Expected Margin of between 3.90% and 4.10% above bank bill rate

NOT FOR DISTRIBUTION IN THE UNITED STATES

Sydney, 20 February 2017: Commonwealth Bank of Australia (the “Group”) today announced the offer, and lodged a Prospectus, for a new Tier 1 hybrid, CommBank PERLS IX Capital Notes (“PERLS IX”) (“Offer”).

PERLS IX will qualify as Tier 1 capital of the Group. The Offer is expected to raise A$750 million, with the ability to raise more or less. PERLS IX are expected to be quoted on ASX under the trading code CBAPF.

PERLS IX are subordinated, unsecured notes[1] , scheduled[2] to pay quarterly, floating rate distributions which are expected to be fully franked. PERLS IX have a call date in March 2022 and will mandatorily exchange into CBA ordinary shares in March 2024. PERLS IX have an initial face value of A$100.

The net proceeds of the Offer will be used to fund the Group’s business. Certain holders of Colonial Group Subordinated Notes who participate in the Securityholder Offer will receive priority allocation to other securityholders in relation to the proceeds of their Colonial Group Subordinated Notes being invested in PERLS IX. Additional information relevant to Colonial Group Subordinated Noteholders is contained in the separate Colonial Group Subordinated Notes Information Booklet.

Commonwealth Bank of Australia and Morgan Stanley Australia Securities Limited are the Arrangers and Joint Lead Managers to the Offer. Evans and Partners Pty Limited; J.P.Morgan Australia Limited; Morgans Financial Limited; National Australia Bank Limited; and Westpac Institutional Bank have also been appointed as Joint Lead Managers to the Offer. Bell Potter Securities Limited; Ord Minnett Limited; and Shaw and Partners Limited have been appointed as Co-Managers to the Offer.

For further information, please see www.commbank.com.au

[1] Investments in PERLS IX are an investment in the Group and may be affected by the ongoing performance, financial position and solvency of the Group. They are not deposit liabilities or protected accounts of the Group under the Banking Act 1959 (Cth) and are not guaranteed or insured by any Australian government, government agency or compensation scheme

[2] The payment of Distributions is at the discretion of the Group’s Board. Distributions are non-cumulative and will not be paid if certain conditions are not met