Australia and New Zealand Banking Group Ltd. - Annual Report 2011

Connectivity.

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Our strat egy p o sition s us to capture the econ omic rowth g and growing interdep ende n ce of t he economies i n Asia. We think o f that . as connectivity

~~Mike Smith, AN~~ Z CEO ANZ Group Strategy update March 2011

~~Fresh~~ thi ~~n~~ kin ~~g New c~~ on ~~n~~ ecti ~~ons~~

04 2011 Snapshot
06 Chairman’s report
08 Chief Executive Offi cer’s report
10 Australia division
12 APEA division
14 New Zealand division
16 Institutional division
18 Technology
20 Corporate Responsibility Framework
23 Our approach in action
36 Five year summary
38 Your directors
39 Directors’ remuneration
40 Remuneration overview
43 Information for shareholders

~~Above:~~ Kalo Si ~~m~~ on Community Advocate Port Vila, Vanuatu

Cover from lef ~~t:~~ Tim Martin, Eri ~~n Kan, Melissa~~ Bickford, Abdishakur Hamud, Belinda Tchung

OUR 6 ~~REGION~~ AL SUPPORT HUBS

BANGAL ~~O~~ RE

O ur super r ate egional str g y

The ~~rationale behind o~~ ur supe ~~r~~ regiona ~~l strategy is simple~~ . It is abo ~~u~~ t deli ~~vering shareholders~~ long-ter ~~m~~ growt ~~h and dif erentiated~~ returns thr ~~ough a balanced ex~~ posure ~~t~~ o Asian ~~growth.~~

OUR BUSINESS

Together, our franchise, our clear strategy and the actions we have taken have uniquely positioned us to ride the wave of growth in the Asia Pacif c region and to create value for our customers and for our shareholders.

Today, ~~ANZ is the only Australian bank~~ with a clearly articul ~~ated strategy to take advantage~~ of Australia a ~~n~~ d New Z ~~ealand’s geographic, business a~~ nd cultural lin ~~k~~ ages with A ~~sia, the fastest growing region i~~ n the world.

WHERE WE OPERATE

In 2007 we set an aspiration to become a super regional bank – a bank of global quality with a clear strategy to focus on growth in Asia Pacif c.

W ~~e had strong franchises in retail, c~~ ommercial an ~~d~~ institutional ba ~~nking in our home markets of A~~ ustralia and N ~~e~~ w Zealand, th ~~e Pacif c and an existing but und~~ er-developed ~~p~~ resence in As ~~ia dating back more than 40 ye~~ ars.

With our roadmap for change, ANZ remained well capitalised and profi table through a time of great turmoil in global markets. This has enabled us to take advantage of opportunities to grow and to make tangible progress towards becoming a leading bank in the Asia Pacifi c region.

ABOUT THIS DOCUMENT

The 2011 Shareholder and Corporate Responsibility Review provides an overview of ANZ's 2011 fi nancial and non fi nancial performance and results, the Group's strategic direction and a summary of our corporate responsibility approach, initiatives and investments.

MORE INFORMATION

General information on ANZ can be obtained from our website anz.com . Shareholders can visit our Shareholder centre on shareholder.anz.com .

All information contained within this document is for the year ended 30 September 2011 unless otherwise stated. All fi gures are in Australian Dollars unless otherwise stated.

2011 SNAPSHOT

FINANCIAL HIGHLIGHTS

» A top 5 listed company on the Australian Securities Exchange with over 400,000 shareholders
» One of the 30 largest listed banks globally by market capitalisation ($51b as at 30 September 2011)
» Well capitalised, with a well-diversifi ed funding profi le and strong liquidity position
» 11% increase in the total dividend for 2011 compared to 2010

GROUP NET	PROFIT AFTER TAX $M
2011	5,355
2010	4,501	19%
GROUP NET	PROFIT AFTER TAX (UNDERLYING#) $M
2011	5,652
2010	5,025	12%
GROUP PROFIT BEFORE PROVISIONS $M
2010 2011	8,388 8,909	6%
NET LOANS AND ADVANCES INCLUDING ACCEPTANCES $B †
2011	397.3
2010	369.4	8%
CUSTOMER DEPOSITS $M
2011	296.8
2010	256.9	16%

Underlying profi t is adjusted for non-core items that are not part of the normal ongoing operations of the Group including one-off gains and losses, non-continuing businesses, timing diff erences on economic hedges and acquisition related costs.
2010 comparative adjusted to include bill acceptances (Sep 10: $6.0b) as net loans and advances rather than trading securities.

NON-FINANCIAL HIGHLIGHTS

» Employee engagement increased from 64% to 70% this year
» 38.2% of women in management
» $3.7m provided to assist communities aff ected by natural disasters across Australia, New Zealand and the Asia Pacifi c region.
» 91,410 hours volunteered by employees
» Over 14,000 people facing hardship assisted this year in Australia and New Zealand
» More than 180,000 people now benefi ting from ANZ’s fi nancial literacy programs

TOTAL EMPLOYEES (FTE) 2011 48,938 2010 47,099 TAXES BORNE[] $M 2011 2,782 2010* 2,531

TAXES COLLECTED[**] $M

2011 3,585 2010 3,276

ACHIEVEMENTS/ RECOGNITION

» ANZ New Zealand has been named Bank of the Year and the ANZ-owned National Bank (also in New Zealand) was ranked second in the Canstar Cannex Banking of the Year Awards.

» ANZ goMoney[TM] won the 'Innovation in Mobile Banking' award in the Financial Insights Innovation Awards.

» ANZ has been recognised as an Employer of Choice for Women by the Equal Opportunity for Women in the Workplace Agency (EOWA) for the seventh year.

We are a member of:

We actively participate in:

CONTRIBUTION

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ECONOMIC $M
INDICATOR 2011
Economic value » Revenues 35,817
generated
Economic value » Operating costs 3,272
distributed
» Employee wages and benefi ts 4,736
» Payments to providers of capital 22,388
» Taxes borne 2,782
» Financial contribution we have made to the 16.9
community (community investment)
» Volunteer hours donated by ANZ people 91,410
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I am pleased to report that ANZ’s statutory profi t after tax for the year ended 30 September 2011 was $5.4b up 19% ref ecting a solid performance across the bank and continued improvement in the credit environment. The fi nal dividend of 76 cents per share brings the total dividend for the year to 140 cents per share fully franked, an increase of 11%.

~~ANZ’s underlying~~ profi t for 2011, ~~w~~ hich takes int ~~o account various one-of ite~~ ms which occ ~~u~~ rred during th ~~e year, was $5.6b, up 12%.~~

ANZ remains strongly capitalised with a Tier 1 ratio as at 30 September 2011 of 10.9% and a Common Equity Tier 1 ratio of 8.5%, 0.8% and 0.5% respectively above 2010 levels. ~~The Group is well~~ placed to mee ~~t~~ new capital st ~~andards. ANZ is one of only~~ a handful of ~~b~~ anks globally ~~which retain a AA rating from a~~ ll 3 credit ratin ~~g~~ s agencies.

EXPANSION AND GROWTH

~~In 2011, we contin~~ ued to advanc ~~e~~ our super reg ~~ional strategy through growth in~~ Asia by incre ~~a~~ sing connectiv ~~ity between Asia and our key d~~ omestic franchi ~~s~~ es in Australia, ~~New Zealand and the Pacif c.~~

We were delighted to achieve a key milestone in our regional expansion plans, most notably with the re-establishment of our presence in India with the opening of our Mumbai branch in June 2011.

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CHAIRMAN’S REPORT »
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A Message From John Morschel

This strategy is helping ANZ deliver more diversifi ed earnings by product, customer and geography together with growth in our customer base. This year we set a new long-term aspiration for revenues sourced from Asia Pacifi c, Europe and America to drive 25–30% of Group profi t by 2017.

CUSTOMERS AND THE COMMUNITY

In 2011, ANZ maintained its momentum in delivering value for its customers and for the community. In Australia, we continue to have the highest level of retail customer satisfaction and further improved customer satisfaction in New Zealand.

~~A number of t~~ he communiti ~~e~~ s in which ANZ operates ~~experienced d~~ isasters durin ~~g~~ 2011. These included ~~earthquakes i~~ n the Canterbu ~~r~~ y region of New Zealand; the ~~f oods in Que~~ ensland and th ~~r~~ oughout eastern Australia; ~~and the tsuna~~ mi and nuclea ~~r~~ emergency in Japan. ANZ ~~contributed to~~ the relief eff o ~~r~~ ts through donations, direct ~~grants and th~~ e eff orts of ma ~~n~~ y ANZ staff .

Our Corporate Responsibility framework continues to help guide our decision making. New responsible lending policies will govern our business lending to sensitive social and environmental sectors. Australian Government support helped expand our work to assist low income communities build their savings.

AN ~~Z delivered increa~~ sed pro ~~f~~ i t in 201 ~~1 while continuin~~ g to inv ~~e~~ st in t ~~he development o~~ f its su ~~p~~ er regio ~~nal strategy to de~~ liver val ~~u~~ e for ~~shareholders, cust~~ omers ~~a~~ nd the ~~community.~~

During 2011, ANZ was named as one of the most sustainable banks globally in the Dow Jones Sustainability Index.

Our co ~~mbined Annual Shareholder an~~ d Corporate Respo ~~nsibility Review provides an inte~~ grated view o ~~f~~ how ANZ is ~~managing f nancial and non-f n~~ ancial issues ~~a~~ nd is design ~~ed to represent ANZ’s performa~~ nce across all a ~~s~~ pects of our ~~business.~~

OUTL OOK

We ex ~~pect the global economic uncer~~ tainty will con ~~t~~ inue well in ~~to 2012, however growth in Asi~~ a (excluding Ja ~~p~~ an) is foreca ~~st to continue at an annual rate~~ exceeding 7% while growt ~~h in Europe and the United State~~ s is expected t ~~o~~ remain subdued. The Australian and New Zealand economies are expected grow at over 3% and 2.5% respectively.

As the ~~uncertainties around sovereign~~ debt in Europ ~~e~~ contin ~~ue to play out, we expect contin~~ ued volatility i ~~n~~ world marke ~~ts. This is f owing through to hig~~ her funding c ~~o~~ sts and at the ~~same time regulators around th~~ e world are pu ~~s~~ hing ahead ~~with new capital and liquidity r~~ equirements f ~~o~~ r banks. These ~~changes will increase capital co~~ sts, ultimately ~~p~~ lacing furthe ~~r pressure on the fragile global~~ economy.

Our unique super regional strategy positions us to take advantage of the signifi cant opportunities we expect to arise in Asia Pacifi c.

These will come from our exposure to growth markets, our strong capital position and the experience of our international management team. With the diffi cult global economic situation, however, it will also be prudent to manage our business tightly.

A ~~NZ has a clear direction and our~~ results in 2011 de ~~monstrate the progress we are~~ making in deli ~~v~~ ering va ~~lue and performance for our sh~~ areholders, ou ~~r~~ cu ~~stomers and the community.~~

These results also refl ect the ongoing commitment and dedication of our management team and the entire staff of ANZ and I would like to take this opportunity to thank them for their eff orts during the year. My thanks also go to my fellow Directors for their commitment and support during 2011.

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John Morschel Chairman

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CHIEF EXECUTIVE OFFICER’S REPORT »

A Message From Michael Smith

~~ANZ~~ ’ ~~n~~ al strat ~~nanc~~ ial stre ~~n s sup~~ er regio ~~egy and our f~~ gth provide us with unique opportunities – opportunities which are open to very ~~few banks~~ in the ~~w~~ orld rig ~~ht now.~~

ANZ’s key customer franchises in Australia, New Zealand and Asia Pacif c produced solid performances in 2011.

~~Provision charges~~ were 33% low ~~e~~ r than 2010 w ~~hich helped to drive ANZ’s perfor~~ mance togeth ~~e~~ r with somew ~~hat subdued underlying revenu~~ e growth of 7 ~~%~~ . This was sign ~~if cantly impacted by the v~~ olatile global ~~e~~ conomic situat ~~ion in the second half of the~~ year and like ~~m~~ ost banks in A ~~ustralia and around the world,~~ conditions for our Institution ~~al Markets trading business d~~ eteriorated an ~~d~~ impacted Gr ~~oup earnings.~~

While we would have liked a stronger performance in the last few months of the year, we didn’t see the environment as one in which it was prudent to expose ANZ to excessive risk.

We continued to invest heavily in our super regional strategy with costs up by 11% although, refl ecting the more dif cult economic environment later in the year, cost growth in the second half was contained to 2%.

~~During 2011, we c~~ ontinued to st ~~re~~ ngthen our c ~~apital position and improve dive~~ rsity in our sou ~~r~~ ces of funding ~~including further growth in~~ customer dep ~~o~~ sits which no ~~w account for 61% of Group fun~~ ding.

Importantly, we also saw a signifi cant improvement in staff engagement. Employee engagement increased from 64% to 70% and our goal is to continue to improve this measure to meet the global best-in-class standard in future years.

REGIONAL PERFORMANCE[*]

In 2011 we produced solid results in each area of our business highlighting the strength of our key franchises in Australia, New Zealand and Asia Pacifc.

~~In Australia, p~~ rofi t increase ~~d~~ 4% based on good cost ~~managemen~~ t and solid res ~~u~~ lts in Retail and Commercial. I ~~n Wealth, prof~~ ts fell refl ectin ~~g~~ diffi cult market conditions a ~~n~~ d ~~increased ins~~ urance costs f ~~o~~ llowing the extreme weather ~~events early~~ in the year. Ple ~~a~~ singly, we have continued to ~~increase cust~~ omer satisfacti ~~o~~ n in all segments and despit ~~e increasing co~~ mpetition, we’ ~~v~~ e maintained our number on ~~e ranking for c~~ ustomer satisf ~~a~~ ction in Retail.

In Asia Pacif c, Europe and America, we maintained momentum with US Dollar profi t up 22%. We are continuing to invest in Asia to build scale and capability however, having completed ~~the integratio~~ n of the Asian business we acquired from th ~~e Royal Bank o~~ f Scotland, we ~~a~~ re now managing expenses ~~m~~ ore ~~tightly while~~ still investing f ~~o~~ r growth. The benefi t of this ~~investment is~~ showing in th ~~e~~ franchise we are building.

In New Zealand, profi t rose by 49% driven by a large fall in provisions and tight control of costs. The New Zealand economy is slowly recovering but the environment is likely to remain soft for some time. Nevertheless, we have a consistent focus on simplifi cation and effi ciency within our New Zealand business and I’m optimistic about what can be achieved.

MANAGEMENT BOARD

Full biography details can be found o ~~n our website:~~ anz.com/about-us/our-company/ management

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» SUSIE BABANI Group Managing Director, ~~Hum~~ an Resources

» PHILIP CHRONICAN Chief Executive Offi cer, A ~~ustralia~~

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» ALISTAIR CURRIE Group Chief Operating Offi cer

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» SHAYNE ELLIOTT

Chief Executive Offi cer, Institutional

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» DAVID HISCO Chief Executive Offi cer, New Zealand

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» GRAHAM HODGES Deputy Chief Executive Offi cer

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» PETER MARRIOTT Chief Financial Offi cer

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» CHR ~~IS PAGE~~ Chief ~~Risk Of cer~~

~~» JO~~ YCE PHILLIPS ~~Grou~~ p Managing Dir ~~e~~ ctor, Strategy, M&A, Marketing and Innovation

» ~~ALEX THURSBY~~ C ~~hief Executive Of cer, Asia~~ Pacifi c, Europe and America

» ANNE WEATHE ~~R~~ STON Chief Informatio ~~n~~ Offi cer

Institutional prof t increased by 7%. The business is delivering more diversif ed earnings by product, customer and geography, and continued growth in our client base as a result of a clear strategy to build the world’s best bank for clients driven by trade and capital fl ows in the Asia Pacifi c region, particularly in resources, agribusiness and infrastructure. However, the key issue for Institutional in 2011 was the fall in Global Markets earnings as a result of the extre ~~mely volatile market conditions a~~ lthough this ~~h~~ as been consis ~~tent with the performances see~~ n at other ban ~~k~~ s both dome ~~stically and globally.~~

UNIQ UE GROWTH OPPORTUNITIES

ANZ’s ~~super regional strategy is clear,~~ consistent and aligned to the ~~economic opportunity in the A~~ sia Pacifi c regi ~~o~~ n. We are foc ~~used on realising its full potent~~ ial by successf ~~u~~ lly execut ~~ing against that strategy in all o~~ ur key market ~~s~~ .

We believe the global economic dif culties, the structural shift taking place as world economic growth shifts from the West to the East particularly China and India, and the subdued domestic environment plays perfectly to ANZ’s strengths.

Our f nancial strength will provide us with opportunities for careful strategic growth as capital-constrained international banks retreat from our region.

The investment we have made in technology and our operations hubs continues to support the transformation of our productivity performance. This is already underway and we will also respond by placing a stronger emphasis on generating on-going effi ciencies given the more constrained domestic conditions.

So ~~we are optimistic about the futu~~ re for ANZ. We ~~h~~ ave choices an ~~d opportunities that are open t~~ o very few ban ~~k~~ s in the w ~~orld right now – but they are op~~ en to ANZ. Thi ~~s~~ is a credit to ~~all of our staf who have perfor~~ med well in ch ~~a~~ llenging environment and I thank them for their contribution.

We are positioned quite uniquely going into 2012 creating an ~~other window for ANZ to make~~ a step change in growth, to ~~expand the support we provid~~ e to customers ~~,~~ to drive su ~~perior long-term growth and d~~ iff erentiated re ~~t~~ urns, and to ~~create value for our shareholde~~ rs and the co ~~m~~ munities w ~~e work in.~~

We ha ~~ve a portfolio, diversif ed by geo~~ graphy, busin ~~e~~ sses and in ~~dustry focus, which is increasin~~ gly connected ~~s~~ o the sum is ~~greater than the parts.~~

That diversifi ed portfolio gives us options and choices to deliver diff erentiated revenue growth and shareholder value by building our customer franchises in Australia and Asia while maintaining our strong position in New Zealand. These growth options are simply not available with a domestic-only strategy.

Michael Smith Chief Executive Offi cer

All fi gu ~~res on an underlying basis unless noted~~ otherwise.

~~Austr~~ alia ~~Divisi~~ on

AUSTRALIA

Philip Chronican,

Chief Executive Offi cer, Australia

BUSINESS PROFI LE

~~ANZ has been ope~~ rating in Austra ~~l~~ ia for more tha ~~n 175 years. Across our Retail,~~ Wealth and Co ~~m~~ mercial busin ~~esses, we serve 5.4m consum~~ er and com ~~m~~ ercial custome ~~rs.~~

Our aim is to be a bank our customers trust for advice, insights and straightforward fi nancial services.

~~We focus on gettin~~ g to know our ~~c~~ ustomers, und ~~erstanding what~~ ’ ~~s relevant to~~ them and hel ~~p~~ ing provide th ~~em with conf dence and co~~ ntrol over thei ~~r~~ fi nances.

We do this through our network of more than 800 branches and 200 business centres, our 24-hour contact centre, our 2,700-plus ATMS, our leading online and mobile banking applications and our network of independent fi nancial advisers.

For information about our Institutional business see pages 16 and 17.

BUSINESS HI GHLIGHTS

~~» Delivered a~~ strong fi nanci ~~a~~ l performance, with profi t ~~before prov~~ isions in Retail Banking up 7% and in ~~Commercia~~ l Banking up 6 ~~%~~ .

» Achieved above system growth in Retail deposits[1]
(1.5 x system) and mortgages[2] (1.2 x system).
» Grew business lending by 5% and business deposits by 18%.
» Extended our successful A–Z Review program to small business customers, providing needs-based reviews of our customers fi nancial goals.
~~» Introduced~~ multilingual c ~~a~~ pabilities to our fl eet of more ~~than 2,700~~ ATMs.
~~» Launched a~~ new banking ~~s~~ ervice for affl uent customers, ~~providing a~~ dedicated poi ~~n~~ t of contact, priority access to ~~specialists,~~ products and ~~o~~ ff ers and a premium level of ~~service for c~~ redit pre-appr ~~o~~ vals and response times.
» Expanded MyAdvice, a phone-based service providing customers in rural and remote areas access to advice from an ANZ f nancial planner.
» ANZ’s goMoney[TM] mobile banking and payments application for the iPhone, now used by almost 420,000 customers, has been upgraded, with BPAY functionality and features for visually impaired people.
~~» Continued~~ to lead the oth ~~e~~ r major banks in customer satisfaction with main fi nancial institution.
1 APRA banking statistics
~~2 APRA banking s~~ tatistics and RBA d ~~a~~ ta

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CASE
STUDY
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THE BANK OF CHOICE FOR BUSINESSES TRADING WITH ASIA

Key to our growth aspirations is being the bank of choice for businesses trading with Asia.

Cross-border trade has historically been the domain of large institutional clients. Now, we are putting our capabilities in cash management, trade fi nance, foreign exchange and risk to work for Australian small and medium-sized businesses.

ANZ’s presence in 14 key markets in the Asia Pacifi c region helps cut payment times and better manage the working capital needs of our customers. With an ANZ person at each end of a transaction, we deal directly

with local banks and agencies which speeds up the time it takes to process documents.

Victorian dairy farmers the Mulcahys produce and process regular milk as well as A2, a variety rich in A2 beta-casein protein believed to assist digestion. The Mulcahys switched to ANZ this year to benefi t from our local relationships, agribusiness expertise and super regional connections. Already exporting to Malaysia, the Mulcahys are now working with ANZ’s team of specialists in cash management trade fi nance, markets, foreign exchange and risk to expand their local operations and open further export opportunities in Malaysia, China and Vietnam.

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FINANCIAL PERFORMANCE [#] ($M) 2011 2010 Movt % NON-FINANCIAL PERFORMANCE [##] 2011 2010
Opera ting income 8,179 7,606 8% Customer Satisfaction (Source: Roy Morgan Research – 79.8% 79.9%
Main Financial Institution)
Operating expenses (3,506) (3,256) 8%
Total employees [1] (FTE) 24,162 23,633 [2]
Profi t before credit impairment 4,673 4,350 7%
and in come tax Employee engagement [1] 70 % 64%
Provision for credit impairment (711) (583) 22% Total women in management [3] 40.1% 40.2%
Profi t before income tax 3,962 3,767 5% L ost time injury frequency rate [1] 2 .1 2.2
Income tax expenses and (1,185) (1,093) 8% Volunteering hours [1] 46,543 38,825
non-controlling interest
Community investment [4] ($m) 12 . 2 11.9
Profi t after tax 2,777 2,674 4%
GHG emissions [5 ] (tonnes CO 2 -e) 166,756 170,299 [2]
Total assets 272,331 260,993 4%
Paper [6] (tonnes per FTE) 0.17 0.21 [2]
Contribution to Group earnings 49% 53%
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# Underl ~~ying prof t is adjusted for non-core items th~~ at are not part of th ~~e~~ normal ongoing op ~~erations of the Group including one-of gai~~ ns and losses, non-c ~~o~~ ntinuing businesses, timing diff erences on economic hedges and acquisition related costs. ## Non-fi nancial data is based on geography. * Underlying. 1. Data includes employees in our Institutional divisions and business enablement functions such as Technology and Corporate Centre. 2. Restated. 3. Women in management is calculated using headcount of active ~~employees and includes staf working for a~~ nd being paid by AN ~~Z~~ . FTE also captures ~~staf on special leave including leave withou~~ t pay, parental leav ~~e~~ and long-term sick leave. 4. Calculated according to the London Benchmarking Group methodology and excludes foregone revenue. 5. Pending external verifi cation. Includes Scope 1 and 2 emissions, developed in accordance with NGERS. One Path data has been included, with data estimated for the 3 months prior to ANZ taking operational control. A detailed GHG pro ~~f le (Scope 1, 2 and 3) and our full environm~~ ental report will be ~~av~~ ailable on anz.com . ~~6. Pending external verif cation, includes b~~ oth offi ce and print ~~(~~ customer) paper.

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EUROPE
AMERICA
ASIA
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PACIFIC
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Asia Pacifi c, Europe and America Division

Alex Thursby,

Chief Executive Offi cer, Asia Pacifi c, Europe and America

BUSINESS PROFILE

The Asia Pacifi c, Europe and America business operates in 14 Asian markets and 12 countries in the Pacifi c as well as Europe, America and the Middle East.

The business is focussed on connecting customers with opportunities across our regional network spanning Asia, the Pacifi c, Australia and New Zealand.

Our strategy leverages continued growth in Asia and our regional insight, and capitalises on growing trade and investment fl ows across the Asia Pacifi c region.

We work with local policy makers to ensure our contributions to fi nancial services industry growth is responsible and meets the needs of the community.

We are the biggest Australian bank in Asia, the leading bank in the Pacifi c, the largest foreign bank franchise in the Greater Mekong and a top four foreign bank in Indonesia.

BUSINESS HIGHLIGHTS

» Commenced operations at our locally incorporated subsidiary in China in October 2010, providing the foundation to expand our presence, products and capabilities for customers in China. A new branch opened in Chongqing in western China in March 2011.
» Completed our fi rst Chinese Renminbi (RMB)-denominated trade settlement deal in February 2011 for New Zealand exporter NAC Trading Ltd. Providing customers with comprehensive off shore RMB products strengthens our super regional off ering and links clients to business opportunities in Greater China.
» Launched our fi rst global brand campaign, refl ecting the need for a globally consistent campaign that supports our super regional strategy. It has helped build awareness of our brand in our key markets and segments.
» Identifi ed as the fastest growing corporate bank in Asia in the 2011 Greenwich Associates Survey. The survey found our penetration in Asian markets doubled from 11% to 23%, putting us among the top 10 Asian corporate banks in terms of client relationships.
» Donated more than $1m to support recovery eff orts in Japan following the devastating earthquake and tsunami as well as keeping our doors open for customers during this diffi cult time. This was topped up by $170,000 in staff donations, which were matched by ANZ, and $270,000 in customer donations.
» Expanded our Corporate Responsibility agenda by growing our MoneyMinded program to fi ve countries, increasing volunteering hours to over 28,000 in partnership with Australian Volunteers International and continuing Banking the Unbanked in Fiji.

OUR SUPER REGIONAL STRATEGY COMES TO LIFE The opening of the Mumbai branch re-establishes ANZ’s banking presence in India.

We commenced banking operations in India with the opening of our fi rst branch in Mumbai in June 2011. The branch will support trade and investment fl ows between India and the Asia Pacifi c region, including Australia and New Zealand, as well as Europe and North America.

India is a major engine for global economic growth and its trade with Asia has doubled over the last fi ve years. It has become Australia’s fourth-largest export destination, driven by rapid economic growth and demand for natural resources.

India is an integral part of our super regional strategy and we are grateful for the support we received from the Indian and Australian governments and regulators in opening the Mumbai branch.

The branch will initially support corporate and institutional banking clients in India, providing a full range of Indian Rupee and foreign currency banking services including funding and hedging solutions, trade fi nance, cash and payments, foreign exchange and debt capital markets.

The Mumbai branch builds on the strong familiarity that ANZ enjoys in India and the presence of our technology and back offi ce processing centre in Bangalore, which employs approximately 5,000 people.

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CASE
STUDY
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FINAN CIAL PERFORMANCE [#] ($M) 2011 2010 Movt %
Operating income 2,494 2,068 21%
Operating expenses (1,488) (1,142) 30%
Profi t before credit impairment 1,006 926 9%
and income tax
Provisi on for credit impairment (110) (154) -29%
Profi t before income tax 896 772 16%
Income tax expenses and (175) (96) 82%
non-c ontrolling interest
Profi t after tax 721 676 7%
Total a ssets 88,108 58,721 50%
Contribution to Group earnings 13% 13%
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N ON-FINANCIAL PERFORMANCE [##] 2011 2010
Total employees [1] (FTE) 15,124 13,816
E mployee engagement [1] 70% 66%
Total women in management [2] 42.8% 42.9%
Volunteering hours [1] 28,117 33,542
Community investment [3] ($m) 1.7 1.5
GHG emissions [4] (tonnes CO 2 -e) 30,189 22,725
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New Zeal a nd Divisi on

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NEW ZEALAND
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David Hisco,

Chief Executive Offi cer, New Zealand

BUSINESS PROFI LE

~~ANZ has operated~~ in New Zeala ~~n~~ d for over 170 ~~years and has a relation~~ ship with more than 2 million c ~~ustomers – almost 50% of New~~ Zealanders.

Our business accounts for 1%[1] of New Zealand’s Gross Domestic Product.

~~Our brands, ANZ a~~ nd The Nationa ~~l~~ Bank, have mo ~~re branches and more ATMs th~~ an any other ba ~~n~~ k, and we emp ~~loy 9,000 staf in 350 location~~ s.

As New Zealand’s largest bank, ANZ plays an important role in assisting New Zealand’s economic growth and development.

BUSINESS HIGHL IGHTS

~~» Introduced a re~~ gional leaders ~~h~~ ip structure to ~~bring decision-makin~~ g closer to our ~~c~~ ustomers.
» Created stand-alone businesses for wealth and business banking; and merged our rural and commercial business to increase our focus on these important segments.
» Initiated a simplifi cation program, including signifi cant technology investment to move to a single core banking system.
» ANZ recorded the fastest growing customer satisfaction of any major bank in New Zealand this fi nancial year[2] .
~~» Launched a new~~ mobile banki ~~n~~ g application, ~~ANZ goMoney~~[TM] ~~, wit~~ h more than 1 ~~8~~ ,000 customer ~~s since it was f rst launc~~ hed in mid-A ~~p~~ ril 2011.
~~» Introduced~~ the fi rst 'contac ~~t~~ less' credit card into New Zeala ~~n~~ d.
~~» Contributed~~ to the succes ~~s~~ of Rugby World Cup 2011 as ~~a Worldwide~~ Partner, and t ~~h~~ ereby increased the awarenes ~~s of ANZ.~~
» Supported customers and staff impacted by the Canterbury earthquakes and the Pike River mine explosion.
» Won a number of industry awards:
» ANZ and National Bank named number one and two respectively in the Sunday Star-Times Canstar Cannex Bank of the Year Award.
~~» Our Instit~~ utional team ~~w~~ as rated outright fi rst for ~~17 of 21 k~~ ey measures i ~~n~~ cluding overall satisfaction, ~~relationsh~~ ip manager c ~~a~~ pability and trusted adviser[3] .
~~» OnePath~~ won KiwiSaver Fund Manager of the Year fro ~~m FundSou~~ rce and Morni ~~n~~ gstar, and Fund Manager of t ~~h~~ e ~~Year from~~ FundSource.
~~» Our Cont~~ act Centre was recognised as the best in New ~~Zealand a~~ t the CRM Co ~~n~~ tact Centre Industry Awards.
1 ANZ Economics: New Zealand’s Key Merchandise Trade (Markets by Commodity), August 2011
2 Source: The Nielsen Company’s Consumer Finance Monitor
3 Source: 2011 Peter Lee Associates Large Corporate and Institutional Relationship Banking and Transaction Banking Survey

CONNECTING NEW ZEALAND TO ASIA New Zealand businesses are making the most of the growing connections between New Zealand and Asia. China is New Zealand’s second largest export market and was worth NZ$5.6b in the past 12 months, making up 12% of New Zealand’s exports.

Dairy led the way for exports to China and were worth NZ$2.3b in the past year, followed by forestry which was worth NZ$1.4b and wool and skins at NZ$0.5b.

Examples of how we’ve helped customers connect with China in the past year include:

» Being the fi rst trans-Tasman bank to off er trade deals in the Chinese currency Renminbi (RMB). Our New Zealand and Hong Kong teams worked together to arrange the fi rst RMB deal for Wellington-based customer NAC Trading.
» Facilitating a signifi cant loan through ANZ China for one of New Zealand’s largest corporate companies as part of the company’s expansion strategy into China.

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CASE
STUDY
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» Connecting customers to our networks – including introducing New Zealand winemakers to potential partners in China. This resulted in Marisco Vineyards signing a distribution deal with one of China’s largest wine companies and Jackson Estate signing a distribution deal with a retail wine outlet.

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FINAN CIAL PERFORMANCE [#] ($M) 2011 2010 Movt % NON-FINANCIAL PERFORMANCE [##] 2 0 11 2010
Operating income 2,159 2,109 2% Retail customer satisfaction [1]
» ANZ 89% 85%
Opera ting expenses (1,015) (1,057) (4%) » NBNZ
92% 90%
(Source: Nielsen Consumer Finance Monitor)
Profi t before credit impairment 1,144 1,052 9%
and income tax Total employees [2] (FTE) 9,270 9,412
Provisi on for credit impairment (166) (409) (59%) E mployee engagement [2] 7 0 % 63%
Profi t before income tax 978 643 52% Total women in management [3] 35.0% 34.5%
Incom e tax expenses and (286) (180) 59% Lost time injury frequency rate [2] 1 .8 2.2
non-c ontrolling interests
Volunteering hours [2] 16,750 18,285
Profi t after tax 692 463 49%
Community investment [4] ($m) 3 .0 2.8
Total a ssets 70,273 69,711 1%
GHG emissions [5] (tonnes CO 2 -e) 11,164 12,429 [6]
Contribution to Group earnings 12% 9%
Paper [7] (tonnes per FTE) 0.13 0.15
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# Underlying profi t is adjusted for non-core items that are not part of the normal ongoing operations of the Group including one-off gains and losses, non-continuing businesses, timing diff erenc ~~es on economic hedges and acquisition relate~~ d costs. ## Non-fi nan ~~c~~ ial data is based on ge ~~ography. * Underlying.~~ ~~1. This year NZ has ado~~ pted the methodolo ~~g~~ y used in Australia for tracking customer satisfaction. On a like-for-like basis with 2010, ANZ customer satisfaction is 57% (up 3%) and NBNZ is 66%, the same as the September 2010 result. 2. Data includes employees in our Institutional divisions and business enablement functions such as Technology and Corporate Centre. 3. Women in management is calculated using headcount of active em ~~ployees and includes staf working for and be~~ ing paid by ANZ. FT ~~E~~ also captures staff o ~~n special leave including leave without pay, p~~ arental leave and lo ~~n~~ g-term sick leave. 4. Calculated according to the London Benchmarking Group methodology and excludes foregone revenue. 5. Pending external verifi cation. Includes Scope 1 and 2. A detailed GHG profi le (Scope 1, 2 and 3) and our full environmental report will be available on anz.com. 6. Emission factors were updated by the NZ Government in 2011 – leading to a revision of 2009/10 ~~data.~~ ~~7. Pending external verif cation, includ~~ es both offi ce and p ~~r~~ int (customer) paper.

Institu tio n al Divisi on

Shayne Elliott,

~~Chief Executive Of~~ fi cer, Institutio ~~n~~ al

BUSINESS PROFILE

Institutional provides global fi nancial services to government, corporate and institutional clients. We are focussed on providing solutions for clients with complex f nancial needs, based on a deep understanding of their ~~businesses and in~~ dustries, with ~~p~~ articular exper ~~tise in natural resources, a~~ griculture, and infrastructure. ~~We of er specialist products~~ and services w ~~i~~ thin Transactio ~~n Banking, Global Loans and~~ Global Markets in Australia, Ne ~~w Zealand, Asia Pacif c, Europ~~ e and America ~~.~~

BUSINESS HIGHL IGHTS

~~» Underlying pro~~ fi t up 7% to a r ~~e~~ cord $1.9b, de ~~spite a dif cult tradin~~ g and econo ~~m~~ ic environment ~~.~~
~~» Customer reven~~ ues up 7% glo ~~b~~ ally, with Asia ~~revenues up 38%. Custom~~ er revenues i ~~n~~ the priority se ~~ctors of resources, agrib~~ usiness and in ~~f~~ rastructure gre ~~w 19%.~~
» Within priority products, FX and Commodities up 28%, Payments and Cash Management up 13% and Trade up 29%.
» Investment continued in core banking platforms such as ~~cash manag~~ ement. More t ~~h~~ an 7,000 customers migrated ~~onto the Tra~~ nsactive onlin ~~e~~ banking platform.
» Global Markets has developed new product capability and customer channels, delivering growth in customer sales. Markets’ sales up 13% and now account for 65% of overall Markets’ revenue.
» Expenses up 14%, refl ecting focussed investment to support strategic priorities.
» We are self-funding, with customer deposits now exceeding net loans and advances by $26b.
~~» The provisio~~ n charge decr ~~e~~ ased 65% refl ecting ~~improveme~~ nts in credit qu ~~a~~ lity, as well as the credit cycle.
~~» Achieved ou~~ tright lead ba ~~n~~ k status in both Australia and ~~New Zealan~~ d in the Peter ~~L~~ ee Associates 2011 survey of ~~large corpo~~ rate and instit ~~u~~ tional banking clients[1] .
» Ranked No 1 in Australia and New Zealand capital ~~markets[2] an~~ d moved to fi r ~~s~~ t overall ranking in the 2011 ~~(1H) Thoms~~ on Reuters Asi ~~a~~ Pacifi c (ex Japan) Mandated ~~Loan Arran~~ ger League Ta ~~b~~ le.

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FINANCIAL PERFORMANCE [#] ($M) 2011 2010 Movt %
Operating income 4,906 4,947 -1%
Operating expenses (2,001) (1,748) 14%
Prof t before credit impairment 2,905 3,199 -9%
and income tax
Provision for credit impairment (258) (741) -65%
Prof t before incom e tax 2,647 2,458 8%
Income tax expense and (752) (680) 11%
non-controlling interest
Prof t after tax 1,895 1,778 7%
Total assets 237,676 185,021 28%
Contribution to group earnings 34% 35%
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NON-FINANCIAL PERFORMANCE 2011 2010
Relationship St rength Index ran k ing [1]
» Australia > 1 > (equal) 1
» New Zealand > 1 > 1
Total employees (FTE) 6,448 6,180
Employee eng agement 70% 66%
Total women in management [3] 30% 31.4%
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* Underlying. 1. According to the Peter Lee Associates Large Corporate and Institutional Relationship Banking Survey 2011. 2. According to Bloomberg league tables. 3.** Women ~~in management is~~ calculated using hea ~~d~~ count of active employees and includes s ~~ta~~ ff working for and being paid by ANZ. FTE also captures staff on special leave including leave without pay, parental leave and long-term sick leave.

# Underlying profi t is adjusted for non-core items that are not part of the normal ongoing operations of the Group including one-off gains and losses, non-continuing ~~businesses, timing dif er~~ ences on economic ~~h~~ edges and acquisitio ~~n related costs.~~

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CASE STUDY

SUPPORTING OUR ENERGY NEEDS

We recognise the importance of supporting the evolution of the growing renewables sector and of encouraging innovation in the transition to a lower carbon future.

Insight is essential in ensuring we progress in a sustainable way. In this respect, the partnership between ANZ Institutional and World Wildlife Fund Australia is another way of increasing awareness of environmental sustainability issues impacting our clients, as well as the sectors and geographies in which we operate.

Renewable energy projects currently represent approximately a third of our project fi nance power portfolio. Our energy Policy commits us to increasing the gas and renewables proportion of our project fi nance power portfolio by 15–20% by 2020.

Since 2002, we have supported the global wind sector, with a wind project fi nance portfolio accounting for approximately 1,451mW of energy, across 13 unique projects.

We are now also the leading Australian bank in the trading of Renewable Energy Certifi cates, having traded more than $2b in the sector in the last fi nancial year.

Our involvement in the sector also extends to supporting projects involving landfi ll gas, hydro, solar and geothermal power stations.

Techn olo g y

Anne Weathersto n,

~~Chief Information~~ Offi cer

BUSINESS PROFILE

Group Technology is responsible for the provision of all IT services to ANZ businesses. These services include the daily maintenance and support of our core banking systems and the design and development of new business applications. As a key enabler of the Bank’s business agenda, Technology is also responsible for the defi nition and development of the Bank’s IT strategy. During 2011, Technology worked in partnership with the Business to defi ne a new Technology Roadmap for the Bank to enable the Bank’s super regional aspirations.

~~ANZ~~ ’ ~~s technology~~ services are pr ~~o~~ vided from a ~~number of business locations~~ ; specifi cally, ~~A~~ ustralia, New Z ~~ealand and Bangalore in India~~ where we hav ~~e~~ a dedicated I ~~T department of 1,500 technolog~~ y professional ~~s~~ . This diversity ~~of location~~ allows ANZ to access the right skills in the right locations for our growing technology agenda to enable the Bank’s super regional strategy.

BUSINESS HIGHLIGHTS

2011 was a demanding but productive year for Technology in ANZ. Key achievements included signifi cant progress made against all critical success measures:

~~» Service inciden~~ ts signifi cantly ~~d~~ ecreased com ~~pared~~ to the previous year representing less disruption to our customers.
~~» 2011 was a reco~~ rd year for ne ~~w~~ systems deliv ~~ery both to improve custom~~ er business pr ~~o~~ positions and ~~upgrade legacy IT platfo~~ rms to improv ~~e~~ availability an ~~d capacity for growth.~~
» Technology Division run costs remained fl at, despite of considerable new growth and demand for our services.
~~» Employee e~~ ngagement sc ~~o~~ res rose by 5%. This was agai ~~n~~ st a background of a major restructuring of staff that moved a fragmented workforce to a more consolidated role-based professional services capability.
~~» Risks associ~~ ated with the ~~B~~ ank’s technology platforms, ~~has been an~~ area of active management and investment ~~. A new cont~~ rol framework ~~h~~ as been introduced and ann ~~u~~ al ~~performanc~~ e against all in ~~t~~ ernal and external oversight i ~~s demonstrat~~ ing an improv ~~i~~ ng trend.
~~» Given the in~~ creasing imp ~~o~~ rtance of security, information ~~security has~~ and will rema ~~i~~ n an increasingly important ar ~~e~~ a ~~of investme~~ nt.

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NON-FINANCIAL PERFORMANCE 2011 2010
Total employee s (FTE) 2,942 2,667
Employee engagement 65% 61%
Total women in management [1] 24.7% 25.4%
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* Underlying. 1.** Women in management is calculated using headcount of active employees and includes staff working for and being paid by ANZ. FTE also captures staff on special ~~leave including leav~~ e without pay, pare ~~n~~ tal leave and long-term sick leave.

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CASE STUDY

SIMPLIFYING OUR TECHNOLOGY LANDSCAPE

With operations expanding across 32 markets, having standardised systems is a vital component in supporting ANZ’s super regional direction.

This year, ANZ launched its Technology Strategy – 'Towards 2017'. The strategy defi nes the guiding principles for Technology, confi rms the scope and intent of our Group-wide approach to delivering a technology-enabled agenda and provides a clear roadmap for transforming the way in which Technology delivers for ANZ.

A key element in the strategy is standardising our systems to support growth in Asia and delivering integrated platforms to provide better services for our customers. As part of this journey, we are deploying a new core banking platform across 12 strategic Asian countries. This will ensure a consistent and effi cient banking experience for our customers in the region, making it easier for them to do business with ANZ.

It is a big job, but one for which ANZ is well positioned, making the most of our international technology delivery capability to support the deployment. The successful implementation of a new core platform will provide more streamlined and effi cient processes and drive immediate benefi ts to both our staff and customers. With an eye on the future, the new platform also lays the foundation to ensure ANZ has the capacity to meet future demand as it grows in the region.

Standardisation will allow ANZ to better support the introduction and enhancements of the products our customers expect, including greater functionality and, over time, seamless access to our banking services across the entire region.

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CORPORATE
RESPONSIBILITY
FRAMEWORK
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We want to do the right thing

In a world where expectations of business are evolving rapidly, we want to be a role model for responsible growth and behaviour.

Our corporate responsibility (CR) framework was developed in consultation with more than 600 stakeholders, including staff , customers, community groups, NGOs, government and regulators.

It acknowledges the roles we can play in society – through helping individuals to build prosperity; through contributing to our local communities; and through growing our business responsibly.

FIVE PRIORITY AREAS OF FOCUS GUIDE OUR DECISIONS, INVESTMENTS AND INITIATIVES:

> RESPONSIBLE PRACTICES

We have introduced clear governance structures; are improving management of social, environmental and reputation risks and opportunities; and are supporting our customers facing hardship.

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We live in
your world
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> EDUCATION AND EMPLOYMENT OPPORTUNITIES

We can make a signifi cant and sustainable diff erence to the lives of disadvantaged and under-represented individuals through providing education and employment opportunities.

> FINANCIAL CAPABILITY

Our programs are helping to build fi nancial capability in our communities across our region, particularly for those on low incomes, and those from disadvantaged backgrounds.

> BRIDGING URBAN AND RURAL ECONOMIC AND SOCIAL DIVIDES

We are playing a role in helping to bridge urban and rural divides through extending banking access and supporting fi nancial inclusion.

> URBAN SUSTAINABILITY

We can do much to reduce the environmental footprint of our business activities and to encourage and support our customers to reduce theirs.

M onitoring o ur progres s

Ou ~~r corporate respon~~ sibility ~~(~~ CR) gov ~~ernance framewo~~ rk and ass ~~urance processes h~~ elp us t ~~o~~ closely ~~monitor our inve~~ stments an ~~d initiatives and m~~ easure t ~~h~~ eir eff e ~~ctiveness.~~

LEADERSHIP FROM THE TOP

Progress made on programs and initiatives that support our CR targets and objectives is reported annually to ANZ’s Board of Directors.

Each B ~~oard Committee is assigned for~~ mal responsib ~~i~~ lity for sp ~~ecif c aspects of our CR strategy~~ . For example, t ~~h~~ e Risk C ~~ommittee has oversight and for~~ mal responsibi ~~l~~ ity for management of new and emerging risks including social, environmental and reputation risk (responsible practices). The Human Resources Committee is responsible for ensuring we have adequate processes in place to attract and retain the best talent, engage and develop our people and provide a safe working environment (education and employment opportunities).

As wel ~~l, the framework that is used to~~ evaluate the perfor ~~mance of each of our Non-Exec~~ utive Directors is based ~~on the expectation that each D~~ irector is perfo ~~r~~ ming their d ~~uties, including having due rega~~ rd to our CR o ~~b~~ jectives, and th ~~e importance of ANZ's relations~~ hips with all it ~~s~~ stakeh ~~olders and the communities an~~ d environmen ~~t~~ s in whi ~~ch ANZ operates.~~

At the executive management level, our CR Committee (CRC) is chaired by our CEO and comprised of Group executives. The Committee meets bi-monthly to discuss the most material risks and opportunities for advancing our CR agenda.

PUBLI C TARGETS DRIVE RESULTS

Each y ~~ear our CRC and executive mana~~ gement team e ~~n~~ dorse a num ~~ber of public targets which aim~~ to address ga ~~p~~ s, and highli ~~ght areas where we can better u~~ se our skills an ~~d~~ resour ~~ces to make a signif cant contri~~ bution to socie ~~t~~ y.

We have also developed a range of policies, processes, tools, training programs and other initiatives to support staff to make balanced, informed and transparent decisions. For example, each year all employees are required to complete mandatory online training under the 'ANZ Essentials' risk accreditation framework covering topics such as money laundering, equal opportunity, health and safety, fraud, corruption and bribery. Our 'Welcome to ANZ' training module provides an overview of our CR framework and

tests the 'user' on scenarios and outcomes in applying our framework in practice.

As ~~a core value for our business, w~~ e promote the principle of accountability among our people, requiring employees to 'own their own actions' and make decisions that align with our economic, social, environmental and ethical responsibilities, and challenge those that are not in the best interests of the bank and our stakeholders.

W ~~e use a balanced scorecard eval~~ uation of corp ~~o~~ rate in ~~dicators (including social and env~~ ironmental) to ~~d~~ etermine pe ~~rformance-related compensatio~~ n for all mana ~~g~~ ers and se ~~nior executives, including our C~~ EO. These mea ~~s~~ ures are ali ~~gned with the achievement of A~~ NZ’s business ~~p~~ lan, and ov ~~er time have proven the most a~~ ppropriate ind ~~i~~ cators of ~~performance.~~

ASSURANCE

We have applied the AA1000 Accountability Principles Standard (AA1000APS – 2008) in the preparation of our 2011 reporting. Corporate Citizenship has provided an external assurance statement in keeping with the International Standard on Assurance Engagements (ISAE 3000) and the Accountability Assurance Standard (AA1000AS – 2008).

Se ~~e anz.com/assurance .~~

REPORTING AT ANZ

Our website anz.com contains detailed information about ANZ and our approach to CR, including our programs and initiatives, performance against our targets, and our approach to governance, stakeholder engagement and decision-making.

W ~~e undertake consultation and eng~~ agement with ~~s~~ takeholders thr ~~oughout the year to determine t~~ he content of o ~~u~~ r reporting. Ou ~~r approach is also informed by in~~ ternational fra ~~m~~ eworks an ~~d standards such as the Global R~~ eporting Initia ~~t~~ ive (GRI) Su ~~stainability Guidelines (includin~~ g the Financia ~~l~~ Services Se ~~ctor Supplement) and the UN G~~ lobal Compac ~~t~~ .

ANZ uses the London Benchmarking Group (LBG) framework for measuring and reporting community contributions and achievements. Haystac Positive Outcomes has provided a verif cation statement which is available at anz.com/lbg .

We en ga g e, li sten and r esp o nd

We engage with our stakeholders continuously, and listen and respond to the issues and opportunities they identify.

What we learn from stakeholders, including our toughest critics, helps us to:

~~» better understa~~ nd the issues t ~~h~~ at matter ~~to our commun~~ ities
~~» ref ne our polic~~ ies and practic ~~e~~ s
~~» foresee emergin~~ g trends
~~» identify opport~~ unities for new products and s ~~ervices.~~

~~Some examples o~~ f our commit ~~m~~ ent to stakeh ~~older engagement ove~~ r the past year include:

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Vuko Jabucanin,
Customer Service
Consultant
We provide multiple channels
for customers to tell us what they
think, including by phone and
online at anz.com .
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CUSTOMERS » Commissioned 50 separate pieces of customer research, including focus groups, in-depth interviews
and experimental pilots with customers to develop and refi ne products and services they most desire.
» Launched ANZ’s 'Your Say' online customer panel, which more than 6,000 customers have registered to join.
COMMUNITY » Engaged w ith NGOs and ot her stakeholders across Australia, Ne w Zealand and A sia Pacifi c to hel p assess and improve
our assistance for customers facing f nancial dif culty; improve service accessibility for people with disability;
extend our fl agship fi nancial education and capability programs; and develop our skilled volunteering program.
» Engaged with Oxfam, Greenpeace, World Wildlife Fund Australia (WWF), The Wilderness Society, The Uniting
Church Australia, Australian Conservation Foundation and other stakeholder organisations in Australia
to better understand their views on social and environmental issues in our lending portfolio.
STAFF » Conducte d the annual glo bal ' My Voice ' employee survey to measure staff e ngagement an d gain staf input
into areas for improvement.
» Launched a 'Sister Branch Program ' , which pairs every branch across our sup e r regional netw ork with another,
to encourage staff to connect with their colleagues.
GOVERNMENTS » Prepared s ubmissions for Federal parliament inquiries into credit reforms, s mall business le nding
AND REGULATOR S and banki n g competition.
» Provided s ubmissions to t he Parliamentary inquiry into Aus tralia's trade an d investment rel ationship with
Japan and the Republic of Korea, and for the negotiations t owards an Indo n esia – Australia Comprehensive
Economic Partnership Agreement (IA-CEPA).
INVESTORS » Held a 'Str a tegy Update', t o inform investors about the next phase of ANZ’s transformation.
» Engaged p roactively with the f nancial markets including a nalysts and fun d managers to di scuss Group
performa n ce and any eme rging issues for the Group.
SUPPLIERS » Held workshops with suppliers in Australia, and consulted with the International Business Leaders
Forum (IB L F) to develop a global approach to monitoring a nd improving o u r security servi ce providers'
performa n ce on human ri ghts.
» Worked wi t h our two most s ignif cant print partners, to incorpo rate carbon esti m ates into all print quotations.
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OUR APPROACH IN ACTION – ENERGY

We are the banker to a number of companies in the energy sector and recognise the importance of playing a signifi cant role in supporting the Australian economy as it transitions to a lower carbon future. However, we also recognise that this transition will take time and will require signifi cant investment in new sources of energy.

Eighty per cent of Australians currently rely on electricity generated from coal-fi red power stations to run their households and businesses, and tens of thousands of Australians across many metropolitan and regional communities work in the energy industry.

In this context, Australian governments at federal and state level continue to support the coal sector due to the critical

part it plays in ensuring the reliability and security of energy that 'powers' our economy. Government and industry are also working to grow the renewable and gas sectors to provide more sources of less carbon intensive power supply.

Renewable energy currently represents a third of our project fi nance energy portfolio. Projects we support include wind power, hydro and geothermal power stations. Our recently revised Energy Policy also commits us to continued growth in gas and renewable energy project fi nance, with a target of 15–20% growth – as a proportion of our project fi nance portfolio – by 2020.

We will continue to support our existing coal industry clients while also supporting the growing renewable energy sector.

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OUR
APPROACH Our approach to
IN ACTION responsible practices
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Banking depends upon trust. Our stakeholders expect us to manage and grow our business responsibly. This is particularly important as we move through uncertain times and are faced with worsening economic conditions globally.

EMBEDDING HUMAN RIGHTS ACROSS OUR BUSINESS

Since i ~~ntroducing our human rights~~ standards in 2 ~~0~~ 10 – 'Respe ~~cting people and communitie~~ s: ANZ’s appro ~~a~~ ch to huma ~~n rights~~ ' ~~, we have taken a num~~ ber of steps to bring them ~~to life for our staf , customers a~~ nd suppliers.

Our priority in the f rst year of implementation was to identify the areas of greatest risk and opportunity for promoting huma ~~n rights. Three initiatives were ide~~ ntifi ed and pr ~~o~~ gress has be ~~en monitored throughout the y~~ ear. These incl ~~u~~ de:

» reviewing our People policies to ensure they refl ect our human rights standards
» defi ning the human rights standards and acceptable behaviours we expect of suppliers
» inte ~~grating the standards into our so~~ cial and enviro ~~nm~~ ental trai ~~ning program to help staf respo~~ nsible for mak ~~i~~ ng busi ~~ness lending decisions.~~

Building global alignment in our people policies

Our People policies have been reviewed to ensure they refl ect our human rights standards and provide similar access to entitlements for all staff .

As a re ~~sult, we have introduced a num~~ ber of new po ~~l~~ icies such a ~~s the Global Study Assistance Po~~ licy and Global Flexible Work ~~Arrangement Policy, which assist~~ our people to ~~a~~ chieve a healthy work/life balance.

For ma ~~ny of our staf , particularly those~~ in the Asia Paci ~~f~~ c region, the rev ~~iew has led to them having acce~~ ss to entitleme ~~n~~ ts, such as stu ~~dy leave and leave for profession~~ al developme ~~n~~ t.

Supporting better sourcing decisions

We have strengthened and expanded our Global Sourcing Framework to embed responsible sourcing practices in every country where we operate.

This h ~~as involved the development a~~ new Global So ~~u~~ rcing Policy ~~which def nes the principles and~~ behaviours exp ~~e~~ cted of all e ~~mployees, consultants and con~~ tractors, and r ~~e~~ quires that al ~~l procurement be undertaken in~~ line with our b ~~u~~ siness values, ~~Code of Conduct and Ethics, C~~ R priorities, an ~~d~~ our hu ~~man rights standards.~~

We have also developed a new Supplier Code of Practice (SCOP), which outlines the standards we expect our suppliers to meet as a condition of doing business with us.

Th ~~e SCOP expands on previous com~~ mitments and i ~~n~~ cludes new, ex ~~plicit requirements related to bus~~ iness ethics and ~~h~~ uman rights su ~~ch as: adherence to internation~~ al standards a ~~n~~ d domestic re ~~gulations relating to the emplo~~ yment of child ~~r~~ en; and the pr ~~ohibition of unethical business pr~~ actices, such as i ~~n~~ appropriate gif ~~ts. We also actively encourage o~~ ur suppliers t ~~o~~ infl uence th ~~eir own supply chains to meet t~~ hese same sta ~~n~~ dards.

Taking account of human rights in our lending

We have integrated our human rights standards into a new mandatory training program developed to help corporate lending staff take greater account of social and environmental risks and opportunities.

Staf who complete the program – those responsible for making business lending decisions – learn about social and environmental risk analysis and how our responsible lending policies, including our human rights standards, should guide lending decisions.

Th ~~e training program complemen~~ ts other polici ~~e~~ s and pr ~~ocesses already in place, such a~~ s our sensitive ~~s~~ ector p ~~olicies and our social and enviro~~ nmental scree ~~n~~ ing tool.

The social and environmental screening tool was developed to help staf assess all new and existing customer relationships, o ~~n at least an annual basis. The to~~ ol helps our st ~~a~~ ff identify, mi ~~tigate and manage social and e~~ nvironmental ~~r~~ isks.

Our sensitive sector policies were reviewed in 2011 to ensure they provide clear and relevant decision-making principles to help guide our investment in socially and environmentally sensitive sectors, specifi cally water, forestry and forests, energy, and extractive industries. The policies apply wherever we operate and to all services we provide to customers from lending through to corporate advisory work. Information on our updated policies can be found at anz.com/cr .

Together, these policies and tools are helping us to embed a culture of responsible lending across our business and ensure that economic, social and environmental risks and opportunities (including our human rights standards) are balanced in all our actions and decisions.

RESPONSIBLE PRACTICES »

TAKING ACCOUNT OF OUR DECISIONS AND PRACTICES

In September 2010, class action proceedings were commenced against ANZ, claiming that some fees charged on deposit and credit card accounts are penalties and unlawful, or alternatively, that the imposition of these fees ~~was unconsciona~~ ble or unfair, a ~~n~~ d that the fe ~~es charged should be repaid~~ with interest.

ANZ is defending the claim on several grounds, including that the fees charged were fees for services provided to our customers. The case is at an early stage.

~~IMF (Australia) Ltd~~ , a publicly list ~~e~~ d company th ~~at provides funding for legal c~~ laims on a no- ~~w~~ in, no-fee bas ~~is, is funding the class action. IM~~ F has stated t ~~h~~ at it intends t ~~o fund similar class actions again~~ st all the othe ~~r~~ major banks i ~~n Australia.~~

BRICK BY BRICK

Disaster touched almost every c o rner of our re gion during the year, bringing with it traum a and devastat ion for our communities, cus tomers and st a ff .

2011 began with large-scale fl oods across four Australian States, followed by devastating earthquakes and ongoing aftershocks in Christchurch, Cyclone Yasi in North Queensland and the ~~horrif c impact of~~ the earthquak ~~e~~ and tsunami i ~~n Japan.~~

In Australia and New Zealand, we provided immediate assistance for many aff ected customers, off ering a range of support measures including suspending loan repayments and waiving early withdrawal fees for customers wanting to access term deposits.

“In June 2011, I personally welcomed ANZ’s off er of $1b in discounted mortgage lending to help Christchurch families. I am also aware ANZ has assisted over 2,900 Christchurch retail and business customers via a special earthquake package with a total value of about $334m, and that ANZ has provided interest-free overdrafts and other assistance to aff ected businesses totalling over $24m.

ANZ’s corporate responsibility programme, and its generous support of communities and businesses in need, is a great example of how a company can make a real diff erence.”

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John Key, Prime Minister of New Zealand

For staf living in disaster zones, we made available ~~emergency ca~~ sh grants of $ ~~1~~ ,000 and off ered paid leave ~~so they could~~ take time off t ~~o~~ manage their personal ~~circumstance~~ s or to support community eff orts.

In Christchurch, together with the NZ Government, we announced NZ$1b in mortgage lending assistance at a discounted rate to help relocate impacted homeowners. This commitment provides new residential mortgage lending and a special low interest rate of 2.04% below the normal rate for one year for homeowners whose homes are located in the government's declared ‘red zone’ – the area most severely damaged by the earthquakes.

~~We also of ere~~ d special assist ~~a~~ nce for our customers aff ecte ~~d by cyclones an~~ d fl oods in Au ~~s~~ tralia with car loan, personal lo ~~a~~ n ~~and payment~~ holidays for an ~~i~~ nitial period of three months, ~~to the value o~~ f $64m. OnePat ~~h~~ – our wealth management ~~business – and~~ ANZ Insuranc ~~e~~ will pay more than $11m ~~to customers~~ aff ected by the Queensland fl oods, and $9m ~~by Cyclone Ya~~ si. On top of thi ~~s~~ , more than $7m in ex-gratia ~~payments will~~ be paid to our ~~c~~ ustomers who did not have ~~f ood cover, bu~~ t were impact ~~e~~ d by riverine fl oods.

These initiatives are in addition to the $3.7m ANZ donated to disaster appeals this year, including matching of staff donations. Our staff also contributed a further $1.3m and volunteered many hours of their time to assist communities af ected by disaster. Likewise, our customers have given generously, donating $13.7m to disaster appeals via our branches and internet banking.

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Marianne De Gouw,
Personal Banker and St John
Ambulance Volunteer
Supporting emergency
services in Christchurch
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RESPONSIBLE PRACTICES »

KEY GOALS WE SET OUT TO ACHIEVE IN 2011

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PERFORMANCE
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CUSTOMERS

Maintain our leadership position on customer satisfaction among the major banks in Australia and improve our performance in New Zealand.

Improve our performance on the Peter Lee and Associates survey of Corporate and Institutional clients.

Resolve 90% of retail customer complaints within fi ve business days.

Publicly report evaluations and action plans arising from a review of our initiatives to support customers facing fi nancial diffi culty, including our Debt Advice and Early Assistance pilots in Australia and customer fi nancial well-being initiatives in New Zealand.

Implement products and services to assist clients and customers with the transition towards a lower carbon economy, including increasing the proportion of lending to the renewable energy sector.

EMPLOYEES

Achieve an employee engagement score of 68% and implement actions to respond to feedback from our 2010 My Voice Employee Survey.

Engage 120 of our senior executives in a leadership program to identify and make the most of opportunities created by our super regional growth strategy.

Implement employee well-being programs and reduce our Lost Time Injury Frequency Rate (LTIFR) in Australia (by 5–10%), New Zealand (by 1–5%) and stay under an LTIFR of 1.0 in India.

Achieve 100,000 hours volunteering globally and undertake skilled volunteering pilots in Australia, the Philippines, Papua New Guinea and Vietnam.

Implement a new approach to payroll giving and achieve 15% employee participation in Australia and New Zealand.

SUPPLIERS

Develop, implement and report on a Global Sourcing Policy and Global Supplier Code of Practice incorporating social, environmental and governance standards.

Continue to implement and report on our program of verifi cation and spot checks for compliance with our sustainability standards among high-risk suppliers.

Enhance the criteria guiding our purchasing decisions, to encourage and develop more relationships with inclusive companies who employ and support people with disability.

GOVERNANCE

Continue implementation of our CR framework by developing clear criteria and fl agship programs to support each of our priority areas.

Continue implementation of our human rights standards, including publicly reporting our progress.

Complete a review of investment portfolios across our business against the guidelines set out in the UN Principles for Responsible Investment.

Implement enhanced social and environmental policies, training and evaluation processes for sensitive sector clients in Asia Pacifi c.

Continue to develop a strong risk aware culture across the bank through employee training, proactive governance health checks and implementation of our Global Policy Governance Framework.

ACHIEVED OR ON TRACK TO ACHIEVE

PARTIALLY ACHIEVED DID NOT OR IN PROGRESS ACHIEVE

For full commentary on progress against targets for 2011, and to view our key goals in 2012 visit: anz.com/cr-targets

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Sue Jeff rey
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OUR APPROACH Creating education and IN ACTION employment opportunities

As a signifi cant employer, we are well placed to provide education and employment opportunities to disadvantaged groups and people who are under-represented in the workforce.

Building a diverse and inclusive workforce is a strategic asset for our business and one that is critical to achieving our super regional strategy. Through actively improving the diversity of our staff , we bring new dimensions to the way we innovate, build relationships with our customers and stakeholders, make decisions and manage our business.

KICK-STARTING INDIGENOUS CAREERS

A further 111 Indigenous young people have been off ered career building traineeships with us this year, bringing the total number of traineeships off ered since the launch of the program in 2003 to 588.

Our Indigenous traineeships provide practical banking and workplace experience while developing participants' capabilities and confi dence to broaden their future employment or academic aspirations and opportunities.

Of those who complete a traineeship, around half subsequently go on to permanent employment with us, including Sinoma Gilbert and Josh Riley.

EDUCATION AND EMPLOYMENT OPPORTUNITIES »

Sinoma’s career with ANZ started as a 16-year-old Indigenous trainee ~~at our branch in Mudgee. Sinom~~ a spent one da ~~y~~ a week worki ~~ng in the branch while simultan~~ eously comple ~~t~~ ing her studie ~~s at Mudgee High School. After~~ completing h ~~e~~ r higher school ~~certif cate, Sinoma was of ered~~ a permanent ~~r~~ ole with us as ~~personal banker.~~

Sinoma has since gone on to become the fi rst of our Indigenous trainees to be appointed to a managerial role, fi rstly as a branch manager in Sydney and then taking on an expanded managerial role as a service quality manager for Sydney.

Similia ~~rly, Josh began his career with AN~~ Z as an Indige ~~n~~ ous traine ~~e in our Tamworth branch. After~~ completing hi ~~s~~ trainee ~~ship, Josh moved to Sydney to co~~ mplete a Bach ~~e~~ lor of Busine ~~ss degree at university, while con~~ tinuing to wor ~~k~~ part time at ~~ANZ. Having completed his deg~~ ree, Josh is no ~~w~~ working in our ~~new Indigenous Resourcing Team~~ , which was es ~~t~~ ablished this year to help us attract at least 180 Indigenous Australians into permanent roles with us by December 2012.

BUILDING A GENDER BALANCED BUSINESS

Creating a workplace that attracts and fully capitalises on the talents of women has been an important focus for our business over a number years.

We we ~~re the f rst Australian bank to set~~ public gender t ~~a~~ rgets to incr ~~ease the number of women in m~~ anagement i ~~n~~ 2006 and w ~~e have reported our progress ea~~ ch year since t ~~h~~ en. Over t ~~hat time the representation of wo~~ men in manag ~~e~~ ment positi ~~ons has increased to 38.2%, aga~~ inst our goal fo ~~r~~ this year o ~~f 40%.~~

Having come this far, more innovative approaches are now required if we are to move beyond incremental improvements. A key goal is to ensure we are creating a workplace that values the unique skills, experiences and perspectives of all our people. Actions this year have included:

» Investing signif cantly in development programs to continue to build the leadership skills, capabilities and management competencies of our staff . In 2011, 45% of program participants were female.
» Eng ~~aging approximately 800 of our~~ managers, inc ~~l~~ uding our ~~Management Board and top 20~~ 0 executives gl ~~o~~ bally in a ~~learning program to better und~~ erstand the ec ~~o~~ nomic and ~~business case for creating a mo~~ re gender bala ~~n~~ ced business; the skills, perspectives and experiences that can be gender-specif c and how to best inspire and engage our female and male employees.
» Intr ~~oducing early and activist caree~~ r and successi ~~o~~ n plan ~~ning to get more women into ro~~ les which give ~~t~~ hem the ~~critical experiences required to~~ be eff ective se ~~n~~ ior lead ~~ers – this is especially important~~ if they are pla ~~n~~ ning care ~~er breaks to have and care for t~~ heir children.
» Revising our recruitment policy to ensure that at least ~~one woman is included on all s~~ hortlists for bo ~~t~~ h internal ~~and external recruitment.~~
» Encouraging and supporting our senior leaders to act as sponsors and advocates for talented women.
» Taking focussed action to achieve pay equity for like roles across the business. We track progress and where unjustifi ed discrepancies appear we take remedial action.
» Reviewing our performance-based compensation awarded in 2010 to ensure there is no systemic gender bias in our reward allocation. This year for example, the proportion of women achieving our two highest levels of relative performance outcome (RPO), which determines bonus levels, was slightly higher than men. 6% of females achieved RPO 1 compared to 5% of males and 21% of females achieved RPO2 compared to 20% of males.
» Enhancing our paid parental support arrangements, including introducing a $4,000 grant to help returning parents in Australia transition back to work after parental leave, and payment of superannuation on all forms of paid parental leave assistance. Over 478 employees received this grant in its f rst year and 94% of grant recipients remain ANZ employees today.

S ~~upport for gender equality in~~ our communi ~~t~~ ies As one of Australia’s largest companies and a signifi cant e ~~mployer of women, we also hav~~ e a responsib ~~i~~ lity to su ~~pport and promote gender equ~~ ality in our co ~~m~~ munities.

This year, our CEO Mike Smith has joined the Male Champions for Change program (MCC). Through the MCC, CEOs and Directors in Australia are using their infl uence to ensure the issues of gender equality and women’s representation in leadership are elevated onto the national business agenda. Mike Smith is establishing a Melbourne chapter of MCC and will advocate for more accessible, fl exible and aff ordable childcare for all parents, while continuing to champion ANZ’s fi nancial capability programs, which are proven to improve the economic empowerment and social inclusion of women from low-income and disadvantaged backgrounds.

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WOMEN IN 30 SEP 30 SEP
MANAGEMENT 2011 2010
Board 12.5% 12.5%
Senior executives 22.8% 23.9%
S enior manager 28.5% 27.6%
Manager 40.3% 40.6%
Total women in 38.2% 38.4%
management
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EDUCATION AND EMPLOYMENT OPPORTUNITIES »

EASIER BANKING FOR PEOPLE WITH DISABILITY

Our staf with disability are sharing their knowledge and unique insights to help us develop products and services which create a better banking experience for customers with disability.

Our award-winning mobile banking application for the iPhone, ANZ goMoney™, was designed to make it easy for people with vision impairment to use, thanks to the input and advice provided by a vision impaired staff member who was part of the project development team.

~~Hamish MacKenzi~~ e, was able to ~~p~~ rovide fi rst-ha ~~nd insights into the challenge~~ s encountered by the vision i ~~mpaired in managing everyda~~ y banking sec ~~u~~ rely and indep ~~endently. As a result, ANZ goM~~ oney™ was de ~~v~~ eloped to sup ~~port iPhone accessibility tools~~ designed for t ~~h~~ e vision impai ~~red, such as VoiceOver and zo~~ oms.

This approach to product design helps to ensure diverse perspectives are heard and considered and is now being extended to other product and service developments, including planned upgrades to internet banking and anz.com .

Our Abilities Network – made up of volunteer staf who work together to f nd better ways to support staff and customers with disability – is also helping to build understanding of how customers with disability experience banking.

commitments to making ANZ a place that welcomes and ~~supports cust~~ omers and sta ~~f~~ with disability.

We have welcomed a further 39 people with disability to our staf , as part of our ongoing commitment to provide employment opportunities for people with disability. The retention rate for employees recruited as part of this program from 2009 to 2011 is above 95%.

“ANZ has achieved a great deal with the recruitment and retention of staff with disability having met and exceeded the targets they set themselves. ANZ’s communications strategy ensures that its Disability Action Plan and broader disability agenda is communicated to staff cohesively and comprehensively, however there is some further work required to raise general line manager disability awareness through training and education initiatives.”

Suzanne Colbert, AM Chief Executive Offi cer, Australian Network on Disability

~~The Network orga~~ nised a ‘wheelc ~~h~~ air workshop’ f ~~or our ATM team to help dem~~ onstrate some ~~o~~ f the challeng ~~es people in wheelchairs face i~~ n accessing AT ~~M~~ s. In the work ~~shop, staf were given the ex~~ perience of usi ~~n~~ g an ATM whil ~~e being in a wheelchair, whic~~ h helped to hi ~~g~~ hlight the im ~~portance of having accessible~~ products and ~~s~~ ervices for all c ~~ustomers.~~

Each year, we aim to employ at least 35 people with disability as part of our Disability Action Plan (DAP), which sets out our

IN 2011

PERFORMAN ~~C~~ E

Increase the proportion of women in management at all levels of the organisation and achieve at least 40% in total by 2011.

Provide 100 additional traineeships to Indigenous Australians and convert at least 65% of those who complete the program to permanent ANZ employees.

Support the advancement of people with disability through a business mentoring program; by employing an additional 35 people with self-nominated disability across our global business; and achieve at least a 75% retention rate for our 2009–2011 intake.

Achieve a 100% completion rate for the 15 participants in our Australian refugee employment pathway program.

Achieve a 2% increase in the number of Māori graduates in our New Zealand internship program.

ACHIEVED OR ON TRACK TO ACHIEVE

PARTIALLY ACHIEVED OR IN PROGRESS

DID NOT ACHIEVE

For full commentary on progress against targets for 2011, and to view our key goals in 2012 visit: anz.com/cr-targets

OUR APPROACH Building fi nancial IN ACTION capability

Many people in the communities we serve face diffi culties in accessing basic banking services or are not confi dent in planning or managing their fi nances. Strengthening and improving the fi nancial capability and inclusion of the unbanked and under-banked in our communities is therefore an important focus for our business.

In Australia, our commitment and investment has helped us to create innovative and highly eff ective programs that are improving the fi nancial capability of people on low incomes and from disadvantaged groups including women, Indigenous communities, people with disabilities and migrants.

We are now adapting our successful programs such as MoneyMinded for other cultures and communities and applying innovations in mobile banking to promote fi nancial inclusion elsewhere across the Asia Pacifi c region.

NEW FUNDING TO EXTEND SAVER PLUS

Up to ~~20,000 Australians will receive~~ much neede ~~d~~ fi nanc ~~ial support and education, than~~ ks to new Aust ~~r~~ alian Government funding, which will extend the reach of Saver Plus, our f agship matched savings and fi nancial capability program.

In Ma ~~y, the Federal Government anno~~ unced fundin ~~g~~ of $26.5 ~~m over four years for Saver Plus d~~ elivery in mor ~~e~~ than 60 site ~~s nationally. ANZ has a continu~~ ed commitme ~~n~~ t of $13 ~~.5m over the same period.~~

Saver Plus was developed by the Brotherhood of St Laurence (BSL) and ANZ in 2002, creating Australia’s fi rst matched savings and fi nancial education program to help people on low incomes build a lasting savings habit. The program is delivered in partnership with a number of community organisations.

Partici ~~pants set a savings goal and rece~~ ive fi nancial ed ~~u~~ cation over a ~~10 month period. Once they re~~ ach their savin ~~g~~ s goal, ANZ ~~matches their savings dollar for d~~ ollar up to $5 ~~0~~ 0.

This year, two new pieces of research conducted by RMIT University ( Evaluation of Saver Plus Past Participants ) and BSL ( Many Faces of Saving: The Social Dimensions of Saver Plus ) have f ~~urther demonstrated the importa~~ nt role Saver Pl ~~u~~ s plays in buil ~~ding the f nancial capability of pe~~ ople on low in ~~c~~ omes.

In particular, the RMIT research has shown that:

» 87 ~~% of past Saver Plus participants~~ continue to sa ~~v~~ e at t ~~he same rate or more, three yea~~ rs after comple ~~t~~ ing the ~~program~~
» 84% of participants encouraged other family members to save
» ~~Saver Plus is helping people on~~ lower income ~~s to overcome the barriers to sav~~ ing.

While the lasting impact Saver Plus has on participants’ savings habits has long been evident in research results, now evidence is starting to emerge of the signifcant long-term impacts that Saver Plus is having not only on past participants, but on the rest of their family, creating a ‘halo’ e ~~f~~ f ~~ect and extending the reach an~~ d impact of the program.

“The ANZ’s fi nancial inclusion programs are forging new and highly eff ective approaches to assisting struggling Australians to participate in the mainstream economic and social life of our nation.”

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Tony Nicholson, Executive Director, Brotherhood of St Laurence

“Saver Plus has helped me to feel more in control of my f nances and I recommend the program to family and friends all the time. In fact, my ~~daughter Geo~~ rgia has e ~~n~~ rolled in Sa ~~ver Plus to help her build~~ budgeting ~~and saving sk~~ ills in prepa ~~r~~ ation for m ~~oving out of home next y~~ ear. Georgi ~~a~~ says she feels like a weight has been lifted now that she has improved her money-management skills and has proven to herself that she can save ~~money,~~ ” ~~Rose~~ -Ann, Save ~~r~~ Plus partici ~~pant.~~

HOW SAVER PLUS WORKS

PARTICIPANT

Over 12,000 participants ~~since 2003.~~
~~86% are women.~~

AGREEMENT

Meets with a Saver Plus worker from partner community organisation. Makes agre ~~e~~ ment to save an a ~~m~~ ount of money o ~~v~~ er a 10-month period.

SAVE

Opens an ANZ savings account and makes regular deposits.

EDUCATION

Attends fi nancial sessions developed by ANZ and receives support and ~~encouragem~~ ent ~~from a Saver~~ Plus ~~worker when~~ required.

MATCHING

OUTCOMES

Reaches savings • 87% continue goal. ANZ matches to save the same savings dollar-foramount or ~~m~~ ore dollar up to $500. up to three ~~y~~ ears after program Mo ~~n~~ ey used for completion. thei ~~r~~ children’s or • 84% were able to ow ~~n~~ education encourage other other ther expenses.

84% were able to encourage other other ther family mem ~~b~~ ers to save.

FINANCIAL CAPABILITY »

EMPOWERING PEOPLE TO MANAGE MONEY Following the success of MoneyMinded and MoneyBusiness in Australia, we are now working with governments and community organisations to adapt the program for f nancial education use across the As ~~ia Pacif c region.~~

We developed MoneyMinded in consultation with the community sector, educators and government with the goal of improving people’s conf dence in managing money eff ectively. The program includes high-quality resources and training for fi nancial counsellors and community workers to assist their clients in building basic budgeting, saving and money management skills.

In Aus ~~tralia, MoneyMinded is now the~~ most widely ~~u~~ sed fi nanci ~~al literacy program, having reac~~ hed more tha ~~n~~ 160,00 ~~0 people.~~

MoneyBusiness was adapted from MoneyMinded for delivery in Indigenous communities in partnership with the Australian Government. Over 330 facilitators have been trained to deliver the program in more than 215 locations since 2009.

MoneyMinded and MoneyBusiness were the fi rst, and are currently the only, f nancial literacy programs offi cially endorsed as ‘Approved Money Management Courses’ for use by government-funded organisations across Australia.

MoneyMinded Pacif c

Each country pilot group has 150 people, representing a cr ~~oss section of people from the c~~ ommunity, inc ~~l~~ uding ANZ cu ~~stomers. The pilot program has~~ been very wel ~~l~~ received. M ~~ore than 90% of participants su~~ rveyed before ~~a~~ nd after the pr ~~ogram reported an increase in th~~ eir level of un ~~d~~ erstanding an ~~d their f nancial skills after com~~ pleting the tra ~~i~~ ning.

The program will now be expanded further following the appointment of 33 MoneyMinded facilitators and four lead facilitators, who will train community partners and ANZ staff to deliver the program.

M oneyMinded Hong Kong

W ~~e are partnering with Save the C~~ hildren in Ho ~~n~~ g Kong to ~~pilot a MoneyMinded program~~ aimed at disa ~~d~~ vantaged ch ~~ildren and teenagers.~~

The adapted program aims to help 'at risk' children learn vital money management skills. Ten MoneyMinded facilitators have received training and will conduct the pilot.

M oneyMinded New Zealand

W ~~e continue to work with the Ng~~ āi Tahu comm ~~u~~ nity in N ~~ew Zealand to adapt MoneyMind~~ ed for iwi (trib ~~e~~ s) culture an ~~d experiences.~~

This follows our support in 2010 of the ANZ Ngāi Tahu Financial Knowledge Survey, which established an important benchmark to support eff orts to grow fi nancial literacy of all iwi in New Zealand.

Following a successful staf pilot last year involving 2,000 staff across 11 Pacif c countries, we have begun piloting MoneyMinded to communities in four Pacifi c countries – American Samoa, Fiji, PNG and the Cook Islands.

KEY GOALS WE SET OUT TO ACHIEVE IN 2011

PE ~~R~~ FORMANCE

Reach an additional 30,000 people from low-income and disadvantaged backgrounds with our MoneyMinded fi nancial capability program, adapted where appropriate for local cultures and contexts. Work with our community partners and the Australian Government to enrol 7,600 people in our Saver Plus program over two years. Work with the Brotherhood of St Laurence to write 1,000 new Progress Loans over two years using funding from the Australian Government to pilot new approaches to support long-term fi nancial and social sustainability. Implement targeted initiatives that respond to our Financial Knowledge Survey of the Ngāi Tahu Māori community in New Zealand. Conduct and publicly release our latest benchmark research into adult fi nancial literacy in Australia.

ACHIEVED OR ON PARTIALLY ACHIEVED DID NOT TRACK TO ACHIEVE OR IN PROGRESS ACHIEVE

For full commentary on progress against targets for 2011, and to view our key goals in 2012 visit: anz.com/cr-targets

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Patrick Zhu,
Project Manager,
China Rural Bank
Our development program for
pomelo farmers in rural western
China is helping to improve farming
practices, product marketing
and promotion.
----- End of picture text -----

OUR APPROACH Helping bridge urban and rural IN ACTION economic and social divides

There is much we can do to improve banking access and fi nancial inclusion, such as providing fair, safe and aff ordable products and services, particularly among the unbanked and under-banked.

We are working with governments, multilateral and community organisations in a number of markets to improve fi nancial capability and inclusion among under-served and rural communities – at the same time developing new markets and customers.

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“As the only foreign bank in our county, ANZ Rural Bank has injected energy to the economic development of this area since it was established two years ago. In addition, they took initiative to improve the life of farmers through the pomelo project. I do appreciate their eff orts and contribution.”

Mr. Li Zhixiong,

Secretary

Liangping County Party Committee China

==> picture [41 x 41] intentionally omitted <==

BRIDGING URBAN AND RURAL ECONOMIC AND SOCIAL DIVIDES »

SUPP ~~ORTING RURAL DEVELOPMEN~~ T IN WESTER ~~N~~ CHINA Our Chongqing Liangping ANZ Rural Bank is providing access to much needed new lending for investment in households, farms ~~and businesses across rural wes~~ tern China.

Traditionally banks in the Asia Pacif c region have operated with low loan-to-deposit ratios (LDRs) of around 20% – meaning that for every US$ equivalent attracted in deposits, only 20 cents is subsequently committed for lending to individuals and businesses.

This is ~~quite low by international stan~~ dards and has l ~~e~~ d to stro ~~ng competition for available len~~ ding.

Since opening our China rural bank in late 2009, a key priority has been to attract both deposit and loan customers, resulting in our LDR growing strongly to more than 90% – well above the industry average for the region.

We ar ~~e also supporting rural growth in~~ western Chin ~~a~~ throu ~~gh our pomelo industry develop~~ ment progra ~~m~~ for farmer ~~s. More than 4,000 farmers hav~~ e benefi ted fro ~~m~~ the tra ~~ining and skills development p~~ rogram since it was launched two years ago.

The pr ~~ogram consists of a series of wo~~ rkshops to hel ~~p~~ pomel ~~o farmers improve their farming~~ practices, pr ~~o~~ duct marke ~~ting and promotion.~~

Feedback from farmers has been very positive. Recently, Zhang Wenhui, a pomelo farmer and the General Manager of Liangping Hexing Longtan Pomelo Cooperative said that the pomelo development program had benefi ted the industry in many ways.

“The le ~~ctures have provided us with adv~~ anced technic ~~a~~ l knowl ~~edge and sales skills, helping to~~ increase the produ ~~ction of pomelos and get a high~~ er unit price for our po ~~melos. It has also broadened ou~~ r horizons on pomel ~~o products.~~

KE ~~Y GOALS~~ WE ~~SET OUT~~ TO ~~ACHIEVE~~ IN ~~2011~~

Th ~~rough providing the technical k~~ nowledge abo ~~u~~ t how to m ~~ake pomelo tea, pomelo rice etc~~ , we can now ~~m~~ ake some m ~~oney from pomelos with unfavo~~ rable appeara ~~n~~ ce, which w ~~ere previously worth nothing,” Z~~ hang Wenhui ~~s~~ aid.

The program has also been acknowledged by the Liangping Government Agricultural Committee as contributing to the strong growth of the Liangping pomelo industry over the past year.

W ~~e are also supporting broader in~~ dustries in th ~~e~~ region, su ~~ch as aquaculture, livestock, tea~~ , medicine cult ~~u~~ re and silk w ~~orm production, leveraging our~~ extensive rura ~~l~~ fi nance ex ~~perience to support and improv~~ e economic su ~~s~~ tainability a ~~mong rural farmers.~~

SUPPORTING NATION BUILDING IN TIMOR-LESTE

Thousands of people living in isolated rural areas of Timor-Leste will be able to access electricity for the fi rst time when a new power plant is built with our support.

Th ~~is year we have provided a US$1~~ 70m letter of c ~~r~~ edit fa ~~cility to the Timor-Leste Govern~~ ment, which w ~~i~~ ll be used to ~~support the construction of a m~~ uch needed ~~d~~ ual-fi red (li ~~quef ed natural gas and heavy o~~ il) power plan ~~t~~ . This in ~~vestment is part of the governm~~ ent’s broader ~~f~~ i ve-year na ~~tion building plan, to spend aro~~ und US$2.6b ~~o~~ n public inf ~~rastructure.~~

Providing an accessible and reliable power supply to the people of Timor-Leste is a key priority for the government towards improving living conditions and encouraging local and foreign investment in the country.

W ~~e are also supporting two Timor~~ -Leste micro fi ~~n~~ ance in ~~stitutions (MFIs), Moris Rasik an~~ d Tuba Rae Me ~~t~~ in, by pr ~~oviding funding and non-fundi~~ ng assistance.

Both MFIs deliver micro-savings and group loans to over 19 ~~,000 people living in poverty –~~ mainly women in rural ar ~~eas. The extension of credit thro~~ ugh making s ~~m~~ all loans, us ~~ually US$200 or less, has proven t~~ o be eff ective i ~~n~~ helping pe ~~ople to establish or expand a sm~~ all, self-sustai ~~n~~ ing b ~~usiness. Our support will help bo~~ th MFIs build ~~c~~ apacity an ~~d remain sustainable.~~

PERFORMANCE

Implement innovative products and services to support social, economic and fi nancial inclusion.

Increase availability of our mobile phone savings and money transfer service in Cambodia to 185 districts and assist customers to save a total of $450,000 by reducing the cost of remittances from urban to regional areas.

Achieve 15% growth in deposits and micro-loans in our Rural banking business in Fiji.

Achieve an above industry average loan-to-deposit ratio for ANZ Rural Bank in Liangping China and extend our agricultural education program to a further 2,000 farmers in the region.

ACHIEVED OR ON TRACK TO ACHIEVE

PARTIALLY ACHIEVED DID NOT OR IN PROGRESS ACHIEVE

For full commentary on progress against targets for 2011, and to view our key goals in 2012 visit: anz.com/cr-targets

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Warwick Fowler,
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OUR APPROACH Supporting urban IN ACTION sustainability

Improving urban sustainability is an important priority for customers and communities wherever we operate. Increasingly, we live in urban centres faced with growing congestion, air quality and sanitation challenges.

ANZ seeks to better understand social and environmental pressures and to identify what we can do in our workplaces and branches to help improve sustainability. Through our business activity we also actively support customers to deliver sound environmental and social outcomes.

“The Clean Energy Council is Australia’s peak Renewable industry body, comprising more than 440 member companies operating in the fi elds of renewable energy and energy effi ciency.

In May 2011, we were delighted to work with ANZ to stage the inaugural Clean Energy Week, the biggest clean energy conference ever held in Australia.

Clean Energy Week brought together industry, governments, stakeholders, and members of the public to celebrate clean energy – and to inform the wider community about the range of initiatives being delivered and developed by our innovative, committed members.

ANZ has a long-standing commitment to the renewable energy sector and a strong track record of fi nancing

projects and supporting innovation in urban sustainability. As the industry matures, we hope to continue working closely with ANZ to facilitate growth and to power the transition to a lower carbon economy in Australia.”

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Matthew Warren, Chief Executive, Clean Energy Council

URBAN SUSTAINABILITY »

REDUCING ENVIRONMENTAL IMPACT

WITHI N OUR BUSINESS

Our co ~~mmitment to reducing ANZ’s e~~ nvironmental f ~~o~~ otprint has le ~~d to an improved sustainability p~~ erformance, p ~~a~~ rticularly in our ~~commercial of ces, which acco~~ unt for the maj ~~o~~ rity of our ca ~~rbon emissions.~~

Investment and a strong focus on effi ciency improvements has led to an 11% reduction in energy use in our commercial buildings since 2009. We have also cut the use of potable water in our Australian commercial offi ces by around one quarter over the same period.

Across ~~our bank branch network we a~~ re investing as part of a rolli ~~ng refurbishment program in a r~~ ange of enviro ~~n~~ mental initiati ~~ves such as more ef cient lighting~~ , controls and a ~~p~~ pliances with hi ~~gh levels of environmental perfor~~ mance and inc ~~r~~ eased sub-metering.

When selecting new workplaces we are building on the strong ~~environmental credentials of o~~ ur global head ~~q~~ uarters in Mel ~~bourne, the ANZ Centre, which~~ was designed ~~t~~ o produ ~~ce 70% less carbon emissions th~~ an a standard ~~o~~ ffi ce buildi ~~ng and has achieved a ‘6 Star Gr~~ een Star’ Desig ~~n~~ rating from t ~~he Green Building Council.~~

In Singapore we have recently moved into a new offi ce which has been awarded Singapore’s highest environmental rating, ‘Green Mark Platinum’ and in Brisbane, we will move into a new ‘6 Star Green Star’ design rated offi ce building in early 2012.

KE Y GOALS

Despite strong gains in our environmental performance, w ~~e have faced challenges in reduc~~ ing our absolu ~~t~~ e carbon e ~~missions in Australia. ANZ’s busin~~ ess growth, in ~~c~~ luding a n ~~umber of acquisitions, has led to a~~ n increase in t ~~he~~ absolute ca ~~rbon emissions associated with t~~ he energy used at our data ce ~~ntres and our air travel. Business g~~ rowth and ANZ ~~’s~~ rebranding in ~~2010 also af ected our ability to~~ reduce custom ~~e~~ r paper us ~~age despite a 10% reduction in o~~ ffi ce paper.

In New Zealand, carbon emissions have reduced by 9% since 2009, well in excess of our 2.5% target. This has been achieved by improving our energy effi ciency, reducing road travel, minimising our use of paper, less reliance on natural gas and an increasing use of renewable energy.

Ac ~~ross our global business, we rem~~ ain committ ~~e~~ d to m ~~aintaining carbon neutrality thr~~ ough fi rst red ~~u~~ cing our fo ~~otprint and then purchasing a r~~ ange of intern ~~a~~ tional off sets to compensate for our unavoidable carbon emissions.

PREMISES ENERGY REDUCTION OVER FIVE-YEAR PERIOD

	~~8~~

mWH per FTE	7



			~~2007~~	~~2008~~	~~20~~09	2010	2011
		~~An~~ ~~led~~	~~investment in, and focus on~~ef ciency impro~~v~~ements has ~~to a signif cant decline in pr~~emises energy p~~e~~r FTE.

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PE R FORMANCE
Support the design, building and construction sectors in advancing urban sustainability
by conducting education sessions at our 6 Star Green Star Global Headquarters.
Maintain our carbon neutral commitment across our operations globally.
WORK TOWARDS ACHIEVING OUR TWO-YEAR ENVIRONMENTAL
GOALS IN AUSTRALIA AND NEW ZEALAND: AUS NZ
» Absolute reduction in GHG
» Premises energy per FTE
» Paper consumed per FTE
» Water use per FTE
» Waste recycled
Implement our revised Environmental Management System in a pilot market in Asia.
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ACHIEVED OR ON	PARTIALLY ACHIEVED	DID NOT
TRACK TO ACHIEVE	OR IN PROGRESS	ACHIEVE
For full commentary on progress against targets for 2011, and to view our key goals in 2012 visit:anz.com/cr-targets

Five -Ye a r sum ma r y

FINANCIAL »

FIVE-YEAR SUMMARY 2007–2011

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2011 2010 2 009 2008 200 7
$m $m $m $m $ m
FINANCIAL PER FORMANCE
Net interest income [1] 11,481 10,862 9,890 7,855 7,302
Other operating income [1] 5,331 4,920 4,477 4,440 3,765
Operating expen ses [1] (7,718) (6,971) (6 , 068) (5,406) (4,95 3 )
Prof t before provisions and income tax [1] 9,094 8,811 8,299 6,889 6,069
Provision for credit impairment [1] (1,211) (1,820) (3,056) (2,090) (522)
Income tax expe nse and non-c o ntrolling inter est [1] (2,231) ( 1,966) ( 1 ,471) (1,373) (1,62 3 )
Underlying prof t [1] 5,652 5,025 3 ,772 3,426 3,92 4
Adjustments between statutory and underlying profi t [1] (297) (524) (829) (107) 256
Prof t atrributab le to sharehol d ers of the Co mpany 5,355 4,501 2 ,943 3,319 4,18 0
FINANCIAL POS ITION
Assets 594,488 531,703 476,987 470,293 392,773
Net Assets 37,954 34,155 32,429 26,552 22,048
Tier 1 capital rati o [2] 10.9% 10.1% 1 0 .6% 7.7% 6.7 %
Return on average ordinary equity [3] 15.3% 13.9% 10.3% 14.5% 20.9%
Return on average assets 1.0% 0.9% 0.6% 0.8% 1.2%
Cost to income r atio [1] 45.9% 44.2% 4 2 .2% 44.0% 44.9 %
SHAREHOLDER VALUE – ORD I NARY SHARES
Total return to shareholders –12.6% 1.9% 40.3% –33.5% 15.6%
(share price movement plus dividends)
Market capitalisa tion 51,319 60,614 6 1 ,085 38,263 55,38 2
Dividend 140 cents 126 cents 102 c ents 136 cents 136 cent s
Share price – 30 September closing price $19.52 $23.68 $24.39 $18.75 $29.70
OTHER INFORMATION
Points of represe ntation 1,381 1,394 1 ,352 1,340 1,32 7
Number of employees (full-time equivalent) 48,938 47,099 37,687 36,925 34,353
Number of shareholders [4] 442,943 411,692 396,181 376,813 327,703
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~~1~~ Adjusted for non-core items that are not part of the normal ongoing operations of the Group including one-off ~~gains and losses, non~~ -continuing busine ~~s~~ ses, timing diff erenc ~~es on economic hedges and acquisition r~~ elated costs.

2 Basel II methodology has been applied from 1 January 2008. Prior to that values were calculated using Basel I methodology.

3 Average ordinary shareholders’ equity excludes non-controlling interests and preference share dividend.

4 Excludes employees whose only ANZ shares are held in trust under ANZ employee share schemes.

NON-FINANCIAL »

FIVE-YEAR PERFORMANCE SUMMARY 2007–2011

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2011 2010 2009 2008 2007
OUR CUSTOMERS
Retail customer satisfaction
» Australia [1] 79.8% 79.9% 76.5% 77.1% 77.2%
» Ne w Zealand [2] – ANZ 89% 85% 86% 88% 87%
» New Zealand [2] – NBNZ 92% 90% 89% 90% 93%
Institutional Relationship Strength Index ranking [3]
» Aus tralia 1 1(equal) 2 1 2
» Ne w Zealand 1 1 1 1 1
OUR PEOPLE
Total employees (FTE) 48 ,938 47,099 37,687 36,925 34,353
Empl oyee engagement survey result s 70% 64% 66% [4] 62% 64%
Total women in management 38.2% 38.4% 36.8% 37% 37%
Investment in learning and development ($m) 50.2 47.5 43.0 58.5 61.1
Lost Time Injury Frequency Rate
» Australia 2.1 2.2 1.9 2.4 3.0
» New Zealand 1.8 2.2 1.5 2.0 1.6
OUR COMMUNITIES [5]
Total value of community investmen t ($m) 16.9 16.2 22.2 18.9 17.8
Volunteer hours 91,410 90,651 58,097 79,620 73,098
OUR ENVIRONMENT [6]
GHG emissions [7] (tonnes CO 2 -e)
» Australia 166,756 170,299 [8] 161,985 154,335 154,650
» Ne w Zealand [9] 11 ,164 12,429 13,700 16,072 14,559
» Asi a Pacif c, Europe and America 30 ,189 22,725 – – –
Paper consumption (tonnes per FTE) [ 10]
» Australia 0.167 0.211 0.178 0.189 0.200
» Ne w Zealand 0 .125 0.148 0.146 0.163 0.174
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1 Source: Roy Morgan Research – Main Financial Institution

2 Source: Nielsen Consumer Finance Monitor

3 Source: Peter Lee Associates Large Corporate and Institutional Relationship Banking report

4 Interim survey and change in provider; 2009 results onwards are not comparable with previous years.

5 Com ~~munity investment is measured accordin~~ g to the London B ~~e~~ nchmarking Grou ~~p Methodology and does not include for~~ egone revenue.

6 2011 ~~data is pending external verif cation. A~~ full verifi ed environ ~~m~~ ental report will ~~be available on anz.com~~

7 Scope 1 + 2 only. A full GHG prof le (scope 1, 2 and 3) will be available on anz.com

8 OnePath data included from 1 October 2009. ANZ took operational control in December 2009.

9 Emission factors were updated by the NZ Government in 2011 – leading to a revision of 2009/10 data.

10 Includes both offi ce and print (customer) paper

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Your
Directors
» JOHN MORSCHEL » GREG CLARK » PETER HAY » IAN MACFARLANE, AC
Chairman Chair of Technology Chair of Governance Chair of Risk Committee
DipQS, FAICD Committee Committee BEc (Hons), MEc, Hon DSc (Syd),
BSc (Hons), PhD, FAPS, FTSE LLB (Melb), FAICD Hon DSc (UNSW), Hon DCom
(Melb), Hon DLitt (Macq), Hon
LLD (Monash)
Director since October 2004. Director since February 2004. Director since November 2008. Director since February 2007.
Chairman since March 2010. Member of the Risk and Member of the Audit and Member of the Governance
Ex offi cio member all Human Resources Human Resources Committees. and Audit Committees.
Committees. Committees.
» DAVID MEIKLEJOHN, AM » ALISON WATKINS » LEE HSIEN YANG » MICHAEL SMITH, OBE
Chair of Audit Committee Chair of Human MSc, BA Chief Executive Offi cer
Resources Committee Executive Director
BCom, DipEd, FCPA,
FAICD, FAIM BCom, FCA, F Fin, FAICD BSc (Hons)
Director since October 2004. Director since November Director since February 2009. Chief Executive Offi cer
Member of the Technology 2008. Member of the Audit Member of the Risk, Human since 1 October 2007.
and Risk Committees. and Governance Committees. Resources and Technology
Committees.
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The above information sets out Board Committee memberships as at 30 September 2011. Full biography details can be found on our website: anz.com/about-us/our-company/executive/board-of-directors.

NON- ~~EXECUTIVE~~ DIREC ~~TOR~~ ' ~~S REMUNERATION~~

The Board is responsible to shareholders for the governance of AN ~~Z, and oversees AN~~ Z’s ope ~~r~~ ations a ~~nd f nancial perfo~~ rmance. It a ~~pproves the strate~~ gic dire ~~c~~ tion, fi ~~nancial objectives~~ and ap ~~propriate risk appe~~ tite for ~~t~~ he orga ~~nisation.~~

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S HORT-TERM
EMPLOYEE POST TERMINATION
NON-EXECUTIVE DIRECTOR'S REMUNERATION FINANCIAL BENEFITS EMPLOYMENT BENEFITS [1] TOTAL
FOR 2 011 AND 2010 YEAR $ $ $ $
CURRENT NON-EXECUTIVE DIRECTORS
J Morschel (Appointed Director October 2004 2011 775,000 15,343 – 790,343
appointed Chairman March 2010)
Indep endent Non-Executive Director, Chairman 2010 566,250 14,646 – 580,896
G Clark (Appointed February 2004) 2011 300,000 15,343 – 315,343
Indep endent Non-Executive Director 2010 261,000 14,646 – 275,646
P Hay (Appointed November 2008) 2011 302,500 15,343 – 317,843
Indep endent Non-Executive Director 2010 276,000 14,646 – 290,646
H Lee (Appointed February 2009) 2011 280,000 15,343 – 295,343
Indep endent Non-Executive Director 2010 235,000 14,646 – 249,646
I Mac farlane (Appointed February 2007) 2011 314,500 15,343 – 329,843
Independent Non-Executive Director 2010 272,000 14,646 – 286,646
D Mei klejohn (Appointed October 2004) 2011 320,186 15,343 – 335,529
Independent Non-Executive Director 2010 306,000 14,646 – 320,646
A Watkins (Appointed November 2008) 2011 312,500 15,343 – 327,843
Independent Non-Executive Director 2010 303,000 14,646 – 317,646
FORMER NON-EXECUTIVE DIRECTORS
C Goode (Appointed director July 1991
appointed Chairman August 1995,
retired 28 February 2010)
Independent Non-Executive Director, Chairman 2010 334,483 7,231 1,398,845 1,740,559
J Ellis (Appointed October 1995
retire d 18 December 2009)
Indep endent Non-Executive Director 2010 51,546 3,615 478,333 533,494
2011 2,604,686 107,401 – 2,712,087
Total of all Non-Executive Directors
2010 2,605,279 113,368 1,877,178 4,595,825
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1. The termination benefi ts paid to C Goode and J Ellis (in 2010) on their respective retirements from the Board relate to the benefi ts accrued under the ANZ Director’s Retirement Scheme which existed prior to September 2005 and interest on that benefi t. For C Goode, shares acquired under the ANZ Director’s Retirement Scheme were transferred on retirement. The price on retirement was $22.9507 (based on one day VWAP as at 26 February 2010). For J Ellis, shares acquired under the ANZ Director’s Retirement Scheme were transferred on retirement. The price on retirement was $21.3694 (based on one day VWAP as at 18 December 2009).

Remu ner a tio n Overv iew

The following provides a summary of the remuneration for the Chief Executive Offi cer (CEO) and Disclosed Executives – Key Management Personnel[*] . The summary delineates between remuneration paid or realised in the current year and that awarded in the current year that is realised in subsequent years. A more detailed Remuneration Report is contained in the Annual Report pages 15 to 45. The Report can be accessed via the ANZ website as well as in hard copy.

ANZ's remuneration framework is designed to focus our people on creating and building value for our shareholders and other stakeholders. We aim to ensure there is a strong alignment between the short and long term interests of both our shareholders and the executive team.

~~There are three co~~ mponents to r ~~e~~ muneration – ~~f xed pay, Short Term Incent~~ ive (STI) and L ~~o~~ ng Term Incen ~~tive (LTI). In~~ the case of the CEO his remuneration opportunity is split evenly between the three components. In the case of Disclosed Executives, a signifi cant portion of their remuneration is ‘at risk’ but will diff er from executive to executive.

REMUNERATION STRUCTURE – CHIEF EXECUTIVE OFFICER

The following tables, relati n g to the CEO, show:

» The actual amounts or grants made in respect of the years 2010 and 2011;

» Any amounts which had to be deferred in respect of the years 2010 and 2011; and

~~» The actual a~~ mounts recei ~~v~~ ed in respect of the years ~~2010 and 2~~ 011.

The term Key Management Personnel is defi ned under the Corporations Act .

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OTHER
GRANTS/
CHIEF EXECUTIVE OFFICER FIXED PAY STI LTI BENEFITS TOTAL
(M SMITH) [1 2] ($) ($) ($) ($) ($)
2011
Amounts paid or granted in respect of 2011 year 3,150,000 3,300,000 3,150,000 [3] 105,515 [5] 9,705,515
less amounts which must be deferred in respect of 2011 year – 1,550,000 3,150,000 – 4,700,000
Amount received i n respect of 2011 year 3,150,000 1,750,000 – 105,515 [5] 5,005,5 1 5
2010
Amounts paid or g ranted in respec t of 2010 year 3,000,000 4,750,000 3,000,000 [4] 5,500 [5] 10,755,5 0 0
less amounts which must be deferred in respect of 2010 year – 2,250,000 3,000,000 – 5,250,000
Amount received in respect of 2010 year 3,000,000 2,500,000 – 5,500 [5] 5,505,500
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1. On commencement with ANZ, M Smith was granted three tranches of equity valued at $3m each. The second tranche became available on 2 October 2009 – price at ~~vesting $23.5600 (base~~ d on one day VWAP ~~a~~ s at 2 October 2009) ~~. Therefore the value of this tranche at date~~ of vesting was $2,5 ~~9~~ 1,859. The third tranche became available on 2 October 2010 – price at vesting $23.5385 (based on one day VWAP as at 1 October 2010, as 2 October 2010 was a non-trading day). Therefore the value of this tranche at date of vesting was $2,589,494. These amounts are not refl ected in the table above as they relate to a specifi c equity arrangement associated with his commencement and are not a part of his standard remuneration arrangements. 2. Equity which has been previously disclosed in remuneration reports in prior years that fi rst vested in ~~2011 included STI defer~~ red shares granted ~~13~~ November 2009, va ~~lued at $1,074,274 at vesting on 13 Novem~~ ber 2010 (based on ~~o~~ ne day VWAP on 12 November 2010, as 13 November 2010 was a non-trading day) and LTI performance rights granted 19 December 2007, valued at $6,117,268 at vesting on 19 December 2010 (based on one day VWAP on 17 December 2010, as 19 December 2010 was a non-trading day). 3. The 2011 LTI relates to the LTI grant that is proposed for 2011, subject to approval by ~~shareholders at the 201~~ 1 Annual General M ~~e~~ eting. 4. The 2010 L ~~TI relates to the LTI grant approved by share~~ holders at the 2010 ~~A~~ nnual General Meeting. 5. Other grants/ benefi ts includes car parking, life insurance and taxation services. The insurance coverage for M Smith was updated in 2011 to a full Life and Personal Accident Insurance Policy which provides more comprehensive cover.

DISCLOSED EXECUTIVES – KEY MANAGEMENT PERSONNEL

The following tables cover those Disclosed Executives who were employed at the executive level for 2010 and 2011. The tables detail:

» The actual amounts paid or granted in respect of the years 2010 and 2011;

» Any ~~amounts which had to be defe~~ rred in respect ~~o~~ f the years 20 ~~10 and 2011; and~~

» The ~~actual amounts received in resp~~ ect of the yea ~~r~~ s 2010 and 201 ~~1.~~

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OTHER
GRANTS/
FIXED PAY STI LTI BENEFITS TOTAL
($) ($) ($) ($) ($)
CHIEF EXECUTIVE OFFICER, AUSTRALIA – (P CHRONICAN) [1]
2011
Amou nts paid or granted in respect of 2011 year 1,300,000 1,600,000 650,000 5,744 3,555,744
less amounts which must be deferred in respect of 2011 year – 700,000 650,000 – 1,350,000
Amou nt received in respect of 2011 year 1,300,000 900,000 – 5,744 2,205,744
2010
Amou nts paid or granted in respect of 2010 year 1,079,000 1,400,000 650,000 296,974 3,425,974
less amounts which must be deferred in respect of 2010 year – 600,000 650,000 – 1,250,000
Amount received in respect of 2010 year 1,079,000 800,000 – 296,974 2,175,974
CHIEF EXECUTIVE OFFICER, INSTITUTIONAL – (S ELLIO TT) [2]
2011
Amou nts paid or granted in respect of 2011 year 1,050,000 1,008,000 650,000 10,191 2,718,191
less amounts which must be deferred in respect of 2011 year – 404,000 650,000 – 1,054,000
Amou nt received in respect of 2011 year 1,050,000 604,000 – 10,191 1,664,191
2010
Amounts paid or granted in respect of 2010 year 1,000,000 2,500,000 550,000 12,334 4,062,334
less a mounts which must be deferred in respect of 2010 year – 1,150,000 550,000 – 1,700,000
Amount received in respect of 2010 year 1,000,000 1,350,000 – 12,334 2,362,334
CHIEF EXECUTIVE OFFICER, NEW ZEALAND – (D HISCO ) [3]
2011
Amou nts paid or granted in respect of 2011 year 960,000 1,612,800 480,000 357,283 3,410,083
less amounts which must be deferred in respect of 2011 year – 710,400 480,000 – 1,190,400
Amount received in respect of 2011 year 960,000 902,400 – 357,283 2,219,683
2010
Not a disclosed executive in 2010
CHIEF EXECUTIVE OFFICER, ASIA PACIFIC, EUROPE & A MERICA – (A THURSBY) [4]
2011
Amou nts paid or granted in respect of 2011 year 1,050,000 1,600,000 700,000 7,375 3,357,375
less amounts which must be deferred in respect of 2011 year – 700,000 700,000 – 1,400,000
Amount received in respect of 2011 year 1,050,000 900,000 – 7,375 1,957,375
2010
Amounts paid or granted in respect of 2010 year 1,000,000 2,500,000 550,000 23,570 4,073,570
less amounts which must be deferred in respect of 2010 year – 1,150,000 550,000 – 1,700,000
Amount received in respect of 2010 year 1,000,000 1,350,000 – 23,570 2,373,570
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EXECUTIVES – KEY MANAGEMENT PERSONNEL CONTINUED »

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OTHER
GRANTS/
FIXED PAY STI LTI BENEFITS TOTAL
($) ($) ($) ($) ($)
DEPUTY CHIEF EXECUTIVE OFFICER – (G HODGES) [5]
2011
Amounts paid or granted in respect of 2011 year 1,000,000 1,200,000 500,000 24,350 2,724,350
less amounts whic h must be deferr e d in respect of 2 011 ye ar – 500,000 500,000 – 1,000,0 0 0
Amount received in respect of 2011 year 1,000,000 700,000 – 24,350 1,724,350
2010
Amounts paid or granted in respect of 2010 year 1,000,000 1,140,000 500,000 17,309 2,657,309
less amounts which must be deferred in respect of 2010 year – 470,000 500,000 – 970,000
Amount received i n respect of 201 0 year 1,000,000 670,000 – 17,309 1,687,3 0 9
CHIEF FINANCIAL OFFICER – (P MARRIOTT) [6]
2011
Amounts paid or granted in respect of 2011 year 1,000,000 1,440,000 500,000 5,774 2,945,774
less amounts whic h must be deferr e d in respect of 2 011 ye ar – 620,000 500,000 – 1,120,0 0 0
Amount received in respect of 2011 year 1,000,000 820,000 – 5,774 1,825,774
2010
Amounts paid or g ranted in respec t of 2010 year 1,000,000 1,140,000 500,000 2,595 2,642,5 9 5
less amounts which must be deferred in respect of 2010 year – 470,000 500,000 – 970,000
Amount received i n respect of 201 0 year 1,000,000 670,000 – 2,595 1,672,5 9 5
CHIEF RISK OFFICER – (C PAGE) [7]
2011
Amounts paid or granted in respect of 2011 year 1,100,000 1,500,000 – 7,375 2,607,375
less amounts which must be deferred in respect of 2011 year – 650,000 – – 650,000
Amount received i n respect of 201 1 year 1,100,000 850,000 – 7,375 1,957,3 7 5
2010
Amounts paid or g ranted in respec t of 2010 year 1,100,000 1,320,000 425,000 60,565 2,905,5 6 5
less amounts which must be deferred in respect of 2010 year – 560,000 425,000 – 985,000
Amount received i n respect of 201 0 year 1,100,000 760,000 – 60,565 1,920,5 6 5
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1. P Chronican – P Chronican commenced on 30 November 2009 so 2010 payments refl ect amounts received for the partial service for the 2010 year. Other grants/benefi ts includes car parking and relocation expenses. 2. S Elliott – Other grants/benef ts includes car parking and relocation expenses. Equity which has been previously disclosed ~~in remuneration report~~ s in prior years that ~~f~~ rst vested in 2011 in ~~cluded STI deferred shares granted 13 Nove~~ mber 2009, valued a ~~t~~ $25,566 at vesting on 13 November 2010 and STI deferred options granted 13 November 2009, valued at $2,796 at vesting on 13 November 2010. In addition to remuneration shown above, S Elliott received an equity grant in 2009 in accordance with his employment arrangements on joining ANZ. ANZ agreed to provide S Elliott with shares to the value of $125,000 deferred for ~~one year and shares to~~ the value of $125,00 ~~0~~ deferred for two ye ~~ars. The shares were granted on 11 June 20~~ 09. The one year def ~~e~~ rred shares became available on 11 June 2010, valued at $172,589 at vesting. The two year deferred shares became available on 11 June 2011, valued at $162,464 at vesting. 3. D Hisco – D Hisco commenced in role on 13 October 2010 so 2011 payments refl ect amounts received for the partial service for the 2011 year. Other grants/benefi ts includes relocation expenses such as fl ight ~~and housing assistance~~ , and taxation servic ~~e~~ s. Equity which fi rst ~~vested in 2011 included STI deferred shares~~ granted 13 Novem ~~b~~ er 2009, valued at $136,836 at vesting on 13 November 2010 and LTI performance rights granted 30 October 2007, valued at $634,134 at vesting on 31 October 2010. 4. A Thursby – Other grants/benefi ts includes car parking and relocation expenses. Equity which has been previously disclosed in remuneration reports in prior years that fi rst vested in 2011 included STI deferred shares ~~granted 31 October 200~~ 8, valued at $308,05 ~~1~~ at vesting on 31 Oct ~~ober 2010, STI deferred shares granted 13 N~~ ovember 2009, value ~~d~~ at $613,871 at vesting on 13 November 2010, STI deferred options granted 31 October 2008, valued at $635,420 at vesting on 31 October 2010 and LTI performance rights granted 30 October 2007, valued at $1,153,007 at vesting on 31 October 2010. In addition to remuneration shown above, A Thursby received an equity grant in 2009 in accordance with his employment arrangements on joining ANZ. ANZ agreed to provide A Thursby with three separate tranches of deferred shares to the value of $1m per annum. The fi rst tranche was made on 3 September 2007, the second on 28 August 2008 and the fi nal tranche was granted on 22 September 2009. The shares are restricted and held in trust for three years ~~from the date of alloca~~ tion. The fi rst tranch ~~e~~ became available o ~~n 3 September 2010, valued at $804,989 at~~ vesting. The second ~~t~~ ranche became available on 28 August 2011, valued at $1,249,537 at vesting. 5. G Hodges – Other grants/benef ts includes car parking and taxation services. Equity which has been previously disclosed in remuneration reports in prior years that fi rst vested in 2011 included STI deferred shares granted 13 November 2009, valued at $168,817 at vesting on 13 November 2010, ~~STI deferred options gr~~ anted 31 October 20 ~~0~~ 8, valued at $261,6 ~~41 at vesting on 31 October 2010, STI deferr~~ ed share rights gran ~~t~~ ed 31 October 2008, valued at $141,038 a ~~t~~ vesting on 31 October 2010 and LTI performance rights granted 30 October 2007, valued at $1,441,258 at vesting on 31 October 2010. 6. P Marriott – Other grants/benefi ts includes car parking. Equity which has been previously disclosed in remuneration reports in prior years that fi rst vested in 2011 included STI deferred shares granted 31 ~~October 2008, valued a~~ t $90,580 at vesting ~~o~~ n 31 October 2010, ~~STI deferred shares granted 13 November 2~~ 009, valued at $166, ~~2~~ 51 at vesting on 13 November 2010, STI deferred options granted 31 October 2008, valued at $186,886 at vesting on 31 October 2010 and LTI performance rights granted 30 October 2007, valued at $1,441,258 at vesting on 31 October 2010. 7. C Page – Other grants/benefi ts includes car parking, relocation expenses and taxation services. Equity which has been previously disclosed ~~in remuneration reports~~ in prior years that fi ~~rs~~ t vested in 2011 incl ~~uded STI deferred shares granted 13 Novem~~ ber 2009, valued at $ ~~3~~ 58,091 at vesting on 13 November 2010.

Based on one day VWAP on 12 November 2010, as 13 November 2010 was a non-trading day.

Key Contacts

IMPOR TANT DATES FOR SHAR EHOLDERS*

HANDY CONTACTS

REGISTERED OFFICE

ANZ Centre Melbourne Level 9, 833 Collins Street Docklands VIC 3008 Australia Telephone +61 3 9273 5555 Facsimile +61 3 8542 5252 Company Secretary: John Priestley

SHARE REGISTRAR

AUSTRALIA

Computershare Investor Services Pty Ltd GPO Box 2975 Melbourne VIC 3001 Australia Telephone 1800 11 33 99 (Within Australia) +61 3 9415 4010 (International Callers) Facsimile +61 3 9473 2500 [email protected]

» 2 MAY 2012 Interim Results Announcement

» 10 MAY 2012 Interim Dividend Ex-Date

» 16 MAY 2012 Interim Dividend Record Date

INVESTOR RELATIONS

Level 9, 833 Collins Street Dockl ~~ands VIC 3008 Australia~~ Teleph ~~one +61 3 8654 7682~~ Facsi ~~mile +61 3 8654 9977~~ Email: [email protected]~~ Websi ~~te: shareholder.anz.com~~

Group General Manager Investor Relations: Jill Craig

CORPO RATE AFFAIRS / CORPORATE RESPONSIBILITY

Level 9, 833 Collins Street Docklands VIC 3008 Australia Telephone +61 3 8654 3276 Facsimile +61 3 8654 9911

Group General Manager Corporate Af airs: Gerard Brown

NEW ZEAL A ND

Private B ~~a~~ g 92119 Auckla ~~nd 1142~~ New Zeal ~~a~~ nd Telephon ~~e~~ 0800 174 007 Facsimile ~~+~~ 64 9 488 878 ~~7~~

UNITED KINGDOM

The Pavilions Bridgwater Road Bristol BS99 6ZZ United Kingdom Telephone +44 870 702 0000 Facsimile +44 870 703 6101

UNITED ST A TES

The Bank ~~o~~ f New York M ~~ellon~~ Corporati ~~o~~ n Shareowner Services BNY Mellon Shareowner Services P.O. Box 358516 Pittsburgh, PA 15252-8516 Callers outside USA: +1-201-680-6825 Callers within USA: 1-888-269-2377

» 2 JULY 2012 Interim Dividend Payment Date

» 25 OCTOBER 2012 Annual Results Announcement

» 8 NOVEMBER 2012 Final Dividend Ex-Date

» 14 NOVEMBER 2012 Final Dividend Record Date

» 19 DECEMBER 2012 Final Dividend Payment Date

» 19 DECEMBER 2012 Annual General Meeting

If there are any changes to these dates, the Australian Securities Exchange will be notifi ed accordingly.

OUR INTERNATIONAL PRESENCE

» Australia
» New Zealand
» Asia – Cambodia, China, Hong Kong, India, Indonesia, Japan, Korea, Laos, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Vietnam
» Europe

» Pacifi c – American Samoa, Cook Islands, East Timor, Fiji, Guam, Kiribati, New Caledonia, Papua New Guinea, Samoa, Solomon Islands, Tonga, Vanuatu

» Middle East
» United Kingdom
» United States of America

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ANZ uses National Carbon Offset Standard certified Envi Recycled 50/50 Carbon Neutral paper An Australian Government Initiative

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anz.com

AI assistant

Australia and New Zealand Banking Group Ltd. — Annual Report 2011

10425_rns_2011-11-10_0e01f51d-eba7-4f72-8805-9e859c2fd2e3.pdf

~~Our strat~~ egy p ~~o~~ sition ~~s us to capture the econ~~ omic rowth ~~g and growing interdep~~ ende ~~n~~ ce of t ~~he economies i~~ n ~~Asia. We~~ think ~~o~~ f that . ~~as connectivity~~

CONTENTS

O ~~ur super~~ r ate ~~egional str g~~ y

OUR BUSINESS

WHERE WE OPERATE

ABOUT THIS DOCUMENT

MORE INFORMATION

FINANCIAL HIGHLIGHTS

Underlying profi t is adjusted for non-core items that are not part of the normal ongoing operations of the Group including one-off gains and losses, non-continuing businesses, timing diff erences on economic hedges and acquisition related costs.

NON-FINANCIAL HIGHLIGHTS

~~EXPANSION AND~~ GROWTH

CUSTOMERS AND THE COMMUNITY

OUTL ~~OOK~~

A Message From Michael Smith

ANZ’s key customer franchises in Australia, New Zealand and Asia Pacif c produced solid performances in 2011.

REGIONAL PERFORMANCE[*]

MANAGEMENT BOARD

UNIQ ~~UE GROWTH OPPORTUNITIES~~

Philip Chronican,

~~BUSINESS PROFI~~ LE

~~BUSINESS HI~~ GHLIGHTS

THE BANK OF CHOICE FOR BUSINESSES TRADING WITH ASIA

Key to our growth aspirations is being the bank of choice for businesses trading with Asia.

Asia Pacifi c, Europe and America Division

Alex Thursby,

BUSINESS PROFILE

BUSINESS HIGHLIGHTS

OUR SUPER REGIONAL STRATEGY COMES TO LIFE The opening of the Mumbai branch re-establishes ANZ’s banking presence in India.

~~New~~ Zeal ~~a~~ nd ~~Divisi~~ on

David Hisco,

~~BUSINESS PROFI~~ LE

~~BUSINESS HIGHL~~ IGHTS

~~Institu~~ tio ~~n~~ al ~~Divisi~~ on

~~Shayne Elliott,~~

BUSINESS PROFILE

~~BUSINESS HIGHL~~ IGHTS

CASE STUDY

SUPPORTING OUR ENERGY NEEDS

We recognise the importance of supporting the evolution of the growing renewables sector and of encouraging innovation in the transition to a lower carbon future.

~~Techn~~ olo ~~g~~ y

~~Anne Weathersto~~ n,

BUSINESS PROFILE

BUSINESS HIGHLIGHTS

CASE STUDY

SIMPLIFYING OUR TECHNOLOGY LANDSCAPE

With operations expanding across 32 markets, having standardised systems is a vital component in supporting ANZ’s super regional direction.

We want to do the right thing

> RESPONSIBLE PRACTICES

> EDUCATION AND EMPLOYMENT OPPORTUNITIES

> FINANCIAL CAPABILITY

> BRIDGING URBAN AND RURAL ECONOMIC AND SOCIAL DIVIDES

> URBAN SUSTAINABILITY

M ~~onitoring~~ o ~~ur progres~~ s

LEADERSHIP FROM THE TOP

PUBLI ~~C TARGETS DRIVE RESULTS~~

ASSURANCE

REPORTING AT ANZ

~~We en~~ ga ~~g~~ e, li ~~sten and r~~ esp ~~o~~ nd

OUR APPROACH IN ACTION – ENERGY

EMBEDDING HUMAN RIGHTS ACROSS OUR BUSINESS

Building global alignment in our people policies

Supporting better sourcing decisions

Taking account of human rights in our lending

TAKING ACCOUNT OF OUR DECISIONS AND PRACTICES

~~BRICK BY BRICK~~

~~Disaster touched~~ almost every c ~~o~~ rner of our re ~~gion during the year, bringing~~ with it traum ~~a~~ and devastat ~~ion for our communities, cus~~ tomers and st ~~a~~ ff .

KEY GOALS WE ~~SET OUT~~ TO ~~ACHIEVE~~ IN ~~2011~~

CUSTOMERS

EMPLOYEES

SUPPLIERS

GOVERNANCE

KICK-STARTING INDIGENOUS CAREERS

BUILDING A GENDER BALANCED BUSINESS

Creating a workplace that attracts and fully capitalises on the talents of women has been an important focus for our business over a number years.

EASIER BANKING FOR PEOPLE WITH DISABILITY

OUR APPROACH Building fi nancial IN ACTION capability

NEW FUNDING TO EXTEND SAVER PLUS

Australia and New Zealand Banking Group Ltd. Annual Report 2011

Our strat egy p o sition s us to capture the econ omic rowth g and growing interdep ende n ce of t he economies i n Asia. We think o f that . as connectivity

O ur super r ate egional str g y

EXPANSION AND GROWTH

OUTL OOK

UNIQ UE GROWTH OPPORTUNITIES

BUSINESS PROFI LE

BUSINESS HI GHLIGHTS

New Zeal a nd Divisi on

BUSINESS PROFI LE

BUSINESS HIGHL IGHTS

Institu tio n al Divisi on

Shayne Elliott,

BUSINESS HIGHL IGHTS

Techn olo g y

Anne Weathersto n,

M onitoring o ur progres s

PUBLI C TARGETS DRIVE RESULTS

We en ga g e, li sten and r esp o nd

BRICK BY BRICK

Disaster touched almost every c o rner of our re gion during the year, bringing with it traum a and devastat ion for our communities, cus tomers and st a ff .

KEY GOALS WE SET OUT TO ACHIEVE IN 2011

M oneyMinded Hong Kong

M oneyMinded New Zealand

WITHI N OUR BUSINESS

KE Y GOALS

Five -Ye a r sum ma r y

Remu ner a tio n Overv iew

The following tables, relati n g to the CEO, show:

Key Contacts

IMPOR TANT DATES FOR SHAR EHOLDERS*

CORPO RATE AFFAIRS / CORPORATE RESPONSIBILITY

NEW ZEAL A ND

UNITED ST A TES