CRITICAL REVIEW OF SHAREHOLDERS

Critical Review of Shareholders

Critical Review of Shareholders

Commonwealth Bank of Australia delivered 18% increase in cash profit. Shareholders rewarded with record $1.49 final dividend, up 15% on prior comparative period.

Commonwealth Bank of Australia / Shareholder Review 2008

The progress on our five key strategic priorities we have made significant progress in our four strategic priorities in financial year 2008 and also introduced fifth priority - profitable growth and that makes us different from the WESTPAC BANK.

Customer Service Our focus continues on embedding of Sales and Service through group's culture has begun to translate into tangible improvements in customer satisfaction. We have seen the significant improvement in customer satisfaction with retail bank in customer satisfaction Roy Morgan 5.6%, highest rating in the decade. We have also seen complaints of retail bank customers fell by 43% over 2007, and congratulations from customers increased by 23% for same period. The banking complaints have also declined.

Commercial banks have restructured our business we focus on different needs of our commercial customers. We have embarked on strategy of bank branches back to business for our SME customers, adding front-line staff in our media markets business, adding 63 bankers specializing in new locations, and provide access 24 / 7 phone our local banking business. Our technology platforms and CommBiz CommSee gives us ability to better meet needs of our customers. (WWF 2005)

Technology and Operational Excellence We plan to invest and build on successes we've had with our existing industry leading systems including Commsec, first choice, CommSee, CommBiz and NetBank. In last 12 months, our IT efficiency ratio improving as the goal achievement of international best practice. We successfully delivered significant number of projects to enhance customer service, increase operational efficiency and improve system reliability and security.

The confidence and team spirit we have seen high levels of participation and commitment of our people translates into improved results of internal survey of culture, with some of biggest improvements in area of retail banking. For years, workplace injury rates fell 30%, rate of voluntary employee turnover fell 13%, and absenteeism was down 7%. (Osborne 2009)

Profitable Growth We are looking for opportunities to improve our future growth. We have already identified number of times, including growth of our existing investments in Asia, further growth in Colonial First State Global Asset Management, expand our global business markets and expand cross-selling opportunities across Group. Retail in Australian banks

It performed strongly during 2008 with underlying NPAT up 10% to U.S. $ 1,840 million. This reflects strategic direction for profitable growth in competitive market, disciplined cost management and ongoing credit quality of sound. Among major initiatives during year includes introduction of new operating office model, continued revitalization of branch network, creating approximately 600 new frontline jobs customer service (October 2005), Sales and programs more effective training services and improvements in product range. (Environment Australia 2005)

Business, corporate and institutional

Delivered underlying NPAT of $ 1,529 million, an increase of 24% is there. Highlights of year included opening of eight new Business Banking Centers and recruitment ...