COMMONWEALTH BANK OF AUSTRALIA NEW ZEALAND OPERATIONS GENERAL DISCLOSURE STATEMENT

COMMONWEALTH BANK OF AUSTRALIA NEW ZEALAND OPERATIONS GENERAL DISCLOSURE STATEMENT For the year ended 30 June 2008

Commonwealth Bank of Australia NZ Operations General Disclosure Statement 30 June 2008 The Reserve Bank Orders in Council require Registered Banks licensed in New Zealand to produce a General Disclosure Statement prepared in accordance with the Financial Reporting Act 1993 and the Orders, and that such Statements be made available to the public on request. This General Disclosure Statement has been produced in compliance with those Orders and consists of two parts: Part A - Commonwealth Bank of Australia New Zealand Banking Group (the Banking Group ) General Disclosure Statement The New Zealand banking group of the Commonwealth Bank of Australia (the CBA ) comprises: CBA New Zealand Branch (the Registered Bank ) and various 100% owned CBA subsidiaries controlled by CBA New Zealand Branch. The CBA New Zealand Branch operates independently of the ASB Group operations within New Zealand and is a separately registered financial institution in terms of the Reserve Bank of New Zealand Act 1989. The registered bank for the purposes of this Disclosure Statement is CBA New Zealand Branch. CBA New Zealand Branch was issued a registered banking licence on 23 June 2000 AND ASB Banking Operations as disclosed in the ASB Bank Limited General Disclosure Statement, together with the immediate parent of ASB Bank Limited, ASB Holdings Limited, and ASB Funding Limited, a funding company for the CBA New Zealand Operations that is 100% owned by ASB Holdings Limited. ASB Holdings Limited is the ultimate holding company in New Zealand, owned as at the date of these financial statements, 100% by the Commonwealth Bank of Australia. The assets of ASB Holdings Limited consist mainly of its investments in Subsidiaries.

Part B - Commonwealth Bank of Australia New Zealand Life Insurance Group (the Life Group ) Disclosures The New Zealand life insurance activities of the Commonwealth Bank of Australia have not been included in the Banking Group General Disclosure Statement. Equivalent disclosures, where applicable, have been provided to assist interested parties to understand the entire New Zealand operations of the Commonwealth Bank of Australia. The Life Group is the aggregation of the life insurance activities of ASB Group (Life) Limited, The Colonial Mutual Life Assurance Society Limited New Zealand Branch, Colonial First State Investments (NZ) Limited, Colonial First State Investment Managers (NZ) Limited and Colonial Holding Company Limited New Zealand Branch.

COMMONWEALTH BANK OF AUSTRALIA NEW ZEALAND OPERATIONS PART A NEW ZEALAND BANKING GROUP GENERAL DISCLOSURE STATEMENT For the year ended 30 June 2008

Contents 1-5 General Disclosures 6 Historical Summary of Aggregated Financial Statements 7 Income Statement 8 Statement of Recognised Income and Expense 9 Balance Sheet 10 Cash Flow Statement 11-63 Notes to the Financial Statements 11-18 1 Statement of Accounting Policies 19 2 Interest Income 19 3 Interest Expense 19 4 Discontinued Activities 19-20 5 Other Income 20 6 Operating Expense Disclosures 20 7 Auditor's Remuneration 20 8 Taxation 20 9 Dividends 21 10 Cash and Call Deposits with the Central Bank 21 11 Due from Other Banks 21 12 Money Market Advances 21 13 Securities 22-23 14 Derivative Financial Instruments 24 15 Advances to Customers 24-31 16 Credit Risk Management and Asset Quality 31-32 17 Investments in Associates and Subsidiaries 32 18 Other Assets 32 19 Property, Plant and Equipment 33 20 Intangible Assets 33 21 Goodwill 34 22 Deferred Taxation (Liability) / Asset 34 23 Due to Other Banks 35 24 Money Market Deposits 35 25 Deposits from Customers 35 26 Other Liabilities 36-37 27 Subordinated Debt 38 28 Head Office Account and Contributed Capital 38 29 Asset Revaluation Reserves 38 30 Available for Sale Reserves 38 31 Cash Flow Hedge Reserves 39 32 Foreign Currency Translation Reserves 39 33 Retained Earnings 39 34 Minority Interests 40 35 Reconciliation of Net Profit after Taxation to Net Cash Flows from Operating Activities 40 36 Reconciliation of Cash and Cash Equivalents to the Balance Sheet 40 37 Imputation and Policyholder Credit Accounts 41-42 38 Related Party Transactions and Balances 43 39 Directors and Key Management Personnel 43-44 40 Credit and Capital Commitments, and Contingent Liabilities 44 41 Leasing and Other Commitments 45 42 Fair Value of Financial Instruments 46-52 43 Capital Adequacy 52 44 Securitisation, Funds Management, Other Fiduciary Activities and the Marketing and Distribution of Insurance Products 53 45 Financial Reporting by Segments 54-63 46 Risk Management Policies 63 47 Events after the Balance Sheet Date 64-66 Auditor's Report

General Disclosure Statement Commonwealth Bank of Australia New Zealand Banking Group This document comprises the General Disclosure Statement for the Commonwealth Bank of Australia New Zealand Banking Group (the "Banking Group") of Commonwealth Bank of Australia New Zealand Operations (the "CBA NZ Operations") and Commonwealth Bank of Australia New Zealand Branch (the "Registered Bank") as at 30 June 2008. The business of the Registered Bank comprises all banking business transacted in New Zealand through the New Zealand branch. This information is published in accordance with the Registered Bank Disclosure Statement (Full and Half-Year Overseas Incorporated Registered Banks) Order 2008 and pursuant to Section 81(1) of the Reserve Bank of New Zealand Act 1989. This document should be read in conjunction with the disclosures for Commonwealth Bank of Australia New Zealand Life Insurance Group (the "Life Group") of the CBA NZ Operations. GENERAL MATTERS 1.0 Registered Bank and Address for Service Commonwealth Bank of Australia New Zealand Branch Level 21, ASB Bank Centre 135 Albert Street Auckland New Zealand A copy of the Commonwealth Bank of Australia's most recent published Financial Statements will be available immediately upon a request being made to the above address. A copy of the Financial Statements may also be obtained from the Commonwealth Bank of Australia's website (www.commbank.com.au) in the Shareholder Centre. The Registered Bank has not published a supplementary disclosure statement because none of the information required to be disclosed applies to the Banking Group. 2.0 Overseas Bank and Address for Service The Overseas Bank is the Commonwealth Bank of Australia, domiciled in Australia. The Overseas Banking Group is the Commonwealth Bank of Australia including subsidiary activities worldwide. Commonwealth Bank of Australia Level 7 48 Martin Place Sydney Australia The Commonwealth Bank of Australia (the "CBA") operates as a public company under the Corporations Act in Australia. It has share capital and is governed by a constitution. CBA was converted from a statutory corporation to a public company on 17 April 1991. The CBA Group provides a wide range of banking, financial and related services including funds management and life and general insurance. The origins of the Bank lie in the former Commonwealth Bank of Australia which was established in 1911 by an Act of Parliament to conduct commercial and savings bank functions. These functions were gradually expanded under continued Government ownership until September 1991 when the Bank was partially privatised. In July 1996 the Commonwealth Government sold its remaining shareholding in the Bank. 3.0 Ranking of Local Creditors in a Winding-Up Under Section 13A(3) of the Banking Act 1959 of the Commonwealth of Australia, if an Authorised Deposit-taking Institution ("ADI") (which includes a bank) becomes unable to meet its obligations or suspends payment, the assets of the ADI in Australia are to be available to meet the ADI s deposit liabilities in Australia in priority to all other liabilities of the ADI. Section 16(1) and (2) of the Banking Act 1959 of the Commonwealth of Australia provides that, despite anything contained in any law relating to the winding up of companies, but subject to Section 13A(3) of the Banking Act 1959, the debts of an ADI to the Australian Prudential Regulation Authority ("APRA") in respect of APRA s costs (including costs in the nature of remuneration and expenses) of being in control of the ADI s business or of having an administrator in control of the ADI s business have priority in a winding up of the ADI over all other unsecured debts. Section 86 of the Reserve Bank Act 1959 of the Commonwealth of Australia provides that notwithstanding anything contained in any law relating to the winding up of companies, but subject to Section 13A(3) of the Banking Act 1959, debts due to the Reserve Bank of Australia by an ADI shall, in the winding up, have priority over all other debts due to the Commonwealth of Australia. The Commonwealth Bank of Australia is an ADI. 3.1 Requirement for Commonwealth Bank of Australia to maintain sufficient assets in Australia to cover an ongoing obligation to pay deposit liabilities in Australia Section 13A(4) of the Banking Act 1959 of the Commonwealth of Australia states that it is an offence for an ADI not to hold assets in Australia of a value that is equal to or greater than the total amount of its deposit liabilities in Australia, unless APRA has authorised the ADI to hold assets of a lesser value. This requirement has the potential to impact on the management of the liquidity of the New Zealand operations of the Commonwealth Bank of Australia in extreme circumstances. 1

4.0 Guarantee Arrangements The material obligations of the Commonwealth Bank of Australia are not guaranteed. 5.0 Directorate and Auditor On 16 May 2008 the appointment of Andrew Mohl to the Board of Directors was announced effective from 1 July 2008. There have been no other changes to Directors since the previous General Disclosure Statement (31 March 2008). 5.1 Address for Directors and the New Zealand Chief Executive Officer Directors New Zealand Chief Executive Officer Commonwealth Bank of Australia Commonwealth Bank of Australia New Zealand Branch Level 7 Level 21, ASB BANK Centre 48 Martin Place 135 Albert Street Sydney Auckland Australia New Zealand NEW ZEALAND CHIEF EXECUTIVE OFFICER Name Primary Occupation Residence External Directorships A.J. (Andrew) Woodward, Head of Institutional Banking NZ CBA BANK EXECUTIVE Auckland, New Zealand Nil 5.2 Directors of the Commonwealth Bank of Australia EXECUTIVE DIRECTOR Name Primary Occupation Residence External Directorships R.J. (Ralph) Norris DCNZM, FNZIM, FNZCS (Managing Director) CHIEF EXECUTIVE OFFICER New South Wales, Australia Nil INDEPENDENT DIRECTORS Name J.M. (John) Schubert, BE, PhD, Name C.R. (Colin) Galbraith, LLM FIE Aust, FTS, CP(Eng) (Chairman) LLB (Hons), AM Primary Occupation COMPANY DIRECTOR Primary Occupation COMPANY DIRECTOR Residence New South Wales, Australia Residence Victoria, Australia External Directorships G2 Therapies Limited, BHP Billiton Limited, External Directorships BHP Billiton Community Trust, OneSteel BHP Billiton Plc, Qantas Airways Limited, Limited, Australian Institute Great Barrier Reef Foundation of Company Directors Name J.S. (Jane) Hemstritch BSc, FCA, FCPA Name R.J. (Reg) Clairs AO Primary Occupation COMPANY DIRECTOR Primary Occupation COMPANY DIRECTOR Residence Victoria, Australia Residence Queensland, Australia External Directorships The Global Foundation, Tabcorp Limited External Directorships David Jones Limited, The Cellnet Group Name S.C.H. (Carolyn) Kay BA, LLB, FAICD Name F.D. (Fergus) Ryan Primary Occupation COMPANY DIRECTOR Primary Occupation COMPANY DIRECTOR Residence New South Wales, Australia Residence Victoria, Australia External Directorships Brambles Industries Limited, External Directorships Australian Foundation Investment Company Starlight Foundation Limited, Clayton Utz, National Australia Day Council, National Library of Australia Name Sir J.A. (John) Anderson KBE Name H.H. (Harrison) Young Primary Occupation COMPANY DIRECTOR Primary Occupation COMPANY DIRECTOR Residence Wellington, New Zealand Residence Victoria, Australia External Directorships Television New Zealand, New Zealand External Directorships Florey Neuroscience Institutes Cricket, International Cricket Council, The Asia Society, AustralAsia Centre, Capital Coast District Health Board The Financial Services Volunteer Corps Name D.J. (David) Turner FCA Name A.M. (Andrew) Mohl Primary Occupation COMPANY DIRECTOR Primary Occupation COMPANY DIRECTOR Residence New South Wales, Australia Residence New South Wales, Australia External Directorships Brambles Limited, Cobham plc External Directorships AMP Foundation AUDIT COMMITTEE The Board's Audit Committee consists of Fergus Ryan (Chairman), Colin Galbraith, Carolyn Kay, and David Turner. All members in the Audit Committee are independent directors. 2

5.0 Directorate and Auditor (continued) 5.3 Responsible Person G.H. (Hugh) Burrett Managing Director and Chief Executive Officer Auckland, New Zealand In Absence S.B. (Stewart) McRobie Head of Group Finance and Risk Management Auckland, New Zealand 5.4 Name and Address for Service of Auditor PricewaterhouseCoopers Chartered Accountants 188 Quay Street Auckland New Zealand PricewaterhouseCoopers replaced Ernst & Young as the appointed auditor of the Banking Group for the year commencing 1 July 2007. 5.5 Dealings with Directors There have been no dealings with Directors of any entities within the Banking Group or of Commonwealth Bank of Australia or parties related to these Directors on terms other than in the ordinary course of business. Refer to Note 39 for outstanding balances with Directors of entities within the Banking Group. A number of Directors of Commonwealth Bank of Australia have given written notices, stating that they hold office in specified companies and accordingly are to be regarded as having an interest in any contract or proposed contract that may be made between the Commonwealth Bank of Australia and any of those companies. Directors of entities within the Banking Group are required to table all possible conflicts of interest at the Board of Directors' meetings for those entities, and are required to abstain from any vote on those proceedings. Entities within the Banking Group comply with all requirements of the Companies Act 1993 in terms of registers and notices for Directors' conflict of interest. 6.0 6.1 Conditions of Registration - Commonwealth Bank of Australia New Zealand Branch (the "Registered Bank") as from 26 November 2007 The registration of the New Zealand branch of Commonwealth Bank of Australia (the "Registered Bank'') is subject to the following conditions: 6.2 That the Banking Group does not conduct any non-financial activities that in aggregate are material relative to its total activities, where the term material is based on generally accepted accounting practice, as defined in the Financial Reporting Act 1993. 6.3 That the Banking Group's insurance business is not greater than 1 percent of its total consolidated assets. For the purposes of this condition: (i) Insurance business means any business of the nature referred to in section 4 of the Insurance Companies (Ratings and Inspections) Act 1994 (including those to which the Act is disapplied by sections 4(1)(a) and (b) and 9 of that Act), or any business of the nature referred to in section 3(1) of the Life Insurance Act 1908; (ii) In measuring the size of the Banking Group's insurance business: (a) (b) (c) (d) where insurance business is conducted by any entity whose business predominantly consists of insurance business, the size of that insurance business shall be: the total consolidated assets of the group headed by that entity; or if the entity is a subsidiary of another entity whose business predominantly consists of insurance business, the total consolidated assets of the group headed by the latter entity; otherwise, the size of each insurance business conducted by any entity within the Banking Group shall equal the total liabilities relating to that insurance business, plus the equity retained by the entity to meet the solvency or financial soundness needs of the insurance business; the amounts measured in relation to parts (a) and (b) shall be summed and compared to the total consolidated assets of the Banking Group. All amounts in parts (a) and (b) shall relate to on balance sheet items only, and shall be determined in accordance with generally accepted accounting practice, as defined in the Financial Reporting Act 1993; where products or assets of which an insurance business is comprised also contain a non-insurance component, the whole of such products or assets shall be considered part of the insurance business. 6.4 6.5 That the business of the Registered Bank does not constitute a predominant proportion of the business of the Commonwealth Bank of Australia. That no appointment to the position of the New Zealand chief executive officer of the Registered Bank shall be made unless: (i) the Reserve Bank has been supplied with a copy of the curriculum vitae of the proposed appointee; and (ii) the Reserve Bank has advised that it has no objection to that appointment. 3

6.0 6.6 6.7 Conditions of Registration - Commonwealth Bank of Australia New Zealand Branch (the "Registered Bank") as from 26 November 2007 (continued) That the Commonwealth Bank of Australia complies with the requirements imposed on it by the Australian Prudential Regulation Authority. That the Commonwealth Bank of Australia complies with the following minimum capital adequacy requirements, as administered by the Australian Prudential Regulation Authority: Tier One Capital of the Commonwealth Bank of Australia is not less than 4 percent of risk weighted exposures; Capital of the Commonwealth Bank of Australia is not less than 8 percent of risk weighted exposures. 6.8 6.9 That liabilities of the Registered Bank in New Zealand, net of amounts due to related parties (including amounts due to a subsidiary or affiliate of the Registered Bank), do not exceed NZ$15 billion. That retail deposits of the Registered Bank in New Zealand do not exceed $200 million. For the purposes of this condition retail deposits are defined as deposits by natural persons, excluding deposits with an outstanding balance which exceeds $250,000. 6.10 For the purposes of these conditions of registration, the term "Banking Group" means the New Zealand operations of the Commonwealth Bank of Australia and those subsidiaries of the Commonwealth Bank of Australia (except those which conduct life assurance business) whose business is required to be reported in financial statements for the group's New Zealand business prepared in accordance with Section 9(2) of the Financial Reporting Act 1993. There have been no changes to the conditions of registration since the signing of the previous disclosure statement (for the period ending 31 March 2008). 7.0 Pending Proceedings or Arbitration 7.1 The Banking Group is not party to any pending proceedings or arbitration which are expected to have a material adverse effect on the financial position, or results, of the CBA NZ Operations or CBA NZ Branch. 8.0 Credit Rating of Commonwealth Bank of Australia 8.1 As at the date of the signing of this General Disclosure Statement, the following ratings were assigned to the Commonwealth Bank of Australia's long term debt: Rating Agency Current Long Term Rating Fitch Ratings AA Moody's Investors Service, Inc. Aa1 Standard & Poor's (Australia) Pty Limited AA The Moody's rating was raised from Aa3 to Aa1 on 4 May 2007. The Standard and Poor's rating was raised from AA- to AA on 21 February 2007. The Fitch rating was affirmed as AA on 24 January 2008. The outlook from all agencies is stable. 8.2 Long Term Debt Rating Definitions Long Term Debt Rating Fitch Moody's S&P (a) (b) (a) Highest quality / Extremely strong capacity to pay interest and principal AAA Aaa AAA High quality / Very strong AA Aa AA Upper medium grade / Strong A A A Medium grade (lowest investment grade) / Adequate BBB Baa BBB Predominantly speculative / Less near term vulnerability to default BB Ba BB Speculative, low grade / Greater vulnerability B B B Poor to default / Identifiable vulnerability CCC Caa CCC Highest speculations CC Ca CC Lowest quality, no interest C C C In payment default, in arrears - questionable value D - D (a) Fitch and S&P apply plus (+) or minus (-) signs to ratings from AA to CCC to indicate relative standing within the major rating categories. (b) Moody's applies numeric modifiers to each generic rating category from Aa to B, indicating that the counterparty is (1) in the higher end of its letter-rating category, (2) in mid-range, (3) in lower end. 4

Historical Summary of Aggregated Financial Statements Banking Group Previous NZ IFRS NZ IFRS NZ IFRS NZ IFRS NZ GAAP $ millions Audited Audited Audited Audited Audited 2007 2006 2005 2004 INCOME STATEMENT Interest Income 5,147 4,142 3,425 2,829 2,173 Interest Expense 4,128 3,273 2,656 2,092 1,527 Net Interest Earnings 1,019 869 769 737 646 Other Income 331 491 374 297 274 Total Operating Income 1,350 1,360 1,143 1,034 920 Impairment Losses on Advances 47 17 19 16 21 Total Operating Income after Impairment Losses 1,303 1,343 1,124 1,018 899 Total Operating Expenses 595 539 504 478 468 Net Profit before Taxation 708 804 620 540 431 Taxation 218 239 196 173 146 Net Profit after Taxation 490 565 424 367 285 Of which Impaired Asset Expense / (Recovery) 26 8 (1) (1) (1) DIVIDENDS and REPATRIATIONS PAID Minority Interests 34 31 30 18 10 Ordinary Dividends 510 530 689 - - Redeemable Preference Dividends 59 30 160 - - Distribution of Prior Period Profit 8 5 7 4 5 Total Dividends and Repatriations Paid 611 596 886 22 15 Banking Group Previous NZ IFRS NZ IFRS NZ IFRS NZ IFRS NZ GAAP $ millions Audited Audited Audited Audited Audited As at 30 June 2008 2007 2006 2005 2004 BALANCE SHEET Total Assets 66,323 58,532 48,511 41,684 35,365 Of which Impaired Assets 30 10 5 32 26 Total Liabilities 62,913 55,796 46,624 39,559 33,938 Total Shareholder's Equity 3,410 2,736 1,887 2,125 1,427 6

Income Statement $ millions Banking Group Registered Bank For the year ended 30 June Note 2008 2007 2008 2007 Interest Income 2 5,147 4,142 881 641 Interest Expense 3 4,128 3,273 849 632 Net Interest Earnings 1,019 869 32 9 Other Income 5 331 491 15 8 Total Operating Income 1,350 1,360 47 17 Impairment Losses / (Recoveries) on Advances 16 (b) 47 17 7 (1) Total Operating Income after Impairment Losses 1,303 1,343 40 18 Total Operating Expenses 6 595 539 6 6 Salaries and Other Staff Expenses 351 318 5 4 Building Occupancy and Equipment Expenses 101 91 - - Information Technology Expenses 54 50 - - Other Expenses 89 80 1 2 Net Profit before Taxation 708 804 34 12 Taxation 8 218 239 12 4 Net Profit after Taxation 490 565 22 8 Less: Minority Interests 34 34 31 - - Net Profit after Taxation Attributed to Parent Company Shareholders 456 534 22 8 Interest Rate Swaps which are transacted as economic hedges of interest rate risk, but which do not qualify for hedge accounting under NZ IAS 39 Financial Instruments: Recognition and Measurement, are accounted for at fair value. Changes in the fair value of these swaps are reflected in the Income Statement immediately when they occur. This can create an accounting inconsistency, as changes in the fair value of the swaps cannot be offset against changes in the fair value or cash flows attributable to the underlying transaction. Other Income for the year ended 30 June 2008 included a loss of $98m before tax from such swaps (30 June 2007 $153m gain). These statements are to be read in conjunction with the notes on pages 11 to 63 and the Auditor's Report on pages 64 to 66. 7

Statement of Recognised Income and Expense $ millions Banking Group Registered Bank For the year ended 30 June Note 2008 2007 2008 2007 Items Recognised Directly in Equity: Movement in Asset Revaluation Reserves 29 2 4 - - Net Change in Available for Sale Reserves 30 19 - - - Net Change in Cash Flow Hedge Reserves 31 (185) 147 2 (7) Net Change in Investment Hedge 32 (78) - - - Currency Translation Differences 32 78 - - - Transfer from Asset Revaluation Reserves to Retained Earnings 33 1 - - - Net (Expense) / Income Recognised Directly in Equity (163) 151 2 (7) Net Profit after Taxation 490 565 22 8 Total Recognised Income and Expense 327 716 24 1 Attributable to : Parent Company Shareholders 293 685 24 1 Minority Interests 34 34 31 - - Total Recognised Income and Expense 327 716 24 1 These statements are to be read in conjunction with the notes on pages 11 to 63 and the Auditor's Report on pages 64 to 66. 8

Balance Sheet $ millions Banking Group Registered Bank As at 30 June Note 2008 2007 2008 2007 ASSETS Cash and Call Deposits with the Central Bank 10 1,155 3,013 59 15 Due from Other Banks 11 637 1,071 3,738 3,694 Money Market Advances 12 1,223 2,264 - - Securities 13 5,402 2,766 440 329 Derivative Assets 14 1,249 790 268 - Advances to Customers 15 55,773 47,776 6,530 5,513 Current Taxation Asset 74 140 8 2 Other Assets 18 320 242 81 67 Property, Plant and Equipment 19 159 159 - - Intangible Assets 20 56 36 - - Goodwill 21 275 275 - - Deferred Taxation Asset 22 - - 4 9 Total Assets 66,323 58,532 11,128 9,629 Total Interest Earning and Discount Bearing Assets 64,070 56,852 10,708 9,536 Financed by: LIABILITIES Due to Other Banks 23 7,800 7,039 5,341 4,201 Money Market Deposits 24 20,040 16,823 - - Derivative Liabilities 14 1,193 1,589 450 605 Deposits from Customers 25 27,821 24,499 851 834 Other Liabilities 26 735 567 78 38 Deferred Taxation Liability 22 195 342 - - Subordinated Debt 27 5,129 4,937 4,136 3,703 Total Liabilities 62,913 55,796 10,856 9,381 SHAREHOLDER'S EQUITY Head Office Contribution 28 262 254 262 254 Contributed Capital - Ordinary Shareholder 28 704 534 - - Asset Revaluation Reserves 29 29 27 - - Available for Sale Reserves 30 19 - - - Cash Flow Hedge Reserves 31 6 191 (11) (13) Retained Earnings 33 569 689 21 7 Ordinary Shareholder's Equity 1,589 1,695 272 248 Contributed Capital - Redeemable Preference Shareholder 28 1,271 491 - - Total Shareholder's Equity Attributed to Parent Company Shareholders 2,860 2,186 272 248 Minority Interest Controlled Entities 34 550 550 - - Total Shareholder's Equity 3,410 2,736 272 248 Total Liabilities and Shareholder's Equity 66,323 58,532 11,128 9,629 Total Interest and Discount Bearing Liabilities 53,263 51,343 10,328 8,738 These statements are to be read in conjunction with the notes on pages 11 to 63 and the Auditor's Report on pages 64 to 66. 9

Cash Flow Statement $ millions Banking Group Registered Bank For the year ended 30 June Note 2008 2007 2008 2007 CASH FLOWS FROM OPERATING ACTIVITIES Interest Received 5,064 4,157 865 626 Other Income Received 831 40 33 14 Dividends Received 3 4 - - Interest Paid (4,000) (3,111) (811) (604) Operating Expenses (528) (500) (7) (6) Net Taxation Paid (196) (289) (11) (12) Receipts from Related Parties for Tax Related Items 22 41 - - Cash Flows from Operating Profits before Changes in Operating Assets and Liabilities 1,196 342 69 18 Changes in Operating Assets and Liabilities Net Increase in Money Market Advances (1,813) (1,928) - - Net Decrease / (Increase) in Due from Other Banks (Term) 423 (237) (44) 35 Net Increase in Advances to Customers (5,202) (6,614) (1,028) (2,394) Net (Increase) / Decrease in Trading Securities (1,837) 756 (110) (112) Net Increase in Customer Deposits 3,322 3,419 17 768 Net Increase in Money Market Deposits 1,786 4,578 - - Net Increase in Due to Other Banks (Term) 761 1,887 1,140 1,506 Cash Flows from Operating Assets and Liabilities (2,560) 1,861 (25) (197) Net Cash Flows from Operating Activities 35 (1,364) 2,203 44 (179) CASH FLOWS FROM INVESTING ACTIVITIES Cash was applied to: Net Increase in Other Securities 569 455 - - Purchase of Property, Plant and Equipment 25 38 - - Purchase of Intangible Assets 33 24 - - 627 517 - - Net Cash Flows from Investing Activities (627) (517) - - CASH FLOWS FROM FINANCING ACTIVITIES Cash was provided from: Head Office Contribution 8 204 8 204 Issue of Ordinary Share Capital 170 36 - - Issue of Redeemable Preference Shares 27 & 28 780 699 - - Issue of Subordinated Debt 531 1,048 120-1,489 1,987 128 204 Cash was applied to: Net Decrease in Due to Other Banks - 53 - - Dividends Paid 540 560 - - Dividends Paid to Minority Interest 34 31 - - Repatriation of Profit 8 5 8 5 Redemption of Subordinated Debt 780 904 120-1,362 1,553 128 5 Net Cash Flows from Financing Activities 127 434-199 SUMMARY OF MOVEMENTS IN CASH FLOWS Net (Decrease) / Increase in Cash and Cash Equivalents (1,864) 2,120 44 20 Add: Cash and Cash Equivalents at Beginning of Year 2,424 304 24 4 Cash and Cash Equivalents at End of Year 36 560 2,424 68 24 These statements are to be read in conjunction with the notes on pages 11 to 63 and the Auditor's Report on pages 64 to 66. 10

1 Statement of Accounting Policies GENERAL ACCOUNTING POLICIES The reporting entity is Commonwealth Bank of Australia New Zealand Branch (the "Registered Bank"), which holds the banking licence for the purposes of this disclosure statement. The reporting group (the "Banking Group") is the aggregated results of: Commonwealth Bank of Australia New Zealand Branch, ASB Holdings Limited, ASB Funding Limited, ASB Bank Limited and its subsidiaries, CBA Funding (NZ) Limited and its subsidiaries, CBA NZ Holding Limited and its subsidiary, CBA Real Estate Funding (NZ) Limited and its subsidiary, CBA USD Funding Limited and Group Treasury Services NZ Limited. The basis of aggregation is an addition of the Banking Group entities' individual financial statements. All transactions and balances between entities within the Banking Group have been eliminated. These financial statements have been drawn up in accordance with the requirements of the Companies Act 1993, the Financial Reporting Act 1993 and the Registered Bank Disclosure Statement (Full and Half-Year - Overseas Incorporated Registered Banks) Order 2008. They were approved for issue by the Directors on 24 September 2008. The Banking Group's financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice ("NZ GAAP"). They comply with New Zealand equivalents to International Financial Reporting Standards ("NZ IFRS") and other applicable Financial Reporting Standards, as appropriate for profit-oriented entities. The financial statements also comply with International Financial Reporting Standards. The Banking Group has adopted NZ IFRS 7 Financial Instruments: Disclosures and amendments to NZ IAS 1 Presentation of Financial Statements - Capital Disclosures from 1 July 2007. This has resulted in certain changes to the disclosures in the Banking Group's General Disclosure Statement but does not have any impact on its reported profits or financial positions. The following new standards and amendments to standards relevant to the Banking Group are not yet effective and have not yet been applied in preparing the financial statements. Adoption of these standards will not have any impact on the Banking Group's reported profit or financial position. NZ IAS 1 Presentation of Financial Statements (revised) will apply to the Banking Group from 1 July 2009 and will result in changes to the disclosure of changes in Equity. NZ IFRS 3 Business Combinations (revised) will apply to the Banking Group from 1 July 2009 and will result in additional disclosures in the event of a business combination. NZ IFRS 8 Operating Segments will apply to the Banking Group from 1 July 2009 and will affect the financial and descriptive information disclosed about the Banking Group's reportable segments. Basis of Preparation The measurement base adopted is that of historical cost as modified by the fair value measurement of Available for Sale Financial Assets, Financial Instruments at Fair Value through Profit or Loss, Derivative contracts and the revaluation of certain Property, Plant and Equipment. Critical Accounting Estimates and Judgements The critical judgements used by management in applying the accounting policies that have the most significant effect on the amounts recognised in the financial statements, apart from those involving estimation, are the designation of financial assets and financial liabilities as at fair value through profit or loss. Preparation of the financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates, although it is not anticipated that such differences would be material. Estimates and assumptions are continually evaluated, and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Banking Group considers that the Provision for Impairment on Customer Advances requires significant accounting estimates and management judgement. Refer to Note 16 for details of credit risk management and the basis of the Banking Group's impairment provision model. Presentation Currency and Rounding The functional and presentation currency of the Banking Group is New Zealand dollars. The amounts contained in this disclosure statement and the financial statements are presented in millions of New Zealand dollars, unless otherwise stated. PARTICULAR ACCOUNTING POLICIES There have been no material changes to accounting policies in the year ended 30 June 2008. All policies have been applied on a basis consistent with that used during the financial year ended 30 June 2007. A Glossary of Terms included within the Statement of Accounting Policies is set out on page 18. (a) Basis of Consolidation Subsidiaries Subsidiaries are those entities controlled by CBA New Zealand Branch or the banking activities of ASB Holdings Limited. Control exists when the Banking Group has the power, directly or indirectly, to govern the financial and operating policies of entities so as to obtain benefits from their activities. The financial statements of subsidiaries are included in the Banking Group's financial statements from the date on which control is transferred to the Banking Group until the date that control ceases. Assets, liabilities and results of subsidiaries are included in the Banking Group's financial statements on the basis of financial statements made up to balance date, using the purchase method. All intra group balances and transactions have been eliminated in preparing the consolidated financial statements. Associates Associates are those entities in which the Banking Group has significant influence, but not control, over the financial and operating policies. The Banking Group has representation on the board of directors of all companies classified as Associates. Associates are accounted for under the equity method of accounting. 11

1 Statement of Accounting Policies (continued) (b) Segment Reporting The Banking Group's primary reporting format is business segments (refer to Note 45). Segments reported are in line with the organisational structure of the Banking Group and take into account the nature of the products and services provided. (c) The Banking Group operates predominantly within New Zealand. On this basis geographical segment reporting is not applicable. Foreign Currency Translation All foreign currency monetary assets and liabilities are converted at the rates of exchange ruling as at balance date. Foreign currency forward, futures, swaps and option positions are valued at fair value as at balance date. Unrealised gains and losses arising from these revaluations and gains and losses arising from foreign exchange dealings are recognised immediately in the Income Statement. The foreign currency assets and liabilities of overseas subsidiaries are translated into the Banking Group's presentation currency at the rate of exchange ruling as at balance date. Income Statements are translated at the weighted average rates for the year. All resulting exchange differences are recognised in the Foreign Currency Translation Reserve ("FCTR") as a separate component of equity. Gains or losses accumulated in the FCTR are transferred to the Income Statement upon partial or full disposal of the overseas subsidiary. (d) Revenue Recognition Revenue is recognised to the extent that it is probable that economic benefits will flow to the Banking Group and that the revenue can be reliably measured. The principal sources of revenue are interest income, fees and commissions. Interest Income and Expense Financial instruments are classified in the manner described in (f). Some are measured by reference to amortised cost, others by reference to fair value. For financial instruments measured at amortised cost, the effective interest method is used to measure the Interest Income or Expense recognised in the Income Statement. For financial instruments measured at fair value, Interest Income or Expense is recognised on an accrual basis, either daily or on a yield to maturity basis. Lending Fees Fees and direct costs relating to loan origination, financing or restructuring and to loan commitments are deferred and amortised to Interest Income over the life of the loan using the effective interest method. Lending fees not directly related to the origination of a loan are recognised over the period of service. Commission and Other Fees When commissions or fees relate to specific transactions or events, they are recognised in the Income Statement when the service is provided to the customer. When they are charged for services provided over a period, they are taken to Other Income on an accruals basis as the service is provided. Other Income Dividend income is recorded in the Income Statement when the Banking Group's right to receive the dividend is established. Realised and unrealised gains and losses from re-measurement of Financial Instruments at Fair Value through Profit or Loss are included in Other Income. (e) (f) Expense Recognition Operating lease payments are recognised in the Income Statement on a straight-line basis over the term of the lease, unless another systematic basis is more representative of the time pattern of the benefit received. All other expenses are recognised in the Income Statement on an accrual basis. Financial Instruments BASIS OF RECOGNITION AND MEASUREMENT The Banking Group offers an extensive range of financial instruments. Financial instruments are transacted on a commercial basis to derive an interest yield / cost with terms and conditions having due regard to the nature of the transaction and the risks involved. All financial instruments are accounted for on a settlement date basis. They are classified in one of the following categories at initial recognition: Financial Assets at Fair Value through Profit or Loss, Available for Sale Financial Assets, Loans and Receivables, Held to Maturity, Financial Liabilities at Fair Value through Profit or Loss and Other Financial Liabilities. Some of these categories require measurement at fair value. Where available, quoted market prices are used as a measure of fair value. Bid prices are used to estimate fair values of assets, whereas offer prices are applied to liabilities. Where the Banking Group has assets and liabilities with offsetting market risk, it uses mid-market prices as a basis for establishing fair values for the offsetting risk positions and applies a bid / offer spread adjustment to the net open position as appropriate. Where quoted market prices do not exist, fair values are estimated using present value or other market accepted valuation techniques, using methods and assumptions that are based on market conditions and risks existing as at balance date. If changes in these assumptions to a reasonably possible alternative would result in a significantly different fair value this has been disclosed. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS Assets in this category are either held for trading or are managed with other assets and liabilities transacted in ASB Bank Limited's Treasury and Financial Markets Division, which are accounted for and evaluated on a fair value basis. Fair value reporting of these assets and liabilities reflects the Banking Group's risk management process, which includes utilising natural offsets where possible and managing the overall risks of the Treasury portfolio on a trading basis. Assets in this category are measured at fair value and are described on the following page. 12

1 Statement of Accounting Policies (continued) Due from Other Banks Due from Other Banks is defined by the nature of the counterparty and includes loans, nostro balances and settlement account balances due from other banks. Amounts Due from Other Banks booked in ASB Bank Limited are measured at Fair Value. Fair value is calculated on the same basis as for Money Market Advances. Money Market Advances Money Market Advances are advances transacted in ASB Bank Limited's Treasury and Financial Markets Division, which are managed with other assets and liabilities accounted for and evaluated on a fair value basis. Fair value is calculated using discounted cash flow models based on the interest rate repricing and maturity of the Advances. Discount rates applied in this calculation are based on current market interest rates for Advances with similar credit profiles. Securities Securities included in this category are short and long term public and other debt securities, which are held for trading, as well as securities designated as at Fair Value through Profit or Loss. The fair value of Securities is based on quoted market prices, where available, or calculated using discounted cash flow models based on current market rates. Subsequent changes in the fair value of securities which are either held for trading or designated as at Fair Value through Profit or Loss, are recognised in Other Income and may include interest income depending on the instrument. Coupon securities exclude interest income, whereas all other securities include interest income. Derivative Assets Derivative Assets that do not meet the criteria for hedge accounting are recorded at Fair Value through Profit or Loss. Refer to (g) for more details on derivatives. AVAILABLE FOR SALE FINANCIAL ASSETS Available for Sale Financial Assets are measured at fair value, with changes in fair value recognised directly in Equity. The Banking Group has classified certain equity investments (in entities over which the Banking Group has neither control nor significant influence) as Available for Sale Financial Assets. LOANS AND RECEIVABLES Assets in this category are measured at amortised cost using the effective interest method and include: Cash and Call Deposits with the Central Bank Cash and Call Deposits with the Central Bank include ASB Bank Limited's overnight settlement account with the Central Bank, and are brought to account at face value. Due from Other Banks Amounts Due from Other Banks booked in ASB Bank Limited are measured at Fair Value. Amounts booked by other members of the Banking Group are not managed on a fair value basis and are recorded at amortised cost. Advances to Customers Advances cover all forms of lending to customers, other than those classified as at Fair Value through Profit or Loss, and include mortgages, overdrafts, personal loans and credit card balances. They are recognised in the Balance Sheet when cash is advanced to the customer. Advances are reported net of Provisions for Impairment to reflect the estimated recoverable amounts. Refer to (l). Other Assets Other Assets include the accrual of interest coupons and fees receivable. For derivatives any accrued interest is recognised and measured as part of the derivative's fair value. HELD TO MATURITY INVESTMENTS Assets in this category are measured at amortised cost. The Banking Group has not classified any financial assets as held to maturity. FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS Liabilities in this category are either held for trading or are managed with other assets and liabilities transacted in ASB Bank Limited's Treasury and Financial Markets Division, which are accounted for and evaluated on a fair value basis. Fair value reporting of these assets and liabilities reflects the Banking Group's risk management process, which includes utilising natural offsets where possible and managing the overall risks of the Treasury portfolio on a trading basis. Liabilities in this category are measured at fair value and include: Due to Other Banks and Money Market Deposits Due to Other Banks is defined by the nature of the counterparty and includes deposits, vostro balances and settlement account balances due to other banks. Money Market Deposits are Certificates of Deposit, Issued Paper and other deposits that are transacted in the Treasury and Financial Markets Division of ASB Bank Limited. Certain amounts within Due to Other Banks and Money Market Deposits have been designated as at Fair Value through Profit or Loss, where designation eliminates or significantly reduces an accounting mismatch that would otherwise arise from measuring assets and liabilities or recognising the gains or losses on them in different bases. These amounts are managed with other assets and liabilities accounted for and evaluated on a fair value basis. The fair value of Deposits, Certificates of Deposit and Issued Paper is calculated using discounted cash flow models based on the interest rate repricing and maturity of the instruments. The discount rates applied in this calculation are based on current market rates. Derivative Liabilities Derivative Liabilities that do not meet the criteria for hedge accounting are recorded at Fair Value through Profit or Loss. Refer to (g) for more details on derivatives. OTHER FINANCIAL LIABILITIES This category includes all financial liabilities other than those at Fair Value through Profit or Loss. Liabilities in this category are measured at amortised cost and include: 13

1 Statement of Accounting Policies (continued) Due to Other Banks and Money Market Deposits This represents amounts Due to Other Banks and Money Market Deposits, apart from those designated as at Fair Value through Profit or Loss. When fair value hedge accounting is applied to fixed rate Deposits or Issued Paper, the carrying value at amortised cost is adjusted for changes in fair value related to the hedged risk. Deposits from Customers Deposits from Customers cover all forms of funding, apart from those classified as at Fair Value through Profit or Loss and include transactional and savings accounts, term deposits and credit balances on cards. Other Liabilities Other Liabilities include the accrual of interest coupons and fees payable. For derivatives any accrued interest is recognised and measured as part of the derivative's fair value. Subordinated Debt Capital instruments are classified as financial liabilities or equity instruments in accordance with the substance of the contractual terms of the instrument. Where instruments are determined to contain both liability and equity components, such components are classified separately. The fair value of the liability component is calculated using discounted cash flow models. This amount is recorded as a financial liability on an amortised cost basis until extinguished on redemption of the instrument. The remainder of the proceeds of the instrument are recognised in Equity, net of income tax effects. Subordinated Debt is recognised in the Balance Sheet including accrued interest as both components are subordinate to other liabilities. When fair value hedge accounting is applied to fixed rate Subordinated Debt, the carrying value at amortised cost is adjusted for changes in fair value related to the hedged risk. (g) Derivative Financial Instruments Derivatives, including foreign exchange contracts, forward rate agreements, futures, options, interest rate swaps and currency swaps, are used as part of the Banking Group's financial market activities and to hedge certain assets and liabilities. The Banking Group recognises derivatives in the Balance Sheet at their fair value. Fair values are obtained from market yields and discounted cash flow models or option pricing models as appropriate. Derivative Assets are the fair value of derivatives which have a positive fair value. Derivative Liabilities are the fair value of derivatives which have a negative fair value. Derivative Financial Instruments at Fair Value through Profit or Loss All derivatives that do not meet the criteria for hedge accounting under NZ IAS 39 are classified as at Fair Value through Profit or Loss. This includes derivatives transacted as part of the trading activity of ASB Bank Limited's Treasury and Financial Markets Division, as well as derivatives transacted as economic hedges but not qualifying for hedge accounting. Changes in fair value are reflected in the Income Statement immediately when they occur. (h) Hedge Accounting The Banking Group uses derivatives as part of its asset and liability management activities to manage exposures to interest rate, foreign currency and credit risks, including exposures arising from forecast transactions. The Banking Group applies either Cash Flow or Fair Value Hedge accounting when transactions meet the specified criteria to obtain hedge accounting treatment. The Banking Group has predominantly used Cash Flow Hedge accounting. The Banking Group also uses non-derivative financial instruments to hedge its net investment in foreign operations. The Banking Group discontinues hedge accounting when it is determined that a hedge has ceased to be highly effective; when the derivative expires, or is sold, terminated, or exercised; when the hedged item matures or is sold or repaid; when a forecast transaction is no longer deemed highly probable; or when the Banking Group elects to revoke the hedge designation. Cash Flow Hedge Accounting A fair valuation gain or loss associated with the effective portion of a derivative designated as a Cash Flow Hedge is recognised initially in Cash Flow Hedge Reserves. The ineffective portion of a fair valuation gain or loss is recognised immediately in the Income Statement. When the transaction or item that the derivative is hedging (including cash flows from transactions that were only forecast when the derivative hedge was effected) affects income or expense then the associated gain or loss on the hedging derivative is simultaneously transferred from Cash Flow Hedge Reserves to the corresponding income or expense line item in the Income Statement. When a hedging derivative expires or is sold, the hedge no longer meets the criteria for hedge accounting, or the Banking Group elects to revoke the hedge designation, the cumulative gain or loss on the hedging derivative remains in the Cash Flow Hedge Reserve until the forecast transaction occurs and affects income, at which point it is transferred to the corresponding income or expense line. If a forecast transaction is no longer expected to occur, the cumulative gain or loss on the hedging derivative previously reported in Cash Flow Hedge Reserves is immediately transferred to Other Income. Fair Value Hedge Accounting For qualifying Fair Value Hedges the change in fair value of the hedging derivative is recognised within Other Income in the Income Statement. Those changes in fair value of the hedged item which are attributable to the risks hedged with the derivative instrument are reflected as an adjustment to the carrying value of the hedged item, which is also recognised in Other Income. If the hedging instrument expires or is sold, terminated or exercised, if the hedge no longer meets the criteria for hedge accounting, or the Banking Group revokes the hedge designation, the difference between the carrying value of the hedged item at that point and the value at which it would have been carried had the hedge never existed (the "unamortised fair value adjustment") is maintained as part of the carrying value of the hedged item and amortised to the Income Statement based on a recalculated effective interest rate. Net Investment Hedge Accounting Hedges of Net Investments in foreign operations are accounted for in a similar manner to Cash Flow Hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognised in a separate component of equity. The gain or loss relating to the ineffective portion is recognised in the Income Statement within Other Income. On disposal of the foreign operation, the gain or loss accumulated in equity is transferred to the Income Statement. 14