Commonwealth Bank of Australia : CNGHA Holder Communication

Co1n11onwealthBank

Commonwealth Bank of Australia

ACN 123 123 124

Group Governance

GPO Box 2719

Sydney NSW 1155

28 February 2017

The Manager

Company Announcements Platform Austral ian Securities Exchange

20 Bridge Street

SYDNEY NSW 2000

Dear Sirs

I attach an example of the letter being sent to Eligible Colonial Group Subordinated Noteholders from today, notifying them of the CommBank PERLS IX Capital Notes offer.

Yours sincerely

Clare McManus

*L009999*

28 February 2017

1301011002120010001120313320321200013 999 009999

MR SAM SAMPLE

123 SAMPLE STREET

SAMPLETOWN NSW 9999

Eligible SRN/HIN: X99999999999

Dear Colonial Group Subordinated Noteholder

As a valued Colonial Group Subordinated Noteholder, I am writing to let you know that the Commonwealth Bank of Australia ("CBA") has launched an offer of a new security, CommBank PERLS IX Capital Notes

("PERLS IX").

The offer of PERLS IX will be made via the Prospectus lodged with ASIC on 28 February 2017. Some of the key features of PERLS IX are set out below, but you should consider the Prospectus in full before deciding whether to invest in PERLS IX. There is additional information for you provided in the Information Booklet (which forms part of the Prospectus). In this letter, words which are capitalised have the meanings given to them in the Prospectus.

CommBank PERLS IX Capital Notes Subordinated unsecured notes issued by CBA with an initial face value of

A$100 each

The PERLS IX Terms are complex and include features to comply with the detailed regulatory capital requirements which APRA applies to these types of securities

Floating Rate Distributions Distributions are scheduled to be paid quarterly in arrears1

Distributions are expected to be fully franked and will comprise a combination of franking credits and cash equal to the sum of (Market Rate + 3.90% p.a) x (1 - Tax Rate)

The Market Rate is a primary benchmark interest rate for the Australian money market. It is based on the average of rates at which major Australian financial institutions lend short-term cash to each other over a 90 day period.

Term Perpetual (no maturity date), but may be Exchanged earlier in certain circumstances. If PERLS IX are not Exchanged or Redeemed they could remain on issue indefinitely

Call Date CBA may at its option Redeem all or some PERLS IX on 31 March 2022

Mandatory Exchange CBA must Exchange PERLS IX on the Mandatory Exchange Date (31

March 2024) subject to the Maximum Exchange Number and Mandatory Exchange Conditions

Early Exchange CBA must also Exchange PERLS IX before the Mandatory Exchange Date on the occurrence of a Capital Trigger Event, a Non-Viability Trigger Event or a Change of Control Event. Information about these events, and what will happen to your investment if Exchange is not possible, is described in the Prospectus

1 Distributions are discretionary and subject to the distribution payment conditions being satisfied. This means a Distribution may not be paid - Distributions that are not paid do not accrue and will not be subsequently paid.

There are risks associated with investing in securities such as PERLS IX, as well as risks associated with CBA's businesses which may affect PERLS IX. These risks are set out in Section 4 of the Prospectus and include circumstances in which investors could lose some or all of the money they invest in PERLS IX and / or may not be paid distributions on their PERLS IX. It is important that you read the Prospectus in full before deciding to invest in PERLS IX, including the risks associated with PERLS IX and CBA. If you have questions, you should seek advice from your financial adviser or other professional adviser before deciding to invest in PERLS IX.

Paper copies of the Prospectus and Application Form can be obtained free of charge during the Offer Period by registering your request online at www.commsec.com.au, or by calling the PERLS IX Information Line on 1800 095 654 (Monday to Friday 8.00am - 7.30pm, Sydney time) and using your Offer Reference number. Applications can be made online atwww.commsec.com.au using your SRN/HIN or by using the Application Form that will be in, or will accompany, the paper copy of the Prospectus.

For more information, talk to your broker or adviser, visit www.commsec.com.au or call the PERLS IX Information Line on 1800 095 654 (Monday to Friday 8.00am - 7.30pm, Sydney time).

On behalf of the CBA Directors, I thank you for your support and for considering this investment opportunity.

Yours sincerely

Catherine Livingstone AO Chairman

Important Information: PERLS IX are unsecured notes. Investments in PERLS IX are an investment in CBA and may be affected by the ongoing performance, financial position and solvency of CBA. CBA (as issuer of PERLS IX) does not guarantee the performance of PERLS IX. They are not deposit liabilities or protected accounts of CBA under the Banking Act 1959 (Cth). This letter is not advice and has not taken into account your investment objectives, financial situation or particular needs (including financial or taxation issues). You should read and consider the Prospectus in full and seek advice from your financial adviser or other professional adviser before deciding whether to invest in PERLS IX. If you are a Colonial Group Subordinated Noteholder, there is additional information for you provided in the Information Booklet.

2 The key dates for the Offer are indicative only and subject to change without notice