Australia and New Zealand Banking Group Ltd. — Earnings Release 2015

Oct 28, 2015

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Australia and New Zealand Banking Group Limited

ABN 11 005 3 5 7 522

Full Year 30 September 2015

Consolidated Financial Report Dividend Announcement and Appendix 4E

Th e Consolidated Financial Report and Dividend Announcement contains infor m ation required by Appendix 4 E of the Australian Securities Ex c hange (ASX) L isting Rules. It should be read in conjunction w ith ANZ’s 201 5 Annual Repo r t when release d , and is lodge d with the ASX un d er listing rule 4 .3A.

RESULTS FOR ANNOUNCEMENT TO THE MARKET

APPENDIX 4E

Name of Company: Australia and New Zealand Banking Group Limited ABN 11 005 357 522

Report for the year ended 30 September 2015	Report for the year ended 30 September 2015
Operating Results1	A$ million
Operating income		5%	to	21,071
Net statutory profit attributable to shareholders		3%	to	7,493
Cash profit 2		1%	to	7,216
Dividends3		Cents		Franked
		per		amount **4 **
		share		per share
Proposed final dividend		95		100%
Interim dividend		86		100%
Record date for determining entitlements to the proposed 2015 final dividend			10	November 2015
Payment date for the proposed 2015 final dividend			16	December 2015

Dividend Reinvestment Plan and Bonus Option Plan

Australia and New Zealand Banking Group Limited (ANZ) has a Dividend Reinvestment Plan (DRP) and a Bonus Option Plan (BOP) that will operate in respect of the 2015 final dividend. For the 2015 final dividend, ANZ intends to provide shares under the DRP and BOP through the issue of new shares. The 'Acquisition Price' to be used in determining the number of shares to be provided under the DRP and BOP will be calculated by reference to the arithmetic average of the daily volume weighted average sale price of all fully paid ANZ ordinary shares sold in the ordinary course of trading on the ASX during the ten trading days commencing on 13 November 2015, and then rounded to the nearest whole cent. Shares provided under the DRP and BOP will rank equally in all respects with existing fully paid ANZ ordinary shares. Election notices from shareholders wanting to commence, cease or vary their participation in the DRP or BOP for the 2015 final dividend must be received by ANZ's Share Registrar by 5.00pm (Australian Eastern Daylight Time) on 11 November 2015. Subject to receiving effective contrary instructions from the shareholder, dividends payable to shareholders with a registered address in the United Kingdom (including the Channel Islands and the Isle of Man) or New Zealand will be converted to Pounds Sterling or New Zealand Dollars respectively at an exchange rate calculated on 13 November 2015.

1 Unless otherwise noted, all comparisons are to the year ended 30 September 2014.

2 Statutory profit has been adjusted to exclude non-core items to arrive at cash profit, which is provided to assist readers to understand the results for the ongoing activities of the Group. The net after tax adjustment was a reduction to statutory profit of $277 million made up of several items. Refer pages 83 to 92 for further details.

3 There is no foreign conduit income attributed to the dividends. 4

It is proposed that the final dividend will be fully franked for Australian tax purposes (30% tax rate) and carry New Zealand imputation credits of NZD 11 cents per ordinary share.

RESULTS FOR ANNOUNCEMENT TO THE MARKET

APPENDIX 4E

Th e directors of Au s tralia and New Z ealand Bankin g Group Limited c onfirm that the f inancial information and notes o f the consolidat e d entity set out o n pa g es 93 to 112 ar e in the process o f being audited .

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David M Gonski, AC Ch a irman

Michael R P Smith, OBE Director

28 October 2015

RESULTS FOR ANNOUNCEMENT TO THE MARKET

APPENDIX 4E

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

ABN 11 005 357 522

CONSOLIDATED FINANCIAL REPORT, DIVIDEND ANNOUNCEMENT AND APPENDIX 4E

Full year ended 30 September 2015

CONTENTS	PAGE
Section 1 – Media Release	7
Section 2 – Summary	11
Section 3 – Strategic Review	17
Section 4 – Group Results	19
Section 5 – Divisional Results	45
Section 6 – Geographic Results	75
Section 7 – Profit Reconciliation	83
Section 8 – Condensed Consolidated Financial Statements	93
Section 9 – Supplementary Information	113
Definitions	125
ASX Appendix 4E Cross Reference Index	128
Alphabetical Index	129

This Consolidated Financial Report, Dividend Announcement and Appendix 4E has been prepared for Australia and New Zealand Banking Group Limited (the “Company” or “Parent Entity”) together with its subsidiaries which are variously described as “ANZ”, “Group”, “ANZ Group”, “the consolidated entity” “the Bank”, “us”, “we” or “our”.

All amounts are in Australian dollars unless otherwise stated. The information on which the Condensed Consolidated Financial Statements is based is in the process of being audited by the Group’s auditors, KPMG. The Company has a formally constituted Audit Committee of the Board of Directors. The signing of the Condensed Consolidated Financial Statements was approved by resolution of a Committee of the Board of Directors on 28 October 2015.

When used in this Results Announcement the words “estimate”, “project”, “intend”, “anticipate”, “believe”, “expect”, “should” and similar expressions, as they relate to ANZ and its management, are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. ANZ does not undertake any obligation to publicly release the result of any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

ABN 11 005 357 522

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

ABN 11 005 357 522

For Release: 29 October 2015

Media Release

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ANZ 2015 Full Year Result

– continued growth in customer franchises in a challenging operating environment –

Performance Highlights

• Statutory profit after tax of $7.5 billion up 3%. Cash profit[1] of $7.2 billion up 1%.

• Final Dividend 95 cents per share (cps) fully franked. Total Dividend for the year 181 cps up 2%. Earnings per share was flat at 260.3 cents, reflecting increased shares on issue following the capital raising in the second half.

• Profit before Provisions (PBP) up 3%.

• Customer deposits grew 10% with net loans and advances up 9%.

• Return on Equity (RoE) 14.0%.

• ANZ’s Common Equity Tier 1 (CET1) ratio is 13.2% on an internationally comparable Basel 3 basis[2] and 9.6% on an Australian Prudential Regulation Authority (APRA) Basel 3 basis.

All comparisons are Financial Year ended 30 September 2015 compared to Financial Year ended 30 September 2014, not adjusted for FX and on a cash basis unless otherwise noted.

OVERVIEW

ANZ Chief Executive Officer Mike Smith said: “We have produced another record result in FY15. In a constrained environment, we have continued to see growth in our core customer franchises in Australia, in New Zealand and in key Asian markets, partly offset by the effect of macro-economic headwinds on the International and Institutional Banking Division.

“The Australia Division has continued to deliver good profit growth based on market share gains in key segments. The New Zealand Division also grew profit based on market share gains and strong cost disciplines. Global Wealth again produced a positive performance. In International and Institutional Banking profit was down reflecting the challenging global environment. This included pronounced market volatility in the final weeks of FY15 which saw a disappointing trading outcome in Global Markets.

“We are continuing to evolve our strategy and accelerate its execution to maximise value for our customers and for our shareholders. There are significant opportunities for ANZ, however lower economic growth, intense competition, the growing cost of regulation and market volatility present headwinds for all banks.

“In Australia we are successfully investing in growth opportunities in New South Wales while across Australia and New Zealand we are continuing to grow market share in Mortgages and Small Business. In International and Institutional Banking, we are focusing on attractive opportunities in Cash Management while stepping away from lower return financial institutions Trade Finance. Growth in Risk Weighted Assets is also being restricted to better manage capital within the business. There is still a lot to do, however we are already seeing some results from these actions and we expect to see more in future periods.

“Over the past eight years we have strengthened ANZ, created Australia’s only truly regional bank and built a better bank for our customers in Australia, in New Zealand and in Asia Pacific. I know ANZ will be in good hands when Shayne Elliott succeeds me as Chief Executive on 1 January,” Mr Smith said.

DIVIDEND AND CAPITAL

Inclusive of the Final Dividend of 95 cps, the total dividend for the year of 181 cps will see ANZ shareholders receive $5.1 billion.

At the end of FY15 the Group’s APRA CET1 ratio was 9.6%, up 87 basis points (bps) from March 2015. On an Internationally Comparable basis the CET1 ratio was 13.2%, placing ANZ within the top quartile of international peer banks. The completion of the sale of the Esanda Dealer Finance portfolio will deliver a further 20 bps of CET1.

ANZ raised a total of $4.4 billion of new equity throughout the past year, including $3.2 billion in response to APRA’s increased capital requirement for Australian residential mortgages which applies from July 2016. ANZ

1 Statutory profit has been adjusted to exclude non-core items to arrive at Cash profit which measures the result for the ongoing activities of the Group. 2 Internationally comparable methodology aligns with APRA’s information paper “International Capital Comparison Study” (13 July 2015).

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

ABN 11 005 357 522

expects the APRA CET1 ratio to remain around 9% post implementing the mortgage RWA change next year. The Group continues to retain significant capital management flexibility to progressively adjust to further changes in regulatory capital requirements if required.

PERFORMANCE BY DIVISION[3]

AUSTRALIA

The Australia Division continued its trend of cash profit improvement with profit and PBP growth of 7%. The result was driven by growth in customer numbers along with increased product sales and market share.

Investment focused on digital platform enhancement, increasing distribution sales capacity and capability, growing our presence in particular in New South Wales (NSW), a high growth market where ANZ has historically been underweight, and building out specialist propositions in key sectors of Corporate and Commercial Banking (C&CB).

Lending grew 9% with deposits up 5%. Sales performance has been strong, particularly in Home Lending, Credit Cards and Small Business Banking. ANZ has grown home lending market share consistently now for six years driven by capability and capacity improvements in our branches, online, in ANZ’s mobile lender team and improved broker servicing.

ANZ’s C&CB business grew lending by 6% despite patchy sentiment in the Commercial sector, with Small Business Banking performing particularly strongly, up 12%. Increased specialist capability saw lending to the Health sector up 16% in the second half.

ANZ has seen strong commercial outcomes from its investment in digital capability with increased numbers of customers engaging with the business via digital channels. In FY15 sales via digital channels grew 30%, new to bank goMoney customers grew 89% and product purchases on mobile devices increased 121%.

INTERNATIONAL AND INSTITUTIONAL BANKING (IIB)

IIB cash profit declined 2% with PBP down 1%. While it has been a challenging year for the business we have continued to develop the customer franchises in Asia, New Zealand and Australia with particularly good outcomes in Asia. Customer sales in our higher returning products demonstrated good growth with cash deposits up 11%, commodities sales up 44% and rates sales up 32%.

Global Markets customer income continued a pattern of steady year on year (YOY) increases, up 7%. Despite a strong performance over the nine months to the end of the third quarter, changed financial market conditions in the last six weeks of the fourth quarter caused significant dislocation and a widening of credit spreads, which particularly impacted trading income as well as suppressing sales. This meant total Global Markets income finished the year down 2%.

A multi-year investment in the high returning Transaction Banking Cash Management capability has seen Cash Management deposits up 48% over the past three years. Similarly investment in Global Markets product, technology and customer sales capability has driven good outcomes with Foreign Exchange income up 24% over the past three years to represent 42% of the book.

IIB has been refining key business areas. Reduced exposure to some lower returning areas of the Trade business, while lowering Trade income slightly, has improved returns. In the Global Loans business, increased focus on RWA efficiency over the course of the second half saw profit decline but margins and returns on RWA begin to stabilise.

NEW ZEALAND (all figures in NZD)

New Zealand Division cash profit grew 3% with PBP up 7%. Ongoing business momentum is reflected in balance sheet growth which along with capital and cost discipline (costs +2%) has grown returns. While underlying credit quality remains robust and gross impaired assets continued to decline, a lower level of provision write-backs YOY saw the provision charge normalising although remaining modest at $59 million.

Lending grew 8% with deposits up 14%. Brand consideration remains the best of the top four banks, strengthening further. In turn, this is translating into lending demand with ANZ now the largest mortgage lender across all major cities. ANZ has grown market share in key categories during the year including mortgages, credit cards, household deposits, life insurance, KiwiSaver and business lending. The Commercial business grew strongly across all regions with lending up 8%.

ANZ increased investment in digital and in sales capability. Sales revenue generated from digital channels increased 32%. A focus on delivering a great digital experience for customers has seen ANZ’s mobile banking app ‘goMoney’ consistently scoring above 98% in customer satisfaction and, with over half a million customers, it is the most downloaded banking app in New Zealand.

3All comparisons are Financial Year ended 30 September 2015 compared to Financial Year ended 30 September 2014, not adjusted for FX and on a cash basis unless otherwise noted.

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

ABN 11 005 357 522

GLOBAL WEALTH

The Global Wealth Division increased profit by 11%. Positive performance was experienced across all business units. Insurance delivered growth in in-force premiums along with stable claims and lapse experience, which contributed to an 18% increase in both embedded value and in the value of new business. Private Wealth continued to deliver growth through customer focused investment solutions – with FUM increasing 22% and customer deposits 33% YOY.

Global Wealth continues to reshape the customer experience through new digital solutions. Recent innovations include ‘Advice on Grow™’, new tools improving the advice experience, while ‘Insurance on Grow™’ will soon be released to the market.

ANZ Smart Choice Super leads the industry in value for money and innovation. FUM now exceeds $4.3 billion and for the second year ANZ Smart Choice received the prestigious Super Ratings Fastest Mover award. ANZ KiwiSaver continues to build its market position with FUM growing 32% to A$7 billion. Global Wealth’s focus on improving customer experience is reflected in the increased sale of Wealth solutions through ANZ channels with growth of 8% YOY.

CREDIT QUALITY

Gross impaired assets decreased 6% over the course of the year. While the total provision charge increased to $1.2 billion or 22 bps, loss rates[4] remain well under the long term average having risen from their historically low levels. The individual provision charge declined $34 million and while the collective provision charge increased it remained low in absolute terms at $95 million compared to a net release the prior year.

We are beginning to see the normalisation of provision charges with the component parts of the collective provision charge responding as expected to the economic environment. During FY15 the movement in the risk profile component of the charge reflected moderating economic activity with a lower number of credit downgrades being recorded whereas the prior year saw a higher level of upgrades.

For media enquiries contact:

Paul Edwards Stephen Ries Group GM, Corporate Communications Head of Media Relations Tel: +61-434-070101 Tel: +61-409-655551 Email: Paul.Edwards@anz.com Email: Stephen.Ries@anz.com

For investor and analyst enquiries contact:

Jill Craig Cameron Davis Group GM, Investor Relations Executive Manager, Investor Relations Tel: +61-412-047448 Tel: +61-421- 613819 Email: Jill.Craig@anz.com Email: Cameron.Davis@anz.com

Video interviews with ANZ’s Chief Executive Officer Mike Smith and Chief Financial Officer Shayne Elliott regarding today’s Full Year 2015 Consolidated Financial Report and Dividend announcement can be found at ANZ BlueNotes www.bluenotes.anz.com

4 Total credit impairment charge as a percentage of average gross loans and advances.

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

ABN 11 005 357 522

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10

SUMMARY

CONTENTS

Section 2 – Summary

Statutory Profit Results Cash Profit Results Key Balance Sheet Metrics FX Adjusted - Cash Profit Results Other Non-financial Information

11

SUMMARY

Statutory Profit Results

Net interest income Other operating income		Half Year Sep 15 $M Mar 15 $M Movt1 7,478 7,138 5% 3,363 3,092 9%	Half Year Sep 15 $M Mar 15 $M Movt1 7,478 7,138 5% 3,363 3,092 9%		Full Year Sep 15 $M Sep 14 $M Movt 14,616 13,810 6% 6,455 6,244 3% 21,071 20,054 5% (9,359) (8,760) 7% 11,712 11,294 4% (1,179) (986) 20% 10,533 10,308 2% (3,026) (3,025) 0% (14) (12) 17% 7,493 7,271 3% Full Year	Full Year Sep 15 $M Sep 14 $M Movt 14,616 13,810 6% 6,455 6,244 3% 21,071 20,054 5% (9,359) (8,760) 7% 11,712 11,294 4% (1,179) (986) 20% 10,533 10,308 2% (3,026) (3,025) 0% (14) (12) 17% 7,493 7,271 3% Full Year
		7,478
		3,363
Operating income Operating expenses		10,841
Profit before credit impairment and income tax Credit impairment charge		6,075
Profit before income tax Income tax expense Non-controlling interests		5,390
Profit attributable to shareholders of the Company		3,987 3,506 14%
Earnings per ordinary share (cents) Reference Page Basic 104 Diluted 104		Half Year Sep 15 Mar 15 Movt1 143.4 128.0 12% 134.9 124.6 8%
					Sep 15 Sep 14 Movt 271.5 267.1 2% 257.2 257.0 0%
Ordinary share dividends (cents) Interim - 100% franked2 Final - 100% franked2		Reference Page 103 103	Half Year Sep 15 Mar 15 - 86 95 -			Full Year Sep 15 Sep 14 86 83 95 95 181 178 68.6% 67.4% 1 6 14.5% 15.8% 0.88% 0.97% 2.04% 2.13% 44.4% 43.7% 1.10% 1.17% 1,084 1,141 95 (155) 1,179 986 0.19% 0.22% 0.21% 0.19%
Total - 100% franked2 Ordinary share dividend payout ratio3 Preference share dividend ($M) Dividend paid4		103 103 103	95 86 69.2% 67.9% - 1
Profitability ratios Return on average ordinary shareholders' equity5 Return on average assets Net interest margin			15.0% 14.0% 0.91% 0.85% 2.04% 2.04%
Efficiency ratios Operating expenses to operating income Operating expenses to average assets			44.0% 44.9% 1.09% 1.11%
Credit impairment charge/(release) Individual credit impairment charge ($M) Collective credit impairment charge/(release) ($M)			645 439 40 55
Total credit impairment charge ($M) 106 Individual credit impairment charge as a % of average gross loans & advances6 Total credit impairment charge as a % of average gross loans & advances6			685 494 0.23% 0.16% 0.24% 0.18%

1. The half-on-half results are impacted by seasonal variability such as the number of days in the half and seasonal related impacts on product sales and profitability. 2.

Fully franked for Australian tax purposes and carry New Zealand imputation credits of NZD 11 cents per ordinary share for the proposed 2015 final dividend (2015 interim dividend: NZD 10 cents; 2014 final dividend: NZD 12 cents; 2014 interim dividend: NZD 10 cents).

3.

Dividend payout ratio is calculated using the proposed 2015 final, 2015 interim, 2014 final and 2014 interim dividends.

4.

Represents dividends paid on Euro Trust Securities (preference shares) issued on 13 December 2004. The Euro Trust Securities were bought back by ANZ for cash at face value and cancelled on 15 December 2014.

5.

Average ordinary shareholders’ equity excludes non-controlling interests and preference shares.

6.

Loans & advances as at 30 September 2015 include assets classified as held for sale.

12

SUMMARY

Cash Profit Results1

Cash Profit Results 1
Net interest income Other operating income		Half Year		Movt2 5% -6%
		Mar 15 $M 7,138 3,047
	Sep 15
	$M
	7,478
	2,855
Operating income Operating expenses	10,333	10,185 (4,593)		1% 4%
	(4,766)
Profit before credit impairment and income tax Credit impairment charge	5,567	5,592 (510)		0% 36%
	(695)
Profit before income tax Income tax expense Non-controlling interests	4,872	5,082 (1,398) (8)		-4% -5% -25%
	(1,326)
	(6)
Cash profit	3,540	3,676		-4%
Earnings per ordinary share (cents) Reference Page Basic 35 Diluted 35	Half Year Sep 15 Mar 15 126.8 133.6 119.8 129.9	Half Year		Movt -5% -8%
Ordinary share dividends Ordinary share dividend payout ratio3	Reference Page 36			Half Year Sep 15 Mar 15 77.9% 64.7%
					Sep 15 Sep 14 71.2% 68.9%
Profitability ratios Return on average ordinary shareholders' equity4 Return on average assets Net interest margin Profit per average FTE ($)	22			13.3% 14.7% 0.81% 0.89% 2.04% 2.04% 69,214 72,382	14.0% 15.4% 0.85% 0.95% 2.04% 2.13% 141,621 142,064
Efficiency ratios Operating expenses to operating income Operating expenses to average assets				46.1% 45.1% 1.09% 1.11%	45.6% 44.7% 1.10% 1.17%
Credit impairment charge/(release) Individual credit impairment charge ($M) Collective credit impairment charge/(release) ($M)	29 30			655 455 40 55	1,110 1,144 95 (155)
Total credit impairment charge ($M) 29 Individual credit impairment charge as a % of average gross loans & advances5 Total credit impairment charge as a % of average gross loans & advances5				695 510 0.23% 0.17% 0.24% 0.19%	1,205 989 0.20% 0.22% 0.22% 0.19%

Cash profit by division/geography (in AUD) Australia International and Institutional Banking New Zealand Global Wealth GTSO and Group Centre	Half Year Sep 15 $M Mar 15 $M Movt 1,672 1,602 4% 1,205 1,459 -17% 561 566 -1% 342 259 32% (240) (210) 14%	Full Year
		Sep 15 $M Sep 14 $M Movt 3,274 3,054 7% 2,664 2,708 -2% 1,127 1,078 5% 601 542 11% (450) (265) 70%
Cash profit by division	3,540 3,676 -4%	7,216 7,117 1%
Australia Asia Pacific, Europe & America New Zealand	2,269 2,147 6% 492 743 -34% 779 786 -1%	4,416 4,362 1% 1,235 1,216 2% 1,565 1,539 2%
Cash profit by geography	3,540 3,676 -4%	7,216 7,117 1%

1. Statutory profit has been adjusted to exclude non-core items to arrive at cash profit, which is provided to assist readers to understand the result for the ongoing business activities of the Group. Refer to page 83 for the reconciliation between statutory and cash profit.

2. The half-on-half results are impacted by seasonal variability such as the number of days in the half and seasonal related impacts on product sales and profitability. 3.

Dividend payout ratio is calculated using the proposed 2015 final, 2015 interim, 2014 final and 2014 interim dividends. 4. Average ordinary shareholders’ equity excludes non-controlling interests and preference shares.

5. Loans & advances as at 30 September 2015 include assets classified as held for sale.

13

SUMMARY

Key Balance Sheet Metrics

Key Balance Sheet Metrics
Reference Page Capital adequacy Common Equity Tier 1 - APRA Basel 3 40 - Internationally Comparable Basel 31 40 Credit risk weighted assets ($B) 116 Total risk weighted assets ($B) 116	As at Sep 15 Mar 15 Sep 14 9.6% 8.7% 8.8% 13.2% 12.1% 12.5% 349.8 339.7 308.9 401.9 386.9 361.5	Movement Sep 15 v. Mar 15 Sep 15 v. Sep 14 3% 13% 4% 11%
Balance Sheet: Key Items Gross loans & advances ($B)2 Net loans & advances ($B)2 Total assets ($B) Customer deposits ($B) Total equity ($B) Liquidity Coverage Ratio Leverage Ratio	574.3 562.2 525.7 570.2 558.2 521.8 889.9 860.1 772.1 444.6 436.1 403.7 57.4 52.1 49.3 122% 119% 111% 5.1% n/a n/a	2% 9% 2% 9% 3% 15% 2% 10% 10% 16%
Impaired assets Gross impaired assets ($M) 31 Gross impaired assets as a % of gross loans & advances2 Net impaired assets ($M) 31 Net impaired assets as a % of shareholders' equity Individual provision ($M) 107 Individual provision as a % of gross impaired assets Collective provision ($M) 107 Collective provision as a % of credit risk weighted assets	2,719 2,708 2,889 0.47% 0.48% 0.55% 1,658 1,594 1,713 2.9% 3.1% 3.5% 1,061 1,114 1,176 39.0% 41.1% 40.7% 2,956 2,914 2,757 0.85% 0.86% 0.89%	0% -6% 4% -3% -5% -10% 1% 7%
Net Assets Net tangible assets attributable to ordinary shareholders ($B) Net tangible assets per ordinary share ($)	48.9 43.6 40.4 16.86 15.75 14.65	12% 21% 7% 15%

1. See page 41 for further details regarding the differences between APRA Basel 3 and Internationally Comparable Basel 3 standards. 2.

Loans & advances as at 30 September 2015 include assets classified as held for sale.

Net loans and advances by division/geography Australia International and Institutional Banking New Zealand Global Wealth GTSO and Group Centre	As at Sep 15 $B Mar 15 $B Sep 14 $B 313.7 297.6 287.8 154.7 156.5 142.0 95.2 97.7 86.1 7.1 6.9 6.4 (0.5) (0.5) (0.5)	Movement
		Sep 15 v. Mar 15 Sep 15 v. Sep 14 5% 9% -1% 9% -3% 11% 3% 11% 0% 0%
Net loans and advances by division3	570.2 558.2 521.8	2% 9%
Australia Asia Pacific, Europe & America New Zealand	381.2 362.8 348.6 85.1 88.4 79.2 103.9 107.0 94.0	5% 9% -4% 7% -3% 11%
Net loans and advances by geography3	570.2 558.2 521.8	2% 9%

3.

Loans & advances as at 30 September 2015 include assets classified as held for sale.

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SUMMARY

FX Adjusted – Cash Profit Results

The following tables present the Group’s cash profit results neutralised for the impact of foreign exchange translation. Comparative data has been adjusted to remove the translation impact of foreign exchange movements by retranslating prior period comparatives at current period foreign exchange rates. Refer to page 33 for further details on the impact of exchange rate movements.

Cash Profit - September 2015 Full Year vs September 2014 Full Year

Net interest income Other operating income	Full Year
Operating income Operating expenses	20,518 19,578 488 20,066 5% 3% 2% (9,359) (8,760) (324) (9,084) 7% 4% 3%
Profit before credit impairment and income tax Credit impairment charge	11,159 10,818 164 10,982 3% 1% 2% (1,205) (989) (17) (1,006) 22% 2% 20%
Profit before income tax Income tax expense Non-controlling interests	9,954 9,829 147 9,976 1% 1% 0% (2,724) (2,700) (33) (2,733) 1% 1% 0% (14) (12) (1) (13) 17% 9% 8%
Cash profit	7,216 7,117 113 7,230 1% 1% 0%

Cash Profit - September 2015 Half Year vs March 2015 Half Year

Net interest income Other operating income	Half Year Actual FX unadjusted FX impact FX adjusted Sep 15 $M Mar 15 $M Mar 15 $M Mar 15 $M 7,478 7,138 46 7,184 2,855 3,047 35 3,082	Half Year Actual FX unadjusted FX impact FX adjusted Sep 15 $M Mar 15 $M Mar 15 $M Mar 15 $M 7,478 7,138 46 7,184 2,855 3,047 35 3,082	Movement
			FX unadjusted FX impact FX adjusted
			Sep 15 v. Mar 15 Sep 15 v. Mar 15 Sep 15 v. Mar 15 5% 1% 4% -6% 1% -7%
Operating income Operating expenses	10,333 10,185 81 10,266 (4,766) (4,593) (84) (4,677)		1% 0% 1% 4% 2% 2%
Profit before credit impairment and income tax Credit impairment charge	5,567 5,592 (3) 5,589 (695) (510) (2) (512)		0% 0% 0% 36% 0% 36%
Profit before income tax Income tax expense Non-controlling interests	4,872 5,082 (5) 5,077 (1,326) (1,398) 11 (1,387) (6) (8) - (8)		-4% 0% -4% -5% -1% -4% -25% 0% -25%
Cash profit	3,540 3,676	6 3,682	-4% 0% -4%

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SUMMARY

Other Non-financial Information

Other Non-financial Information
Full time equivalent staff information Full time equivalent staff (FTE) Assets per FTE ($M)		As at	Sep 14 50,328 15.3	Movement Sep 15 v. Mar 15 Sep 15 v. Sep 14 -2% 0% 5% 16% Full Year
		Sep 15 Mar 15 50,152 51,243 17.7 16.8
Shareholder value - ordinary shares Share price ($) - high - low - closing Closing market capitalisation of ordinary shares ($B) Total shareholder returns (TSR)
			Sep 15 $M Sep 14 $M Movt 37.25 35.07 6% 26.38 28.84 -9% 27.08 30.92 -12% 78.6 85.2 -8% -7.5% 5.9% large
Credit Ratings Moody's Investor Services Standard & Poor's Fitch Ratings			As at Sep 15
			Short-Term Long-Term Outlook P-1 Aa2 Stable A-1+ AA- Stable F1+ AA- Stable

16

STRATEGIC REVIEW

1

Strategic Review

ANZ is building the best connected, most respected bank across the Asia Pacific region, to help deliver prosperity for our customers and the communities in which they live, develop our people, and to provide shareholders sustainable earnings growth.

The strategy has three key elements – strengthening our core franchises in Australia and New Zealand, growing profitably in Asia focused on corporate and institutional clients, and taking an enterprise approach to operations and technology to deliver better control and lower unit costs. ANZ is focused on the organic growth opportunities which exist in Australia, New Zealand and Asia Pacific and our distinctive footprint sees us uniquely positioned to meet the needs of customers who are dependent on regional trade and capital flows. The strategy is underpinned by rigorous liquidity, capital and portfolio management and by the quality of our people.

ANZ's approach to sustainability supports the achievement of our business strategy by guiding the way we make decisions and conduct business in all of the markets in which we operate. Our decision making processes take into account the social and environmental impacts of ANZ's operations and prioritise building trust and respect amongst all of our stakeholders. Details of ANZ's approach to sustainability, including the identification and management of material issues and sustainability risks and opportunities, are available in the Corporate Sustainability Review. The 2015 report will be published on anz.com in December 2015.

In 2015, cash profit increased 1% to $7.2 billion, with a Return on Equity of 14%, earnings per share of 260.3 cents and a fully-franked dividend of 181 cents per share. The result was driven by revenue growth of 5%, expense uplift of 7% and a 22% increase in the credit impairment charge. Gross impaired assets decreased 6% over the year. While the credit impairment charge was up, loss rates remain well under the long term average having risen from their historically low levels. Revenue sourced from the APEA region was 25% of total Group revenue.

The Common Equity Tier 1 (CET1) ratio on an APRA basis was 9.6% at 30 September, up 80 basis points (bps), which equates to 13.2% on an Internationally Comparable Basel 3 basis placing ANZ within the top quartile of international peer banks. The completion of the sale of the Esanda Dealer Finance business will deliver a further 20 bps of CET1.

Strategic Progress

ANZ’s strategy has driven growth in our core customer franchises in Australia, in New Zealand and in key Asian markets, partly offset by the effect of macro-headwinds in our IIB Division.

ANZ’s view is that the constrained market conditions are unlikely to change in the near term and so the banking sector must remain focussed on selective growth opportunities, productivity and capital management. A number of initiatives have been put in place to drive improvement in both our cost and capital position over time.

• We have continued to strengthen our businesses in our home markets of Australia and New Zealand, with further gains in productivity and market share, and further penetration of Wealth products into our existing customer base in these markets. In Australia, we have successfully focused on investment in digital platform enhancement, increasing distribution sales capacity and capability, growing our presence in particular in New South Wales where ANZ has historically been underweight, and building out specialist propositions in key sectors of Corporate and Commercial Banking such as Health. The Australia Division has grown home lending market share consistently for six years driven by capability and capacity improvements. In New Zealand, ANZ’s brand consideration has strengthened further year on year to remain the best of the big four banks. This has translated into lending demand with ANZ now the largest mortgage lender across all major cities.

• In IIB, we have retained our position as the leading Institutional bank in Australia and New Zealand (Source: Peter Lee) and as the number four Corporate bank in Asia (Source: Greenwich Associates). Despite a challenging year IIB has continued to develop the customer franchise across the region with particularly good outcomes in Asia. IIB has increased its focus on improving returns. Investment in higher returning businesses has seen customer sales increase in products like commodities (sales +44%), rates (sales up 32%) and cash deposits (up 11%). Investment in digitisation is reducing manual processing of transactions, improving efficiency and cost to serve. IIB has also been refining key business areas. Reducing exposure to some lower returning areas of the Trade business improved returns while slightly lowering income. Increased focus on Risk Weighted Asset (RWA) efficiency in the second half saw Global Loans profit decline but margins and returns on RWA begin to stabilise.

• ANZ’s in-house regional delivery network is a source of ongoing competitive advantage for ANZ. The network is enabling the transformation of key business activities and delivery of productivity improvements while driving a more consistent, higher quality experience for our customers. The regional delivery centres provide full service regional coverage across our operating time zones helping to drive lower unit costs, improve quality and lower risk. ANZ is leveraging time zone advantages to support “same day” propositions for our businesses. In our retail mortgages business for example, we are now effecting same day decisions for 5,000 customers every month. We have built out a regional voice capability and have advanced our location agnostic processing capability with payments operations in five locations and mortgage operations in four thereby mitigating disruption risk and ensuring business resilience.

• ANZ raised a total of $4.4 billion of new equity in FY15, including $3.2 billion in response to APRA’s increased capital requirement for Australian residential mortgages which applies from July 2016. The Group CET1 was 9.6% at 30 September. ANZ expects the APRA CET1 ratio to remain around 9% post implementing the mortgage RWA change in July 2016 and retains significant capital management flexibility to progressively adjust to further changes to regulatory capital requirements if required.

• The total provision charge increased to 22 bps or $1.2 billion. The individual provision charge declined slightly while the collective provision charge increased but remained low in absolute terms at $95 million compared to a net release in FY14. Loss rates remained under the long term average.

1 The Strategic Review is reported on a cash basis. All comparisons are Financial Year ended 30 September 2015 compared to Financial Year ended 30 September 2014 and not adjusted for FX unless otherwise noted.

17

STRATEGIC REVIEW

CEO Succession

ANZ announced in September that Mike Smith would be stepping down as CEO effective 31 December 2015 with CFO Shayne Elliott succeeding him, becoming CEO effective 1 January 2016.

Over the past 8 years, ANZ has been transformed and is today a stronger, more diverse, more profitable bank. Importantly, we have created a better bank for our customers with a stronger brand, growing market share and more retail, commercial and institutional customers choosing to bank with ANZ

The bank’s presence in Asia, which was often small in scale and based on limited licences, has been grown into a large and growing business that connects our Australian and New Zealand customers with opportunities in the fastest growing region in the world economy. And it connects customers in Asia with opportunities in the region and in Australia and New Zealand.

While there is still have much to do, ANZ is now Australia’s only truly international bank and is a better bank for our 8 million customers in Australia, in New Zealand and in Asia Pacific. We are continuing to evolve our strategy and to accelerate its execution to maximize value for our customers and for our shareholders.

18

GROUP RESULTS

CONTENTS

Section 4 – Group Results

Group Performance Net interest income Other operating income Operating expenses Technology infrastructure spend Credit risk Income tax expense Impact of foreign exchange rate movements Earnings related hedges Earnings per share Dividends Economic profit Condensed balance sheet Liquidity risk Leverage ratio Capital management Other regulatory developments

19

GROUP RESULTS

Non-IFRS information

The Group provides additional measures of performance in the Results Announcement which are prepared on a basis other than in accordance with accounting standards. The guidance provided in Australian Securities and Investments Commission (ASIC) Regulatory Guide RG230 has been followed when presenting this information.

Cash profit

Statutory profit has been adjusted to exclude non-core items to arrive at cash profit, which is provided to assist readers in understanding the results for the ongoing business activities of the Group. The adjustments made in arriving at cash profit are included in statutory profit which is subject to audit within the context of the Group statutory audit opinion. The 2015 Annual Financial Statements are in the process of being audited. Cash profit is not audited by the external auditor, however, the external auditor has informed the Audit Committee that the adjustments have been determined on a consistent basis across each period presented.

The Group Results section is reported on a cash profit basis.

Statutory profit attributable to shareholders of the Company Adjustments between statutory profit and cash profit1 Treasury shares adjustments Revaluation of policy liabilities Economic hedges Revenue and net investment hedges Structured credit intermediation trades		Half Year
Total adjustments between statutory profit and cash profit1		) 170 large (277) (154) 80%
	(447
Cash Profit	3,540	3,676 -4% 7,216 7,117 1%

1. Refer to pages 83 to 92 for analysis of the reconciliation of statutory profit to cash profit.

Group Performance Net interest income Other operating income	Half Year Sep 15 $M Mar 15 $M Movt 7,478 7,138 5% 2,855 3,047 -6%	Full Year
		Sep 15 $M Sep 14 $M Movt 14,616 13,797 6% 5,902 5,781 2%
	7,478
	2,855
Operating income Operating expenses	10,333	20,518 19,578 5% (9,359) (8,760) 7%
Profit before credit impairment and income tax Credit impairment charge	5,567 5,592 0% (695) (510) 36%	11,159 10,818 3% (1,205) (989) 22%
Profit before income tax Income tax expense Non-controlling interests	4,872 5,082 -4% (1,326) (1,398) -5% (6) (8) -25%	9,954 9,829 1% (2,724) (2,700) 1% (14) (12) 17%
Cash profit	3,540 3,676 -4%	7,216 7,117 1%

Refer to page 33 for the impact of exchange rates and revenue hedges on cash profit.

Cash profit by division Australia International and Institutional Banking New Zealand Global Wealth GTSO and Group Centre	Half Year Sep 15 $M Mar 15 $M Movt 1,672 1,602 4% 1,205 1,459 -17% 561 566 -1% 342 259 32% (240) (210) 14%	Full Year Sep 15 $M Sep 14 $M Movt 3,274 3,054 7% 2,664 2,708 -2% 1,127 1,078 5% 601 542 11% (450) (265) 70%
Cash profit/(loss)	3,540 3,676 -4%	7,216 7,117 1%

20

GROUP RESULTS

Group Cash Profit – September 2015 Full Year v September 2014 Full Year

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 September 2015 v September 2014

Cash profit increased 1% compared to the September 2014 full year.

Key factors affecting the result were:

• Net interest income increased $819 million (6%) with 11% growth in average interest earning assets, partly offset by a 9 basis point decrease in net interest margin. $276 million (2%) of the increase in net interest income was due to foreign currency translation. The $71.2 billion increase in average interest earning assets was due to foreign currency translation of $20.9 billion, loan growth of $26.7 billion in home loans and commercial lending, and $24.7 billion growth in Global Markets driven by the Group liquidity portfolio and cash reserves. The decrease in net interest margin was due to asset competition, lower earnings on capital and higher liquid asset holdings, partly offset by favourable deposit pricing.

• Other operating income increased $121 million (2%) with $212 million (4%) due to foreign currency translation. Adjusting for this, other operating income decreased by $91 million (- 2%). The decrease was due to a reduction in Global Markets’ other operating income of $218 million and the one-off $125m gain on sale of Trustees in second half 2014, partially offset by a $124 million increase in net funds management and insurance income, a $64m increase in share of associates’ profit and $42m increased fee income in IIB from volume growth.

• Operating expenses increased $599 million (7%) with $324 million (4%) due to foreign currency translation. Personnel expenses increased $177 million (3%) from annual salary increases, and technology expenses increased by $166 million (13%) from higher depreciation and amortisation of key infrastructure projects. These increases were partially offset by a $80 million (73%) decrease in restructuring expenses.

• Total credit impairment charges increased $216 million (22%) due to a $250 million increase in collective credit impairment charges, offset by a $34 million (3%) decrease in individual impairment charges. The $95 million collective charge for the year reflects lending growth in Australia, credit downgrades of a few IIB customers, partially offset by associated economic cycle releases. This compares to a $155 million release in 2014 resulting from credit upgrades in IIB and New Zealand, and net decreases in the economic cycle overlay.

 September 2015 v March 2015

Cash profit decreased 4% compared to the March 2015 half.

Key factors affecting the result were:

• Net interest income increased $340 million (5%) with 4% growth in average interest earning assets and a flat net interest margin. $46 million (1%) of the increase was due to foreign currency translation. The $29.5 billion growth in average interest earning assets was due to foreign currency translation of $11.1 billion, loan growth of $12.5 billion in home loans and commercial lending, particularly in Australia and New Zealand, and $7.7 billion growth in Global Markets reflecting a build-up in the Group liquidity portfolio.

• Other operating income decreased by $192 million (6%) with foreign exchange translation having a $35 million favourable impact. Adjusting for this, other operating income, decreased by $227 million (7%). Significant market volatility and widening credit spreads drove a $325 million decrease in Global Markets’ other operating income, this was partially offset by a $43 million increase in net funds management and insurance income as well as a $37 million increase in other income.

• Operating expenses increased $173 million (4%) with $84 million (2%) due to foreign currency translation. Personnel expenses were broadly flat following disciplined FTE management, while technology expenses increased by $53 million (8%) due to higher outsourcing and licence costs. Other expenses increased by $30 million (4%) due to higher compliance and regulatory costs.

• Credit impairment charges increased $185 million (36%) due to a $200 million increase in individual credit impairment charges, partially offset by a $15 million decrease in the collective credit impairment charge. The increase in individual credit impairment charges was primarily driven by new impaired loans in IIB, higher charges taken in Australia retail portfolios combined with lower write-backs in Corporate and Commercial Banking Australia.

21

GROUP RESULTS

Net interest income

Group Cash net interest income Average interest earning assets Average deposits and other borrowings Net interest margin (%) - cash		Half Year	Half Year
	7,478
	732,843
	567,709
	2.04
Group (excluding Global Markets) Cash net interest income Average interest earning assets Average deposits and other borrowings Net interest margin (%) - cash		6,633 530,606 420,878 2.51	4% 13,517 12,754 6% 3% 538,724 500,966 8% 4% 428,812 387,908 11% 0 bps 2.51 2.55 -4 bps
	6,884
	546,797
	436,702
	2.51
Cash net interest margin by major division Australia Net interest margin (%) Average interest earning assets Average deposits and other borrowings International and Institutional Banking Net interest margin (%) Average interest earning assets Average deposits and other borrowings New Zealand Net interest margin (%) Average interest earning assets Average deposits and other borrowings		Half Year

Group net interest margin – September 2015 Full Year v September 2014 Full Year

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• September 2015 v September 2014

Net interest margin (-9 bps)

• Asset mix and funding mix (1 bp): favourable funding mix from a higher proportion of capital. Asset mix had no impact on margin as lower margin Home Loans were offset by a reduced proportion of Trade Loans.

• Funding costs (1 bp): benefit from favourable wholesale funding costs.

• Deposit competition (6 bps): benefits from deposit pricing, particularly term deposits across Australia and New Zealand.

• Asset competition and risk mix (-9 bps):unfavourable impact of home loan competition in Australia and New Zealand and switching from variable rates to fixed rate loans in New Zealand, as well as competition in Global Loans and Corporate & Commercial Banking.

• Markets and treasury (-8 bps): driven by lower earnings on capital due to lower interest rates and higher liquid asset holdings which have a lower rate of return.

22

GROUP RESULTS

Average interest earning assets (+$71.2 billion or +11%)

• International and Institutional Banking (+$44.5 billion or +17%): excluding foreign currency translation, growth was $25.1 billion or +9%. $24.7 billion of this increase was in Global Markets driven by a $17.0 billion increase in the Group liquidity portfolio in response to regulatory requirements, a $3.8 billion increase in reverse repos and a $2.2 billion increase in collateral paid against derivative liabilities. Lending in Global Loans increased by $4.2 billion. Global Trade volumes contracted by $4.6 billion due to the impact of lower commodity prices.

• Australia (+$19.9 billion or +7%): driven by growth in home loans where market share continued to increase.

• New Zealand (+$6.3 billion or +7%): excluding foreign currency translation, growth was $5.1 billion or +6% driven by market share gains in Retail, as well as Commercial loan growth.

• Global Wealth and Group Centre (+$0.5 billion or 4%): broadly unchanged during the period.

Average deposits and other borrowings (+$51.9 billion or +10%)

• International and Institutional Banking (+$25.6 billion or +12%): excluding foreign currency translation, deposits and other borrowings increased $5.7 billion or +2% driven by $6.7 billion growth in customer deposits in Transaction Banking, particularly in Asia, partially offset by $1.8 billion in certificates of deposits.

• Australia (+$7.3 billion or +5%): driven by growth in customer deposits within Retail and Commercial.

• New Zealand (+$7.3 billion or +13%): excluding foreign currency translation, growth was $6.5 billion or +12% due to increased customer deposits across Retail and Commercial, particularly in Retail savings products.

• Global Wealth and Group Centre (+$11.7 billion or 16%): growth mainly in Treasury repo borrowings.

Group net interest margin – September 2015 Half Year v March 2015 Half Year

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• September 2015 v March 2015

Net interest margin (0 bps)

• Asset mix and funding mix (1 bps): favourable funding mix from a higher proportion of capital. Asset mix had no impact as increased proportion of lower margin home loans were offset reduced proportion of trade loans.

• Funding costs (2 bps): benefit from favourable wholesale funding costs.

• Deposit competition (1 bp): benefit from less deposit competition across both Australia and New Zealand.

• Asset competition and risk mix (-2 bps): unfavourable impact of continued pressure on lending margins, particularly in Global Loans and Corporate and Commercial Banking.

• Markets and treasury (-2 bp): driven by lower earnings on capital due to lower interest rates.

Average interest earning assets (+$29.5 billion or +4%)

• International and Institutional Banking (+$14.1 billion or +5%): excluding foreign currency translation, growth was $1.5 billion or +1% driven by a $7.2 billion increase in Global Markets mainly from growth in the Group liquidity portfolio, partially offset by a decline in Global Trade of $5.3 billion due to lower commodity prices.

• Australia (+$12.4 billion or +4%): driven by market share gains in Retail.

• New Zealand (+$2.2 billion or +2%): excluding foreign currency translation, growth was $3.8 billion or +4% driven by growth in mortgage market share in Retail as well as growth in commercial lending.

• Global Wealth and Group Centre (+$0.8 billion or +6%): broadly unchanged during the period.

Average deposits and other borrowings (+$15.9 billion or +3%)

• International and Institutional Banking (+$5.9 billion or +2%): excluding foreign currency translation, deposits and other borrowings contracted by $6.7 billion or -3% due to a reduction in customer deposits in Transaction Banking, particularly in Asia.

• Australia (+$2 billion or +1%): driven by growth in customer deposits across Commercial and Retail.

• New Zealand (+$1.7 billion or +3%): excluding foreign currency translation, deposits increased by $2.8 billion or +4% due to increased customer deposits across Retail and Commercial, particularly in Retail savings products.

• Global Wealth and Group Centre (+$6.3 billion or 8%): growth was driven by Treasury repo borrowings and higher private bank customer deposits (at call products) in Global Wealth.

23

GROUP RESULTS

Other operating income

Net fee and commission income1 Net funds management and insurance income Global Markets other operating income Share of associates profit1 Net foreign exchange earnings1 Other1,2		Half Year
Cash other operating income	2,855 3,047 -6% 5,902 5,781 2%

1. Excluding Global Markets.

2.

Other income includes $125 million gain on sale of ANZ Trustees in July 2014 and $21 million loss arising on sale of Saigon Securities Inc. (SSI) in September 2014.

Global Markets income Net interest income Other operating income		Half Year	Half Year
	594
	448
Cash Global Markets income	1,042	1,242	-16% 2,284 2,328 -2%
Other operating income by division Australia International and Institutional Banking1 New Zealand Global Wealth2 GTSO and Group Centre		Half Year
Cash other operating income	2,855 3,047 -6% 5,902 5,781 2%

1. Includes a $21 million loss arising on sale of SSI in September 2014

2.

Includes a $125 million gain on sale of ANZ Trustees in July 2014.

Other operating income – September 2015 Full Year v September 2014 Full Year

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• September 2015 v September 2014

Net fee and commission income

Increased by $84 million (4%). Key factors include:

• $65 million positive impact due to foreign currency translation.

• Increased fee income of $42 million in IIB from Retail Asia Pacific and Transaction Banking volume growth.

• Partially offset by the divestment of the ANZ Trustees business in July 2014.

Net funds management and insurance income

Increased by $142 million (11%). Key factors include:

• $18 million positive impact of foreign currency translation.

• $107 million increase in Global Wealth income due to increased funds under management and in-force premiums, as well as growth in insurance income due to improved lapse experience and a large one-off loss in 2014 due to the exit of a Group life insurance plan.

24

GROUP RESULTS

Global Markets income

Decreased by $44 million (2%). Key factors include:

• Balance Sheet income decreased 30% driven by widening credit spreads on balance sheet trading positions, particularly in the last weeks of the financial year where there was market dislocation.

• Credit decreased 23% as European debt and Chinese economic concerns drove widening credit spreads impacting Asian and European bond holdings.

• Sales income increased 7%, with global volatility increasing demand for Foreign Exchange, Commodities and Rates products.

• Foreign Exchange income increased 7%, with increased customer activity.

• Commodities income increased 52%, with continued demand for gold from Asian clients and falling commodity prices.

• Rates income increased 39% with increased customer hedging activities in the current lower interest rate environment.

Share of associates’ profit

Increased by $115 million (23%) with foreign currency translation driving an increase of $51 million and the remaining increase explained by:

• Shanghai Rural Commercial Bank increased $53 million due to lending growth and the impairment of an investment held by SRCB in 2014.

• Bank of Tianjin increased $45 million due to asset growth.

• AMMB Holdings Berhad decreased $22 million mainly due to net interest margin contraction from a change in lending mix, and the divestment of its insurance business in September 2014.

• P.T. Bank Pan Indonesia decreased $13 million mainly due to lower earnings and a $10 million loan recovery in 2014.

Net foreign exchange earnings

Decreased by $17 million (-18%). Key factors include:

• $12 million positive impact of foreign currency translation.

• Higher realised losses on foreign currency hedges in GTSO and Group Centre ($68 million), these offset translation gains elsewhere in the Group.

• Higher unrealised gains on foreign currency balances held in IIB ($19 million).

• Global Transaction Banking increased $14 million due to volume growth in Australia and New Zealand.

Other

Decreased by $103 million (42%). Key factors include:

• $39 million positive impact due to foreign currency translation.

• The $125 million gain on sale of ANZ Trustees recognised in 2014.

• September 2015 v March 2015

Net fee and commission income

Increased by $14 million (1%) primarily due to:

• $16m positive impact of foreign currency translation.

Net funds management and insurance income

Increased by $43 million (6%) primarily due to:

• Income increased $31m due to growth in average funds under management, in-force premiums and stable claims experience

Global Markets income

Decreased by $200 million (16%). Key factors include:

• Balance Sheet income decreased 48% and Credit income decreased 28% as credit spreads widened, particularly at the end of the half.

• Rates income decreased 27% with many clients taking the opportunity of low interest rates to lock in their hedging profiles in the March 2015 half.

• Sales income decreased by 13% due to relative higher levels of volatility in March 2015 half and customer seasonality.

• Foreign Exchange income decreased 13% impacted by lower customer activity in September 2015 half.

25

GROUP RESULTS

Share of associates profit

Decreased by $3 million (1%) with foreign currency translation having a $16 million positive impact and the remaining movement driven by:

• Bank of Tianjin decreased $12 million, driven by an increase in credit provisions.

• Shanghai Rural Commercial Bank decreased $2 million, due to an increase in credit provisions.

• AMMB Holdings Berhad decreased $16million, mainly due to net interest margin contraction from a change in lending mix.

• P.T. Bank Pan Indonesia increased $8 million on underlying earnings growth.

Net foreign exchange earnings

Increased by $1 million (3%). Key factors include:

• Higher realised losses on foreign currency hedges in GTSO and Group Centre ($20 million) that offset translation gains elsewhere in the Group.

• Higher unrealised gains on foreign currency balances in IIB ($13 million).

Other

Increased by $42 million (86%) key factors include:

• $4 million positive impact due to foreign currency translation.

• The release of legacy provisions associated with the sale of Grindlay’s ($14 million).

• Gains on credit default swaps (hedging underlying exposures) in Global Loans ($19 million).

26

GROUP RESULTS

Operating Expenses

Operating Expenses
Personnel expenses Premises expenses Technology expenses Restructuring expenses Other expenses		Half Year	Full Year
			Sep 15 $M Sep 14 $M Movt 5,479 5,088 8% 922 888 4% 1,462 1,266 15% 31 113 -73% 1,465 1,405 4%
	2,764
	467
	761
	21
	753
Total cash operating expenses	4,766	4,593 4%	9,359 8,760 7%
Total full time equivalent staff (FTE)	50,152	51,243 -2%	50,152 50,328 0%
Expenses by division Australia International and Institutional Banking New Zealand Global Wealth GTSO and Group Centre			Full Year
			Sep 15 $M Sep 14 $M Movt 3,157 3,015 5% 3,616 3,275 10% 1,064 1,031 3% 975 1,004 -3% 547 435 26%
Total cash operating expenses	4,766 4,593 4%		9,359 8,760 7%

Operating expenses – September 2015 Full Year v September 2014 Full Year

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• September 2015 v September 2014

• Personnel expenses increased $391 million (8%), with $214 million (4%) due to foreign exchange translation and $177 million (3%) driven by annual salary increases and related costs.

• Premises expenses increased $34 million (4%), with $29 million (3%) driven by foreign exchange translation and $5 million (1%) due to the impact of rent increases linked to CPI.

• Technology expenses increased $196 million (15%), with $30 million (1%) due to foreign exchange translation and $166 million (13%) due to increased depreciation and amortisation on key infrastructure projects, higher data storage and software license costs and the increased use of outsourced and managed services.

• Restructuring expenses decreased $82 million (-73%), with $2 million (2%) due to foreign exchange translation and $80 million (71%) from decreased restructuring costs across all Divisions.

• Other expenses increased $60 million (4%), with $49 million (3%) due to foreign exchange translation and $11 million (1%) from higher spend related to compliance and regulatory remediation activities, partly offset by GST recoveries and the write down of intangible assets in Global Wealth in 2014.

• September 2015 v March 2015

• Personnel expenses increased $49 million (2%), with $58 million (2%) due to foreign exchange translation. Adjusting for this, Personnel expenses were broadly flat due to disciplined FTE management.

• Premises expenses increased $12 million (3%), with $7 million (2%) due to foreign exchange translation and remaining $5 million (1%) due to the impact of rent increases linked to CPI.

• Technology expenses increased $60 million (9%), with $7 million (1%) due to foreign exchange translation and $53 million (8%) driven by higher outsourced and managed services costs, increased depreciation and amortisation on key infrastructure projects as well as higher data storage and software license costs.

• Restructuring expenses increased $11 million (large), due to restructuring in the GTSO division.

• Other expenses increased $41 million (6%), with $11 million (2%) due to foreign exchange translation and $30 million (4%) from higher spend on compliance and regulatory costs and increased advertising spend, partly offset by GST recoveries.

27

GROUP RESULTS

Technology infrastructure spend[1]

Technology infrastructure spend includes expenditure that develops and enhances the Group's technology infrastructure to meet business and strategic objectives and to improve capability and efficiency.

Expensed investment spend Capitalised investment spend	Half Year Sep 15 $M Mar 15 $M Movt 135 123 10% 425 314 35%	Half Year Sep 15 $M Mar 15 $M Movt 135 123 10% 425 314 35%	Half Year Sep 15 $M Mar 15 $M Movt 135 123 10% 425 314 35%	Full Year
				Sep 15 $M Sep 14 $M Movt 258 281 -8% 739 779 -5%
	135
	425
Technology infrastructure spend	560	437	28%	997 1,060 -6%
Comprising Growth Productivity Risk and compliance Infrastructure and other		Half Year		Full Year
				Sep 15 $M Sep 14 $M Movt 446 438 2% 216 263 -18% 223 242 -8% 112 117 -4%
	242
	114
	141
	63
Technology infrastructure spend	560	437	28%	997 1,060 -6%
Technology infrastructure spend by division Australia International and Institutional Banking New Zealand Global Wealth GTSO and Group Centre		Half Year		Full Year
				Sep 15 $M Sep 14 $M Movt 294 314 -6% 252 286 -12% 67 61 10% 84 67 25% 300 332 -10%
Technology infrastructure spend	560 437 28%			997 1,060 -6%

1. Investment spend no longer includes technology infrastructure maintenance spend (Sep 14: $100 million), as infrastructure lifecycle management is considered to be part of business-asusual. There was some re-allocation between categories in the prior period to align to revised category definitions.

Digitisation is becoming central to ANZ’s business operations, reshaping how ANZ works, not just how technology enables better solutions for customers. The Group’s aim is to create a digital bank; one that allows us to stream operations such that we deliver fast, easy and innovative solutions for our customers while also reducing the operational complexity of the organisation and thereby improving productivity and reducing risk. ANZ has invested in digital across the Group, delivering multichannel platforms that have globally extensible capabilities covering aspects like employee mobility, products (GoMoney and MobilePay), security systems and more intuitive internet banking.

Australia Division continues to deliver simplification and digitisation of end-to-end customer channels, ensuring a consistent digital experience across any channel or device improving both the customer and banker experience. This is underpinned by ongoing investment in data analytics capabilities.

IIB investment focused on the multi-year development of Transaction Banking Cash Management and Global Markets capabilities, scaling and optimising infrastructure to connect with more customers and provide seamless value. Significant investment continued in risk and compliance projects to meet increasing regulatory requirements across the region.

Global Wealth has focused on the use of customer centric digital solutions and has continued to innovate, launching ‘Advice on Grow’, a tool to improve Planner performance in July and will soon be releasing ‘Insurance on Grow’.

GTSO & Group Centre has continued to invest in Payments Transformation to provide competitive payment services for our customers with a strong focus on enterprise payment processing. The Global Loan Management System will continue to further transform Wholesale Lending capabilities by standardising and simplifying our approach to loan fulfilment, servicing and management.

 September 2015 v September 2014

The decrease in investment spend reflects ongoing cost efficiencies from greater utilisation of hubs and outsourcing partners, along with the completion of some large programs of work in 2014 including HR Foundation and Transaction Banking capabilities. Significant investment continued in Growth capabilities including Multi Channel Platform, Next Best Conversation and Asia Payments.

 September 2015 v March 2015

During the September 2015 half, the Group continued to invest strongly with spend of $560 million. The increase in the September 2015 half was driven by Australia (Small Business Origination System and anz.com redesign), IIB (China Expansion and Myanmar Business Mobilisation), GTSO and Group Centre (Payments Transformation, data management and credit decisioning platform).

28

GROUP RESULTS

Credit risk

Credit impairment charge/(release) Individual credit impairment charge Collective credit impairment charge/(release)	Half Year Sep 15 $M Mar 15 $M Movt 655 455 44% 40 55 -27%	Half Year Sep 15 $M Mar 15 $M Movt 655 455 44% 40 55 -27%	Full Year Sep 15 $M Sep 14 $M Movt 1,110 1,144 -3% 95 (155) large
Total credit impairment charge	695 510 36%		1,205 989 22%
Credit impairment charge/(release) Australia International and Institutional Banking New Zealand Global Wealth GTSO and Group Centre		Half Year	Full Year
			Sep 15 $M Sep 14 $M Movt 853 818 4% 295 216 37% 55 (8) large - (2) -100% 2 (35) large
	458
	197
	36
	1
	3
Total credit impairment charge	695	510 36%	1,205 989 22%

Individual credit impairment charge

Individual credit impairment charge
Individual credit impairment charge by division Australia International and Institutional Banking New Zealand Global Wealth GTSO and Group Centre	Half Year Sep 15 $M Mar 15 $M Movt 427 334 28% 191 100 91% 32 22 45% 1 (1) large 4 - n/a			Full Year
				Sep 15 $M Sep 14 $M Movt 761 787 -3% 291 290 0% 54 63 -14% - 1 -100% 4 3 33%
	427
	191
	32
	1
	4
Total individual credit impairment charge	655	455	44%	1,110 1,144 -3%
New and increased individual credit impairments Australia International and Institutional Banking New Zealand Global Wealth GTSO and Group Centre		Half Year		Full Year
				Sep 15 $M Sep 14 $M Movt 1,103 1,114 -1% 488 446 9% 190 250 -24% 1 4 -75% 1 1 0%
New and increased individual credit impairments	961 822 17%			1,783 1,815 -2%
Recoveries and write-backs Australia International and Institutional Banking New Zealand Global Wealth GTSO and Group Centre	(146) (196) -26% (95) (102) -7% (68) (68) 0% - (1) -100% 3 - n/a			(342) (327) 5% (197) (156) 26% (136) (187) -27% (1) (3) -67% 3 2 50%
Recoveries and write-backs	(306) (367) -17%			(673) (671) 0%
Total individual credit impairment charge	655 455 44%			1,110 1,144 -3%

29

GROUP RESULTS

Individual credit impairment charge (cont’d)

 September 2015 v September 2014

The individual credit impairment charge decreased $34 million (-3%) primarily due to lower new impairment charges in New Zealand and to a lesser extent Australia, partly offset by an increase in IIB. Recoveries and write-backs remained consistent year on year.

 September 2015 v March 2015

The individual credit impairment charge increased by $200 million (44%). The increase was driven by lower recoveries and write-backs in Australia in Corporate and Commercial Banking, and higher charges in IIB in Retail Asia Pacific, Global Loans, and Global Transaction Banking, together with increased new provisions in New Zealand.

Collective credit impairment charge

Collective credit impairment charge/(release) by source Lending growth Risk profile Portfolio mix Economic cycle and concentration risk adjustment	Half Year Sep 15 $M Mar 15 $M Movt 50 54 -7% 65 5 large (3) 3 large (72) (7) large	Full Year
		Sep 15 $M Sep 14 $M Movt 104 146 -29% 70 (232) large - (20) -100% (79) (49) 61%
Total collective credit impairment charge/(release)	40 55 -27%	95 (155) large

Collective credit impairment charge/(release) by division Australia International and Institutional Banking New Zealand Global Wealth GTSO and Group Centre	Half Year Sep 15 $M Mar 15 $M Movt 31 61 -49% 6 (2) large 4 (3) large - - n/a (1) (1) 0%	Full Year
		Sep 15 $M Sep 14 $M Movt 92 31 large 4 (74) large 1 (71) large - (3) -100% (2) (38) -95%
Total collective credit impairment charge/(release)	40 55 -27%	95 (155) large

 September 2015 v September 2014

The collective credit impairment charge increased by $250 million compared to the prior year. The $155 million release in September 2014 was attributable to customer credit rating upgrades in IIB and New Zealand divisions as well as net decreases in the economic cycle overlay provisions. The $95 million charge in September 2015 was attributable to customer credit rating downgrades for a few large IIB customers and lending growth in Australia division, partially offset by associated economic cycle overlay releases.

 September 2015 v March 2015

The collective credit impairment charge decreased by $15 million compared to the prior half. The $40 million charge in the September half was primarily driven by lending growth in Australia division, partially offset by seasonal improvements in retail lending delinquencies. In the New Zealand division, lending growth contributed to increased impairment charges. In IIB, increased impairment charges were attributable to customer credit rating downgrades of a few large IIB customers offset by releases from the associated economic cycle overlay provision.

Provision for credit impairment balance

Provision for credit impairment balance
Collective provision1 Individual provision	As at Sep 15 $M Mar 15 $M Sep 14 $M 2,956 2,914 2,757 1,061 1,114 1,176	Movement
		Sep 15 v. Mar 15 Sep 15 v. Sep 14 1% 7% -5% -10%
Total provision for credit impairment	4,017 4,028 3,933	0% 2%

1. The collective provision includes amounts for off-balance sheet credit exposures of $677 million at 30 Sep 2015 (Mar 2015: $646 million; Sep 2014: $613 million). The impact on the income statement for the full year ended 30 September 2015 was a $27 million charge (Mar 2015 half: $7 million charge; Sep 2014 full year: $1 million charge)

30

GROUP RESULTS

Gross Impaired Assets

Impaired loans Restructured items Non-performing commitments and contingencies	As at Sep 15 $M Mar 15 $M Sep 14 $M 2,441 2,466 2,682 184 146 67 94 96 140	Movement
		Sep 15 v. Mar 15 Sep 15 v. Sep 14 -1% -9% 26% large -2% -33%
Gross impaired assets Individual provisions Impaired loans Non-performing commitments and contingencies	2,719 2,708 2,889 (1,038) (1,081) (1,130) (23) (33) (46)	0% -6% -4% -8% -30% -50%
Net impaired assets	1,658 1,594 1,713	4% -3%
Gross impaired assets by division Australia International and Institutional Banking New Zealand Global Wealth	1,193 1,245 1,253 1,183 1,021 1,093 338 434 532 5 8 11	-4% -5% 16% 8% -22% -36% -38% -55%
Gross impaired assets	2,719 2,708 2,889	0% -6%
Gross impaired assets by size of exposure Less than $10 million $10 million to $100 million Greater than $100 million	1,748 1,903 1,896 708 607 683 263 198 310	-8% -8% 17% 4% 33% -15%
Gross impaired assets	2,719 2,708 2,889	0% -6%

 September 2015 v September 2014

Gross impaired assets decreased $170 million (6%) primarily driven by the continued workout of the impaired asset portfolio combined with lower levels of new impairment. The Group has an individual provision coverage ratio on impaired assets of 39.0% at 30 September 2015 down from 40.7% at 30 September 2014.

 September 2015 v March 2015

Gross impaired assets remain relatively stable compared to the March 2015 half with decreases in Australia division and New Zealand division gross impaired assets offset by increases in IIB. The Group has an individual provision coverage ratio on impaired assets of 39.0% at 30 September 2015, down from 41.1% at 31 March 2015.

New Impaired Assets

Impaired loans Restructured items Non-performing commitments and contingencies	Half Year Sep 15 $M Mar 15 $M Movt 1,707 1,141 50% 4 26 -85% 72 30 large	Full Year
		Sep 15 $M Sep 14 $M Movt 2,848 2,734 4% 30 17 76% 102 117 -13%
Total new impaired assets	1,783 1,197 49%	2,980 2,868 4%
New impaired assets by division Australia International and Institutional Banking New Zealand Global Wealth	840 778 8% 740 236 large 203 165 23% - 18 -100%	1,618 1,588 2% 976 699 40% 368 571 -36% 18 10 80%
Total new impaired assets	1,783 1,197 49%	2,980 2,868 4%

• September 2015 v September 2014

New impaired assets increased $112 million (4%) driven by an increase in IIB due to the downgrade of a few large customers. This was partially offset by New Zealand with decreases in the retail and commercial portfolios.

 September 15 v March 2015

New impaired assets increased $586 million (49%) predominantly driven by the downgrade of few large customers in IIB along with more moderate increases in impairments in the Australia retail and New Zealand commercial portfolios.

31

GROUP RESULTS

Ageing analysis of net loans and advances that are past due but not impaired1 1-5 days 6-29 days 30-59 days 60-89 days >90 days	As at Sep 15 $M Mar 15 $M Sep 14 $M 2,621 3,323 3,082 5,235 5,271 4,559 1,674 2,069 1,624 1,050 1,160 1,005 2,378 2,248 1,982	Movement
		Sep 15 v. Mar 15 Sep 15 v. Sep 14 -21% -15% -1% 15% -19% 3% -9% 4% 6% 20%
Total	12,958 14,071 12,252	-8% 6%

1. A policy change was implemented during FY15 whereby the Group changed the criteria for including past due loans attributable to hardship in the ageing analysis. Comparative information has not been restated.

 September 2015 v September 2014

The 90 days past due but not impaired increased by 20% primarily within Australia division due to a change in the management and reporting of the 90 days past due mortgages book in line with regulatory requirements, along with some deterioration in Western Australia and Queensland.

 September 2015 v March 2015

The 90 days past due but not impaired increased by 6% primarily within Australia division due to a change in the management and reporting of the 90 days past due mortgages book in line with regulatory requirements, along with some deterioration in Western Australia and Queensland.

Income tax expense

Income tax expense on cash profit Effective tax rate (cash profit)		Half Year

• September 2015 v September 2014

The effective tax rate decreased by 0.1%. The decrease was predominantly due to a favourable Global Wealth tax consolidation benefit and higher earnings from equity accounted associates offset by a release of tax provisions no longer required in 2014.

 September 2015 v March 2015

The effective tax rate decreased by 0.3%. The decrease was predominantly due to a favourable Global Wealth tax consolidation benefit in the September half. This was partially offset by decreased offshore earnings that have a lower average tax rate in the September half.

32

GROUP RESULTS

Impact of foreign exchange rate movements

The following tables present the Group’s cash profit results and net loans and advances neutralised for the impact of foreign exchange translation. Comparative data has been adjusted to remove the translation impact of foreign exchange movements by retranslating prior period comparatives at current period foreign exchange rates.

Cash Profit - September 2015 Full Year vs September 2014 Full Year

Net interest income Other operating income	Full Year Actual FX unadjusted FX impact FX adjusted Sep 15 $M Sep 14 $M Sep 14 $M Sep 14 $M 14,616 13,797 276 14,073 5,902 5,781 212 5,993	Full Year Actual FX unadjusted FX impact FX adjusted Sep 15 $M Sep 14 $M Sep 14 $M Sep 14 $M 14,616 13,797 276 14,073 5,902 5,781 212 5,993	Movement
			FX unadjusted FX impact FX adjusted
			Sep 15 v. Sep 14 Sep 15 v. Sep 14 Sep 15 v. Sep 14 6% 2% 4% 2% 4% -2%
Operating income Operating expenses	20,518 19,578 488 20,066 (9,359) (8,760) (324) (9,084)		5% 3% 2% 7% 4% 3%
Profit before credit impairment and income tax Credit impairment charge	11,159 10,818 164 10,982 (1,205) (989) (17) (1,006)		3% 1% 2% 22% 2% 20%
Profit before income tax Income tax expense Non-controlling interests	9,954 9,829 147 9,976 (2,724) (2,700) (33) (2,733) (14) (12) (1) (13)		1% 1% 0% 1% 1% 0% 17% 9% 8%
Cash profit	7,216 7,117	113 7,230	1% 1% 0%

Cash Profit by Division and Geography - September 2015 Full Year vs September 2014 Full Year

Australia International and Institutional Banking New Zealand Global Wealth GTSO and Group Centre	Full Year	Movement
		FX unadjusted FX impact FX adjusted
		Sep 15 v. Sep 14 Sep 15 v. Sep 14 Sep 15 v. Sep 14 7% 0% 7% -2% 5% -7% 5% 2% 3% 11% 1% 10% 70% 30% 39%
Cash profit by division	7,216 7,117 113 7,230	1% 1% 0%
Australia Asia Pacific, Europe & America New Zealand	4,416 4,362 (50) 4,312 1,235 1,216 141 1,357 1,565 1,539 22 1,561	1% -1% 2% 2% 11% -9% 2% 2% 0%
Cash profit by geography	7,216 7,117 113 7,230	1% 1% 0%

Net loans and advances by division and geography - September 2015 Full Year vs September 2014 Full Year

	As at Actual FX unadjusted FX impact FX adjusted Sep 15 $B Sep 14 $B Sep 14 $B Sep 14 $B	Movement
		FX unadjusted FX impact FX adjusted
		Sep 15 v. Sep 14 Sep 15 v. Sep 14 Sep 15 v. Sep 14 9% 0% 9%
Australia	313.7 287.8 - 287.8
International and Institutional Banking	154.7 142.0 16.6 158.6	9% 11% -2%
New Zealand	95.2 86.1 1.7 87.8	11% 3% 8%
Global Wealth	7.1 6.4 0.4 6.8	11% 6% 5%
GTSO and Group Centre	(0.5) (0.5) - (0.5)	0% 0% 0%
Net loans and advances by division1	570.2 521.8 18.7 540.5	9% 3% 6%
Australia Asia Pacific, Europe & America New Zealand	381.2 348.5 - 348.5	9% 0% 9%
	85.1 79.2 16.9 96.1	7% 18% -11%
	104.0 94.0 1.9 95.9	11% 3% 8%
Net loans and advances by geography1	570.2 521.8 18.7 540.5	9% 3% 6%

1. Loans & advances as at 30 September 2015 include assets classified as held for sale.

33

GROUP RESULTS

Cash Profit - September 2015 Half Year vs March 2015 Half Year

Net interest income Other operating income	**Half Year **	**Half Year **	Movement
			FX unadjusted FX impact FX adjusted
			Sep 15 v. Mar 15 Sep 15 v. Mar 15 Sep 15 v. Mar 15 5% 1% 4% -6% 1% -7%
Operating income Operating expenses	10,333 10,185 81 10,266 (4,766) (4,593) (84) (4,677)		1% 0% 1% 4% 2% 2%
Profit before credit impairment and income tax Credit impairment charge	5,567 5,592 (3) 5,589 (695) (510) (2) (512)		0% 0% 0% 36% 0% 36%
Profit before income tax Income tax expense Non-controlling interests	4,872 5,082 (5) 5,077 (1,326) (1,398) 11 (1,387) (6) (8) - (8)		-4% 0% -4% -5% -1% -4% -25% 0% -25%
Cash profit	3,540 3,676	6 3,682	-4% 0% -4%

Cash Profit by Division and Geography - September 2015 Half Year vs March 2015 Half Year

Australia International and Institutional Banking New Zealand Global Wealth GTSO and Group Centre	Half Year Movement Actual FX unadjusted FX impact FX adjusted FX unadjusted FX impact FX adjusted Sep 15 $M Mar 15 $M Mar 15 $M Mar 15 $M Sep 15 v. Mar 15 Sep 15 v. Mar 15 Sep 15 v. Mar 15 1,672 1,602 - 1,602 4% 0% 4% 1,205 1,459 50 1,509 -17% 3% -20% 561 566 (10) 556 -1% -2% 1% 342 259 (1) 258 32% -1% 33% (240) (210) (33) (243) 14% 16% -1%	Half Year Movement Actual FX unadjusted FX impact FX adjusted FX unadjusted FX impact FX adjusted Sep 15 $M Mar 15 $M Mar 15 $M Mar 15 $M Sep 15 v. Mar 15 Sep 15 v. Mar 15 Sep 15 v. Mar 15 1,672 1,602 - 1,602 4% 0% 4% 1,205 1,459 50 1,509 -17% 3% -20% 561 566 (10) 556 -1% -2% 1% 342 259 (1) 258 32% -1% 33% (240) (210) (33) (243) 14% 16% -1%
Cash profit by division	3,540 3,676	6 3,682 -4% 0% -4%
Australia Asia Pacific, Europe & America New Zealand	2,269 2,147 492 743 779 786	(29) 2,118 6% -1% 7% 49 792 -34% 4% -38% (14) 772 -1% -2% 1%
Cash profit by geography	3,540 3,676	6 3,682 -4% 0% -4%

Net loans and advances by division and geography - September 2015 Half Year vs March 2015 Half Year

	As at Actual FX unadjusted FX impact FX adjusted Sep 15 $M Mar 15 $M Mar 15 $M Mar 15 $M	Movement
		FX unadjusted FX impact FX adjusted
		Sep 15 v. Mar 15 Sep 15 v. Mar 15 Sep 15 v. Mar 15 5% 0% 5%
Australia	313.7 297.6 - 297.6
International and Institutional Banking	154.7 156.5 5.6 162.1	-1% 4% -5%
New Zealand	95.2 97.7 (7.2) 90.5	-3% -8% 5%
Global Wealth	7.1 6.9 - 6.9	3% 0% 3%
GTSO and Group Centre	(0.5) (0.5) - (0.5)	0% n/a 0%
Net loans and advances by division1	570.2 558.2 (1.6) 556.6	2% 0% 2%
Australia Asia Pacific, Europe & America New Zealand	381.2 362.8 0.0 362.8	5% 0% 5%
	85.1 88.4 6.3 94.6	-4% 6% -10%
	104.0 107.0 (7.9) 99.1	-3% -8% 5%
Net loans and advances by geography1	570.2 558.2 (1.6) 556.6	2% 0% 2%

1. Loans & advances as at 30 September 2015 include assets classified as held for sale.

34

GROUP RESULTS

Earnings related hedges

The Group has taken out economic hedges against larger foreign exchange denominated revenue and expense streams (primarily New Zealand Dollar, US Dollar and US Dollar correlated). New Zealand dollar exposure relates to the New Zealand geography and USD exposure relates to APEA. Details of these hedges are set out below.

NZD Economic hedges Net open NZD position (notional principal)1 Amount taken to income (pre-tax statutory basis)2 Amount taken to income (pre-tax cash basis)3 USD Economic hedges Net open USD position (notional principal)1 Amount taken to income (pre-tax statutory basis)2 Amount taken to income (pre-tax cash basis)3	Half Year Full Year
	Sep 15 $M Mar 15 $M Sep 15 $M Sep 14 $M 3,567 2,375 3,567 2,042 168 (220) (52) 3 (34) (51) (85) (149) 352 823 352 797 (41) (129) (170) (30) (92) (46) (138) (19)

1. Value in AUD at contracted rate. 2.

• Unrealised valuation movement plus realised revenue from closed hedges.

• 3.

Realised revenue from closed hedges.

As at 30 September 2015, the following hedges are in place to partially hedge future earnings against adverse movements in exchange rates:

• NZD 3.9 billion at a forward rate of approximately NZD 1.09 / AUD.

• USD 0.3 billion at a forward rate of approximately USD 0.85 / AUD.

During the September 2015 full year:

• NZD 1.8 billion of economic hedges matured and a realised loss of $85 million (pre-tax) was recorded in cash profit.

• USD 0.8 billion of economic hedges matured and a realised loss of $138 million (pre-tax) was recorded in cash profit.

• An unrealised gain of $1 million (pre-tax) on the outstanding NZD and USD economic hedges was recorded in the statutory income statement during the year. When determining cash profit, this unrealised gain has been treated as an adjustment to statutory profit as these are hedges of future NZD and USD revenues.

During the September 2015 half:

• NZD 1.0 billion of economic hedges matured and a realised loss of $34 million (pre-tax) was recorded in cash profit.

• USD 0.4 billion of economic hedges matured and a realised loss of $92 million (pre-tax) was recorded in cash profit.

• An unrealised gain of $253 million (pre-tax) on the outstanding NZD and USD economic hedges was recorded in the statutory income statement during the half. When determining cash profit, this unrealised gain has been treated as an adjustment to statutory profit as these are hedges of future NZD and USD revenue.

Earnings per share

Earnings per share
Cash earnings per share (cents)1 Basic Diluted Cash weighted average number of ordinary shares (M)2 Basic Diluted Cash profit ($M) Preference share dividends ($M)	Half Year Sep 15 Mar 15 Movt 126.8 133.6 -5% 119.8 129.9 -8% 2,792.7 2,750.0 2% 3,077.4 2,926.8 5% 3,540 3,676 -4% - (1) -100%	Full Year
		Sep 15 Sep 14 Movt 260.3 260.3 0% 247.0 250.6 -1% 2,771.4 2,732.2 1% 3,032.2 2,934.4 3% 7,216 7,117 1% (1) (6) -83%
Cash profit less preference share dividends ($M)	3,540 3,675 -4%	7,215 7,111 1%
Diluted cash profit less preference share dividends ($M)	3,687 3,802 -3%	7,489 7,354 2%

1. As a result of the Institutional share placement on 13 August 2015 and the Retail share purchase plan on 17 September 2015 Basic cash earnings per share was reduced by 1.0 cent for the half year ended 30 September 2015 and1.2 cents for the full year ended 30 September 2015; Diluted cash earnings per share was reduced by 0.9 cents for the half year ended 30 September 2015 and1.0 cent for the full year ended 30 September 2015.

2. Includes Treasury shares held in Global Wealth as the associated gains and losses are included in cash profit.

35

GROUP RESULTS

Dividends

Dividend per ordinary share (cents) Interim (fully franked) Final (fully franked)1	Half Year Sep 15 Mar 15 Movt - 86 n/a 95 - n/a	Full Year
		Sep 15 Sep 14 Movt 86 83 4% 95 95 0%
	-
	95
Total (fully franked) Ordinary share dividends used in payout ratio ($M)2 Cash profit ($M) Less: Preference share dividends paid Ordinary share dividend payout ratio (cash basis)2	95	181 178 2% 5,137 4,897 5% 7,216 7,117 1% (1) (6) -83% 71.2% 68.9%
	2,758
	3,540
	-

1. 2015 final dividend is proposed.

2.

Dividend payout ratio is calculated using proposed 2015 final dividend of $2,758 million, which is based on the forecast number of ordinary shares on issue at the dividend record date. Dividend payout ratios for the March 2015 half and September 2014 full year are calculated using actual dividend paid of $2,379 million and $4,897 million respectively. Dividend payout ratio is calculated by adjusting profit attributable to shareholders of the company by the amount of preference share dividends paid.

The Directors propose that a final dividend of 95 cents be paid on each eligible fully paid ANZ ordinary share on 16 December 2015. The proposed 2015 final dividend will be fully franked for Australian tax purposes, and New Zealand imputation credits of NZ 11 cents per ordinary share will also be attached.

Economic profit

Statutory profit attributable to shareholders of the Company Adjustments between statutory profit and cash profit	Half Year Sep 15 $M Mar 15 $M Movt 3,987 3,506 14% (447) 170 large	Full Year
		Sep 15 $M Sep 14 $M Movt 7,493 7,271 3% (277) (154) 80%
Cash Profit Economic credit cost adjustment Imputation credits	3,540 3,676 -4% (203) (290) -30% 663 657 1%	7,216 7,117 1% (493) (554) -11% 1,320 1,244 6%
Economic return Cost of capital	4,000 4,043 -1% (2,916) (2,746) 6%	8,043 7,807 3% (5,662) (5,057) 12%
Economic profit	1,084 1,297 -16%	2,381 2,750 -13%

Economic profit is a risk adjusted profit measure used to evaluate business unit performance and is considered in determining the variable component of remuneration packages. This is used for internal management purposes and is not subject to audit by the external auditor.

Economic profit is calculated via a series of adjustments to cash profit. The economic credit cost adjustment replaces the actual credit loss charge with internal expected loss based on the average loss per annum on the portfolio over an economic cycle. The benefit of imputation credits to our shareholders is recognised, measured at 70% of Australian tax. The cost of capital is a major component of economic profit. At an ANZ Group level, this is calculated using average ordinary shareholders’ equity (excluding non-controlling interests), multiplied by a cost of capital rate (11% - as has been consistently applied across reporting periods) plus the dividend on preference shares. At a business unit level, capital is allocated based on economic capital, whereby higher risk businesses attract higher levels of capital. This method is designed to help drive appropriate risk management and ensure business returns align with the relevant risk. Key risks covered include credit risk, operating risk, market risk and other risks.

Economic profit decreased 13% on the prior year due to higher capital levels being offset by an increase in cash profit of 1% and higher imputation credits.

Economic profit decreased 16% on the prior half due to a decrease in cash profit of 4% and higher capital levels.

36

GROUP RESULTS

Condensed balance sheet

Condensed balance sheet
Assets Cash / Settlement balances owed to ANZ / Collateral paid Trading and available-for-sale assets Derivative financial instruments Net loans and advances1 Investment backing policy liabilities Other	As at Sep 15 $B Mar 15 $B Sep 14 $B 82.5 79.3 58.3 92.7 89.7 80.6 85.6 73.6 56.4 570.2 558.2 521.8 34.8 36.5 33.6 24.1 22.8 21.4	Movement
		Sep 15 v. Mar 15 Sep 15 v. Sep 14 4% 42% 3% 15% 16% 52% 2% 9% -5% 4% 6% 13%
Total assets	889.9 860.1 772.1	3% 15%
Liabilities Settlement balances owed by ANZ / Collateral received Deposits and other borrowings Derivative financial instruments Debt issuances Policy liabilities and external unit holder liabilities Other	19.1 12.6 15.7 570.8 567.2 510.1 81.3 73.2 52.9 93.7 85.7 80.1 38.7 40.3 37.7 28.9 29.0 26.3	52% 22% 1% 12% 11% 54% 9% 17% -4% 3% 0% 10%
Total liabilities	832.5 808.0 722.8	3% 15%
Total equity	57.4 52.1 49.3	10% 16%

1. Loans & advances as at 30 September 2015 include assets classified as held for sale.

• September 2015 v September 2014

• Cash, settlement balances and collateral paid increased by $24 billion, with $7 billion due to foreign exchange translation. The remaining increase was primarily driven by increased short term deposits with the US Federal Reserve and Bank of England, following the introduction of Basel 3 liquidity risk standards in Australia on 1 January 2015, and higher collateral paid on derivative liabilities with collateralised counterparties.

• Trading and available-for-sale assets increased $12 billion, with $5 billion due to foreign exchange translation. The increase was primarily driven by growth in the size of the Liquidity portfolio influenced by new liquidity requirements.

• Derivative financial instruments increased on higher customer demand for interest rate hedging products in light of low interest rates, along with increased customer demand for foreign exchange spot and forward products driven by volatility in the Asia market. Net derivative financial instruments increased by $1 billion primarily driven by movements in foreign exchange and interest rates, along with the impact of foreign exchange translation.

• Net loans and advances increased $48 billion, with $19 billion due to foreign exchange rate translation, $26 billion growth in Australia division on home loan and non-housing term loans, a $7 billion increase in New Zealand home loans and non-housing term loans and a $3 billion decrease in IIB term loans.

• Deposits and other borrowings increased $60 billion, with $32 billion due to foreign exchange rate translation impacts, $31 billion increase in interest bearing deposits, $17 billion growth in Group Treasury certificates of deposit and commercial paper, and a $17 billion decrease in term deposits composed of $10 billion decrease in IIB and $8 billion decrease in Australia division partially offset by $1 billion increase in New Zealand.

• Total equity increased $8 billion primarily due to $7.5 billion of profits generated over the year, $3 billion from an institutional placement and retail share placement plan, and other comprehensive income of $2 billion, offset by the payment (net of reinvestment) of the 2014 final and 2015 interim dividends of $4 billion.

• September 2015 v March 2015

• Net loans and advances increased $12 billion, with $2 billion due to foreign exchange translation, $13 billion growth in Australia division home loans, growth of $5 billion in New Zealand home loans and non-housing term loans and a $7 billion decrease in IIB term loans.

• Derivative financial instruments increased on higher customer demand for interest rate hedging products in light of low interest rates, along with increased customer demand for foreign exchange spot and forward products driven by volatility in the Asia market. Net derivative financial instruments increased by $4 billion primarily driven by movements in foreign exchange and interest rates, along with the impact of foreign exchange translation.

• Debt issuances increased $8 billion mainly due to increased number of new long term trades and movements in foreign currency translation.

• Total equity increased by $5 billion primarily due to $4 billion of profits generated over the half year, $3 billion from an institutional placement and retail share placement plan and other comprehensive income of $1 billion, offset by the payment (net of reinvestment) of the 2015 interim dividends of $2 billion.

37

GROUP RESULTS

Liquidity risk

Liquidity risk is the risk that the Group is unable to meet its payment obligations as they fall due, including repaying depositors or maturing wholesale debt, or that the Group has insufficient capacity to fund increases in assets. The timing mismatch of cash flows and the related liquidity risk is inherent in all banking operations and is closely monitored by the Group and managed in accordance with the risk appetite set by the Board.

The Group’s approach to liquidity risk management incorporates two key components:

• Scenario modelling of funding sources

• ANZ’s liquidity risk appetite is defined by the ability to meet a range of regulatory and internal liquidity metrics mandated by the Board. The metrics cover a range of scenarios of varying duration and level of severity. This framework:

• Provides protection against shorter-term extreme market dislocations and stresses.

• Maintains structural strength in the balance sheet by ensuring an appropriate amount of longer-term assets are funded with longer-term funding.

• Ensures no undue timing concentrations exist in the Group’s funding profile.

A key component of this framework is the Liquidity Coverage Ratio (LCR) which was implemented in Australia on 1 January 2015. The LCR is a severe short term liquidity stress scenario, introduced as part of the Basel 3 international framework for liquidity risk measurement, standards and monitoring. As part of meeting the LCR requirements, ANZ has a Committed Liquidity Facility (CLF) with the Reserve Bank of Australia (RBA). The CLF has been established as a solution to a High Quality Liquid Asset (HQLA) shortfall in the Australian marketplace and provides an alternative form of RBA-qualifying liquid assets. The total amount of the CLF available to a qualifying ADI is set annually by APRA.

• Liquid assets

The Group holds a portfolio of high quality unencumbered liquid assets in order to protect the Group’s liquidity position in a severely stressed environment, as well as to meet regulatory requirements. High quality liquid assets comprise three categories, with the definitions consistent with Basel 3 LCR:

• Highest-quality liquid assets (HQLA1): Cash, highest credit quality government, central bank or public sector securities eligible for repurchase with central banks to provide same-day liquidity.

• High-quality liquid assets (HQLA2): High credit quality government, central bank or public sector securities, high quality corporate debt securities and high quality covered bonds eligible for repurchase with central banks to provide same-day liquidity.

• Alternative liquid assets (ALA): Assets qualifying as collateral for the CLF and eligible securities listed by the Reserve Bank of New Zealand (RBNZ).

The Group monitors and manages the composition of liquid assets to ensure diversification by asset class, counterparty, currency and tenor. Minimum levels of liquid assets held are set annually based on a range of ANZ specific and general market liquidity stress scenarios such that potential cash flow obligations can be met over the short to medium term, and holdings are appropriate to existing and future business activities, regulatory requirements and in line with the approved risk appetite.

Market Values Post Discount1 HQLA12 HQLA2 Internal Residential Mortgage Backed Securities (Australia) Internal Residential Mortgage Backed Securities (New Zealand) Other ALA3	As at Sep 15 $B Mar 15 $B Sep 14 $B 115.4 103.8 81.0 3.2 3.0 2.7 43.5 43.5 43.5 5.5 5.6 5.1 16.9 17.1 17.3	Movement
		Sep 15 v. Mar 15 Sep 15 v. Sep 14 11% 42% 7% 19% 0% 0% -2% 8% -1% -2%
Total Liquid Assets	184.5 173.0 149.6	7% 23%
Cash flows modelled under stress scenario Cash outflows2,4 Cash inflows4	175.2 174.8 157.1 24.4 29.4 22.4	0% 12% -17% 9%
Net cash outflows	150.8 145.4 134.7	4% 12%
Liquidity Coverage Ratio (%)5	122% 119% 111%

1. Market value post discount as defined in APRA Prudential Standard APS 210 Liquidity.

2. RBA open-repo arrangement netted down by exchange settlement account cash balance. 3.

• Comprised of assets qualifying as collateral for the CLF, excluding internal RMBS, up to approved facility limit; and any liquid assets contained in the RBNZ's Liquidity Policy - Annex: Liquidity Assets - Prudential Supervision Department Document BS13A12.

4. Derivative cash flows are included on a net basis. 5.

All currency Group LCR.

38

GROUP RESULTS

Funding

ANZ targets a diversified funding base, avoiding undue concentrations by investor type, maturity, market source and currency.

$18.8 billion of term wholesale debt (with a remaining term greater than one year as at 30 September 2015) was issued during the year ended 30 September 2015 (Sep 2014: 23.9 billion). The weighted average tenor of new term debt was 4.9 years (2014: 4.9 years). Furthermore, a $3.2 billion Institutional Share Placement and Share Purchase Plan and a $1.5 billion Additional Tier 1 Capital issue took place during the financial year.

The following tables show the Group’s total funding composition: Customer deposits and other liabilities1 Australia International and Institutional Banking New Zealand Global Wealth GTSO and Group Centre1	As at Sep 15 $M Mar 15 $M Sep 14 $M 169,280 162,587 160,683 202,495 201,124 183,126 59,703 60,293 51,360 18,467 17,357 13,844 (5,361) (5,214) (5,294)	Movement
		Sep 15 v. Mar 15 Sep 15 v. Sep 14 4% 5% 1% 11% -1% 16% 6% 33% 3% 1%
Customer deposits Other funding liabilities2	444,584 436,147 403,719 14,346 12,315 14,502	2% 10% 16% -1%
Total customer liabilities (funding)	458,930 448,462 418,221	2% 10%
Wholesale funding3 Debt issuances4 Subordinated debt Certificates of deposit Commercial paper Other wholesale borrowings5,6	93,347 84,859 79,291 17,009 16,463 13,607 63,446 59,646 52,754 22,989 22,729 15,152 44,556 53,625 42,460	10% 18% 3% 25% 6% 20% 1% 52% -17% 5%
Total wholesale funding	241,347 237,322 203,264	2% 19%
Shareholders' Equity (excl. preference shares)	57,353 52,051 48,413	10% 18%
Total Funding	757,630 737,835 669,898	3% 13%
Funded Assets Other short term assets & trade finance assets7 Liquids6	As at Sep 15 $M Mar 15 $M Sep 14 $M 78,879 87,755 74,925 135,496 123,835 100,951	Movement
		Sep 15 v. Mar 15 Sep 15 v. Sep 14 -10% 5% 9% 34%
Short term funded assets Lending & fixed assets8	214,375 211,590 175,876 543,255 526,245 494,022	1% 22% 3% 10%
Total Funded Assets	757,630 737,835 669,898	3% 13%
Funding Liabilities3,4,6 Other short term liabilities Short term funding Term funding < 12 months Other customer and central bank deposits1,9	27,863 30,858 22,676 59,850 60,394 46,466 41,549 31,860 23,888 88,288 101,223 89,825	-10% 23% -1% 29% 30% 74% -13% -2%
Total short term funding liabilities	217,550 224,335 182,855	-3% 19%
Stable customer deposits1,10 Term funding > 12 months Shareholders' equity and hybrid debt	387,988 370,331 347,237 87,316 83,665 84,519 64,776 59,504 55,287	5% 12% 4% 3% 9% 17%
Total Stable Funding	540,080 513,500 487,043	5% 11%
Total Funding	757,630 737,835 669,898	3% 13%

1. Includes term deposits, other deposits and an adjustment recognised in Group Centre to eliminate Global Wealth investments in ANZ deposit products.

2. Includes interest accruals, payables and other liabilities, provisions and net tax provisions, excluding other liabilities in Global Wealth.

3. Excludes liability for acceptances as they do not provide net funding.

4.

5.

Excludes term debt issued externally by Global Wealth.

Includes borrowings from banks, net derivative balances, special purpose vehicles, other borrowings and Euro Trust securities (preference shares). The Euro Trust Securities were bought back by ANZ for cash at face value and cancelled on 15 December 2014.

6. RBA open-repo arrangement netted down by the exchange settlement account cash balance.

7.

Includes short-dated assets such as trading securities, available-for-sale securities, trade dated assets and trade finance loans. 8. Excludes trade finance loans.

9.

Total customer liabilities (funding) plus Central Bank deposits less Stable customer deposits.

10.

• Stable customer deposits represent operational type deposits or those sourced from retail / business / corporate customers and the stable component of Other funding liabilities.

39

GROUP RESULTS

Capital Management

Capital Ratios Common Equity Tier 1 Tier 1 Total capital		As	at
			Internationally Comparable Basel 31
			Sep 15 Mar 15 Sep 14 13.2% 12.1% 12.5% 15.3% 14.4% 14.8% 17.8% 16.8% 17.2%
Risk weighted assets ($B)	401.9	386.9	332.1 319.3 294.0

1. Internationally Comparable methodology aligns with APRA’s information paper entitled International Capital Comparison Study (13 July 2015). The March 2015 and September 2014 comparatives have been restated to align with this methodology.

APRA Basel 3 Common Equity Tier 1 (CET1) – September 2015 v March 2015

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1. Capital Deductions represents the movement in retained earnings in deconsolidated entities, capitalised software and other intangibles in the period. 2.

2. 28.6 million ordinary shares were issued under the Dividend Reinvestment Plan and Bonus Option Plan for the 2015 interim dividend.

4. 108.1 million ordinary shares were issued under the Institutional share placement and the Retail share purchase plan.

5. September 2015 v September 2014

ANZ’s CET1 ratio increased 80 bps to 9.6% in the year to September 2015. Key drivers of the CET1 ratio movement were:

• Net organic capital generation of 130 bps or $4.6 billion driven by cash profit of $7.2 billion, partially offset by RWA growth and other business capital deductions.

• Payment of the September 2014 Final Dividend and March 2015 Interim Dividend (net of shares issued under the DRP) reduced the CET1 ratio by 104 bps.

• Other impacts of -26 bps were mainly due to increased Operational Risk RWA (-12 bps) primarily as a result of APRA’s accreditation of ANZ’s new Operational Risk Measurement System (ORMS) in September 2015, repayment of the first tranche of debt ($405 million) issued by ANZ Wealth Australia Limited (ANZWA) in June 2015 (-11 bps) and other net impacts from RWA measurement changes, movement in non-cash earnings and net foreign currency translation.

• In response to higher capital requirements for Australian residential mortgages by APRA from 1 July 2016, ANZ raised an additional $3.2 billion of capital via an Institutional Placement and Retail Share Placement Plan. This provided an additional 80 bps to the CET1 ratio.

• September 2015 v March 2015

ANZ’s CET1 ratio increased 87 bps to 9.6% in the September 2015 half. Key drivers of the CET1 ratio movement during the half were:

• Net organic capital generation is 65 bps or $2.5 billion driven by from cash profit of $3.5 billion which more than offset capital usage from RWA growth and other business capital deductions.

• Payment of the March 2015 Interim Dividend (net of shares issued under the DRP) reduced the CET1 ratio by 38 bps.

• Other impacts of -20 bps were mainly due to increased Operational Risk RWA (-10 bps) as a result of APRA’s accreditation of ANZ’s new ORMS in September 2015, repayment of the first tranche of debt ($405 million) issued by ANZWA in June 2015 (-10 bps) and other net impacts from RWA measurement changes, movement in non-cash earnings and net foreign currency translation.

• In response to higher capital requirements for Australian residential mortgages by APRA from 1 July 2016, ANZ raised an additional $3.2 billion of capital via an Institutional Placement and Retail Share Placement Plan. This provided an additional 80 bps to the CET1 ratio.

40

GROUP RESULTS

APRA to Internationally Comparable[1] Common Equity Tier 1 (CET1) as at 30 September 2015

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1. ANZ’s interpretation of the regulations documented in the Basel Committee publications; “Basel 3: A global regulatory framework for more resilient banks and banking systems” (June 2011) and “International Convergence of Capital Measurement and Capital Standards” (June 2006). Also includes differences identified in APRA’s information paper entitled International Capital Comparison Study (13 July 2015).

The above provides a reconciliation of the CET1 ratio under APRA’s Basel 3 prudential capital standards to Internationally Comparable Basel 3 standards. APRA views the Basel 3 reforms as a minimum requirement and hence has not incorporated some of the concessions proposed in the Basel 3 rules and has also set higher requirements in other areas. As a result, Australian banks’ Basel 3 reported capital ratios will not be directly comparable with international peers. The International Comparable Basel 3 CET1 ratio incorporates differences between APRA and both the Basel Committee Basel 3 framework (including differences identified in the March 2014 Basel Committee’s Regulatory Consistency Assessment Programme (RCAP) on Basel 3 implementation in Australia) and its application in major offshore jurisdictions.

The material differences in APRA’s Basel 3 and Internationally Comparable Basel 3 ratios include:

Deductions

• Investment in insurance and banking associates – APRA requires full deduction against CET1. On an Internationally Comparable basis, these investments are subject to a concessional threshold before a deduction is required.

• Deferred tax assets – A full deduction is required from CET1 for deferred tax assets (DTA) relating to temporary differences. On an Internationally Comparable basis, this is first subject to a concessional threshold before the deduction is required.

Risk Weighted Assets (RWA)

• IRRBB RWA – APRA requires inclusion of Interest Rate Risk in the Banking Book (IRRBB) within the RWA base for the CET1 ratio calculation. This is not required on an Internationally Comparable basis.

• Mortgages RWA – APRA imposes a floor of 20% on the downturn Loss Given Default (LGD) used in credit RWA calculations for residential mortgages. The Internationally Comparable Basel 3 framework only requires downturn LGD floor of 10%.

• Specialised Lending - APRA requires the supervisory slotting approach be used in determining credit RWA for specialised lending exposures. The Internationally Comparable basis allows for the advanced internal ratings based approach to be used when calculating RWA for these exposures.

• Unsecured Corporate Lending LGD – Adjustment to align ANZ’s unsecured corporate lending LGD to 45% to be consistent with banks in other jurisdictions. The 45% LGD rate is also used in the Foundation Internal Ratings-Based approach (FIRB).

• Undrawn Corporate Lending Exposure at Default (EAD) – To adjust ANZ’s credit conversion factors (CCF) for undrawn corporate loan commitments to 75% (used in FIRB approach) to align with banks in other jurisdictions.

41

GROUP RESULTS

Leverage Ratio

In May 2015, APRA introduced amendments to APS 110 Capital Adequacy and APS 330 Public Disclosure to incorporate the requirements for calculating and disclosing ANZ’s Leverage Ratio. The Leverage Ratio requirements are part of the Basel Committee on Banking Supervision (BCBS) Basel 3 capital framework. It is a simple, non-risk based supplement or backstop to the current risk based capital requirements and is intended to restrict the build-up of excessive leverage in the banking system.

Consistent with the BCBS definition, APRA’s Leverage Ratio compares Tier 1 Capital to the Exposure Measure (expressed as a percentage) as defined by APS 110. APRA has not finalised a minimum Leverage Ratio requirement for Australian ADIs, although the current BCBS proposal is for a minimum of 3%.

Currently the Leverage Ratio is only a disclosure requirement. APRA intends to consult on the appropriate application of the Leverage Ratio as a minimum requirement for Australian ADIs once the BCBS finalises its calibration for implementation as a binding Pillar 1 requirement by January 2018.

• Leverage Ratio – APRA Basis

At 30 September 2015, the Group’s Leverage Ratio of 5.1% was above the 3% minimum currently proposed by the BCBS. The following table summarises the Group’s Leverage Ratio calculation:

Tier 1 Capital (net of capital deductions) On-balance sheet exposures (excluding derivatives and securities financing transaction exposures) Derivative exposures Securities financing transaction (SFT) exposures Otheroff-balance sheet exposures	As at
	Sep 15
	$M
	45,484
	733,756
	38,115
	17,297
	107,817
Total exposure measure
	896,985
APRA Leverage Ratio
	5.1%

• APRA to Internationally Comparable Leverage Ratio at 30 September 2015

The Leverage Ratio calculated under the APRA basis uses the APRA definition of Tier 1 capital and therefore does not incorporate some of the concessions allowed for in the Basel 3 rules with regard to capital deductions (as described on page 41). As a result, Australian banks’ Leverage Ratios are not directly comparable with international peers. The below is a reconciliation of ANZ’s Leverage Ratio under APRA and the Internationally Comparable Basel 3 definition of Tier 1 Capital.

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1. Leverage ratios include Additional Tier 1 securities subject to Basel 3 transitional relief, net of any transitional adjustments.

42

GROUP RESULTS

Other regulatory developments

• Financial System Inquiry (FSI)

The Australian Government recently completed a comprehensive inquiry into Australia’s financial system. The final FSI report was released on 7 December 2014. The contents of the final FSI report are wide-ranging and key recommendations that may have an impact on regulatory capital levels include:

• Setting capital standards such that ADIs’ capital ratios are unquestionably strong;

• Raising the average internal ratings-based (IRB) mortgage risk weight to narrow the difference between average mortgage risk-weight for ADIs using IRB models and those using standardised risk weights;

• Implementing a framework for minimum loss absorbing and recapitalisation capacity in line with emerging international practice;

• Developing a common reporting template that improves the transparency and comparability of capital ratios of Australian ADIs; and

• Introducing a leverage ratio requirement that acts as a backstop to ADIs’ risk-based capital requirements, in line with Basel framework.

APRA responded to parts of the FSI inquiry in July 2015 with the following announcements made in connection with the key recommendations:

• APRA released an information paper entitled “International capital comparison study” (“APRA Study”) which supports the FSI’s recommendation that the capital ratios of Australian ADIs should be unquestionably strong. The APRA Study confirmed that the major Australian ADIs are well-capitalised and acknowledged the challenges and complexity in comparing capital ratios between Australian ADIs and international peers given the varied national discretions exercised by different jurisdictions in implementing the global capital adequacy framework (Basel framework). The APRA Study did not confirm the definition of ‘unquestionably strong’ and stated that APRA does not intend to directly link Australian capital requirements to a continually moving benchmark. The results of the APRA Study will only inform but will not determine APRA’s approach for setting capital adequacy requirements.

• Effective from 1 July 2016, APRA requires increased capital requirements for Australian residential mortgage exposures for ADIs accredited to use the internal ratings-based (IRB) approach to credit risk. These new requirements will increase the average risk weighting for mortgage portfolios to approximately 25%. For ANZ, the impact is an approximate 60 bps reduction in CET1 on implementation of this change. In response to this, ANZ has raised $3.2 billion of ordinary share capital via a fully underwritten Institutional Placement in August 2015 ($2.5 billion raised) and a Share Purchase Plan to eligible Australian and New Zealand shareholders in September 2015 ($0.7 billion raised). APRA has indicated that further changes may be required once greater clarity on the deliberations of the Basel Committee is available, particularly in relation to revisions to the standardised approach for credit risk and capital floors.

The Australian Government released its response to the FSI in October 2015 which agrees with all of the above capital related recommendations. The Australian Government support and endorses APRA to implement the recommendations, including the initial actions to raise the capital requirements for Australian residential mortgage exposures and to take additional steps to ensure that the major banks have unquestionably strong capital ratios by the end of 2016.

Apart from the July 2015 announcements, APRA has not made any determination on the other key recommendations. Therefore, the final outcomes from the FSI, including any impacts and the timing of these impacts on ANZ remain uncertain.

• Liquidity Ratios

The Basel 3 Liquidity changes include the introduction of two liquidity ratios to measure liquidity risk; (i) the Liquidity Coverage Ratio (LCR) which became effective on 1 January 2015 and (ii) the Net Stable Funding Ratio (NSFR).

The final Basel 3 revised NSFR standard was released in October 2014, and is broadly consistent with the previous version. It will become the minimum Basel standard on 1 January 2018, and it is expected APRA will adopt the same timeline. As part of managing future liquidity requirements, ANZ monitors the NSFR ratio in its internal reporting and is well placed to meet this requirement.

• Domestic Systemically Important Bank (D-SIB) Framework

APRA has released details of its D-SIB framework for implementation in Australia and has classified ANZ and three other major Australian banks as domestic systemically important banks. As a result, an addition to the Capital Conservation Buffer (CCB) will be applied to four major Australian banks, increasing capital requirements by 100 bps from 1 January 2016 and further strengthening the capital position of Australia’s D-SIBs. ANZ’s current capital position is already in excess of APRA’s requirements including the D-SIB overlay. The Group is well placed for D-SIB implementation in January 2016.

 Composition of Level 2 ADI Group

In May 2014, APRA provided further clarification to the definition of the Level 2 ADI group, where subsidiary intermediate holding companies are now considered part of the Level 2 Group.

The above clarification results in the phasing out, over time, of capital benefits arising from the debt issued by ANZ Wealth Australia Limited (ANZWA). The first tranche of this debt, amounting to $405 million or approximately 10 bps of CET1 was phased out in June 2015. As at 30 September 2015, ANZWA has $400 million of debt outstanding which will mature by March 2016. This will result in a reduction in CET1 by approximately 10 bps on maturity of the debt with the Group well placed to manage this through organic capital generation.

• Level 3 Conglomerates (“Level 3”)

In August 2014, APRA announced its planned framework for the supervision of Conglomerates Group (Level 3) which includes updated Level 3 capital adequacy standards. These standards will regulate a bancassurance group such as ANZ as a single economic entity with minimum capital requirements and additional monitoring on risk exposure levels.

APRA has deferred a decision on the implementation date as well as the final form of the Level 3 framework until the Australian Government’s response to the FSI recommendations have been announced and considered by APRA. APRA has committed to a minimum transition period of 12 months for the affected institutions to comply with the new requirements once an implementation date is established.

43

GROUP RESULTS

Based upon the current draft of the Level 3 standards covering capital adequacy and risk exposures, ANZ is not expecting any material impact on its operations.

 APRA Discussion Paper on Disclosure Reforms

In May 2015, APRA released final standards implementing the internationally agreed disclosure framework on the leverage ratio, liquidity coverage ratio and the identification of potential global systemically important banks (“G-SIB”) with effect from 1 July 2015.

• Leverage Ratio

APRA’s leverage ratio will apply to those ADIs using the IRB approach to Credit Risk Weighted Assets. Leverage ratio requirements are included in the Basel Committee on Banking Supervision (BCBS) Basel 3 capital framework as a supplement to the current risk based capital requirements and are intended to restrict the build-up of excessive leverage in the banking system.

In the requirements, APRA has maintained the BCBS calculation of the leverage ratio of Tier 1 Capital expressed as a percentage of Exposure Measure. The proposed BCBS minimum leverage ratio requirement is 3%. APRA has not yet announced details of the minimum requirement which will apply to impacted Australian ADIs.

Public disclosure of the leverage ratio commenced for the year ended September 2015, with subsequent disclosures to be published on a quarterly basis in the Pillar 3 Report.

• Liquidity Coverage Ratio (LCR) disclosures

Management disclosed the LCR for the half year ended March 2015. The formal LCR disclosure requirements commenced for the year ended 30 September 2015 with subsequent disclosures to be published on a half-yearly basis in the Pillar 3 Report.

• Globally Systemically Important Bank (G-SIB) indicators disclosures

APRA requires that the four major Australian ADIs report a set of 12 financial indicators used in the G-SIB framework to identify banks that should be designated as systemically important from a global perspective. These indicators reflect the size, interconnectedness, level of cross jurisdictional activities and complexity of the ADI, which are then used to calculate each ADI’s “systemicness” score. ADIs identified as G-SIB will be imposed with higher loss absorbency (“HLA”) requirements in the form of additional CET1 capital. As of 30 September 2015, no Australian ADI (ANZ included) was considered to be globally systemically important.

Under the requirements of APS 330: Public Disclosure , the four major Australian ADIs must disclose the 12 indicators on an annual basis. The indicator values are to be reported as at an ADI’s financial year-end, although the first disclosures (as at 30 September 2015) are not required to be published until 31 July 2016. The disclosures can either be included in an ADI’s annual financial report or in the “Regulatory Disclosures” section of an ADI’s website.

• Revisions to the Standardised Approach for Credit Risk and Capital Floors

In December 2014, BCBS released two consultation papers on its proposals to revise the approach to measuring Standardised Risk Weighted Assets (RWA) for credit risk (this is in addition to their proposals on standardised approaches to market risk, counterparty credit risk and operational risks announced earlier in 2014) and to impose capital floors based on these revised approaches to the RWA measurement. These proposals are aimed at reducing RWA variability amongst banks and improving risk sensitivities to key drivers of risk, whilst reducing the reliance on external credit ratings when setting capital charges.

The impact of these changes to ANZ and other Australian ADIs cannot be determined until BCBS finalise its calibration and proposals incorporating comments from the industry (consultation closed on 27 March 2015). Final impacts are also subject to the form of the BCBS proposal that APRA will implement for Australian ADIs.

44

DIVISIONAL RESULTS

CONTENTS

Section 5 – Divisional Results

Divisional performance Australia International and Institutional Banking (IIB) New Zealand Global Wealth Global Technology, Services and Operations (GTSO) and Group Centre

45

DIVISIONAL RESULTS

Divisional Performance

The Group operates on a divisional structure with Australia, International and Institutional Banking (IIB), New Zealand, and Global Wealth being the major operating divisions. The IIB and Global Wealth divisions are coordinated globally. Global Technology Services and Operations (GTSO) and Group Centre provide support to the operating divisions, including technology, operations, shared services, property, risk management, financial management, strategy, marketing, human resources and corporate affairs. The Group Centre also includes Group Treasury and Shareholder Functions.

During the September 2015 half, Small Business Banking within the New Zealand division was transferred out of the Commercial business unit and is now presented as part of the Retail business unit. During the March 2015 half, the Merchant Services and Commercial Credit Cards businesses were transferred out of the Cards and payments business unit in Australia Retail and split between Australia C&CB and IIB based on customer ownership. Comparative information has been restated.

There have been no other significant structure changes, however certain prior period comparatives have been restated to align with current period presentation as a result of changes to customer segmentation and the continued realignment of support functions.

The Divisional Results section is reported on a cash profit basis.

September 2015 Full Year

September 2015 Full Year
		International &
		Institutional			GTSO and
AUD M	Australia	Banking	New Zealand	Global Wealth	Group Centre	Group
Net interest income	7,509	4,173	2,316	178	440	14,616
Other operating income	1,169	3,246	368	1,552	(433)	5,902
Operating income	8,678	7,419	2,684	1,730	7	20,518
Operating expenses	(3,157)	(3,616)	(1,064)	(975)	(547)	(9,359)
Profit before credit impairment and income tax	5,521	3,803	1,620	755	(540)	11,159
Credit impairment (charge)/release	(853)	(295)	(55)	-	(2)	(1,205)
Profit before income tax	4,668	3,508	1,565	755	(542)	9,954
Income tax expense and non-controllinginterests	(1,394)	(844)	(438)	(154)	92	(2,738)
Cash profit	3,274	2,664	1,127	601	(450)	7,216

September 2014 Full Year

September 2014 Full Year
		International &
		Institutional			GTSO and
AUD M	Australia	Banking	New Zealand	Global Wealth	Group Centre	Group
Net interest income	7,077	4,009	2,171	168	372	13,797
Other operating income	1,116	3,096	349	1,577	(357)	5,781
Operating income	8,193	7,105	2,520	1,745	15	19,578
Operating expenses	(3,015)	(3,275)	(1,031)	(1,004)	(435)	(8,760)
Profit before credit impairment and income tax	5,178	3,830	1,489	741	(420)	10,818
Credit impairment (charge)/release	(818)	(216)	8	2	35	(989)
Profit before income tax	4,360	3,614	1,497	743	(385)	9,829
Income tax expense and non-controllinginterests	(1,306)	(906)	(419)	(201)	120	(2,712)
Cash profit	3,054	2,708	1,078	542	(265)	7,117

September 2015 Full Year vs September 2014 Full Year

September 2015 Full Year vs September 2014 Full Year
		International &
		Institutional			GTSO and
AUD M	Australia	Banking	New Zealand	Global Wealth	Group Centre	Group
Net interest income	6%	4%	7%	6%	18%	6%
Other operating income	5%	5%	5%	-2%	21%	2%
Operating income	6%	4%	7%	-1%	-53%	5%
Operating expenses	5%	10%	3%	-3%	26%	7%
Profit before credit impairment and income tax	7%	-1%	9%	2%	29%	3%
Credit impairment (charge)/release	4%	37%	large	-100%	large	22%
Profit before income tax	7%	-3%	5%	2%	41%	1%
Income tax expense and non-controllinginterests	7%	-7%	5%	-23%	-23%	1%
Cash profit	7%	-2%	5%	11%	70%	1%

46

DIVISIONAL RESULTS

Cash profit by division – September 2015 v September 2014

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September 2015 Half Year

		International &
		Institutional			GTSO and
AUD M	Australia	Banking	New Zealand	Global Wealth	Group Centre	Group
Net interest income	3,839	2,146	1,155	90	248	7,478
Other operating income	598	1,487	185	790	(205)	2,855
Operating income	4,437	3,633	1,340	880	43	10,333
Operating expenses	(1,601)	(1,845)	(525)	(486)	(309)	(4,766)
Profit before credit impairment and income tax	2,836	1,788	815	394	(266)	5,567
Credit impairment (charge)/release	(458)	(197)	(36)	(1)	(3)	(695)
Profit before income tax	2,378	1,591	779	393	(269)	4,872
Income tax expense and non-controlling interests	(706)	(386)	(218)	(51)	29	(1,332)
Cash profit	1,672	1,205	561	342	(240)	3,540

March 2015 Half Year

March 2015 Half Year
		International &
		Institutional			GTSO and
AUD M	Australia	Banking	New Zealand	Global Wealth	Group Centre	Group
Net interest income	3,670	2,027	1,161	88	192	7,138
Other operating income	571	1,759	183	762	(228)	3,047
Operating income	4,241	3,786	1,344	850	(36)	10,185
Operating expenses	(1,556)	(1,771)	(539)	(489)	(238)	(4,593)
Profit before credit impairment and income tax	2,685	2,015	805	361	(274)	5,592
Credit impairment (charge)/release	(395)	(98)	(19)	1	1	(510)
Profit before income tax	2,290	1,917	786	362	(273)	5,082
Income tax expense and non-controlling interests	(688)	(458)	(220)	(103)	63	(1,406)
Cash profit	1,602	1,459	566	259	(210)	3,676

September 2015 Half Year vs March 2015 Half Year

September 2015 Half Year vs March 2015 Half Year
		International &
		Institutional			GTSO and
AUD M	Australia	Banking	New Zealand	Global Wealth	Group Centre	Group
Net interest income	5%	6%	-1%	2%	29%	5%
Other operating income	5%	-15%	1%	4%	-10%	-6%
Operating income	5%	-4%	0%	4%	large	1%
Operating expenses	3%	4%	-3%	-1%	30%	4%
Profit before credit impairment and income tax	6%	-11%	1%	9%	-3%	0%
Credit impairment (charge)/release	16%	large	89%	large	large	36%
Profit before income tax	4%	-17%	-1%	9%	-1%	-4%
Income tax expense and non-controlling interests	3%	-16%	-1%	-50%	-54%	-5%
Cash profit	4%	-17%	-1%	32%	14%	-4%

47

DIVISIONAL RESULTS

Australia Mark Whelan

The Australia Division comprises the Retail and Corporate and Commercial Banking (C&CB) business units.

Cash profit – September 2015 Full Year v September 2014 Full Year

==> picture [529 x 164] intentionally omitted <==

Australia Division’s strategy is focused on growing customers, products per customer and cross-sell between Divisions through improving the customer proposition in all parts of our business.

In 2015, Australia Division delivered a 7% increase in cash profit and accounted for 45% of the ANZ Group Cash profit. The cost to income ratio has improved from 36.8% to 36.4% while investment has continued in key growth areas such as increasing distribution sales capacity and capability, expanding our presence in NSW and building out key customer and industry segments in our Corporate and Commercial business (C&CB).

We continue to deliver innovative and digital solutions to enhance the customer experience and allow customers to have more control over their banking needs. Digital sales have increased 30% in the year. Customer acquisition has increased by 3%, 59% of Retail customers hold multiple products with us and C&CB cross-sell has increased 5%. Margins have been well managed with lending margin pressure from competition being largely offset from deposit repricing.

In Retail, Home loan sales are up 24% nationally and are on track to deliver 6 consecutive years of above system growth[1] . Home loan sales in NSW have grown 63% in the year. Cards momentum continues with acquisitions up 29% and market share is 20%[1] . Individual impairment loss rates are at their lowest level in 8 years, with increases in collective impairment charges predominantly from lending growth.

C&CB continues to grow its business, targeting key sectors and supporting customers across the region. Customer numbers grew 5%, lending growth increased by 6% with Small Business a highlight growing at 12%. Cost discipline and underlying asset quality remain sound.

• September 2015 v September 2014

Cash profit increased 7%, with 6% income growth, a 5% increase in expenses and a 4% increase in credit impairment charges.

Key factors affecting the result were:

• Net interest income increased by $432 million or 6% primarily due to Home Loans and Small Business Banking lending growth of 10% and 12% respectively. Lending margin contraction from competition was partially offset by favourable deposit pricing.

• Other operating income increased $53 million or 5% primarily due to increased net interchange fee revenue, and lending

fee income driven by Small Business Banking lending growth.

• Operating expenses increased $142 million or 5%.This was primarily due to investments supporting our sales force growth strategy (particularly in NSW and Digital), as well as wage inflation.

• Credit impairment charges increased $35 million or 4%, with a lower individual impairment charge partially offsetting a higher collective charge. The lower individual charge reflected write-backs in Corporate Banking partially offset by higher charges in Personal Loans, Small Business Banking and Esanda. The collective charge increase was mainly due to lending growth in Cards and Small Business, along with methodology adjustments in Esanda and changes to hardship policy also contributing to the increase.

• September 2015 v March 2015

Cash profit increased 4%, with 5% income growth, a 3% increase in operating expenses and a 16% increase in credit impairment charges. Key factors affecting the result were:

• Net interest income increased $169 million or 5% primarily due to Home Loans and Small Business Banking lending growth of 6% and 6% respectively. Net interest margin was stable, reflecting disciplined retail portfolio margin management, offset by lending margin contraction in C&CB from competitive pressures.

• Other operating income increased $27 million or 5% primarily due to higher Cards fee income.

• Operating expenses increased $45 million or 3%. Investment in sales reach and sales capability continued in the September 2015 half, primarily in NSW.

• Credit impairment charges increased $63 million or 16%, with a higher individual impairment charge being partially offset by a lower collective charge. The increase in individual charge is a combination of seasonality and growth in Cards, higher charges in Small Business Banking and Regional Business Banking, with lower write-backs in Corporate Banking. The collective charge decrease reflects methodology changes in Cards in the second half and model improvements in Esanda implemented in the first half.

1

Source: APRA Monthly Banking Statistics as at 31 August 2015.

48

DIVISIONAL RESULTS

Australia Mark Whelan

Net interest income Other operating income	Half Year Sep 15 $M Mar 15 $M Movt 3,839 3,670 5% 598 571 5%	Full Year
		Sep 15 $M Sep 14 $M Movt 7,509 7,077 6% 1,169 1,116 5%
Operating income Operating expenses	4,437 4,241 5% (1,601) (1,556) 3%	8,678 8,193 6% (3,157) (3,015) 5%
Profit before credit impairment and income tax Credit impairment charge	2,836 2,685 6% (458) (395) 16%	5,521 5,178 7% (853) (818) 4%
Profit before income tax Income tax expense and non-controlling interests	2,378 2,290 4% (706) (688) 3%	4,668 4,360 7% (1,394) (1,306) 7%
Cash profit	1,672 1,602 4%	3,274 3,054 7%
Consisting of: Retail Corporate and Commercial Banking	1,065 956 11% 607 646 -6%	2,021 1,843 10% 1,253 1,211 3%
Cash profit	1,672 1,602 4%	3,274 3,054 7%
Balance Sheet Net loans & advances Other external assets	313,672 297,642 5% 2,911 2,885 1%	313,672 287,750 9% 2,911 2,814 3%
External assets	316,583 300,527 5%	316,583 290,564 9%
Customer deposits Other external liabilities	169,280 162,587 4% 11,398 11,414 0%	169,280 160,683 5% 11,398 12,001 -5%
External liabilities	180,678 174,001 4%	180,678 172,684 5%
Risk weighted assets Average gross loans and advances Average deposits and other borrowings Ratios Return on assets Net interest margin Operating expenses to operating income Operating expenses to average assets	128,428 116,386 10% 306,820 294,357 4% 164,732 162,688 1% 1.08% 1.09% 2.50% 2.50% 36.1% 36.7% 1.04% 1.06%	128,428 110,752 16% 300,605 280,706 7% 163,713 156,418 5% 1.09% 1.08% 2.50% 2.52% 36.4% 36.8% 1.05% 1.07%
Individual credit impairment charge/(release) Individual credit impairment charge/(release) as a % of average GLA Collective credit impairment charge/(release) Collective credit impairment charge/(release) as a % of average GLA Gross impaired assets Gross impaired assets as a % of GLA	427 334 28% 0.28% 0.23% 31 61 -49% 0.02% 0.04% 1,193 1,245 -4% 0.38% 0.42%	761 787 -3% 0.25% 0.28% 92 31 large 0.03% 0.01% 1,193 1,253 -5% 0.38% 0.43%
Total full time equivalent staff (FTE)	9,781 10,235 -4%	9,781 9,904 -1%

49

DIVISIONAL RESULTS

Australia

Mark Whelan

Individual credit impairment charge/(release) Retail Home Loans Cards and Personal Loans Deposits and Payments1 Corporate and Commercial Banking Corporate Banking Esanda Regional Business Banking Business Banking Small Business Banking	Half Year Sep 15 $M Mar 15 $M Movt 196 158 24% 10 6 67% 174 144 21% 12 8 50% 231 176 31% - (18) -100% 93 100 -7% 35 20 75% 22 24 -8% 81 50 62%	Half Year Sep 15 $M Mar 15 $M Movt 196 158 24% 10 6 67% 174 144 21% 12 8 50% 231 176 31% - (18) -100% 93 100 -7% 35 20 75% 22 24 -8% 81 50 62%	Full Year
			Sep 15 $M Sep 14 $M Movt 354 338 5% 16 24 -33% 318 293 9% 20 21 -5% 407 449 -9% (18) 109 large 193 154 25% 55 59 -7% 46 28 64% 131 99 32%
	196
	10
	174
	12
	231
	-
	93
	35
	22
	81
Individual credit impairment charge/(release)	427	334 28%	761 787 -3%

Collective credit impairment charge/(release) Retail Home Loans Cards and Personal Loans Deposits and Payments2 Corporate and Commercial Banking Corporate Banking Esanda Regional Business Banking Business Banking Small Business Banking		Half Year
Collective credit impairment charge/(release)	31 61 -49% 92 31 large
Total credit impairment charge/(release)	458 395 16% 853 818 4%

1. Represents individual credit impairment charge/(release) on Overdraft balances.

2. Represents collective credit impairment charge/(release) on Overdraft balances.

50

DIVISIONAL RESULTS

Australia

Mark Whelan

Net loans and advances Retail Home Loans Cards and Personal Loans Deposits and Payments1 Corporate and Commercial Banking Corporate Banking Esanda Regional Business Banking Business Banking Small Business Banking	Half Year Sep 15 $M Mar 15 $M Movt 242,333 229,211 6% 231,206 217,977 6% 11,049 11,139 -1% 78 95 -18% 71,339 68,431 4% 10,418 9,661 8% 15,917 15,776 1% 12,827 12,359 4% 17,827 17,150 4% 14,350 13,485 6%	Half Year Sep 15 $M Mar 15 $M Movt 242,333 229,211 6% 231,206 217,977 6% 11,049 11,139 -1% 78 95 -18% 71,339 68,431 4% 10,418 9,661 8% 15,917 15,776 1% 12,827 12,359 4% 17,827 17,150 4% 14,350 13,485 6%	Full Year
			Sep 15 $M Sep 14 $M Movt 242,333 220,164 10% 231,206 209,391 10% 11,049 10,680 3% 78 93 -16% 71,339 67,586 6% 10,418 9,389 11% 15,917 16,149 -1% 12,827 12,409 3% 17,827 16,774 6% 14,350 12,865 12%
	242,333
	231,206
	11,049
	78
	71,339
	10,418
	15,917
	12,827
	17,827
	14,350
Net loans and advances	313,672	297,642 5%	313,672 287,750 9%

Customer deposits Retail Home Loans2 Cards and Personal Loans Deposits and Payments Corporate and Commercial Banking3 Esanda Regional Business Banking Business Banking Small Business Banking		Half Year
Customer deposits	169,280 162,587 4% 169,280 160,683 5%

1. Net loans and advances for the Deposits and Payments business represent amounts in overdraft. 2.

Customer deposit amounts for the Home Loans business represent balances in offset accounts. 3.

Corporate Banking deposits are included in the International and Institutional Banking division deposits.

51

DIVISIONAL RESULTS

Australia Mark Whelan

Retail

Net interest income Other operating income	Half Year Sep 15 $M Mar 15 $M Movt 2,381 2,219 7% 377 357 6%	Full Year
		Sep 15 $M Sep 14 $M Movt 4,600 4,248 8% 734 689 7%
Operating income Operating expenses	2,758 2,576 7% (1,046) (1,015) 3%	5,334 4,937 8% (2,061) (1,957) 5%
Profit before credit impairment and income tax Credit impairment charge	1,712 1,561 10% (203) (195) 4%	3,273 2,980 10% (398) (353) 13%
Profit before income tax Income tax expense and non-controlling interests	1,509 1,366 10% (444) (410) 8%	2,875 2,627 9% (854) (784) 9%
Cash profit	1,065 956 11%	2,021 1,843 10%
Risk weighted assets	61,873 57,304 8%	61,873 53,367 16%
Individual credit impairment charge/(release) Home Loans Cards and Personal Loans Deposits and Payments1	Half Year Sep 15 $M Mar 15 $M Movt 10 6 67% 174 144 21% 12 8 50%	Full Year
		Sep 15 $M Sep 14 $M Movt 16 24 -33% 318 293 9% 20 21 -5%
Individual credit impairment charge/(release)	196 158 24%	354 338 5%
Collective credit impairment charge/(release) Home Loans Cards and Personal Loans Deposits and Payments2	15 11 36% (12) 25 large 4 1 large	26 14 86% 13 1 large 5 - n/a
Collective credit impairment charge/(release)	7 37 -81%	44 15 large
Total credit impairment charge/(release)	203 195 4%	398 353 13%

Net loans and advances Home Loans Cards and Personal Loans Deposits and Payments	Half Year Sep 15 $M Mar 15 $M Movt 231,206 217,977 6% 11,049 11,139 -1% 78 95 -18%	Full Year
		Sep 15 $M Sep 14 $M Movt 231,206 209,391 10% 11,049 10,680 3% 78 93 -16%
Net loans and advances	242,333 229,211 6%	242,333 220,164 10%
Customer deposits Home Loans Cards and Personal Loans Deposits and Payments	21,861 19,211 14% 258 230 12% 96,314 93,465 3%	21,861 17,684 24% 258 245 5% 96,314 94,033 2%
Customer deposits	118,433 112,906 5%	118,433 111,962 6%

1. Represents individual credit impairment charge/(release) on Overdraft balances. 2.

Represents collective credit impairment charge/(release) on Overdraft balances.

52

DIVISIONAL RESULTS

Australia

Mark Whelan

Corporate and Commercial Banking

Net interest income Other operating income	Half Year Sep 15 $M Mar 15 $M Movt 1,458 1,451 0% 221 214 3%	Full Year
		Sep 15 $M Sep 14 $M Movt 2,909 2,829 3% 435 427 2%
Operating income Operating expenses	1,679 1,665 1% (555) (541) 3%	3,344 3,256 3% (1,096) (1,058) 4%
Profit before credit impairment and income tax Credit impairment charge	1,124 1,124 0% (255) (200) 28%	2,248 2,198 2% (455) (465) -2%
Profit before income tax Income tax expense and non-controlling interests	869 924 -6% (262) (278) -6%	1,793 1,733 3% (540) (522) 3%
Cash profit	607 646 -6%	1,253 1,211 3%
Risk weighted assets	66,555 59,080 13%	66,555 56,287 18%

Individual credit impairment charge/(release) Corporate Banking Esanda Regional Business Banking Business Banking Small Business Banking	Half Year Sep 15 $M Mar 15 $M Movt - (18) -100% 93 100 -7% 35 20 75% 22 24 -8% 81 50 62%	Full Year
		Sep 15 $M Sep 14 $M Movt (18) 109 large 193 154 25% 55 59 -7% 46 28 64% 131 99 32%
Individual credit impairment charge/(release)	231 176 31%	407 449 -9%
Collective credit impairment charge/(release) Corporate Banking Esanda Regional Business Banking Business Banking Small Business Banking	17 (29) large (6) 27 large (6) 12 large 9 (1) large 10 15 -33%	(12) (8) 50% 21 (1) large 6 (2) large 8 1 large 25 26 -4%
Collective credit impairment charge/(release)	24 24 0%	48 16 large
Total credit impairment charge/(release)	255 200 28%	455 465 -2%
Net loans and advances Corporate Banking Esanda Regional Business Banking Business Banking Small Business Banking	Half Year Sep 15 $M Mar 15 $M Movt 10,418 9,661 8% 15,917 15,776 1% 12,827 12,359 4% 17,827 17,150 4% 14,350 13,485 6%	Full Year
		Sep 15 $M Sep 14 $M Movt 10,418 9,389 11% 15,917 16,149 -1% 12,827 12,409 3% 17,827 16,774 6% 14,350 12,865 12%
Net loans and advances	71,339 68,431 4%	71,339 67,586 6%
Customer deposits1 Esanda Regional Business Banking Business Banking Small Business Banking	- - n/a 5,051 4,693 8% 14,007 14,136 -1% 31,789 30,852 3%	- 1 -100% 5,051 4,518 12% 14,007 14,038 0% 31,789 30,164 5%
Customer deposits	50,847 49,681 2%	50,847 48,721 4%

1. Corporate Banking deposits are included in the International and Institutional Banking division deposits.

53

DIVISIONAL RESULTS

International and Institutional Banking

Andrew Géczy

International and Institutional Banking (IIB) division provides markets, transaction banking and lending services to Institutional clients globally, leveraging its Australian market strength, and capability to reach across Asia Pacific. The Global Banking division serves customers with multi-product and multigeographic requirements, while International Banking serves customers with less complex needs. IIB also provides banking and wealth management services to affluent and emerging affluent retail customers across Asia Pacific. In addition, IIB manages the Group’s investment in partnerships in Asia.

Cash profit – September 2015 Full Year v September 2014 Full Year

==> picture [529 x 165] intentionally omitted <==

IIB’s four key strategic priorities are:

• Connecting with more customers by providing seamless value: supporting customers’ trade and investment activities across the key Asia Pacific corridors through the provision of multi-product, integrated financial solutions.

• Delivering leading products through insights: combining product excellence with industry and regional expertise to provide tailored, innovative solutions to customers.

• Intensifying balance sheet discipline: accelerating performance by managing capital efficiently and prudently.

• Scaling and optimising infrastructure: simplifying and focusing the business to effectively control costs.

IIB continues to focus on accelerating performance by investing in the growth of higher returning products; Markets and Cash Management. Loans remain an important product from which to build customer relationships.

 September 2015 v September 2014

Cash profit decreased by 2% due to increases in operating expenses and credit impairment charges, partially offset by an increase in operating income.

Key factors affecting the result were:

• Net interest income increased 4%. The increase in net interest income was driven by Retail Asia Pacific, Global Markets and Global Transaction Banking, partially offset by a decrease in Global Loans. Average deposits and other borrowings increased 12% and average gross loans and advances increased 11%. Net interest margin declined 16 bps, mainly due to excess liquidity in Australia.

• Other operating income increased by 5%, due to increased Global Transaction Banking fees reflecting deposit volume growth in all geographies, along with income growth in Asia Partnerships, higher Investment and Insurance income in Retail Asia Pacific, higher Global Markets Sales income and increased fee income from Global Loans. These increases were offset by a decrease in Global Markets Balance Sheet Trading income which was

negatively impacted by widening credit spreads towards the end of the year.

• Operating expenses increased by 10%, with ongoing investment in key growth, infrastructure, and compliance-related projects.

• Credit impairment charges increased 37%. Individual credit impairment charges were flat, with higher provisions in Global Loans offset by lower provisions in Global Transaction Banking. Collective credit impairment charges increased due to nonrecurring provision releases in Retail Asia Pacific and a higher level of customer credit rating upgrades in Global Loans in the prior year.

• September 2015 v March 2015

Cash profit decreased 17%, due to lower income in Global Markets, and an increase in operating expenses and credit impairment charges.

Key factors affecting the result were:

• Net interest income increased 6%. The increase in net interest income was driven by Global Markets, Global Loans and Retail Asia Pacific. Average deposits and other borrowings increased 2% and average gross loans and advances increased 4%. Net interest margin was flat with improved asset and funding mix, partially offset by continued pricing pressure in Global Loans in Australia.

• Other operating income decreased by 15%, driven by lower Global Markets income which was negatively impacted by widening credit spreads and market dislocation in the fourth quarter. This decrease was partially offset by increased fee income from Global Loans.

• Operating expenses increased 4% with continued investment in key infrastructure projects to support future growth.

• Credit impairment charges increased by $99 million, with higher individual credit impairment charges driven by provision releases in Retail Asia Pacific in the first half, combined with higher new provisions in Global Transaction Banking and Global Loans. Collective provision impairment charges remained broadly flat.

54

DIVISIONAL RESULTS

International and Institutional Banking

Andrew Géczy

Net interest income Other operating income	Half Year Sep 15 $M Mar 15 $M Movt 2,146 2,027 6% 1,487 1,759 -15%	Full Year
		Sep 15 $M Sep 14 $M Movt 4,173 4,009 4% 3,246 3,096 5%
Operating income Operating expenses	3,633 3,786 -4% (1,845) (1,771) 4%	7,419 7,105 4% (3,616) (3,275) 10%
Profit before credit impairment and income tax Credit impairment charge	1,788 2,015 -11% (197) (98) large	3,803 3,830 -1% (295) (216) 37%
Profit before income tax Income tax expense and non-controlling interests	1,591 1,917 -17% (386) (458) -16%	3,508 3,614 -3% (844) (906) -7%
Cash profit	1,205 1,459 -17%	2,664 2,708 -2%
Consisting of: Global Transaction Banking Global Loans and Advisory Global Markets	297 305 -3% 368 394 -7% 280 421 -33%	602 557 8% 762 866 -12% 701 841 -17%
Global Products Retail Asia Pacific Asia Partnerships Central Functions	945 1,120 -16% 6 56 -89% 290 299 -3% (36) (16) large	2,065 2,264 -9% 62 46 35% 589 488 21% (52) (90) -42%
Cash profit	1,205 1,459 -17%	2,664 2,708 -2%
Balance Sheet Net loans & advances Other external assets	154,741 156,517 -1% 268,267 248,540 8%	154,741 141,986 9% 268,267 200,998 33%
External assets	423,008 405,057 4%	423,008 342,984 23%
Customer deposits Other deposits and borrowings	202,495 201,124 1% 41,860 51,681 -19%	202,495 183,126 11% 41,860 39,604 6%
Deposits and other borrowings Other external liabilities	244,355 252,805 -3% 109,341 93,713 17%	244,355 222,730 10% 109,341 78,370 40%
External liabilities	353,696 346,518 2%	353,696 301,100 17%
Risk weighted assets Average gross loans and advances Average deposits and other borrowings Ratios Return on assets Net interest margin Net interest margin (excluding Global Markets) Operating expenses to operating income Operating expenses to average assets	209,826 206,254 2% 159,778 153,399 4% 249,907 244,050 2% 0.58% 0.75% 1.34% 1.34% 2.34% 2.32% 50.8% 46.8% 0.89% 0.92%	209,826 191,286 10% 156,598 140,939 11% 246,987 221,371 12% 0.67% 0.83% 1.34% 1.50% 2.33% 2.45% 48.7% 46.1% 0.90% 1.01%
Individual credit impairment charge/(release) Individual credit impairment charge/(release) as a % of average GLA Collective credit impairment charge/(release) Collective credit impairment charge/(release) as a % of average GLA Gross impaired assets Gross impaired assets as a % of GLA	191 100 91% 0.24% 0.13% 6 (2) large 0.01% (0.00%) 1,183 1,021 16% 0.76% 0.65%	291 290 0% 0.19% 0.21% 4 (74) large 0.00% (0.05%) 1,183 1,093 8% 0.76% 0.76%
Total full time equivalent staff (FTE)	7,578 7,785 -3%	7,578 7,749 -2%

55

DIVISIONAL RESULTS

International and Institutional Banking

Andrew Géczy

International and Institutional Banking by Geography

Australia Net interest income Other operating income		Half Year
	1,015
	331
Operating income Operating expenses	1,346
Profit before credit impairment and income tax Credit impairment (charge)/release	746	794 -6% 1,540 1,749 -12% (34) large (17) (75) -77%
	17
Profit before income tax Income tax expense and non-controlling interests	763
Cash profit	535	532 1% 1,067 1,175 -9%
Individual credit impairment charge/(release) Collective credit impairment charge/(release) Net loans & advances Customer deposits
Asia Pacific, Europe, and America Net interest income Other operating income	977 930 5% 1,907 1,695 13% 1,005 1,131 -11% 2,136 1,916 11%
Operating income Operating expenses	1,982 2,061 -4% 4,043 3,611 12% (1,157) (1,066) 9% (2,223) (1,938) 15%
Profit before credit impairment and income tax Credit impairment (charge)/release	825 995 -17% 1,820 1,673 9% (207) (54) large (261) (140) 86%
Profit before income tax Income tax expense and non-controlling interests	618 941 -34% 1,559 1,533 2% (101) (170) -41% (271) (294) -8%
Cash profit	517 771 -33% 1,288 1,239 4%
Individual credit impairment charge/(release) Collective credit impairment charge/(release) Net loans & advances Customer deposits	190 47 large 237 175 35% 17 7 large 24 (35) large 83,033 86,474 -4% 83,033 77,533 7% 124,361 125,234 -1% 124,361 103,992 20%
New Zealand Net interest income Other operating income	154 130 18% 284 302 -6% 151 183 -17% 334 273 22%
Operating income Operating expenses	305 313 -3% 618 575 7% (88) (87) 1% (175) (167) 5%
Profit before credit impairment and income tax Credit impairment (charge)/release	217 226 -4% 443 408 9% (7) (10) -30% (17) (1) large
Profit before income tax Income tax expense and non-controlling interests	210 216 -3% 426 407 5% (57) (60) -5% (117) (113) 4%
Cash profit	153 156 -2% 309 294 5%
Individual credit impairment charge/(release) Collective credit impairment charge/(release) Net loans & advances Customer deposits	2 12 -83% 14 14 0% 5 (2) large 3 (13) large 6,923 7,552 -8% 6,923 6,485 7% 12,258 13,280 -8% 12,258 12,061 2%

56

DIVISIONAL RESULTS

International and Institutional Banking

Andrew Géczy

Individual credit impairment charge/(release) Retail Asia Pacific Global Products Global Transaction Banking Global Loans and Advisory Global Markets Central Functions	Half Year Sep 15 $M Mar 15 $M Movt 69 9 large 123 91 35% 42 19 large 73 33 large 8 39 -79% (1) - n/a	Full Year
		Sep 15 $M Sep 14 $M Movt 78 86 -9% 214 203 5% 61 113 -46% 106 67 58% 47 23 large (1) 1 large
Individual credit impairment charge/(release)	191 100 91%	291 290 0%

Collective credit impairment charge/(release) Retail Asia Pacific Global Products Global Transaction Banking Global Loans and Advisory Global Markets Central Functions	Half Year Sep 15 $M Mar 15 $M Movt 14 2 large (7) (5) 40% (29) (1) large 21 (4) large 1 - n/a (1) 1 large	Full Year
		Sep 15 $M Sep 14 $M Movt 16 (21) large (12) (53) -77% (30) 3 large 17 (57) large 1 1 0% - - n/a
Collective credit impairment charge/(release)	6 (2) large	4 (74) large
Total credit impairment charge/(release)	197 98 large	295 216 37%

Net loans and advances Retail Asia Pacific Global Products Global Transaction Banking Global Loans and Advisory Global Markets Central Functions	Half Year Sep 15 $M Mar 15 $M Movt 10,940 10,160 8% 143,571 146,080 -2% 26,354 32,801 -20% 93,851 91,129 3% 23,366 22,150 5% 230 277 -17%	Full Year
		Sep 15 $M Sep 14 $M Movt 10,940 8,782 25% 143,571 132,950 8% 26,354 30,230 -13% 93,851 84,191 11% 23,366 18,529 26% 230 254 -9%
Net loans and advances	154,741 156,517 -1%	154,741 141,986 9%

Customer deposits Retail Asia Pacific Global Products Global Transaction Banking Global Loans and Advisory Global Markets Central Functions	Half Year Sep 15 $M Mar 15 $M Movt 17,695 16,233 9% 184,643 184,733 0% 96,172 92,875 4% 849 792 7% 87,622 91,066 -4% 157 158 -1%	Full Year
		Sep 15 $M Sep 14 $M Movt 17,695 14,433 23% 184,643 168,542 10% 96,172 86,438 11% 849 730 16% 87,622 81,374 8% 157 151 4%
Customer deposits	202,495 201,124 1%	202,495 183,126 11%

57

DIVISIONAL RESULTS

International and Institutional Banking

Andrew Géczy

International and Institutional Banking Andrew Géczy
September 2015 Full Year
	Global	Global
	Transaction	Loans &	Global	Global	Retail Asia	Asia	Central
AUD M	Banking	Advisory	Markets	Products	Pacific	Partnerships	Functions	IIB Total
Net interest income	957	1,575	1,099	3,631	545	(7)	4	4,173
Other operating income	842	160	1,185	2,187	411	615	33	3,246
Operating income	1,799	1,735	2,284	5,818	956	608	37	7,419
Operating expenses	(937)	(570)	(1,281)	(2,788)	(782)	(8)	(38)	(3,616)
Profit before credit impairment and income tax	862	1,165	1,003	3,030	174	600	(1)	3,803
Credit impairment (charge)/release	(31)	(123)	(48)	(202)	(94)	-	1	(295)
Profit before income tax	831	1,042	955	2,828	80	600	-	3,508
Income tax expense and non-controlling interests	(229)	(280)	(254)	(763)	(18)	(11)	(52)	(844)
Cash profit	602	762	701	2,065	62	589	(52)	2,664
Individual credit impairment (charge)/release	(61)	(106)	(47)	(214)	(78)	-	1	(291)
Collective credit impairment (charge)/release	30	(17)	(1)	12	(16)	-	-	(4)
Net loans & advances	26,354	93,851	23,366	143,571	10,940	-	230	154,741
Customer deposits	96,172	849	87,622	184,643	17,695	-	157	202,495
Risk weighted assets	35,676	103,315	60,378	199,369	9,096	-	1,361	209,826
September 2014 Full Year
Net interest income	925	1,585	1,043	3,553	457	(5)	4	4,009
Other operating income	816	140	1,285	2,241	360	492	3	3,096
Operating income	1,741	1,725	2,328	5,794	817	487	7	7,105
Operating expenses	(855)	(512)	(1,148)	(2,515)	(695)	(8)	(57)	(3,275)
Profit before credit impairment and income tax	886	1,213	1,180	3,279	122	479	(50)	3,830
Credit impairment (charge)/release	(116)	(10)	(24)	(150)	(65)	-	(1)	(216)
Profit before income tax	770	1,203	1,156	3,129	57	479	(51)	3,614
Income tax expense and non-controlling interests	(213)	(337)	(315)	(865)	(11)	9	(39)	(906)
Cash profit	557	866	841	2,264	46	488	(90)	2,708
Individual credit impairment (charge)/release	(113)	(67)	(23)	(203)	(86)	-	(1)	(290)
Collective credit impairment (charge)/release	(3)	57	(1)	53	21	-	-	74
Net loans & advances	30,230	84,191	18,529	132,950	8,782	-	254	141,986
Customer deposits	86,438	730	81,374	168,542	14,433	-	151	183,126
Risk weighted assets	38,601	90,553	54,348	183,502	7,307	-	477	191,286
September 2015 Full Year vs September 2014 Full Year
Net interest income	3%	-1%	5%	2%	19%	40%	0%	4%
Other operating income	3%	14%	-8%	-2%	14%	25%	large	5%
Operating income	3%	1%	-2%	0%	17%	25%	large	4%
Operating expenses	10%	11%	12%	11%	13%	0%	-33%	10%
Profit before credit impairment and income tax	-3%	-4%	-15%	-8%	43%	25%	-98%	-1%
Credit impairment (charge)/release	-73%	large	100%	35%	45%	n/a	large	37%
Profit before income tax	8%	-13%	-17%	-10%	40%	25%	-100%	-3%
Income tax expense and non-controlling interests	8%	-17%	-19%	-12%	64%	large	33%	-7%
Cash profit	8%	-12%	-17%	-9%	35%	21%	-42%	-2%
Individual credit impairment (charge)/release	-46%	58%	large	5%	-9%	n/a	large	0%
Collective credit impairment (charge)/release	large	large	0%	-77%	large	n/a	n/a	large
Net loans & advances	-13%	11%	26%	8%	25%	n/a	-9%	9%
Customer deposits	11%	16%	8%	10%	23%	n/a	4%	11%
Risk weighted assets	-8%	14%	11%	9%	24%	n/a	large	10%

58

DIVISIONAL RESULTS

International and Institutional Banking

Andrew Géczy

September 2015 Half Year

	Global	Global
	Transaction	Loans &	Global	Global	Retail Asia	Asia	Central
AUD M	Banking	Advisory	Markets	Products	Pacific	Partnerships	Functions	IIB Total
Net interest income	479	797	594	1,870	283	(4)	(3)	2,146
Other operating income	415	93	448	956	212	304	15	1,487
Operating income	894	890	1,042	2,826	495	300	12	3,633
Operating expenses	(474)	(295)	(648)	(1,417)	(399)	(4)	(25)	(1,845)
Profit before credit impairment and income tax	420	595	394	1,409	96	296	(13)	1,788
Credit impairment (charge)/release	(13)	(94)	(9)	(116)	(83)	-	2	(197)
Profit before income tax	407	501	385	1,293	13	296	(11)	1,591
Income tax expense and non-controlling interests	(110)	(133)	(105)	(348)	(7)	(6)	(25)	(386)
Cash profit	297	368	280	945	6	290	(36)	1,205
Individual credit impairment (charge)/release	(42)	(73)	(8)	(123)	(69)	-	1	(191)
Collective credit impairment (charge)/release	29	(21)	(1)	7	(14)	-	1	(6)
Net loans & advances	26,354	93,851	23,366	143,571	10,940	-	230	154,741
Customer deposits	96,172	849	87,622	184,643	17,695	-	157	202,495
Risk weighted assets	35,676	103,315	60,378	199,369	9,096	-	1,361	209,826
March 2015 Half Year
Net interest income	478	778	505	1,761	262	(3)	7	2,027
Other operating income	427	67	737	1,231	199	311	18	1,759
Operating income	905	845	1,242	2,992	461	308	25	3,786
Operating expenses	(463)	(275)	(633)	(1,371)	(383)	(4)	(13)	(1,771)
Profit before credit impairment and income tax	442	570	609	1,621	78	304	12	2,015
Credit impairment (charge)/release	(18)	(29)	(39)	(86)	(11)	-	(1)	(98)
Profit before income tax	424	541	570	1,535	67	304	11	1,917
Income tax expense and non-controlling interests	(119)	(147)	(149)	(415)	(11)	(5)	(27)	(458)
Cash profit	305	394	421	1,120	56	299	(16)	1,459
Individual credit impairment (charge)/release	(19)	(33)	(39)	(91)	(9)	-	-	(100)
Collective credit impairment (charge)/release	1	4	-	5	(2)	-	(1)	2
Net loans & advances	32,801	91,129	22,150	146,080	10,160	-	277	156,517
Customer deposits	92,875	792	91,066	184,733	16,233	-	158	201,124
Risk weighted assets	41,512	96,362	59,676	197,550	8,145	-	559	206,254
September 2015 Half Year vs March 2015 Half	Year
Net interest income	0%	2%	18%	6%	8%	33%	large	6%
Other operating income	-3%	39%	-39%	-22%	7%	-2%	-17%	-15%
Operating income	-1%	5%	-16%	-6%	7%	-3%	-52%	-4%
Operating expenses	2%	7%	2%	3%	4%	0%	92%	4%
Profit before credit impairment and income tax	-5%	4%	-35%	-13%	23%	-3%	large	-11%
Credit impairment (charge)/release	-28%	large	-77%	35%	large	n/a	large	large
Profit before income tax	-4%	-7%	-32%	-16%	-81%	-3%	large	-17%
Income tax expense and non-controlling interests	-8%	-10%	-30%	-16%	-36%	20%	-7%	-16%
Cash profit	-3%	-7%	-33%	-16%	-89%	-3%	large	-17%
Individual credit impairment (charge)/release	large	large	-79%	35%	large	n/a	n/a	91%
Collective credit impairment (charge)/release	large	large	n/a	40%	large	n/a	large	large
Net loans & advances	-20%	3%	5%	-2%	8%	n/a	-17%	-1%
Customer deposits	4%	7%	-4%	0%	9%	n/a	-1%	1%
Risk weighted assets	-14%	7%	1%	1%	12%	n/a	large	2%

59

DIVISIONAL RESULTS

International and Institutional Banking

Andrew Géczy

Analysis of Global Markets operating income

Composition of Global Markets operating income by business activity Sales1 Trading2 Balance sheet3	Half Year Sep 15 $M Mar 15 $M Movt 601 689 -13% 308 297 4% 133 256 -48%	Full Year
		Sep 15 $M Sep 14 $M Movt 1,290 1,208 7% 605 566 7% 389 554 -30%
Global Markets operating income	1,042 1,242 -16%	2,284 2,328 -2%

1. Sales represents direct client flow business on core products such as fixed income, FX, commodities and capital markets. 2.

• Trading primarily represents management of the Group’s strategic positions and those taken as part of direct client sales flow.

3. Balance sheet represents hedging of interest rate risk on the Group’s loan and deposit books and the management of the Group’s liquidity portfolio.

Composition of Global Markets operating income by geography Australia Asia Pacific, Europe & America New Zealand	Sep 15 $M 402 482 158	Half Year
Global Markets operating income	1,042	1,242 -16% 2,284 2,328 -2%

2015 has been characterised by higher volatility driven by the strengthening of the US dollar and timing of US interest rate announcements, falling commodity prices and growing uncertainty surrounding the global economy. The resulting volatility in global financial markets increased customer activity and created trading opportunities with increased demand for Foreign Exchange, Commodities and Rate products. The second half results were impacted by widening of credit spreads and significant market dislocation in the fourth quarter.

• Rates income increased 39% with increased customer hedging activity in the prevailing lower interest rate environment.

• Credit income decreased 23% as European debt and Chinese economic concerns drove widening credit spreads, impacting the value of Asian and European bonds.

• Balance Sheet income decreased 30% driven by widening credit spreads towards the end of the year.

 September 2015 v March 2015

Global Markets operating income decreased by $200 million (16%):

• September 2015 v September 2014

Global Markets operating income decreased by $44 million (2%):

• Sales income increased 7%, with global volatility increasing demand for Foreign Exchange, Commodities and Rates products.

• Foreign Exchange income increased 7%, with increased customer activity.

• Commodities income increased 52%, with continued demand for gold from Asian clients and falling commodity prices.

• Sales income decreased by 13% due to relatively lower levels of volatility and customer seasonality.

• Foreign Exchange income decreased 13% impacted by lower customer activity.

• Rates income decreased 27% with many clients having taken the opportunity of the low interest rate environment to lock in their hedging profiles in the March 2015 half.

• Balance Sheet income decreased 48% and Credit income decreased 28% as credit spreads widened.

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DIVISIONAL RESULTS

International and Institutional Banking Andrew Géczy

Market risk

Traded market risk

Below are aggregate Value at Risk (VaR) exposures at 99% confidence level covering both physical and derivative trading positions for the Bank’s principal trading centres. All figures are in AUD.

99% confidence level (1 day holding period)

Value at Risk at 99% confidence Foreign exchange Interest rate Credit Commodities Equity Diversification benefit	High for Low for Avg for High for Low for Avg for As at year year year As at year year year Sep 15 Sep 15 Sep 15 Sep 15 Sep 14 Sep 14 Sep 14 Sep 14 $M $M $M $M $M $M $M $M 5.0 18.2 2.8 7.9 11.9 18.5 1.7 8.9 10.1 20.2 4.8 9.3 10.4 16.6 3.8 8.1 3.5 5.4 2.9 3.8 5.8 5.8 2.7 3.8 1.6 3.6 1.3 2.4 2.0 2.8 0.9 1.4 2.5 6.3 0.1 1.1 1.3 2.5 0.4 1.0 (6.0) n/a n/a (13.2) (18.6) n/a n/a (10.5)
Total VaR	16.7 19.7 6.9 11.3 12.8 22.9 5.5 12.7

Non-traded interest rate risk

Non-traded interest rate risk is managed by Global Markets and relates to the potential adverse impact of changes in market interest rates on future net interest income for the Group. Interest rate risk is reported using various techniques including VaR and scenario analysis to a 1% rate shock.

99% confidence level (1 day holding period)

Value at Risk at 99% confidence Australia New Zealand Asia Pacific, Europe & America Diversification benefit	High for Low for Avg for High for Low for Avg fo As at year year year As at year year yea Sep 15 Sep 15 Sep 15 Sep 15 Sep 14 Sep 14 Sep 14 Sep 14 $M $M $M $M $M $M $M $M 25.4 38.5 21.2 27.2 41.8 64.5 39.1 50.1 9.7 11.4 8.9 10.2 8.9 11.4 8.9 10.4 14.4 14.4 7.9 10.4 9.1 10.6 8.9 9.8 (16.8) n/a n/a (14.8) (13.4) n/a n/a (13.7
Total VaR	32.7 37.4 28.6 33.0 46.4 76.3 43.3 56.6

Impact of 1% rate shock on the next 12 months’ net interest income[1 ]

As at period end Maximum exposure Minimum exposure Average exposure (in absolute terms)	As at
	Sep 15 Sep 14 0.61% 0.97% 1.36% 1.48% 0.45% 0.74% 0.93% 1.12%

1. The impact is expressed as a percentage of net interest income. A positive result indicates that a rate increase is positive for net interest income. Conversely, a negative indicates a rate increase is negative for net interest income.

61

DIVISIONAL RESULTS

New Zealand David Hisco

The New Zealand division comprises Retail and Commercial business units. New Zealand’s results and commentary are reported in NZD. AUD results are shown on page 67.

Cash profit – September 2015 Full Year v September 2014 Full Year

==> picture [529 x 164] intentionally omitted <==

New Zealand is a core market and ANZ is well positioned with its market leading network coverage and super regional connections. We maintained our momentum and have continued to grow our market share in key products[1] during 2015, including mortgage lending, business lending, credit cards and deposits. Our gross impaired assets ratio has reduced due to improved credit quality across the portfolio and our operating expenses to operating income ratio continued to trend downwards, due to revenue growth and continued benefits from our simplification strategy. Our vision is to help New Zealanders achieve more by offering unrivalled connections across the region and the best combination of convenience, service and price. We remain well placed to deliver this.

Retail[2]

We have grown customer numbers in 2015 and are now the biggest mortgage lender[3] across all major cities and we are earning more revenue per FTE. We delivered new digital functionality for our customers, and our mobile banking application (goMoney™) was consistently rated either 98% or 99% for customer satisfaction[4] . Our focus on having the best people in the right locations is paying off, with growth in the key Auckland and Christchurch markets and the migrant and Small Business Banking customer segments.

Commercial

We have continued to see lending growth in our Commercial business. Portfolio quality and supporting existing customers has been the key focus in the Agri market. Our network of frontline specialists has played a leading role in delivering business and industry specific insights. Our focus on simplification continues and projects, including loan document simplification and process reengineering, have improved efficiency for staff and made banking easier for our customers.

 September 2015 v September 2014

Cash profit increased 3%, primarily driven by an improvement in net interest income and disciplined expense management, partially offset by high credit impairment charges.

Key factors affecting the result were:

• Net interest income increased 5%, primarily due to above system growth in lending[1] . Average gross loans and advances grew 6%, with growth across both the housing and non-housing portfolios. Margins were broadly flat, despite competitive market conditions.

• Other operating income increased 4% driven by increased sales of KiwiSaver and insurance products via the branch network.

• Operating expenses increased 2% driven by inflationary impacts and investment activity partly offset by productivity measures.

• Credit impairment charges increased NZD 68 million from a net release of NZD 9 million in 2014 to a charge of NZD 59 million in 2015. The individual credit impairment charge decreased 16% reflecting lower levels of new and top-up provisions, partially offset by lower write-backs in Commercial. The collective provision was NZD 79 million higher due to portfolio growth, a lower release of economic overlay provisions and reduced rate of improvement in credit quality compared to 2014.

 September 2015 v March 2015

Cash profit increased by 1% with lending driven growth in income and disciplined expense management partially offset by higher credit impairment charges.

Key factors affecting the result were:

• Net interest income increased 1%, due to lending growth. Average gross loans and advances grew 4%, with growth across both the housing and non-housing portfolios. Net interest margin contracted 8 bps driven by the impact of capital notes issued late in the first half, lending competition and unfavourable lending mix with customers continuing to favour lower margin fixed rate products.

• Other operating income increased 3% driven by increased investment management and insurance commission revenues in Retail.

• Operating expenses decreased 1% with productivity gains more than offsetting inflationary and investment impacts.

• Credit impairment charges increased NZD 19 million. The individual credit impairment charge increased 52% due to higher new provisions and lower write-backs in Commercial. The collective provision charge was NZD 7 million higher due to portfolio growth.

• 1.2. Retail now includes Small Business Banking which was previously included Source: RBNZ August 2015. in Commercial.

3. Source: Core Logic (mortgage registrations) September 2015.

4. Source: Camorra (rolling 6 month average) Retail Market Monitor.

62

DIVISIONAL RESULTS

New Zealand David Hisco

Table reflects NZD for New Zealand AUD results shown on page 67

Net interest income Other operating income	Half Year Sep 15 NZD M Mar 15 NZD M Movt 1,257 1,241 1% 201 196 3%	Half Year Sep 15 NZD M Mar 15 NZD M Movt 1,257 1,241 1% 201 196 3%	Full Year
			Sep 15 NZD M Sep 14 NZD M Movt 2,498 2,372 5% 397 382 4%
	1,257
	201
Operating income Operating expenses	1,458		2,895 2,754 5% (1,148) (1,127) 2%
Profit before credit impairment and income tax Credit impairment (charge)/release	886		1,747 1,627 7% (59) 9 large
Profit before income tax Income tax expense and non-controlling interests	847		1,688 1,636 3% (473) (459) 3%
Cash profit	610	605 1%	1,215 1,177 3%
Consisting of: Retail1 Commercial1 Other		365 1% 241 -2% (1) large	734 673 9% 478 501 -5% 3 3 0%
	369
	237
	4
Cash profit	610	605 1%	1,215 1,177 3%
Balance Sheet Net loans & advances Other external assets		99,518 5% 3,699 -5%	104,756 96,555 8% 3,514 3,791 -7%
	104,756
	3,514
External assets	108,270	103,217 5%	108,270 100,346 8%
Customer deposits Other deposits and borrowings	65,689	61,427 7% 6,273 -21%	65,689 57,621 14% 4,963 6,057 -18%
	4,963
Deposits and other borrowings Other external liabilities	70,652	67,700 4% 19,748 9%	70,652 63,678 11% 21,501 18,313 17%
	21,501
External liabilities	92,153	87,448 5%	92,153 81,991 12%
Risk weighted assets Average gross loans and advances Average deposits and other borrowings Ratios Return on assets Net interest margin Operating expenses to operating income Operating expenses to average assets	59,024		59,024 54,620 8% 100,452 94,810 6% 68,116 61,050 12% 1.17% 1.20% 2.48% 2.49% 39.7% 40.9% 1.11% 1.15%
	102,629
	69,602
Individual credit impairment charge/(release) Individual credit impairment charge/(release) as a % of average GLA Collective credit impairment charge/(release) Collective credit impairment charge/(release) as a % of average GLA Gross impaired assets Gross impaired assets as a % of GLA	35 23 52% 0.07% 0.05% 4 (3) large 0.01% (0.01%) 372 443 -16% 0.35% 0.44%		58 69 -16% 0.06% 0.07% 1 (78) large 0.00% (0.08%) 372 597 -38% 0.35% 0.61%
Total full time equivalent staff (FTE)	5,068 5,090 0%		5,068 5,059 0%

1. Retail now includes Small Business Banking which was previously included in Commercial. Comparative information has been restated.

63

DIVISIONAL RESULTS

New Zealand David Hisco

Individual credit impairment charge/(release) Retail1 Home Loans Other Commercial1	Half Year Sep 15 NZD M Mar 15 NZD M Movt 29 25 16% 4 2 100% 25 23 9% 6 (2) large	Full Year
		Sep 15 NZD M Sep 14 NZD M Movt 54 87 -38% 6 34 -82% 48 53 -9% 4 (18) large
Individual credit impairment charge/(release)	35 23 52%	58 69 -16%
Collective credit impairment charge/(release) Retail1 Home Loans Other Commercial1	Half Year Sep 15 NZD M Mar 15 NZD M Movt 7 (3) large (3) (2) 50% 10 (1) large (3) - n/a	Full Year
		Sep 15 NZD M Sep 14 NZD M Movt 4 (24) large (5) (20) -75% 9 (4) large (3) (54) -94%
Collective credit impairment charge/(release)	4 (3) large	1 (78) large
Total credit impairment charge/(release)	39 20 95%	59 (9) large
Net loans and advances Retail1 Home Loans Other Commercial1 Other	Half Year Sep 15 NZD M Mar 15 NZD M Movt 65,228 61,917 5% 61,314 58,152 5% 3,914 3,765 4% 39,334 37,601 5% 194 - n/a	Full Year
		Sep 15 NZD M Sep 14 NZD M Movt 65,228 59,999 9% 61,314 56,361 9% 3,914 3,638 8% 39,334 36,556 8% 194 - n/a
Net loans and advances	104,756 99,518 5%	104,756 96,555 8%
Customer deposits Retail1 Commercial1	Half Year Sep 15 NZD M Mar 15 NZD M Movt 53,407 49,834 7% 12,282 11,593 6%	Full Year
		Sep 15 NZD M Sep 14 NZD M Movt 53,407 46,792 14% 12,282 10,829 13%
Customer deposits	65,689 61,427 7%	65,689 57,621 14%

1. Retail now includes Small Business Banking which was previously included in Commercial. Comparative information has been restated.

64

DIVISIONAL RESULTS

New Zealand

David Hisco

Retail

Small Business Banking was previously presented as part of the Commercial business unit and is now presented as part of the Retail business unit. Comparative information has been restated.

Net interest income Other operating income	Half Year Sep 15 NZD M Mar 15 NZD M Movt 794 781 2% 195 187 4%	Full Year
		Sep 15 NZD M Sep 14 NZD M Movt 1,575 1,499 5% 382 370 3%
Operating income Operating expenses	989 968 2% (439) (440) 0%	1,957 1,869 5% (879) (870) 1%
Profit before credit impairment and income tax Credit impairment (charge)	550 528 4% (36) (22) 64%	1,078 999 8% (58) (63) -8%
Profit before income tax Income tax expense and non-controlling interests	514 506 2% (145) (141) 3%	1,020 936 9% (286) (263) 9%
Cash profit	369 365 1%	734 673 9%
Customer deposits Risk weighted assets	53,407 49,834 7% 29,029 27,914 4%	53,407 46,792 14% 29,029 28,350 2%

Individual credit impairment charge/(release) Home Loans Other	Half Year Sep 15 NZD M Mar 15 NZD M Movt 4 2 100% 25 23 9%	Full Year
		Sep 15 NZD M Sep 14 NZD M Movt 6 34 -82% 48 53 -9%
Individual credit impairment charge/(release)	29 25 16%	54 87 -38%
Collective credit impairment charge/(release) Home Loans Other	(3) (2) 50% 10 (1) large	(5) (20) -75% 9 (4) large
Collective credit impairment charge/(release)	7 (3) large	4 (24) large
Total credit impairment charge/(release)	36 22 64%	58 63 -8%
Net loans & advances Home Loans Other	Half Year Sep 15 NZD M Mar 15 NZD M Movt 61,314 58,152 5% 3,914 3,765 4%	Full Year
		Sep 15 NZD M Sep 14 NZD M Movt 61,314 56,361 9% 3,914 3,638 8%
Net loans & advances	65,228 61,917 5%	65,228 59,999 9%

65

DIVISIONAL RESULTS

New Zealand David Hisco

Commercial1

Net interest income Other operating income		Half Year	Half Year
Operating income Operating expenses	461 460 0% 921 875 5% (130) (126) 3% (256) (251) 2%
Profit before credit impairment and income tax Credit impairment (charge)/release	331 334 -1% 665 624 7% (3) 2 large (1) 72 large
Profit before tax Income tax expense and non-controlling interests	328 336 -2% 664 696 -5% (91) (95) -4% (186) (195) -5%
Cash profit	237	241	-2% 478 501 -5%
Net loans & advances Customer deposits Risk weighted assets		37,601 11,593 26,403	5% 39,334 36,556 8% 6% 12,282 10,829 13% 11% 29,224 25,588 14%
	39,334
	12,282
	29,224
Individual credit impairment charge/(release) Collective credit impairment charge/(release)		Half Year
Total credit impairment charge/(release)	3 (2) large 1 (72) large

1. Retail now includes Small Business Banking which was previously included in Commercial. Comparative information has been restated.

66

DIVISIONAL RESULTS

New Zealand David Hisco

Table reflects AUD for New Zealand NZD results shown on page 63

Net interest income Other operating income	Half Year Sep 15 $M Mar 15 $M Movt 1,155 1,161 -1% 185 183 1%	Half Year Sep 15 $M Mar 15 $M Movt 1,155 1,161 -1% 185 183 1%	Full Year
			Sep 15 $M Sep 14 $M Movt 2,316 2,171 7% 368 349 5%
	1,155
	185
Operating income Operating expenses	1,340		2,684 2,520 7% (1,064) (1,031) 3%
Profit before credit impairment and income tax Credit impairment (charge)/release	815		1,620 1,489 9% (55) 8 large
Profit before income tax Income tax expense and non-controlling interests	779		1,565 1,497 5% (438) (419) 5%
Cash profit	561	566 -1%	1,127 1,078 5%
Consisting of: Retail1 Commercial1 Other		341 0% 226 -4% (1) large	681 617 10% 443 460 -4% 3 1 large
	340
	217
	4
Cash profit	561	566 -1%	1,127 1,078 5%
Balance Sheet Net loans & advances Other external assets		97,679 -3% 3,631 -12%	95,211 86,063 11% 3,194 3,380 -6%
	95,211
	3,194
External assets	98,405	101,310 -3%	98,405 89,443 10%
Customer deposits Other deposits and borrowings	59,703	60,293 -1% 6,157 -27%	59,703 51,360 16% 4,511 5,399 -16%
	4,511
Deposits and other borrowings Other external liabilities	64,214	66,450 -3% 19,383 1%	64,214 56,759 13% 19,543 16,323 20%
	19,543
External liabilities	83,757	85,833 -2%	83,757 73,082 15%
Risk weighted assets Average gross loans and advances Average deposits and other borrowings Ratios Return on assets Net interest margin Operating expenses to operating income Operating expenses to average assets	53,646		53,646 48,682 10% 93,138 86,737 7% 63,157 55,852 13% 1.17% 1.20% 2.48% 2.49% 39.7% 40.9% 1.11% 1.15%
	94,362
	63,996
Individual credit impairment charge/(release) Individual credit impairment charge/(release) as a % of average GLA Collective credit impairment charge/(release) Collective credit impairment charge/(release) as a % of average GLA Gross impaired assets Gross impaired assets as a % of GLA	32 22 45% 0.07% 0.05% 4 (3) large 0.01% (0.01%) 338 434 -22% 0.35% 0.44%		54 63 -14% 0.06% 0.07% 1 (71) large 0.00% (0.08%) 338 532 -36% 0.35% 0.61%
Total full time equivalent staff (FTE)	5,068 5,090 0%		5,068 5,059 0%

1. Retail now includes Small Business Banking which was previously included in Commercial. Comparative information has been restated.

67

DIVISIONAL RESULTS

Global Wealth

Joyce Phillips

The Global Wealth division comprises Funds Management, Insurance and Private Wealth business units which provide wealth solutions to customers across the Asia Pacific region.

Cash profit – September 2015 Full Year v September 2014 Full Year

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Global Wealth provides a range of innovative solutions to customers across the Asia Pacific region to make it easier for them to connect with, protect and grow their wealth. Global Wealth serves over 2.4 million customers and manages $65 billion in investment and retirement savings. Customers can access ANZ’s wealth solutions through teams of qualified financial planners and advisers, innovative digital platforms, ANZ Private Bankers, ANZ branches and direct channels.

Global Wealth continues to deliver innovative solutions that are aligned to ANZ’s strategy to improve customer experience. We developed Grow[TM] - a series of innovations across the physical, digital and advice space to help our customers better connect with, protect and grow their financial well-being. These include ANZ Smart Choice Super, a simple and direct retirement savings solution; the ANZ Grow Centre, a destination that blends digital tools with physical wealth specialists, where customers can get help with everything from their digital device to financial advice; and Grow by ANZ[TM] , our award winning digital app that brings banking, share investments, superannuation and insurance, together in one place.

Funds Management

The Funds Management business helps customers grow their wealth through investment (including direct shares via E*TRADE), superannuation and pension solutions. Global Wealth has embraced the changing regulatory environment to reshape the business, simplifying operational processes and delivering innovative solutions like ANZ Smart Choice Super and ANZ KiwiSaver.

Insurance

The Insurance business provides protection for all life stages through a comprehensive range of life and general insurance products distributed through intermediated and direct channels. Global Wealth’s focus on retail risk resulted in a 9% growth in individual in-force premiums, while continued investment in retention initiatives in Australia reduced retail lapse rates by 20 bps.

Private Wealth

Operating in six geographies across the region we continue to strengthen our Private Wealth offerings by building core investment advice capabilities and developing a suite of global investment solutions.

September 2015 v September 2014

Cash profit increased by 11%. Excluding a $56 million one-off tax consolidation benefit in September 2015 and the $64 million net impact of the ANZ Trustees sale and subsequent investment in productivity initiatives in September 2014, cash profit increased by 14%.

Key factors affecting the result were:

• Funds Management income increased by 6%. This was driven by 10% growth in average FUM (excluding Private Wealth FUM) as a result of solid volume growth in the ANZ Smart Choice Super and ANZ KiwiSaver products. Funds Management margins remain under pressure, in line with broader industry experience.

• Insurance income increased by 18%. September 2014 full year results included a one-off $47 million experience loss due to the exit of a Group Life Insurance plan. Excluding this, Insurance income grew by 9% reflecting solid in-force premium growth and lower lapse rates. This performance contributed to an 18% uplift in the Embedded Value (gross of transfers).

• Excluding the gain on sale from ANZ Trustees and related income in September 2014, Private Wealth income increased by 12%. This was driven by improved volumes with strong growth in customer deposits and investment FUM, up by 33% and 22% respectively.

• Operating expenses decreased by 3%. Excluding the net impact of ANZ Trustees related expenses and the write-down of intangibles in September 2014, expenses increased by 2%. This was driven by higher regulatory and compliance expenses.

September 2015 v March 2015

Cash profit increased by 32%. Excluding the $56 million one-off tax consolidation benefit, cash profit increased 10%.

Key factors affecting the result were:

• Funds Management income increased by 2% driven by 4% growth in average FUM (excluding Private Wealth FUM), partly offset by a shift in business towards lower margin products, consistent with broader industry experience.

• Insurance income increased by 5%, driven by growth in in-force premiums and stable claims experience.

• Private Wealth income increased by 2%. This was driven by increased volumes with customer deposits and net loans and advances growing by 6% and 5%, respectively.

• Operating expenses decreased by 1%, despite additional regulatory and compliance costs.

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DIVISIONAL RESULTS

Global Wealth Joyce Phillips

Net interest income Other operating income1 Net funds management and insurance income	Half Year Sep 15 $M Mar 15 $M Movt 90 88 2% 94 97 -3% 696 665 5%	Full Year
		Sep 15 $M Sep 14 $M Movt 178 168 6% 191 328 -42% 1,361 1,249 9%
Operating income Operating expenses	880 850 4% (486) (489) -1%	1,730 1,745 -1% (975) (1,004) -3%
Profit before credit impairment and income tax Credit impairment (charge)/release	394 361 9% (1) 1 large	755 741 2% - 2 -100%
Profit before income tax Income tax expense and non-controlling interests	393 362 9% (51) (103) -50%	755 743 2% (154) (201) -23%
Cash profit	342 259 32%	601 542 11%
Consisting of: Business Units Funds Management Insurance Private Wealth1 Corporate and Other2,3	79 78 1% 153 143 7% 50 43 16% 60 (5) large	157 120 31% 296 224 32% 93 181 -49% 55 17 large
Total Global Wealth	342 259 32%	601 542 11%
Australia New Zealand Asia Pacific, Europe & America	281 199 41% 64 62 3% (3) (2) 50%	480 409 17% 126 127 -1% (5) 6 large
Total Global Wealth	342 259 32%	601 542 11%
Income from invested capital4	59 55 7%	114 108 6%
Key metrics Funds under management Average funds under management In-force premiums Net loans and advances Customer deposits Average gross loans and advances Average customer deposits	65,392 68,405 -4% 66,993 64,615 4% 2,217 2,154 3% 6,468 6,163 5% 18,467 17,357 6% 6,157 5,725 8% 17,922 15,639 15%	65,392 61,411 6% 65,805 61,329 7% 2,217 2,038 9% 6,468 5,678 14% 18,467 13,844 33% 5,941 5,936 0% 16,784 12,692 32%
Ratios Operating expenses to operating income Funds Management expenses to average FUM5 Australia New Zealand Insurance expenses to in-force premiums Australia New Zealand Retail Insurance lapse rates Australia6 New Zealand	55.2% 57.5% 0.51% 0.51% 0.28% 0.31% 10.1% 10.4% 35.4% 32.1% 14.0% 12.6% 16.8% 14.3%	56.4% 57.5% 0.51% 0.59% 0.29% 0.38% 10.1% 11.2% 34.4% 35.4% 13.3% 13.5% 15.8% 16.1%
Total full time equivalent staff (FTE)	2,489 2,538 -2%	2,489 2,290 9%
Aligned adviser numbers7	1,819 1,823 0%	1,819 2,022 -10%

1. Other operating income within Private Wealth for September 2014 includes a $125 million gain on the sale of ANZ Trustees.

2. Corporate and Other includes a one-off tax consolidation benefit of $56 million in September 2015.

3.

• Includes a $26 million cross border settlement of an insurance claim in September 2014 involving both Australia and New Zealand on a net basis. For statutory purposes, the individual components of this settlement have been recognised in their respective geographies.

4. Income from invested capital represents after tax revenue generated from investing all Insurance and Funds Management business' capital balances held for regulatory purposes. The invested capital as at 30 September 2015 was $3.6 billion (Mar 15: $3.6 billion, Sep 14: $3.3 billion), which comprises fixed interest securities of 49% and cash deposits of 51% (Mar 15: 49% fixed interest securities and 51% cash deposits, Sep 14: 49% fixed interest securities and 51% cash deposits).

5.

Funds Management expense and FUM only relates to Pensions & Investments business.

6. A definition change to the retail insurance lapse rate has been implemented to reflect the inclusion of partial premium reductions within the policy renewal period. Comparatives have been restated to align with the revised methodology.

7. Includes corporate authorised representatives of dealer groups wholly or partially owned by ANZ Wealth and ANZ Group financial planners. Prior period aligned adviser numbers included authorised representatives of a dealer group no longer partially owned by ANZ Wealth (Sep 14: 211).

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DIVISIONAL RESULTS

Global Wealth

Joyce Phillips

Major business units

Funds Management Net interest income Other operating income Funds management income Funds management volume related expenses	Half Year Sep 15 $M Mar 15 $M Movt 15 15 0% 35 37 -5% 437 431 1% (197) (199) -1%	Full Year
		Sep 15 $M Sep 14 $M Movt 30 33 -9% 72 67 7% 868 835 4% (396) (396) 0%
Operating income Operating expenses	290 284 2% (182) (173) 5%	574 539 6% (355) (371) -4%
Profit before income tax Income tax expense and non-controlling interests	108 111 -3% (29) (33) -12%	219 168 30% (62) (48) 29%
Cash profit	79 78 1%	157 120 31%

Insurance Net interest income Other operating income Insurance income Insurance volume related expenses	Half Year Sep 15 $M Mar 15 $M Movt 15 17 -12% 35 32 9% 465 437 6% (167) (154) 8%	Full Year
		Sep 15 $M Sep 14 $M Movt 32 29 10% 67 57 18% 902 763 18% (321) (272) 18%
Operating income Operating expenses	348 332 5% (136) (134) 1%	680 577 18% (270) (270) 0%
Profit before income tax Income tax expense and non-controlling interests	212 198 7% (59) (55) 7%	410 307 34% (114) (83) 37%
Cash profit	153 143 7%	296 224 32%

Private Wealth Net interest income Other operating income1 Net funds management income	Half Year Sep 15 $M Mar 15 $M Movt 81 79 3% 17 20 -15% 29 25 16%	Full Year
		Sep 15 $M Sep 14 $M Movt 160 142 13% 37 177 -79% 54 47 15%
Operating income Operating expenses	127 124 2% (54) (64) -16%	251 366 -31% (118) (119) -1%
Profit before credit impairment and income tax Credit impairment charge	73 60 22% (1) 1 large	133 247 -46% - 2 -100%
Profit before income tax Income tax expense and non-controlling interests	72 61 18% (22) (18) 22%	133 249 -47% (40) (68) -41%
Cash profit	50 43 16%	93 181 -49%

1. Other operating income for September 2014 includes a $125 million gain on the sale of ANZ Trustees.

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DIVISIONAL RESULTS

Global Wealth

Joyce Phillips

Insurance operating margin Life Insurance Planned profit margin Group & Individual Experience profit/(loss)1 Assumption changes2 General Insurance operating profit margin3	Half Year Sep 15 $M Mar 15 $M Movt 76 65 17% 1 4 -75% - - n/a 50 47 6%	Full Year
		Sep 15 $M Sep 14 $M Movt 141 116 22% 5 (36) large - - n/a 97 92 5%
Australia	127 116 9%	243 172 41%
Life Insurance Planned profit margin Individual Experience profit/(loss)1 Assumption changes2	23 24 -4% 3 3 0% - - n/a	47 42 12% 6 10 -40% - - n/a
New Zealand	26 27 -4%	53 52 2%
Total	153 143 7%	296 224 32%

1. Experience profit/(loss) variations are gains or losses arising from actual experience differing from plan.

2. Assumption changes are gains or losses arising from a change in valuation methods and best estimate assumptions.

3. General Insurance operating profit margin includes ANZ Lenders Mortgage Insurance.

Operating expenses by business unit Funds Management Insurance Private Wealth Corporate and Other	Half Year Sep 15 $M Mar 15 $M Movt 182 173 5% 136 134 1% 54 64 -16% 114 118 -3%	Half Year Sep 15 $M Mar 15 $M Movt 182 173 5% 136 134 1% 54 64 -16% 114 118 -3%	Full Year	Full Year
			Sep 15 $M Sep 14 $M Movt 355 371 -4% 270 270 0% 118 119 -1% 232 244 -5%
Total	486 489 -1%		975 1,004 -3%
Operating expenses by geographic region Australia New Zealand Asia Pacific, Europe & America	Half Year Sep 15 $M Mar 15 $M Movt 385 392 -2% 68 65 5% 33 32 3%		Full Year
			Sep 15 $M Sep 14 $M Movt 777 827 -6% 133 125 6% 65 52 25%
			777
			133
			65
Total	486 489 -1%		975	1,004 -3%
Funds under management Funds under management - average Funds under management - end of period		As at	Sep 14 $M 62,106 61,411	Movement
		Sep 15 $M Mar 15 $M 66,993 64,615 65,392 68,405		Sep 15 v. Mar 15 Sep 15 v. Sep 14 4% 8% -4% 6%
Composed of: Australian equities International equities Cash and fixed interest Property and infrastructure		16,124 18,040 17,596 18,533 27,653 27,583 4,019 4,249	16,744 16,164 24,937 3,566	-11% -4% -5% 9% 0% 11% -5% 13%
Total		65,392 68,405	61,411	-4% 6%
Funds under management by region Australia New Zealand		As at	Sep 14 $M 47,502 13,909	Movement
		Sep 15 $M Mar 15 $M 48,874 51,369 16,518 17,036		Sep 15 v. Mar 15 Sep 15 v. Sep 14 -5% 3% -3% 19%
Total		65,392 68,405	61,411	-4% 6%

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DIVISIONAL RESULTS

Global Wealth

Joyce Phillips

Global Wealth Joyce Phillips
	Sep 14	In-	Out-	Other1	Sep 15
Funds Management cash flows by product	$M	flows	flows		$M
OneAnswer	19,501	2,462	(2,479)	561	20,045
Other Personal Investment	5,768	1,064	(860)	17	5,989
Employer Super	14,566	2,206	(2,624)	196	14,344
Oasis	6,366	888	(946)	115	6,423
Private Wealth - Australia	1,301	872	(225)	125	2,073
KiwiSaver	5,162	1,679	(456)	432	6,817
Private Wealth - New Zealand	4,465	1,034	(675)	152	4,976
Other New Zealand	4,282	1,827	(1,834)	450	4,725
Total	61,411	12,032	(10,099)	2,048	65,392

1. Other includes investment income net of taxes, fees and charges, distributions and the impact of foreign currency translation.

Insurance annual in-force premiums Group Individual General Insurance2	As at Sep 15 $M Mar 15 $M Sep 14 $M 423 390 360 1,284 1,246 1,178 510 518 500	Movement Sep 15 v. Mar 14 Sep 15 v. Sep 14 8% 18% 3% 9% -2% 2% 3% 9% 4% 9% -4% 10% 3% 9% Lapses $M Sep 15 $M (11) 423 (132) 1,284 (160) 510 (303) 2,217 (288) 2,026 (15) 191 (303) 2,217 Zealand $M Total $M 504 3,883 26 207 45 366 27 31
Total	2,217 2,154 2,038
Insurance annual in-force premiums by region Australia New Zealand	2,026 1,955 1,865 191 199 173
Total	2,217 2,154 2,038
Insurance in-force book movement Group Individual General Insurance2	Sep 14 $M New business $M3 360 74 1,178 238 500 170
Total	2,038 482
Insurance in-force book movement by region Australia New Zealand	1,865 449 173 33
Total	2,038 482
2. General Insurance in-force premiums include ANZ Lenders Mortgage Insurance. 3 New business includes the impact of foreign currency translation. Embedded value and value of new business (insurance and investments only) Embedded value as at September 20144 Value of new business5 Expected return6 Experience deviations and assumption changes7	Australia $M New 3,379 181 321 4
Embedded value before economic assumption changes and net transfer Economic assumptions change8 Net transfer9	3,885 70 57	602 4,487 41 111 (89) (32)
Embedded value as at September 2015	4,012	554 4,566

4. Embedded value represents the present value of future profits and releases of capital arising from the business in-force at the valuation date, and adjusted net assets. It is determined using best estimate assumptions with franking credits included at 70% of face value. Projected cash flows have been discounted using capital asset pricing model risk discount rates of 7.75%-9.50%. ANZ Lenders Mortgage Insurance is not included in the valuation.

5. Value of new business represents the present value of future profits less the cost of capital arising from new business written over the period.

6. Expected return represents the expected increase in value over the period.

7.

Experience deviations and assumption changes arise from deviations and changes to best estimate assumptions underlying the prior period embedded value. The slightly favourable movement for the Australian business was primarily driven by favourable claim and lapse experience, partially offset by adverse investment markets and strengthening assumptions for the Retail Income Protection business. Favourable movement for the New Zealand business is primarily due to improved premium growth partially offset by higher lapse rate assumptions from the Life Insurance business.

8. Lower interest rates have led to a positive value impact for both the Australia and New Zealand businesses.

9. Net transfer represents the net capital movements over the period including capital injections, transfer of cash dividends and value of franking credits. There were $314 million of cash dividends and $123 million of franking credits transferred to the parent entity, partially offset by a $405 million capital injection from the parent entity.

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DIVISIONAL RESULTS

Global Technology, Services and Operations and Group Centre

GTSO and Group Centre provide support to the operating divisions, including technology, operations, shared services, property, risk management, financial management, strategy, marketing, human resources and corporate affairs. The Group Centre also includes Group Treasury and Shareholder Functions.

Net interest income1 Other operating income1	Half Year Sep 15 $M Mar 15 $M Movt 248 192 29% (205) (228) -10%	Full Year
		Sep 15 $M Sep 14 $M Movt 440 372 18% (433) (357) 21%
Operating income Operating expenses	43 (36) large (309) (238) 30%	7 15 -53% (547) (435) 26%
Profit before credit impairment and income tax Credit impairment (charge)/release	(266) (274) -3% (3) 1 large	(540) (420) 29% (2) 35 large
Profit before income tax Income tax expense and non-controlling interests	(269) (273) -1% 29 63 -54%	(542) (385) 41% 92 120 -23%
Cash profit/(loss)	(240) (210) 14%	(450) (265) 70%
Total full time equivalent staff (FTE)	25,236 25,595 -1%	25,236 25,326 0%

1. Includes offsetting variances between net interest and other income as a result of elimination entries associated with the consolidation of Global Wealth.

• September 2015 v September 2014

Key factors affecting the result were:

• Operating income decreased $8 million primarily due to increased realised revenue hedge losses partly offset by higher income generated from increased capital held in Group Centre.

• Operating expenses increased $112 million due to increased investment in enterprise projects, higher depreciation and amortisation and investment in the Global Compliance function.

• Credit impairment charges increased $37 million primarily due to the release of an economic cycle provision held in Group Centre in 2014.

 September 2015 v March 2015

Key factors affecting the result were:

• Operating income increased $79 million primarily due to higher income generated from capital held in Group Centre, partly offset by increased realised revenue hedges losses.

• Operating expenses increased $71 million primarily due to higher depreciation and amortisation and investment in the Global Compliance function.

• The decrease in FTE is primarily due to productivity initiatives in GTSO.

• The decrease in FTE is primarily due to productivity initiatives in GTSO partly offset by the build out of the Global Compliance function.

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GEOGRAPHIC RESULTS

CONTENTS

Section 6 – Geographic Results

Geographic performance Australia geography Asia Pacific, Europe & America geography New Zealand geography

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GEOGRAPHIC RESULTS

Geographic Performance

The Group's divisions operate across multiple geographies with components of the following divisional results reflected in each geography:

• Australia - comprises the Australia Division and the Australian operations of International and Institutional Banking (IIB); Global Wealth and GTSO and Group Centre divisions;

• Asia, Pacific, Europe & America (APEA) - comprises the APEA components of IIB, Global Wealth and GTSO and Group Centre divisions; and

• New Zealand - comprises the New Zealand Division and the New Zealand components of IIB, Global Wealth and GTSO and Group Centre divisions.

Statutory Profit Australia Asia Pacific, Europe & America New Zealand	Half Year Sep 15 $M Mar 15 $M Movt 2,674 1,964 36% 490 722 -32% 823 820 0%	Full Year
		Sep 15 $M Sep 14 $M Movt 4,638 4,492 3% 1,212 1,214 0% 1,643 1,565 5%
Total statutory profit	3,987 3,506 14%	7,493 7,271 3%

Cash Profit Australia Asia Pacific, Europe & America New Zealand	Half Year Sep 15 $M Mar 15 $M Movt 2,269 2,147 6% 492 743 -34% 779 786 -1%	Half Year Sep 15 $M Mar 15 $M Movt 2,269 2,147 6% 492 743 -34% 779 786 -1%	Full Year	Full Year
			Sep 15 $M Sep 14 $M Movt 4,416 4,362 1% 1,235 1,216 2% 1,565 1,539 2%
Total cash profit	3,540 3,676 -4%		7,216 7,117 1%
Net loans & advances Australia Asia Pacific, Europe & America New Zealand		As at		Movement Sep 15 v. Mar 15 Sep 15 v. Sep 14 5% 9% -4% 7% -3% 11% 2% 9% Movement Sep 15 v. Mar 15 Sep 15 v. Sep 14 5% 5% 0% 20% -2% 13% 2% 10% Movement Sep 15 v. Mar 15 Sep 15 v. Sep 14 7% 11% 1% 13% -1% 10% 4% 11%
Total net loans & advances1		570,238 558,203 521,752
Customer deposits Australia Asia Pacific, Europe & America New Zealand		As at Sep 15 $M Mar 15 $M Sep 14 $M 238,184 227,560 227,823 129,263 129,733 107,838 77,137 78,854 68,058
Total customer deposits		444,584 436,147 403,719
Risk weighted assets Australia Asia Pacific, Europe & America New Zealand		As at Sep 15 $M Mar 15 $M Sep 14 $M 224,830 209,981 203,235 109,842 108,953 96,874 67,265 67,929 61,420
Total risk weighted assets		401,937 386,863 361,529

1. Loans & advances as at 30 September 2015 include assets classified as held for sale.

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GEOGRAPHIC RESULTS

Australia geography

Net interest income Other operating income	Half Year Sep 15 $M Mar 15 $M Movt 5,151 4,881 6% 1,383 1,445 -4%	Full Year
		Sep 15 $M Sep 14 $M Movt 10,032 9,548 5% 2,828 2,934 -4%
Operating income Operating expenses	6,534 6,326 3% (2,861) (2,782) 3%	12,860 12,482 3% (5,643) (5,398) 5%
Profit before credit impairment and income tax Credit impairment charge	3,673 3,544 4% (444) (428) 4%	7,217 7,084 2% (872) (858) 2%
Profit before income tax Income tax expense and non-controlling interests	3,229 3,116 4% (960) (969) -1%	6,345 6,226 2% (1,929) (1,864) 3%
Cash profit Adjustments between statutory profit and cash profit	2,269 2,147 6% 405 (183) large	4,416 4,362 1% 222 130 71%
Statutory profit	2,674 1,964 36%	4,638 4,492 3%
Balance Sheet Net loans & advances1 Other external assets	381,222 362,830 5% 180,742 174,729 3%	381,222 348,537 9% 180,742 153,020 18%
External assets	561,964 537,559 5%	561,964 501,557 12%
Customer deposits Other deposits and borrowings	238,184 227,560 5% 92,771 87,669 6%	238,184 227,823 5% 92,771 71,342 30%
Deposits and other borrowings Other external liabilities	330,955 315,229 5% 188,877 179,421 5%	330,955 299,165 11% 188,877 161,809 17%
External liabilities	519,832 494,650 5%	519,832 460,974 13%
Risk weighted assets Average gross loans and advances1 Average deposits and other borrowings Ratios Net interest margin - cash Operating expenses to operating income - cash Operating expenses to average assets - cash	224,830 209,981 7% 377,090 358,774 5% 327,871 318,382 3% 2.27% 2.28% 43.8% 44.0% 1.03% 1.06%	224,830 203,235 11% 367,959 342,588 7% 323,140 296,915 9% 2.28% 2.39% 43.9% 43.2% 1.05% 1.13%
Individual credit impairment charge/(release) - cash Individual credit impairment charge/(release) as a % of average GLA1- cash Collective credit impairment charge/(release) - cash Collective credit impairment charge/(release) as a % of average GLA1- cash Gross impaired assets Gross impaired assets as a % of GLA1	430 375 15% 0.23% 0.21% 14 53 -74% 0.01% 0.03% 1,528 1,589 -4% 0.40% 0.43%	805 892 -10% 0.22% 0.26% 67 (34) large 0.02% (0.01%) 1,528 1,730 -12% 0.40% 0.49%
Total full time equivalent staff (FTE)	21,138 22,096 -4%	21,138 21,591 -2%

1. Loans & advances as at 30 September 2015 include assets classified as held for sale.

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GEOGRAPHIC RESULTS

Asia Pacific, Europe & America geography

Table reflects AUD for the APEA region

Net interest income Other operating income		Half Year
Operating income Operating expenses	2,003 2,053 -2% 4,056 3,654 11% (1,224) (1,120) 9% (2,344) (2,023) 16%
Profit before credit impairment and income tax Credit impairment charge	779 933 -17% 1,712 1,631 5% (209) (53) large (262) (139) 88%
Profit before income tax Income tax expense and non-controlling interests	570 880 -35% 1,450 1,492 -3% (78) (137) -43% (215) (276) -22%
Cash profit1 Adjustments between statutory profit and cash profit	492 743 -34% 1,235 1,216 2% (2) (21) -90% (23) (2) large
Statutory profit	490	722 -32% 1,212 1,214 0%
Balance Sheet Net loans & advances Other external assets		88,356 -4% 85,062 79,192 7% 96,512 10% 105,781 72,353 46%
	85,062
	105,781
External assets	190,843	184,868 3% 190,843 151,545 26%
Customer deposits Other deposits and borrowings	129,263	129,733 0% 129,263 107,838 20% 35,764 -21% 28,207 28,353 -1%
	28,207
Deposits and other borrowings Other external liabilities	157,470	165,497 -5% 157,470 136,191 16% 30,025 26% 37,698 25,834 46%
	37,698
External liabilities	195,168	195,522 0% 195,168 162,025 20%
Risk weighted assets Average gross loans and advances Average deposits and other borrowings Ratios Net interest margin - cash Operating expenses to operating income - cash Operating expenses to average assets - cash	109,842
	86,886
	156,228
Individual credit impairment charge/(release) - cash Individual credit impairment charge/(release) as a % of average GLA - cash Collective credit impairment charge/(release) - cash Collective credit impairment charge/(release) as a % of average GLA - cash Gross impaired assets Gross impaired assets as a % of GLA	190
Total full time equivalent staff (FTE)	20,910 20,910 0% 20,910 20,512 2%

1. Includes APEA components of IIB (Sep 15 half: $517 million; Mar 15 half: $771 million; Sep 14 full year: $1,239 million), Global Wealth (Sep 15 half: -$3 million; Mar 15 half: -$2 million; Sep 14 full year: $6 million) and GTSO and Group Centre (Sep 15 half: -$22 million; Mar 15 half: -$26 million; Sep 14 full year: -$29 million).

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GEOGRAPHIC RESULTS

Asia Pacific, Europe & America geography

Table reflects AUD results for the APEA regions

Statutory Profit Asia Europe & America Pacific		Half Year
	338
	77
	75
Total statutory profit	490	722 -32% 1,212 1,214 0%

Cash Profit Asia Europe & America Pacific		Half Year
	338
	79
	75
Total cash profit	492	743 -34% 1,235 1,216 2%

Net loans & advances Asia Europe & America Pacific	As at Sep 15 $M Mar 15 $M Sep 14 $M 73,236 76,459 68,733 7,697 8,006 6,923 4,129 3,891 3,536	Movement
		Sep 15 v. Mar 15 Sep 15 v. Sep 14 -4% 7% -4% 11% 6% 17%
Total net loans & advances	85,062 88,356 79,192	-4% 7%

Customer deposits Asia Europe & America Pacific	As at Sep 15 $M Mar 15 $M Sep 14 $M 73,495 72,335 62,776 50,129 51,936 40,307 5,639 5,462 4,755	Movement
		Sep 15 v. Mar 15 Sep 15 v. Sep 14 2% 17% -3% 24% 3% 19%
Total customer deposits	129,263 129,733 107,838	0% 20%
Risk weighted assets Asia Europe & America Pacific	As at Sep 15 $M Mar 15 $M Sep 14 $M 76,296 78,274 70,078 25,955 22,514 19,422 7,591 8,165 7,374	Movement
		Sep 15 v. Mar 15 Sep 15 v. Sep 14 -3% 9% 15% 34% -7% 3%
Total risk weighted assets	109,842 108,953 96,874	1% 13%

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GEOGRAPHIC RESULTS

Asia Pacific, Europe & America geography

Table reflects USD for the APEA region

Net interest income Other operating income	Half Year Sep 15 USD M Mar 15 USD M Movt 740 759 -3% 755 924 -18%	Full Year
		Sep 15 USD M Sep 14 USD M Movt 1,499 1,581 -5% 1,679 1,780 -6%
Operating income Operating expenses	1,495 1,683 -11% (920) (918) 0%	3,178 3,361 -5% (1,838) (1,861) -1%
Profit before credit impairment and income tax Credit impairment charge	575 765 -25% (161) (44) large	1,340 1,500 -11% (205) (128) 60%
Profit before income tax Income tax expense and non-controlling interests	414 721 -43% (55) (112) -51%	1,135 1,372 -17% (167) (253) -34%
Cash profit Adjustments between statutory profit and cash profit	359 609 -41% (1) (17) -94%	968 1,119 -13% (18) (2) large
Statutory profit	358 592 -40%	950 1,117 -15%
Balance Sheet Net loans & advances Other external assets	59,654 67,451 -12% 74,184 73,677 1%	59,654 69,309 -14% 74,184 63,323 17%
External assets	133,838 141,128 -5%	133,838 132,632 1%
Customer deposits Other deposits and borrowings	90,653 99,038 -8% 19,781 27,303 -28%	90,653 94,379 -4% 19,781 24,815 -20%
Deposits and other borrowings Other external liabilities	110,434 126,341 -13% 26,437 22,921 15%	110,434 119,194 -7% 26,437 22,610 17%
External liabilities	136,871 149,262 -8%	136,871 141,804 -3%
Risk weighted assets Average gross loans and advances Average deposits and other borrowings Ratios Net interest margin - cash Operating expenses to operating income - cash Operating expenses to average assets - cash	77,032 83,175 -7% 65,013 70,659 -8% 117,030 124,040 -6% 1.12% 1.10% 61.5% 54.6% 1.24% 1.19%	77,032 84,784 -9% 67,828 71,475 -5% 120,526 124,585 -3% 1.11% 1.17% 57.8% 55.4% 1.21% 1.23%
Individual credit impairment charge/(release) - cash Individual credit impairment charge/(release) as a % of average GLA - cash Collective credit impairment charge/(release) - cash Collective credit impairment charge/(release) as a % of average GLA - cash Gross impaired assets Gross impaired assets as a % of GLA	148 38 large 0.44% 0.11% 13 6 large 0.04% 0.02% 570 466 22% 0.95% 0.68%	186 162 15% 0.28% 0.23% 19 (34) large 0.03% (0.05%) 570 462 23% 0.95% 0.66%
Total full time equivalent staff (FTE)	20,910 20,910 0%	20,910 20,512 2%

80

GEOGRAPHIC RESULTS

New Zealand geography

Table reflects AUD results for the New Zealand geography

Net interest income Other operating income	Half Year Sep 15 $M Mar 15 $M Movt 1,341 1,330 1% 455 476 -4%	Full Year
		Sep 15 $M Sep 14 $M Movt 2,671 2,530 6% 931 912 2%
Operating income Operating expenses	1,796 1,806 -1% (680) (691) -2%	3,602 3,442 5% (1,371) (1,339) 2%
Profit before credit impairment and income tax Credit impairment charge	1,116 1,115 0% (42) (29) 45%	2,231 2,103 6% (71) 8 large
Profit before income tax Income tax expense and non-controlling interests	1,074 1,086 -1% (295) (300) -2%	2,160 2,111 2% (595) (572) 4%
Cash profit Adjustments between statutory profit and cash profit	779 786 -1% 44 34 29%	1,565 1,539 2% 78 26 large
Statutory profit	823 820 0%	1,643 1,565 5%
Balance Sheet Net loans & advances Other external assets	103,954 107,017 -3% 33,139 30,637 8%	103,954 94,023 11% 33,139 24,962 33%
External assets	137,093 137,654 0%	137,093 118,985 15%
Customer deposits Other deposits and borrowings	77,137 78,854 -2% 5,232 7,635 -31%	77,137 68,058 13% 5,232 6,665 -22%
Deposits and other borrowings Other external liabilities	82,369 86,489 -5% 35,178 31,375 12%	82,369 74,723 10% 35,178 25,086 40%
External liabilities	117,547 117,864 0%	117,547 99,809 18%
Risk weighted assets Average gross loans and advances Average deposits and other borrowings Ratios Net interest margin - cash Operating expenses to operating income - cash Operating expenses to average assets - cash	67,265 67,929 -1% 103,633 100,920 3% 83,610 82,150 2% 2.22% 2.27% 37.8% 38.3% 0.97% 1.05%	67,265 61,420 10% 102,280 94,773 8% 82,882 75,538 10% 2.25% 2.30% 38.0% 38.9% 1.01% 1.10%
Individual credit impairment charge/(release) - cash Individual credit impairment charge/(release) as a % of average GLA - cash Collective credit impairment charge/(release) - cash Collective credit impairment charge/(release) as a % of average GLA - cash Gross impaired assets Gross impaired assets as a % of GLA	34 34 0% 0.07% 0.07% 8 (5) large 0.02% (0.01%) 379 510 -26% 0.36% 0.48%	68 76 -11% 0.07% 0.08% 3 (84) large 0.00% (0.09%) 379 631 -40% 0.36% 0.67%
Total full time equivalent staff (FTE)	8,104 8,237 -2%	8,104 8,225 -1%

81

GEOGRAPHIC RESULTS

New Zealand geography

Table reflects NZD results for the New Zealand geography

Net interest income Other operating income	Half Year Sep 15 NZD M Mar 15 NZD M Movt 1,458 1,422 3% 496 509 -3%	Full Year
		Sep 15 NZD M Sep 14 NZD M Movt 2,880 2,765 4% 1,005 997 1%
Operating income Operating expenses	1,954 1,931 1% (739) (739) 0%	3,885 3,762 3% (1,478) (1,464) 1%
Profit before credit impairment and income tax Credit impairment charge	1,215 1,192 2% (45) (31) 45%	2,407 2,298 5% (76) 9 large
Profit before income tax Income tax expense and non-controlling interests	1,170 1,161 1% (324) (320) 1%	2,331 2,307 1% (644) (625) 3%
Cash profit Adjustments between statutory profit and cash profit	846 841 1% 48 36 33%	1,687 1,682 0% 84 29 large
Statutory profit	894 877 2%	1,771 1,711 4%
Balance Sheet Net loans & advances Other external assets	114,376 109,031 5% 36,460 31,214 17%	114,376 105,485 8% 36,460 28,005 30%
External assets	150,836 140,245 8%	150,836 133,490 13%
Customer deposits Other deposits and borrowings	84,870 80,338 6% 5,756 7,778 -26%	84,870 76,355 11% 5,756 7,478 -23%
Deposits and other borrowings Other external liabilities	90,626 88,116 3% 38,705 31,966 21%	90,626 83,833 8% 38,705 28,143 38%
External liabilities	129,331 120,082 8%	129,331 111,976 15%
Risk weighted assets Average gross loans and advances Average deposits and other borrowings Ratios Net interest margin - cash Operating expenses to operating income - cash Operating expenses to average assets - cash	74,008 69,208 7% 112,712 107,898 4% 90,942 87,830 4% 2.22% 2.27% 37.8% 38.3% 0.97% 1.05%	74,008 68,908 7% 110,311 103,593 6% 89,390 82,568 8% 2.25% 2.30% 38.0% 38.9% 1.01% 1.10%
Individual credit impairment charge/(release) - cash Individual credit impairment charge/(release) as a % of average GLA - cash Collective credit impairment charge/(release) - cash Collective credit impairment charge/(release) as a % of average GLA - cash Gross impaired assets Gross impaired assets as a % of GLA	36 37 -3% 0.07% 0.07% 9 (6) large 0.02% (0.01%) 419 523 -20% 0.36% 0.48%	73 83 -12% 0.07% 0.08% 3 (92) large 0.00% (0.09%) 419 708 -41% 0.36% 0.67%
Total full time equivalent staff (FTE)	8,104 8,237 -2%	8,104 8,225 -1%

82

PROFIT RECONCILIATION

CONTENTS

Section 7 – Profit Reconciliation

Adjustments between statutory profit and cash profit Explanation of adjustments between statutory profit and cash profit Other reclassifications between statutory profit and cash profit Reconciliation of statutory profit to cash profit

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PROFIT RECONCILIATION

Non-IFRS information

The Group provides additional measures of performance in the Results Announcement which are prepared on a basis other than in accordance with accounting standards. The guidance provided in ASIC’s RG230 has been followed when presenting this information.

Adjustments between statutory profit and cash profit

Statutory profit has been adjusted to exclude non-core items to arrive at cash profit, which is provided to assist readers to understand the results for the ongoing business activities of the Group. The adjustments made in arriving at cash profit are included in statutory profit which is subject to audit within the context of the Group statutory audit opinion. The 2015 Annual Financial Statements are in the process of being audited. Cash profit is not subject to audit by the external auditor, however, the external auditor has informed the Audit Committee that the adjustments have been determined on a consistent basis across each period presented.

Statutory profit attributable to shareholders of the Company Adjustments between statutory profit and cash profit	Half Year Sep 15 $M Mar 15 $M Movt 3,987 3,506 14% (447) 170 large	Full Year
		Sep 15 $M Sep 14 $M Movt 7,493 7,271 3% (277) (154) 80%
Cash Profit	3,540 3,676 -4%	7,216 7,117 1%

Adjustments between statutory profit and cash profit Treasury shares adjustments Revaluation of policy liabilities Economic hedging Revenue and net investment hedges Structured credit intermediation trades	Half Year Sep 15 $M Mar 15 $M Movt (95) 79 large (6) (67) -91% (165) (14) large (179) 176 large (2) (4) -50%	Full Year
		Sep 15 $M Sep 14 $M Movt (16) 24 large (73) (26) large (179) (72) large (3) (101) -97% (6) 21 large
Total adjustments between statutory profit and cash profit	(447) 170 large	(277) (154) 80%

Explanation of adjustments between statutory profit and cash profit

 Treasury shares adjustment

ANZ shares held by the Group in the funds management and insurance business are deemed to be Treasury shares for accounting purposes. Dividends and realised and unrealised gains and losses from these shares are reversed as these are not permitted to be recognised in income for statutory reporting purposes. In deriving cash profit, these earnings are included to ensure there is no asymmetrical impact on the Group’s profits because the Treasury shares are held to support policy liabilities which are revalued through the Income Statement. Accordingly, the full year loss of $16 million after tax ($21 million pre tax) reversed for statutory accounting purposes has been added back to cash profit.

 Revaluation of policy liabilities

When calculating policy liabilities, the projected future cash flows on insurance contracts are discounted to reflect the present value of the obligation, with the impact of changes in the market discount rate each period being reflected in the income statement. ANZ includes the impact on the remeasurement of the insurance contract attributable to changes in market discount rates as an adjustment to statutory profit to remove the volatility attributable to changes in market interest rates which reverts to zero over the life of the insurance contract.

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PROFIT RECONCILIATION

• Economic hedging and Revenue and net investment hedges

The Group enters into economic hedges to manage its interest rate and foreign exchange risk. The application of AASB 139: Financial Instruments – Recognition and Measurement results in fair value gains and losses being recognised within the income statement. ANZ removes the mark-to-market adjustments from cash profit as the profit or loss resulting from the hedge transactions will reverse over time to match with the profit or loss from the economically hedged item as part of cash profit. This includes gains and losses arising from approved classes of derivatives not designated in accounting hedge relationships but which are considered to be economic hedges, including hedges of larger foreign exchange denominated revenue and expense streams, primarily NZD and USD (and USD correlated), as well as ineffectiveness from designated accounting hedges.

Economic hedging comprises:

• Funding related swaps - primarily cross currency interest rate swaps which are being used to convert the proceeds of foreign currency debt issuances into floating rate Australian dollar and New Zealand dollar debt. As these swaps do not qualify for hedge accounting, movements in the fair values are recorded in the income statement. The main drivers of these fair values are currency basis spreads and the Australian dollar and New Zealand dollar fluctuations against other major funding currencies.

• Economic hedges of select structured finance and specialised leasing transactions that do not qualify for hedge accounting. The main drivers of these fair value adjustments are Australian and New Zealand yield curve movements.

• Ineffectiveness from designated accounting hedge relationships.

The majority of the full year gain in economic hedging arose in the September 2015 half and mainly related to funding related swaps that were impacted by the significant weakening in the AUD across a number of major currencies, most notably the USD and EUR.

Gains on revenue and net investment hedges in the September 2015 half were principally attributable to the strengthening of the AUD against the NZD exchange rate partially offset by the losses attributable to the weakening of the AUD against the USD. These gains reversed losses in the March 2015 half attributable to the weakening of the AUD against both the USD and NZD exchange rates.

Adjustments to the income statement Timing differences where IFRS results in asymmetry between the hedge and hedged items Economic hedging Revenue and net investment hedges	Half Year Sep 15 $M Mar 15 $M (235) (20) (256) 252	Full Year
		Sep 15 $M Sep 14 $M (255) (103) (4) (143)
Increase/(decrease) to cash profit before tax	(491) 232	(259) (246)
Increase/(decrease) to cash profit after tax	(344) 162	(182) (173)

Cumulative increase/(decrease) to cash profit pre-tax Timing differences where IFRS results in asymmetry between the hedge and hedged items (before tax) Economic hedging Revenue and net investment hedges	As at
	Sep 15 $M Mar 15 $M Sep 14 $M 295 530 550 32 288 36
	327 818 586

85

PROFIT RECONCILIATION

• Structured credit intermediation trades

ANZ entered into a series of structured credit intermediation trades with US financial guarantors from 2004 to 2007. The underlying structures involved credit default swaps (CDS) over synthetic collateralised debt obligations (CDOs), portfolios of external collateralised loan obligations (CLOs) or specific bonds/floating rate notes (FRNs). ANZ sold protection using credit default swaps over these structures and then to mitigate risk, purchased protection via credit default swaps over the same structures from eight US financial guarantors.

Being derivatives, both the sold protection and purchased protection are measured at fair value and marked-to-model. Prior to the commencement of the global financial crisis, movements in valuations of these positions were not significant and largely offset each other in income. Following the onset of the financial crisis, the purchased protection has provided only a partial offset against movements in valuation of the sold protection because:

• one of the counterparties to the purchased protection defaulted and many of the remaining were downgraded; and

• a credit valuation adjustment is applied to the remaining counterparties to the purchased protection reflective of changes to their credit worthiness.

ANZ is actively monitoring this portfolio with a view to reducing the exposures via termination and restructuring of both the bought and sold protection if and when ANZ deems it cost effective relative to the perceived risk associated with a specific trade or counterparty. As at 30 September 2015, ANZ’s remaining exposure is against two financial guarantors.

The bought and sold protection trades are by nature largely offsetting, with the notional amount on the outstanding bought CDSs and outstanding sold CDSs at 30 September 2015 each amounting to $0.7 billion (Mar 15: $0.8 billion; Sep 14: $1.2 billion). The decrease in notional balances of $0.5 billion during September 2015 is primarily due to the termination of one bought protection along with the corresponding sold protection in the first half of the year.

The profit and loss impact of credit risk on structured credit derivatives is driven by market movements in credit spreads and AUD/USD and NZD/USD rates.

The (gain)/loss on structured credit intermediation trades is included as an adjustment to cash profit as it relates to a legacy non-core business where, unless terminated early, the fair value movements are expected to reverse to zero in future periods.

Increase/(decrease) to cash profit Profit before income tax Income tax expense	Half Year Sep 15 $M Mar 15 $M Movt (3) (5) -40% 1 1 0%	Full Year
		Sep 15 $M Sep 14 $M Movt (8) 22 large 2 (1) large
Profit after income tax	(2) (4) -50%	(6) 21 large

Financial impacts of credit intermediation trades Mark-to-market exposure to financial guarantors	As at Sep 15 $M Mar 15 $M Sep 14 $M 69 78 82	Movement Sep 15 v. Mar 15 Sep 15 v. Sep 14 -12% -16% -11% -29% 0% 0% -1% -2%
Cumulative costs relating to financial guarantors1 CVA for outstanding transactions Realised close out and hedge costs	17 19 24 372 373 373
Cumulative life to date charges	389 392 397

1. The cumulative costs in managing the positions include realised losses relating to restructuring of trades in order to reduce risks and realised losses on termination of sold protection trades. It also includes foreign exchange hedging losses.

Other reclassifications between statutory profit and cash profit

• Credit risk on impaired derivatives (nil profit after tax impact)

• The charge to income for credit valuation adjustments of $26 million on defaulted and impaired derivative exposures has been reclassified to cash credit impairment charges in the September 2015 full year (Mar 15 half: $16 million charge; Sep 14 full year: $3 million charge). The reclassification has been made to reflect the manner in which the defaulted and impaired derivatives are managed.

• Policyholders tax gross up (nil profit after tax impact)

For statutory reporting purposes, policyholder income tax and other related taxes paid on behalf of policyholders are included in both net funds management and insurance income and the Group’s income tax expense. The gross up of $186 million for the September 2015 full year (Mar 15 half: $277 million; Sep 14 full year: $242 million) has been excluded from the cash results as it does not reflect the underlying performance of the business which is assessed on a net of policyholder tax basis.

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PROFIT RECONCILIATION

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PROFIT RECONCILIATION

**September 2015 Full Year **	**September 2015 Full Year **
Statutory Adjustments to statutory profit profit Treasury shares adjustment Policy-holders tax gross up Revaluation of policy liabilities $M $M $M $M Net interest income 14,616 - - -
Net fee and commission income 2,591 - - - Net foreign exchange earnings 1,007 - - - Profit on trading instruments (130) - - - Net funds management and insurance income 1,736 (21) (186) (104) Other 1,251 - - -
Other operating income 6,455 (21) (186) (104)
Operating income 21,071 (21) (186) (104) Operating expenses (9,359) - - -
Profit before credit impairment and tax 11,712 (21) (186) (104) Credit impairment charge (1,179) - - -
Profit before income tax 10,533 (21) (186) (104) Income tax expense (3,026) 5 186 31 Non-controlling interests (14) - - -
Profit 7,493 (16) - (73)
**September 2014 Full Year **
Statutory Adjustments to statutory profit profit Treasury shares adjustment Policy-holders tax gross up Revaluation of policy liabilities $M $M $M $M Net interest income 13,810 - - -
Net fee and commission income 2,505 - - - Net foreign exchange earnings 1,073 - - - Profit on trading instruments 139 - - - Net funds management and insurance income 1,538 24 (242) (37) Other 989 - - -
Other operating income 6,244 24 (242) (37)
Operating income 20,054 24 (242) (37) Operating expenses (8,760) - - -
Profit before credit impairment and tax 11,294 24 (242) (37) Credit impairment charge (986) - - -
Profit before income tax 10,308 24 (242) (37) Income tax expense (3,025) - 242 11 Non-controlling interests (12) - - -
Profit 7,271 24 - (26)

88

PROFIT RECONCILIATION

September 2015 Full Year

**September **	**2015 Full Year **
		Adjustment to statutory profit				Cash
						profit
		Revenue and	Structured	Credit risk	Total
	Economic	net investment	credit	on impaired	adjustments to statutory
	hedging	hedges	intermediation trades	derivatives	profit
	$M	$M	$M	$M	$M	$M
	-	-	-	-	-	14,616
	-	-	-	-	-	2,591
	3	(4)	-	-	(1)	1,006
	(9)	-	(8)	26	9	(121)
	-	-	-	-	(311)	1,425
	(250)	-	-	-	(250)	1,001
	(256)	(4)	(8)	26	(553)	5,902
	(256)	(4)	(8)	26	(553)	20,518
	-	-	-	-	-	(9,359)
	(256)	(4)	(8)	26	(553)	11,159
	-	-	-	(26)	(26)	(1,205)
	(256)	(4)	(8)	-	(579)	9,954
	77	1	2	-	302	(2,724)
	-	-	-	-	-	(14)
	(179)	(3)	(6)	-	(277)	7,216
**September **	**2014 Full Year **
		Adjustment to statutory profit				Cash
						profit
		Revenue and	Structured	Credit risk	Total
	Economic	net investment	credit	on impaired	adjustments to statutory
	hedging	hedges	intermediation trades	derivatives	profit
	$M	$M	$M	$M	$M	$M
	(13)	-	-	-	(13)	13,797
	-	-	-	-	-	2,505
	3	(143)	-	-	(140)	933
	4	-	22	3	29	168
	-	-	-	-	(255)	1,283
	(97)	-	-	-	(97)	892
	(90)	(143)	22	3	(463)	5,781
	(103)	(143)	22	3	(476)	19,578
	-	-	-	-	-	(8,760)
	(103)	(143)	22	3	(476)	10,818
	-	-	-	(3)	(3)	(989)
	(103)	(143)	22	-	(479)	9,829
	31	42	(1)	-	325	(2,700)
	-	-	-	-	-	(12)
	(72)	(101)	21	-	(154)	7,117

89

PROFIT RECONCILIATION

September 2015 Half Year

**September 2015 Half Year **
	Statutory	Adjustments to statutory profit
	profit
		Treasury		Revaluation
		shares	Policyholders	of policy
		adjustment	tax gross up	liabilities
	$M	$M	$M	$M
Net interest income	7,478	-	-	-
Net fee and commission income	1,283	-	-	-
Net foreign exchange earnings	748	-	-	-
Profit on trading instruments	(224)	-	-	-
Net funds management and insurance income	757	(107)	91	(7)
Other	799	-	-	-
Other operating income	3,363	(107)	91	(7)
Operating income	10,841	(107)	91	(7)
Operating expenses	(4,766)	-	-	-
Profit before credit impairment and tax	6,075	(107)	91	(7)
Credit impairment charge	(685)	-	-	-
Profit before income tax	5,390	(107)	91	(7)
Income tax expense	(1,397)	12	(91)	1
Non-controlling interests	(6)	-	-	-
Profit	3,987	(95)	-	(6)
**March 2015 Half Year **
	Statutory	Adjustments to statutory profit
	profit
		Treasury		Revaluation
		shares	Policyholders	of policy
		adjustment	tax gross up	liabilities
	$M	$M	$M	$M
Net interest income	7,138	-	-	-
Net fee and commission income	1,308	-	-	-
Net foreign exchange earnings	259	-	-	-
Profit on trading instruments	94	-	-	-
Net funds management and insurance income	979	86	(277)	(97)
Other	452	-	-	-
Other operating income	3,092	86	(277)	(97)
Operating income	10,230	86	(277)	(97)
Operating expenses	(4,593)	-	-	-
Profit before credit impairment and tax	5,637	86	(277)	(97)
Credit impairment charge	(494)	-	-	-
Profit before income tax	5,143	86	(277)	(97)
Income tax expense	(1,629)	(7)	277	30
Non-controlling interests	(8)	-	-	-
Profit	3,506	79	-	(67)

90

PROFIT RECONCILIATION

September 2015 Half Year

			Adjustments to statutory profit	Adjustments to statutory profit			Cash	Cash	Cash
							profit
			Revenue and	Structured	Credit risk	Total
		Economic	net investment	credit	on impaired	adjustments to
		hedging	hedges	intermediation trades	derivatives	statutory profit
		$M	$M	$M	$M	$M	$M
		-	-	-	-	-	7,478
		-	-	-	-	-	1,283
		3	(256)	-	-	(253)	495
		(21)	-	(3)	10	(14)	(238)
		-	-	-	-	(23)	734
		(218)	-	-	-	(218)	581
		(236)	(256)	(3)	10	(508)	2,855
		(236)	(256)	(3)	10	(508)	10,333
		-	-	-	-	-	(4,766)
		(236)	(256)	(3)	10	(508)	5,567
		-	-	-	(10)	(10)	(695)
		(236)	(256)	(3)	-	(518)	4,872
		71	77	1	-	71	(1,326)
		-	-	-	-	-	(6)
		(165)	(179)	(2)	-	(447)	3,540
**March **	**2015 **	**Half Year **
			Adjustments to statutory profit				Cash
							profit
			Revenue and	Structured	Credit risk	Total
		Economic	net investment	credit	on impaired	adjustments to
		hedging	hedges	intermediation trades	derivatives	statutory profit
		$M	$M	$M	$M	$M	$M
		-	-	-	-	-	7,138
		-	-	-	-	-	1,308
		-	252	-	-	252	511
		12	-	(5)	16	23	117
		-	-	-	-	(288)	691
		(32)	-	-	-	(32)	420
		(20)	252	(5)	16	(45)	3,047
		(20)	252	(5)	16	(45)	10,185
		-	-	-	-	-	(4,593)
		(20)	252	(5)	16	(45)	5,592
		-	-	-	(16)	(16)	(510)
		(20)	252	(5)	-	(61)	5,082
		6	(76)	1	-	231	(1,398)
		-	-	-	-	-	(8)
		(14)	176	(4)	-	170	3,676

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PROFIT RECONCILIATION

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92

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – TABLE OF CONTENTS

CONTENTS	PAGE
Condensed Consolidated Income Statement	94
Condensed Consolidated Statement of Comprehensive Income	95
Condensed Consolidated Balance Sheet	96
Condensed Consolidated Cash Flow Statement	97
Condensed Consolidated Statement of Changes in Equity	98
Notes to Condensed Consolidated Financial Statements	99

93

CONDENSED CONSOLIDATED INCOME STATEMENT

Australia and New Zealand Banking Group Limited

Note Interest income Interest expense	Half Year Sep 15 $M Mar 15 $M Movt 15,132 15,394 -2% (7,654) (8,256) -7%	**Full Year **
		Sep 14 $M Movt 30,526 29,524 3% (15,910) (15,714) 1% Sep 15 $M
Net interest income 2 Other operating income 2 Net funds management and insurance income 2 Share of associates' profit 2,15	7,478 7,138 5% 2,295 1,799 28% 757 979 -23% 311 314 -1%	14,616 13,810 6% 4,094 4,189 -2% 1,736 1,538 13% 625 517 21%
Operating income Operating expenses 3	10,841 10,230 6% (4,766) (4,593) 4%	21,071 20,054 5% (9,359) (8,760) 7%
Profit before credit impairment and income tax Credit impairment charge 9	6,075 5,637 8% (685) (494) 39%	11,712 11,294 4% (1,179) (986) 20%
Profit before income tax Income tax expense 4	5,390 5,143 5% (1,397) (1,629) -14%	10,533 10,308 2% (3,026) (3,025) 0%
Profit for the period	3,993 3,514 14%	7,507 7,283 3%
Comprising: Profit attributable to non-controlling interests Profit attributable to shareholders of the Company	6 8 -25% 3,987 3,506 14%	14 12 17% 7,493 7,271 3%
Earnings per ordinary share (cents) Basic 6 Diluted 6 Dividend per ordinary share (cents) 5		271.5 267.1 2% 257.2 257.0 0% 181 178 2%
	143.4 128.0 12% 134.9 124.6 8% 95 86 10%

The notes appearing on pages 99 to 112 form an integral part of the Condensed Consolidated Financial Statements.

94

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Australia and New Zealand Banking Group Limited

Profit for the period Other comprehensive income Items that will not be reclassified subsequently to profit or loss Remeasurement gain/(loss) on defined benefit plans Fair value gain/(loss) attributable to changes in own credit risk of financial liabilities designated at fair value Income tax on items that will not be reclassified subsequently to profit or loss Remeasurement gain/(loss) on defined benefit plans Fair value gain/(loss) attributable to changes in own credit risk of financial liabilities designated at fair value Items that may be reclassified subsequently to profit or loss Foreign currency translation reserve Exchange differences taken to equity1 Exchange differences transferred to income statement Available-for-sale revaluation reserve Valuation gain/(loss) taken to equity Transferred to income statement Cash flow hedge reserve Valuation gain/(loss) taken to equity Transferred to income statement Income tax on items that may be reclassified subsequently to profit or loss Available-for-sale assets revaluation reserve Cash flow hedge reserve **Share of associates' other comprehensive income2 **	Full Year
	Sep 15 $M Sep 14 $M Movt 7,507 7,283 3% (6) 43 large 52 (35) large 4 (11) large (15) 10 large 1,736 487 large (4) 37 large (40) 134 large (71) (47) 51% 160 165 -3% (15) (31) -52% 36 (23) large (45) (41) 10% 59 (24) large
Other comprehensive income net of tax	1,851 664 large
Total comprehensive income for the period Non-controlling interests Shareholders of the Company	9,358 7,947 30 16 88% 9,328 7,931 18%

1. Includes foreign currency translation differences attributable to non-controlling interests of $16 million gain (Sep 14 full year: $4 million gain).

2. Share of associates other comprehensive income includes items that may be reclassified subsequently to profit and loss comprised of Available-for-sale revaluation reserve gain of $53 million (Sep 14 full year: loss of $25 million); Foreign currency translation reserve gain of $8 million gain (Sep 14 full year: nil); Cash flow hedge reserve of nil (Sep 14 full year: gain of

• $1 million) and items of which will not be reclassified subsequently to profit or loss comprised of Defined Benefit Plans loss of $2 million (Sep 14 full year: nil).

The notes appearing on pages 99 to 112 form an integral part of the Condensed Consolidated Financial Statements.

95

CONDENSED CONSOLIDATED BALANCE SHEET

Australia and New Zealand Banking Group Limited

Assets Note Cash Settlement balances owed to ANZ Collateral paid Trading securities Derivative financial instruments Available-for-sale assets Net loans and advances 8 Regulatory deposits Investment in associates Current tax assets Deferred tax assets Goodwill and other intangible assets Investments backing policy liabilities Premises and equipment Other assets Esanda dealer finance assets held for sale 8		As at
Total assets	889,900 860,087 772,092 3% 15%
Liabilities Settlement balances owed by ANZ Collateral received Deposits and other borrowings 10 Derivative financial instruments Current tax liabilities Deferred tax liabilities Policy liabilities External unit holder liabilities (life insurance funds) Provisions Payables and other liabilities Debt issuances Subordinated debt 11	11,250 7,759 10,114 45% 11% 7,829 4,844 5,599 62% 40% 570,794 567,215 510,079 1% 12% 81,270 73,210 52,925 11% 54% 267 123 449 large -41% 249 322 120 -23% large 35,401 36,820 34,554 -4% 2% 3,291 3,489 3,181 -6% 3% 1,074 1,128 1,100 -5% -2% 10,366 10,999 10,984 -6% -6% 93,747 85,664 80,096 9% 17% 17,009 16,463 13,607 3% 25%
Total liabilities	832,547 808,036 722,808 3% 15%
Net assets	57,353 52,051 49,284 10% 16%
Shareholders' equity Ordinary share capital Preference share capital Reserves Retained earnings	28,367 24,152 24,031 17% 18% - - 871 n/a -100% 1,571 2,188 (239) -28% large 27,309 25,616 24,544 7% 11%
Share capital and reserves attributable to shareholders of the Company 13 Non-controlling interests	57,247 51,956 49,207 10% 16% 106 95 77 12% 38%
Total shareholders' equity 13	57,353 52,051 49,284 10% 16%

The notes appearing on pages 99 to 112 form an integral part of the Condensed Consolidated Financial Statements.

96

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

Australia and New Zealand Banking Group Limited

Note Cash flows from operating activities Interest received Interest paid Dividends received Other operating income received Other operating expenses paid Income taxes paid Net cash flows from funds management and insurance business Premiums, other income and life investment deposits received Investment income and policy deposits received Claims and policy liability payments Commission expensepaid	Full Year
	Inflows Inflows (Outflows) (Outflows) Sep 15 $M Sep 14 $M 30,667 29,327 (15,458) (14,886) 231 127 18,297 2,704 (8,573) (8,123) (3,082) (3,207) 7,577 7,549 286 620 (5,930) (5,578) (648) (471)
Cash flows from operating activities before changes in operating assets and liabilities	23,367 8,062
Changes in operating assets and liabilities arising from cash flow movements (Increase)/decrease in operating assets Collateral paid Trading securities Net loans and advances Net cash flows from investments backing policy liabilities Purchase of insurance assets Proceeds from sale/maturity of insurance assets Increase/(decrease) in operating liabilities Deposits and other borrowings Settlement balances owed by ANZ Collateral received Payables and other liabilities	(3,585) 1,271 2,870 (8,600) (32,280) (35,154) (7,065) (4,856) 7,239 4,625 30,050 36,592 781 1,358 1,073 1,435 (974) 910
Change in operating assets and liabilities arising from cash flow movements	(1,891) (2,419)
Net cashprovided by operating activities	21,476 5,643
Cash flows from investing activities Available-for-sale assets Purchases Proceeds from sale or maturity Controlled entities and associates Proceeds from sale (net of cash disposed) Premises and equipment Purchases Other assets	(24,236) (12,652) 15,705 11,136 4 251 (321) (370) (928) (292)
Net cash(used in) investing activities	(9,776) (1,927)
Cash flows from financing activities Debt issuances Issue proceeds Redemptions Subordinated debt Issue proceeds Redemptions Dividends paid Share capital issues Preference shares bought back Share buyback	16,637 17,156 (15,966) (10,710) 2,683 3,258 - (2,586) (3,763) (3,827) 3,207 4 (755) - - (500)
Net cashprovided by financing activities	2,043 2,795
Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Effects of exchange rate changes on cash and cash equivalents	13,743 6,511 48,229 41,111 7,306 607
Cash and cash equivalents at end of period 7	69,278 48,229

The notes appearing on pages 99 to 112 form an integral part of the Condensed Consolidated Financial Statements.

97

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Australia and New Zealand Banking Group Limited

					Shareholders'
					equity
	Ordinary				attributable to	Non-	Total
	share capital	Preference shares	Reserves1	Retained earnings	Equity holders of the Bank	controlling interests	Shareholders' equity
	$M	$M	$M	$M	**$M **	$M	$M
As at 1 October 2013	23,641	871	(907)	21,936	45,541	62	45,603
Profit or loss	-	- -		7,271	7,271	12	7,283
Other comprehensive income for theperiod	-	-	653	7	660	4	664
Total comprehensive income for the period	-	-	653	7,278	7,931	16	7,947
Transactions with equity holders in
their capacity as equity holders:
Dividends paid	-	-	-	(4,700)	(4,700)	(1)	(4,701)
Dividend income on treasury shares
held within the Group's	-	-	-	22	22	-	22
life insurance statutory funds
Dividend reinvestment plan	851	-	-	-	851	-	851
Transactions with non-controlling interests	-	-	10	-	10	-	10
Other equity movements:
Share based payments/(exercises)	-	-	13	-	13	-	13
Group share option scheme	4	-	-	-	4	-	4
Treasury shares Global Wealth adjustment	24	-	-	-	24	-	24
Group employee share acquisition scheme	11	-	-	-	11	-	11
Group share buyback	(500)	-	-	-	(500)	-	(500)
Transfer of options/rights lapsed	-	-	(8)	8	-	-	-
As at 30 September 2014	24,031	871	(239)	24,544	49,207	77	49,284
Profit or loss	-	-	-	7,493	7,493	14	7,507
Other comprehensive income for theperiod	-	-	1,802	33	1,835	16	1,851
Total comprehensive income for the period	-	-	1,802	7,526	9,328	30	9,358
Transactions with equity holders in
their capacity as equity holders:
Dividends paid	-	-	-	(4,907)	(4,907)	(1)	(4,908)
Dividend income on treasury shares
held within the Group's	-	-	-	22	22	-	22
life insurance statutory funds
Dividend reinvestment plan	1,122	-	-	-	1,122	-	1,122
Preference share bought back	-	(871)	-	-	(871)	-	(871)
Other equity movements:
Share based payments/(exercises)	-	-	16	-	16	-	16
Share Placement and Purchase Plan	3,206	-	-	-	3,206	-	3,206
Group share option scheme	2	-	-	-	2	-	2
Treasury shares Global Wealth adjustment	5	-	-	-	5	-	5
Group employee share acquisition scheme	1	-	-	-	1	-	1
Transfer of options/rights lapsed	-	-	(8)	8	-	-	-
Foreign exchange gains on preference shares brought back	-	-	-	116	116	-	116
As at 30 September 2015	28,367	-	1,571	27,309	57,247	106	57,353

1. Further information on reserves is disclosed in Note 13.

The notes appearing on pages 99 to 112 form an integral part of the Condensed Consolidated Financial Statements.

98

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of preparation

These Condensed Consolidated Financial Statements:

• have been prepared in accordance with the recognition and measurement requirements of Australian Accounting Standards (“AASs”);

• should be read in conjunction with ANZ’s Annual Financial Statements for the year ended 30 September 2015 when released and any public announcements made by the Parent Entity and its controlled entities (the Group) for the year ended 30 September 2015 in accordance with the continuous disclosure obligations under the Corporations Act 2001 and the ASX Listing Rules;

• do not include all notes of the type normally included in ANZ’s Annual Financial Statements;

• are presented in Australian dollars unless otherwise stated; and

• were approved by the Board of Directors on 28 October 2015.

i) Accounting policies

These Condensed Consolidated Financial Statements have been prepared on the basis of accounting policies and using methods of computation consistent with those applied in the 2014 ANZ Annual Financial Statements.

ii) Basis of measurement

The financial information has been prepared in accordance with the historical cost basis except that the following assets and liabilities are stated at their fair value:

• derivative financial instruments as well as, in the case of fair value hedging, the fair value adjustment on the underlying hedged exposure;

• available-for-sale financial assets;

• financial instruments held for trading; and

• assets and liabilities designated at fair value through profit and loss.

In accordance with AASB 1038 Life Insurance Contracts , life insurance liabilities are measured using the Margin on Services model.

In accordance with AASB 119 Employee Benefits , defined benefit obligations are measured using the Projected Unit Credit method.

iii) Use of estimates, assumptions and judgments

The preparation of these Condensed Consolidated Financial Statements requires the use of management judgement, estimates and assumptions that affect reported amounts and the application of accounting policies. Discussion of the critical accounting estimates and judgements, which include complex or subjective decisions or assessments will be covered in Note 2 of the 2015 Annual Financial Statements when released. Such estimates and judgements are reviewed on an ongoing basis.

At 30 September 2015 the impairment assessment of non-lending assets identified that two of the Group’s Associate investments (AMMB Holdings Berhad (Ambank) and PT Bank Pan Indonesia (PT Panin)) had indicators of impairment. Although their market value (based on share price) was below their carrying value, no impairment was recognised as the carrying value was supported by their value in use.

The value in use estimation is sensitive to a number of key assumptions, including future profitability levels, capital levels, long term growth rates and discount rates. The key assumptions used in the value in use calculations are outlined below:

Pre-tax discount rate Terminal growth rate Expected NPAT growth (5 years average) Core equitytier 1 rate	As at Sep 15
	AMMB PT Panin 11.0% 12.7% 5.5% 5.7% 2.1% 5.1% 10.0% 10.0%

iv) Rounding of amounts

The amounts contained in these Condensed Consolidated Financial Statements have been rounded to the nearest million dollars, except where otherwise indicated, as permitted by Australian Securities and Investments Commission Class Order 98/100.

iv) Comparatives

Certain amounts in the comparative information have been reclassified to conform with current period financial statement presentation.

99

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

2. Income

Interest income Interest expense	Half Year Sep 15 $M Mar 15 $M Movt 15,132 15,394 -2% (7,654) (8,256) -7%	Full Year
		Sep 15 $M Sep 14 $M Movt 30,526 29,524 3% (15,910) (15,714) 1%
Net interest income	7,478 7,138 5%	14,616 13,810 6%
i) Fee and commission income Lending fees1 Non-lending fees and commissions2	411 422 -3% 1,419 1,388 2%	833 779 7% 2,807 2,648 6%
Total fee and commission income2 Fee and commission expense2,3	1,830 1,810 1% (504) (502) 0%	3,640 3,427 6% (1,006) (922) 9%
Net fee and commission income2	1,326 1,308 1%	2,634 2,505 5%
ii) Net funds management and insurance income Funds management income Investment income Insurance premium income Commission income/(expense) Claims Changes in policy liabilities4 Elimination of treasury share (gain)/loss	452 478 -5% (1,301) 3,149 large 823 718 15% (213) (239) -11% (377) (341) 11% 1,266 (2,700) large 107 (86) large	930 917 1% 1,848 2,656 -30% 1,541 1,314 17% (452) (471) -4% (718) (707) 2% (1,434) (2,147) -33% 21 (24) large
Total net funds management and insurance income	757 979 -23%	1,736 1,538 13%
iii) Share of associates' profit	311 314 -1%	625 517 21%
iv) Other income Net foreign exchange earnings Net gain/(loss) from trading securities and derivatives Credit risk on credit intermediation trades Movement on financial instruments measured at fair value through profit & loss5 Brokerage income Loss on divestment of SSI Dilution gain on investment in Bank of Tianjin Insurance settlement Gain on sale of ANZ Trustees Other2	748 259 large (225) 94 large 3 5 -40% 209 32 large 24 34 -29% - - n/a - - n/a - - n/a - - n/a 210 67 large	1,007 1,073 -6% (131) 138 large 8 (22) large 241 97 large 58 50 16% - (21) -100% - 12 -100% - 26 -100% - 125 -100% 277 206 35%
Total other income2	969 491 97%	1,460 1,684 -13%
Total other operating income6	3,363 3,092 9%	6,455 6,244 3%
Total income	18,495 18,486 0%	36,981 35,768 3%

1. Lending fees exclude fees treated as part of the effective yield calculation in interest income.

2. Certain cards related fees that are integral to the generation of income were reclassified within total income in the March half to better reflect the nature of the items and comparatives were restated. For the Sep 14 full year, fees of $488 million were moved from ‘non-lending fees and commissions’ and fees of $10 million were moved from ‘Other income’ and included in ‘fee and commission expenses’.

3.

4.

5.

Includes interchange fees paid.

Includes policyholder tax gross up, which represents contribution tax (recovered at 15% on the super contributions made by members) debited to the policyholder account once a year in July when the statement is issued to the members at the end of the 30 June financial year.

Includes fair value movements (excluding realised and accrued interest) on derivatives not designated as accounting hedges entered into to manage interest rate and foreign exchange risk on funding instruments, ineffective portions of cashflow hedges, and fair value movements in financial assets and liabilities designated at fair value through profit and loss.

6. Total other operating income includes external dividend income of $0.8 million (Mar 15 half: nil; Sep 14 full year: $1.1 million).

100

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

3. Operating expenses

Personnel Employee entitlements and taxes Salaries and wages Superannuation costs - defined benefit plans Superannuation costs - defined contribution plans Equity-settled share-based payments Other	Half Year Sep 15 $M Mar 15 $M Movt 170 155 10% 1,867 1,852 1% 4 3 33% 169 155 9% 108 108 0% 446 442 1%	Full Year
		Sep 15 $M Sep 14 $M Movt 325 278 17% 3,719 3,495 6% 7 10 -30% 324 300 8% 216 215 0% 888 790 12%
Total personnel expenses	2,764 2,715 2%	5,479 5,088 8%
Premises Depreciation and amortisation Rent Utilities and other outgoings Other	95 97 -2% 241 238 1% 93 87 7% 38 33 15%	192 198 -3% 479 450 6% 180 178 1% 71 62 15%
Total premises expenses	467 455 3%	922 888 4%
Technology Data communications Depreciation and amortisation Licences and outsourced services Rentals and repairs Software impairment Other	65 50 30% 343 332 3% 238 209 14% 80 78 3% 13 4 large 22 28 -21%	115 104 11% 675 550 23% 447 400 12% 158 153 3% 17 15 13% 50 44 14%
Total technology expenses	761 701 9%	1,462 1,266 15%
Restructuring	21 10 large	31 113 -73%
Other Advertising and public relations Audit and other fees Non-lending losses, frauds and forgeries Professional fees Travel and entertainment expenses Amortisation and impairment of other intangible assets Freight, stationery, postage and telephone Other	164 128 28% 10 11 -9% 31 35 -11% 182 142 28% 105 100 5% 44 44 0% 136 127 7% 81 125 -35%	292 278 5% 21 19 11% 66 52 27% 324 239 36% 205 193 6% 88 118 -25% 263 273 -4% 206 233 -12%
Total other expenses	753 712 6%	1,465 1,405 4%
Total operating expenses	4,766 4,593 4%	9,359 8,760 7%

101

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

4. Income tax expense

Reconciliation of the prima facie income tax expense on pre-tax profit with the income tax expense charged in the Income Statement

Profit before income tax Prima facie income tax expense at 30% Tax effect of permanent differences: Overseas tax rate differential Rebateable and non-assessable dividends Profit from associates Sale of ANZ Trustees and SSI Offshore Banking Unit Global Wealth - Policyholder income and contributions tax Global Wealth - Tax consolidation benefit Tax provisions no longer required Interest on Convertible Instruments Other	Half Year Sep 15 $M Mar 15 $M Movt 5,390 5,143 5% 1,617 1,543 5% (36) (59) -39% (1) (1) 0% (93) (94) -1% - - n/a (1) - n/a (64) 194 large (56) - n/a - (17) -100% 35 37 -5% (4) 26 large	Full Year
		Sep 15 $M Sep 14 $M Movt 10,533 10,308 2% 3,160 3,092 2% (95) (102) -7% (2) (2) 0% (187) (155) 21% - (11) -100% (1) 5 large 130 170 -24% (56) - n/a (17) (50) -66% 72 71 1% 22 6 large
Income tax under/(over) provided in previous years	1,397 1,629 -14% - - n/a	3,026 3,024 0% - 1 -100%
Total income tax expense charged in the income statement	1,397 1,629 -14%	3,026 3,025 0%
Australia Overseas	972 1,172 -17% 425 457 -7%	2,144 2,136 0% 882 889 -1%
	1,397 1,629 -14%	3,026 3,025 0%
Effective Tax Rate - Group	25.9% 31.7%	28.7% 29.3%

102

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

5. Dividends

Dividend per ordinary share (cents) Interim (fully franked) Final (fully franked)	Half Year Sep 15 Mar 15 Movt - 86 n/a 95 - n/a	Half Year Sep 15 Mar 15 Movt - 86 n/a 95 - n/a	Full Year Sep 15 Sep 14 Movt 86 83 4% 95 95 0%
Total	95	86 10%	181 178 2%
Ordinary share dividend ($M)1 Interim dividend Final dividend Bonus option plan adjustment	2,379 - n/a - 2,619 n/a (51) (41) 24%		2,379 2,278 4% 2,619 2,497 5% (92) (81) 14%
Total2	2,328	2,578 -10%	4,906 4,694 5%
Ordinary share dividend payout ratio (%)3	69.2% 67.9%		68.6% 67.4%

1. Dividends paid to ordinary equity holders of the Company. Excludes dividends payable by subsidiaries of the Group to non-controlling equity holders of approximately $1 million (Mar 15 half: nil, Sep 14 full year: $1 million).

2.

3.

• Dividends payable are not accrued and are recorded when paid.

• Dividend payout ratio is calculated using proposed 2015 final dividend of $2,758 million (not shown in the above table). The proposed 2015 final dividend of $2,758 million is based on the forecast number of ordinary shares on issue at the dividend record date. Dividend payout ratios for the March 2015 half and September 2014 full year are calculated using actual dividends paid of $2,379 million and $4,897 million respectively. Dividend payout ratio is calculated by adjusting profit attributable to shareholders of the Company by the amount of preference share dividends paid.

Ordinary Shares

The Directors propose that a final dividend of 95 cents be paid on each eligible fully paid ANZ ordinary share on 16 December 2015. The proposed 2015 final dividend will be fully franked for Australian tax purposes, and New Zealand imputation credits of NZ 11 cents per ordinary share will also be attached.

ANZ has a Dividend Reinvestment Plan (DRP) and a Bonus Option Plan (BOP) that will operate in respect of the proposed 2015 final dividend. For the 2015 final dividend, ANZ intends to provide shares under the DRP and BOP through the issue of new shares. The “Acquisition Price” to be used in determining the number of shares to be provided under the DRP and BOP will be calculated by reference to the arithmetic average of the daily volume weighted average sale price of all fully paid ANZ ordinary shares sold in the ordinary course of trading on the ASX during the ten trading days commencing on 13 November 2015, and then rounded to the nearest whole cent. Shares provided under the DRP and BOP will rank equally in all respects with existing fully paid ANZ ordinary shares. Election notices from shareholders wanting to commence, cease or vary their participation in the DRP or BOP for the 2015 final dividend must be received by ANZ's Share Registrar by 5.00pm (Australian Eastern Daylight Time) on 11 November 2015.

Subject to receiving effective contrary instructions from the shareholder, dividends payable to shareholders with a registered address in the United Kingdom (including the Channel Islands and the Isle of Man) or New Zealand will be converted to Pounds Sterling or New Zealand Dollars respectively at an exchange rate calculated on 13 November 2015.

Preference Shares

Preference share dividend ($M) Euro Trust Securities1 Dividend per preference share Euro Trust Securities1	Half Year Sep 15 Mar 15 Movt - 1 -100% - € 1.88 -100%	Full Year
		Sep 15 Sep 14 Movt 1 6 -83% € 1.88 € 9.32 -80%

1. The Euro Trust Securities were bought back by ANZ for cash at face value and cancelled on 15 December 2014.

103

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

6. Earnings per share

Number of fully paid ordinary shares on issue (M)1	Half Year Sep 15 Mar 15 Movt 2,902.7 2,766.0 5%	Full Year
		Sep 15 Sep 14 Movt 2,902.7 2,756.6 5%
Basic Profit attributable to shareholders of the Company ($M) Less Preference share dividends ($M)	3,987 3,506 14% - (1) -100%	7,493 7,271 3% (1) (6) -83%
Profit less preference share dividends ($M) Weighted average number of ordinary shares (M)2 Basic earnings per share (cents)3	3,987 3,505 14% 2,780.6 2,737.3 2% 143.4 128.0 12%	7,492 7,265 3% 2,759.0 2,719.7 1% 271.5 267.1 2%
Diluted Profit less preference share dividends ($M) Interest on US Trust Securities ($M)4 Interest on ANZ Convertible Preference Shares ($M)5 Interest on ANZ Capital Notes ($M)6 Interest on ANZ NZ Capital Notes ($M)7	3,987 3,505 14% - - n/a 61 67 -9% 74 60 23% 12 - n/a	7,492 7,265 3% - 7 -100% 128 155 -17% 134 81 65% 12 - n/a
Profit less preference share dividends and interest on US Trust Securities, ANZ Convertible Preference Shares, ANZ Capital Notes and ANZ NZ Capital Notes ($M) 4,134 3,632 14% Weighted average number of shares on issue (M)2 2,780.6 2,737.3 2% Weighted average number of convertible options (M) 6.3 6.2 2% Weighted average number of convertible US Trust Securities (M)4 - - n/a Weighted average number of ANZ Convertible Preference Shares (M)5 123.4 91.2 35% Weighted average number of convertible ANZ Capital Notes (M)6 138.0 79.3 74% Weighted average number of convertible ANZ NZ Capital Notes (M)7 17.0 0.1 large		7,766 7,508 3% 2,759.0 2,719.7 1% 6.2 5.5 13% - 6.1 -100% 123.4 127.5 -3% 122.7 63.1 94% 8.5 - n/a
Adjusted weighted average number of shares - diluted (M) 3,065.3 2,914.1 5%		3,019.8 2,921.9 3%
Diluted earnings per share (cents)3 134.9 124.6 8%		257.2 257.0 0%

1. Number of fully paid ordinary shares on issue includes Treasury shares of 23.0 million at 30 September 2015 (Mar 15: 24.6 million; Sep 14: 25.6 million), comprised of 11.4 million in ANZEST Pty Ltd (Mar 15: 11.5 million; Sep 14: 13.8 million) and 11.6 million held in Global Wealth (Mar 15: 13.1 million; Sep 14: 11.8 million). Number of fully paid ordinary shares also includes 80.8 million resulting from the Institutional share placement on 13 August 2015 and 27.3 million resulting from the Retail share purchase plan on 17 September 2015.

2. Weighted average number of ordinary shares excludes 11.4 million weighted average number of ordinary Treasury shares for the half year ended 30 September 2015 and 11.8 million for the full year ended 30 September 2015 held in ANZEST Pty Ltd for the group employee share acquisition scheme (Mar 15: 12.3 million; Sep 14: 14.5 million) and excludes 12.1 million weighted average number of ordinary Treasury shares for the half year ended 30 September 2015 and 12.4 million for the full year ended 30 September 2015 held in Global Wealth (Mar 15: 12.7 million; Sep 14: 12.5 million).

3. The September half and full year Basic earnings per share was reduced by 1.2 cents and Diluted earnings per share reduced by 1.0 cent as a result of the Institutional share placement and the Retail share purchase plan which increased the weighted average number of ordinary shares by 23.7 million for the September half and 11.9 million for the full year.

4.

• The US Trust Securities (issued on 27 November 2003) were due to convert to ANZ ordinary shares in 2053 at the market price of ANZ ordinary shares less 5% unless redeemed or bought back prior to that date. The US Trust Securities were redeemed by ANZ for cash at face value on 16 December 2013.

5. There are three “tranches” of convertible preference shares. The first were convertible preference shares (CPS1) issued on 30 September 2008 which were convertible to ANZ ordinary shares on 16 June 2014 (unless redeemed prior to that date) at the market price of ANZ ordinary shares less 2.5%. On 31 March 2014, 6.3 million CPS1 were cancelled and re-invested in ANZ Capital Notes 2 (CN2) issued on that date and on 16 June 2014, 4.5 million CPS1 were redeemed by ANZ for cash at face value. The second are convertible preference shares (CPS2) issued on 17 December 2009 that convert to ordinary shares on 15 December 2016 at the market price of ANZ ordinary shares less 1.0% (subject to certain conversion conditions). The third are convertible preference shares (CPS3) issued on 28 September 2011 that convert to ordinary shares on 1 September 2019 at the market price of ANZ ordinary shares less 1.0% (subject to certain conversion conditions).

6. There are three “tranches” of ANZ Capital Notes. The first are ANZ Capital Notes 1 (CN1) issued on 7 August 2013 which convert to ANZ ordinary shares on 1 September 2023 at the market price of ANZ ordinary shares less 1.0% (subject to certain conversion conditions). The second are ANZ Capital Notes 2 (CN2) issued on 31 March 2014 which convert to ANZ ordinary shares on 24 March 2024 at the market price of ANZ ordinary shares less 1.0% (subject to certain conversion conditions). The third are ANZ Capital Notes 3 (CN3) issued on 5 March 2015 which convert to ANZ ordinary shares on 24 March 2025 at the market price of ANZ ordinary shares less 1.0% (subject to certain conversion conditions).

7.

• ANZ Bank New Zealand Limited issued ANZ NZ Capital Notes on 31 March 2015 which convert to ANZ ordinary shares on 25 May 2022 at the market price of ANZ ordinary shares less 1.0% (subject to certain conversion conditions).

7. Note to the Cash Flow Statement

Reconciliation of cash and cash equivalents

Cash and cash equivalents at the end of the period as shown in the Cash Flow Statement are reflected in the related items in the Balance Sheet as follows:

Cash Settlement balances owed to ANZ	Full Year
	Sep 15 $M Sep 14 $M 53,903 32,559 15,375 15,670
	69,278 48,229

104

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

8. Net loans and advances

Australia Overdrafts Credit card outstandings Commercial bills outstanding Term loans - housing Term loans - non-housing Lease receivables Hire purchase Other	As at Sep 15 $M Mar 15 $M Sep 14 $M 6,284 5,998 6,199 8,950 9,134 8,791 10,420 10,859 11,684 230,879 217,756 209,122 124,051 118,027 111,902 1,346 1,345 1,481 1,111 1,293 1,492 114 489 56	Movement
		Sep 15 v. Mar 15 Sep 15 v. Sep 14 5% 1% -2% 2% -4% -11% 6% 10% 5% 11% 0% -9% -14% -26% -77% large
	383,155 364,901 350,727	5% 9%
Asia Pacific, Europe & America Overdrafts Credit card outstandings Commercial bills outstanding Term loans - housing Term loans - non-housing Lease receivables Other	1,616 1,643 1,312 1,445 1,370 1,241 3,781 3,286 3,343 7,846 7,430 6,639 69,669 74,041 66,106 341 222 177 137 31 264	-2% 23% 5% 16% 15% 13% 6% 18% -6% 5% 54% 93% large -48%
	84,835 88,023 79,082	-4% 7%
New Zealand Overdrafts Credit card outstandings Term loans - housing Term loans - non-housing Lease receivables Hire purchase Other	1,055 1,147 1,118 1,535 1,609 1,408 61,743 63,311 55,627 38,973 40,259 35,316 214 250 247 860 862 746 - 123 112	-8% -6% -5% 9% -2% 11% -3% 10% -14% -13% 0% 15% -100% -100%
	104,380 107,561 94,574	-3% 10%
Sub-total	572,370 560,485 524,383	2% 9%
Unearned income Capitalised brokerage/mortgage origination fees1 Customers' liabilities for acceptances	(739) (803) (892) 1,253 1,127 1,043 1,371 1,422 1,151	-8% -17% 11% 20% -4% 19%
Gross loans and advances (including assets classified as held for sale)	574,255 562,231 525,685	2% 9%
Provision for credit impairment (refer Note 9)	(4,017) (4,028) (3,933)	0% 2%
Net loans and advances (including assets classified as held for sale)	570,238 558,203 521,752	2% 9%
Assets classified as held for sale	(8,065) - -	n/a n/a
Net loans and advances	562,173 558,203 521,752	1% 8%

1. Capitalised brokerage/mortgage origination fees are amortised over the expected life of the loan.

105

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

8. Net loans and advances (cont’d)

Assets classified as held for sale

On 4 May 2015, the Group announced its intention to sell the Esanda Dealer Finance business within the Australia Division (“Esanda portfolio”). The assets classified as held for sale include lending assets comprising retail point-of-sale finance and wholesale bailment facilities and other Esanda branded finance offered to motor vehicle dealers along with associated provisions and deferred acquisition costs. No impairment losses were recognised on reclassification as held for sale.

On 8th October the Group entered into an agreement to sell the Esanda Dealer Finance business to Macquarie Group Limited. The sale is expected to complete during the first half of 2016. The estimated sale price is $8.2 billion.

9. Provision for credit impairment

Individual provision Balance at start of period New and increased provisions Write-backs Adjustment for exchange rate fluctuations Discount unwind Bad debts written-off		Half Year
Total individual provision	1,061	1,114 -5% 1,061 1,176 -10%
Collective provision Balance at start of period Charge/(release) to income statement Adjustment for exchange rate fluctuations		2,757 6% 2,757 2,887 -5% 55 -27% 95 (155) large 102 -98% 104 25 large
	2,914
	40
	2
Total collective provision1	2,956	2,914 1% 2,956 2,757 7%
Total provision for credit impairment	4,017	4,028 0% 4,017 3,933 2%

1. The collective provision includes amounts for off-balance sheet credit exposures of $677 million at September 2015 (Mar 2015: $646 million; Sep 2014: $613 million). The impact on the income statement for the full year ended 30 September 2015 was a $27 million charge (Mar 2015 half: $7 million charge; Sep 2014 full year: $1 million charge).

Provision movement analysis New and increased individual provisions Australia Asia Pacific, Europe & America New Zealand	Half Year Sep 15 $M Mar 15 $M Movt 616 587 5% 227 116 96% 108 103 5%	Full Year
		Sep 15 $M Sep 14 $M Movt 1,203 1,292 -7% 343 246 39% 211 274 -23%
Write-backs	951 806 18% (174) (260) -33%	1,757 1,812 -3% (434) (447) -3%
Recoveries of amounts previously written-off	777 546 42% (132) (107) 23%	1,323 1,365 -3% (239) (224) 7%
Individual credit impairment charge Collective credit impairment charge/(release)	645 439 47% 40 55 -27%	1,084 1,141 -5% 95 (155) large
Credit impairment charge	685 494 39%	1,179 986 20%

106

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

9. Provision for credit impairment (cont’d)

Individual provision balance Australia Asia Pacific, Europe & America New Zealand	As at Sep 15 $M Mar 15 $M Sep 14 $M 698 698 740 216 219 236 147 197 200	Movement
		Sep 15 v. Mar 15 Sep 15 v. Sep 14 0% -6% -1% -8% -25% -27%
Total individual provision	1,061 1,114 1,176	-5% -10%
Collective provision balance Australia Asia Pacific, Europe & America New Zealand	1,895 1,882 1,829 636 582 515 425 450 413	1% 4% 9% 23% -6% 3%
Total collective provision	2,956 2,914 2,757	1% 7%

10. Deposits and other borrowings

Australia Certificates of deposit Term deposits On demand and short term deposits Deposits not bearing interest Deposits from banks Commercial paper Securities sold under repurchase agreements	As at Sep 15 $M Mar 15 $M Sep 14 $M 57,390 55,857 49,446 66,394 69,595 78,779 164,009 150,832 142,199 7,782 7,133 6,845 19,692 19,761 15,613 15,511 11,446 6,237 177 605 46	Movement Sep 15 v. Mar 15 Sep 15 v. Sep 14 3% 16% -5% -16% 9% 15% 9% 14% 0% 26% 36% large -71% large
	330,955 315,229 299,165	5% 11%
Asia Pacific, Europe & America Certificates of deposit Term deposits On demand and short term deposits Deposits not bearing interest Deposits from banks Commercial paper Securities sold under repurchase agreements	5,379 2,354 2,083 96,487 101,087 82,956 27,663 23,966 20,675 5,126 4,684 4,211 19,249 27,716 22,540 2,965 5,125 3,516 601 565 210	large large -5% 16% 15% 34% 9% 22% -31% -15% -42% -16% 6% large
	157,470 165,497 136,191	-5% 16%
New Zealand Certificates of deposit Term deposits On demand and short term deposits Deposits not bearing interest Deposits from banks Commercial paper Borrowing corporations' debt	677 1,435 1,226 31,795 34,211 30,981 37,662 36,896 30,330 6,103 6,148 5,348 43 43 40 4,511 6,157 5,399 1,578 1,599 1,399	-53% -45% -7% 3% 2% 24% -1% 14% 0% 8% -27% -16% -1% 13%
	82,369 86,489 74,723	-5% 10%
Total Deposits and other borrowings	570,794 567,215 510,079	1% 12%

107

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

11. Subordinated debt

Additional Tier 1 Capital1 Convertible Preference Shares (ANZ CPS) ANZ CPS22 ANZ CPS33 ANZ Capital Notes (ANZ CN) ANZ CN14 ANZ CN25 ANZ CN36 ANZ NZ Capital Notes7 Tier 2 Capital8 Perpetual subordinated notes Term subordinated notes	Half Year Sep 15 $M Mar 15 $M Movt 1,969 1,969 0% 1,336 1,335 0% 1,112 1,110 0% 1,598 1,597 0% 959 958 0% 449 484 -7% 1,188 1,211 -2% 8,398 7,799 8%	Half Year Sep 15 $M Mar 15 $M Movt 1,969 1,969 0% 1,336 1,335 0% 1,112 1,110 0% 1,598 1,597 0% 959 958 0% 449 484 -7% 1,188 1,211 -2% 8,398 7,799 8%	Full Year
			Sep 15 $M Sep 14 $M Movt 1,969 1,967 0% 1,336 1,333 0% 1,112 1,109 0% 1,598 1,595 0% 959 - n/a 449 - n/a 1,188 1,087 9% 8,398 6,516 29%
	1,969
	1,336
	1,112
	1,598
	959
	449
	1,188
	8,398
Total subordinated debt	17,009	16,463 3%	17,009 13,607 25%

1.

2.

ANZ Capital Notes and the ANZ NZ Capital Notes are Basel 3 compliant. APRA has granted transitional capital treatment for ANZ CPS2 and CPS3 until their first conversion date.

• On 17 December 2009, ANZ issued convertible preference shares (CPS2) which will convert into ANZ ordinary shares on 15 December 2016 at a 1% discount (subject to certain conditions being satisfied).

3. On 28 September 2011, ANZ issued convertible preference shares (CPS3) which will convert into ANZ ordinary shares on 1 September 2019 at a 1% discount (subject to certain conditions being satisfied). If ANZ’s Common Equity Tier 1 capital ratio is equal to or less than 5.125% then the convertible preference shares will immediately convert into ANZ ordinary shares at a 1% discount subject to a maximum conversion number. Subject to certain conditions, on and from 1 September 2017 the convertible preference shares are redeemable or convertible into ANZ ordinary shares (on similar terms to the mandatory conversion) by ANZ.

4. On 7 August 2013, ANZ issued convertible notes (ANZ Capital Notes 1 or CN1) which will convert into ANZ ordinary shares on 1 September 2023 at a 1% discount (subject to certain conditions being satisfied). If ANZ’s Common Equity Tier 1 capital ratio is equal to or less than 5.125%, or ANZ receives a notice of non-viability from APRA, then the notes will immediately convert into ANZ ordinary shares at a 1% discount subject to a maximum conversion number. Subject to certain conditions, on 1 September 2021 the notes are redeemable or convertible into ANZ ordinary shares (on similar terms to the mandatory conversion) by ANZ.

5. On 31 March 2014, ANZ issued convertible notes (ANZ Capital Notes 2 or CN2) which will convert into ANZ ordinary shares on 24 March 2024 at a 1% discount (subject to certain conditions being satisfied). If ANZ’s Common Equity Tier 1 capital ratio is equal to or less than 5.125%, or ANZ receives a notice of non-viability from APRA, then the notes will immediately convert into ANZ ordinary shares at a 1% discount subject to a maximum conversion number. Subject to certain conditions, on 24 March 2022 the notes are redeemable or convertible into ANZ ordinary shares (on similar terms to the mandatory conversion) by ANZ.

6. On 5 March 2015, ANZ acting through its New Zealand Branch issued convertible notes (ANZ Capital Notes 3 or CN3) which will convert into ANZ ordinary shares on 24 March 2025 at a 1% discount (subject to certain conditions being satisfied). If ANZ’s Common Equity Tier 1 capital ratio is equal to or less than 5.125%, or ANZ receives a notice of non-viability from APRA, then the notes will immediately convert into ANZ ordinary shares at a 1% discount subject to a maximum conversion number. Subject to certain conditions, on 24 March 2023 the notes are redeemable or convertible into ANZ ordinary shares (on similar terms to the mandatory conversion) by ANZ.

7. On 31 March 2015, ANZ Bank New Zealand Limited (ANZ Bank NZ) issued convertible notes (ANZ NZ Capital Notes) which will convert into ANZ ordinary shares on 25 May 2022 at a 1% discount (subject to certain conditions being satisfied). If ANZ or ANZ Bank NZ’s Common Equity Tier 1 capital ratio is equal to or less than 5.125%, ANZ receives a notice of non-viability from APRA, ANZ Bank NZ receives a direction from RBNZ or a statutory manager is appointed to ANZ Bank NZ and makes a determination, then the notes will immediately convert into ANZ ordinary shares at a 1% discount subject to a maximum conversion number. Subject to certain conditions, on 25 May 2020 the notes are redeemable or convertible into ANZ ordinary shares (on similar terms to the mandatory conversion) by ANZ Bank NZ.

8. The convertible subordinated notes are Basel 3 compliant. APRA has granted transitional capital treatment for all other outstanding subordinated notes until their first call date or, in the case of the perpetual subordinated notes the earlier of the end of the transitional period (December 2021) and the first call date when a step-up event occurs. If ANZ receives a notice of non-viability from APRA, then the convertible subordinated notes will immediately convert into ANZ ordinary shares at a 1% discount subject to a maximum conversion number.

12. Share capital

Issued and quoted securities Ordinary share capital Closing balance Issued during the period1,2 Bought back during the period3 Preference share capital Closing balance Bought back duringtheperiod4	Half Year Sep 15 No. Mar 15 No. 2,902,714,361 2,765,980,222 136,734,139 9,352,451 - - - - - 500,000	Full Year
		Sep 15 No. Sep 14 No. 2,902,714,361 2,756,627,771 146,086,590 28,861,617 - 15,889,156 - 500,000 500,000 -

1.

The company issued 80.8 million ordinary shares under the Institutional Share Placement and 27.3 million ordinary shares under the Share Purchase Plan in 2015.

2. The company issued 28.6 million shares under the Dividend Reinvestment Plan and Bonus Option Plan for the 2015 interim dividend and 9.3 million shares for the 2014 final dividend (Sep 14: 28.7 million shares for the respective interim and final dividends).

3. Following the announcement of the 2013 final dividend, the Company repurchased $500 million of ordinary shares via an on-market buy back resulting in 15.9 million shares being cancelled.

4. All 500,000 Euro Trust Securities on issue were bought back by ANZ for cash at face value (€1,000 per security) and cancelled on 15 December 2014.

108

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

13. Shareholders’ equity

Share capital Balance at start of period Ordinary share capital movements Dividend reinvestment plan Share Placement and Purchase Plan Group employee share acquisition scheme1 Treasury shares in Global Wealth2 Group share option scheme Group share buyback Preference share capital movements Preference shares bought back3	Half Year Sep 15 $M Mar 15 $M Movt 24,152 24,902 -3% 865 257 large 3,206 - n/a 98 (97) large 44 (39) large 2 - n/a - - n/a - (871) -100%	Half Year Sep 15 $M Mar 15 $M Movt 24,152 24,902 -3% 865 257 large 3,206 - n/a 98 (97) large 44 (39) large 2 - n/a - - n/a - (871) -100%	Full Year
			Sep 15 $M Sep 14 $M Movt 24,902 24,512 2% 1,122 851 32% 3,206 - n/a 1 11 -91% 5 24 -79% 2 4 -50% - (500) -100% (871) - n/a
Total share capital	28,367 24,152 17%		28,367 24,902 14%
Foreign currency translation reserve Balance at start of period Transfer to the income statement Currency translation adjustments net of hedges	1,569 (605) large (4) - n/a (446) 2,174 large		(605) (1,125) -46% (4) 37 large 1,728 483 large
Total foreign currency translation reserve	1,119	1,569 -29%	1,119 (605) large
Share option reserve4 Balance at start of period Share based payments/(exercises) Transfer of options/rights lapsed to retained earnings			60 55 9% 16 13 23% (8) (8) 0%
	60
	9
Total share option reserve	68	60 13%	68 60 13%
Available-for-sale revaluation reserve5 Balance at start of period Gain /(loss) recognised Transferred to income statement			160 121 32% 27 69 -61% (49) (30) 63%
	257
Total available-for-sale revaluation reserve	138	257 -46%	138 160 -14%
Cash flow hedge reserve6 Balance at start of period Gain /(loss) recognised Transferred to income statement			169 75 large 111 117 -5% (11) (23) -52%
	325
Total hedging reserve	269 325 -17%		269 169 59%
Transactions with non-controlling interests reserve Balance at start of period Transfer to the income statement	(23) (23) 0% - - n/a		(23) (33) -30% - 10 -100%
Total transactions with non-controlling interests reserve	(23) (23) 0%		(23) (23) 0%
Total reserves	1,571 2,188 -28%		1,571 (239) large

1. As at 30 September 2015, there were 11.4 million ANZEST Treasury shares outstanding (Mar 15: 11.5 million; Sep 14: 13.8 million) . Shares in the Company which are purchased onmarket by ANZEST Pty Ltd (trustee of ANZ employee share and option plans) or issued by the Company to ANZEST Pty Ltd are classified as Treasury shares (to the extent that they relate to unvested employee share-based awards).

2. As at 30 September 2015, there were 11.6 million Global Wealth Treasury shares outstanding (Mar 15: 13.1 million; Sep 14: 11.8 million). Global Wealth purchases and holds shares in the Company to back policy liabilities. These shares are classified as Treasury shares.

3.

4.

5.

All 500,000 Euro Trust Securities on issue were bought back by ANZ for cash at face value (€1,000 per security) and cancelled on 15 December 2014.

The share option reserve arises on the grant of share options/deferred share rights/performance rights (“options and rights”) to selected employees under the ANZ Share Option Plan. Amounts are transferred from the share option reserve to other equity accounts when the options and rights are exercised and to retained earnings when lapsed or forfeited after vesting. Forfeited options and rights due to termination prior to vesting are credited to the income statement.

The available-for-sale revaluation reserve arises on the revaluation of available-for-sale financial assets. Where a revalued financial asset is sold or impaired, that portion of the reserve which relates to that financial asset is recognised in the income statement.

6. The cash flow hedge reserve represents hedging gains and losses recognised on the effective portion of cash flow hedges. The cumulative deferred gain or loss on the hedge is recognised in the income statement when the hedged transaction impacts profit or loss.

109

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

13. Shareholders’ equity, cont’d

Retained earnings Balance at start of period Profit attributable to shareholders of the Company Transfer of options/rights lapsed from share option reserve	Half Year Sep 15 $M Mar 15 $M Movt 25,616 24,544 4% 3,987 3,506 14% 1 7 -86%	Half Year Sep 15 $M Mar 15 $M Movt 25,616 24,544 4% 3,987 3,506 14% 1 7 -86%	Full Year
			Sep 15 $M Sep 14 $M Movt 24,544 21,936 12% 7,493 7,271 3% 8 8 0%
	25,616
	3,987
	1
Total available for appropriation Remeasurement gain/(loss) on defined benefit plans Fair value gain/(loss) attributable to changes in own credit risk of financial liabilities designated at fair value Ordinary share dividend paid Dividend income on Treasury shares held within the Group's life insurance statutory funds Preference share dividend paid Foreign exchange gains on preference shares bought back7	29,604		32,045 29,215 10% (4) 32 large 37 (25) large (4,906) (4,694) 5% 22 22 0% (1) (6) -83% 116 - n/a
	10
	-
	-
Retained earnings at end of period	27,309	25,616 7%	27,309 24,544 11%
Share capital and reserves attributable to shareholders of the Company Non-controlling interests		51,956 10% 95 12%	57,247 49,207 16% 106 77 38%
	57,247
	106
Total shareholders' equity	57,353	52,051 10%	57,353 49,284 16%

7. The Euro Trust Securities were bought back by ANZ for cash at face value and cancelled on 15 December 2014. The foreign exchange gain between the issue date and 15 December 2014 was recognised directly in retained earnings.

14. Changes in composition of the Group

September 2015 Full Year

The Group incorporated ANZ Bank (Thai) Public Company Limited in Thailand on 27 November 2014 for the purpose of conducting banking activities. There were no other material controlled entities incorporated, acquired or disposed of during the year ended 30 September 2015.

September 2014 Full Year

The Group disposed of its ownership interest in ANZ Trustees Limited on 4 July 2014. The contribution to Group profit after tax for the period (1 October 2013 to 4 July 2014) from ordinary activities was $3.7 million.

15. Investments in Associates

15. Investments in Associates
Share of associates'profit		Half Year Sep 15 $M Mar 15 $M Movt 311 314 -1%			Full Year Sep 15 $M Sep 14 $M Movt 625 517 21% Ownership interest held by Group
Contributions to profit1 Associates P.T. Bank Pan Indonesia Bank of Tianjin2 AMMB Holdings Berhad Shanghai Rural Commercial Bank Other associates	Contribution to Group post-tax profit Half Year Full Year Sep 15 $M Mar 15 $M Sep 15 $M Sep 14 $M 43 35 78 86 75 80 155 95 61 77 138 155 112 106 218 142 20 16 36 39
	Half Year Sep 15 $M Mar 15 $M 43 35 75 80 61 77 112 106 20 16				As at
					Sep 15 % Mar 15 % Sep 14 % 39 39 39 14 14 14 24 24 24 20 20 20 n/a n/a n/a
Share of associates' profit	311 314		625 517

1. Contributions to profit reflect the IFRS equivalent results adjusted to align with the Group’s financial year end which may differ from the published results of these entities. Excludes gains or losses on disposal or valuation adjustments.

2. Significant influence was established via representation on the Board of Directors.

110

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

16. Contingent liabilities and contingent assets

There are outstanding court proceedings, claims and possible claims for and against the Group. Where relevant, expert legal advice has been obtained and, in the light of such advice, provisions and/or disclosures as deemed appropriate have been made. In some instances we have not disclosed the estimated financial impact of the individual items either because it is not practicable to do so or because such disclosure may prejudice the interests of the Group.

Note 43 of the 2015 ANZ Annual Financial Statements (when released) will contain a description of contingent liabilities and contingent assets as at 30 September 2015. A summary of some of those contingent liabilities is set out below.

– Bank fees litigation

Litigation funder IMF Bentham Limited commenced a class action against ANZ in 2010, followed by a second similar class action in March 2013. Together the class actions are claimed to be on behalf of more than 40,000 ANZ customers. The customers currently involved in these class actions are only part of ANZ’s customer base for credit cards and transaction accounts.

The applicants contended that the relevant exception fees (honour, dishonour and non-payment fees on transaction accounts and late payment and overlimit fees on credit cards) were unenforceable penalties (at law and in equity) and that various of the fees were also unenforceable under statutory provisions governing unconscionable conduct, unfair contract terms and unjust transactions.

In April 2015, the Full Federal Court delivered judgment in respect of appeals by both parties in the second class action. The Full Federal Court found in ANZ’s favour in respect of all fees subject to appeal (in relation to both the penalty and statutory claims). All but one of those fees are no longer being pursued by IMF Bentham Limited. The one which is being pursued further is the credit card late payment fee – for which IMF Bentham Limited has obtained special leave to appeal to the High Court of Australia. The High Court appeal has been listed for hearing on 4 and 5 February 2016.

The first class action is on hold.

In August 2014, IMF Bentham Limited commenced a separate class action against ANZ for late payment fees charged to ANZ customers in respect of commercial credit cards and other ANZ products (at this stage not specified). The action is expressed to apply to all relevant customers, rather than being limited to those who have signed up with IMF Bentham Limited. The action is at an early stage and has been put on hold.

In June 2013, litigation funder Litigation Lending Services (NZ) commenced a representative action against ANZ for certain fees charged to New Zealand customers since 2007. This action is currently on hold.

There is a risk that further claims could emerge in Australia, New Zealand or elsewhere.

• Regulator investigations into BBSW and foreign exchange trading

Since mid-2012 the Australian Securities and Investments Commission (ASIC) has been undertaking inquiries into historic trading practices in the Australian interbank market known as the Bank Bill Swap Rate (BBSW) market. Since 2014, each of ASIC and the Australian Competition and Consumer Commission (ACCC) have been investigating foreign exchange trading conduct of various banks including ANZ. ASIC's and the ACCC’s investigations are ongoing and the range of potential outcomes include civil and criminal penalties and other actions under the relevant legislation.

– Security recovery actions

Various claims have been made or are anticipated, arising from security recovery actions taken to resolve impaired assets over recent years. ANZ will defend these claims and any future claims.

There is a risk that contingent liabilities described in Note 43 of the 2015 ANZ Annual Financial Statements (when released) and above may be larger than anticipated or that additional litigation or other contingent liabilities may arise.

17. Subsequent events since balance date

CEO Appointment

On 1st October the Board of ANZ announced that Shayne Elliott will succeed Mike Smith as Chief Executive Officer and join the Board on 1 January 2016. Mr Smith will step down as Chief Executive Officer and as Director on 31 December 2015. Mr Smith will be retained as a nonexecutive advisor to the Board, initially for one year, commencing after his period of leave on 11 July 2016. Further details of Mr Elliott’s remuneration arrangements and Mr Smith’s leaving arrangements will be disclosed in the 2015 Remuneration Report.

–

Sale of Esanda Dealer Finance Portfolio

On 8th October the Group entered into an agreement to sell the Esanda Dealer Finance business to Macquarie Group Limited. The sale is expected to be complete during the first half of 2016. The estimated sale price for the portfolio is $8.2 billion.

Other than the matters noted above, there have been no subsequent events from 30 September 2015 to the date of this report.

111

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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112

SUPPLEMENTARY INFORMATION

CONTENTS

Section 9 – Supplementary information

Capital management Average balance sheet and related interest Software capitalisation Full time equivalent staff Funds management and insurance income reconciliation Exchange rates

113

SUPPLEMENTARY INFORMATION

Capital management

ANZ provides capital information as required under APRA’s prudential standard APS 330: Public Disclosure Attachment A. This information is located in the Regulatory Disclosures section of ANZ’s website: shareholder.anz.com/pages/regulatory-disclosure.

Qualifying Capital Tier 1 Shareholders' equity and non-controlling interests Prudential adjustments to shareholders' equity Table 1	As at Sep 15 $M Mar 15 $M Sep 14 $M 57,353 52,051 49,284 (387) (519) (1,211)	Movement
		Sep 15 v. Mar 15 Sep 15 v. Sep 14 10% 16% -25% -68%
Gross Common Equity Tier 1 capital Deductions Table 2	56,966 51,532 48,073 (18,440) (17,796) (16,297)	11% 18% 4% 13%
Common Equity Tier 1 capital Additional Tier 1 capital Table 3	38,526 33,736 31,776 6,958 7,352 6,825	14% 21% -5% 2%
Tier 1 capital	45,484 41,088 38,601	11% 18%
Tier 2 capital Table 4	7,951 7,716 7,138	3% 11%
**Total qualifying capital **	53,435 48,804 45,739	9% 17%
Capital adequacy ratios Common Equity Tier 1 Tier 1 Tier 2	9.6% 8.7% 8.8% 11.3% 10.6% 10.7% 2.0% 2.0% 2.0%
Total	13.3% 12.6% 12.7%
Risk weighted assets Table 5	401,937 386,863 361,529	4% 11%

114

SUPPLEMENTARY INFORMATION

Capital management, cont’d

Table 1: Prudential adjustments to shareholders' equity Treasury shares attributable to ANZ Wealth policy holders Reclassification of preference share capital Accumulated retained profits and reserves of insurance and funds management entities Deferred fee revenue including fees deferred as part of loan yields Available-for-sale reserve attributable to deconsolidated subsidiaries Other	As at Sep 15 $M Mar 15 $M Sep 14 $M 242 287 249 - - (871) (791) (951) (794) 380 397 392 (113) (150) (105) (105) (102) (82)	Movement
		Sep 15 v. Mar 15 Sep 15 v. Sep 14 -16% -3% n/a -100% -17% 0% -4% -3% -25% 8% 3% 28%
Total	(387) (519) (1,211)	-25% -68%
Table 2: Deductions from Common Equity Tier 1 capital Unamortised goodwill & other intangibles (excluding ANZ Wealth Australia and New Zealand) Intangible component of investments in ANZ Wealth Australia and New Zealand Capitalised software Capitalised expenses including loan and lease origination fees Applicable deferred net tax assets Expected losses in excess of eligible provisions Table 8 Investment in other insurance and funds management subsidiaries Investment in ANZ Wealth Australia and New Zealand Investment in banking associates Other deductions	(4,109) (4,369) (3,995) (2,093) (2,117) (2,096) (2,832) (2,631) (2,401) (1,320) (1,197) (1,099) (694) (610) (809) (479) (374) (240) (297) (401) (402) (1,349) (990) (979) (4,734) (4,499) (3,811) (533) (608) (465)	-6% 3% -1% 0% 8% 18% 10% 20% 14% -14% 28% 100% -26% -26% 36% 38% 5% 24% -12% 15%
Total	(18,440) (17,796) (16,297)	4% 13%
Table 3: Additional Tier 1 capital Convertible Preference Shares ANZ CPS2 ANZ CPS3 ANZ Capital Notes 1 ANZ Capital Notes 2 ANZ Capital Notes 3 ANZ Bank NZ Capital Notes Preference Shares Regulatory adjustments and deductions	1,969 1,969 1,967 1,336 1,335 1,333 1,112 1,110 1,109 1,598 1,597 1,595 959 958 - 449 484 - - - 871 (465) (101) (50)	0% 0% 0% 0% 0% 0% 0% 0% 0% n/a -7% n/a n/a -100% large large
Total	6,958 7,352 6,825	-5% 2%
Table 4: Tier 2 capital General reserve for impairment of financial assets Perpetual subordinated notes Subordinated debt Regulatory adjustments and deductions Transitional adjustments	252 249 228 1,188 1,211 1,087 8,398 7,799 6,516 (717) (336) (399) (1,170) (1,207) (294)	1% 10% -2% 9% 8% 29% large 80% -3% large
Total	7,951 7,716 7,138	3% 11%

115

SUPPLEMENTARY INFORMATION

Capital management, cont’d

Table 5: Risk weighted assets On balance sheet Commitments Contingents Derivatives	As at Sep 15 $M Mar 15 $M Sep 14 $M 245,542 241,807 221,147 61,965 56,683 53,140 15,929 16,212 14,658 26,315 24,995 19,940	Movement
		Sep 15 v. Mar 15 Sep 15 v. Sep 14 2% 11% 9% 17% -2% 9% 5% 32%
Total credit risk Table 6 Market risk - Traded Market risk - IRRBB Operational risk	349,751 339,697 308,885 6,868 6,042 7,048 7,433 7,690 13,627 37,885 33,434 31,969	3% 13% 14% -3% -3% -45% 13% 19%
Total risk weighted assets	401,937 386,863 361,529	4% 11%

Table 6: Credit risk weighted assets by Basel asset class Subject to Advanced IRB approach Corporate Sovereign Bank Residential mortgage Qualifying revolving retail (credit cards) Other retail	As at Sep 15 $M Mar 15 $M Sep 14 $M 150,165 140,451 129,087 6,664 5,385 4,923 17,445 22,078 20,329 54,996 53,501 50,068 7,546 7,775 7,546 32,990 31,664 26,858	Movement
		Sep 15 v. Mar 15 Sep 15 v. Sep 14 7% 16% 24% 35% -21% -14% 3% 10% -3% 0% 4% 23%
Credit risk weighted assets subject to Advanced IRB approach	269,806 260,854 238,811	3% 13%
Credit risk specialised lending exposures subject to slotting criteria	32,240 31,442 29,505	3% 9%
Subject to Standardised approach Corporate Residential mortgage Other retail (includes credit cards)	26,217 27,033 23,121 2,882 2,603 2,344 3,625 3,271 2,989	-3% 13% 11% 23% 11% 21%
Credit risk weighted assets subject to Standardised approach	32,724 32,907 28,454	-1% 15%
Credit Valuation Adjustment and Qualifying Central Counterparties	10,170 9,630 7,394	6% 38%
Credit risk weighted assets relating to securitisation exposures Other assets	1,156 1,067 1,030 3,655 3,797 3,691	8% 12% -4% -1%
Total credit risk weighted assets	349,751 339,697 308,885	3% 13%

116

SUPPLEMENTARY INFORMATION

Capital management, cont’d

Table 7: Total provision for credit impairment and expected loss by division Australia International and Institutional Banking New Zealand Global Wealth Other	Collective Provision and Individual Provision Sep 15 $M Mar 15 $M Sep 14 $M 1,828 1,796 1,777 1,697 1,681 1,618 476 536 520 13 12 15 3 3 3	Collective Provision and Individual Provision Sep 15 $M Mar 15 $M Sep 14 $M 1,828 1,796 1,777 1,697 1,681 1,618 476 536 520 13 12 15 3 3 3	Basel Expected Loss	Basel Expected Loss
			Sep 15 $M Mar 15 $M Sep 14 $M 2,635 2,563 2,446 1,300 1,456 1,329 718 779 718 12 12 13 - - -
Total provision for credit impairment and expected loss	4,017 4,028 3,933		4,665 4,810 4,506
Table 8: Expected loss in excess of eligible provisions Basel expected loss: non-defaulted Less: Qualifying collective provision Collective provision Non-qualifying collective provision Standardised collective provision		As at		Movement Sep 15 v. Mar 15 Sep 15 v. Sep 14 4% 15% 1% 7% 10% 18% 1% 11% 28% 100% -13% -10% -5% -10% -26% -19% 4% -29% 6% 12% -12% 49% -12% 49% n/a n/a 28% 100%
Non-defaulted excess included in deduction Basel expected loss: defaulted Less: Qualifying individual provision Individual provision Additional individual provision for partial write offs1 Standardised individual provision Collective provision on advanced defaulted		479 374 240 1,815 2,075 2,020 (1,061) (1,114) (1,176) (633) (859) (777) 107 103 150 (286) (271) (256)
Shortfall in expected loss not included in deduction		(58) (66) (39) 58 66 39
Defaulted excess included in deduction		- - -
Gross deduction		479 374 240
1. Included in eligible provisions post September 2013 due to a change in RWA calculation methodology. Table 9: APRA Basel 3 Common Equity Tier 1

APRA Basel 3 Common Equity Tier 1 Cash profit after preference share dividends Risk weighted assets Portfolio growth and mix Risk migration and expected losses in excess of eligible provisions Non-credit risk Capital retention in insurance businesses and associates Capitalised software and intangibles Other items	Half Year Sep 15 vs Mar 15 +92bps($3.5B) -8bps -5bps -1bp -8bps -4bps -1bp
Organic capital generation Ordinary share dividends (net of dividend reinvestment plan) Other Capital raising	+65bps -38bps -20bps +80bps
Total Common Equity Tier 1 movement	+87bps
APRA Basel 3 Common Equity Tier 1 ratio	9.6%

117

SUPPLEMENTARY INFORMATION

Average balance sheet and related interest1

Gross loans and advances2 Overdrafts and credit cards Commercial bills outstanding Term loans - housing Term loans - non-housing Lease financing Other loans and advances	Half Year Sep 15 Avg bal Int Rate $M $M % 22,203 1,072 9.6% 13,781 135 2.0% 292,206 6,934 4.7% 224,208 5,108 4.5% 9,374 343 7.3% 5,837 51 1.7%	Half Year Mar 15
		Avg bal Int Rate $M $M % 20,901 1,060 10.2% 14,168 137 1.9% 279,758 7,023 5.0% 219,046 5,243 4.8% 9,438 365 7.8% 2,555 45 3.5%
	567,609 13,643 4.8%	545,866 13,873 5.1%
Other interest earning assets Cash Settlement Balances owed to ANZ Collateral Paid Trading and available-for-sale assets Regulatory Deposits Other assets	46,484 209 0.9% 16,562 46 0.6% 9,033 29 0.6% 91,971 1,166 2.5% 1,173 4 0.7% 11 35 n/a	45,498 276 1.2% 15,268 21 0.3% 7,548 31 0.8% 87,995 1,187 2.7% 1,183 4 0.7% 11 2 n/a
	165,234 1,489 1.8%	157,503 1,521 1.9%
Total interest earning assets	732,843 15,132 4.1%	703,369 15,394 4.4%
Non-interest earning assets Derivatives Premises and equipment Insurance assets Other assets Provisions for credit impairment	71,572 2,182 36,380 32,683 (4,055)	65,114 2,180 34,092 29,559 (3,961)
	138,762	126,984
Total average assets	871,605	830,353
Interest bearing deposits and other borrowings Certificates of deposit Term deposits On demand and short term deposits Deposits from banks Commercial paper Securities sold under agreements to repurchase Borrowing corporations' debt	64,616 806 2.5% 192,790 1,951 2.0% 215,001 2,216 2.1% 53,188 327 1.2% 21,322 253 2.4% 1,064 7 1.3% 1,535 36 4.7%	60,740 884 2.9% 196,891 2,259 2.3% 199,826 2,358 2.4% 54,063 356 1.3% 21,135 262 2.5% 675 5 1.5% 1,474 34 4.6%
Other interest bearing liabilities Settlement Balances owed by ANZ Collateral Received Debt issuances & subordinated debt Other liabilities	549,516 5,596 2.0% 3,647 17 0.9% 5,581 20 0.7% 95,591 1,847 3.9% 9,782 174 3.5%	534,804 6,158 2.3% 3,134 18 1.2% 5,339 9 0.3% 95,815 1,901 4.0% 6,606 170 5.2%
	114,601 2,058 3.6%	110,894 2,098 3.8%
Total interest bearing liabilities	664,117 7,654 2.3%	645,698 8,256 2.6%
Non-interest bearing liabilities Deposits Derivatives Insurance Liabilities External unit holder liabilities Other liabilities	18,193 78,374 36,654 3,491 17,811	17,001 64,382 34,974 3,181 14,620
	154,523	134,158
Total average liabilities	818,640	779,856

1. Averages used are predominantly daily averages.

2. Loans & advances as at 30 September 2015 include assets classified as held for sale.

118

SUPPLEMENTARY INFORMATION

Average balance sheet and related interest1 (cont’d)

Gross loans and advances2 Overdrafts and credit cards Commercial bills outstanding Term loans - housing Term loans - non-housing Lease financing Other loans and advances	Full Year Sep 15 Avg bal Int Rate $M $M % 21,554 2,133 9.9% 13,974 272 1.9% 285,998 13,953 4.9% 221,635 10,351 4.7% 9,406 708 7.5% 4,201 95 2.3%	Full Year Sep 14
		Avg bal Int Rate $M $M % 19,399 2,081 10.7% 15,117 303 2.0% 263,762 13,303 5.0% 204,983 10,072 4.9% 9,575 795 8.3% 2,206 198 9.0%
	556,768 27,512 4.9%	515,042 26,752 5.2%
Other interest earning assets Cash Settlement Balances owed to ANZ Collateral Paid Trading and available-for-sale assets Regulatory Deposits Other assets	45,992 485 1.1% 15,917 67 0.4% 8,292 60 0.7% 89,989 2,358 2.6% 1,178 8 0.7% 11 36 n/a	34,693 404 1.2% 13,750 47 0.3% 5,439 38 0.7% 76,821 2,172 2.8% 1,202 10 0.8% 50 101 n/a
	161,379 3,014 1.9%	131,955 2,772 2.1%
Total interest earning assets	718,147 30,526 4.3%	646,997 29,524 4.6%
Non-interest earning assets Derivatives Premises and equipment Insurance assets Other assets Provisions for credit impairment	68,352 2,181 35,239 31,125 (4,008)	42,487 2,133 33,203 28,794 (4,280)
	132,889	102,337
Total average assets	851,036	749,334
Interest bearing deposits and other borrowings Certificates of deposit Term deposits On demand and short term deposits Deposits from banks Commercial paper Securities sold under agreements to repurchase Borrowing corporations' debt	62,683 1,689 2.7% 194,835 4,211 2.2% 207,433 4,576 2.2% 53,624 683 1.3% 21,229 515 2.4% 870 12 1.4% 1,505 70 4.7%	57,901 1,676 2.9% 192,856 4,725 2.5% 176,171 4,244 2.4% 46,735 584 1.2% 17,037 436 2.6% 370 6 1.6% 1,405 62 4.4%
Other interest bearing liabilities Settlement Balances owed by ANZ Collateral Received Debt issuances & subordinated debt Other liabilities	542,179 11,756 2.2% 3,391 34 1.0% 5,460 28 0.5% 95,704 3,748 3.9% 8,199 344 4.2%	492,475 11,733 2.4% 2,481 26 1.0% 3,969 19 0.5% 86,877 3,544 4.1% 5,408 392 7.2%
	112,754 4,154 3.7%	98,735 3,981 4.0%
Total interest bearing liabilities	654,933 15,910 2.4%	591,210 15,714 2.7%
Non-interest bearing liabilities Deposits Derivatives Insurance Liabilities External unit holder liabilities Other liabilities	17,600 71,398 35,816 3,337 16,217	15,381 43,692 33,381 3,422 15,392
	144,368	111,268
Total average liabilities	799,301	702,478

1. Averages used are predominantly daily averages.

2.

Loans & advances as at 30 September 2015 include assets classified as held for sale.

119

SUPPLEMENTARY INFORMATION

Average balance sheet and related interest1 (cont’d)

Gross loans and advances2 Australia Asia Pacific, Europe & America New Zealand	Half Year Sep 15 Avg bal Int Rate $M $M % 377,090 9,257 4.9% 86,886 1,317 3.0% 103,633 3,069 5.9%	Half Year Mar 15
		Avg bal Int Rate $M $M % 358,774 9,480 5.3% 86,172 1,238 2.9% 100,920 3,155 6.3%
	567,609 13,643 4.8%	545,866 13,873 5.1%
Trading and available-for-sale assets Australia Asia Pacific, Europe & America New Zealand	53,152 720 2.7% 26,392 211 1.6% 12,427 235 3.8%	50,278 725 2.9% 25,134 212 1.7% 12,583 250 4.0%
	91,971 1,166 2.5%	87,995 1,187 2.7%
Total interest earning assets3 Australia Asia Pacific, Europe & America New Zealand	452,023 10,143 4.5% 160,210 1,584 2.0% 120,610 3,405 5.6%	428,636 10,422 4.9% 157,469 1,512 1.9% 117,264 3,460 5.9%
	732,843 15,132 4.1%	703,369 15,394 4.4%
Total average assets Australia Asia Pacific, Europe & America New Zealand	551,794 183,650 136,161	524,435 176,849 129,069
Total average assets	871,605	830,353
% of total average assets attributable to overseas activities Interest bearing deposits and other borrowings Australia Asia Pacific, Europe & America New Zealand	36.7% 320,247 3,696 2.3% 151,508 507 0.7% 77,761 1,393 3.6%	36.8% 311,454 4,243 2.7% 146,851 488 0.7% 76,499 1,427 3.7%
	549,516 5,596 2.0%	534,804 6,158 2.3%
Total interest bearing liabilities3 Australia Asia Pacific, Europe & America New Zealand	396,971 5,111 2.6% 168,686 628 0.7% 98,460 1,915 3.9%	387,583 5,706 3.0% 163,031 604 0.7% 95,084 1,946 4.1%
	664,117 7,654 2.3%	645,698 8,256 2.6%
Total average liabilities Australia Asia Pacific, Europe & America New Zealand	513,643 187,679 117,318	491,356 179,210 109,290
	818,640	779,856
% of total average liabilities attributable to overseas activities Total average shareholder's equity Ordinary share capital, reserves and retained earnings4 Preference share capital	37.3% 52,966 -	37.0% 50,131 366
	52,966	50,497
Total average liabilities and shareholder's equity	871,606	830,353

1. Averages used are predominantly daily averages.

2. Loans & advances as at 30 September 2015 include assets classified as held for sale.

3. Intra-group interest earning assets and interest income and Intra-group interest earning liabilities and interest expense have been eliminated.

4. Average shareholders’ equity at 30 September 2015 includes $242 million of Global Wealth shares that are eliminated from the statutory shareholders’ equity balance (Mar 15: $287 million).

120

SUPPLEMENTARY INFORMATION

Average balance sheet and related interest1 (cont’d)

Gross loans and advances2 Australia Asia Pacific, Europe & America New Zealand	Full Year Sep 15 Avg bal Int Rate $M $M % 367,959 18,736 5.1% 86,529 2,553 3.0% 102,280 6,223 6.1%	Full Year Sep 14
		Avg bal Int Rate $M $M % 342,587 18,882 5.5% 77,682 2,245 2.9% 94,773 5,625 5.9%
	556,768 27,512 4.9%	515,042 26,752 5.2%
Trading and available-for-sale assets Australia Asia Pacific, Europe & America New Zealand	51,719 1,434 2.8% 25,765 437 1.7% 12,505 487 3.9%	43,866 1,361 3.1% 20,910 344 1.6% 12,045 467 3.9%
	89,989 2,358 2.6%	76,821 2,172 2.8%
Total interest earning assets3 Australia Asia Pacific, Europe & America New Zealand	440,363 20,566 4.7% 158,843 3,096 1.9% 118,941 6,864 5.8%	400,015 20,570 5.1% 137,023 2,733 2.0% 109,959 6,221 5.7%
	718,147 30,526 4.3%	646,997 29,524 4.6%
Total average assets Australia Asia Pacific, Europe & America New Zealand	538,153 180,258 132,625	475,391 153,827 120,116
Total average assets	851,036	749,334
% of total average assets attributable to overseas activities Interest bearing deposits and other borrowings Australia Asia Pacific, Europe & America New Zealand	36.8% 315,861 7,941 2.5% 149,186 995 0.7% 77,132 2,820 3.7%	36.6% 290,637 8,464 2.9% 131,550 866 0.7% 70,288 2,402 3.4%
	542,179 11,756 2.2%	492,475 11,733 2.4%
Total interest bearing liabilities3 Australia Asia Pacific, Europe & America New Zealand	392,289 10,817 2.8% 165,867 1,232 0.7% 96,777 3,861 4.0%	361,732 11,404 3.2% 142,757 1,017 0.7% 86,721 3,293 3.8%
	654,933 15,910 2.4%	591,210 15,714 2.7%
Total average liabilities Australia Asia Pacific, Europe & America New Zealand	502,529 183,457 113,315	446,892 156,418 99,168
	799,301	702,478
% of total average liabilities attributable to overseas activities Total average shareholder's equity Ordinary share capital, reserves and retained earnings4 Preference share capital	37.1% 51,563 182	36.4% 45,985 871
	51,745	46,856
Total average liabilities and shareholder's equity	851,046	749,334

1. Averages used are predominantly daily averages.

2. Loans & advances as at 30 September 2015 include assets classified as held for sale.

3. Intra-group interest earning assets and interest income and Intra-group interest earning liabilities and interest expense have been eliminated.

4. Average shareholders’ equity at 30 September 2015 includes $242 million of Global Wealth shares that are eliminated from the statutory shareholders’ equity balance (Sep 14: $247 million).

121

SUPPLEMENTARY INFORMATION

Average balance sheet and related interest (cont’d)

Gross earnings rate1 Australia Asia Pacific, Europe & America New Zealand Group	Half Year Sep 15 % Mar 15 % 4.58 4.98 1.84 1.82 5.63 5.92 4.12 4.39	Full Year
		Sep 15 % Sep 14 % 4.77 5.24 1.83 1.86 5.77 5.66 4.25 4.56
Interest spread and net interest margin may be analysed as follows: Australia1 Net interest spread Interest attributable to net non-interest bearing items	Half Year Sep 15 % Mar 15 % 2.01 2.02 0.29 0.26	Full Year
		Sep 15 % Sep 14 % 2.01 2.09 0.29 0.30
Net interest margin - Australia2	2.30 2.28	2.30 2.39
Asia Pacific, Europe & America1 Net interest spread Interest attributable to net non-interest bearing items	1.09 1.07 0.03 0.03	1.08 1.15 0.03 0.02
Net interest margin - Asia Pacific, Europe & America2	1.12 1.10	1.11 1.17
New Zealand1 Net interest spread Interest attributable to net non-interest bearing items	1.81 1.82 0.41 0.45	1.82 1.87 0.43 0.43
Net interest margin - New Zealand2	2.22 2.27	2.25 2.30
Group Net interest spread Interest attributable to net non-interest bearing items	1.82 1.82 0.22 0.22	1.82 1.90 0.22 0.23
Net interest margin2	2.04 2.04	2.04 2.13
Net interest margin (excluding Global Markets)2	2.51 2.51	2.51 2.55

1.

Geographic gross earnings rate, net interest spread and net interest margin are calculated gross of intra group items (Intra-group interest earning assets and associated interest income and intra-group interest bearing liabilities and associated interest expense). 2. Statutory basis.

122

SUPPLEMENTARY INFORMATION

Software capitalisation

As at 30 September 2015, the Group’s intangibles included $2,893 million in relation to costs incurred in acquiring and developing software. Details are set out in the table below:

Balance at start of period Software capitalised during the period Amortisation during the period Software impaired/written-off Foreign exchange differences	Half Year Sep 15 $M Mar 15 $M Movt 2,689 2,533 6% 457 350 31% (275) (267) 3% (13) (4) large 35 77 -55%	Half Year Sep 15 $M Mar 15 $M Movt 2,689 2,533 6% 457 350 31% (275) (267) 3% (13) (4) large 35 77 -55%	Full Year
			Sep 15 $M Sep 14 $M Movt 2,533 2,170 17% 807 777 4% (542) (426) 27% (17) (15) 13% 112 27 large
Total capitalised software	2,893 2,689 8%		2,893 2,533 14%
Capitalised cost analysis by Division Australia International and Institutional Banking New Zealand Global Wealth GTSO and Group Centre	Half Year Sep 15 $M Mar 15 $M Movt 121 93 30% 91 100 -9% 28 14 100% 35 21 67% 182 122 49%		Full Year
			Sep 15 $M Sep 14 $M Movt 214 219 -2% 191 247 -23% 42 33 27% 56 35 60% 304 243 25%
	121
	91
	28
	35
	182
Total	457	350 31%	807 777 4%
Net book value by Division Australia International and Institutional Banking New Zealand Global Wealth GTSO and Group Centre			Full Year
			Sep 15 $M Sep 14 $M Movt 628 553 14% 1,133 998 14% 68 53 28% 121 93 30% 943 836 13%
	628
	1,133
	68
	121
	943
Total	2,893	2,689 8%	2,893 2,533 14%

Full Time Equivalent Staff

At 30 September 2015, ANZ employed 50,152 people worldwide (Mar 15: 51,243; Sep 14: 50,328) on a full-time equivalent basis ("FTEs").

Division Australia International and Institutional Banking New Zealand Global Wealth GTSO and Group Centre	As at Sep 15 Mar 15 Sep 14 9,781 10,235 9,904 7,578 7,785 7,749 5,068 5,090 5,059 2,489 2,538 2,290 25,236 25,595 25,326	Movement
		Sep 15 v Mar 15 Sep 15 v Sep 14 -4% -1% -3% -2% 0% 0% -2% 9% -1% 0%
Total	50,152 51,243 50,328	-2% 0%
Average FTE	50,953 50,786 50,097	0% 2%
Geography Australia Asia Pacific, Europe & America New Zealand	As at Sep 15 Mar 15 Sep 14 21,138 22,096 21,591 20,910 20,910 20,512 8,104 8,237 8,225	Movement
		Sep 15 v Mar 15 Sep 15 v Sep 14 -4% -2% 0% 2% -2% -1%
Total	50,152 51,243 50,328	-2% 0%

123

SUPPLEMENTARY INFORMATION

Funds Management and Insurance Income Reconciliation

Reference Page Net funds management and insurance income - statutory basis 90 Adjustments between cash and statutory profit Treasury shares adjustment 90 Policyholders tax gross up 90 Revaluation of policy liabilities 90	Half Year Sep 15 $M Mar 15 $M Mvmt 757 979 -23% (107) 86 large 91 (277) large (7) (97) -93%	Full Year
		Sep 15 $M Sep 14 $M Mvmt 1,736 1,538 13% (21) 24 large (186) (242) -23% (104) (37) large
Net funds management and insurance income - cash basis 91 Global Wealth - Net funds management and insurance income 69 Australia - Funds management and insurance income International and Institutional Banking - Funds management and insurance income New Zealand - Funds management and insurance income Inter-divisional eliminations	734 691 6% 696 665 5% 20 19 5% 46 48 -4% 44 42 5% (72) (83) -13%	1,425 1,283 11% 1,361 1,249 9% 39 37 5% 94 90 4% 86 74 16% (155) (167) -7%
Net funds management and insurance income - cash basis 91	734 691 6%	1,425 1,283 11%

Exchange rates

Major exchange rates used in the translation of foreign subsidiaries, investments in associates and issued debt are as follows:

Chinese Renminbi Euro Pound Sterling Indian Rupee Indonesian Rupiah Japanese Yen Malaysian Ringgit New Taiwan Dollar New Zealand Dollar Papua New Guinean Kina United States Dollar	Balance sheet As at Sep 15 Mar 15 Sep 14 4.4573 4.7365 5.3787 0.6229 0.7057 0.6895 0.4625 0.5163 0.5383 46.142 47.759 53.941 10,281 9,987 10,660 84.072 91.715 95.677 3.1176 2.8372 2.8632 23.066 23.887 26.639 1.1003 1.0188 1.1219 2.0123 2.0439 2.1717 0.7013 0.7634 0.8752	Profit & Loss Average	Profit & Loss Average
		Half Year Sep 15 Mar 15 4.6831 5.0786 0.6767 0.6909 0.4853 0.5295 48.141 50.911 10,127 10,271 91.330 95.713 2.8898 2.8623 23.511 25.580 1.0878 1.0691 2.0649 2.1233 0.7480 0.8200	Full Year
			Sep 15 Sep 14 4.8803 5.6547 0.6838 0.6779 0.5074 0.5552 49.522 56.166 10,199 10,787 93.515 94.133 2.8761 2.9749 24.543 27.587 1.0785 1.0931 2.0940 2.2353 0.7839 0.9201

124

DEFINITIONS

AASs – Australian Accounting Standards.

AASB – Australian Accounting Standards Board. The term “AASB” is commonly used when identifying AASs issued by the AASB.

ADIs – Authorised Deposit-taking Institutions.

APRA – Australian Prudential Regulation Authority.

Cash and cash equivalents comprise coins, notes, money at call, balances held with central banks, liquid settlement balances (readily convertible to known amounts of cash which are subject to insignificant risk of changes in value) and securities purchased under agreements to resell (“reverse repos”) in less than three months.

Cash profit is a measure of profit which is prepared on a basis other than in accordance with accounting standards. Cash profit represents a measure of the result of the ongoing business activities of the Group, enabling shareholders to assess Group and Divisional performance against prior periods and against peer institutions. To calculate cash profit, the Group excludes items from statutory net profit as noted below. These items are calculated consistently period on period so as not to discriminate between positive and negative adjustments.

Gains and losses are adjusted where they are significant, or have the potential to be significant in any one period, and fall into one of three categories:

1. non-core gains or losses included in earnings arising from changes in tax, legal or accounting legislation or other non-core items not associated with the ongoing operations of the Group;

2. treasury shares, revaluation of policy liabilities, economic hedging impacts and similar accounting items that represent timing differences that will reverse through earnings in the future; and

3. accounting reclassifications between individual line items that do not impact reported results, such as policyholder tax gross up.

Collective provision is the provision for credit losses that are inherent in the portfolio but not able to be individually identified. A collective provision is only recognised when a loss event has occurred. Losses expected as a result of future events, no matter how likely, are not recognised.

Covered bonds are bonds issued by an ADI to external investors secured against a pool of the ADI's assets (the cover pool) assigned to a bankruptcy remote special purpose entity. The primary assets forming the cover pool are mortgage loans. The mortgages remain on the issuer's balance sheet. The covered bond holders have dual recourse to the issuer and the cover pool assets. The mortgages included in the cover pool cannot be otherwise pledged or disposed of but may be repurchased and substituted in order to maintain the credit quality of the pool. The Group issues covered bonds as part of its funding activities.

Customer deposits represent term deposits, other deposits bearing interest, deposits not bearing interest and borrowing corporations’ debt excluding securitisation deposits.

Divisional revenue includes net interest income, share of associates' profit and other operating income before the elimination of intra group items.

GLA – Gross Loans and Advances. This is made up of loans and advances, acceptances and capitalised brokerage/mortgage origination fees less unearned income.

IFRS – International Financial Reporting Standards.

Impaired assets are those financial assets where doubt exists as to whether the full contractual amount will be received in a timely manner, or where concessional terms have been provided because of the financial difficulties of the customer. Financial assets are impaired if there is objective evidence of impairment as a result of a loss event that occurred prior to the reporting date, and that loss event has had an impact, which can be reliably estimated, on the expected future cash flows of the individual asset or portfolio of assets.

Impaired loans comprise drawn facilities where the customer’s status is defined as impaired.

Individual provision is the amount of expected credit losses on financial instruments assessed for impairment on an individual basis (as opposed to on a collective basis). It takes into account expected cash flows over the lives of those financial instruments.

Net interest margin is net interest income as a percentage of average interest earning assets.

Net loans and advances represents gross loans and advances less provisions for credit impairment.

Net tangible assets equal share capital and reserves attributable to shareholders of the Group less preference share capital and unamortised intangible assets (including goodwill and software).

Operating expenses include personnel expenses, premises expense, technology expenses, restructuring expenses, and other operating expenses (excluding credit impairment charges).

Operating income includes net interest income, net fee and commission income, net funds management and insurance income, share of associates’ profit and other income.

125

DEFINITIONS

Regulatory deposits are mandatory reserve deposits lodged with local central banks in accordance with statutory requirements.

Restructured items comprise facilities in which the original contractual terms have been modified for reasons related to the financial difficulties of the customer. Restructuring may consist of reduction of interest, principal or other payments legally due, or an extension in maturity materially beyond those typically offered to new facilities with similar risk.

Settlement balances owed to / from ANZ represent financial assets and/or liabilities which are in the course of being settled. These may include trade dated assets and liabilities, nostro / vostro accounts and settlement accounts.

Description of divisions

The Group operates on a divisional structure with Australia, International and Institutional Banking (IIB), New Zealand, and Global Wealth being the major operating divisions. The IIB and Global Wealth divisions are coordinated globally. Global Technology, Services & Operations and Group Centre provide support to the operating divisions, including technology, operations, shared services, property, risk management, financial management, strategy, marketing, human resources and corporate affairs. The Group Centre also includes Group Treasury and Shareholder Functions.

Australia

The Australia division comprises the Retail and Corporate and Commercial Banking business units.

• Retail

Retail is responsible for delivering a full range of banking services to consumer customers, using capabilities in product management, analytics, customer research, segmentation, strategy and marketing.

• Home Loans provides housing finance to consumers in Australia for both owner occupied and investment purposes, as well as providing housing finance for overseas investors.

• Cards and Personal Loans provides unsecured lending products to retail customers.

• Deposits and Payments provides transaction banking, savings and investment products, such as term deposits and cash management accounts.

Retail delivers banking solutions to customers across multiple distribution channels including the Australian branch network, ANZ Direct, specialist sales channels and digital channels (including goMoney[TM] , Internet Banking, anz.com). The retail distribution network provides retail and wealth solutions to consumers, as well as providing small business solutions and meeting the various cash and cheque handling needs of corporate, commercial and institutional customers.

• Corporate and Commercial Banking (C&CB)

• Corporate Banking provides a full range of banking services including traditional relationship banking and sophisticated financial solutions, primarily to large private companies, smaller listed companies and multi-national corporation subsidiaries.

• Regional Business Banking provides a full range of banking services to non-metropolitan commercial and agri (including corporate) customers.

• Business Banking provides a full range of banking services, to metropolitan based small to medium sized business clients with a turnover of $5 million up to $125 million.

• Small Business Banking provides a full range of banking services to metropolitan and regional based small businesses in Australia with a turnover of up to $5 million and lending up to $1 million.

• Esanda provides motor vehicle and equipment finance.

International and Institutional Banking

International and Institutional Banking (IIB) division comprises Global Products, Retail Asia Pacific and Asia Partnerships. IIB services three main customer segments: Global Banking, International Banking and Retail Asia Pacific. Global Banking serves institutional customers with multi-product, multi-geographic requirements, International Banking serves institutional customers with less complex needs and Retail Asia Pacific focuses on affluent and emerging affluent customers across 21 countries.

• Global Products

Global Products service Global Banking and International Banking customers across three product sets:

• Global Transaction Banking which provides working capital and liquidity solutions including documentary trade, supply chain financing, structured trade finance as well as cash management solutions, deposits, payments and clearing.

• Global Markets provides risk management services to clients globally on foreign exchange, interest rates, credit, commodities, debt capital markets and wealth solutions. Markets provide origination, underwriting, structuring and risk management services, advice and sale of credit and derivative products. The business unit also manages the Bank’s interest rate exposure as well as its liquidity position.

• Global Loans and Advisory which provides specialised loan structuring and execution, loan syndication, project and export finance, debt structuring and acquisition finance, structured asset finance and corporate advisory.

• Retail Asia Pacific provides end-to-end financial solutions to individuals and small businesses including deposits, credit cards, loans, investments and insurance. Leveraging our distinctive footprint we enable client’s access to opportunities across the region and connect them to specialists for their banking needs in each location.

• Asia Partnerships comprises of strategic partnerships and investments across Asia which provide the Bank with local business and relationship access as well as country and regulatory insights.

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DEFINITIONS

New Zealand

The New Zealand division comprises Retail and Commercial business units.

• Retail

Retail provides products and services to Retail and Small Business Banking customers via the branch network, mortgage specialists, business managers, the contact centre and a variety of self-service channels (internet banking, phone banking, ATMs, website and mobile phone banking). Retail customers have personal banking requirements and Small Business Banking customers consist primarily of small enterprises with annual revenues of less than NZD 5 million. Core products include current and savings accounts, unsecured lending (credit cards, personal and business loans and overdrafts) and home and business loans secured by mortgages over property. The Retail business unit distributes insurance and investment products on behalf of the Global Wealth division.

• Commercial

Commercial provides services to Commercial & Agri (CommAgri) and UDC customers. CommAgri customers consist of primarily privately owned medium to large enterprises. Commercial’s relationship with these businesses ranges from simple banking requirements with revenue from deposit and transactional facilities, and cash flow lending, to more complex funding arrangements with revenue sourced from a wider range of products. UDC is principally involved in the financing and leasing of plant, vehicles and equipment, mainly for small and medium sized businesses, as well as investment products.

Global Wealth

The Global Wealth division comprises Funds Management, Insurance and Private Wealth business units which provide investment, superannuation, insurance and private banking solutions to customers across the Asia-Pacific region to make it easier for them to connect with, protect and grow their wealth.

• Private Wealth includes global private banking business which specialises in assisting individuals and families to manage, grow and preserve their wealth.

• Funds Management includes the Pensions and Investment business and E*TRADE.

• Insurance includes Life Insurance, General Insurance and ANZ Lenders Mortgage Insurance.

• Corporate and Other includes income from invested capital and profits from the Advice and Distribution business.

Global Technology, Services & Operations and Group Centre

GTSO and Group Centre provide support to the operating divisions, including technology, operations, shared services, property, risk management, financial management, strategy, marketing, human resources and corporate affairs. The Group Centre includes Group Treasury and Shareholder Functions.

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ASX APPENDIX 4E – CROSS REFERENCE INDEX

Page Details of the reporting period and the previous corresponding period (4E Item 1) ...................................................................................... Table of Contents Results for Announcement to the Market (4E Item 2) ..................................................................................................................................... After front cover Statement of Comprehensive Income (4E Item 3) ......................................................................................................................................................... 94, 95 Statement of Financial Position (4E Item 4) ......................................................................................................................................................................... 96 Statement of Cash Flows (4E Item 5) .................................................................................................................................................................................. 97 Statement of Changes in Equity (4E Item 6) ........................................................................................................................................................................ 98 Dividends and dividend dates (4E Item 7) ....................................................................................................................................................... After front cover Dividend Reinvestment Plan (4E Item 8) ........................................................................................................................................................ After front cover Net Tangible Assets per security (4E Item 9) ....................................................................................................................................................................... 14 Details of entities over which control has been gained or lost (4E Item 10) ....................................................................................................................... 110 Details of associates and joint venture entities (4E Item 11) .............................................................................................................................................. 110 Other significant information (4E Item 12) .......................................................................................................................................................................... 111 Accounting standards used by foreign entities (4E Item 13) .............................................................................................................................. Not applicable Commentary on results (4E Item 14) ................................................................................................................................................................................... 19 Statement that accounts are being audited (4E Item 15) ................................................................................................................................ After front cover

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ALPHABETICAL INDEX

PAGE Appendix 4E Statement ......................................................................................................................................................................................................... 2 Appendix 4E Cross Reference Index ................................................................................................................................................................................. 128 Basis of Preparation ............................................................................................................................................................................................................. 99 Strategic Review .................................................................................................................................................................................................................. 17 Group Results ...................................................................................................................................................................................................................... 19 Changes in Composition of the Group ............................................................................................................................................................................... 110 Condensed Consolidated Balance Sheet ............................................................................................................................................................................. 96 Condensed Consolidated Cash Flow Statement .................................................................................................................................................................. 97 Condensed Consolidated Income Statement ....................................................................................................................................................................... 94 Condensed Consolidated Statement of Comprehensive Income ......................................................................................................................................... 95 Condensed Statement of Changes in Equity........................................................................................................................................................................ 98 Contingent Liabilities and Contingent Assets ..................................................................................................................................................................... 111 Definitions .......................................................................................................................................................................................................................... 125 Deposits and Other Borrowings ......................................................................................................................................................................................... 107 Dividends ........................................................................................................................................................................................................................... 103 Earnings Per Share ............................................................................................................................................................................................................ 104 Geographic Results .............................................................................................................................................................................................................. 75 Income ............................................................................................................................................................................................................................... 100 Income Tax Expense ......................................................................................................................................................................................................... 102 Investments In Associates.................................................................................................................................................................................................. 110 Media Release ....................................................................................................................................................................................................................... 7 Net Loans and Advances ................................................................................................................................................................................................... 105 Note to the Cash Flow Statement ...................................................................................................................................................................................... 104 Operating Expenses ........................................................................................................................................................................................................... 101 Profit Reconciliation ............................................................................................................................................................................................................. 83 Provision for Credit Impairment .......................................................................................................................................................................................... 107 Divisional Results ................................................................................................................................................................................................................. 45 Share Capital ..................................................................................................................................................................................................................... 108 Shareholders’ Equity .......................................................................................................................................................................................................... 109 Subsequent Events Since Balance Date ............................................................................................................................................................................ 111 Summary .............................................................................................................................................................................................................................. 11 Subordinated Debt ............................................................................................................................................................................................................. 108 Supplementary Information – Average Balance Sheet and Related Interest ..................................................................................................................... 118 Supplementary Information – Capital Management ........................................................................................................................................................... 114 Supplementary Information – Exchange Rates .................................................................................................................................................................. 124 Supplementary Information – Full Time Equivalent Staff ................................................................................................................................................... 123 Supplementary Information – Funds Management and Insurance Income Reconciliation ................................................................................................. 124

129

ALPHABETICAL INDEX

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