Commonwealth Bank of Australia (CMWAY) 6-K Commonwealth Bank 2004 Full Year Results

Exhibit 3

RULE 4.3A

APPENDIX 4E

Full year report

Introduced 30/6/2002.

Name of entity

Commonwealth Bank of Australia

ABN or equivalent company	Half yearly	Preliminary	Financial year ended (‘current period’)
reference	(tick)	final (tick)	(Rule 4.3A Item No.1 )
ACN 123 123 124	o	þ	30 June 2004

Results for announcement to the market

(Rule 4.3A Item No. 2) $M

Revenues from ordinary activities(Rule 4.3A Item No. 2.1)	up	29.3	%	to	22,202
Profit (loss) from ordinary activities after tax attributable to members(Rule 4.3A Item No. 2.2 )	up	27.8	%	to	2,572
Net profit (loss) for the period attributable to members(Rule 4.3A Item No. 2.3)	up	27.8	%	to	2,572

Dividends (distributions)	Amount per security		Franked amount per security
Final dividend		104¢		104¢
Interim dividend		79¢		79¢
Total		183¢		183¢
(Rule 4.3A Item No. 2.4)

+Record date for determining entitlements to the dividend,	20th August 2004
(Rule 4.3A Item No. 2.5)

Brief explanation of any of the figures reported above(Rule 4.3A Item No. 2.6):

REFER TO PROFIT ANNOUNCEMENT.

Consolidated statement of financial performance
For the year ended 30 June 2004
(Rule 4.3A Item No. 3)

	30/06/04			30/06/03
	$ M			$ M
Interest income		13,287			11,528
Interest expense		7,877			6,502
Net interest income		5,410			5,026
Other income:
Revenue from sale of assets		943			128
Written down value of assets sold		(874	)		(106	)
Other		2,777			2,605
Net banking operating income		8,256			7,653
Funds management fee income including premiums		1,175			1,149
Investment revenue		1,967			8
Claims and policyholder liability expense		(1,809	)		(91	)
Net funds management operating income		1,333			1,066
Premiums and related revenue		1,012			1,131
Investment revenue		840			620
Claims and policyholder liability expense		(950	)		(1,071	)
Insurance margin on services operating income		902			680
Total net operating income before appraisal value uplift/(reduction)		10,491			9,399
Charge for bad and doubtful debts		276			305
Operating expenses:
Operating expenses		5,500			5,312
Initiatives including Which new Bank(1)		749			239
		6,249			5,551
Appraisal value uplift/(reduction)		201			(245	)
Goodwill amortisation		(324	)		(322	)
Profit from ordinary activities before income tax		3,843			2,976
Income tax expense		1,262			958
Profit from ordinary activities after income tax		2,581			2,018
Outside equity interests in net profit		(9	)		(6	)
Net profit attributable to members of the Bank		2,572			2,012
Foreign currency translation adjustment		(8	)		(129	)
Revaluation of properties		54			3
Total valuation adjustments		46			(126	)
Total changes in equity other than those resulting from transactions with owners as owners		2,618			1,886

	Cents per Share
Earnings per share based on net profit distributable to members of the Bank
Basic		196.9	157.4
Fully Diluted		196.8	157.3
Dividends per share attributtable to shareholders of the Bank:
Ordinary shares		183	154
Preference shares (issued 6 April 2001)		1065	1,019
Other equity instruments (issued 6 August 2003)		7,306	—
Other equity instruments (issued 6 January 2004)		402	—

⁽¹⁾ June 2004 results reflects the Which new Bank initiative, while prior periods include strategic initiatives undertaken and the cost of the June 2002 ESAP paid in October 2002.

Consolidated statement of financial position
As at 30 June 2004
(Rule 4.3A Item No.4)

	30/06/04		30/06/03
	$ M		$ M
Assets
Cash and liquid assets		6,453		5,575
Receivables due from other financial institutions		8,369		7,066
Trading securities		14,896		10,435
Investment securities		11,447		11,036
Loans, advances and other receivables		189,391		160,347
Bank acceptances of customers		15,019		13,197
Insurance investment assets		28,942		27,835
Deposits with regulatory authorities		38		23
Property, plant and equipment		1,204		821
Investment in associates		239		287
Intangible assets		4,705		5,029
Other assets		25,292		23,459
Total assets		305,995		265,110
Liabilities
Deposits and other public borrowings		163,177		140,974
Payables due to other financial institutions		6,641		7,538
Bank acceptances		15,019		13,197
Provision for dividend		14		12
Income tax liability		811		876
Other provisions		997		819
Insurance policyholder liabilities		24,638		23,861
Debt issues		44,042		30,629
Bills payable and other liabilities		19,140		19,027
		274,479		236,933
Loan Capital		6,631		6,025
Total liabilities		281,110		242,958
Net assets		24,885		22,152
Shareholders’ Equity
Share Capital:
Ordinary share capital		13,359		12,678
Preference share capital		687		687
Other equity instruments		1,573		—
Reserves		3,946		3,850
Retained profits		2,840		2,809
Shareholders’ equity attributable to members of the Bank		22,405		20,024
Outside Equity Interests:
Controlled entities		304		304
Insurance statutory funds and other funds		2,176		1,824
Total outside equity interests		2,480		2,128
Total shareholders’ equity		24,885		22,152

Consolidated statement of cash flows
For the year ended 30 June 2004
(Rule 4.3A Item No.5)

				30/06/04			30/06/03
	Note			$ M			$ M
Cash Flows from Operating Activities
Interest received					13,101			11,452
Dividends received					6			4
Interest paid					(7,543	)		(6,455	)
Other operating income received					3,410			3,135
Expenses paid					(5,529	)		(5,438	)
Income taxes paid					(1,366	)		(1,258	)
Net decrease (increase) in trading securities					(4,324	)		(2,484	)
Life insurance:
Investment income					841			644
Premiums received(1)					3,562			4,130
Policy payments(1)					(4,529	)		(5,855	)
Net Cash provided by / (used in) operating activities		1	(c)		(2,371	)		(2,125	)
Cash Flows from Investing Activities
Payments for acquisition of entities and management rights					—			(173	)
Proceeds from disposal of entities and businesses					63			33
Disposal of shares in other companies					114			—
Net movement in investment securities:
Purchases					(25,587	)		(18,055	)
Proceeds from sale					697			24
Proceeds at or close to maturity					24,407			17,718
Withdrawal (lodgement) of deposits with regulatory authorities					(15	)		66
Net increase in loans, advances and other receivables					(29,328	)		(13,577	)
Proceeds from sale of property, plant and equipment					69			72
Purchase of property, plant and equipment					(536	)		(143	)
Net decrease (increase) in receivables due from other financial Institutions not at call					292			513
Net decrease (increase) in securities purchased under agreements to resell					(1,023	)		50
Net decrease (increase) in other assets					(1,461	)		301
Life insurance:
Purchases of investment securities					(20,286	)		(13,091	)
Proceeds from sale/maturity of investment securities					21,500			14,628
Net cash used in investing activities					(31,094	)		(11,634	)
Cash Flows from Financing Activities
Buy back of shares					(532	)		—
Proceeds from issue of shares (net of costs)					505			13
Proceeds from issue of preference shares for outside equity interests					—			182
Proceeds from issue of other equity instruments (net of costs)					1,573			—
Net increase (decrease) in deposits and other borrowings					21,997			5,129
Net movement in debt issues					13,413			7,054
Dividends paid (including DRP buy back of shares)					(1,774	)		(1,933	)
Net movements in other liabilities					(242	)		(926	)
Net increase (decrease) in payables due to other financial institutions not at call					(929	)		(796	)
Net increase (decrease) in securities sold under agreements to repurchase					206			3,046
Issue of loan capital					985			901
Redemptions of loan capital					(317	)		—
Other					(2	)		19
Net cash provided by financing activities					34,883			12,689
Net Increase (decrease) in cash and cash equivalents					1,418			(1,070	)
Cash and cash equivalents at beginning of period					1,428			2,498
Cash and cash equivalents at end of period		1	(a)		2,846			1,428

     ⁽¹⁾ These were gross premiums and policy payments before splitting between Policyholders and Shareholders.

     Notes to the consolidated statement of cash flows are contained in Attachment 1

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

Dividend details
(Rule 4.3A Item Nos.6 & 7)

The Directors have declared a fully franked (at 30%) final dividend of 104 cents per share amounting to $1,315 million. The dividend will be payable on 24 September 2004 to shareholders on the register at 5pm on 20 August 2004. Dividends paid since the end of the previous financial year:

• As declared in last year’s Annual Report, a fully franked final dividend of 85 cents per share amounting to $1,066 million was paid on 8 October 2003. The payment comprised cash disbursements of $865 million with $201 million being reinvested by participants through the Dividend Reinvestment Plan; and

• In respect of the current year, a fully franked interim dividend of 79 cents per share amounting to $996 million was paid on 30 March 2004. The payment comprised cash disbursements of $808 million with $188 million being reinvested by participants through the Dividend Reinvestment Plan.

• Additionally, quarterly dividends totalling $37 million for the year were paid on the PERLS preference shares, $15 million on the PERLS II (for distributions in March 2004 and June 2004), $40 million on the Trust Preferred Securities, and; $9 million on the ASB Capital preference shares.

Dividend Reinvestment Plan

The Bank expects to issue around $250 million of shares in respect of the DRP for the final dividend for 2003/04.

The Dividend Reinvestment Plan continues to be capped at 10,000 shares per shareholder.

Record Date

The register closes for determination of dividend entitlement and for participation in the DRP at 5:00pm on 20 August 2004 at ASX Perpetual Registrars Limited, Locked Bag A14, Sydney South, 1235.

Ex Dividend Date

The ex-dividend date is 16 August 2004.

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

Retained Profits	$M
Opening balance 30 June 2003		2,809
Net profit for the year		2,572
Payment of final dividend		(1,066	)
Payment of interim dividend		(996	)
Share buyback (19,360,759 shares @ $16.50)		(319	)
Appropriations to reserves (net)		(59	)
Payment of other dividends		(101	)
Closing balance 30 June 2004		2,840

Net tangible assets per security
(Rule 4.3A Item No.9)

	Year Ended
As at	30/06/04		30/06/03
Net tangible assets per share ($)		14.00		11.96

Details of entities over which control was lost during the year
(Rule 4.3A Item No.10)

	Date control	Ownership Interest Held
Entity Name	lost	(%)
Commonwealth Fleet Lease Pty Limited	31/5/04		100	%

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

	Ownership Interest Held
Entity Name	(%)
EDS (Australia) Pty Limited (EDSA)		35
Computer Fleet Management		50
Cyberlynx Procurement Services		30
PT Astra CMG Life		50
Allday Enterprises Ltd		30
China Life CMG Life Assurance Company Limited		49
Bao Minh CMG Life Insurance Company		50
CMG Mahon (China) Investment Management Limited		50
Mahon and Associates Limited		50
CMG CH China Funds Management Limited		50
Colonial First State Private Ltd		50

Any other significant information
(Rule 4.3A Item No.12)

Change in accounting policies

The accounting policies applied in the preparation of the financial statements of the group for the year ended 30 June 2004 are consistent with those applied in the 30 June 2003 Annual Financial Report.

Software Capitalisation

It should be noted however, that the criteria for information technology software capitalisation has been amended, such that only computer software projects costing $10 million or more are being capitalised and capitalisation is limited to those investments that will deliver identifiable and sustainable customer value and an increase in returns, in a significant line of business.

This change has been applied retrospectively and has resulted in the expensing of $219 million of previously capitalised software at 1 July 2003

Foreign entities
(Rule 4.3A Item No.13)

NOT APPLICABLE.

Commentary on results
(Rule 4.3A Item No.14)

REFER TO PROFIT ANNOUNCEMENT.

Statement in relation to accounts which have been audited
(Rule 4.3A Item Nos.15, 16 & 17)

THE INFORMATION INCLUDED WITHIN THIS REPORT AND THE ATTACHED PROFIT ANNOUNCEMENT HAVE BEEN SUBJECT TO AN INDEPENDENT AUDIT BY THE EXTERNAL AUDITORS, AND ARE NOT SUBJECT TO DISPUTE OR QUALIFICATION.

Sign here: ............................................................ Date: 11 August 2004

Company Secretary

John Hatton

ATTACHMENT 1

Notes to Statement of Cash Flows

	Year Ended
	30/06/04			30/06/03
	$M			$M
Note (a) Reconciliation of Cash
For the purposes of the Statements of Cash Flows, cash includes cash at bankers, money at short call, at call deposits with other financial institutions and settlement account balances with other banks.
Notes, coins and cash at bankers		1,548			1,492
Other short term liquid assets		440			641
Receivables due from other financial institutions - at call		4,124			2,528
Payables due to other financial institutions - at call		(3,266	)		(3,233	)
Cash and Cash Equivalents at end of year		2,846			1,428

Note (b) Cash Flows presented on a Net Basis

Cash flows arising from the following activities are presented on a net basis in the Statement of Cash Flows:

• customer deposits to and withdrawals from deposit accounts; borrowings and repayments on loans, advances and other receivables;

• sales and purchases of trading securities; and

• proceeds from and repayment of short term debt issue

	Year Ended
Note (c) Reconciliation of Operating Profit After Income Tax to Net Cash	30/06/04			31/06/03
Provided by Operating Activities
	$M			$M
Profit from ordinary activities after income tax		2,581			2,018
Decrease (increase) in interest receivable		(186	)		(78	)
Increase (decrease) in interest payable		334			62
Net (increase) decrease in trading securities		(4,324	)		(2,484	)
Net (gain)/loss on sale of investment securities		(2	)		9
(Gain)/loss on sale of property plant and equipment		11			(22	)
Net (gain)/loss on sale of controlled entities		—			—
Charge for bad and doubtful debts		276			305
Depreciation and amortisation		450			450
Other provisions		185			(15	)
Increase (decrease) in income taxes payable		(36	)		(234	)
(Decrease) increase in deferred income taxes payable		(29	)		(166	)
(Increase) decrease in future income tax benefits		(39	)		(100	)
(Increase) decrease in accrued fees/reimbursements receivable		(107	)		(94	)
(Decrease) increase in accrued fees and other items payable		412			6
Amortisation of premium on investment securities		12			6
Unrealised gain on revaluation of trading securities		(260	)		269
Change in excess of net market value over net assets of life Insurance controlled entities		(201	)		245
Change in policy liabilities		777			(2,056	)
Revaluation of life insurance assets		(1,430	)		164
Gain on sale of life insurance assets		(456	)		(154	)
Other		(339	)		82
Net Cash provided by Operating Activities		(2,371	)		(2,125	)