			14			20
Total liabilities		377,467			350,199			324,185			8			16
Provisions for Impairment
Collective provision		1,034			1,040			1,046			(1	)		(1	)
Individually assessed provisions		199			171			171			16			16
Total provisions for loan impairment		1,233			1,211			1,217			2			1
Other credit provisions (4)		23			19			24			21			(4	)
Total provisions for impairment losses		1,256			1,230			1,241			2			1

	Full Year Ended							Half Year Ended
Asset Quality	30/06/07		30/06/06		Jun 07 vs Jun 06 %			30/06/07		31/12/06		Jun 07 vs Dec 06 %
Gross loans and acceptances ($M)		321,653		280,282		15			321,653		299,085		8
Risk weighted assets ($M)		245,347		216,438		13			245,347		234,569		5
Gross impaired assets ($M)		421		326		(29	)		421		338		(25	)
Net impaired assets ($M)		222		155		(43	)		222		167		(33	)
Collective provisions as a % of risk weighted assets		0.42		0.48	(6		)bpts		0.42		0.44	(2		)bpts
Collective provisions as a % of gross loans and acceptances		0.32		0.37	(5		)bpts		0.32		0.35	(3		)bpts
Individually assessed provisions for impairment as a % of gross impaired assets (5)		23.8		24.5	(70		)bpts		23.8		23.4	40		bpts
Loan impairment expense as a % of average risk weighted assets annualised (6)		0.19		0.20	1		bpt		0.20		0.17	(3		)bpts
Loan impairment expense as a % of gross loans and acceptances annualised		0.13		0.14	1		bpt		0.15		0.13	(2		)bpts

(1)	Gross of provisions for impairment which are included in Other assets.
(2)	Other assets include Bank acceptances of customers, derivative assets, provisions for impairment and securitisation assets.
(3)	Non interest bearing liabilities include derivative liabilities.
(4)	Included in Other provisions.
(5)	Bulk portfolio provisions of $99 million at 30 June 2007 ($92 million at 31 December 2006 and $91 million at 30 June 2006) to cover unsecured personal loans and credit card lending have been deducted from individually assessed provisions to calculate this ratio. These provisions are deducted due to the exclusion of the related assets from gross impaired assets. The related asset amounts are instead included in the 90 days or more past due disclosure.
(6)	Average of opening and closing balances.

Profit Announcement     9

Banking Analysis continued

Australian Retail

The Australian Retail product segment performed strongly over the year, with underlying net profit after income tax increasing by 10% to $1,840 million. This result reflects the strategic targeting of profitable growth in a competitive market, disciplined cost management and continued sound credit quality.

Business Review

Over the year, a number of initiatives have been implemented to help ensure the Group achieves its vision to be Australia’s finest financial services organisation through excelling in customer service. Highlights included:

• The continued revitalisation of the branch network, including the refurbishment of existing sites, the opening of six new branches and the introduction of extended Saturday trading at 65 of the busiest branches;

• Further changes to the branch network operating model which give local management greater authority. Key customer processes have been further streamlined. This has been supported by new remuneration and bonus arrangements for branch managers depending on the size, contribution and performance of branches;

• The creation of more than 600 new front line customer service positions since October 2005;

• The continued utilisation of CommSee, the Group’s market-leading customer information and management system, as a central element of sales and service processes;

• The implementation of more effective sales and service training programs, including entry training for new customer service staff, and sales and service leadership training for all front line team leaders; and

• Improvements to the product range as illustrated by the awarding of five star ratings* to many of the Group’s deposit accounts and credit card products (* Source: Cannex).

As a result of these and other actions, the Group has seen:

• Significant improvements in Customer Satisfaction ratings;

• A reduction in customer complaints of over 40% since June 2006;

• Improvements in a range of staff engagement measures; and

• Strong volume growth leading to stabilised and growing market shares across key product lines.

Home Loans

Home loan revenue increased by 4% over the year to $1,466 million. Balances grew by 11% over the year, including strong second half growth of 7% driven by improved network sales performance. Margin compression over the year occurred predominantly in the first half, reflecting strong growth in lower margin package and fixed rate loans and the tightening of the yield curve ahead of the August 2006 and November 2006 cash rate rises.

Second half revenue was in line with the first half, with strong volume growth offsetting the negative impact of three fewer calendar days. Despite strong competition, market share was held constant in the second half of the year, underpinned by strong network sales and the continued success of third party banking.

Consumer Finance (Personal Loans and Credit Cards)

Total income in the Consumer Finance portfolio grew by 3% over the year. The current year includes $58 million in relation to the sale of MasterCard shares in January 2007. The prior year included $32 million relating to the MasterCard initial public offering.

The Group’s focus remains on profitable growth, achieved through effective product pricing and other initiatives.

The Group’s low-rate credit card (“Yellow”) continues to attract strong customer support, with over 240,000 accounts opened since launch in March 2006.

Retail Deposits

Deposit revenue increased by 7% on the prior year, driven by a combination of strong volume growth and improved margins. Second half revenue was only marginally down on the prior half, despite the negative impact of three fewer calendar days, the increased pensioner savings deeming rate in April and seasonal balance outflows from transaction-based accounts.

Deposit balances grew by 9% over the year, with all major product categories recording good inflows, including Transaction Accounts, Term Deposits, Cash Management Accounts and NetBank Saver. Whilst some deposit market share was ceded in the first half of the year due to aggressive pricing by competitors, the position has stabilised in the second half.

Operating Expenses

Expense growth was contained to 2% over the full year and 1% in the second half. Productivity improvements and technology savings have largely offset the cost of additional front line customer service staff and other sales and service related investments. Productivity gains contributed to further improvements in the expense to income ratio, which fell from 46.6% in the prior year to 45.2%.

Loan Impairment Expense

Loan impairment expense for the full year was $349 million. In the current half the expense was $185 million, an increase of $21 million on the prior half driven by normal seasonal factors. Loan impairment expense to risk weighted assets reduced over the year reflecting a continued focus on credit quality. Home loan impairment expenses remain broadly in line with prior years. Personal loan quality continues to improve as new business progressively replaces lower quality loans written in 2004/05. While the market has seen some deterioration, the Group’s credit card arrears rates continue to trend in line with expectations and at a lower level than last year.

Market Share Percentage(1)	30/06/07		31/12/06		30/06/06
Home loans (2)		18.5		18.4		18.7
Credit cards (2) (3)		18.8		19.3		20.3
Personal lending (APRA and other households) (4)		16.4		16.4		16.1
Household deposits		29.0		28.8		29.3
Retail deposits		21.6		21.9		22.2

(1)	For market share definitions refer to appendix 24, page 68.
(2)	31 December 2006 comparatives revised.
(3)	As at 31 May 2007.
(4)	Personal lending market share includes personal loans and margin loans.

10     Commonwealth Bank of Australia

Banking Analysis Continued

Australian Retail ⁽¹⁾

	Full Year to June 2007
	Net		Other		Total				Loan		Underlying
	Interest		Banking		Banking		Expenses		Impairment		Profit after
	Income $M		Income $M		Income $M		$M(2)		$M		Tax $M
Home loans		1,294		172		1,466
Consumer finance		708		424		1,132
Retail deposits		2,107		676		2,783
Australian Retail products		4,109		1,272		5,381		2,430		349		1,840

	Full Year to June 2006
	Net		Other		Total				Loan		Underlying
	Interest		Banking		Banking		Expenses		Impairment		Profit after
	Income $M		Income $M		Income $M		$M(2)		$M		Tax $M
Home loans		1,260		151		1,411
Consumer finance		732		368		1,100
Retail deposits		1,938		674		2,612
Australian Retail products		3,930		1,193		5,123		2,388		354		1,678

	Half Year to June 2007
	Net		Other		Total				Loan		Underlying
	Interest		Banking		Banking		Expenses		Impairment		Profit after
	Income $M		Income $M		Income $M		$M(2)		$M		Tax $M
Home loans		650		85		735
Consumer finance		357		233		590
Retail deposits		1,046		339		1,385
Australian Retail products		2,053		657		2,710		1,224		185		928

(1)	During the current period the methodology for allocation of total Australian Retail income between products and segments has been refined. Prior periods have been restated on a consistent basis.
(2)	During the current period the methodology for overhead cost allocation has been refined. Prior periods have been restated on a consistent basis.

	As At
	30/06/07		31/12/06		30/06/06		Jun 07 vs			Jun 07 vs
Major Balance Sheet Items (gross of impairment)	$M		$M		$M		Dec 06 %			Jun 06 %
Home loans (incl securitisation)		161,406		150,834		144,834		7			11
Consumer finance (1)		10,809		10,602		10,640		2			2
Total Assets — Australian Retail products		172,215		161,436		155,474		7			11
Home loans (net of securitisation)		145,773		140,080		132,227		4			10
Transaction deposits		18,980		18,323		16,993		4			12
Savings deposits		39,349		37,898		36,176		4			9
Other demand deposits		38,754		37,710		35,893		3			8
Deposits not bearing interest		2,599		2,930		2,362		(11	)		10
Total Liabilities — Australian Retail products		99,682		96,861		91,424		3			9

(1) Consumer Finance includes personal loans and credit cards.

CBA Home Loan Approvals by State	CBA Home Loan Balances by State

Profit Announcement     11

Banking Analysis Continued

Business, Corporate and Institutional

The Business, Corporate and Institutional product segment delivered underlying net profit after tax of $1,529 million, an increase of 24% on the prior year. Included in the current year is a $55 million after tax profit on the sale of the Group’s share in Greater Energy Alliance Corporation Pty Limited (“Loy Yang”). Excluding this amount, profit increased 19% on the prior year.

Business Review

Business Banking is one of the Group’s strategic priorities with the aspiration to be widely regarded as the Business Banking partner of choice. Good progress was made over the past year against this objective, with performance highlights including:

• Opening of eight new Business Banking Centres and recruitment of 72 new sales people in the first year of a three year expansion program, targeting 25 new sites and 270 new sales people in total by the end of the third year;

• Re-introduction of Business Bankers into branches, with 135 recruited and 85 operating within the branch network after completing a rigorous induction and training program;

• Launch of 24 hour, 7 days per week, 365 days per year remote customer service centre for local business customers supported by a new team of 78 Local Business Banking Associates. Local Business Banking Online was also launched, providing new ways for our customers to interact with us and each other;

• Launch of Agriline, a dedicated customer service centre for our rural customers, supported by a new team of 23 Agriline Associates. In addition, 30 additional Agribusiness sales people were recruited as part of an expansion in rural banking; and

• Launch of CommBiz, a new transaction banking platform for businesses of all sizes from institutional and corporate clients to small business customers. Over 10,000 customers have already migrated from legacy platforms since its launch in December 2006.

Institutional Banking continued to have strong momentum, achieving above market growth rates. This has been achieved through a focus on integrated debt and equity capital management, financial and commodity risk management and transaction banking, combined with key competencies in growth industries.

Global Markets and Treasury has undertaken an investment in people and technology to provide a platform for future growth opportunities. The Global Markets and Treasury team ended the year at number one on the Australian debt capital markets ranking and has substantially increased the Australian equity capital markets ranking following a number of key equity deals completed during the year.

CommSec maintained its position as Australia’s number one broker platform by volume and benefited from strong market conditions, with a new monthly volume record set in June 2007 of 1.1 million trades. Other highlights included CommSec winning the Lead Manager role for the Platinum Asset Management initial public offering and the launch of CommSec Self Managed Super Fund.

Corporate Banking

Corporate Banking includes commercial and corporate transaction services and merchant acquiring.

This line of business achieved income growth of 10% on the prior year following balance growth in the newly introduced Business Online Saver product and strong growth across higher margin commercial and corporate Current Accounts. Cash rate increases in the first half also contributed to the income growth.

Financial Markets

Financial Markets includes financial markets and wholesale operations, treasury, equities broking (including CommSec) and structured products, capital markets services (including IPOs and placements) and margin lending.

Financial markets income has increased 14% on the prior year following continued favourable trading conditions and increased customer flows. Growth in investment markets has resulted in record CommSec trading volumes and margin lending balances have increased 40% on the prior year.

Lending and Finance

Lending and Finance includes asset finance, structured finance and general business lending.

Lending and Finance income increased by 21% on the prior year. This includes the impact of the pre-tax gain on sale of the Bank’s share in Greater Energy Alliance Corporation Pty Limited (“Loy Yang”) during the year of $79 million.

Lending and Finance assets have increased $11 billion or 11% on the prior year. The increase has been driven by continued growth in the Australian and New Zealand syndicated loan market and in structured finance transactions.

Operating Expenses

Operating expenses of $1,741 million represented 10% growth compared to the prior year. This was driven by general salary increases and higher employee numbers. In addition, the Group significantly increased investment to support the strategic expansion of the Business Banking and Financial Markets activities. Productivity gains contributed to further improvements in the expense to income ratio, which fell from 47.1% in the prior year to 45.0%.

Loan Impairment Expense

Loan impairment expense for the full year was $7 million higher than the prior year at $75 million. This was due to an increase in our assessment of portfolio risk and specific provisions related to the corporate middle market segment in the current half, which drove a $35 million increase in loan impairment expense on the prior half.

Market Share

Business lending market share to non-financial corporations, as measured by APRA, has increased by 30 basis points since 30 June 2006 to 12.4%.

Asset finance market share has decreased by 130 basis points to 13.2% since 30 June 2006. The decline reflects the maturity of this business segment, which has been characterised by aggressive price competition coupled with competitor expansion. Business deposit market share of non-financial corporations, as measured by APRA, has increased by 110 basis points since 30 June 2006 to 13.0%.

Market Share Percentage (1)	30/06/07		31/12/06		30/06/06
Business lending — APRA		12.4		12.5		12.1
Business lending — RBA (2)		12.9		13.0		13.2
Asset finance		13.2		13.9		14.5
Business deposits — APRA		13.0		12.0		11.9
Equities trading (CommSec) (2)		4.4		4.4		4.3

(1)	For market share definitions refer to appendix 24, page 68.
(2)	Prior period comparatives have been revised.

12      Commonwealth Bank of Australia

Banking Analysis Continued

Business, Corporate and Institutional ⁽¹⁾

	Full Year to June 2007
	Net		Other			Total				Loan		Underlying
	Interest		Banking			Banking		Expenses		Impairment		Profit after
	Income $M		Income $M			Income $M		$M(2)		$M		Tax $M
Corporate Banking		555		366			921
Financial Markets		500		803			1,303
Lending and Finance		1,005		636			1,641
Business, Corporate and Institutional products		2,060		1,805			3,865		1,741		75		1,529
Hedging and AIFRS volatility (excluded from above)		135		(132	)		3						2

	Full Year to June 2006
	Net		Other			Total					Loan		Underlying
	Interest		Banking			Banking			Expenses		Impairment		Profit after
	Income $M		Income $M			Income $M			$M(2)		$M		Tax $M
Corporate Banking		496		344			840
Financial Markets		440		708			1,148
Lending and Finance		870		491			1,361
Business, Corporate and Institutional products		1,806		1,543			3,349			1,577		68		1,236
Hedging and AIFRS volatility (excluded from above)		46		(104	)		(58	)						(41	)

	Half Year to June 2007
	Net		Other			Total				Loan		Underlying
	Interest		Banking			Banking		Expenses		Impairment		Profit after
	Income $M		Income $M			Income $M		$M(2)		$M		Tax $M
Corporate Banking		281		179			460
Financial Markets		291		393			684
Lending and Finance		510		313			823
Business, Corporate and Institutional products		1,082		885			1,967		908		55		767
Hedging and AIFRS volatility (excluded from above)		106		(105	)		1						1

(1)	The components of the three Business, Corporate and Institutional product segments have been rearranged during the current year, in order to align with the wider divisional restructure which was undertaken during the year as part of a re-focus on customer service. Prior periods have been restated on a consistent basis.
(2)	During the current period the methodology for overhead cost allocation has been refined. Prior periods have been restated on a consistent basis.

	As At
	30/06/07		31/12/06		30/06/06		Jun 07 vs		Jun 07 vs
Major Balance Sheet Items (gross of impairment)	$M		$M		$M		Dec 06 %		Jun 06 %
Interest earning lending assets		80,464		74,029		66,343		9		21
Bank acceptances of customers		18,721		18,395		18,310		2		2
Non lending interest earning assets		41,530		41,723		35,471		—		17
Margin loans		8,070		6,542		5,758		23		40
Other assets (1)		25,842		19,486		19,947		33		30
Total Assets (2)		174,627		160,175		145,829		9		20
Transaction deposits		21,578		16,648		16,426		30		31
Other demand deposits		29,347		26,162		23,641		12		24
Deposits not bearing interest		4,084		3,686		3,520		11		16
Certificates of deposits and other		25,573		24,923		20,178		3		27
Due to other financial institutions		14,199		12,390		11,333		15		25
Liabilities at fair value through Income Statement		4,228		3,783		2,085		12	large
Debt issues		84,556		82,381		77,848		3		9
Loan Capital		9,818		9,724		9,744		1		1
Other non interest bearing liabilities (1)		43,317		36,805		36,703		18		18
Total Liabilities (2)		236,700		216,502		201,478		9		17
Balance Sheet by Product Segment(3)
Assets
Corporate Banking		2,762		2,669		1,061		3	large
Financial Markets		49,137		40,800		36,228		20		36
Lending and Finance		115,446		112,713		104,086		2		11
Other (2)		7,282		3,993		4,454		82		63
Total Assets		174,627		160,175		145,829		9		20
Liabilities
Corporate Banking		46,359		39,953		37,375		16		24
Financial Markets		58,580		51,376		40,838		14		43
Lending and Finance		29,542		27,655		27,303		7		8
Other (2)		102,219		97,518		95,962		5		7
Total Liabilities		236,700		216,502		201,478		9		17

(1)	Other assets include intangible assets and derivative assets, and Other non interest bearing liabilities include derivative liabilities.
(2)	Includes Group Funding, Balance Sheet Management and other capital not directly attributed to the product based segments above.
(3)	During the current year, reclassifications of balance sheet amounts between product segments were made to align with the wider divisional restructure. Prior periods have been restated on a consistent basis.

Profit Announcement     13

Banking Analysis Continued

Asia Pacific

Asia Pacific Banking incorporates the Group’s retail, business, commercial, rural and treasury banking operations in New Zealand, Fiji, Indonesia and China.

Underlying net profit after tax for Asia Pacific businesses increased 10% to $390 million⁽¹⁾ compared to the prior year. ASB Bank in New Zealand represents the majority of the business.

During the year, the accounting impacts arising from the application of “AASB 139 Financial Instruments: Recognition and Measurement” resulted in a gain of $85 million (before tax) within Total banking income. This impact, referred to as “Hedging and AIFRS volatility” was driven by:

• Mark to market accounting gains on economic hedges which do not qualify for AIFRS hedge accounting and hedge ineffectiveness of $117 million; offset by

• Accounting losses on the economic hedge of New Zealand operations due to the difference between hedged currency rate and actual rate of $32 million.

These accounting gains and losses are not reflective of the underlying economic reality, as all exposures are fully hedged within risk limits.

ASB Bank

The New Zealand banking industry continued to be very competitive during 2007, characterised by aggressive pricing particularly on home loans. Against this challenging background ASB Bank achieved statutory net profit after tax growth in New Zealand Dollar terms of 8% (excluding the impact of AIFRS hedge accounting).

This result was driven by:

• Strong asset growth represented by total lending balances increasing by NZD 6,170 million or 16% over the prior year including a 14% increase in home lending volumes;

• Solid growth in retail deposits of 16% to NZD 24.5 billion, mainly due to a 23% increase in FastSaver, BusinessSaver and Term Investment balances;

• Margin contraction for the year of ten basis points, most of which occurred during the first half, with margins declining only three basis points in the second half. The majority of this was driven by tightening home loan margins and changes in product mix such as the re-weighting of the deposits portfolio towards higher interest rate savings products; and

• Continued low impairment losses.

Other performance highlights included:

• Continued achievement of a market leading position in customer satisfaction rates among the major banks;

• Broadening access for customers to banking services with internet and telephone banking supplemented by banking updates to mobiles phones and 20 branches now operating seven days a week;

• Winner of the TUANZ Business Internet eCommerce Financial Services award in recognition of the ASB Fastnet Classic online banking service;

• ASB Group was appointed one of the default providers for the Kiwisaver Retirement scheme which was launched by the NZ government to encourage employees to save consistently during their working lives; and

• For the fifth consecutive year, ASB Bank was recognised as New Zealand’s “Bank of the Year” by the UK based Banker Magazine.

Underlying net profit after tax increased 6% in the second half to $193 million⁽¹⁾. This result reflects continued strong lending growth, stabilisation of margins and the strengthening of the New Zealand Dollar.

Other Asia Pacific Business

The highlights in this region during the year were:

• Acquisition of an 83% stake in Arta Niaga Kencana (Bank ANK) in Surabaya region of Indonesia adding 20 branches;

• Continued branch expansion in PT Bank Commonwealth in Indonesia with four new branches added during the year;

• Increasing the Group’s investment in Hangzhou City Commercial Bank to maintain 19.9% equity stake following an investment by the Asian Development Bank; and

• The launch of a new customer website “Moving to Australia?” in five different languages to make opening a bank account even easier for overseas customers moving to or doing business in Australia.

Loan Impairment Expense

Total loan impairment expense for the Asia Pacific region was $18 million, which is in line with the prior year. The current half expense increased by $8 million, due to some deterioration in both retail and corporate portfolios in New Zealand.

Market Share

Home loan market share in New Zealand remained stable throughout the year at 23.1% as at 30 June 2007.

Retail deposit market share in New Zealand increased 90 basis points during the year to 21.2% as at 30 June 2007.

Market Share Percentage (2)	30/06/07		31/12/06		30/06/06
NZ lending for housing		23.1		23.1		23.1
NZ retail deposits		21.2		20.7		20.3

(1)	Represents Group Management view for the product segment rather than statutory view, excluding the impact of Hedging and AIFRS volatility.
(2)	For market share definitions refer to appendix 24, page 68.

14      Commonwealth Bank of Australia

Banking Analysis Continued

	Full Year to June 2007
	Net			Other		Total				Loan		Underlying
	Interest			Banking		Banking		Expenses		Impairment		Profit after
Asia Pacific (1)	Income $M			Income $M		Income $M		$M(2)		$M		Tax $M
ASB Bank		732			285		1,017
Other		32			33		65
Asia Pacific		764			318		1,082		515		18		390
Hedging and AIFRS volatility (excluded from above)		(28	)		113		85						59

	Full Year to June 2006
	Net		Other		Total				Loan		Underlying
	Interest		Banking		Banking		Expenses		Impairment		Profit after
	Income $M		Income $M		Income $M		$M(2)		$M		Tax $M
ASB Bank		680		291		971
Other		42		29		71
Asia Pacific		722		320		1,042		509		20		356
Hedging and AIFRS volatility (excluded from above)		—		25		25						17

	Half Year to June 2007
	Net			Other		Total				Loan		Underlying
	Interest			Banking		Banking		Expenses		Impairment		Profit after
	Income $M			Income $M		Income $M		$M(2)		$M		Tax $M
ASB Bank		386			137		523
Other		16			12		28
Asia Pacific		402			149		551		255		13		201
Hedging and AIFRS volatility (excluded from above)		(28	)		149		121						85

(1) During the current period the impact of AIFRS derivative hedging has been excluded from the Asia Pacific total and is disclosed separately above. Prior periods have been restated on a consistent basis.

	As At
Major Balance Items (gross of impairment) (1)	30/06/07		31/12/06		30/06/06		Jun 07 vs		Jun 07 vs
	$M		$M		$M		Dec 06 %		Jun 06 %
Home lending		28,931		25,887		22,287		12		30
Other lending assets		11,332		11,279		10,531		—		8
Non lending interest earning assets		8,023		6,938		4,812		16		67
Other assets		1,965		1,535		1,321		28		49
Total Assets — Asia Pacific		50,251		45,639		38,951		10		29
Debt issues		935		180		744	large			26
Deposits (1)		23,094		21,038		18,040		10		28
Liabilities at fair value through the Income Statement		15,203		14,204		11,727		7		30
Other liabilities		1,853		1,414		772		31	large
Total Liabilities — Asia Pacific		41,085		36,836		31,283		12		31
Balance Sheet by Segment
Assets
ASB Bank		47,995		43,379		36,724		11		31
Other		2,256		2,260		2,227		—		1
Total Assets — Asia Pacific		50,251		45,639		38,951		10		29
Liabilities
ASB Bank		38,926		34,885		29,306		12		33
Other		2,159		1,951		1,977		11		9
Total Liabilities — Asia Pacific		41,085		36,836		31,283		12		31

(1) Asia Pacific Deposits exclude deposits held in other overseas countries (30 June 2007: $5 billion, 31 December 2006: $6 billion and 30 June 2006: $5 billion).

Profit Announcement     15

Funds Management Analysis

Financial Performance and Business Review

Performance Highlights

Underlying net profit after tax increased 23% over the year to $492 million for the Funds Management business reflecting continued strong revenue growth across the business.

The underlying net profit after tax result for the second half of the year increased 12% on the prior half to $260 million driven by continued growth in the funds management business and strong investment performance.

Funds Under Administration increased 17% to $177 billion as at 30 June 2007.

Business Review

Industry conditions have been positive with strong investment markets and retail flows underpinning growth over the year.

Net fund flows for the year ended 30 June 2007 of $1.8 billion were impacted by the disengagement of a major client from the Avanteos platform. Excluding Avanteos, net funds flow for the year was over $7 billion, most of which occurred in the second half.

The drivers of this strong underlying net funds flow for the year were:

• Investors taking advantage of superannuation legislation changes which contributed to $9.2 billion FirstChoice net flows for the year ended 30 June 2007. With over $39 billion in funds under administration, FirstChoice has experienced growth of 51% in the last 12 months; and

• Solid institutional flows generated by the CFS Global Asset Management business.

During the year, a goodwill impairment of $40 million was recognised in relation to Avanteos.

Other key developments within the business include:

• CFS Global Asset Management ongoing expansion into alternative asset classes and developing infrastructure capabilities both domestically and in Europe;

• CFS Global Asset Management is the joint lead partner in a consortium which acquired AWG plc, an infrastructure company which provides water services in the UK. As at 30 June 2007 13% of the Group’s interest in AWG plc had been sold down to infrastructure funds;

• CFS Global Asset Management, through its joint venture First State Media Group, acquired a major music copyright catalogue in May 2007. The purchase will be the foundation asset for a media focused investment fund to be launched later in the calendar year;

• CFS Global Asset Management launched the First State Cinda Leaders Growth Equity Fund with joint venture partners China Cinda Asset Management;

• New products launched by CFS during the year include a fully integrated margin lending solution, and 12 new investment options on the FirstChoice platform;

• Commonwealth Financial Planner numbers increased during the year by 68 to 702. The first adviser training program was completed in early 2007 with 42 graduates and the second program commenced in February 2007 with 27 entrants. During the year referrals increased by 15%; and

• CFS Global Asset Management incubated or launched in excess of 18 new products globally during the year, including long/short funds, new fixed interest products, Asian and Global Property Securities products for international distribution, and a range of institutional multi-asset products.

Investment Performance

Investment performance has been solid with 74% of funds outperforming benchmark on a three year basis, and 66% of funds outperforming on a one year basis.

Operating Income

Operating income increased by 21% to $1,883 million for the year underpinned by an 18% increase in average funds under administration and strong investment performance driving an increase in performance fees.

During the second half of the year, Operating income increased by 10% to $985 million. This result was due to an 8% increase in average funds under administration on the prior half and an increase in margins.

Margins increased three basis points over the year due to growth in higher margin asset classes, performance fees and improved distribution margins partially offset by the general trend toward the lower margin platform offering.

Operating Expenses

Volume expenses, which predominately comprise external distribution and trail commissions, increased by 27% over the year which is in line with growth in Funds Under Administration and underlying growth and mix of retail and wholesale inflows.

Operating expenses increased by 16% on the prior year to $890 million. The key drivers of expense growth include:

• Investment in the international expansion of the CFS Global Asset Management business;

• Establishment of competitive remuneration schemes in the asset management business to attract and retain high quality talent;

• Increased spend on strategic projects including the Wealth Management cross-sell initiative and new product development (eg. margin lending facility); and

• Investment on system simplification initiatives.

Despite significant investment in the expansion of CFS Global Asset Management, the expense to net operating income ratio decreased from 57.6% to 55.7% over the year.

Taxation

The corporate tax expense for the year was $232 million, representing an effective tax rate of 32.1% compared with 28.4% for the prior year. The increase in the effective tax rate is due to one-off permanent tax differences. As previously disclosed, the prior year included a tax benefit from the recognition of international losses not previously brought to account.

Market Share ⁽¹⁾

In the latest Plan for Life market share statistics, the Group is ranked 1^st in total Australian retail market share at 14.2%. The Australian retail market share has been impacted by the disengagement of a major client from the Avanteos platform. FirstChoice increased its share of the Platform market to 8.5%.

	30/06/07		31/12/06		30/06/06
Australian retail (2) (3)		14.2		15.4		15.4
New Zealand retail (2)		15.8		16.1		16.0
Firstchoice platform (2) (3)		8.5		8.2		7.7

(1)	For market share definitions refer to appendix 24, page 68.
(2)	Prior period comparatives have been restated.
(3)	As at 30 March 2007.

16     Commonwealth Bank of Australia

Funds Management Analysis continued

	Full Year Ended							Half Year Ended
	30/06/07		30/06/06		Jun 07 vs			30/06/07		31/12/06		Jun 07 vs
Key Performance Indicators	$M		$M		Jun 06 %			$M		$M		Dec 06 %
Operating income – external		1,874		1,543		21			981		893		10
Operating income – internal		9		9		—			4		5		(20	)
Total operating income		1,883		1,552		21			985		898		10
Shareholder investment returns		14		14		—			10		4	large
Funds management income		1,897		1,566		21			995		902		10
Volume expense		285		224		(27	)		141		144		2
Operating expenses		890		765		(16	)		467		423		(10	)
Total operating expenses		1,175		989		(19	)		608		567		(7	)
Net profit before income tax (“cash basis”)		722		577		25			387		335		16
Net profit before income tax (“underlying basis”) (1)		708		563		26			377		331		14
Corporate tax expense (2)		232		164		(41	)		132		100		(32	)
Minority interests		—		3	large				—		—		—
Net profit after income tax (“cash basis”)		490		410		20			255		235		9
Net profit after income tax (“underlying basis”) (1)		492		400		23			260		232		12

(1)	Underlying basis excludes shareholder investment returns.
(2)	For purpose of presentation, Policyholder tax benefit and Policyholder tax expense are shown on a net basis (2007: $175 million and 2006: $193 million).

	Full Year Ended							Half Year Ended
	30/06/07		30/06/06		Jun 07 vs			30/06/07			31/12/06		Jun 07 vs
Funds Under Administration	$M		$M		June 06 %			$M			$M		Dec 06 %
Funds Under Administration – average		164,404		139,082		18			171,264			158,010		8
Funds Under Administration – spot		177,071		151,513		17			177,071			167,662		6
Funds under management – spot		139,685		118,682		18			139,685			128,312		9
Net funds flows (excluding Avanteos)		7,126		5,287		35			5,744			1,382	large
Net funds flows		1,763		10,830		(84	)		(313	)		2,076	large

	Full Year Ended						Half Year Ended
	30/06/07		30/06/06		Jun 07 vs		30/06/07		31/12/06		Jun 07 vs
Productivity and Other Measures	%		%		Jun 06 %		%		%		Dec 06 %
Operating income to average Funds Under Administration (%)		1.15		1.12	3bpts		1.16		1.13		3bpts
Total expenses to average Funds Under Administration (%)		0.71		0.71		—		0.72		0.71		(1	)
Operating expenses to net operating income (total operating income less volume expenses)		55.7		57.6		3		55.3		56.1		1
Effective corporate tax rate (%)		32.1		28.4	(370)bpts			34.1		29.9	(420)bpts

Underlying Net Profit After Tax growth of 23% on the prior year

Profit Announcement     17

Funds Management Analysis continued

	Full Year Ended 30 June 2007
	Opening										Investment		Closing
	Balance										Income &		Balance
	30/06/06		Inflows		Outflows			Netflows			Other (5)		30/06/07
Funds Under Administration	$M		$M		$M			$M			$M		$M
FirstChoice		26,177		17,191		(7,995	)		9,196			4,172		39,545
Cash management		3,690		2,066		(2,751	)		(685	)		125		3,130
Legacy products (1)		34,669		2,757		(7,426	)		(4,669	)		4,022		34,022
Retail Products (2)		64,536		22,014		(18,172	)		3,842			8,319		76,697
Other retail (3)		886		412		(257	)		155			575		1,616
Australian retail		65,422		22,426		(18,429	)		3,997			8,894		78,313
Wholesale		29,815		12,902		(10,037	)		2,865			1,789		34,469
Property		13,909		1,014		(2,411	)		(1,397	)		2,331		14,843
Other (4)		3,708		136		(608	)		(472	)		399		3,635
Domestically sourced		112,854		36,478		(31,485	)		4,993			13,413		131,260
Internationally sourced		29,461		15,625		(13,492	)		2,133			8,342		39,936
Funds Under Administration (excl Avanteos)		142,315		52,103		(44,977	)		7,126			21,755		171,196
Avanteos		9,198		2,603		(7,966	)		(5,363	)		2,040		5,875
Total – Funds Under Administration		151,513		54,706		(52,943	)		1,763			23,795		177,071

	Full Year Ended 30 June 2006
	Opening										Investment		Closing
	Balance										Income &		Balance
	30/06/05		Inflows		Outflows			Netflows			Other (5)		30/06/06
Funds Under Administration	$M		$M		$M			$M			$M		$M
FirstChoice		16,128		13,077		(5,287	)		7,790			2,259		26,177
Cash management		4,182		2,417		(3,061	)		(644	)		152		3,690
Legacy products (1)		35,225		3,268		(7,669	)		(4,401	)		3,845		34,669
Retail Products (2)		55,535		18,762		(16,017	)		2,745			6,256		64,536
Other retail (3)		844		182		(235	)		(53	)		95		886
Australian retail		56,379		18,944		(16,252	)		2,692			6,351		65,422
Wholesale		24,894		13,099		(11,810	)		1,289			3,632		29,815
Property		13,456		1,074		(2,144	)		(1,070	)		1,523		13,909
Other (4)		2,886		192		(481	)		(289	)		1,111		3,708
Domestically sourced		97,615		33,309		(30,687	)		2,622			12,617		112,854
Internationally sourced		22,508		12,097		(9,432	)		2,665			4,288		29,461
Funds Under Administration (excl Avanteos)		120,123		45,406		(40,119	)		5,287			16,905		142,315
Avanteos		2,941		6,142		(599	)		5,543			714		9,198
Total – Funds Under Administration		123,064		51,548		(40,718	)		10,830			17,619		151,513

	Half Year Ended 30 June 2007
	Opening										Investment			Closing
	Balance										Income &			Balance
	31/12/06		Inflows		Outflows			Netflows			Other (5)			30/06/07
Funds Under Administration	$M		$M		$M			$M			$M			$M
FirstChoice		31,588		10,913		(4,693	)		6,220			1,737			39,545
Cash management		3,453		1,038		(1,442	)		(404	)		81			3,130
Legacy products (1)		34,976		1,634		(4,388	)		(2,754	)		1,800			34,022
Retail Products (2)		70,017		13,585		(10,523	)		3,062			3,618			76,697
Other retail (3)		1,242		330		(139	)		191			183			1,616
Australian retail		71,259		13,915		(10,662	)		3,253			3,801			78,313
Wholesale		32,892		7,288		(5,507	)		1,781			(204	)		34,469
Property		13,538		450		(551	)		(101	)		1,406			14,843
Other (4)		3,697		81		(336	)		(255	)		193			3,635
Domestically sourced		121,386		21,734		(17,056	)		4,678			5,196			131,260
Internationally sourced		35,087		8,303		(7,237	)		1,066			3,783			39,936
Funds Under Administration (excl Avanteos)		156,473		30,037		(24,293	)		5,744			8,979			171,196
Avanteos		11,189		1,459		(7,516	)		(6,057	)		743			5,875
Total – Funds Under Administration		167,662		31,496		(31,809	)		(313	)		9,722			177,071

(1)	Includes stand alone retail and legacy retail products.
(2)	Retail products (excluding Avanteos) align to Plan for Life market release.
(3)	Includes listed equity trusts and regular premium plans. These retail products are not reported in market share data.
(4)	Includes life company assets sourced from retail investors but not attributable to a funds management product (e.g. premiums from risk products). These amounts do not appear in retail market share data.
(5)	Includes foreign exchange gains and losses from translation of international sourced business.

18     Commonwealth Bank of Australia

Fund Management Analysis continued

Profit Announcement     19

Insurance Analysis

Financial Performance and Business Review

Performance Highlights

Underlying net profit after tax for the Insurance business increased 18% on the prior year to $253 million. This growth rate was impacted by the inclusion of the operating results of the Hong Kong Insurance Business for part of the prior year. Another measure of Insurance business performance is planned profit margins, which increased by 26% on the prior year.

The result was driven by:

• Solid inforce premium growth in Australia and New Zealand;

• Positive claims experience; and

• Increased investment in the business.

Full year net profit after tax (“cash basis”) decreased by 16% to $351 million, impacted by the profit on sale of the Hong Kong Insurance Business of $145 million in the prior year. After adjusting the result for the sale of the Hong Kong Insurance Business, net profit after tax increased by 30%.

Underlying net profit after tax for the half year ended 30 June 2007 was up by 28% on the prior half.

The Group remains the largest life insurer in Australia, New Zealand and Fiji.

Business Review

Australia

Full year underlying net profit after tax for the Australian insurance business increased 28% on the prior year to $160 million.

Net profit after tax (“cash basis”) increased 29% on the prior year to $234 million, reflecting growth in shareholder investment returns over the year together with strong volume growth and improved operating margins.

Key performance drivers were:

• Inforce premium growth of 20%, reflecting strong sales volumes and progress of the cross-sell initiative;

• Improvement in planned life margins and operating margins on the prior year;

• Good claims experience; and

• Strong shareholder investment returns.

Other highlights for the Australian Insurance business included:

• A significant increase in new business over the year particularly in Group Life Risk;

• CommInsure increased its Total risk market share to 14.2% an increase of one percentage point since 30 June 2006;

• The introduction of 130 Branch Insurance Representatives as part of the cross-sell initiative positively impacting on General Insurance sales (30% increase in new business sales);

• Ongoing simplification and rationalisation of systems and processes;

• Launch of online quoting tool for planners aimed at reducing the time and complexity of insurance and annuity quotes to improve conversion rates; and

• Continued good claims management.

New Zealand

The Life Insurance operations in New Zealand operate predominantly under the Sovereign brand.

New Zealand’s net profit after tax (“cash basis”) increased 12% on the prior year to $105 million. The main drivers of this result were:

• Market leading growth in new business sales with Sovereign capturing 33.8% of new business sales market share over the year compared to 32.7% in the prior year;

• A continuation of positive investment returns;

• Low lapse rates on existing business; offset by

• A deterioration in claims experience from 2006 with a higher incidence of disability and term life claims.

The market share of inforce premiums at 30 June 2007 was 31.8%, an increase of 40 basis points over the year.

Operating Income

Operating income increased 10% on the prior year to $817 million. The prior year was impacted by the inclusion of the operating results of the Hong Kong Insurance Business until its sale in October 2005. Excluding this, operating income increased by 17% on the prior year.

Life Insurance income increased 11% to $745 million on the prior year, and by 19% excluding the operating results of the Hong Kong Insurance Business. This reflects strong volume growth and favourable claims experience.

General Insurance income of $72 million was flat compared with the prior year despite strong sales growth. The result was impacted by claims associated with recent NSW storms in the Hunter region which had a greater financial impact than that of Cyclone Larry in the prior year.

Operating Expenses

Total operating expenses of $282 million (excluding volume related expenses) increased 3% on the prior year.

Increases in operating expenses included:

• Increased spend on strategic projects including the Wealth Management cross-selling initiatives;

• Introduction of Branch Insurance Representatives into selected Bank branches;

• Product development across Life and General Insurance lines;

• Investment on system migration and simplification to further reduce the number of insurance systems used and reduce ongoing costs;

• Development costs in preparation for the launch of compulsory savings in New Zealand under the KiwiSaver program; offset by

• Reduction in expenses since the sale of the Hong Kong Insurance Business.

Corporate Taxation

The effective corporate tax rate for the year was 28.1% compared with 27.3% in the prior year.

20     Commonwealth Bank of Australia

Insurance Analysis continued

	Full Year Ended							Half Year Ended
	30/06/07		30/06/06		Jun 07 vs			30/06/07		31/12/06		Jun 07 vs
Key Performance Indicators	$M		$M (4)		Jun 06 %			$M		$M		Dec 06 %
Insurance
Life insurance operating income		745		669		11			406		339		20
General insurance operating income		72		73		(1	)		29		43		(33	)
Total operating income		817		742		10			435		382		14
Shareholder investment returns		135		87		55			54		81		(33	)
Profit on sale of the Hong Kong Insurance Business		—		145		—			—		—		—
Total insurance income		952		974		(2	)		489		463		6
Volume expense		182		181		(1	)		93		89		(4	)
Operating expenses (1)		282		275		(3	)		143		139		(3	)
Total expenses		464		456		(2	)		236		228		(4	)
Net profit before income tax		488		518		(6	)		253		235		8
Corporate tax expense (2)		137		102		(34	)		71		66		(8	)
Net profit after income tax (“cash basis”)		351		416		(16	)		182		169		8
Net profit after income tax (“underlying basis”) (3)		253		215		18			142		111		28

	Full Year Ended						Half Year Ended
	30/06/07		30/06/06		Jun 07 vs		30/06/07		31/12/06		Jun 07 vs
Productivity and Other Measures	%		% (4)		Jun 06 %		%		%		Dec 06 %
Operating income to average inforce premiums (%)		63. 9		62. 9	100 bpts			64. 0		60. 7	330 bpts
Expenses to average inforce premiums (%)		36. 3		38. 6		6		34. 7		36. 2		4
Effective corporate tax rate excluding impact of profit on sale of Hong Kong Insurance Business (%)		28. 1		27. 3	(80)bpts			28. 1		28. 1		—

	Full Year Ended							Half Year Ended
	30/06/07		30/06/06		Jun 07 vs			30/06/07		31/12/06		Jun 07 vs
Sources of Profit from Insurance Activities	$M		$M (4)		Jun 06 %			$M		$M		Dec 06 %
The Margin on Services profit from ordinary activities after income tax is represented by:
Planned profit margins		184		146		26			90		94		(4	)
Experience variations		56		48		17			49		7		large
General insurance operating margins		13		21		(38	)		3		10		(70	)
Operating margins		253		215		18			142		111		28
After tax shareholder investment returns		98		56		75			40		58		(31	)
Profit on sale of the Hong Kong Insurance Business		—		145		—			—		—		—
Net profit after income tax (“cash basis”)		351		416		(16	)		182		169		8

(1)	Operating expenses include $9 million internal expenses relating to the asset management of shareholder funds (30 June 2006: $9 million).
(2)	For purpose of presentation, Policyholder tax benefit and Policyholder tax expense components of corporate tax expense are shown on a net basis (30 June 2007: $91 million, 30 June 2006: $138 million).
(3)	Underlying basis excludes shareholder investment returns and the profit on the sale of the Hong Kong Insurance Business.
(4)	Includes impact of the operating performance of the Hong Kong Insurance Business until its sale in October 2005. Financial impact was set out on page 55 of the 30 June 2006 Profit Announcement.

Geographical Analysis of Business Performance

	Full Year Ended
	Australia				New Zealand				Asia					Total
Net Profit after	30/06/07		30/06/06		30/06/07		30/06/06		30/06/07		30/06/06			30/06/07		30/06/06
Income Tax (“cash basis”)	$M		$M		$M		$M		$M		$M			$M		$M
Operating margins		160		125		88		77		5		13			253		215
After tax shareholder investment returns		74		56		17		17		7		(17	)		98		56
Profit on sale of Hong Kong Insurance Business		—		—		—		—		—		145			—		145
Net profit after income tax		234		181		105		94		12		141			351		416

	Half Year Ended
	Australia				New Zealand				Asia				Total
Net Profit after Income Tax	30/06/07		31/12/06		30/06/07		31/12/06		30/06/07		31/12/06		30/06/07		31/12/06
(“cash basis”)	$M		$M		$M		$M		$M		$M		$M		$M
Operating margins		92		68		47		41		3		2		142		111
After tax shareholder investment returns		27		47		8		9		5		2		40		58
Net profit after income tax		119		115		55		50		8		4		182		169

Profit Announcement      21

Insurance Analysis continued

	Full Year Ended 30 June 2007
	Opening									Closing
	Balance		Sales/New					Other		Balance
	30/06/06		Balances		Lapses			Movements (2)		30/06/07
Annual Inforce Premiums (1)	$M		$M		$M			$M		$M
General insurance (3)		169		55		(40	)		—		184
Personal life		732		153		(87	)		34		832
Group life		255		206		(79	)		2		384
Total		1,156		414		(206	)		36		1,400
Australia		854		359		(192	)		—		1,021
New Zealand		302		55		(14	)		36		379
Total		1,156		414		(206	)		36		1,400

	Full Year Ended 30 June 2006
	Opening										Closing
	Balance		Sales/New					Other			Balance
	30/06/05		Balances		Lapses			Movements (2)			30/06/06
Annual Inforce Premiums (1)	$M		$M		$M			$M			$M
General insurance (3)		154		49		(34	)		—			169
Personal life		785		137		(81	)		(109	)		732
Group life		265		71		(48	)		(33	)		255
Total		1,204		257		(163	)		(142	)		1,156
Australia		795		210		(151	)		—			854
New Zealand		296		47		(12	)		(29	)		302
Asia (4)		113		—		—			(113	)		—
Total		1,204		257		(163	)		(142	)		1,156

	Half Year Ended 30 June 2007
	Opening									Closing
	Balance		Sales/New					Other		Balance
	31/12/06		Balances		Lapses			Movements (2)		30/06/07
Annual Inforce Premiums (1)	$M		$M		$M			$M		$M
General insurance (3)		179		26		(21	)		—		184
Personal life		789		79		(43	)		7		832
Group life		372		70		(58	)		—		384
Total		1,340		175		(122	)		7		1,400
Australia		988		148		(115	)		—		1,021
New Zealand		352		27		(7	)		7		379
Total		1,340		175		(122	)		7		1,400

(1)	Inforce premium relates to risk business. Savings products are disclosed within Funds Management.
(2)	Includes foreign exchange movements.
(3)	In the current period the basis of calculating General insurance inforce premiums was amended, the main change being the exclusion of badged premiums. Prior periods have been restated on a consistent basis.
(4)	Other movements for Asia in the year ended 30 June 2006 represent the sale of the Hong Kong Insurance Business.

Inforce Premiums

Inforce premiums increased by 21% on the prior year. This was achieved through consistent growth in both Australia and New Zealand. General Insurance premiums increased by 9% on the year.

Market Share Percentage – Annual Inforce Premiums (1)	30/06/07		31/12/06		30/06/06
Australia (total risk) (2) (3)		14. 2		14. 4		13.2
Australia (individual risk) (2) (3)		12. 7		12. 7		12.3
New Zealand		31. 8		31. 5		31.4

(1)	For market share definitions refer to appendix 24, page 68.
(2)	As at 31 March 2007.
(3)	Prior period comparatives have been revised.

22      Commonwealth Bank of Australia

Shareholder Investment Returns

	Full Year Ended							Half Year Ended
	30/06/07		30/06/06		Jun 07 vs			30/06/07		31/12/06		Jun 07 vs
Shareholder Investment Returns	$M		$M		Jun 06 %			$M		$M		Dec 06 %
Funds management business		14		14		—			10		4		large
Insurance business (1)		135		87		55			54		81		(33	)
Shareholder investment returns before tax		149		101		48			64		85		(25	)
Profit on sale of Hong Kong Insurance Business		—		145		—			—		—		—
Taxation		53		35		(51	)		29		24		(21	)
Shareholder investment returns after tax		96		211		(55	)		35		61		(43	)

(1) Excluding profit on sale of the Hong Kong Insurance Business.

Shareholder investment returns of $149 million before tax was driven by strong positive returns across all asset classes.

	As At 30 June 2007
	Australia		New Zealand		Asia		Total
Shareholder Investment Asset Mix (%)	%		%		%		%
Local equities		1		1		—		1
International equities		—		1		20		1
Property		26		—		29		20
Sub-total		27		2		49		22
Fixed interest		29		52		50		35
Cash		44		46		1		43
Sub-total		73		98		51		78
Total		100		100		100		100

	As At 30 June 2007
	Australia		New Zealand		Asia		Total
Shareholder Investment Asset Mix ($M)	$M		$M		$M		$M
Local equities		7		2		—		9
International equities		—		6		17		23
Property		368		1		25		394
Sub-total		375		9		42		426
Fixed interest		400		242		43		685
Cash		620		214		1		835
Sub-total		1,020		456		44		1,520
Total		1,395		465		86		1,946

Profit Announcement      23

Financial Statements

Consolidated Income Statement
For the year ended 30 June 2007

	Full Year Ended								Half Year Ended
			30/06/07			30/06/06			30/06/07			31/12/06
	Appendix		$M			$M			$M			$M
Interest income		1		23,862			19,758			12,297			11,565
Interest expense		1		16,826			13,244			8,746			8,080
Net interest income		1		7,036			6,514			3,551			3,485
Other operating income		5		3,341			3,036			1,729			1,612
Net banking operating income				10,377			9,550			5,280			5,097
Funds management income				1,871			1,589			966			905
Investment revenue				2,120			2,098			928			1,192
Claims and policyholder liability expense				(2,020	)		(2,064	)		(858	)		(1,162	)
Net funds management operating income				1,971			1,623			1,036			935
Premiums from insurance contracts		11		1,117			1,052			540			577
Investment revenue		11		858			1,031			385			473
Claims and policyholder liability expense from insurance contracts				(932	)		(970	)		(391	)		(541	)
Insurance margin on services operating income				1,043			1,113			534			509
Total net operating income				13,391			12,286			6,850			6,541
Loan impairment expense				434			398			239			195
Operating expenses		6		6,427			5,994			3,283			3,144
Defined benefit superannuation plan income/(expense)		7		8			(35	)		3			5
Net profit before income tax		7		6,538			5,859			3,331			3,207
Corporate tax expense		7		1,775			1,569			910			865
Policyholder tax expense				266			331			128			138
Net profit after income tax		11		4,497			3,959			2,293			2,204
Minority interests		11		(27	)		(31	)		(14	)		(13	)
Net profit attributable to Equity holders of the Bank		11		4,470			3,928			2,279			2,191

	Full Year Ended				Half Year Ended
	30/06/07		30/06/06		30/06/07		31/12/06
	Cents per share
Earnings per share:
Statutory Basic		344.7		308.2		175.1		169.6
Statutory Diluted		339.7		303.1		172.5		166.0
Dividends per share attributable to shareholders of the Bank:
Ordinary shares		256		224		149		107
Trust preferred securities (TPS) — issued 8 March 2006		7,821		—		3,835		3,986

	Full Year Ended						Half Year Ended
	30/06/07			30/06/06			30/06/07			31/12/06
	$M			$M			$M			$M
Net profit after income tax comprises:
Net profit after income tax (“underlying basis”)		4,508			3,842			2,298			2,210
Shareholder investment returns (after tax)		96			66			35			61
Profit on sale of the Hong Kong Insurance Business		—			145			—			—
Net profit after income tax (“cash basis”)		4,604			4,053			2,333			2,271
Defined benefit superannuation plan income/(expense)		5			(25	)		1			4
Treasury shares valuation adjustment		(75	)		(100	)		(37	)		(38	)
One-off AIFRS mismatches		(64	)		—			(18	)		(46	)
Net profit after income tax (“statutory basis”)		4,470			3,928			2,279			2,191

24      Commonwealth Bank of Australia

Financial Statements continued

Consolidated Balance Sheet
As at 30 June 2007

	As At
			30/06/07		31/12/06		30/06/06
Assets	Appendix		$M		$M		$M
Cash and liquid assets (1)				10,108		9,139		5,868
Receivables due from other financial institutions				5,495		5,686		7,107
Assets at fair value through Income Statement:
Trading				21,469		18,887		15,758
Insurance				23,519		24,520		24,437
Other (1)				4,073		3,305		2,207
Derivative assets				12,743		10,519		9,675
Available for sale investments				9,672		11,434		11,203
Loans, advances and other receivables		8		299,779		277,962		259,176
Bank acceptances of customers				18,721		18,395		18,310
Investment property				—		273		258
Property, plant and equipment				1,436		1,325		1,313
Investment in associates				836		216		190
Intangible assets		16		7,835		7,846		7,809
Deferred tax assets				922		638		650
Other assets				7,157		5,846		5,141
				423,765		395,991		369,102
Assets held for sale				1,374		1,270		1
Total assets				425,139		397,261		369,103

		As At
		30/06/07		31/12/06		30/60/06
Liabilities		$M		$M		$M
Deposits and other public borrowings	10		203,382		188,819		173,227
Payables due to other financial institutions			14,386		12,432		11,184
Liabilities at fair value through Income Statement			19,431		17,986		13,811
Derivative liabilities			16,680		13,238		10,820
Bank acceptances			18,721		18,395		18,310
Current tax liabilities			882		685		378
Deferred tax liabilities			1,576		1,384		1,336
Other provisions			878		826		821
Insurance policy liabilities	15		21,613		22,729		22,225
Debt issues			85,490		82,561		78,591
Managed funds units on issue			310		438		1,109
Bills payable and other liabilities			7,346		5,379		6,053
			390,695		364,872		337,865
Loan capital			10,000		9,902		9,895
Total liabilities			400,695		374,774		347,760
Net assets			24,444		22,487		21,343

		As At
		30/06/07		31/12/06		30/06/06
Shareholders’ Equity		$M		$M		$M
Share capital:
Ordinary share capital	14		14,483		13,920		13,505
Other equity instruments			939		939		939
Reserves			2,143		1,979		1,904
Retained profits	18		6,367		5,141		4,487
Shareholders’ equity attributable to Equity holders of the Bank			23,932		21,979		20,835
Minority interests:
Controlled entities			512		508		508
Total Shareholders’ equity			24,444		22,487		21,343

(1) During the current year, certain ASB Bank overnight settlement account balances were reclassified from Assets at fair value through Income Statement to Cash and liquid assets. Prior periods have been restated on a consistent basis.

Profit Announcement      25

Financial Statements continued

Consolidated Statement of Cash Flows ⁽¹⁾
For the year ended 30 June 2007

	Full Year Ended
				30/06/07			30/06/06
	Appendix			$M			$M
Cash Flows from Operating Activities
Interest received					23,123			19,712
Interest paid					(16,405	)		(12,555	)
Other operating income received					4,627			4,319
Expenses paid					(5,699	)		(5,813	)
Income taxes paid					(1,942	)		(1,980	)
Net (increase)/decrease in assets at fair value through Income Statement (excluding life insurance)					(1,715	)		(307	)
Life insurance:
Investment income					2,296			2,399
Premiums received (2)					2,431			2,338
Policy payments (2)					(5,346	)		(4,938	)
Net increase/(decrease) in liabilities at fair value through Income Statement (excluding life insurance)					5,722			1,445
Cash flows from operating activities before changes in operating assets and liabilities					7,092			4,620
Changes in operating assets and liabilities arising from cash flow movements
Movement in available-for-sale investments:
Purchases					(22,214	)		(28,189	)
Proceeds from sale					728			646
Proceeds at or close to maturity					21,891			24,831
Lodgement of deposits with regulatory authorities					(8	)		(29	)
Net (increase) in loans, advances and other receivables					(37,885	)		(31,996	)
Net (increase)/decrease in receivables due from other financial institutions not at call					833			(881	)
Net decrease in securities purchased under agreements to resell					(1,647	)		537
Life insurance business:
Purchase of insurance assets at fair value through Income Statement					(8,476	)		(8,078	)
Proceeds from sale/maturity of insurance assets at fair value through Income Statement					8,842			9,398
Net increase in deposits and other borrowings					26,361			12,799
Net proceeds from issuance of debt securities					6,316			14,605
Net increase in payables due to other financial institutions not at call					1,865			2,571
Net increase/(decrease) in securities sold under agreements to repurchase					1,943			328
Changes in operating assets and liabilities arising from cash flow movements					(1,451	)		(3,458	)
Net cash provided by/(used in) operating activities		19	(a)		5,641			1,162
Cash Flows from Investing Activities
Payment for acquisition of entities and management rights		19	(e)		(7	)		(414	)
Proceeds from disposal of controlled entities		19	(c)		—			553
Proceeds from disposal of entities and businesses (net of cash disposals)					16			35
Dividends received					3			4
Proceeds from sale of property, plant and equipment					53			32
Purchases of property, plant and equipment					(314	)		(385	)
Payment for acquisition of investments in associates/joint ventures					(6	)		(152	)
Purchase of assets held for sale					(1,091	)		—
Purchases of intangible assets					(130	)		(90	)
Net decrease in other assets					(800	)		31
Net cash (used in)/provided by investing activities					(2,276	)		(386	)

(1)	It should be noted that the Group does not use this accounting Statement of Cash Flows in the internal management of its liquidity positions.
(2)	These were gross premiums and policy payments before splitting between policyholders and shareholders.

26     Commonwealth Bank of Australia

Financial Statements continued

Consolidated Statement of Cash Flows ⁽¹⁾ (continued)
For the year ended 30 June 2007

	Full Year Ended
				30/06/07			30/06/06
	Appendix			$M			$M
Cash Flows from Financing Activities
Buy-back of shares					—			(500	)
Proceeds from issue of shares (net of costs)					19			49
Proceeds from issue of other equity instruments (net of costs)					—			939
Dividends paid (excluding Dividend Reinvestment Plan)					(2,284	)		(2,163	)
Net movement in other liabilities					219			139
Net sale/(purchase) of treasury shares					55			(10	)
Issue of loan capital					1,865			2,446
Redemption of loan capital					(965	)		(915	)
Other					(228	)		1
Net cash (used in)/provided by financing activities					(1,319	)		(14	)
Net increase/(decrease) in cash and cash equivalents					2,046			762
Cash and cash equivalents at beginning of period					2,038			1,276
Cash and cash equivalents at end of period		19	(b)		4,084			2,038

(1) It should be noted that the Group does not use this accounting Statement of Cash Flows in the internal management of its liquidity positions.

Profit Announcement      27

Appendices

1 Net Interest Income	29
2 Net Interest Margin	29
3 Average Balances and Related Interest	30
4 Interest Rate and Volume Analysis	34
5 Other Banking Operating Income	36
6 Operating Expenses	36
7 Income Tax Expense	38
8 Loans, Advances and Other Receivables	39
9 Asset Quality	40
10 Deposits and Other Public Borrowings	42
11 Financial Reporting by Segments	43
12 Integrated Risk Management	45
13 Capital Adequacy	47
14 Share Capital	51
15 Life Insurance Business	52
16 Intangible Assets	54
17 ASB Bank Group – Statutory View	55
18 ASX Appendix 4E Statement	56
19 Notes to the Statement of Cash Flows	59
20 Analysis Template	60
21 Summary	65
22 Foreign Exchange Rates	66
23 Definitions	67
24 Market Share Definitions	68

28      Commonwealth Bank of Australia

Appendices

1. Net Interest Income

	Full Year Ended							Half Year Ended
	30/06/07		30/06/06		Jun 07 vs			30/06/07		31/12/06		Jun 07 vs
	$M		$M		Jun 06 %			$M		$M		Dec 06 %
Interest Income
Loans		20,778		17,304		20			10,765		10,013		8
Other financial institutions		470		333		41			226		244		(7	)
Cash and liquid assets (1)		419		287		46			243		176		38
Assets at fair value through Income Statement (1)		1,470		1,149		28			721		749		(4	)
Available-for-sale investments		725		685		6			342		383		(11	)
Total interest income		23,862		19,758		21			12,297		11,565		6
Interest Expense
Deposits (1)		9,027		7,385		(22	)		4,722		4,305		(10	)
Other financial institutions		674		475		(42	)		341		333		(2	)
Liabilities at fair value through Income Statement (1)		1,229		1,013		(21	)		677		552		(23	)
Debt issues		5,183		3,795		(37	)		2,639		2,544		(4	)
Loan capital (1)		713		576		(24	)		367		346		(6	)
Total interest expense		16,826		13,244		(27	)		8,746		8,080		(8	)
Net interest income		7,036		6,514		8			3,551		3,485		2

(1) During the current year certain balances and associated interest amounts have been reclassified between categories. Further information on the specific nature of each reclassification is provided on pages 30 and 31. Prior periods have been restated on a consistent basis.

2. Net Interest Margin

	Full Year Ended				Half Year Ended
	30/06/07		30/06/06		30/06/07		31/12/06
	%		%		%		%
Australia
Interest spread (1)		2.04		2.21		1.99		2.08
Benefit of interest free liabilities, provisions and equity (2)		0.26		0.24		0.28		0.26
Net interest margin (3)		2.30		2.45		2.27		2.34
Overseas
Interest spread (1)		0.92		0.97		0.94		0.91
Benefit of interest free liabilities, provisions and equity (2)		0.68		0.67		0.66		0.69
Net interest margin (3)		1.60		1.64		1.60		1.60
Total Bank
Interest spread (1)		1.83		1.98		1.79		1.86
Benefit of interest free liabilities, provisions and equity (2)		0.36		0.36		0.37		0.36
Net interest margin (3)		2.19		2.34		2.16		2.22

(1)	Difference between the average interest rate earned and the average interest rate paid on funds.
(2)	A portion of the Group’s interest earning assets is funded by interest free liabilities and Shareholders’ equity. The benefit to the Group of these interest free funds is the amount it would cost to replace them at the average cost of funds.
(3)	Net interest income divided by average interest earning assets for the year.

Appendices

3. Average Balances and Related Interest

The following table lists the major categories of interest earning assets and interest bearing liabilities of the Group together with the respective interest earned or paid and the average interest rate for each of the years ending 30 June 2007 and 30 June 2006 together with the half years ending 30 June 2007, 31 December 2006 and 30 June 2006. Averages used were predominantly daily averages. Interest is accounted for based on product yield, while all trading gains and losses are disclosed as Trading income within Other banking income.

Where assets or liabilities are hedged, the amounts are shown net of the hedge, however individual items not separately hedged may be affected by movements in exchange rates.

The overseas component comprises overseas branches of the Bank and overseas domiciled controlled entities.

Non-accrual loans were included in interest earning assets under Loans, advances and other receivables.

The official cash rate in Australia increased by 50 basis points during the year while rates in New Zealand increased by a total of 75 basis points.

In the current year, certain interest income and expense items have been reallocated across the average Balance Sheet line items to better reflect the underlying changes in yield. This reallocation is necessary due to the impact of AIFRS hedge accounting and financial instrument reclassifications. The average Balance Sheet for the year ended 30 June 2006 has been restated on a consistent basis.

Average Balances

	Full Year Ended 30/06/07						Full Year Ended 30/06/06
	Avg Bal		Income		Yield		Avg Bal		Income		Yield
Interest Earning Assets	$M		$M		%		$M		$M		%
Home loans excluding securitisation		162,894		11,671		7.16		147,710		9,988		6.76
Personal (1)		18,213		1,942		10.66		16,174		1,753		10.84
Business and corporate		84,970		6,156		7.24		68,739		4,798		6.98
Loans, advances and other receivables		266,077		19,769		7.43		232,623		16,539		7.11
Cash and other liquid assets (2)		15,898		889		5.59		12,046		620		5.15
Assets at fair value through Income Statement (excluding life insurance) (2)		21,484		1,470		6.84		18,611		1,149		6.17
Available-for-sale investments		12,589		725		5.76		11,518		685		5.95
Non lending interest earning assets		49,971		3,084		6.17		42,175		2,454		5.82
Total interest earning assets (excluding securitisation) (3)		316,048		22,853		7.23		274,798		18,993		6.91
Securitisation home loan assets		13,344		1,009		7.56		10,887		765		7.03
Non interest earning assets		67,117						67,729
Total Average Assets		396,509						353,414

	Full Year Ended 30/06/07						Full Year Ended 30/06/06
	Avg Bal		Income		Yield		Avg Bal		Income		Yield
Interest Bearing Liabilities	$M		$M		%		$M		$M		%
Transaction deposits (4) (5)		35,991		1,049		2.91		32,206		798		2.48
Savings deposits (4) (5)		46,990		2,089		4.45		41,588		1,620		3.90
Investment deposits (5)		73,339		4,352		5.93		66,573		3,625		5.45
Certificates of deposits and other (6) (7)		24,425		1,537		6.29		19,700		1,342		6.81
Total Interest Bearing Deposits		180,745		9,027		4.99		160,067		7,385		4.61
Payable due to other financial Institutions		12,351		674		5.46		9,631		475		4.93
Liabilities at fair value through Income Statement (5)		18,051		1,229		6.81		15,304		1,013		6.62
Debt issues		73,380		4,289		5.84		60,918		3,124		5.13
Loan Capital (7)		10,265		713		6.95		9,180		576		6.27
Total Interest Bearing Liabilities		294,792		15,932		5.40		255,100		12,573		4.93
Securitisation debt issues		13,861		894		6.45		11,541		671		5.81
Non interest bearing liabilities		65,098						64,780
Total Average Liabilities		373,751						331,421

(1)	Personal includes personal loans, credit cards, and margin loans.
(2)	During the current period, certain ASB Bank overnight settlement account balances and associated interest income were reclassified from Assets at fair value through Income Statement to Cash and other liquid assets. Prior periods have been restated on a consistent basis.
(3)	Used for calculating net interest margin.
(4)	As disclosed in the prior half, certain ASB Bank customer account balances and associated interest expense were reclassified from transaction deposits to savings deposits. Prior periods have been restated on a consistent basis.
(5)	During the current period product mapping of certain ASB account balances and associated interest expense were amended to align more closely with the Bank. Prior periods have been restated on a consistent basis.
(6)	Comparisons between reporting periods are impacted by hedge accounting.
(7)	During the current period, the impact on yield of economic hedges of loan capital has been reclassified to Certificates of deposits and other category. Prior periods have been restated on a consistent basis.

30   Commonwealth Bank of Australia

Appendices

3. Average Balances and Related Interest (continued)

Average Balances

	Half Year Ended 30/06/07						Half Year Ended 31/12/06						Half Year Ended 30/06/06
	Avg Bal		Income		Yield		Avg Bal		Income		Yield		Avg Bal		Income		Yield
Interest Earning Assets	$M		$M		%		$M		$M		%		$M		$M		%
Home loans excluding securitisation		165,434		5,976		7.28		160,395		5,695		7.04		150,588		5,063		6.78
Personal (1)		18,862		995		10.64		17,574		947		10.69		16,475		885		10.83
Business and corporate		88,755		3,224		7.33		81,248		2,932		7.16		72,565		2,468		6.86
Loans, Advances and Other Receivables		273,051		10,195		7.53		259,217		9,574		7.33		239,628		8,416		7.08
Cash and other liquid assets (2)		17,115		469		5.53		14,701		420		5.67		12,988		337		5.23
Assets at fair value through Income
Statement (ex life insurance) (2)		22,263		721		6.53		20,717		749		7.17		18,553		613		6.66
Available-for-sale investments		12,951		342		5.33		12,233		383		6.21		11,384		341		6.04
Non Lending Interest Earning Assets		52,329		1,532		5.90		47,651		1,552		6.46		42,925		1,291		6.06
Total interest earning assets (excluding securitisation) (3)		325,380		11,727		7.27		306,868		11,126		7.19		282,553		9,707		6.93
Securitisation home loan assets		15,069		570		7.63		11,647		439		7.48		11,775		413		7.07
Non interest earning assets		66,672						67,555						67,847
Total Average Assets		407,121						386,070						362,175

	Half Year Ended 30/06/07						Half Year Ended 31/12/06						Half Year Ended 30/06/06
	Avg Bal		Income		Yield		Avg Bal		Income		Yield		Avg Bal		Income		Yield
Interest Bearing Liabilities	$M		$M		%		$M		$M		%		$M		$M		%
Transaction deposits (4) (5)		37,204		593		3.21		34,798		456		2.60		31,483		360		2.31
Savings deposits (4) (5)		48,551		1,107		4.60		45,454		982		4.29		43,796		897		4.13
Investment deposits (5)		75,559		2,248		6.00		71,155		2,104		5.87		68,226		1,823		5.39
Certificates of deposits and other (6) (7)		26,052		774		5.99		22,825		763		6.63		19,901		685		6.94
Total Interest Bearing Deposits		187,366		4,722		5.08		174,232		4,305		4.90		163,406		3,765		4.65
Payable due to other financial Institutions		12,691		341		5.42		12,017		333		5.50		10,290		262		5.13
Liabilities at fair value through Income
Statement (5)		20,254		677		6.74		15,884		552		6.89		15,529		530		6.88
Debt issues		72,361		2,131		5.94		74,382		2,158		5.76		64,193		1,655		5.20
Loan Capital (7)		10,499		367		7.05		10,033		346		6.84		9,785		293		6.04
Total Interest Bearing Liabilities		303,171		8,238		5.48		286,548		7,694		5.33		263,203		6,505		4.98
Securitisation debt issues		15,954		508		6.42		11,802		386		6.49		11,856		356		6.06
Non interest bearing liabilities		64,596						65,594						64,393
Total Average Liabilities		383,721						363,944						339,452

(1)	Personal includes personal loans, credit cards, and margin loans.
(2)	During the current period, certain ASB Bank overnight settlement account balances and associated interest income were reclassified from Assets at fair value through Income Statement to Cash and other liquid assets. Prior periods have been restated on a consistent basis.
(3)	Used for calculating net interest margin.
(4)	As disclosed in the prior half, certain ASB Bank customer account balances and associated interest expense were reclassified from transaction deposits to savings deposits. Prior periods have been restated on a consistent basis.
(5)	During the current period, product mapping of certain ASB account balances and associated interest expense were amended to align more closely with the Bank. Prior periods have been restated on a consistent basis.
(6)	Comparisons between reporting periods are impacted by hedge accounting.
(7)	During the current period, the impact on yield of economic hedges of loan capital has been reclassified to Certificates of deposits and other category. Prior periods have been restated on a consistent basis.

Profit Announcement      31

Appendices

3. Average Balances and Related Interest (continued)

	Full Year Ended 30/06/07						Full Year Ended 30/06/06
	Avg Bal		Income		Yield		Avg Bal		Income		Yield
Net Interest Margin	$M		$M		%		$M		$M		%
Total interest earning assets excluding securitisation		316,048		22,853		7.23		274,798		18,993		6.91
Total interest bearing liabilities excluding securitisation		294,792		15,932		5.40		255,100		12,573		4.93
Net interest income & interest spread (excluding securitisation)				6,921		1.83				6,420		1.98
Benefit of free funds						0.36						0.36
Net interest margin						2.19						2.34

Geographical analysis of key categories

	Full Year Ended 30/06/07							Full Year Ended 30/06/06
	Avg Bal		Income		Yield		Avg Bal		Income		Yield
Loans, Advances and Other Receivables	$M		$M		%		$M		$M		%
Australia		217,128		16,066		7.40		192,086		13,527		7.04
Overseas		48,949		3,703		7.57		40,537		3,012		7.43
Total		266,077		19,769		7.43		232,623		16,539		7.11
Non Lending Interest Earning Assets
Australia		30,008		1,855		6.18		24,123		1,462		6.06
Overseas		19,963		1,229		6.16		18,052		992		5.50
Total		49,971		3,084		6.17		42,175		2,454		5.82
Total Interest Bearing Deposits(1)
Australia		154,073		7,415		4.81		137,101		6,041		4.41
Overseas		26,672		1,612		6.04		22,966		1,344		5.85
Total		180,745		9,027		4.99		160,067		7,385		4.61
Other Interest Bearing Liabilities
Australia		72,269		4,413		6.11		58,271		3,308		5.68
Overseas		41,778		2,492		5.96		36,762		1,880		5.11
Total		114,047		6,905		6.05		95,033		5,188		5.46

(1) Comparisons between reporting periods are impacted by hedge accounting.

The overseas component comprises overseas branches of the Bank and overseas domiciled controlled entities. Overseas intragroup borrowings have been adjusted into the interest spread and margin calculations to more appropriately reflect the overseas cost of funds. Non–accrual loans were included in interest earning assets under loans, advances and other receivables.

In calculating net interest margin, assets, liabilities, interest income and interest expense related to securitisation vehicles have been excluded. This has been done to more accurately reflect the Group’s underlying net margin.

32      Commonwealth Bank of Australia

3. Average Balances and Related Interest (continued)

	Half Year Ended 30/06/07						Half Year Ended 31/12/06						Half Year Ended 30/06/06
	Avg Bal		Income		Yield		Avg Bal		Income		Yield		Avg Bal		Income		Yield
Net Interest Margin	$M		$M		%		$M		$M		%		$M		$M		%
Total interest earning assets excluding securitisation		325,380		11,727		7.27		306,868		11,126		7.19		282,553		9,707		6.93
Total interest bearing liabilities excluding securitisation		303,171		8,238		5.48		286,548		7,694		5.33		263,203		6,505		4.98
Net interest income & interest spread (excluding securitisation)				3,489		1.79				3,432		1.86				3,202		1.95
Benefit of free funds						0.37						0.36						0.34
Net interest margin						2.16						2.22						2.29

Geographical analysis of key categories

	Half Year Ended 30/06/07						Half Year Ended 31/12/06						Half Year Ended 30/06/06
	Avg Bal		Income		Yield		Avg Bal		Income		Yield		Avg Bal		Income		Yield
Loans, Advances and Other Receivables	$M		$M		%		$M		$M		%		$M		$M		%
Australia		221,731		8,253		7.51		212,600		7,813		7.29		197,262		6,810		6.96
Overseas		51,320		1,942		7.63		46,617		1,761		7.49		42,366		1,606		7.64
Total		273,051		10,195		7.53		259,217		9,574		7.33		239,628		8,416		7.08
Non Lending Interest Earning Assets
Australia		31,872		895		5.66		28,174		960		6.76		24,695		754		6.16
Overseas		20,457		637		6.28		19,477		592		6.03		18,230		537		5.94
Total		52,329		1,532		5.90		47,651		1,552		6.46		42,925		1,291		6.06
Total Interest Bearing Deposits(1)
Australia		159,818		3,879		4.89		148,422		3,536		4.73		140,037		3,046		4.39
Overseas		27,548		843		6.17		25,810		769		5.91		23,369		719		6.20
Total		187,366		4,722		5.08		174,232		4,305		4.90		163,406		3,765		4.65
Other Interest Bearing Liabilities
Australia		71,933		2,227		6.24		72,598		2,186		5.97		60,216		1,693		5.67
Overseas		43,872		1,289		5.92		39,718		1,203		6.01		39,581		1,047		5.33
Total		115,805		3,516		6.12		112,316		3,389		5.99		99,797		2,740		5.54

(1) Comparisons between reporting periods are impacted by hedge accounting.

The overseas component comprises overseas branches of the Bank and overseas domiciled controlled entities. Overseas intragroup borrowings have been adjusted into the interest spread and margin calculations to more appropriately reflect the overseas cost of funds. Non–accrual loans were included in interest earning assets under loans, advances and other receivables.

In calculating net interest margin, assets, liabilities, interest income and interest expense related to securitisation vehicles have been excluded. This has been done to more accurately reflect the Group’s underlying net margin.

Profit Announcement      33

4. Interest Rate and Volume Analysis

	Full Year Ended Jun 07 vs Jun 06							Full Year Ended Jun 06 vs Jun 05
	Volume		Rate			Total		Volume			Rate			Total
Interest Earning Assets	$M		$M			$M		$M			$M			$M
Home loans		1,057		626			1,683		1,047			172			1,219
Personal		219		(30	)		189		167			45			212
Business and Corporate		1,154		203			1,358		685			174			859
Loans, advances and other receivables		2,432		798			3,230		1,910			380			2,290
Cash and other liquid assets		207		62			269		48			145			193
Assets at fair value through Income Statement (excluding life insurance)		187		134			321		182			182			364
Investment securities		—		—			—		(362	)		(361	)		(723	)
Available-for-sale investments		63		(23	)		40		343			342			685
Non lending interest earning assets		467		163			630		156			363			519
Total interest earning assets		2,917		943			3,860		2,035			774			2,809
Securitisation home loan assets		179		65			244		162			6			168

	Full Year Ended Jun 07 vs Jun 06							Full Year Ended Jun 06 vs Jun 05
	Volume		Rate			Total		Volume			Rate			Total
Interest Bearing Liabilities	$M		$M			$M		$M			$M			$M
Transaction deposits		102		149			251		10			18			28
Savings deposits		225		244			469		122			224			346
Investment deposits		385		342			727		141			(134	)		7
Certificates of deposits and other		310		(115	)		195		(375	)		316			(59	)
Total interest bearing deposits		993		649			1,642		9			313			322
Payable due to other financial institutions		141		58			199		66			152			218
Liabilities at fair value through Income Statement		184		32			216		507			506			1,013
Debt issues		684		481			1,165		481			86			567
Loan capital		72		65			137		168			57			225
Total interest bearing liabilities		2,051		1,308			3,359		1,396			949			2,345
Securitised debt issues		142		81			223		91			53			144

	Full Year Ended
		Jun 07 vs Jun 06
	Increase/(Decrease)
Change in Net Interest Income	$M
Due to changes in average volume of interest earning assets and interest bearing liabilities			934
Due to changes in interest margin			(433	)
Due to variation in time period			—
Change in net interest income			501

“Volume” reflects the change in net interest income over the period due to balance growth (assuming rates held constant), and “Rate” reflects the change due to movements in yield (assuming volumes were held constant). “Variation in time periods” only applies to reporting periods of differing lengths (e.g. between half years). The volume and rate variances for total interest earning assets and liabilities have been calculated separately (rather than being the sum of the individual categories).

	Full Year Ended Jun 07 vs Jun 06						Full Year Ended Jun 06 vs Jun 05
	Volume		Rate		Total		Volume			Rate			Total
Geographical analysis of key categories	$M		$M		$M		SM			$M			$M
Loans, Advances and Other Receivables
Australia		1,808		731		2,539		1,453			252			1,705
Overseas		631		60		691		462			123			585
Total		2,432		798		3,230		1,910			380			2,290
Non Lending Interest Earning Assets
Australia		360		33		393		118			206			324
Overseas		111		126		237		40			155			195
Total		467		163		630		156			363			519
Total Interest Bearing Deposits
Australia		782		592		1,374		115			504			619
Overseas		220		48		268		(156	)		(141	)		(297	)
Total		993		649		1,642		9			313			322
Other Interest Bearing Liabilities
Australia		825		280		1,105		931			(89	)		842
Overseas		278		334		612		531			650			1,181
Total		1,095		622		1,717		1,505			518			2,023

34      Commonwealth Bank of Australia

4. Interest Rate and Volume Analysis (continued)

	Half Year Ended Jun 07 vs Dec 06								Half Year Ended Jun 07 vs Jun 06
	Volume		Rate			Total			Volume		Rate			Total
Interest Earning Assets	$M		$M			$M			$M		$M			$M
Home loans		180		101			281			518		395			913
Personal		69		(21	)		48			127		(17	)		110
Business and corporate		272		20			292			569		187			756
Loans, advances and other receivables		514		107			621			1,211		568			1,779
Cash and other liquid assets		68		(19	)		49			110		22			132
Assets at fair value through Income Statement (excluding life insurance)		53		(81	)		(28	)		121		(13	)		108
Available-for-sale investments		21		(62	)		(41	)		44		(43	)		1
Non lending interest earning assets		145		(165	)		(20	)		279		(38	)		241
Total interest earning assets		669		(68	)		601			1,507		513			2,020
Securitisation home loan assets		129		2			131			120		37			157

	Half Year Ended Jun 07 vs Dec 06									Half Year Ended Jun 07 vs Jun 06
	Volume			Rate			Total			Volume		Rate			Total
Interest Bearing Liabilities	$M			$M			$M			$M		$M			$M
Transaction deposits		35			102			137			78		155			233
Savings deposits		69			56			125			103		107			210
Investment deposits		131			13			144			207		218			425
Certificates of deposits and other		102			(91	)		11			197		(108	)		89
Total interest bearing deposits		328			89			417			578		379			957
Payable due to other financial institutions		18			(10	)		8			63		16			79
Liabilities at fair value through Income Statement		149			(24	)		125			160		(13	)		147
Debt issues		(59	)		32			(27	)		226		250			476
Loan capital		16			5			21			23		51			74
Total interest bearing liabilities		449			95			544			1,037		696			1,733
Securitised debt issues		134			(12	)		122			127		25			152

	Half Year Ended
	Jun 07 vs Dec 06			Jun 07 vs Jun 06
	Increase/(Decrease)			Increase/ (Decrease)
Change in Net Interest Income	$M			$M
Due to changes in average volume of interest earning assets and interest bearing liabilities		201			472
Due to changes in interest margin		(88	)		(185	)
Due to variation in time period		(56	)		—
Change in net interest income		57			287

	Half Year Ended Jun 07 vs Dec 06									Half Year Ended Jun 07 vs Jun 06
	Volume			Rate			Total			Volume		Rate			Total
Geographical analysis of key categories	$M			$M			$M			SM		$M			$M
Loans, Advances and Other
Australia		338			102			440			878		565			1,443
Overseas		178			3			181			339		(3	)		336
Total		514			107			621			1,211		568			1,779
Non Lending Interest Earning Assets
Australia		115			(180	)		(65	)		210		(69	)		141
Overseas		30			15			45			67		33			100
Total		145			(165	)		(20	)		279		(38	)		241
Total Interest Bearing Deposits
Australia		274			69			343			455		378			833
Overseas		52			22			74			128		(4	)		124
Total		328			89			417			578		379			957
Other Interest Bearing Liabilities
Australia		(20	)		61			41			346		188			534
Overseas		124			(38	)		86			120		122			242
Total		106			21			127			463		313			776

These volume and rate analyses were for half year periods. The calculations were based on balances over the half year. The volume and rate variances for total interest earning assets and liabilities have been calculated separately (rather than being the sum of the individual categories).

Profit Announcement      35

Appendices

5. Other Banking Operating Income

	Full Year Ended									Half Year Ended
	30/06/07			30/06/06			Jun 07 vs			30/06/07			31/12/06			Jun 07 vs
	$M			$M			Jun 06 %			$M			$M			Dec 06 %
Lending fees		896			800			12			479			417			15
Commission and other fees		1,729			1,635			6			870			859			1
Trading income		555			505			10			249			306			(19	)
Net gain/(loss) on disposal of non-trading instruments (1)		147			45		large				65			82			(21	)
Dividends		3			4			(25	)		2			1		large
Net (loss)/gain on sale of property, plant and equipment		(15	)		4		large				(11	)		(4	)	large
Other income		136			122			11			56			80			(30	)
		3,451			3,115			11			1,710			1,741			(2	)
Loss on other financial instruments (including non-trading derivatives) (2)		(110	)		(79	)		39			19			(129	)	large
Total other banking operating income		3,341			3,036			10			1,729			1,612			7

(1)

June 2007 half includes $58 million profit on sale Mastercard shares; December 2006 half includes $79 million profit on sale of the Bank’s share in Greater Energy Alliance Corporation Pty Limited (“Loy Yang”). June 2006 includes $32 million profit related to MasterCard IPO.

(2)

June 2007 half includes an accounting loss of $25 million ($18 million after tax) and December 2006 half includes an accounting loss of $66 million ($46 million after tax) due to the unwinding of structured transactions (entered into prior to AIFRS transition) at the request of the counterparties. The offsetting gains were recognised as an adjustment to opening retained earnings on the adoption of AIFRS on 1 July 2005. No economic loss has been incurred by the Group.

Loss on other financial instruments – Hedging and AIFRS volatility

The table below sets out various accounting impacts arising from the application of “AASB 139 Financial Instruments: Recognition and Measurement” to the Group’s derivative hedging activities.

	Full Year Ended						Half Year Ended
	30/06/07			30/06/06			30/06/07			31/12/06
	$M			$M			$M			$M
Reclassification of yield to Other banking income (1)		107			46			78			29
Net interest income		107			46			78			29
Reclassification of yield from Net interest income		(107	)		(46	)		(78	)		(29	)
Hedging and AIFRS volatility (2)		120			(55	)		119			1
Revenue hedge of New Zealand operations (3)		(32	)		22			3			(35	)
Other banking income (“cash basis”)		(19	)		(79	)		44			(63	)
One-off AIFRS hedging mismatches (4)		(91	)		—			(25	)		(66	)
Other banking income (“statutory basis”)		(110	)		(79	)		19			(129	)

(1)	Yield related to certain economic hedges which do not qualify for AIFRS hedge accounting is reclassified from Net interest income to Other banking income.
(2)	Relates to mark to market accounting volatility on economic hedges which do not qualify for hedge accounting, together with hedge ineffectiveness.
(3)	Relates to accounting gains and losses on the hedge of the New Zealand operations.
(4)	Refer to footnote 2 in the table “Other Banking Operating Income” above.

6. Operating Expenses

	Full Year Ended							Half Year Ended
	30/06/07		30/06/06		Jun 07 vs			30/06/07		31/12/06		Jun 07 vs
Expenses by Segment	$M		$M		Jun 06 %			$M		$M		Dec 06 %
Operating expenses
Banking		4,797		4,558		(5	)		2,443		2,354		(4	)
Funds management		1,175		989		(19	)		608		567		(7	)
Insurance		455		447		(2	)		232		223		(4	)
Total		6,427		5,994		(7	)		3,283		3,144		(4	)

	Full Year Ended							Half Year Ended
	30/06/07		30/06/06		Jun 07 vs			30/06/07		31/12/06		Jun 07 vs
Expenses by Category	$M		$M		Jun 06 %			$M		$M		Dec 06 %
Staff		3,229		2,823		(14	)		1,642		1,587		(3	)
Occupancy and equipment		688		621		(11	)		353		335		(5	)
Information technology services		907		985		8			468		439		(7	)
Other expenses		1,603		1,565		(2	)		820		783		(5	)
Total		6,427		5,994		(7	)		3,283		3,144		(4	)

Capitalisation of Computer Software Costs

Capitalised computer software costs (net of amortisation) totalled $297 million as at 30 June 2007 (December 2006: $267 million and June 2006: $229 million). Expenditure in the year principally comprises development of customer focussed systems.

36      Commonwealth Bank of Australia

6. Operating Expenses (continued)

	Full Year Ended				Half Year Ended
	30/06/07		30/06/06		30/06/07		31/12/06
	$M		$M		$M		$M
Staff Expenses
Salaries and wages		2,746		2,419		1,406		1,340
Share based compensation		89		39		33		56
Superannuation contributions		8		8		4		4
Provisions for employee entitlements		61		66		29		32
Payroll tax		139		123		65		74
Fringe benefits tax		34		34		18		16
Other staff expenses		152		134		87		65
Total staff expenses		3,229		2,823		1,642		1,587
Occupancy and Equipment Expenses
Operating lease rentals		367		338		188		179
Depreciation
Buildings		22		22		11		11
Leasehold improvements		59		56		29		30
Equipment		73		64		39		34
Operating lease assets		22		9		9		13
Repairs and maintenance		71		73		39		32
Other		74		59		38		36
Total occupancy and equipment expenses		688		621		353		335
Information Technology Services
Application maintenance and development		304		364		174		130
Data processing		206		227		96		110
Desktop		119		137		60		59
Communications		192		201		95		97
Amortisation of software assets		62		43		32		30
IT equipment depreciation		24		13		11		13
Total information technology services		907		985		468		439
Other Expenses
Postage		109		118		53		56
Stationery		104		98		51		53
Fees and commissions		691		636		375		316
Advertising, marketing and loyalty		326		307		178		148
Amortisation of other intangible assets (excluding software)		8		6		4		4
Non lending losses		97		116		40		57
Other		268		284		119		149
Total other expenses		1,603		1,565		820		783
Total operating expenses		6,427		5,994		3,283		3,144

Profit Announcement      37

Appendices

7. Income Tax Expense

	Full Year Ended						Half Year Ended
	30/06/07			30/06/06			30/06/07			31/12/06
	$M			$M			$M			$M
Profit from Ordinary Activities before Income Tax
Banking		5,146			4,594			2,599			2,547
Funds management		805			643			432			373
Insurance		579			657			297			282
Defined benefit superannuation plan expense		8			(35	)		3			5
		6,538			5,859			3,331			3,207
Prima Facie Income Tax at 30%
Banking		1,544			1,378			779			765
Funds management		241			193			129			112
Insurance		174			197			89			85
Defined benefit superannuation plan expense		3			(11	)		2			1
		1,962			1,757			999			963
Tax effect of expenses that are non-deductible/income non-assessable in determining taxable profit:
Current period
Taxation offsets and other dividend adjustments (1)		(55	)		(57	)		(28	)		(27	)
Tax adjustment referable to policyholder income		186			232			90			96
Non–assessable gains		—			(43	)		—			—
Tax losses recognised		(24	)		(35	)		(20	)		(4	)
Difference in overseas and offshore banking unit (2)		(43	)		(13	)		(21	)		(22	)
Other (1) (2)		35			44			48			(13	)
		99			128			69			30
Prior periods
Other		(20	)		15			(30	)		10
Total income tax expense		2,041			1,900			1,038			1,003
Income Tax Attributable to Profit from Ordinary Activities
Banking		1,423			1,328			709			714
Funds management		215			139			130			85
Insurance		137			102			71			66
Corporate tax		1,775			1,569			910			865
Policyholder tax		266			331			128			138
Total income tax expense		2,041			1,900			1,038			1,003
			%			%			%			%
Effective Tax Rate
Total – corporate		28.3			28.4			28.4			28.2
Banking – corporate		27.6			29.1			27.2			28.0
Funds management – corporate		34.1			30.8			37.4			30.1
Insurance – corporate		28.1			19.7			28.1			28.1

(1)	During the current year, exempt and concessionally taxed dividends received by overseas entities have been included in Taxation offsets and other dividend adjustments. Prior periods have been restated on a consistent basis.
(2)	During the current year tax rate differences in foreign jurisdictions and the Australian offshore banking unit have been separately disclosed. Prior periods have been restated on a consistent basis.

New Zealand Subsidiaries

Assessments have been received from the IRD in respect of two structured finance investments in relation to the 2001 and 2002 financial years. Notices of Proposed Adjustment have been received for other similar investments for later years.

The Group is confident that the tax treatment it has adopted for these investments is correct, and any assessments received will be disputed.

38      Commonwealth Bank of Australia

Appendices

8. Loans, Advances and Other Receivables

	30/06/07			31/12/06			30/06/06
	$M			$M			$M
Australia
Overdrafts		2,902			2,272			2,672
Housing loans (includes securitisation)		161,406			150,834			144,834
Credit card outstandings		7,185			7,071			6,997
Lease financing		4,532			4,617			4,924
Bills discounted		3,640			3,303			2,779
Term loans		68,577			62,613			56,950
Redeemable preference share financing		—			—			1
Other lending		1,339			386			597
Other securities		11			4			—
Total Australia		249,592			231,100			219,754
Overseas
Overdrafts		1,605			2,064			2,435
Housing loans		28,931			25,887			22,287
Credit card outstandings		533			518			428
Lease financing		531			329			139
Bills discounted		33			24			7
Term loans		20,027			19,020			15,282
Redeemable preference share financing		1,194			1,194			1,194
Other lending		183			74			8
Other securities		303			480			438
Total Overseas		53,340			49,590			42,218
Gross loans, advances and other receivables		302,932			280,690			261,972
Less:
Provisions for impairment:
Collective provision		(1,034	)		(1,040	)		(1,046	)
Individually assessed provisions against loans and advances		(199	)		(171	)		(171	)
Unearned income:
Term loans		(941	)		(931	)		(934	)
Lease financing		(979	)		(586	)		(645	)
		(3,153	)		(2,728	)		(2,796	)
Net loans, advances and other receivables		299,779			277,962			259,176

Profit Announcement    39

Appendices

9. Asset Quality

	As At
	30/06/07			31/12/06			30/06/06
	$M			$M			$M
Total Impaired Assets
Gross non–accruals		421			338			326
Less individually assessed provisions for impairment		(199	)		(171	)		(171	)
Total net impaired assets		222			167			155
Net impaired assets by geographical segment
Australia		213			159			146
Overseas		9			8			9
Total		222			167			155

	Full Year Ended						Half Year Ended
	30/06/07			30/06/06			30/06/07			31/12/06
	$M			$M			$M			$M
Provisions for impairment Losses
Collective provision
Opening balance		1,046			1,021			1,040			1,046
Total charge against profit and loss for impairment losses		434			398			239			195
Net transfer to individually assessed provisions		(507	)		(440	)		(268	)		(239	)
Transfer from other credit provisions		—			—			(5	)		5
Impairment losses recovered		103			127			48			55
Adjustments for foreign exchange movements and other items		9			(7	)		4			5
		1,085			1,099			1,058			1,067
Impairment losses written off		(51	)		(53	)		(24	)		(27	)
Closing balance		1,034			1,046			1,034			1,040
Individually assessed provisions
Opening balance		171			191			171			171
Change against profit and loss for:
New and increased provisioning		523			468			274			249
Less write–back of provisions no longer required		(16	)		(28	)		(6	)		(10	)
Net transfer from collective provisions		507			440			268			239
Discount unwind to interest income		(6	)		(13	)		(3	)		(3	)
Adjustments for foreign exchange movements and other items		(5	)		(3	)		(1	)		(4	)
Impairment losses		(468	)		(444	)		(236	)		(232	)
Closing balance		199			171			199			171
Total provisions for impairment		1,233			1,217			1,233			1,211
Other credit provisions		23			24			23			19
Total provisions for impairment		1,256			1,241			1,256			1,230

	%		%		%		%
Provision Ratios
Collective provisions as a % of gross loans and acceptances		0.32		0.37		0.32		0.35
Collective provisions as a % of risk weighted assets		0.42		0.48		0.42		0.44
Individually assessed provisions for impairment as a % of gross impaired assets (1)		23.8		24.5		23.8		23.4
Total provisions for impairment losses as a % of gross impaired assets		298.3		380.7		298.3		363.9

(1) Bulk portfolio provisions of $99 million at 30 June 2007 ($92 million at 31 December 2006 and $91 million at 30 June 2006) to cover unsecured personal loans and credit card lending have been deducted from individually assessed provisions to calculate this ratio. These provisions are deducted due to the exclusion of the related assets from gross impaired assets. The related asset amounts are instead included in the 90 days or more past due disclosure.

	Full Year Ended				Half Year Ended
	30/06/07		30/06/06		30/06/07		31/12/06
	%		%		%		%
Impaired Asset Ratios
Gross impaired assets as % of risk weighted assets		0.17		0.15		0.17		0.14
Net impaired assets as % of:
Risk weighted assets		0.09		0.07		0.09		0.07
Total shareholders’ equity		0.91		0.73		0.91		0.74

40      Commonwealth Bank of Australia

Appendices

9. Asset Quality (continued)

	Full Year Ended				Half Year Ended
	30/06/07		30/06/06		30/06/07		31/12/06
	$M		$M		$M		$M
Impaired Assets
Total income received		7		11		3		4
Interest income forgone		5		11		2		3

	Full Year Ended						Half Year Ended
	30/06/07			30/06/06			30/6/07			31/12/06
	$M			$M			$M			$M
Movement in Impaired Asset Balances
Gross impaired assets at period beginning		326			395			338			326
New and increased		928			745			527			401
Balances written off		(482	)		(450	)		(241	)		(241	)
Returned to performing or repaid		(351	)		(364	)		(203	)		(148	)
Gross impaired assets at period end		421			326			421			338

The following amounts comprising loans less than $250,000 are reported in accordance with regulatory returns to APRA. They are not classified as impaired assets and therefore not included within the above impaired asset summary.

	As At
	30/06/07		31/12/06		30/06/06
	$M		$M		$M
Loans Accruing but Past Due 90 Days or More (consumer segment)
Housing loans		198		161		155
Other loans		144		133		137
Total		342		294		292

Provisioning Policy

Provisions for impairment are maintained at an amount adequate to cover incurred credit related losses.

The Group first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, and individually or collectively for financial assets that are not individually significant. If there is objective evidence of impairment, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of the expected future cash flows discounted at the financial asset’s original effective interest rate. Short term balances are not discounted.

Profit Announcement     41

Appendices

10. Deposits and Other Public Borrowings

	Half Year Ended
	30/06/07		31/12/06		30/06/06
	$M		$M		$M
Australia
Certificates of deposits		20,165		20,590		18,185
Term deposits		50,888		46,004		43,210
On demand and short-time deposits		93,994		85,691		81,547
Deposits not bearing interest		6,662		6,617		5,872
Securities sold under agreements to repurchase		3,323		2,478		1,380
Total Australia		175,032		161,380		150,194
Overseas
Certificates of deposits		903		2,414		959
Term deposits		16,416		14,987		13,790
On demand and short-term deposits		9,183		8,351		7,088
Deposits not bearing interest		1,818		1,672		1,166
Securities sold under agreements to repurchase		30		15		30
Total Overseas		28,350		27,439		23,033
Total deposits and other public borrowings		203,382		188,819		173,227

42      Commonwealth Bank of Australia

Appendices

11. Financial Reporting by Segments

This note sets out segment reporting in accordance with statutory reporting requirements. Refer to the business analysis at the front of this report for detailed profit and loss accounts by segment.

	Full Year Ended 30 June 2007
Primary Segment				Funds
Business Segments	Banking			Management			Insurance			Total
Income Statement	$M			$M			$M			$M
Interest income		23,862			—			—			23,862
Insurance premium and related revenue		—			—			1,117			1,117
Other income		3,341			3,991			858			8,190
Total revenue		27,203			3,991			1,975			33,169
Interest expense		16,826			—			—			16,826
Segment result before income tax		5,154			805			579			6,538
Income tax expense		(1,423	)		(390	)		(228	)		(2,041	)
Segment result after income tax		3,731			415			351			4,497
Minority interests		(27	)		—			—			(27	)
Segment result after income tax and minority interests		3,704			415			351			4,470
Net profit attributable to Equity holders of the Bank		3,704			415			351			4,470
Non—Cash Expenses
Intangible asset amortisation		69			—			1			70
Loan impairment expense		434			—			—			434
Depreciation		191			3			6			200
Defined benefit superannuation plan (income)/expense		(8	)		—			—			(8	)
Other		60			41			—			101
Balance Sheet
Total assets		397,093			18,237			9,809			425,139
Acquisition of property, plant & equipment, intangibles and other non—current assets		410			2			38			450
Investments in associates		145			680			11			836
Total liabilities		377,467			15,397			7,831			400,695

	Full Year Ended 30 June 2007
Primary Segment				Funds
Business Segments	Banking			Management			Insurance			Total
Income Statement	$M			$M			$M			$M
Interest income		19,758			—			—			19,758
Insurance premium and related revenue		—			—			1,052			1,052
Other income		3,036			3,687			1,031			7,754
Total revenue		22,794			3,687			2,083			28,564
Interest expense		13,244			—			—			13,244
Segment result before income tax		4,559			643			657			5,859
Income tax expense		(1,328	)		(331	)		(241	)		(1,900	)
Segment result after income tax		3,231			312			416			3,959
Minority interest		(28	)		(3	)		—			(31	)
Segment result after income tax and minority interests		3,203			309			416			3,928
Net profit attributable to Equity holders of the Bank		3,203			309			416			3,928
Non—Cash Expenses
Intangible asset amortisation		49			—			—			49
Loan impairment expense		398			—			—			398
Depreciation		157			2			5			164
Defined benefit superannuation plan (income)/expense		35			—			—			35
Other		65			1			—			66
Balance sheet
Total assets		340,254			19,201			9,648			369,103
Acquisition of property, plant & equipment, intangibles and other non—current assets		510			94			8			612
Investments in associates		106			52			32			190
Total liabilities		324,185			16,423			7,152			347,760

Profit Annoucement      43

Appendices

11. Financial Reporting by Segments (continued)

Secondary Segment	Full Year Ended
Geographical Segments	30/06/07				30/06/06
Financial Performance	$M		%		$M		%
Revenue
Australia		26,350		79.5		22,802		79.8
New Zealand		4,517		13.6		4,021		14.1
Other countries (1)		2,302		6.9		1,741		6.1
		33,169		100.0		28,564		100.0
Net profit attributable to Equity holders of the Bank
Australia		3,538		79.2		3,200		81.5
New Zealand		492		11.0		387		9.8
Other countries (1)		440		9.8		341		8.7
		4,470		100.0		3,928		100.0
Assets
Australia		341,588		80.3		304,831		82.6
New Zealand		55,916		13.2		43,318		11.7
Other countries (1)		27,635		6.5		20,954		5.7
		425,139		100.0		369,103		100.0
Acquisition of Property, Plant & Equipment and Intangibles and Other non—current assets
Australia		360		80.0		564		92.2
New Zealand		80		17.8		34		5.5
Other countries (1)		10		2.2		14		2.3
		450		100.0		612		100.0

(1) Other countries were: United Kingdom, United States of America, Japan, Singapore, Malta, Hong Kong, Grand Cayman, Fiji, Indonesia, China and Vietnam.

The geographical segment represents the location in which the transaction was booked.

44     Commonwealth Bank of Australia

Appendices

12. Integrated Risk Management (Excludes Insurance and Funds Management)

The major categories of risk actively managed by the Group include credit risk, liquidity and funding risk, market risk and other operational risks. The 2006 Annual Report pages 29 to 32, Integrated Risk Management, details the major risks managed by a diversified financial institution.

Credit Risk

The Group uses a portfolio approach for the management of its credit risk. A key element is a well diversified portfolio. The Group is using various portfolio management tools to assist in diversifying the credit portfolio.

The commercial portfolio remains well rated and low actual Loan impairment were experienced during the year.

	30/06/07		31/12/06		30/06/06
Industry On Balance Sheet Exposure	%		%		%
Accommodation, cafes and restaurants		1.0		1.0		1.0
Agriculture, forestry and fishing		2.8		2.8		2.8
Communication services		0.2		0.3		0.4
Construction		1.2		1.2		1.4
Cultural and recreational services		0.6		0.5		0.6
Electricity, gas and water supply		1.5		1.5		1.6
Finance and insurance		13.6		13.0		12.2
Government administration and defence		1.1		1.4		1.2
Health and community services		1.8		1.5		1.5
Manufacturing		3.3		3.3		3.1
Mining		1.1		1.2		0.8
Personal and other services		0.7		0.6		0.6
Property and business services		7.9		8.1		8.3
Retail trade		1.9		1.6		1.7
Transport and storage		2.6		2.8		2.5
Wholesale trade		1.2		1.3		1.4
Consumer		57.5		57.9		58.9
		100.0		100.0		100.0

The Group has the bulk of committed exposures concentrated in Australia and New Zealand.

	30/06/07		31/12/06		30/06/06
Regional Credit Exposure	%		%		%
Australia		80.6		81.0		82.6
New Zealand		15.2		14.6		13.6
Europe		2.2		2.1		1.8
Americas		1.0		1.5		1.2
Asia		0.8		0.6		0.6
Other		0.2		0.2		0.2
		100.0		100.0		100.0

	30/06/07		31/12/06		30/06/06
Commercial Portfolio Quality	%		%		%
AAA/AA		30		30		31
A		17		17		20
BBB		20		20		17
Other		33		33		32

As a measure of individually risk rated commercial portfolio exposure (including finance and insurance), the Group has 67% of commercial exposures at investment grade quality.

Profit Annoucement     45

Appendices

12. Integrated Risk Management (continued)

The Group in its daily operations is exposed to a number of market risks which are detailed in the 2006 Annual Report under Integrated Risk Management (pages 29 to 32) and Note 43 Market Risk.

Interest Rate Risk

Interest rate risk in the Balance Sheet is discussed within Note 43 of the 2006 Annual Report.

Next 12 months’ Earnings

The potential impact on net interest earnings of a 1% parallel rate shock and the expected change in price of assets and liabilities held for purposes other than trading is as follows:

	30/06/07		31/12/06		30/06/06
Interest Rate Risk	%		%		%
(expressed as a % of expected next 12 months’ earnings)
Average monthly exposure		1.3		1.2		1.1
High month exposure		2.2		2.2		2.1
Low month exposure		0.4		0.3		0.2

Value at Risk (VaR)

VaR within Financial Markets Trading is discussed in the 2006 Annual Report (page 30 Integrated Risk Management). The following table provides a summary of VaR by type.

In the June 2007 half year, the Group implemented a new methodology for the measurement of credit spread VaR. The new methodology now captures the diversification benefit between credit spread risk and other risk types. Prior periods credit spread risk are reported in undiversified risk.

	Average VaR			Average VaR			Average VaR
	During			During			During
	June 2007			December 2006			June 2006
	Half Year			Half Year			Half Year
VaR Expressed based on 97. 5% confidence	$M			$M			$M
Group
Interest rate risk		3.61			3.08			2.95
Exchange rate risk		0.78			0.54			0.65
Implied volatility risk		0.69			0.57			0.61
Equities risk		0.15			0.14			0.09
Commodities risk		0.65			0.71			1.20
Credit spread risk (1)		4.22			—			—
Diversification benefit (1)		(4.17	)		(1.73	)		(2.24	)
Total general market risk		5.93			3.31			3.26
Undiversified risk (1)		1.60			6.75			6.53
ASB Bank		0.45			0.27			0.30
Total		7.98			10.33			10.09

The 97.5% confidence interval is used internally by management for operational monitoring of traded market risk. The 99.0% confidence interval is shown to enable external comparison.

	Average VaR			Average VaR			Average VaR
	During			During			During
	June 2007			December 2006			June 2006
	Half Year			Half Year			Half Year
VaR Expressed based on 99. 0% confidence	$M			$M			$M
Group
Interest rate risk		4.60			4.07			3.76
Exchange rate risk		0.95			0.72			0.77
Implied volatility risk		0.88			0.74			0.80
Equities risk		0.19			0.18			0.11
Commodities risk		0.81			0.93			1.61
Credit spread risk (1)		6.19			—			—
Diversification benefit (1)		(6.24	)		(2.38	)		(3.03	)
Total general market risk		7.38			4.26			4.02
Undiversified risk (1)		1.72			7.93			7.68
ASB Bank		0.55			0.34			0.40
Total		9.65			12.53			12.10

(1) In the half year to 30 June 2007, the Group implemented a new methodology for the measurement of credit spread VaR. The new methodology now captures the diversification benefit between credit spread risk and other risk types. Prior periods’ credit spread risk are reported in undiversified risk.

46     Commonwealth Bank of Australia

Appendices

13. Capital Adequacy

	30/06/07			31/12/06			30/06/06
Risk-Weighted Capital Ratios	%			%			%
Tier One		7.14			7.06			7.56
Tier Two		3.41			3.49			3.10
Less deductions		(0.79	)		(0.77	)		(1.00	)
Total Capital		9.76			9.78			9.66
Adjusted Common Equity (1)		4.79			4.70			4.50

	30/06/07			31/12/06			30/06/06
Regulatory Capital	$M			$M			$M
Tier One Capital
Shareholders’ Equity		24,444			22,487			21,343
Reverse effect to Shareholders’ Equity of AIFRS transition (2)		—			—			7,183
Reverse effect of AIFRS during the period to 30 June 2006: (2)		-
Purchase/(sale) and vesting of treasury shares		—			—			10
Actuarial (gains) and losses from defined benefit superannuation plans		—			—			(387	)
Realised gains and dividend income on treasury shares held within the Group’s life insurance statutory funds		—			—			(85	)
Cash flow hedge reserve		—			—			(20	)
Employee compensation reserve		—			—			(11	)
General reserve for credit losses		—			—			(92	)
Available-for-sale investments		—			—			(9	)
Defined benefit superannuation plans expense		—			—			25
Treasury shares valuation adjustment		—			—			100
Preference share capital		—			—			(687	)
Issue of hybrid instruments		—			—			1,147
Other		—			—			(6	)
Adjusted Shareholders’ equity		24,444			22,487			28,511
Treasury shares		255			294			—
Estimated reinvestment under Dividend Reinvestment Plan (3)		485			248			303
Irredeemable non-cumulative preference shares (4)		2,535			2,582			—
Eligible loan capital		245			263			281
Deferred fees		97			123			—
Retained earnings (5)		752			752			—
Employee compensation reserve		51			73			—
Cash flow hedge reserve		(440	)		(182	)		—
General reserve for credit losses (after tax)		(350	)		(350	)		—
Available-for-sale investments reserve		35			(38	)		—
Foreign currency translation reserve related to non-consolidated subsidiaries		(8	)		(25	)		160
Asset revaluation reserve		(185	)		(130	)		(131	)
Expected dividend		(1,939	)		(1,380	)		(1,668	)
Goodwill (6)		(7,632	)		(7,579	)		(4,416	)
Intangible component of investment in non—consolidated subsidiaries (6)		—			—			(5,397	)
Minority interests in life insurance statutory funds and other funds		—			—			(1,158	)
Capitalised expenses		(136	)		(100	)		(122	)
Capitalised computer software costs		(297	)		(267	)		—
Equity investments in other companies (7)		(700	)		(820	)		—
Defined benefit superannuation plans surplus (8)		(1,270	)		(1,018	)		—
Deferred tax		(37	)		(39	)		—
Other		(34	)		18			(9	)
Transitional Tier One Capital relief on adoption of AIFRS (9)		1,641			1,641			—
Total Tier One Capital		17,512			16,553			16,354

(1)	Adjusted Common Equity (“ACE”) is one measure considered by Standard & Poor’s in evaluating the Group’s credit rating. The ACE ratio has been calculated in accordance with Standard & Poor’s methodology at 30 June 2007.
(2)	APRA required regulatory capital to continue to be calculated in accordance with AGAAP accounting principles until 1 July 2006. As such, all material changes to capital resulting from the Group adopting AIFRS accounting standards on 1 July 2005 have been reversed from regulatory capital for 2006.
(3)	Based on reinvestment experience related to the Bank’s Dividend Reinvestment Plan and approved by APRA.
(4)	Represents capital instruments classified as debt under AIFRS but approved by APRA as capital instruments.
(5)	Represents the write down in retained earnings upon adoption of AIFRS within the non-consolidated subsidiaries.
(6)	30 June 2007 and 31 December 2006 balances represents total Goodwill and other intangibles (excluding capitalised computer software costs) under AIFRS which is required to be deducted from Tier One Capital. The increase from 30 June 2006 principally represents the intangible component of the carrying value of the life insurance and funds management business which was transferred to Goodwill on adoption of AIFRS.
(7)	Represents the Group’s non-controlling equity interest in a major infrastructure asset.
(8)	In accordance with APRA regulations, the surplus (net of tax) in the Bank’s defined benefit superannuation fund which is included in shareholders’ equity must be deducted from Tier One Capital.
(9)	APRA has granted transitional relief for Tier One and Two Capital (including the value of acquired inforce business of $1,339 million) on adoption of AIFRS, which expires 1 January 2008.

Profit Annoucement      47

Appendices

13. Capital Adequacy (continued)

	30/06/07			31/12/06			30/06/06
Regulatory Capital	$M			$M			$M
Tier Two Capital
Collective provision for impairment losses (1)		1,034			1,040			1,046
Other credit provisions(1)		23			19			—
Fair value credit adjustments(1)		24			31			—
General reserve for credit losses (pre-tax equivalent) (1)		500			500			500
Prudential general reserve for credit losses (1)		1,581			1,590			1,546
Future income tax benefit related to prudential general reserve for credit losses		(474	)		(477	)		(464	)
Asset revaluation reserve (2)		83			59			131
Upper Tier Two note and bond issues		191			212			235
Lower Tier Two note and bond issues (3) (4)		6,922			6,780			5,335
Other		(12	)		(62	)		(58	)
Transitional Tier Two Capital relief on adoption of AIFRS (5)		74			74			—
Total Tier Two Capital		8,365			8,176			6,725
Total Tier One and Tier Two Capital		25,877			24,729			23,079

(1)	Prior to 1 July 2006 APRA required a minimum ratio of 0.5% (after tax) of risk weighted assets which comprised the collective provision for impairment losses and the General Reserve for Credit Losses. From 1 July 2006 there is no longer a minimum regulatory requirement. The Prudential General Reserve for Credit Losses is now comprised of the collective provision for impairment losses, other credit provisions, fair value credit adjustments and a general reserve for credit losses within shareholders’ equity which is an additional amount reserved over and above APRA requirements.
(2)	From 1 July 2006 APRA allows only 45% of the asset revaluation reserve to be included in Tier Two Capital.
(3)	APRA requires these Lower Tier Two note and bond issues to be included as if they were unhedged.
(4)	For regulatory capital purposes, Lower Tier Two note and bond issues are amortised by 20% of the original amount during each of the last four years to maturity.
(5)	APRA has granted transitional relief for Tier One and Two Capital on adoption of AIFRS, which expires 1 January 2008.

	30/06/07			31/12/06			30/06/06
Regulatory Capital	$M			$M			$M
Total Capital before deductions		25,877			24,729			23,079
Deduct:
Investment in non–consolidated subsidiaries (net of intangible component deducted from Tier One Capital):
Shareholders’ net tangible assets in life and funds management businesses		(1,946	)		(2,068	)		(1,902	)
Reverse effect of transition to AIFRS		(592	)		(592	)		(592	)
Capital in other non-consolidated subsidiaries		(836	)		(456	)		(256	)
Value of acquired inforce business (1)		—			—			(1,339	)
Less: non-recourse debt		2,265			2,133			2,077
Funds Management Securities (2)		700			700			—
		(409	)		(283	)		(2,012	)
Value of acquired inforce business (1)		(1,339	)		(1,339	)		—
		(1,748	)		(1,622	)		(2,012	)
Other deductions		(178	)		(166	)		(151	)
Total Capital		23,951			22,941			20,916

(1)	Value of acquired inforce business (excess of market value over net assets), which was transferred to Goodwill upon adoption of AIFRS.
(2)	Funds Management Securities issued September 2006.

	30/06/07			31/12/06			30/06/06
Adjusted Common Equity (1)	$M			$M			$M
Tier One Capital		17,512			16,553			16,354
Add:
Deferred Income Tax		37			39			—
Equity investments in other companies (2)		700			820			—
Deduct:
Eligible loan capital		(245	)		(263	)		(281	)
Other hybrid equity instruments		(3,474	)		(3,522	)		(3,659	)
Minority interest (net of minority interest component deducted from Tier One Capital)		(512	)		(508	)		(508	)
Investment in non–consolidated subsidiaries (net of intangible component deducted from Tier One Capital) (3)		(409	)		(283	)		(2,012	)
Other deductions		(178	)		(166	)		(151	)
Impact upon adoption of AIFRS (4)		(1,641	)		(1,641	)		—
Total Adjusted Common Equity		11,790			11,029			9,743

(1)	Adjusted Common Equity (“ACE”) is one measure considered by Standard & Poor’s in evaluating the Group’s credit rating. The ACE ratio has been calculated in accordance with Standard & Poor’s methodology at 30 June 2007.
(2)	Represents the Bank’s non-controlling interest in a major infrastructure asset.
(3)	Balance at 30 June 2007 and 31 December 2006 excludes $1,339 million associated with excess of market value over net assets which was transferred to goodwill upon adoption of AIFRS.
(4)	Standards and Poor’s calculation of ACE Capital did not allow for any relief upon adoption of AIFRS.

48     Commonwealth Bank of Australia

Appendices

13. Capital Adequacy (continued)

							Risk
	Face Value						Weights		Risk–Weighted Balance
	30/06/07		31/12/06		30/06/06				30/06/07		31/12/06		30/06/06
	$M		$M		$M		%		$M		$M		$M
Risk-Weighted Assets
On Balance Sheet assets
Cash, claims on Reserve Bank of Australia, short term claims on Australian Commonwealth and State Government and Territories, and other zero–weighted assets		27,844		29,442		23,301		0		—		—		—
Claims on OECD Banks and local governments		15,903		14,227		16,742		20		3,181		2,845		3,348
Advances secured by residential property		174,435		170,377		157,962		50		87,217		85,189		78,981
All other assets		129,247		122,858		110,971		100		129,247		122,858		110,971
Total on Balance Sheet assets – credit risk		347,429		336,904		308,976				219,645		210,892		193,300
Total off Balance Sheet exposures – credit risk										21,579		20,032		19,691
Risk-weighted assets – market risk										4,123		3,645		3,447
Total risk-weighted assets (regulatory) (1)										245,347		234,569		216,438

(1) In calculating risk weighted assets in accordance with Standard and Poor’s agreed methodology, the equity investment in other companies (June 2007: $0.7 billion, December 2006: $0.8 billion) is required to be added to regulatory risk weighted assets as this amount is not deducted from ACE Capital. On an unrelated transaction, in December 2006 an amount of $0.8 billion was required to be deducted from risk weighted assets in calculation of the ACE Capital ratio due difference in treatment between Standard and Poor’s and APRA on the treatment of set-off arrangements where they are recognised from a legal and accounting perspective. This difference no longer applies at 30 June 2007. The risk weighted asset balance as used for the purpose of ACE Capital ratio for 2007 is $246,047 million.

Active Capital Management

The Group maintains a strong capital position. The Total Capital Ratio increased from 9.66% at 30 June 2006 to 9.76% at 30 June 2007. The Tier One Capital ratio decreased from 7.56% to 7.14% during the year reflecting the acquisition of a major infrastructure asset in the United Kingdom and growth in Risk Weighted Assets.

During the second half of the financial year both the Total and the Tier One Capital ratios have remained fairly stable.

Risk Weighted Assets increased to $245 billion at 30 June 2007 due to strong growth in lending assets particularly in the business/corporate sector.

In February 2007, the Group’s long term credit rating was upgraded by Standard and Poor’s to ‘AA’ from ‘AA-’ with the short term rating affirmed at ‘A-1+’. Moody’s Investor Services upgraded the Group’s long term rating from ‘Aa3’ to ‘Aa1’ and reaffirmed the short term rating at ‘P-1’ in May 2007.

Adoption of IFRS and Transitional Relief

The Group adopted the Australian equivalent to International Financial Reporting Standards (“AIFRS”) on 1 July 2005. However, APRA required reporting under AGAAP accounting principles to continue for regulatory capital purposes until the introduction of revised prudential standards, which took effect on 1 July 2006.

With the introduction of the revised prudential standards, APRA granted transitional relief in relation to changes to their prudential regulations from 1 July 2006 until 31 December 2007.

Total transitional relief of $1,715 million is comprised of $1,641 million relief for Tier One Capital and $74 million of relief for Upper Tier Two Capital.

Adjusted Common Equity

The Adjusted Common Equity (“ACE”) ratio at 30 June 2007 is 4.79%, an increase from 4.39% at 1 July 2006 (on an AIFRS basis). Standard & Poor’s did not grant any transition relief for the impact of AIFRS adjustments.

Significant Initiatives

The following significant initiatives were undertaken to actively manage the Group’s capital:

Tier One Capital

• Issue of $300 million and $518 million worth of shares in October 2006 and April 2007 respectively to satisfy the Dividend Reinvestment Plan (“DRP”) in respect of the final dividend for 2005/06 and interim dividend for 2006/07. The large increase in shares issued in April 2007 as part of the DRP was primarily as a result of the change in the DRP rules approved by the Board in September 2006.

• In accordance with APRA guidelines, the estimated issue of $485 million of shares to satisfy the DRP in respect of the final dividend for 2006/07. This estimate represents a 25% participation in the DRP in respect of the final dividend.

Tier Two Capital

• Issue of the equivalent of $2,331 million of Lower Tier Two in Capital, including $500 million during the second half of the financial year; offset by

• The call and maturity of the equivalent of $206 million of Tier Two note and bond issues (all in relation to the first half of the financial year);

• Decrease in the value of Tier Two note and bond issues of $467 million resulting from changes in foreign exchange movements (whilst these notes are hedged, the unhedged value is included in the calculation of regulatory capital in accordance with the APRA regulations); and

• The reduction in Tier Two note and bond issues of $71 million due to amortisation.

Other Capital Initiatives

Issue of $700 million hybrid securities, called Funds Management Securities (“FMS”) in September 2006. The coupons on the FMS, and in some cases repayment of capital, will depend on the fees generated by the Australian Funds Management business of the Group. The issue of FMS forms part of the Group’s ongoing commitment to efficient innovative capital management.

Deductions from Total Capital

During the year a decrease in deductions for investment in non-consolidated subsidiaries primarily reflects up-streaming of dividends from the Colonial group of companies.

Profit Announcement     49

Appendices

13. Capital Adequacy (continued)

Life & Funds Management Activities

As required by APRA, the Group’s investment in its life insurance and funds management companies is deducted from regulatory capital to arrive at the Banking Group Capital Ratios. The Group’s insurance and funds management companies held an estimated $738 million excess over regulatory capital requirements at 30 June 2007 in aggregate.

Events Subsequent to Balance Date

On 1 June 2007, the Group announced an offer of Perpetual Exchangeable Resaleable Listed Securities (PERLS IV). The offer raised $1,465 million in July 2007. The issue of PERLS IV forms part of the Group’s capital management strategy, structured to meet APRA’s new regulatory capital requirements for Non-Innovative Residual Tier One Capital, effective January 2008. At 30 June 2007, this would have increased Tier One Capital to 7.72% and Total Capital to 10.35%.

50     Commonwealth Bank of Australia

Appendices

14. Share Capital

	Full Year Ended						Half Year Ended
	30/06/07			30/06/06			30/06/07			31/12/06
Ordinary Share Capital	$M			$M			$M			$M
Opening balance (excluding Treasury Shares deduction)		13,901			13,872			14,214			13,901
Dividend reinvestment plan: Final dividend prior year		300			262			—			300
Dividend reinvestment plan: Interim dividend		518			219			518			—
Share buy-back		—			(500	)		—			—
Exercise of executive options		19			50			6			13
Issue costs		—			(2	)		—			—
Closing balance (excluding Treasury Shares deduction)		14,738			13,901			14,738			14,214
Less Treasury Shares		(255	)		(396	)		(255	)		(294	)
Closing Balance		14,483			13,505			14,483			13,920

	Full Year Ended						Half Year Ended
	30/06/07			30/06/06			30/06/07			31/12/06
Shares on Issue	Number			Number			Number			Number
Opening balance (excluding treasury share deduction)		1,282,904,909			1,280,276,172			1,290,017,862			1,282,904,909
Dividend reinvestment plan issue:								—
2004/2005 Final dividend fully paid ordinary shares at $37.19		—			7,032,857			—			—
2005/2006 Interim dividend fully paid ordinary shares at $43.89		—			4,979,668			—			—
2005/2006 Final dividend fully paid ordinary shares at $45.24		6,638,553			—			—			6,638,553
2006/2007 Interim dividend fully paid ordinary shares at $50.02		10,343,514			—			10,343,514			—
Share buy-back		—			(11,139,988	)		—			—
Exercise under executive option plan		696,400			1,756,200			222,000			474,400
Closing balance (excluding Treasury Shares deduction)		1,300,583,376			1,282,904,909			1,300,583,376			1,290,017,862
Less Treasury Shares		(7,611,744	)		(11,085,258	)		(7,611,744	)		(9,235,153	)
Closing balance		1,292,971,632			1,271,819,651			1,292,971,632			1,280,782,709

Terms and Conditions of Ordinary Share Capital

Ordinary shares have the right to receive dividends as declared and in the event of winding up the Company, to participating in the proceeds from sale of surplus assets in proportion to the number of and amounts paid up on shares held.

A shareholder has one vote on a show of hands and one vote for each fully paid share on a poll. A shareholder may be present at a general meeting in person or by proxy or attorney, and if a body corporate, it may also authorise a representative.

Dividend Franking Account

After fully franking the final dividend to be paid for the year ended 30 June 2007 the amount of credits available, as at 30 June 2007 to frank dividends for subsequent financial years is $559 million (June 2006: nil). This figure is based on the combined franking accounts of the Bank at 30 June 2007, which have been adjusted for franking credits that will arise from the payment of income tax payable on profits for the year ended 30 June 2007, franking debits that will arise from the payment of dividends proposed for the year and franking credits that the Bank may be prevented from distributing in subsequent financial periods. The Bank expects the future tax payments will generate sufficient franking credits for the Bank to be able to fully frank future dividend payments. These calculations have been based on the taxation law as at 30 June 2007.

Dividends

The Directors have declared a fully franked final dividend of 149 cents per share amounting to $1,939 million. The dividend will be payable on 5 October 2007 to shareholders on the register at 5pm on 24 August 2007.

The Board determines the dividends per share based on net profit after tax (“cash basis”) per share, having regard to a range of factors including:

• Current and expected rates of business growth and the mix of business;

• Capital needs to support economic, regulatory and credit ratings requirements;

• The rate of return on assets;

• Investments and/or divestments to support business development; and

• Periodic accounting volatility due to the application of “AASB 139 Financial Instruments: Recognition and Measurement”.

Dividends paid since the end of the previous financial year:

• As declared in the 31 December 2006 Profit Announcement, a fully franked interim dividend of 107 cents per share amounting to $1,380 million was paid on 5 April 2007. The payment comprised cash disbursements of $862 million with $518 million being reinvested by participants through the Dividend Reinvestment Plan.

Dividend Reinvestment Plan

The Bank expects to issue around $485 million of shares in respect of the Dividend Reinvestment Plan for the final dividend for 2006/07.

Record Date

The register closes for determination of dividend entitlement and for participation in the DRP at 5:00pm on 24 August 2007 at Link Market Services, Locked Bag A14, Sydney South, 1235.

Ex Dividend Date

The ex-dividend date is 20 August 2007.

Profit Announcement     51

Appendices

15. Life Insurance Business

Life Insurance Contract liabilities

Appropriately qualified actuaries have been appointed in respect of each life insurance business and they have reviewed and satisfied themselves as to the accuracy of the policy liabilities included in this Financial Report, including compliance with the regulations of the Life Insurance Act (“Life Act”) 1995 where appropriate. Details are set out in the various statutory returns of these life insurance entities.

Life Investment Contract liabilities

Investment contracts consist of a financial instrument and an investment management services element, both of which are measured at fair value. The resulting liabilities to policyholders are closely linked to the performance and the value of the assets (after tax) that back those liabilities. The fair value of such liabilities is therefore the same as the fair value of those assets, after tax on the basis charged to the policyholders.

	30/06/07			31/12/06			30/06/06
Components of Policy Liabilities (1)	$M			$M			$M
Future policy benefits (2)		23,569			24,666			23,916
Future bonuses		1,304			1,197			1,128
Future expenses		2,120			1,997			1,844
Future profit margins		1,490			1,517			1,388
Future charges for acquisition expenses		(438	)		(442	)		(434	)
Balance of future premiums		(6,544	)		(6,290	)		(5,706	)
Provisions for bonuses not allocated to participating policyholders		112			84			89
Total policy liabilities		21,613			22,729			22,225

(1)	Includes both investment and insurance business.
(2)	Including bonuses credited to policyholders in prior years.

Taxation

Taxation has been allowed for in the determination of policy liabilities in accordance with the relevant legislation applicable in each market.

Actuarial Methods and Assumptions

Insurance contract policy liabilities have been calculated in accordance with AASB 1038 (“Life Insurance Contracts”) and the Margin on Services (“MoS”) methodology as set out in Actuarial Standard 1.04 – Valuation Standard (“AS1.04”) issued by the Life Insurance Actuarial Standards Board (“LIASB”). The principal methods and profit carriers used for particular product groups were as follows:

Product Type	Method	Profit Carrier
Individual
Conventional	Projection	Bonuses or expected claim payments
Investment account	Projection	Bonuses or funds under management
Lump sum risk	Projection	Premiums/Expected claim payment
Income stream risk	Projection	Expected claim payments
Immediate annuities	Projection	Annuity payments
Group
Investment account	Projection	Bonuses or funds under management
Lump sum risk	Accumulation/Projection	Expected claim payments
Income stream risk	Accumulation/Projection	Expected claim payments

The “Projection Method” measures the present values of estimated future policy cash flows to calculate policy liabilities. The policy cash flows incorporate investment income, premiums, expenses, redemptions and benefit payments.

Bonuses are amounts added, at the discretion of the life insurer, to the benefits currently payable under Participating Business. Bonuses may take a number of forms including reversionary bonuses, interest credits and terminal bonuses (payable on the termination of the policy).

Actuarial assumptions

Set out below is a summary of the material assumptions used in the calculation of policy liabilities.

Discount rates

Discount rates are used to discount future cash flows in the determination of policy liabilities. Where insurance contract benefits are linked to the performance of the underlying assets, the discount rates are based on the expected earnings rate on the assets held (Traditional and Investment Account contracts). For all other insurance contracts, the discount rates are based on risk free rates of return. Allowance is made for taxation where relevant and for the nature and term of the liabilities. The following table shows the appreciation rates for the major classes of business in Australia and New Zealand. The changes relate to changes in long term earnings rates and asset mix.

52     Commonwealth Bank of Australia

Appendices

15. Life Insurance Business (continued)

	June 2007		December 2006		June 2006
Class of Business – Australia (1)	Rate Range %		Rate Range %		Rate Range %
Traditional – ordinary business (after tax)		4. 38 – 6. 34		4. 12 – 6. 07		6. 00 – 6. 75
Traditional – superannuation business (after tax)		5. 32 – 7. 75		5. 01 – 7. 42		7. 33 – 8. 26
Annuity – term and lifetime (exempt from tax)		6. 52 – 7. 09		6. 17 – 6. 63		5. 79 – 6. 30
Term insurance (before tax)		6. 25 – 6. 46		5. 86 – 6. 25		5. 58 – 5. 81
Income protection (before tax)		6. 25 – 6. 46		5. 86 – 6. 25		5. 58 – 5. 81
Investment account – ordinary (after tax)		4.55		4.29		4.21
Investment account – superannuation (after tax)		5.53		5.22		5.12
Investment account – annuities (exempt from tax)		6.46		6.09		5.98

(1) For New Zealand, investment earning rates assumed were 3.9% to 5.6% net of tax.

Bonuses

The calculation assumes that the long-term supportable bonuses will be paid, which is in line with company bonus philosophy. There have been no significant changes to these assumptions.

Maintenance expenses

The maintenance expenses are based on an internal analysis of experience and are assumed to increase in line with inflation each year and to be sufficient to cover the cost of servicing the business in the coming year after adjusting for one-off expenses. For Australian Participating Business, expenses continue on the previous charging basis with adjustments for actual experience and are assumed to increase in line with inflation each year.

Investment management expenses

Investment management expense assumptions now vary by asset classes and are based on the recently negotiated investment fees as set out in Fund Management Arrangements. There has been no significant change to overall investment fees.

Inflation

The inflation assumption is consistent with the investment earning assumptions.

Benefit indexation

The indexation rates were based on an analysis of past experience and estimated long term inflation and vary by business and product type. There have been no significant changes to these assumptions.

Taxation

The taxation basis and rates assumed vary by market and product type.

Voluntary discontinuance

Discontinuance rates were based on recent company and industry experience and vary by market, product, age and duration inforce. The experience has been broadly in line with assumptions. There have been no significant changes to these assumptions.

Surrender values

Current surrender value bases were assumed to apply in the future. There have been no significant changes to these assumptions.

Mortality and morbidity

Rates vary by sex, age, product type and smoker status. Rates were based on standard mortality tables applicable to each market (e.g. IA95-97 in Australia for retail risk, IM/IF80 for annuities), adjusted for recent company and industry experience where appropriate.

Solvency

Australian life insurers

Australian life insurers are required to hold prudential reserves in excess of the amount of policy liabilities. These reserves are required to support solvency requirements and provide protection against adverse experience. Actuarial Standard AS2.04 “Solvency Standard” (“S2.04”) prescribes a minimum solvency requirement and the minimum level of assets required to be held in each insurance fund. All controlled Australian insurance entities complied with the solvency requirements of AS2.04.

Overseas life insurers

Overseas insurance subsidiaries were required to hold reserves in excess of policy liabilities in accordance with local Acts and prudential rules. Each of the overseas subsidiaries complied with local requirements.

Managed assets & fiduciary activities

Arrangements were in place to ensure that asset management and other fiduciary activities of controlled entities were independent of the insurance funds and other activities of the Group.

Disaggregated information

Life Insurance business is conducted through a number of life insurance entities in Australia and overseas. Under the Australian Life Insurance Act 1995, life insurance business is conducted within one or more separate statutory funds, which are distinguished from each other and from the shareholders’ funds. The financial statements of Australian life insurers, which are lodged with the relevant Australian regulators show all major components of the financial statements disaggregated between the various life insurance statutory funds and their shareholders’ funds and as well as between investment linked business and non-investment linked business.

Profit Announcement     53

Appendices

16. Intangible Assets

	As At
	30/06/07			31/12/06			30/06/06
	$M			$M			$M
Total Intangible Assets
Goodwill		7,163			7,203			7,200
Computer software costs		297			267			229
Management fee rights		311			311			311
Other		64			65			69
Total intangible assets		7,835			7,846			7,809
Goodwill
Purchased goodwill – Colonial		6,705			6,705			6,705
Purchased goodwill – other		458			498			495
Total goodwill		7,163			7,203			7,200
Computer Software Costs
Cost		420			353			290
Accumulated amortisation		(123	)		(86	)		(61	)
Total computer software costs		297			267			229
Management Fee Rights
Cost		311			311			311
Total management fee rights		311			311			311
Other
Cost		85			82			82
Accumulated amortisation		(21	)		(17	)		(13	)
Total other		64			65			69

	Full Year Ended						Half Year Ended
	30/06/07			30/06/06			30/06/07			31/12/06
	$M			$M			$M			$M
Goodwill (reconciliation)
Opening balance		7,200			7,214			7,203			7,200
Additions		3			7			—			3
Impairment		(40	)		(21	)		(40	)		—
Closing balance		7,163			7,200			7,163			7,203
Computer Software Costs (reconciliation)
Opening balance		229			182			267			229
Additions:
From acquisitions		20			—			20			—
From internal development		110			90			42			68
Amortisation		(62	)		(43	)		(32	)		(30	)
Closing balance		297			229			297			267
Management Fee Rights (reconciliation)
Opening balance		311			224			311			311
Additions:
From revaluations		—			87			—			—
Closing balance		311			311			311			311
Other (reconciliation)
Opening balance		69			36			65			69
Additions:
From acquisitions		3			39			3			—
Amortisation		(8	)		(6	)		(4	)		(4	)
Closing balance		64			69			64			65

54      Commonwealth Bank of Australia

Appendices

17. ASB Bank Group – Statutory View

	Full Year Ended
	30/06/07		30/06/06		30/06/07		30/06/06
Income Statement (1)	NZDM		NZDM		$M		$M
Interest income		3,816		3,210		3,340		2,861
Interest expense		2,926		2,406		2,561		2,144
Net interest earnings		890		804		779		717
Other income		420		344		368		307
Total operating income		1,310		1,148		1,147		1,024
Impairment losses on advances		18		19		16		17
Total operating income after debt provisions expense		1,292		1,129		1,131		1,007
Total operating expense		533		495		467		442
Salaries and other staff expense		314		276		275		246
Building occupancy and equipment expense		91		85		80		76
Information technology expense		50		50		44		45
Other expenses		78		84		68		75
Net surplus before taxation		759		634		664		565
Taxation		227		194		199		173
Net surplus after taxation (2)		532		440		465		392

	As At
	30/06/07		30/06/06		30/06/07		30/06/06
Balance Sheet (3)	NZDM		NZDM		$M		$M
Assets
Cash and liquid assets		3,013		911		2,734		750
Due from other banks		1,126		834		1,022		688
Money market advances		2,264		966		2,054		796
Securities at fair value through Income Statement		2,437		3,021		2,211		2,489
Derivative assets		761		511		691		421
Advances to customers		42,856		37,989		38,889		31,304
Property, plant and equipment		159		152		144		125
Intangible assets		36		20		33		16
Other assets (4)		241		164		219		135
Total assets		52,893		44,568		47,997		36,724
Total interest earning and discount bearing assets		51,658		43,682		46,877		35,994
Liabilities
Money and market deposits		17,334		14,390		15,730		11,857
Derivative liabilities		984		241		893		199
Deposits from customers		24,523		21,145		22,253		17,423
Due to other banks		5,935		5,531		5,386		4,558
Other liabilities		412		361		373		297
Deferred taxation liabilities		134		13		122		11
Current tax liabilities		—		15		—		12
Subordinated debt		451		183		409		151
Total liabilities		49,773		41,879		45,166		34,508
Shareholders’ Equity
Contributed capital – ordinary shareholder		1,563		1,013		1,418		835
Asset revaluation reserve		27		23		25		19
Cash flow hedge reserves		251		50		228		41
Accumulated surplus		729		1,053		661		868
Ordinary shareholders’ equity		2,570		2,139		2,332		1,763
Contributed capital – perpetual preference shareholders		550		550		499		453
Total shareholders’ equity		3,120		2,689		2,831		2,216
Total liabilities and shareholders’ equity		52,893		44,568		47,997		36,724
Total interest and discount bearing liabilities		46,277		39,852		41,994		32,838

(1)	Income Statement has been translated at AUD 1.00= NZD 1.1426 for the year ended 30 June 2007 (AUD 1.00= NZD 1.122 for year ended 30 June 2006).
(2)	On a statutory basis, reported net surplus after taxation has increased by 21% in New Zealand dollar terms. It should be noted that the current year is impacted by mark to market accounting gains on hedging swaps that are not reflective of the underlying economic reality. Excluding these gains, statutory basis net surplus after taxation has increased by 8% in New Zealand dollar terms.
(3)	Refer to appendix 22 for rates at which Balance Sheet has been translated.
(4)	Includes tax assets of NZD $38 million in the current year.

Profit Announcement      55

Appendices

18. ASX Appendix 4E

Cross Reference Index	Page
Results for Announcement to the Market (Rule 4.3A Item No. 2)	Inside front cover
Income Statement (Rule 4.3A Item No. 3)	24
Balance Sheet (Rule 4.3A Item No. 4)	25
Statement of Cash Flows (Rule 4.3A Item No. 5)	26
Dividends (Rule 4.3A Item No. 6)	51
Dividend dates (Rule 4.3A Item No. 7)	Inside front cover
Statement of changes in Equity (Rule 4.3A Item No. 8)	57
Net tangible assets per security (Rule 4.3A Item No. 9)	64
Details of entities over which control was lost during the year (Rule 4.3A Item No. 10)	58
Details of associates and joint ventures (Rule 4.3A Item No. 11)	58
Other significant information (Rule 4.3A Item No. 12)	58
Foreign entities (Rule 4.3A Item No. 13)	58
Commentary on Results (Rule 4.3A Item No. 14)	2

Compliance Statement

This preliminary final report for the year ended 30 June 2007 is prepared in accordance with the ASX listing rules. It should be read in conjunction with any announcements to the market made by the Group during the year.

The preliminary final report has been prepared in accordance with Accounting Standards in Australia.

The Financial Statements of the Group have been audited.

John Hatton

Company Secretary

15 August 2007

56      Commonwealth Bank of Australia

Appendices

18. ASX Appendix 4E (continued)

Consolidated retained profits reconciliation (Rule 4.3A Item No. 8)

	2007			2006
	$M			$M
Retained profits
Opening balance		4,487			3,063
Actuarial gains and losses from defined benefit superannuation plan		414			387
Realised gains and dividend income on treasury shares held within the Bank’s life insurance statutory funds (1)		45			85
Operating profit attributable to Equity holders of the Bank		4,470			3,928
Total available for appropriation		9,416			7,463
Transfers to general reserve		54			(239	)
Transfers to general reserve for credit loss		—			(92	)
Interim 2007 dividend – cash component		(862	)		(992	)
Interim 2007 dividend – dividend reinvestment plan		(518	)		(219	)
Payment of 2006 final dividend – cash component		(1,368	)		(1,172	)
Payment of 2006 final dividend – dividend reinvestment plan		(300	)		(262	)
Other dividends		(55	)		—
Closing balance		6,367			4,487

(1) Relates to movements in treasury shares held within life insurance statutory funds and the employee share scheme trust.

Profit Announcement      57

Appendices

18. ASX Appendix 4E (continued)

Details of entities over which control was lost during the year

	Ownership Interest
(Rule 4.3A Item No. 10)	Date control lost	Held (%)
IDI (No.1) Limited	25 November 2006		100	%
IDI (No.2) Limited	25 November 2006		100	%
Riley Investments Limited	25 November 2006		100	%
Riley International Limited	25 November 2006		100	%

Details of associates and joint ventures (Rule 4.3A Item No. 11)

As at 30 June 2007	Ownership Interest Held (%)
Equigroup Pty Limited (formerly Computer Fleet Management)		50	%
Cyberlynx Procurement Services Pty Limited		50	%
AMTD Group Limited		30	%
China Life CMG Life Assurance Company Limited		49	%
CMG CH China Funds Management Limited		50	%
Hangzhou City Commercial Bank Limited		19.9	%
452 Capital Pty Limited		30	%
First State Cinda Fund Management Company Limited		46	%
Healthcare Support (Newcastle) Limited		40	%
Equion Health (Barts) Limited		50	%
Acadian Asset Management (Australia) Limited		50	%
Five D Holdings Pty Limited		50	%
First State Media (Ireland) Limited		50	%
CFS Retail Property Trust		9.5	%
Colonial Property Office Trust		7	%
Forth Valley Investment Company Limited		50	%

Other significant information (Rule 4.3A Item No. 12)

There is no other significant information.

Post Balance Date Events

On 1 June 2007, the Group announced an offer of Perpetual Exchangeable Resaleable Listed Securities (PERLS IV). The offer raised $1,465 million in July 2007. The issue of PERLS IV forms part of the Group’s capital management strategy, structured to meet APRA’s new regulatory capital requirements for Non-Innovative Residual Tier One Capital, effective January 2008. At 30 June 2007, this would have increased Tier One to 7.72% and Total Capital to 10.35%.

On 1 August 2007 the Group announced its intention to acquire all of the issued capital in IWL Ltd (“IWL”). The retail base of IWL is considered to be a strong fit with the existing equities business of Commsec, the Group’s broking business. The transaction is subject to a number of conditions, including IWL shareholder approval at a meeting expected to be held in October 2007, and various regulatory approvals including the ACCC.

Foreign Entities (Rule 4.3A Item No. 13)

Not Applicable

58      Commonwealth Bank of Australia

Appendices

19. Notes to the Statement of Cash Flows

	2007			2006
	$M			$M
19 (a) Reconciliation of Net Profit after Income Tax to Net Cash Provided by/(used in) Operating Activities
Net profit after income tax		4,497			3,959
Net (increase)/decrease in interest receivable		(745	)		(99	)
Increase/(decrease) in interest payable		362			784
Net (increase)/decrease in assets at fair value through Income Statement (excluding life insurance)		(7,272	)		(53	)
Net (gain)/loss on sale of controlled entities and associates		—			(163	)
Net (increase)/decrease in derivative assets		(3,068	)		128
Net (gain)/loss on sale of property, plant and equipment		16			(4	)
Loan impairment expense		434			398
Depreciation and amortisation		270			213
Increase/(decrease) in liabilities at fair value through Income Statement (excluding life insurance)		6,690			1,374
Increase/(decrease) in derivative liabilities		5,860			(445	)
Increase/(decrease) in other provisions		57			(92	)
Increase/(decrease) in income taxes payable		297			(455	)
Increase/(decrease) in deferred income taxes payable		175			182
Decrease/(increase) in deferred tax assets		(272	)		184
(Increase)/decrease in accrued fees/reimbursements receivable		(163	)		(88	)
Increase/(decrease) in accrued fees and other items payable		386			133
Unrealised loss/(gain) on revaluation of assets at fair value through Income Statement (excluding life insurance)		92			(112	)
(Decrease) in life insurance contract policy liabilities		(1,460	)		(1,211	)
Increase in cash flow hedge reserve		547			31
Changes in operating assets and liabilities arising from cash flow movements		(1,451	)		(3,458	)
Other		389			(44	)
Net cash provided by/(used in) operating activities		5,641			1,162
19 (b) Reconciliation of Cash: For the purposes of the Statement of Cash Flows, cash includes cash, money at short call, at call deposits with other financial institutions and settlement account balances with other banks.
Notes, coins and cash at bank		4,557			1,703
Other short term liquid assets		967			491
Receivables due from other financial institutions – at call (1)		4,607			4,657
Payables due to other financial institutions – at call (1)		(6,047	)		(4,813	)
Cash and cash equivalents at end of year		4,084			2,038
19 (c) Disposal of Controlled Entities
Fair value of net tangible assets disposed
Cash and liquid assets		—			55
Assets at fair value through Income Statement		—			2,297
Other assets		—			148
Life insurance policy liabilities		—			(1,996	)
Bills payable and other liabilities		—			(41	)
Profit on sale		—			145
Cash consideration received		—			608
Less cash and cash equivalents disposed		—			(55	)
Net cash inflow on disposal		—			553
19 (d) Non Cash Financing and Investing Activities: Shares issued under the Dividend Reinvestment Plan for 2007 were $818 million.
19 (e) Acquisition of Controlled Entities
Fair value of assets acquired:
Minority interests		4			126
Goodwill		3			7
Other intangibles		—			122
Other assets		—			167
Bills payable and other liabilities		—			(8	)
Cash consideration paid		7			414
Less cash and cash equivalents acquired		—			—
Net cash outflow on acquisition		7			414
19 (f) Financing Facilities : Standby funding lines are immaterial

(1) At call includes certain receivables and payables due from and to financial institutions within three months.

Profit Announcement   59

Appendices

20. Analysis Template

	Full Year Ended						Half Year Ended
	30/06/07			30/06/06			30/06/07			31/12/06			Page
Profit Summary – Input Schedule	$M			$M			$M			$M			References
Income – Cash Basis
Net interest income		7,036			6,514			3,551			3,485		Page 3
Other banking operating income		3,432			3,036			1,754			1,678		Page 3
Total banking Income		10,468			9,550			5,305			5,163		Page 3
Operating income		1,874			1,543			981			893		Page 17
Shareholder investment returns		14			14			10			4		Page 17
Funds management income		1,888			1,557			991			897		—
Operating income – life insurance		745			669			406			339		Page 21
Operating income – general insurance		72			73			29			43		Page 21
Operating income insurance		817			742			435			382		Page 21
Shareholder investment returns		135			87			54			81		Page 21
Profit on sale of the Hong Kong Insurance Business		—			145			—			—		Page 21
Insurance income		952			974			489			463		Page 21
Total income		13,308			12,081			6,785			6,523		Page 3
Expenses – Cash Basis													—
Banking		4,797			4,558			2,443			2,354		Page 36
Funds management		1,175			989			608			567		Page 36
Insurance		455			447			232			223		Page 36
Total operating expenses		6,427			5,994			3,283			3,144		Page 36
Profit before Loan impairment expense		6,881			6,087			3,502			3,379		—
Loan impairment expense		434			398			239			195		Page 3
Profit before income tax		6,447			5,689			3,263			3,184		Page 3
Income tax – corporate		1,816			1,605			916			900		Page 3
Operating profit after tax		4,631			4,084			2,347			2,284		—
Minority interests		27			31			14			13		Page 3
Net profit after tax – cash basis		4,604			4,053			2,333			2,271		Page 3
Defined benefit superannuation plan income/(expense)		5			(25	)		1			4		Page 3
Treasury share valuation adjustment		(75	)		(100	)		(37	)		(38	)	Page 3
One-off AIFRS mismatches		(64	)		—			(18	)		(46	)	Page 3
Net profit after tax – statutory basis		4,470			3,928			2,279			2,191		Page 3
Investment return on Shareholder funds		149			246			64			85		Page 23
Tax expense on shareholder investment returns		53			35			29			24		Page 23
Shareholder investment returns – after tax		96			211			35			61		Page 23
Net profit after tax – underlying basis		4,508			3,842			2,298			2,210		Page 3

60    Commonwealth Bank of Australia

Appendices

20. Analysis Template (continued)

	Full Year Ended						Half Year Ended
	30/06/07			30/06/06			30/06/07			31/12/06			Page
Profit Summary – Input Schedule	$M			$M			$M			$M			References
Other Data
Net interest income (excluding securitisation)		6,921			6,420			3,489			3,432		Page 32/33
Average interest earning assets		316,048			274,798			325,380			306,868		Page 32/33
Average net assets (1)		22,758			21,994			23,466			21,915		Page 25
Average minority interest (1)		509			1,148			510			508		Page 25
Average preference shares & other equity instruments (1)		939			1,600			939			939		Page 25
Average treasury shares (1)		(315	)		(390	)		(274	)		(345	)	Page 51
Average defined benefit superannuation plan net surplus (1)		1,013			631			1,111			896		—
Distributions – other equity instruments		55			—			27			28		—
Interest expense (after tax) – Perls I		—			32			—			—
Interest expense (after tax) – Perls II		25			23			12			13
Interest expense (after tax) – Perls III		60			13			31			29
Interest expense (after tax) – TPS		26			29			12			14
Interest expense (after tax) – Convertible notes		39			3			20			19
Weighted average number of shares – statutory basic		1,281			1,275			1,286			1,276		Page 3
Weighted average number of shares – fully diluted – statutory		1,344			1,329			1,349			1,348		—
Weighted average number of shares – cash and underlying		1,289			1,283			1,293			1,284		Page 3
Weighted average number of shares – fully diluted – cash and underlying		1,351			1,338			1,356			1,357		—
Weighted average number of shares – Perls I		—			12			—			—
Weighted average number of shares – Perls II		13			17			13			15
Weighted average number of shares – Perls III		21			6			21			24
Weighted average number of shares – TPS		11			17			11			14
Weighted average number of shares – Convertible notes		17			2			17			19
Weighted average number of shares – Executive Options		—			1			—			1
Dividends per share (cents)		256			224			149			107		Page 3
No. of shares at end of period		1,301			1,283			1,301			1,290		Page 51
Average funds under administration		164,404			139,082			171,264			158,010		Page 17
Operating income – internal		9			9			4			5		Page 17
Average inforce premiums (1)		1,278			1,180			1,370			1,248		Page 22
Net assets		24,444			21,343			24,444			22,487		Page 25
Total intangible assets		7,835			7,809			7,835			7,846		Page 25
Minority interests		512			508			512			508		Page 25
Other equity instruments		939			939			939			939		Page 25
Tier One capital		17,512			16,354			17,512			16,553		Page 48
Deferred income tax		37			—			37			39		Page 48
Equity investments in other companies		700			—			700			820		Page 48
Eligible loan capital		245			281			245			263		Page 48
Other equity instruments		3,474			3,659			3,474			3,522		Page 48
Minority interests (net of minority interest component deducted from Tier One capital)		512			508			512			508		Page 48
Investment in non consolidated subsidiaries (net of Intangible component deducted from Tier One capital)		409			2,012			409			283		Page 48
Other deductions		178			151			178			166		Page 48
Transitional Tier One Capital relief granted on adoption of AIFRS		1,641			—			1,641			1,641		Page 48
Risk-weighted assets used for ACE ratio		246,047			216,438			246,047			234,569		Page 49

(1) Average of reporting period balances.

Profit Announcement    61

Appendices

20. Analysis Template (continued)

	Full Year Ended				Half Year Ended
	30/06/07		30/06/06		30/06/07		31/12/06
Ratios – Output Summary	$M		$M		$M		$M
EPS
Net profit after tax – cash basis		4,604		4,053		2,333		2,271
Less distribution – other equity instruments		55		—		27		28
Less profit on sale of Hong Kong Insurance Business		—		145		—		—
Adjusted profit for EPS calculation		4,549		3,908		2,306		2,243
Average number of shares (M)		1,289		1,283		1,293		1,284
Earnings per share – cash basis adjusted for sale of Hong Kong Insurance Business (cents)		353.0		304.6		178.3		174.7
Net profit after tax – cash basis		4,604		4,053		2,333		2,271
Less distributions – other equity instruments		55		—		27		28
Adjusted cash profit for EPS calculation		4,549		4,053		2,306		2,243
Average number of shares (M)		1,289		1,283		1,293		1,284
Earnings per share – cash basis (cents)		353.0		315.9		178.3		174.7
Earnings per share – dilutions Interest expense (after tax) – Perls I		—		32		—		—
Interest expense (after tax) – Perls II		25		23		12		13
Interest expense (after tax) – Perls III		60		13		31		29
Interest expense (after tax) – TPS		26		29		12		14
Interest expense (after tax) – Convertible notes		39		3		20		19
Profit impact of assumed conversions (after tax)		150		100		75		75
Weighted average number of shares – Perls I (M)		—		12		—		—
Weighted average number of shares – Perls II (M)		13		17		13		15
Weighted average number of shares – Perls III (M)		21		6		21		24
Weighted average number of shares – TPS (M)		11		17		11		14
Weighted average number of shares – Convertible Notes (M)		17		2		17		19
Weighted average number of shares – Executive Options (M)		—		1		—		1
Weighted average number of shares – Dilutive securities (M)		62		55		62		73
Adjusted cash profit for EPS calculation		4,549		4,053		2,306		2,243
Add back profit impact of assumed conversions (after tax) (M)		150		100		75		75
Adjusted diluted profit for EPS calculation		4,699		4,153		2,381		2,318
Average number of shares (M)		1,289		1,283		1,293		1,284
Add back weighted average number of shares (M)		62		55		62		73
Diluted average number of shares (M)		1,351		1,338		1,355		1,357
EPS diluted – cash basis (cents)		347.8		310.5		175.6		170.9
Net profit after tax – underlying		4,508		3,842		2,298		2,210
Less distributions – other equity instruments		55		—		27		28
Adjusted profit for EPS calculation		4,453		3,842		2,271		2,182
Average number of shares (M)		1,289		1,283		1,293		1,284
Earnings per share – underlying basis (cents)		345.6		299.4		175.6		169.9

62    Commonwealth Bank of Australia

Appendices

20. Analysis Template (continued)

	Full Year Ended						Half Year Ended
	30/06/07			30/06/06			30/06/07			31/12/06
Ratios – Output Summary	$M			$M			$M			$M
DPS
Dividends
Dividends per share (cents)		256			224			149			107
No of shares at end of period (M)		1,301			1,283			1,301			1,290
Total dividends		3,319			2,879			1,939			1,380
Dividend payout ratio – cash basis
Net profit after tax – cash basis		4,604			4,053			2,333			2,271
NPAT – available for distribution to ordinary shareholders		4,549			4,053			2,306			2,243
Total dividends		3,319			2,879			1,939			1,380
Payout ratio – cash basis (%)		73.0			71.0			84.1			61.5
Dividend cover
NPAT – available for distribution to ordinary shareholders		4,549			4,053			2,306			2,243
Total dividends		3,319			2,879			1,939			1,380
Dividend cover – cash basis		1.4			1.4			1.2			1.6
ROE
Return on equity – cash basis
Average net assets		22,758			21,993			23,466			21,915
Less:
Average minority interests		(509	)		(1,148	)		(510	)		(508	)
Average preference shares		(939	)		(1,600	)		(939	)		(939	)
Average equity		21,310			19,245			22,016			20,468
Add average treasury shares		315			390			274			345
Less average defined benefit superannuation plan net surplus		(1,013	)		(631	)		(1,111	)		(896	)
Net average equity		20,612			19,004			21,179			19,917
NPAT (“cash basis”)		4,604			4,053			2,333			2,271
Less distributions – other equity instruments		55			—			27			28
Adjusted profit for ROE calculation		4,549			4,053			2,306			2,243
Return on equity – cash basis (%)		22.1			21.3			22.0			22.3
Return on equity – underlying basis
Average net assets		22,758			21,993			23,466			21,915
Average minority interests		(509	)		(1,148	)		(510	)		(508	)
Average preference shares		(939	)		(1,600	)		(939	)		(939	)
Average equity		21,310			19,245			22,016			20,468
Add average treasury shares		315			390			274			345
Less average defined benefit superannuation plan net surplus		(1,013	)		(631	)		(1,111	)		(896	)
Net average equity		20,612			19,004			21,179			19,917
NPAT (“underlying basis”)		4,508			3,842			2,298			2,210
Less distribution other equity instruments		55			—			27			28
Adjusted profit for ROE calculation		4,453			3,842			2,271			2,182
Return on equity – underlying basis (%)		21.6			20.2			21.6			21.7
NIM
Net interest income (excluding securitisation)		6,921			6,420			3,489			3,432
Average interest earning assets (excluding securitisation)		316,048			274,798			325,380			306,868
NIM (% pa)		2.19			2.34			2.16			2.22

Profit Announcement     63

Appendices

20. Analysis Template (continued)

	Full Year Ended						Half Year Ended
	30/06/07			30/06/06			30/06/07			31/12/06
Ratios – Output Summary	$M			$M			$M			$M
Productivity
Banking expense to income ratio
Expenses		4,797			4,558			2,443			2,354
Banking Income		10,468			9,550			5,305			5,163
Expense to Income – cash basis (%)		45.8			47.7			46. 1			45.6
Funds management expenses to average FUA ratio
Expenses		1,175			989			608			567
Average funds under administration		164,404			139,082			171,264			158,010
Expenses to average FUA – cash basis (%)		0.71			0.71			0. 72			0.71
Insurance expenses to average inforce premiums ratio
Operating expenses		455			447			232			223
Operating expenses – internal		9			9			4			5
Total expenses		464			456			236			228
Average inforce premiums		1,278			1,180			1,370			1,248
Expenses to average inforce premiums ratio (%)		36.3			38.6			34. 7			36.2
Net Tangible Assets (NTA) per share
Net assets		24,444			21,343			24,444			22,487
Less:
Intangible assets		(7,835	)		(7,809	)		(7,835	)		(7,846	)
Minority interests		(512	)		(508	)		(512	)		(508	)
Other equity instruments		(939	)		(939	)		(939	)		(939	)
Total net tangible assets		15,158			12,087			15,158			13,194
No of shares at end of period (M)		1,301			1,283			1,301			1,290
Net tangible assets (NTA) per share ($)		11.65			9.42			11. 65			10.23
ACE ratio
Tier One capital		17,512			16,354			17,512			16,553
Add:
Deferred income tax		37			—			37			39
Equity investments in other companies		700			—			700			820
Deduct:
Eligible loan capital		(245	)		(281	)		(245	)		(263	)
Other hybrid equity instruments		(3,474	)		(3,659	)		(3,474	)		(3,522	)
Minority Interest (net of minority interest component deducted from Tier One capital)		(512	)		(508	)		(512	)		(508	)
Investment in non-consolidated subsidiaries (net of intangible component deducted from Tier One capital)		(409	)		(2,012	)		(409	)		(283	)
Other deductions		(178	)		(151	)		(178	)		(166	)
Impact upon adoption of AIFRS		(1,641	)		—			(1,641	)		(1,641	)
Total Adjusted Common Equity		11,790			9,743			11,790			11,029
Risk weighted assets used for ACE ratio		246,047			216,438			246,047			234,569
ACE ratio (%)		4.79			4.50			4. 79			4.70

64     Commonwealth Bank of Australia

Appendices

21. Summary

					Full Year Ended									Half Year Ended
											Jun 07 vs									Jun 07 vs
Total			Page		30/06/07			30/06/06			Jun 06 %			30/06/07			31/12/06			Dec 06 %
Net profit after tax – underlying	$	M		3		4,508			3,842			17			2,298			2,210			4
Net profit after tax – cash basis	$	M		3		4,604			4,053			14			2,333			2,271			3
Defined benefit superannuation plan income/(expense) – after tax	$	M		3		5			(25	)	large				1			4			(75	)
Treasury shares valuation adjustment – after tax	$	M		3		(75	)		(100	)		25			(37	)		(38	)		3
One-off AIFRS mismatches	$	M		3		(64	)		—			—			(18	)		(46	)		61
Net profit after tax – statutory	$	M		3		4,470			3,928			14			2,279			2,191			4
Earnings per share – cash basis – basic	cents			3		353.0			315.9			12			178.3			174.7			2
Dividends per share	cents			3		256			224			14			149			107			39
Dividend pay-out ratio – cash basis (adjusted for sale of Hong Kong Insurance Business)		%		3		73.0			73.7		(70)bpts				84.1			61.5		large
Tier One capital		%		47		7.14			7.56		(42)bpts				7.14			7.06		8bpts
Total capital		%		47		9.76			9.66		10bpts				9.76			9.78		(2)bpts
Adjusted common equity		%		47		4.79			4.50		29bpts				4.79			4.70		9bpts
Number of full time equivalent staff	No.			—		37,873			36,664			3			37,873			37,216			2
Return on equity – cash		%		3		22.1			21.3		80bpts				22.0			22.3		(30)bpts
Return on equity – underlying		%		63		21.6			20.2		140bpts				21.6			21.7		(10)bpts
Weighted average number of shares – statutory		M		3		1,281			1,275			—			1,286			1,276			1
Net tangible assets per share	$			64		11.65			9.42			24			11.65			10.23			14
Banking
Net profit after tax – underlying	$	M		7		3,763			3,227			17			1,896			1,867			2
Net profit after tax – cash basis	$	M		7		3,763			3,227			17			1,896			1,867			2
Net Interest Income	$	M		7		7,036			6,514			8			3,551			3,485			2
Net Interest Margin		%		7		2.19			2.34		(15)bpts				2.16			2.22		(6)bpts
Other banking income	$	M		7		3,432			3,036			13			1,754			1,678			5
Other banking income/total banking income		%		—		32.8			31.8			3			33.1			32.5			2
Expense to income ratio		%		7		45.8			47.7			4			46.1			45.6			(1	)
Average interest earning assets	$	M		4		316,048			274,798			15			325,380			306,868			6
Average interest earning liabilities	$	M		4		294,792			255,100			16			303,171			286,548			6
Loan impairment expense	$	M		7		434			398			(9	)		239			195			(23	)
Loan impairment expense to average risk-weighted assets (annualised)		%		9		0.19			0.20		1bpt				0.20			0.17		(3)bpts
Total provisions for impairment losses to gross impaired assets		%		40		298.3			380.7			—			298.3			363.9			—
Individually assessed provisions for impairment to gross impaired assets		%		40		23.8			24.5		(70)bpts				23.8			23.4		40bpts
Risk weighted assets	$	M		49		245,347			216,438			13			245,347			234,569			5
Funds Management
Net profit after tax – underlying	$	M		17		492			400			23			260			232			12
Net profit after tax – cash basis	$	M		17		490			410			20			255			235			9
Shareholder investment returns	$	M		17		14			14			—			10			4		large
Average funds under administration	$	M		17		164,404			139,082			18			171,264			158,010			8
Net inflows	$	M		17		1,763			10,830			(84	)		(313	)		2,076		large
Operating income to average funds under administration		%		17		1.15			1.12		3bpts				1.16			1.13		3bpts
Expenses to average funds under administration		%		17		0.71			0.71			—			0.72			0.71			(1	)
Insurance
Net profit after tax – underlying	$	M		21		253			215			18			142			111			28
Net profit after tax – cash basis	$	M		21		351			416			(16	)		182			169			8
Shareholder investment returns	$	M		21		135			232			(42	)		54			81			(33	)
Inforce premiums	$	M		22		1,400			1,156			21			1,400			1,340			4
Total expenses to Average Inforce premiums		%		21		36.3			38.6			6			34.7			36.2			4

Profit Announcement       65

Appendices

22. Foreign Exchange Rates

Exchange Rates Utilised
As At		30/06/07		31/12/06		30/06/06
AUD 1. 00 =	USD		0.8497		0.7913		0.7428
	GBP		0.4241		0.4027		0.4053
	JPY		104.889		94.024		85.276
	NZD		1.102		1.121		1.214
	HKD		6.6426		6.151		5.770
	EUR		0.6319		0.6007		0.5848

66      Commonwealth Bank of Australia

Appendices

23. Definitions

Term	Description
Banking	Banking operations includes retail; business, corporate, institutional and treasury; Asia Pacific banking and centre support functions. Australian Retail banking operations include banking services which were distributed through the Business and Retail distribution divisions. Business, Corporate and Institutional banking includes banking services which were distributed to all business customers through the Premium Business Services division and the small business customers which were serviced through the Premium and Retail divisions and funding operations. Asia Pacific banking includes offshore banking subsidiaries, primarily ASB Bank operations in New Zealand.
Dividend Payout Ratio	Dividends paid on ordinary shares divided by earnings (earnings are net of dividends on other equity instruments).
DRP	Dividend reinvestment plan.
DRP Participation	The percentage of total issued capital participating in the dividend reinvestment plan.
Earnings Per Share	Calculated in accordance with the revised AASB 133: Earnings per Share.
Expense to Income Ratio	Represents operating expenses as a percentage of total operating revenue.
Funds Management	Funds management business includes funds management within the Wealth Management division and International Financial Services division.
Insurance	Insurance business includes the life risk business within the Wealth Management division and the International Financial Services division and general insurance financial results. The insurance segment as reported on page 21 includes the operating performance of the Hong Kong Insurance Business up to the effective date of sale (18 October 2005).
Net Profit after Tax (“Cash Basis”)	Represents profit after tax and minority interests, before defined benefit superannuation plan income/expense, treasury shares valuation adjustment and one-off AIFRS mismatches.
Net Profit after Tax (“Statutory Basis”)	Represents profit after tax, minority interests, defined benefit superannuation plan income/expense, treasury shares valuation adjustment and one-off AIFRS mismatches. This is equivalent to the statutory item “Net Profit attributable to Equity holders of the Group”.
Net Profit after Tax (“Underlying Basis”)	Represents net profit after tax (“cash basis”) excluding shareholder investment returns and the profit on sale of the Hong Kong Insurance Business.
Net Tangible Assets per Share	Net assets excluding intangible assets, minority interests, preference shares and other equity instruments divided by ordinary shares on issue at the end of the period.
Overseas	“Overseas” represents amounts booked in branches and controlled entities outside Australia.
Return on Average Shareholders’ Equity	Based on net profit after tax and minority interests less other equity instrument distributions applied to average shareholders’ equity, excluding minority interests and other equity instruments.
Return on Average Shareholders’ Equity - Cash Basis	As per the return on average shareholder equity, excluding the effect of Defined benefit superannuation plan interest expense, treasury shares valuation adjustment and one-off AIFRS mismatches.
Staff Numbers	Staff numbers include all permanent full time staff, part time staff equivalents and external contractors employed by 3rd party agencies.
Weighted Average Number of Shares (“Statutory Basic”)	Includes an adjustment to exclude “Treasury Shares” related to investments in the Bank’s shares held by both the life insurance statutory funds and by the employee share scheme trust.
Weighted Average Number of Shares (“Cash Basic”)	Includes an adjustment to deduct from ordinary shares only those “Treasury Shares” related to the investment in the Bank’s shares held by the employee share scheme trust.

Profit Announcement       67

Appendices

24. Market Share Definitions

Banking

Australian Retail
Home Loans	Total Housing Loans(APRA) – MISA (Pre Sep 04) + Securitised Assets (APRA) + Homepath.
	Total Housing Loans (incl securitisations) (from RBA which includes NBFI’s unlike APRA). (1)
Credit Cards	CBA Total Credit Card Lending (APRA).
	Total Credit Cards with Interest Free + Total Credit Cards without Interest Free (from RBA which includes NBFI’s unlike APRA). (1)
Retail Deposits	CBA Current Deposits + Term (excl CD’s) + Other (All as reported to RBA)
	Total RBA: Current Deposits with banks + Term (excl CD’s) + Other with banks.(from RBA monthly bulletin statistics) (1)
Household Deposits	CBA Household Deposits (as reported to APRA) — MISA (Pre Sep 04)
	Total Bank Household Deposits (from APRA monthly banking statistics)
APRA Other Household Lending	CBA Term Personal Lending + Margin Lending net balances + Personal Leasing + Revolving credit
	Total Market Term Personal Lending + Margin Lending + Personal Leasing + Revolving credit from APRA
Business
Business Lending (RBA)	CBA business lending and credit (specific ‘business lending’ categories in lodged APRA returns — 320.0, 320.1 and 320.4)
	Total of business lending and credit to the private non-financial sector by all financial intermediaries (sourced from RBA table Lending & Credit Aggregates which is in turn sourced from specific ‘business lending’ categories in lodged APRA returns — 320.0, 320.1 and 320.4) (includes bills on issue and securitised business loans). (1)
Business Lending (APRA)	Loans and advances to residents that are recorded on the domestic books of CBA within the non-financial corporations sector, where this sector comprises private trading corporations, private unincorporated businesses and commonwealth, state, territory and local government non-financial corporations (as per lending balances submitted to APRA in ARF 320.0)
	Total loans and advances to the non-financial corporations sector for all licensed banks that submit to APRA
Business Deposits (APRA)	Total transaction and non-transaction account deposit balances recorded on the domestic books of CBA from residents within the non-financial corporations sector, where this sector comprises private trading corporations, private unincorporated businesses and commonwealth, state, territory and local government non-financial corporations (as per deposit balances submitted to APRA in ARF 320.0)
	Total transaction and non-transaction deposit balances from the non-financial corporations sector for all licensed banks that submit to APRA
Asset Finance	Total end of month asset finance net receivables excluding repossessed assets, non-accrual receivables, progressive fundings and the consumer loan balance
	Total market as determined by Australian Equipment Lessors Association (AELA)
Equities Trading (CommSec)	12 months rolling average of total value of CommSec equities trades
	12 months rolling average of total value of equities market trades as measured by ASX SEATS
Asia Pacific
NZ Lending	All retail, business, commercial, corporate, and rural deposits on ASB Balance Sheet
	Total retail, business, commercial, corporate, and rural deposits in New Zealand (from NZ Reserve Bank)
NZ Deposits	All retail, business, commercial, corporate, and rural loans on ASB Balance Sheet
	Total retail, business, commercial, corporate, and rural deposits in New Zealand (from NZ Reserve Bank)
Funds Management
Retail Australian	Total funds in CBA Wealth Management retail investment products (including WM products badged by other parties)
	Total funds in retail investment products market (from Plan for Life)
FirstChoice Platform	Total funds in FirstChoice platform
	Total funds in platform/masterfund market (from Plan for life)
New Zealand retail	Total ASB + Sovereign + JMNZ Net Retail Funds under Management
	Total Market net Retail Funds under Management (from Fund Source Research Limited)

68      Commonwealth Bank of Australia

24. Market Share Definitions (continued)

Insurance

Australia (Total Risk)	Total risk inforce premium of all CBA Group Australian life insurance companies
	Total risk inforce premium for all Australian life insurance companies (from Plan for Life)
Australia (Individual Risk)	(Individual lump sum + individual risk income) inforce premium of all CBA Group Australian life insurance companies
	Individual risk inforce premium for all Australian life insurance companies (from Plan for Life)
New Zealand	Total Sovereign (inforce annual premium income + new business – exits – other)
	Total inforce premium for New Zealand (from ISI statistics)

(1) The RBA restates the total of all financial intermediaries retrospectively when required. This may be due to a change in definition, the inclusion of a new participant or correction of errors in prior returns. CBA restates its market share where the RBA total has changed based on current balances less implied percentage growth rates now reported by the RBA for previous months.

Profit Announcement       69

EX-99.3

Ralph Norris CHIEF EXECUTIVE OFFICER 15 August 2007

124 ACN 123 123

Commonwealth Bank of Australia MEDIA PRESENTATION FOR THE FULL YEAR Ended 30 June 2007

Disclaimer

the form into any of take of without background date or summary not needs general the in does or with at given of current and situation considered, presentation information investors financial be activities is a It should is 2007. potential objectives, follows Bank’s or These the August that about 15 investors investment material to the investor. advice The information presentation, and does not purport to be complete. It is not intended to be relied upon as account particular professional advice when deciding if an investment is appropriate.

Overview

· growth profit growth digit future priorities double drive to business strategic year delivered five new the our into businesses in on maintained going all — investment progress quality momentum result Good Continued Substantial Credit Good

·

Jun 07 vs Jun 07 Jun 06

Cash NPAT ($m) *4,60418%

Cash EPS (cents) *353.016%

Return on Equity -Cash (%)22.180 bpts

Income ($m)13,15911%

Expense ($m)6,4277%

Final Dividend ($  per share)1.4915%

* Excludes profit on sale of Hong Kong Insurance business in half year ended December 2005

All brands performing strongly

CEO priorities & measures

Customer Service Business Banking Technology & Operational Excellence Trust & Team Spirit Profitable Growth Superior operating and financial results Australia’s finest financial services organisation

Customer Service

Continued focus on embedding Sales & Services culture 4,000 front line staff trained in how to better identify customer needs 1,100 new customer facing roles across the Group New branch operating model to better meet customer needs Continued improvement in customer satisfaction scores Complaints reduced; compliments increased

6 month average) % customers satisfied (Roy Morgan Research -

     

Business Banking Local Business Banking (LBB)Growth in Lending to Non-Financial 85 new Bankers in branches Corporations 2005-2007* 160% 78 new associates providing 24/7 150% access140% Product and process simplification130% 120% Corporate Financial Services110% 72 new staff in 8 new centres100% Simpler faster processes90% Improved customer satisfactionJun-05Sep-05Dec-05Mar-06Jun-06Sep-06Dec-06Mar-07Jun-07 CBAMarket Agribusiness* APRA 53 new Bankers in 15 new locationsLBB Quarterly gross fundingsFY07 Agrilinelaunched with 24/7 customer access Technology CommBiz rolled out to over 10,000 business customers Continued enhancements to CommSeeQ1 Q2 Q3 Q4 9

Business Banking

Local Business Banking (LBB)

• 24/7 simplification branches providing in            process Bankers associates            and new new access Product • 78

·

Corporate Financial Services

· centres            satisfaction new 8 processes in faster customer staff new            Improved

· Simpler

·

Agribusiness

· locations new 24/7 15 with in Bankers launched access new Agriline customer 53

·

Technology

· 10,000 to over to out            enhancements rolled customers CommBiz business Continued CommSee

·

Jun-07 Mar-07 Dec-06 Sep-06 Jun-06 Mar-06 Dec-05 Sep-05 Jun-05

CBA

Market

* APRA

chosen by 50% of IFA’s -online, real time secure business and corporate banking FirstChoice -

CommBiz

2m active customers CommSec -

Netbank

95% — visibility of customer

CommSee

Technology & Operational Excellence

· the and expense large across in IT of CommWay, $100m delivering projects resilience in 1,512 IT improvements trained to over of stability, total staff Saved Successfully portfolio business Significant system security 429 taking

·

June 07 Severity 1 and 2 Incidents June 06 -

Incidents

Severity 1 and 2

Efficiency Ratio = To

tal IT Expense (excluding strategic initiative spend) / Total bank Op Expenses *

Trust & Team Spirit improving

Continued improvement in the culture:

· people benefits customer in pride on scores of focus momentum employee sense Increasing Positive engagement Improved Increasing

·

     

Opportunities for Profitable Growth

Asian expansion plans progressing well:

ANK acquisition acquired JV partner stake in CMG Astra Further capital investment in Hangzhou Cinda/CFS fund management JV launched Branch licence applied for

—

Indonesia China Vietnam

· 2007 in funds new 20 launched increasing Management strategy referrals Asset growth unit Global Markets business CFS Global Cross

·

Outlook

· 2007 or to growth meet levels credit to similar growth positive at

personal competitive EPS remain and expect remains to remain business will mix, Australia expected in for industry business peers outlook growth expected services and of credit slowing outlook average Economic Housing Some Financial Given exceed

·

Ralph Norris CHIEF EXECUTIVE OFFICER 15 August 2007

124 ACN 123 123

Commonwealth Bank of Australia MEDIA PRESENTATION FOR THE FULL YEAR Ended 30 June 2007

EX-99.4

Ralph Norris CHIEF EXECUTIVE OFFICER David Craig CHIEF FINANCIAL OFFICER 15 August 2007

124 ACN 123 123

Commonwealth Bank of Australia RESULTS PRESENTATION FOR THE FULL YEAR Ended 30 June 2007

Disclaimer

The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation, 15 August 2007. 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.

Agenda

· Update Company

· Financials

· Results            Detailed            Outlook

· -

· — Answers CEO            CFO            CEO

· Norris, Norris, and Craig, Ralph            David            Ralph            Questions

·

Notes

Overview

· growth profit growth digit future priorities double drive to business strategic year delivered five new the our into businesses in on maintained going all — investment progress quality momentum result Good Continued Substantial Credit Good

·

Other key information Cash NPAT6 months ($m)Jun 07Dec 06Jun 06Dec 05 Cash NPAT2,3332,2711,9922,061 Less: Profit on sale of Hong Kong000(145) Cash NPAT (excl HK sale)2,3332.2711,9921,916 Some overall Bank indicators 6 months Jun 07Dec 06Jun 06Dec 05 Number of branches1,0101,0101,0051,007 Weighted av. No. of shares (cash)1,293m1,284m1,285m1,281m Net tangible assets per share ($)11.6510.239.428.99 Risk weighted assets ($m)245,347 234,569 216,438 202,667

Strong financial results Jun 07 vs Jun 07 Jun 06

Cash NPAT ($m) *4,60418%

Cash EPS (cents) *353.016%

Return on Equity -Cash (%)22.180 bpts

Income ($m)13,15911%

Expense ($m)6,4277%

Final Dividend ($  per share)1.4915%

* Excludes profit on sale of Hong Kong Insurance business in half year ended December 2005

Notes

All brands performing strongly

Market shares Jun 07Dec 06Jun 06 Banking Home loans18.5%18.4%18.7% Credit cards18.8%19.3%20.3% Retail deposits21.6%21.9%22.2% Household deposits29.0%28.8%29.3% Personal lending16.4%16.4%16.1% Business lending — RBA12.9%13.0%13.2% Business lending — APRA12.4%12.5%12.1% Business deposits — APRA13.0%12.0%11.9% Asset finance13.2%13.9%14.5% NZ lending (housing)23.1%23.1%23.1% NZ retail deposits21.2%20.7%20.3% Funds Management Aust retail administrator view14.2% *15.4%15.4% NZ Managed investments15.8%16.1%16.0% Firstchoice platform8.5%8.2%7.7%

Insurance Aus. Life insurance (total risk)14.2%14.4%13.2% NZ Life insurance31.8%31.5%31.4% * Includes impact of $7bn disengagement of Goldman Sachs JB Werefrom Avanteos

CEO priorities & measures

Customer Service Business Banking Technology & Operational Excellence Trust & Team Spirit Profitable Growth Superior operating and financial results Australia’s finest financial services organisation

I I

Notes

Customer Service

Continued focus on embedding Sales & Services culture 4,000 front line staff trained in how to better identify customer needs 1,100 new customer facing roles across the Group New branch operating model to better meet customer needs Continued improvement in customer satisfaction scores Complaints reduced; compliments increased

6 month average) %

On a journey...Australian Retail Banking Introduction of Management KPI’s CommSeelinked to customer Branch satisfaction refurbishment Sales & Service Introduction of Program initiatives for our Saturday trading people Measurement of customer advocacy Revenue OperationsCustomersMarket Share growth New branch 600 new front Improvements operating modelline staffemerging New generation Competitive product Strong upturn in retail branch layoutofferings network sales Rollout of Needs in all segments Home loans Analysis mastery Reduction in C8bpts in 2nd half Taking ownership customer complaints Deposits C21bpts and following up Flexible opening in 2nd half traininghours

Notes

Notes

Business Banking

Local Business Banking (LBB)

• 24/7 simplification branches providing in            process Bankers associates            and new new access Product • 78

·

Corporate Financial Services

· centres            satisfaction new 8 processes in faster customer staff new            Improved

· Simpler

·

Agribusiness

· locations new 24/7 15 with in Bankers launched access new Agriline customer 53

·

Technology

· 10,000 to over to out            enhancements rolled customers CommBiz business Continued CommSee

·

Jun-07 Mar-07 Dec-06 Sep-06 Jun-06 Mar-06 Dec-05 Sep-05 Jun-05

CBA

Market

* APRA

Notes

chosen by 50% of IFA’s -online, real

time secure business and corporate banking FirstChoice -

CommBiz

2m active customers CommSec -

Netbank

95% — visibility of customer

CommSee

EDS and Gen-i contracts FY07Saving Contract New DealReview Spend$m p.aEnd Telecommunication servicesFY08/FY09 MobilesGen-iOptus2008 RAS$113mTelstra10 -152008 Voice and Data ServicesGen-i2009 Applications Development Maintenance Selective in-sourcing of strategic FY08 Enhancementscapabilities Consulting EDS Enterprise Processing $398mEDS12-142012 Services End User Computing Desktop Service DeskEDS14-192012 ATM

IT savings reinvested

Technology & Operational Excellence

· the and expense large across in IT of CommWay, $100m delivering projects resilience in 1,512 IT improvements trained to over of stability, total staff Saved Successfully portfolio business Significant system security 429 taking

·

June 07 Severity 1 and 2 Incidents June 06 -

Incidents

Severity 1 and 2

Efficiency Ratio = Total

Notes

Trust & Team Spirit improving

Continued improvement in the culture:

· people benefits customer in pride on scores of focus momentum employee sense Increasing Positive engagement Improved Increasing

·

Notes

Opportunities for Profitable Growth

Asian expansion plans progressing well:

ANK acquisition acquired JV partner stake in CMG Astra Further capital investment in Hangzhou Cinda/CFS fund management JV launched Branch licence applied for

—

Indonesia China Vietnam

· 2007 in funds new 20 launched increasing Management strategy referrals Asset growth unit Global Markets business CFS Global Cross

·

Notes

David Craig CHIEF FINANCIAL OFFICER 15 August 2007

124 ACN 123 123

Commonwealth Bank of Australia RESULTS PRESENTATION FOR THE FULL YEAR Ended 30 June 2007

Non cash items

Jun 06 $m

25

Defined benefit superannuation plan (income) / expense

100

Treasury Shares valuation adjustment

- -

One-off AIFRS mismatches

125

Defined benefit superannuation plan (income) / expense:

· plan to applied rate discount the recorded assets, is plan period. amount on return the income during net a long-term accrued half, the of current benefits the estimates member in assets actuarial on by additional return of influenced cost increasing the is to amount and largely This liabilities, Due

·

Treasury Shares valuation adjustment:

· mismatch offsetting no Statement with Income policyholders, an in to result liability in policyholders) increase the of behalf for (on recognised funds is statutory expense an             shares” insurance rises, life price “treasury within share the on held Bank’s shares the recognised CBA When gain

·

One-off AIFRS mismatches:

· P&L profit through hedge the recognised 2005 July never 1 on profit AIFRS period offsetting to current transition the to on transactions and expense this structured inception, of at of recognition hedged unwinding the the incurred to economically earnings forward due been arisen fully retained brings has been has in loss had loss transactions economic recognised of No Accounting Transactions was Unwind

·

Strong result Jun 07Jun 06Jun 07 vs $m$mJun 06 Operating income13,15911,83511% Shareholder investment returns14910148% Income13,30811,93611% Operating expenses6,4275,9947% Loan impairment expenses4343989% Net profit before tax6,4475,54416% Tax & Minorities1,8431,63613% NPAT Cash *4,6043,90818% Profit on the sale of HK Insurance145Large Non cash items(134)(125)7% Statutory NPAT4,4703,92814%

* Excludes profit on sale of Hong Kong in Dec 05

29

Other key informationNotes 6 months Jun 07Dec 06Jun 06Jun 07 vs Contribution to profit $m$m$mJun 06 Banking1,8961,8671,63816% Funds Management26023221720% Insurance14211111227% NPAT (underlying)2,2982,2101,96717% Shareholder invest. returns 35612540% (ex HK after tax) NPAT Cash (ex HK)2,3332,2711,99217%

Cash EPS — basic (excl HK)178.3174.7154.915% ROE — cash (%)22.022.320.8120bpts

Pref. dividends *1071097935% Ordinary dividend declared1,9391,3801,66816%

* Includes distributions on Perls, Perls II, Perls III, Trust Preferred Securities and ASB Preference Shares.

All businesses performing well

Revenue growth outstrips costs

30% 25% 20% 15% 10% 5% 0%

Jun 07 vs Jun 06

Australian Retail

Funds Management

Excludes hedging volatility ^a

Expenses Income

Income is net of volume related expenses Excludes Hong Kong disposal and the operating result of the business Excludes Hong Kong disposal ^{b c d}

Other key information 6 months Jun 07Dec 06Jun 06 % of operating income Net interest income53%54%54% Other banking income26%26%26% Funds Mgt. income15%14%14% Insurance income6%6%6% Total100%100%100%

Banking profit up 17%

Net interest income

Volume Liquid margin Other margin NII

15 % 3 % 4 % 8 % C            E            E            C

(239) 396

522

Other key informationNotes 6 months Jun 07Dec 06Jun 06Jun 07 vs Jun 06 Av interest earning assets ($m) *325,380306,868282,55315%

Net interest income ($m) *3,4893,4323,2029%

Net interest margin (AIFRS) (bpts)21622222913 bpts

* Excluding securitisation

$79m $58m 8%

13%

C Sale of Loy Yang Mastercard (06 $32m) Commissions & fees

Other income Cost to income now 45.8% (June 06 47.7%)

Jun 06 Cash NPAT

NII

Other income

Expenses

Loan impairment

12 month margin analysis Underlying NIM: core lending 234& deposits E10bpts (6)1 219 (8) (3) 1 Jun 06LiquidAIFRSAssetCash rateOtherJun 07 assetsvolatility pricing and & deposit mixpricing (basis points)

Underlying NIM down 6bpts since Dec

· billion income $4 total over volatility NIM mix: of up headline and 53% assets derivative pricing only AIFRS NII Liquid inflating Asset

·

6bpts Underlying NIM: core lending & deposits E

(3)

(3)

3

Home loans Other

C C C

bpts 2

bpt bpts

1 3

Cash rate & deposit pricing:

C C C            C C 20 m) $ Cash rate benefit Deposit pricing            Deeming rate (Ç50bpts; Mix

bpts bpts bpts

4 3 3

bpts bpts

1 3

Liquid assets

AIFRS volatility

Asset pricing and mix

Cash rate & deposit pricing

(basis points)

group impact AIFRS volatility -

Other key information

Jun 07 vs Jun 06 4% 2% 8% 5% 15% 19% — 8 % 5% 5% 6% 6% 4% 7% 2% 10 % — Jun 06 627 366 968 1,961 74 195 338 607 701 561 1,306 2,568 1,181 198 46.0% 842

Australian Retail

Other key information 6 months Jun 07 vs Jun 07Dec 06Jun 06Jun 06

NIIHome Loans 650 644 6274% Consumer Finance 357 351 3662% Retail Deposits 1,046 1,061 9688% 2,053 2,056 1,9615%

Other incomeHome Loans 85 87 7415% Consumer Finance 233 191 19519% Retail Deposits 339 337 338- 657 615 6078%

BankingHome Loans 735 731 7015% incomeConsumer Finance 590 542 5615% Retail Deposits 1,385 1,398 1,3066% 2,710 2,671 2,5686%

Expenses 1,224 1,206 1,1814% Loan impairment 185 164 1987% Cost to income45.2%45.2%46.0%2%

Underlying profit after tax 928 912 84210%

40

Net interest income

Volume Margin NII

10 % 5% 5% C            CC

11%

Home loans Good volume growth:

9%

Deposits

400+ front line staff Offset by efficiency gains

Expense growth of 2% Improved branch sales performance in the second half

Sound credit quality

Notes

Australian Retail snapshot

APRA market shares

Home loans Household deposits Credit cards Personal loans

June 07 Market Share 18.5% 29.0% 18.8% 16.4%

Consumer loans include home loans, credit cards, personal loans *

Jun 06

deposit balances balances

Jun 07 1b

Saver Accounts Deposits Transactions Accounts Business Online Saver

Jun 07 vs Jun 06 11% 25% 16% 17% 12% 14% 14% 13% 11% 18% 15% 15% Jun 06 253 233 439 925 160 346 274 780 413 579 713 1,705 Dec 06 274 209 495 978 187 410 323 920 461 619 818 1,898 Jun 07 281 291 510 1,082 179 393 313 885 460 684 823 1,967 Corporate Banking Financial Markets * Lending & Finance            Corporate Banking Financial Markets * Lending & Finance            Corporate Banking Financial Markets * Lending & Finance NII            Other Income            Banking Income

Other key information

Other key information Jun 07Dec 06Jun 06 Jun 07 vs Jun 06 NIICorporate Banking28127425311% Financial Markets *29120923325% Lending & Finance51049543916% 1,08297892517% Other IncomeCorporate Banking17918716012% Financial Markets *39341034614% Lending & Finance31332327414% 88592078013% Banking IncomeCorporate Banking46046141311% Financial Markets *68461957918% Lending & Finance82381871315% 1,9671,8981,70515% Expenses90883381112% Loan impairment55203177% Cost to income46.2%43.9%47.6%3% Underlying profit after tax76776261724% * Excludes the impact of AIFRS volatility 44

Business, Corporate & Institutional

trading 40% 17% C 14%

C C investment spend on strategic initiatives 338 new front line staff in business banking Strong asset growth of 20% NII OBI Core lending and deposits margin stable over the year Record CommSec volumes, margin lending balances Expenses growth driven by:

Notes

Business, Corporate & Institutional snapshot

Institutional Banking *

$bn

$bn

Banking Products * (CFS, LBB, Agribusiness)

Other key informationNotes

6 months Jun 07Dec 06Jun 06Jun 07 vs ASB: New Zealand NZ$m a$m$m$mJun 06 Net interest income45343741210% Other income1651681724% Total operating income6186055846% Operating expenses2662672526% Loan impairment144956% Net profit before taxation3383343235% Income tax10299984% Underlying profit after tax2362352255% New Zealand Dollar 1.121.161.16 Exchange rate (avg) b

a Statutory basis and excludes hedging volatility b Hedging during the period may mean effective rate is different

Asia Pacific

ASB contributed $374mJun 07Jun 07 vs $mJun 06 ASB NPAT C8% in NZD Net interest income7646% excluding the impact of Other banking income3181% hedging Total banking income1,0824% ASB NII C8%Operating expenses5151% Lending assets C 16% Loan impairment1810% Margin E10bpts (largely 1H07)Tax1591% Weaker NZD Underlying profit after tax39010%

Significant hedging volatility Hedging & AIFRS volatility59Large separately disclosed

Assets

Liabilities

Assets

Liabilities

* average interest earning assets and interest bearing liabilities Global Markets Recent industry rankings demonstrates momentum

Private Client Services

Other key information Loan impairment expense to avgRWA (annualised) 0.20%0.19%

0.19% 0.19% 0.20%0.20% 0.17% 0.15%0.16%

Credit -maintained high standards Loan impairment expense as % of Gross impaired assets to RWA RWA down on last year at 0.19% 1.20% (06: 0.20%)1.00% 0.80% Limited private equity participationCBA ANZ 0.60% NAB No exposure to CLO’s / CDO’s, 0.40%WBC or material direct exposure to US 0.20% subprime0.00% DecJun            Dec            JunDecJunDecJunDecJunDecJun 0102 02 030304040505060607 67% of commercial loans investment gradeIndividually assessed provisions as a % of advances Improving unsecured retail lending 25 risk profile 20 Low doc loans (2.3% of home bpts 15 loans)10 5 On market value, 75% of home loans 60% LVR and most 80% 0 FY03FY04FY05FY06FY07 LVR insured ConsumerCommercial

51

Other key information FirstChoice Funds Under Administration 6 months balance & market share FUA market share: Plan for Life All Master Funds Jun 07Dec 06Jun 06 - -Administrator View FUA Av. FUA ($bn)171158148 $m Spot. FUA ($bn)177168152 40,00010.0% 51% Margins 9.0% Operating income/ av. FUA1.161.131.1435,000 Net income/ av. FUA0.980.950.978.0% 30,000 7.0% Expenses 25,000 Operating expenses/ av.FUA0.720.710.726.0% Operating expenses to net income55.356.157.3 20,0005.0% Market shares*4.0% 15,000 Retail Administrator view14.2%15.4%15.4% 3.0% First Choice Platforms8.5%8.2%7.7%10,000 2.0% Breakdown of funds invested5,000 1.0% Local equities22.3%22.8%22.4% International equities24.1%24.2%22.5%00.0% Listed and direct property18.5%17.9%17.9%Jun 02Dec 02Jun 03Dec 03Jun 04Dec 04Jun 05Dec 05Jun 06Dec 06Jun 07 Fixed interest and cash35.1%35.1%37.2% Total100.0%100.0%100.0% FirstChoice FUAFirstChoice FUA Market Share %

* Plan for Life -March 07

Funds Management FUA C17% to $177bn Jun 07Jun 07 vs Margins stable$mJun 06 Largest retail share (14.2%) Net income *1,59820% First Choice C51% over last 12 Shareholder investment months to $40bn14- returns AWG sell down progressing well, Funds management 13% prior to June 07, another 1,61220% income 4% in July Operating expenses89016% Strong investment in business: Tax & minority interests23239% developing GAM capability Cash NPAT49020% platform & advice leadership Underlying NPAT49223% cross sell initiatives * Net of volume related expenses

53

Other key informationNotes 6 months Jun 07Dec 06Jun 06 Claims expense as % of net earned premium General insurance68%50%57% Life insurance44%47%41%

Sources of profit$M$M$M Planned profit margins909477 Experience variations49729 Other00(2) General insurance operating margin3108 Operating margins142111112 After tax shareholder investment returns405820 NPAT (cash)182169132

Breakdown of Shareholders’ Funds Local equities1%1%2% International equities1%1%1% Property20%19%17% Growth22%21%20% Fixed interest35%25%29% Cash43%54%51% Income78%79%80% Total100%100%100%

54

Insurance Inforcepremiums C21% Jun 07Jun 07 vs $mJun 06 a Planned profit margins C26% Net income b63519% Australia total risk market share Shareholder investment 13557% Cto 14.2% (June 06 13.2%)returns Total insurance income77024% “Life Insurer of the Year”-Aust & NZ Insurance Industry Operating expenses28210% Awards Tax13734%

General insurance result Cash NPAT35134% affected by NSW stormsUnderlying NPAT25323%

a            Excludes impact of sale of Hong Kong Insurance business in 2006 b            Net of volume related expenses

55

Jun 04Dec 04Jun 05 Dec 05 Jun 06 Dec 06 Jun 07

Expense126 146176 188 210195239

• ^st self- 1 (excluding ranked debt transactions) Australian funded

• ^th • 7 • ^th ranked7 • )) ^thth

· Markets 14 ranked 28 ranked            Issuance ranked Capital Equity (previously            Equity (previously

·

Jun 06

Jun 07

Asia Pacific

16% 10bpts 8% in NZD C E C 8% C Lending assets Margin (largely 1H07) Weaker NZD

Capital treatment AIFRS APRAS&P AccountingTier 1Tier 2TotalACE Shareholders’ Equity Ordinary Share Capital3 3 3 3 Other Equity Instruments 3 3 3 Reserves General Reserve & Capital Reserve3 3 3 3 GRCL3 3 3 Asset Revaluation Reserve3 3 3 Other reserve accounts3 Retained Earnings3 3 3 3 Minority Interests3 3 3 Hybrid Debt Issues & Loan Capital3 3 Other debt issues (subordinated)3 3 Collective & other credit provisions3 3 AIFRS transitional relief (T1 & T2)3 3 3 Capital Deductions Intangibles3 3 3 Superannuation Surplus (after tax)3 3 3 Equity investments in other companies3 3 Value of acquired inforce business3 Investments in offshore banks3 3 Other Deductions3 3 Note: This table is a summary. For the full reconciliation, refer Appendix 13 “Capital Adequacy” on pages 47-50 of the June 2007 Profit Announcement

Strong capital position 11% Total 9.76%*Capital 9.66%9.78% 1 Jan 2008 should see:10% Target Range Basel II advanced accreditation 9% end of AIFRS capital transition8% clarity on APRA capital needs7.56%Tier 1 7% 7.14%*Target 7.06% Range 6% After balance date raised $1,465m 5%ACE through PERLS IVTarget 4%Range non-innovative Tier 1 3% cost effective funding 4.70%4.79% (BBSW-120bpts)2%4.39% 1%

More sophisticated economic 0% capital approachJul 2006Dec 2006Jun 2007 Adjusted Common EquityTotal Capital Tier one capitalTarget Range * PERLS IV issue completed in July 2007 ($1,465m) would add 58bpts to June 2007 Tier 1 and 59bpts to the Total Capital Ratio

59

Notes

Summary Double digit profit growth from all business segments Continuing to invest for future growth and productivity Australian Retail market share improvements in second half Significant opportunities still exist in Business, Corporate and Institutional Investment in Funds Management and Insurance driving strong performance Credit quality and capital position remain strong

Notes Jun 07 Jun 08 ActualForecast * Housing credit13.2%13-15% Other personal credit15.3%8.5-10.5% Business credit18.7%14-16% * CBA economist forecast for the Australian market as at July 2007

Outlook Economic outlook for Australia remains positive Housing credit growth expected to remain at similar levels to 2007 Some slowing expected in business and personal credit growth Financial services industry will remain competitive Given outlook and business mix, expect EPS growth to meet or exceed average of peers

Commonwealth Bank of Australia ACN 123 123 124 RESULTS PRESENTATION FOR THE FULL YEAR Ended 30 June 2007 Ralph Norris CHIEF EXECUTIVE OFFICER David Craig CHIEF FINANCIAL OFFICER 15 August 2007

Supplementary materials

Economy 67

GDP, unemployment and cash rates

68

Credit growth 69

Spreads Aus. BBB Corporates ~ 35bp over swaps US BBB Corporates ~ 50bp over swaps

Group 71

Fully franked dividends Dividend (cents per share) 68 69 79 85 82 85 104 112 107 94 149 130 0 40 80 120 160 200 240 2002 2003 2004 2005 2006 2007 Cents Second Half First Half Payout Ratio (cash basis) 73.9% 73.9% 74.9% 71.0% 73.0% 72 7% 5,994 6,427 Total operating expenses 8% 406 373 Other 6% 307 326 Advertising, marketing etc 1% 216 213 Postage and stationery 691 907 688 3,229

Jun 07 $m 636 985 621 2,823 Jun 06 $m 9% Fees and commissions 8% IT Services 11% Occupancy and equipment 14% Staff expenses Jun 07 vs Jun 06 Comparable expenses 12 months

Expenses

Banking 74

AIFRS impact of non trading derivatives (24) 61 Net impact – after tax 88 (19) 107 Jun 07 (33) Net impact – pre tax (79) Other banking income 46 Net interest income Jun 06 12 months (25) 85 Net impact – after tax (34) 122 Net impact – pre tax (63) 44 Other banking income 29 78 Net interest income Jun 07 Dec 05 6 months 75

Banking revenue by product Consumer Finance 11% Corporate Banking 9% Financial markets 13% Asia Pacific 10% Home Loans 14% Other 1% Lending & Finance 16% Retail Deposits 26% 6 months

Jun 07 Dec 06 Jun 06 Jun 07 vs Jun 06 Home Loans 735 731 701 5% Consumer Finance 590 542 561 5% Retail Deposits 1,385 1,398 1,306 6% Corporate Banking 460 461 413 11% Financial Markets 684 619 579 18% Lending & Finance 823 818 713 15% Asia Pacific 551 531 537 3% Other (incl. Hedging and AIFRS volatility) 77 63 40 93% Total Banking Income 5,305 5,163 4,850 9% 76

Summary — CBA growth vs market* 12 months to June 2007 Market Home lending Household deposits Personal lending 10.5% 9.2% 11.7% 13.7% 11.4% 0.0% 5.0% 10.0% 15.0% CBA WBC ANZ NAB SGB 2.0% 7.6% 18.5% 7.2% 12.2% 0.0% 5.0% 10.0% 15.0% 20.0% CBA WBC ANZ NAB SGB 22.5% 19.4% 13.2% 24.3% 11.1% 5.0% 10.0% 15.0% 20.0% 25.0% CBA WBC ANZ NAB SGB 12.8% 8.7% 19.9% 8.4% 11.3% 16.8% 7.7% 8.8% Top 5 7.3% 10.4% 8.6% 10.6% 8.9% 0.0% 6.0% 12.0% CBA WBC ANZ NAB SGB * APRA, RBA stats Credit cards (as at May 07) 77

Summary — CBA growth vs market* 6 months to June 2007 Market Home lending Credit cards (as at May 07) Household deposits Personal lending 6.7% 5.4% 6.5% 7.5% 7.0% 0.0% 5.0% 10.0% 15.0% CBA WBC ANZ NAB SGB 2.6% 1.5% 8.8% 0.8% 0.6% 0.0% 5.0% 10.0% 15.0% CBA WBC ANZ NAB SGB 15.2% 13.5% 10.6% 12.2% 11.4% 5.0% 10.0% 15.0% 20.0% CBA WBC ANZ NAB SGB 6.6% 2.7% 15.1% 0.7% 6.6% 12.4% 1.8% 1.3% Top 5 1.5% 0.5% 1.1% 2.6% 0.7% 0.0% 5.0% CBA WBC ANZ NAB SGB * APRA, RBA stats 78

Home lending statistics (domestic balances gross of securitisation) * Care – Prior periods restated for classification changes between periods Home loans (domestic) Jun 07 Dec 06 Jun 06 Jun 07 vs Jun 06 Domestic growth profile ($bn) Loan funded 27.1 25.1 24.8 9% Reduction 16.5 19.1 16 3% Net growth 10.6 6.0 8.8 20% Total Home lending assets ($b) Australian home lending assets ($b) 161.4 150.8 144.8 11% Securitisation ($b) (15.6) (10.8) (12.6) 24% Net (Australia) 145.8 140 132.2 10% Asia Pacific home lending assets ($b) 28.9 25.9 22.3 30% Totals (adjusted for rounding) 174.7 165.9 154.5 13% Balances mix (%) : Jun 07 Dec 06 Jun 06 Owner occupied 55% 55% 55% Investment home loans 34% 35% 35% Line of credit 11% 10% 10% Variable 62% 62% 64% Fixed * 29% 27% 24% Honeymoon * 9% 11% 12% Originations (% of loans funded) : * 3rd Party 35% 34% 32% Proprietary 65% 66% 68% Broker originated loans as % of Aust. Book 28% 26% 24% 79

Home loan balance growth by channel (half year) 13.3% 11.5% 14.8% 5.4% 3.0% 4.7% 3.3% 0.01% 2.8% 7.0% 4.1% 6.5% 6.6% 5.8%* 7.1% 0% 2% 4% 6% 8% 10% 12% Brokers Branch Premium Total CBA Total Market Dec 06 20% Jun 06 * Prior period number restated by APRA Jun 07 80

Home loan portfolio – stress tested

Stress test scenario consistent with experience

of UK recession of the late 1980s / early
1990s.

Up to 6 fold increase in PD, due to

unemployment of 10% & interest rates of
14%

Up to 30% fall in security value
Under current conditions, 1 year HL expected

loss at around $12m

Under most stressed conditions, expected loss

totals $299m = 3 months home loan net income. This has decreased from $307m at the last Stress Test. The slight reduction in expected loss under the current and stressed case is attributed to general levelling out of property prices in Sydney and continued appreciation elsewhere across Australia.

Additional insured losses of $265m covered by

mortgage insurance Property value x6 x4 x2 x1 Expected loss $m 298.8 239.2 156.6 107.2 30% decrease 161.0 130.0 87.0 60.9 20% decrease 72.0 59.0 40.7 29.2 10% decrease 27.1 22.6 16.1 11.8 No decrease PD stress factor Market value stress Note: PD = Probability of default Excludes lines of credit 81

Home loans – LVR profile LVR profile Australian Owner Occupied and Investment Housing only, excludes Lines of Credit Number of loans as at 31 Dec 06 and market value as at 31 Dec 06 Market value marked against the APM database

Strong LVR profile % of loans at <60% LVR: 68% if based on original

security value

75% if based on current

market values

There has been some

shift towards the 60-75%

LVR group, from the lower and higher value groups

The majority of loans

>80% LVR are mortgage insured18 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0-60 60.1-75 75.1 -80 80.1 -90 90.1+ LVR on orginal security value LVR at current market value 82

Summary Jun 07 Dec 06 Jun 06 RWA $245,347 $234,569 $216,438m Charge for bad debts (6 mths) $239m $195m $210m Charge for loan impairment to RWA (annualised) 0.20% 0.17% 0.20% Gross impaired assets $421m $338m $326m Individually assessed provisions $199m $171m $171m Collective provisions $1,034m $1,040m $1,046m General Reserve for credit losses within shareholders equity (pre-tax) $500m $500m $500m Prudential General Reserve for Credit Losses to RWA 0.63% 0.68% 0.71% Credit Risk Statistics Commercial portfolio Top 20 commercial exposures (as % of total committed exposure) 2.6% 2.5% 2.5% % of all commercial exposures that are investment grade or better 67% 67% 68% % of non-investment grade exposure covered by security 82% 82% 83% Consumer portfolio Home lending as % of gross lending 54% 55% 55% 83

Home loans – portfolio quality 30+ & 90+ day delinquencies

Portfolio credit quality remains

sound

In line with seasonal

expectations, delinquencies have improved in the last few months

Home Loan collection is

focusing on higher risk loans

Significant differences have

been observed across states with NSW/ACT being the highest, and WA the lowest 0.00% 0.20% 0.40% 0.60% 0.80%

1.00% 1.20% 1.40% $30+ Delinquency by State 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Month $30+ (%) NSW/ACT QLD SA/NT VIC/TAS WA All Australian owner occupied and investment housing only, excludes lines of credit delinquency percentage uses balances 30+ delinquencies by state 30+ days delinquency 90+ days delinquency Jun 03 Sep 03 Dec 03 Mar 04 Jun 04 Sep 04 Dec 04 Mar 05 Jun 05 Sep 05 Dec 05 Mar 06 Jun 06 Sep 06 Dec 06 Mar 07 Jun 07 84

0 1 00 2 00 3 00 4 00 5 00 6 00 7 00 8 00 9 00 1 ,000 1 ,100 1,200 Ratin g BBBBBBABBBBBB A BBB+ BBBBBB BBB+ ABBB BBB+ A+ A BBB BBB+ AA B

Banking — Top 20 commercial exposures ($m) Top 20 exposures – excludes finance and government – comprise 2.6% of committed exposures (2.5% as at Dec 06, 2.7% as at Jun 06) S&P Rating or Equivalent 85

The Bank remains well provisioned 0 300 600 900 1,200 1,500 1,800 2,100 Jun 96 Dec 96 Jun 97 Dec 97 Jun 98 Dec 98 Jun 99 Dec 99 Jun 00* Dec 00* Jun 01 Dec 01 Jun 02 Dec 02 Jun 03 Dec 03 Jun 04 Dec 04 Jun 05 Dec 05 Jun 06 Dec 06 Jun 07 0 50 100 150 200 250 300 350 400 450 500 550 % General Reserve for Credit Loss (LHS) Collective Provision (LHS) Individually Assessed Provision (LHS) Total Loan Provisions + General Reserve / Gross Impaired Assets (RHS) * Colonial acquisition $millions 1. The Group GRCL within shareholders equity has been retained as part of the Prudential General Reserve for Credit Losses for prudential reporting purposes 2. Loan Impairment provisions have been recalculated under AIFRS from 1 July 2005 (1)

(2) (2) 86

Banking — Quality of commercial riskrated exposures Quality of commercial risk-rated exposures: There is security over 82% of the non-investment grade exposure 30 35 32 32 29 31 30 30 18 22 20 17 17 17 15 16 16 16 17 20 20 36 33 34 34 33 32 33 33 18 17 17 0% 20% 40% 60% 80% 100% AAA/AA A BBB Other Dec 03 Dec 04 Jun 04 67% investment grade Jun 05 Dec 05 Jun 06 Dec 06 Jun 07 87

Banking — total geographic exposure* (commercial + consumer) Total exposure : $463b Home loans = $174.7 b (excl securitised) Other balance sheet loans = $146.95 b Other exposure = $141.35 b At 31 Dec 06 Total exposure = $443b Home loans = $166.0b Other loans = $133.3b Other exposure = $143.7b International = 14% New Zealand = 13% Australia = 73% *Total exposure = balance for uncommitted, greater of limit or balance for committed Australia 73% International 14% New Zealand 13% 88

Banking — total outstandings* (commercial + consumer) Total outstandings $377.8 b* * Represents balances actually outstanding (on and off balance sheet). At 31 Dec 06 Total outstanding = $359.0b Consumer = 49.4% Telecoms = 0.2% Agriculture = 2.6% Construction = 1.0% Energy = 1.4% Finance = 24.0% Government = 1.8% Leasing = 1.5% Motor vehicle manufacturing = 0.1% Other commercial & industrial = 17.9% Technology = 0.1% Finance 25.7% Leasing 1.3% Motor vehicle manufacturing 0.1% Other C&I 18.1% Technology 0.2% Consumer 48.1% Government 1.4% Agriculture 2.7% Telecommunication 0.1% Construction 1.1% Energy 1.2% 89

Banking – international commercial exposures* Aviation Technology Telcos Energy Leasing Construction Automobile International exposure by Industry Total exposure : $65.7b *Total exposure = balance for uncommitted, greater of limit or balance for committed. Excludes ASB Total non-finance off-shore outstandings = $12.7b of which over 84% are investment grade. At 31 Dec 06 Total exposure = $62.4b Finance = 80% Government = 2% Other commercial = 13% Specific industries = 5% Finance 80% Specific Industries 5% Other Commercial 13% Government 2% 90

Banking credit exposure — agriculture sector 11,574 6,289 3,202 1,849 234

$m 30 Jun 07 30 Jun 06 31 Dec 06 11,011 5,987 3,155 1,614 255 $m 10,152 TOTAL 5,477 < BB- 3,022 BB to BB- 1,320 BBB+ to BBB- 333 AAA to A- $m Rating Total exposure: $11,574m **Illustrates Australia and NZ component only of Agriculture sector. At 31 Dec 06 Total exposure = $11,011m Australia = 60% New Zealand = 40% *Total exposure = balance for uncommitted, greater of limit or balance for committed. New Zealand 41% Australia 59% 91

Banking credit exposure — aviation sector 3,737 58 94 2,633 952 $m 30 Jun 07 30 Jun 06 31 Dec 06 3,828 70 70 2,561 1,127 $m 3,087 TOTAL 118 < BB- 313 BB to BB- 1,516 BBB+ to BBB- 1,140 AAA to A- $m Rating Total exposure: $3,737m At 31 Dec 06 Total exposure = $3,828m Australia = 75% New Zealand = 11% Other = 14% *Total exposure = balance for uncommitted, greater of limit or balance for committed. Other 14% New Zealand 11% Australia 75% 92

Banking credit exposure — energy sector 6,842 142 468 5,441 791 $m 30 Jun 07 30 Jun 06 31 Dec 06 7,027 206 503 5,178 1,140 $m 6,889 TOTAL 292 < BB- 408 BB to BB- 4,588 BBB+ to BBB- 1,601 AAA to A- $m Rating Total exposure: $6,841m At 31 Dec 06 Total exposure = $7,027m Australia = 67.0% New Zealand = 10.9% Asia = 3.2% Europe = 16.2% Americas = 2.7% *Total exposure = balance for uncommitted, greater of limit or balance for committed. Australia 65.3% Americas 6.1% Europe 14.9% Asia 3.3% New Zealand 10.4% 93

Banking credit exposure — telcos sector 663 80 89 128 366 $m 30 Jun 07 30 Jun 06 31 Dec 06 990 71 192 134 593 $m 1,391 TOTAL 108 < BB- 150 BB to BB- 277 BBB+ to BBB- 856 AAA to A- $m Rating Total exposure: $663m At 31 Dec 06 Total exposure = $990m Australia = 75% New Zealand = 6% Europe = 12% Asia = 8% *Total exposure = balance for uncommitted, greater of limit or balance for committed. Asia 11% Europe 0% New Zealand 12% Australia 77%

Funds Management & Insurance 95

Investment performance Number of funds in each asset class out performing benchmark (3 years) 100% 87% 100% 60% 83% 50% 74% 78% 67% 0% 20% 40% 60% 80% 100% 120% Domestic Equities Global Resources Property Trusts Fixed Interest Cash Hedge funds CFS Property FSI Total 96

Other key information 17 177,071 23,795 1,763 151,513 Total – funds under administration (36) 5,875 2,040 (5,363) 9,198 Avanteos 20 171,196 21,755 7,126 142,315 Funds under administration (Excl Avanteos) 36 39,936 8,342 2,133 29,461 Internationally sourced 16 131,260 13,413 4,993 112,854 Domestically sourced (2) 7 16 20 82 19 (2) (15) 51 Growth YOY % (472) (1,397) 2,865 3,997 155 3,842 (4,669) (685) 9,196 Netflows $m 3,635 399 3,708 Other d 14,843 2,331 13,909 Property 34,469 1,789 29,815 Wholesale 78,313 8,894 65,422 Australian retail 76,697 8,319 64,536 Retail products b 886 34,669 3,690 26,177 Opening balance Jun 06 $m 575 4,022 125 4,172 Investment income & other e $m 1,616 Other retail c 34,022 Legacy products a 3,130 Cash management 39,545 FirstChoice Closing balance Jun 07 $m Funds Under Administration a Includes stand alone retail and legacy retail products b Retail products (excluding Avanteos) align to Plan for Life market releases c Includes listed equity trusts and regular premium plans. These retail products are not reported in market share data d Includes life company assets sourced from retail investors but not attributable to a funds management product (e.g. premiums from risk products). These amounts do not appear in retail market share data e Includes foreign exchange gains and losses from translation of internationally sourced business Full Year Ended 30 June 2007

Capital Management 98

ACE calculation * Net of intangible component deducted from Tier One capital Jun 07 Dec 06 Jun 06 Adjusted Common Equity * $m $m $m Tier One capital 17,512 16,553 16,354 Add: Deferred income tax 37 39 - Equity investments in other companies 700 820 - Deduct: Eligible loan capital (245) (263) (281) Other hybrid equity instruments (3,474) (3,522) (3,659) Minority interest (net of minority interest component deducted from Tier One capital) (512) (508) (508) Investment in non-consolidated subsidiaries (net of intangible component deducted from Tier One capital) (409) (283) (2,012) Other deductions (178) (166) (151) Impact upon adoption of AIFRS (1,641) (1,641) - Total Adjusted Common Equity 11,790 11,029 9,743 Risk Weighted Assets (S&P) 246,047 234,569 216,438 Adjusted Common Equity Ratio 4.79% 4.70% 4.50% Credit Ratings Long Term Short Term Affirmed/Upgraded Standard & Poors’ AA A-1 + Feb 07 Moody’s Investor Services Aa1 P-1 May 07 Fitch Ratings AA F1+ Feb 07 99

ACE movement in half year ended June 2007 4.70% (0.05%) (0.22%) 0.11% 0.20% (0.79%) 0.95% (0.11%) 4.79% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% ACE Dec 2006 $11,029m Cash NPAT $2,333m Growth in RWA ($11,478m) ACE Jun 2007 $11,790m Ordinary Dividends ($1,939m) Other c ($262m) Investment in non consolidated subsidiaries ($126m) DRP a $485m DRP b $270m a June 2007 final dividend (25% participation) b Additional DRP take up on interim 2007 dividend c Primarily reflects statutory adjusted profit items and higher intangibles 100

Tier 1 movement in half year June 2007 7.06% 0.95% (0.79%) (0.31%) 0.20% 0.11% (0.08%) 7.14% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% Tier 1 Dec 2006 $16,553m Cash NPAT $2,333m Ord. Dividends ($1,939m) Growth in RWA ($10,778m) DRP a $485m Currency and Other Movements c ($190m) Tier 1 Jun 2007 $17,512m a June 2007 final dividend (25% participation) b Additional DRP take up on interim 2007 dividend c Primarily reflects statutory adjusted profit items and foreign exchange movement. d PERLS IV issue completed in July 2007 ($1,465m) would increase the June 2007 Tier 1 ratio to 7.72% d DRP b $270m 101

Hybrid instrument information Preference shares — breakdown Hybrid dividends Issue Date Currency Amount ($M) Maturity Balance Sheet Classification Trust Preferred Securities 2003 06-Aug-03 USD $550 12 years Tier 1 Loan Capital PERLS II 06-Jan-04 AUD $750 Perpetual Tier 1 Loan Capital PERLS III 06-Apr-06 AUD $1,166 Perpetual Tier 1 Loan Capital PERLS IV 12-Jul-07 AUD $1,465 5 years Tier 1 Loan Capital Trust Preferred Securities 2006 15-Mar-06 USD $700 10 years Other equity instruments ASB Capital prefs 10-Dec-02 NZD $200 Perpetual Outside equity interests ASB Capital No.2 prefs 22-Dec-04 NZD $350 Perpetual Outside equity interests CBA Capital 18-May-05 NZD $350 10 years Tier 2 Loan Capital Jun 07 Dec 06 Jun 06 Franked/ Imputed PERLS I — - 13 PERLS II 19 19 18 F PERLS III 31 29 13 F Trust Preferred Securities 2003 17 21 22 N/A Trust Preferred Securities 2006 27 27 — N/A ASB Capital prefs 5 5 5 I ASB Capital No.2 prefs 9 8 8 I CBA Capital 10 8 8 F 117 117 87

Commonwealth Bank of Australia ACN 123 123 124 RESULTS PRESENTATION FOR THE FULL YEAR Ended 30 June 2007 Ralph Norris CHIEF EXECUTIVE OFFICER David Craig CHIEF FINANCIAL OFFICER 15 August 2007

EX-99.5

15 August 2007
Financial Result

ASB RECORDS STRONG RESULT IN COMPETITIVE MARKET

ASB countered a slowing economy and a competitive market by focusing on both customer service and writing quality business across all segments, albeit at ‘sharper’ margins.

The Bank has posted an increased net profit after tax of $480m for the financial year ending 30 June 2007, up 9% on the prior year (after excluding accounting gains arising from the application of NZ IAS 39 -Financial Instruments: Recognition and Measurement). Total Assets grew by 19% to $52.9 billion, exceeding $50 billion for the first time.

Chairman Gary Judd said ASB’s result was ‘positive and strong’, especially in the context of the slowing New Zealand economy and financial services industry growth.

“Exceeding the $50 billion mark in total assets was a ‘remarkable achievement’ given that ASB has evolved from being a modest, regional savings bank with assets of less than $2 billion back in 1988 to the nationally operating, full service financial institution it is today,” said Mr Judd.

“It is also a fine milestone to achieve in our 160 ^th anniversary year.

“We have continued to focus on customer service, writing quality business and being extremely competitive across the entire corporate, business, rural and personal banking range of products.

“Reflecting the competitive environment, average net interest margin declined from 1.93% to 1.83%. This has given some relief to customers from the effects of higher interest rates.

“Non interest income was steady at $343m, a reflection of both increased business levels and our customers benefiting from the new transaction account offerings launched during the year. Increased use of Treasury products by our Corporate, Business and Rural customers also contributed to this result.

“At the same time as growing the business, we continued to focus on efficiency, the ratio of operating expenses to operating income remaining steady at 43%.

“Impairment losses were slightly below 2006 levels and, at $18m, continue to reflect the strong focus on credit management and the high quality of ASB’s loan book.

“Over the past 12 months we continued to hold our significant share of the housing loan market, advancing a net $4.15 billion to home buyers, while deposits increased by 16% to $47.8 billion at year end.

“FastSaver, our on-line savings account, passed another milestone in January 2007 with $4 billion of deposits and account numbers growing to over 300,000.

“This year marks the 10^th anniversary of ASB’s introduction of New Zealand’s first internet banking service – Fastnet. Over the past decade Fastnet Classic has attracted more than 500,000 customers and processed more than 450 million transactions.”

During the year ASB opened four new branches – in Masterton, Newmarket (Auckland), Papamoa (Mt Maunganui) and the Remarkables (Queenstown). SmartPhones, PDAs and Pago were also added to ASB’s line-up of technology based services.

The Bank has commenced its new financial year with the launch of ASB Kiwisaver to New Zealand investors and initial interest has been strong. ASB Kiwisaver offers a diversified range of investment options for retirement, and is managed by ASB Group Investments Limited.

For further information please contact:
Hugh Burrett — Managing Director, ASB on 021 736 816
Linley Wood — Head of Corporate Affairs on 021 221 2121

Issued on behalf of ASB by Network PR.

EX-99.6

ASB Bank Limited
Consolidated Performance in Brief

										Previous			Previous
	NZ IFRS			NZ IFRS			NZ IFRS			NZ GAAP			NZ GAAP
For the year ended 30 June	2007			2006			2005			2004			2003
INCOME STATEMENT ($ MILLIONS)
Interest Income		3,816			3,210			2,682			2,099			1,899
Interest Expense		2,926			2,406			1,906			1,411			1,282
Net Interest Earnings		890			804			776			688			617
Other Income		420			344			268			249			234
Total Operating Income		1,310			1,148			1,044			937			851
Impairment Losses on Advances		18			19			16			21			25
Total Operating Income after Impairment Losses		1,292			1,129			1,028			916			826
Total Operating Expenses		533			495			470			446			407
Net Profit before Taxation		759			634			558			470			419
Taxation		227			194			179			153			141
Net Profit after Taxation *		532			440			379			317			278
BALANCE SHEET ($ MILLIONS)
Total Assets		52,893			44,568			38,796			33,048			27,538
Advances (includes Money Market Advances and Advances to Customers before Collective Provision for Impairment)		45,204			39,034			34,978			28,789			22,297
Collective Provision		84			79			123			108			89
Specific Provisions		7			1			9			9			10
Total Liabilities		49,773			41,879			36,527			31,452			26,228
Deposits (includes Money Market Deposits, Deposits from Customers and Amounts Due to Other Banks)		47,792			41,066			36,050			30,832			25,621
SHAREHOLDER’S EQUITY ($ MILLIONS)
Shareholder’s Equity at End of Year		3,120			2,689			2,269			1,596			1,310
Dividends: Ordinary		825			860			43			25			195
Perpetual Preference		31			30			16			10			6
PERFORMANCE
Return on Ordinary Shareholder’s Equity *		21.3	%		21.3	%		23.3	%		24.5	%		25.4	%
Return on Total Average Assets		1.1	%		1.1	%		1.1	%		1.1	%		1.1	%
Net Interest Margin as % of Total Average Assets		1.8	%		1.9	%		2.2	%		2.3	%		2.4	%
Total Operating Expenses as % of Total Operating Income *		40.7	%		43.1	%		45.0	%		47.7	%		47.9	%
Growth in Total Assets		18.7	%		14.9	%		17.4	%		20.0	%		13.6	%
PRUDENTIAL
Shareholder’s Equity as a Percentage of Total Assets		5.9	%		6.0	%		5.8	%		4.8	%		4.8	%
Tier One Capital as a Percentage of Total Risk Weighted Exposures		9.0	%		9.8	%		9.6	%		8.2	%		8.1	%
Total Capital as a Percentage of Total Risk Weighted Exposures		10.5	%		10.6	%		10.2	%		10.2	%		10.3	%

* Includes $52m in post tax accounting gains arising from the application of NZ IAS 39 Financial Instruments: Recognition and Measurement. ASB’s financial result media statement focuses on operational performance and exculdes this $52m.