Australia and New Zealand Banking Group Ltd. - Interim / Quarterly Report 2011

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Results Presentation & Investor Discussion Pack

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Mike Smith Chief Executive Officer

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Overview of financial performance

	1H11	Growth	Growth
	AUDm	vs 2H10	vs 1H10
Underlying Profit	2,818	3%	23%
Revenue	8,430	3%	11%
Expenses	3,821	3%	18%
Provisions	660	(9%)	(40%)
Statutory Net Profit After Tax	2,664	3%	38%
EPS (cents)	109.6	2%	20%
1H11 Franked Dividend (cents)	64	n/a	23%
Customer deposits	268,705	4%	13%
Net loans and advances including acceptances	375,833	2%	7%

All figures other than statutory net profit after tax and dividend are presented on an underlying basis.

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Australia

Underlying profit growth (AUDm)	1H11 v 2H10	1H11 v 1H10
Australia Region	2%	15%
Australia Division	(6%)	5%

1H11 Growth v System HOH[1]

Retail revenue, lending and deposit growth HOH

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1.6x
1.2x
Mortgages Household Deposits
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System

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Rebased: 1H10 = 100
1.15
1.10
1.05
1.00
0.95
1H10 2H10 1H11
Revenue Deposits Lending
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Source: APRA Statistics

New Zealand

Underlying profit growth (NZDm)	1H11 v 2H10	1H11 v 1H10
New Zealand Region	19%	63%
New Zealand Businesses	20%	large

NZ Region revenue & expense growth (NZD)

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6% 6%
5%5%
4% 4%
2%
0%
-3%
-5%
2008 2009 2010 1H11 1H11
(PCP) (HoH)
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Revenue Expenses

NZ Businesses Pro forma Revenue & Margins

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NZD m
1,500 2.50%
1,200 2.40%
900 2.30%
600 2.20%
300 2.10%
0 2.00%
1H10 2H10 1H11
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NII (LHS)

Other operating income (LHS) NZ Businesses NIM (RHS)

Asia Pacific, Europe & America

Underlying profit growth (USDm)	1H11 v 2H10	1H11 v 1H10
Asia Pacific, Europe & America Region	11%	44%

APEA lending and deposit APEA plus APEA sourced revenue growth HOH 18% of Group % 1H11 Group revenue

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70%
62%
60%
50%
50%
40%
70%
30% 15%
22%
19%
20%
15%
10%
0%
HOH PCP 1
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APEA sourced revenue
contributed an
additional 3% to Group
revenues 1H11, up
from 2% FY10
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APEA New Zealand Australia

Net loans & advances including acceptances Deposits

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Includes RBS acquisition

Institutional

Underlying profit growth (AUDm)	1H11 v 2H10	1H11 v 1H10
Institutional Division	10%	24%

Growing and diversifying regional client base

Increased connectivity driven revenue

Geographic Mix of new clients won past 12 months

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16% Australia
Asia
20%
New Zealand
4% 61%
Europe & America
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Domestic
Booked Cross
Border
78% Cross border
22%
revenues
up 10% PCP
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Funding and Capital

Strong Funding Composition

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12% 11%
17%
22%
6% 6%
5%
7% 16% 15%
15%
14%
58% 60%
55%
50%
7% 8% 8% 8%
Sep 08 Sep 09 Sep 10 Mar 11
SHE & Hybrid Debt Customer funding
>1 Year Residual Maturity Term Debt < 1 year
Short Term W/sale Funding
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Strong Capital Position Core Tier-1 Capital Ratio March 2011

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~11.8%
~9.5%
8.5%
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Current APRA Basel III FSA Fully Aligned

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Emerging differentiation

Super Regional strategy giving us greater exposure to Asia‟s growth
Building blocks in place via both acquisition and investment in capability
Developing stronger customer propositions
Driving productivity gains from our hubs
Integrating the Super Regional strategy into all our businesses

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Peter Marriott Chief Financial Officer

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First Half 2011 – The Numbers

$m

Performance 2H10 v 1H11

62 116 2,818 87 151 2,727 2,664 154 2,576 Up 3% Up 3% 2H10 Non-Core 2H10 Profit Before Provisions Tax & OEI 1H11 Non-Core 1H11 Statutory Items Underlying Provisions Underlying Items Statutory Profit Profit profit Profit

1H11 v 1H10	1H11 v 1H10	1H11 v 1H10	1H11 v 1H10	1H11 v 1H10	1H11 v 1H10	1H11 v 1H10	1H11 v 1H10	1H11 v 1H10
1H10 Statutory Profit	Non-Core Items	2H10 Underlying Profit	Profit Before Provisions	Provisions	Tax & OEI	1H11 Underlying Profit	Non-Core Items	1H11 Statutory Profit
1,925	373	2,298	291	438	(209)	2,818	154	2,664
			Up 7%			Up 23%		Up 38%

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Adjust for acquisitions & FX – The Pro forma Numbers

Growth 1H11 v 2H10 – Underlying & Pro forma

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Profit before
Revenue Expenses Net Profit after Tax
Provisions
5.5%
4.1% 4.1% 4.1%
3.4%
2.6% 2.6% 2.7%
Underlying Pro Forma Underlying Pro Forma Underlying Pro Forma Underlying Pro Forma
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Growth 1H11 v 1H10 – Underlying & Pro forma Profit before Revenue Expenses Net Profit after Tax Provisions Underlying Pro forma Underlying Pro forma Underlying Pro forma Underlying Pro forma 11% 8% 18% 10% 7% 6% 23% 22%

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Foreign Exchange impacts

Earnings Composition by Region & Average Translation Rates

% Group Underlying profit

90% 100%	90% 100%						1.30 1.40
80%
							1.20
70%
60%							1.10
40% 50%							0.90 1.00
30%
							0.80
20%
10%							0.70
0%							0.60
		2H09	1H10	2H10		1H11
	APEA (LHS)				New Zealand		(LHS)
	Australia (LHS)				AVG AUD/USD (RHS)
	AVG	AUD/NZD (RHS)

Earnings Per Share Impact

Current Hedging Unhedged

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~(3.1%)
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(2.5%)
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(1.9%)
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~(1.5%)

1H11 HOH

FY11 @ Current rates

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Divisional overview

Profit Before Provisions (Pro forma)

Australia Division (AUD) APEA (USD) NZ Businesses (NZD) Institutional (AUD)

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1H11	HOH	PCP
2,312	4%	5%
538	25%	20%
738	6%	14%
1,591	2%	1%

Underlying Profit (Pro forma)

Australia Division (AUD) APEA (USD) NZ Businesses (NZD) Institutional (AUD)

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1H11	HOH	PCP
1,329	(6%)	2%
385	15%	38%
453	20%	large increase
1,028	12%	26%

NPAT 2H10 1H11 Increase 1H11 Decrease

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Income composition

Income movement (Pro forma) 1H11 v 2H10 ($m)

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Markets Mix
8,430
Impact
234
Up 9%
94
8,102
Up 2%
Up 4%
2H10 NII Other 1H11
Income
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Markets Revenue by Geography

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$m
1,600
23% CAGR
1,200
800
400
1H08 2H08 1H09 2H09 1H10 2H10 1H11
Australia APEA New Zealand
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Pro forma NII movement
1H11 v 2H10
$m
220 5,642
5,548
126
Down 2% Up 4%
2H10 NII Global Markets Other NII 1H11
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Net Interest Margin

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bps Movement 1H11 V 2H10
7.2
249.7 1.3
247.2
1.0
0.4
4.2 5.4
278.0 Up 2.9 bps Ex-Markets 280.9
Down 2.5 bps
2H10 Funding Funding Costs Deposits Assets Other Markets 1H11
&
Asset Mix
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Movement 1H11 v 1H10 (bps)

1H10	Funding & Asset Mix	Funding Costs	Deposits	Assets	Other	Markets	1H11
245.0	(0.4)	(2.9)	(10.1)	22.9	2.1	(9.3)	247.2

Divisional movement 1H11 v 2H10 (bps)

Australia Division NZ Businesses APEA ex-markets Institutional ex-Markets

258.0 Up 4.0bps 243.8 Up 5.6bps 282.0 Up 6.0 bps 312.8 Down 9.2bps 2H10 1H11 Increase 1H11 Reduction

Net Interest Margin

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Net Interest Margin HOH Composition of margin
relative to peers
2.70%
•
Key differentiator is asset mix:
2.50%
•
Mix of mortgages
2.30% • Institutional lending
•
Greater proportion of undrawn
lines which are included in NII
2.10%
but not assets
• Line fees included in NII
1.90%
•
ANZ CBA NAB WBC Higher capital
1.70%
1.50%
2H07 1H08 2H08 1H09 2H09 1H10 2H10
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Investment continues in high growth businesses

Revenue & Expense Growth Pro forma 1H11 v 2H10

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Mature Domestic
Investing for Growth
Businesses
18%
14%
8%
4% 4%
3%
1%
-4%
Australia Division New Zealand Asia Pacific Institutional
Businesses Europe & America
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Individual Provision Charge & Impaired Assets

Total Provision Charge

New Impaired Assets

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AUDm
1,800
1,621
1,600 1,435
1,400
1,200
1,098
1,000
722
800
660
600
400
200
0
-200
1H09 2H09 1H10 2H10 1H11
Institutional Australia Division
NZ Businesses APEA ex-Institutional
CP charge
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AUDm
4,000 3,600
3,500 3,126
3,035
3,000
2,437
2,319
2,500
2,000
1,500
1,000
500
0
1H09 2H09 1H10 2H10 1H11
Australia Division NZ Businesses
APEA ex-Institutional Institutional
Oswal
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Collective Provision Charge & Management Overlay

Collective Provision Charge

Management Overlay Charge 1H11

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$m
500
400
300
200
100
0
-100
-200
-300
-400
1H09 2H09 1H10 2H10 1H11
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$m Reflects release
79 made prior to
1st Canterbury 60
earthquake
-19
Australia NZ Businesses Group
Division
Management Overlay Balance
$m
600
Natural
Disasters
400
200
-
Mar09 Sep09 Mar10 Sep10 Mar11
Eco Cycle & Concentration (Management Overlay)
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Lending Growth Risk Profile Portfolio Mix

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Outlook

Group Margin ex-Markets

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2.78% 2.81%
2.69%
2.55%
2.35%
 Mature
 Growth
1H09 2H09 1H10 2H10 1H11
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Markets Income

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1600 $m
1200
800
400
0
1H08 2H08 1H09 2H09 1H10 2H10 1H11
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Lending Volumes / Other Income

Annualised HOH Growth (FX Adj)

16% 12% 6% -1% Australia NZ Businesses Institutional APEA exDivision Institutional

Currency Impacts

Current Hedging Unhedged

(3.1%) (1.5%) ~(0.7%) ~(0.3%) FY11 PCP FY11 sensitivity @ Current rates to further 5%

Cost Growth

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Revenue Growth Expense Growth
5%
4% 4%
3%
2%
1%
1H10 2H10 1H11
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Total Provision Charge

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1,621
1,435
1,098
722 660
1H09 2H09 1H10 2H10 1H11
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack Net Interest Margin

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NIM movement summary

Basis points (bps)	Group	Regions Australia NZ	Divisions Australia Division NZ Businesses Global Institutional
	HOH PCP	HOH PCP HOH PCP	HOH PCP HOH PCP HOH PCP
Starting NIM	249.7 245.0	263.1 259.6 234.0 219.7	254.0 264.0 238.2 221.2 217.0 213.8
Funding & Asset Mix Funding Costs Deposits Assets Other	1.3 -0.4 -0.4 -2.9 -4.2 -10.1 7.2 22.9 -1.0 2.0	-0.6 -2.3 -1.0 -0.4 1.1 -1.3 -3.9 -6.9 -3.6 -6.9 -7.8 -19.1 6.9 17.3 17.6 44.9 -1.1 -1.9 2.1 9.0	-2.3 -6.3 -1.0 0.4 -1.8 -5.9 2.6 -2.8 -5.8 -8.8 -1.9 4.4 -4.7 -9.2 -8.6 -20.9 0.7 -3.8 5.9 13.0 18.9 48.4 6.0 24.8 2.5 -0.7 2.1 3.5 -12.2 -7.5
Movement ex-markets	2.9 11.5	2.7 4.9 7.0 27.5	4.0 -6.0 5.6 22.6 -9.2 12.0
Markets	-5.4 -9.3	-6.4 -5.1 -5.5 -11.8	0.0 0.0 0.0 0.0 -9.7 -27.7
Total Movement	-2.5 2.2	-3.7 -0.2 1.4 15.7	4.0 -6.0 5.6 22.6 -18.9 -15.7
Ending NIM	247.2 247.2	259.4 259.4 235.4 235.4	258.0 258.0 243.8 243.8 198.1 198.1

Some small variances to the detailed NIM pages exist as a result of rounding

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Net Interest Margin

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Drivers of Net Interest Margin

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1H11 Net Interest Margin Ex-Markets Composition
2.81% 2.81%
APEA
Other
New Institutional Deposits
Commercial Deposits
Zealand Deposits
Retail Deposits
Institutional Lending
Commercial Lending
Australia Lending
Retail Lending
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Geography

Product

Key Drivers by Product Category

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Net Interest Margin - Group

NIM movement 1H11 v 2H10

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bps 7.2
1.3
1.0
249.7
0.4
247.2
4.2 5.4
Ex-markets up 2.9 bps
Down 2.5 bps
2H10 Funding & Funding Costs Deposits Assets Other Markets 1H11
Asset Mix
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Key drivers of movement

Funding mix benefit from reduced reliance on wholesale funding and higher mix Funding & Asset Mix of free funds. This benefit was partially offset by higher proportion of Mortgages and Relationship lending assets.

Funding Costs Impact of higher wholesale funding costs Largely impacted by increased competition across NZ and Australia for deposits Deposits and negative product mix impacts

Asset repricing and mix benefits from the migration of fixed rate mortgages to Assets variable rates in NZ and Australia. Fee income continues to benefit from higher commitment and line fees on undrawn balances in Relationship Lending

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Net Interest Margin - Australia Division

NIM movement 1H11 v 2H10

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bps
2.5 258.0
5.9
254.0 2.6
2.3
4.7
Up 4.0 bps
2H10 Funding & Asset Funding Costs Deposits Assets Other 1H11
Mix
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Key drivers of movement

Asset mix impacted an increase in the proportion of mortgage business during Funding & Asset Mix the half Funding Costs Favourable funding cost impact primarily from lower cost of basis risk Largely driven by mix impacts including switching to term deposit products, Deposits increased deposit competition and lower returns from the insensitive and replicating portfolio Improved asset margins, product mix and shift from low margin fixed rate to Assets variable rate mortgages offset by competition on lending facilities and lower fees

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Net Interest Margin - New Zealand Businesses

NIM movement 1H11 v 2H10

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bps
243.8
18.9 2.1
238.2
1.0
5.8
Up 5.6 bps 8.6
2H10 Funding & Asset Funding Costs Deposits Assets Other 1H11
Mix
Key drivers of movement
Funding & Asset Mix Decrease primarily driven by decline in net free funds and switching
Funding Costs Increase in wholesale funding costs
Deposits Continued increased competition in deposits
Increase driven by impact of asset repricing across all businesses and
Assets
switching between fixed and variable home loans
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Net Interest Margin – Global Institutional

NIM movement 1H11 v 2H10

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bps 6.0
217.0
0.7
1.8 1.9
12.2
198.1
Ex-markets down 9.2 bps
9.7
Down 18.9 bps
2H10 Funding & Funding Costs Deposits Assets Other Markets 1H11
Asset Mix
Key drivers of movement
Funding & Asset Mix Increase in proportion of lower margin wholesale deposits
Impact of higher funding costs primarily due to reduced spreads on deposit
Funding Costs
book and increased wholesale costs
Improvement in margins from Asian Term Deposit‟s and product mix benefits
Deposits
from reduced mix in low-margin term deposits
Increase primarily driven by asset repricing and improved product mix benefits
Assets
offset by increased competition primarily in Relationship Lending
Other Various interest recoveries in 2H10
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack Balance Sheet Management

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Group loans and deposits

Group customer deposits

		Growth Rates	Growth Rates	Growth Rates
FY07	FY08		FY09	FY10	1H11
15%	13%		14%	11%	4%

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$b
400
350
300
250
200
150
100
50
0
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0 50 100 150 200 250 300 350 400 $b	Sep 07 Sep 08 Sep 09 Sep 10 Mar 11 Retail Commercial $	Sep 07 Sep 08 Sep 09 Sep 10 Mar 11 Retail Commercial $	Sep 07 Sep 08 Sep 09 Sep 10 Mar 11 Retail Commercial $	Sep 07 Sep 08 Sep 09 Sep 10 Mar 11 Retail Commercial $	Sep 07 Sep 08 Sep 09 Sep 10 Mar 11 Retail Commercial $
			Retail		Commercial

Group net loans and advances (including acceptances)

Growth Rates	Growth Rates	Growth Rates	Growth Rates	Growth Rates
FY07 13%	FY08 15%	FY09 (1%)	FY10 4%	1H11 2%

Sep 07 Sep 08 Sep 09 Sep 10 Mar 11 Institutional

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Customer deposits by geography

Australia (AUDb) Growth Rates FY08 FY09 FY10 1H11 10% 16% 7% 2%	New Zealand (NZDb) Growth Rates	APEA (USDb) Growth Rates
	FY08 FY09 FY10 1H11 5% 1% 0% 5%	FY08 FY09 FY10 1H11 49% 49% 72% 22%



Sep 07 Sep 08 Sep 09 Sep 10 Mar 11	Sep 07 Sep 08 Sep 09 Sep 10 Mar 11	Sep 07 Sep 08 Sep 09 Sep 10 Mar 11
Retail Commercial Institutional 1

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Includes Wealth

Customer deposit composition by segment

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Group deposits by segment Deposits composition
(AUDb) March 2011
269
259
7
238 7
7 Group 37% 19% 42% 2%
118
113
105
Australia 29% 22% 48% 1%
40 44
40
APEA 77% 23%
99 100
86
New Zealand 19% 29% 44% 8%
Mar 10 Sep 10 Mar 11
Wealth Retail Commercial 1 Institutional
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Includes Group Centre

Net loans and advances by geography

Australia (AUDb)	Australia (AUDb)	New Zealand (NZDb) Growth Rates	New Zealand (NZDb) Growth Rates	APEA (USDb) Growth Rates
Growth Rates
FY07 FY08 FY09 FY10 1H11 14% 0% 6% 3%		FY07 FY08 FY09 FY10 1H11 11% (1%) (1%) (1%)		FY07 FY08 FY09 FY10 1H11 large (2%) 45% 19%



Sep 07 Sep 08 Sep 09 Sep 10 Mar 11		Sep 07 Sep 08 Sep 09 Sep 10 Mar 11		Sep 07 Sep 08 Sep 09 Sep 10 Mar 11
Retail Commercial 1				Institutional
	Retail		Commercial

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Includes Wealth

Lending composition by segment

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Group lending composition Lending composition
by segment (AUDb) March 2011
376
367
353 20
20
18 Group 21% 22% 51% 5%
191
177 186 Australia 19% 17% 59% 5%
APEA 80% 20%
84 85 84
New Zealand 7% 54% 37% 2%
73 76 80
Mar 10 Sep 10 Mar 11
Institutional Commercial Retail Mortgages Other Retail & Wealth
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Australia Region - Deposits

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Growth Rates
Deposit movement – 1H11 v 2H10
Retail
$b
1.2
14% 1.4
1.1
5.1 0.0
7% 168.1
0.2
5.3 0.1
164.8
HOH PCP
Commercial Sep-10 Retail Wealth Esanda Regional Business SBB Inst. Other Mar-11
Banking
Commercial
12%
10%
Household deposit growth
(Multiple of system) [1]
1.75
Growth of 1.6x system 1H11
HOH PCP
1.50
Institutional
7% 1.25
1.00
0.75
-10% Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Mar-11
System ANZ Deposits
HOH PCP
1. APRA Statistics 36
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Australia Region - Lending

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Growth Rates
Lending movement – 1H11 v 2H10
Retail
$b
1.9 277.8
10% 6.2 0.4 0.0 0.9 0.1 0.0
0.1 0.4
4%
268.8
HOH PCP
Commercial Sep-10 Mortgages Cards & Wealth Esanda Regional Business SBB Inst. Other Mar-11
Unsec. Banking
Retail Commercial
4%
1%
Mortgage lending growth [1]
(Multiple of system)
2.0
HOH PCP
Growth of 1.2x system 1H11
1.5
Institutional
1.0
4%
1% 0.5
Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Mar-11
System ANZ Lending
HOH PCP
1.Source: APRA Statistics 37
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- APEA Region Deposits

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Growth Rates APEA deposits 1H11 deposit growth by
Retail
53% RBS [1] Impact segment (HOH)
1H10 2H10
5% (USD b) 1.5 5.0 (%)
60 56.2 30% 28%
HOH PCP 50 46.1 25%
37.4
Institutional 40 20%
50%
26.8
30 15%
28%
20 10%
6%
4%
10 5%
HOH PCP - 0%
2H09 1H10 2H10 1H11 Retail Retail Institutional
Asia Pacific
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1H11 deposit growth by segment (HOH)

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1H11 Deposits by
region (USD m)
6%
27%
67%
Asia Pacific Europe & America
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Deposit growth has been primarily driven by Institutional
Growth has been particularly evident in
Japan, Taiwan, Singapore and Hong Kong, and across priority customer segments (including the Financial Institutions & Public Sector)
Retail deposit growth reflects strategy to re-focus on core affluent and emerging affluent customers.
Deposits (in USDb) for the RBS acquisition, includes Vietnam, Philippines & Hong Kong in 1H10; Taiwan, Singapore and Indonesia in 2H10

APEA Region - Lending

Growth Rates

1H11 loan growth by segment (HOH)

APEA loans

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APEA Region RBS [1] Impact segment (HOH)
1H10 2H10
62% (USD b) (%)
0.4 2.8
35 35%
31%
19% 28.8
30 30%
24.1
25 25%
19%
HOH PCP 20 16.7 17.7 20%
15 15% 12%
Retail 10 10%
55% 5 5% 2%
- 0%
2H09 1H10 2H10 1H11 Retail Retail Inst. Inst.
8% Asia Pacific Trans. Global
Banking Loans
HOH PCP • A continued focus on customer acquisition, particularly in
Corporate & Institutional, has driven significant lending
Institutional growth, particularly in Singapore and Hong Kong.
64%
23%
1. Loans (in USDb) for the RBS acquisition, includes Vietnam, Philippines & Hong Kong in 1H10; Taiwan,
HOH PCP
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Loans (in USDb) for the RBS acquisition, includes Vietnam, Philippines & Hong Kong in 1H10; Taiwan, Singapore and Indonesia in 2H10

New Zealand Region Lending

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Growth Rates (NZD)
Lending Movement – 1H11 v 2H10
Retail
NZDb
96.0 0.0 0.1 95.4
0.3
0.4
-1% -1%
Down 1%
HOH PCP
Commercial
Sep Retail Commercial Institutional Wealth Mar
2010 2011
0%
Lending Composition by Business
95.7 96.0 95.4
-1%
HOH PCP
38%
Institutional 54%
0% 0%
1%
7%
HOH PCP
Mar 10 Sep 10 Mar 11
Retail Commercial Institutional Wealth
40
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New Zealand Region Deposits

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Growth Rates (NZD)
Deposit Movement – 1H11 v 2H10
Retail
NZDb
0.5 0.3 62.8
4% 1.5
3% 0.8
59.7
HOH PCP Up 5%
Commercial
9% Sep Retail Commercial Institutional Wealth Mar
2010 2011
5% Deposit Composition by Business
62.8
59.7
59.3
HOH PCP
44% 29%
Institutional
10% 8% 19%
4%
Mar 10 Sep 10 Mar 11
HOH PCP
Retail Commercial Institutional Wealth
41
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Global Institutional Deposits

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Growth Rates (AUD) Deposit movement 1H11 v 2H10
Australia
7% $b 98.7 6.8 0.0 100.3
5.2
-10%
Majority of reduction in wholesale
investor, less sticky deposits
HOH PCP
APEA
Sep Australia APEA New Zealand Mar
2010 2011
33%
20% Deposit Composition by Geography
98.7 100.3
86.4
HOH PCP 76.9 79.8
41%
New Zealand 50%
4%
9%
Mar 09 Sep 09 Mar 10 Sep 10 Mar 11
1%
Australia APEA New Zealand
HOH PCP
42
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Global Institutional Lending

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Growth Rates (AUD)
Lending movement – 1H11 v 2H10
Australia
$b 2.9 80.2
4%
0.2
1.9
1%
75.6
Up 6%
HOH PCP
APEA Sep Australia APEA New Zealand Mar
2010 2011
46% Lending Composition by Geography
15%
85.4
80.2
73.1 75.6
70.6
HOH PCP
28%
New Zealand 66%
6%
Mar 09 Sep 09 Mar 10 Sep 10 Mar 11
-4%
Australia APEA New Zealand
-5%
HOH PCP
43
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack Regional Performance (Geographies & Divisions)

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Australia region

Pro Forma Net Profit After Tax

1H11 revenue by business[1]

$m

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10%
2,150
Retail
29%
1,950
Commercial
22%
1,750 Wealth
671 Institutional
1,550 Institutional
38%
1,350
1,150
434 Commercial 1H11 NPAT by business [1]
950 1,927 1,962
1,733
186 Wealth
750
9%
34% Retail
550
Commercial
350 709 Retail
22%
Wealth
150 Aus. Division
Institutional
$1,329m
-50 Group Centre 35%
1H10 2H10 1H11 1H11 by
segment
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Excludes Group Centre and Other

Australia region

Pro forma Growth Rates

Pro forma NPAT movement – 1H11 v 2H10

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Revenue
Revenue growth: $m 48
Australia Div = 4%;
Institutional = -4%
57
5%
2% 16 1,962
13
HOH PCP 1,927
99
Expenses
4% 8% 2H10 Net Other Exp. Prov. Tax and 1H11
Interest Income OEI
HOH PCP
Pro forma NPAT movement – 1H11 v 1H10
Provisions $m
94 198
-2% 197 1,962
82
-26%
178
1,733
HOH PCP
Net Profit after Tax
13% 1H10 Net Other Exp. Prov. Tax and 1H11
Interest Income OEI
2%
HOH PCP
46
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Australia Division – Business update & strategy

ANZ Australia delivered a solid outcome

Mortgages growth 1.2x system and customer deposit growth 1.6x system for the half
Increased commercial customers - ANZ Commercial Banking customers[2] rose by 6.4% or 25.1k customers for the half
Well advanced in Wealth business integration, launch of OnePath brand, increased management bench strength
Targeting Asian migrant and student flows with pan-regional migrants making up ~20% of all new-to-market customers
Leveraging links to Asia Pacific region with 169 referrals received from Asia Pacific Commercial customers in 1Q11
Investing in customer facing technologies (e.g. internet & mobile platforms and multilingual ATMs) and group wide systems to deliver the business agenda.

Multiple of system (1H11)[1]

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Household
1.2x
lending
System
Household
customer 1.6x
deposits
- 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6
Commercial deposits growth
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15%
12% 12%
10% 10%
10%
5%
-
Total Regional Business Small
Commercial Commercial Banking Business
Banking Banking
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Source: APRA Statistics; 2. Excluding Esanda

Australia Division

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Pro forma
Growth Rates Pro forma NPAT movement – 1H11 v 2H10
Revenue
$m
149
8
5%
4%
57
1,411
HOH PCP 3 1,329
169
Expenses
3% 4% 2H10 Net Other Exp. Prov. Tax and 1H11
Interest Income OEI
HOH PCP
Pro forma NPAT movement – 1H11 v 1H10
Provisions $m
69%
17% 175 10
72
1,329
HOH PCP 1,303 61
26
Net Profit after Tax
2% 1H10 Net Other Exp. Prov. Tax and 1H11
Interest Income OEI
-6%
HOH PCP
48
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Australia Division – Retail

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Pro forma
Trial intention … leading to customer gains
Growth Rates
(%) transactional account trial intention [1] („000s; MFI Relationship) [2]
Revenue
30 180
150
6% 3%
116
20 120
HOH PCP 90 7772
61
10 60
Expenses 30
0 0
4% Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11
2%
Peer 1 Peer 2 Peer 3 ANZ Peer 1 Peer 2 Peer 3 ANZ
HOH PCP
• PBP up 7%
Provisions
•
Strong trial intention and customer acquisition
37%
13% •
Retail deposit FUM increased 7% HOH, particularly in term deposits
and savings products such as Progress Saver
•
Retail deposits market share increased to 12.5% over the five months
HOH PCP
to February
Net Profit after Tax • Mortgages FUM up 4% HOH while NIM increased 4 bps
•
NPAT growth was adversely impacted by flood provisions over the half
2% 3%
1.Source: Australian Retail Brand Monitor; 2. Source: Roy Morgan 12 month moving average
HOH PCP
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… leading to customer gains

Australia Division – Commercial

Pro forma Growth Rates

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Revenue
7%
1%
HOH PCP
Expenses
6% 8%
HOH PCP
Provisions
67%
22%
HOH PCP
Net Profit after Tax
2%
-12%
HOH PCP
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Commercial underlying performance uneven - Business and Small Business performance was solid offset by difficult conditions for Regional Commercial

Net interest income SBB & BB

Net loans and advances incl. acceptances & deposits

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$m
800
580
600 550
524
400
200
-
1H10 2H10 1H11
SBB Business Banking
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$b
50.0 44.5 45.7 46.2
37.2
40.0 33.2 33.7
30.0
20.0
10.0
-
1H10 2H10 1H11
NLA Deposit
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Customer growth

Investment in frontline FTE staff in 2H10

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staff in 2H10 („000s; Main Bank Relationship) [2,3,4]
20
Peer 1 Peer 2
2,836 2,806 15 Peer 3 ANZ
10
2,581 8
5 6
4
- 2
1H10 2H10 1H11 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11
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Small Business Banking (SBB), Business Banking (BB), Regional Commercial Banking (RCB); 2. Source: DBM Business Financial Services Monitor; 3. Based on rolling 12 months average and includes businesses that have changed MFI during the last 12 months; 4. Includes customers who did not have a MFI 12 months ago (start up businesses)

Australia Division – Regional Commercial Banking

Credit Quality

Higher provisions partly due to long-term stress in the sector and also specifically for extreme weather events such as the Queensland floods. Delinquency trends higher in Western Australia (prolonged drought) while full effect of Queensland (Cyclone Yasi and flooding) is yet to emerge
Majority of collective provision overlay for Commercial is related to RCB

Business Performance

Significant increase in deposits (up 12% HOH, 20% PCP)
Lending down 3% HOH, flat PCP
Revenue down 1% HOH following reduced loan growth while expenses for the half were flat.

Significant pay down of debt occurring after high agri cash inflows

Productive Loans v. Deposit FUM

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Productive Loans Deposit FUM
($b) ($b)
14.0 Pay down of 14.0
debt
13.0
12.0
$0.6b
13.0
11.0
10.0
9.0
12.0
8.0
7.0
11.0 6.0
Oct-08 Jul-09 Apr-10 Jan-11
Productive Loans Deposit FUM
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Australia Division – Wealth

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Pro forma
Insurance
Growth Rates Funds Under Management
in-force premiums
$m Up 12 % $m Up 2 %
Operating Income
1,320 1,381 44,608 44,493 45,456
1,230
5%
1%
HOH PCP
1H10 2H10 1H11 1H10 2H10 1H11
Operating Expenses General Insurance Individual Group ANZ Trustees Ppty & Infra'ure.
Cash and FI Global Equities
Aus. Equities
4%
0% • Integration of former INGA business on track including OnePath new brand launch
• New ANZ Wealth business created (including OnePath, Private Bank and Investment
HOH PCP
and Insurance) and management bench-strength improved
• Wealth NPAT down $41m primarily due to reduced net interest income (repayment
of loans)
• Other operating income higher due to insurance book growth and favourable claims
Net Profit after Tax experience offsetting higher funding costs and brokerage margin tightening
• Operating expenses flat HOH
1% • Strong growth across the insurance segments particularly in individual life
• Funds management growth subdued in difficult market conditions coupled with
business transformation
-18%
• $11m gross impact in General Insurance due to natural disasters (includes ex-gratia
HOH PCP payments to policy holders).
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Integration of former INGA business on track including OnePath new brand launch
New ANZ Wealth business created (including OnePath, Private Bank and Investment and Insurance) and management bench-strength improved
Wealth NPAT down $41m primarily due to reduced net interest income (repayment of loans)
Other operating income higher due to insurance book growth and favourable claims experience offsetting higher funding costs and brokerage margin tightening
$11m gross impact in General Insurance due to natural disasters (includes ex-gratia payments to policy holders).

APEA - Business update and strategy

The APEA business continues to grow via organic build of customer relationships and core capabilities, and inter-connectivity across the network, together with Partnerships

Focused investment and increased cost efficiency drives continued revenue and profit growth

Positive jaws despite high revenue growth and continued investment, including local incorporation in China, India branch build, further investment in Partnerships, and rollout of platforms such as Transactive Asia

Institutional business continuing to grow…

Continuing to grow customer base and client penetration through increasing industry focus, build out of regional product suite and improved of relationship management
Accelerating „catch' and „throw' model to capitalise on multinational companies increasing business to/from Asia

…while Retail & Wealth, Private Bank and Commercial businesses growing in target segments

RBS integration nearing completion - over 2.4m customers in Asia
Launched Signature Priority Banking proposition in 8 countries
Commercial build out focusing on customer acquisition and increasing management bench strength
Growth in deposits a priority

Source: Bloomberg, Employer Branding Institute, internal financials Notes: 1. 1H FY 2011 annualised, FY 2010 is FX adjusted

Performance Highlights

APEA derived revenue delivers an additional 3% of Group revenues over revenues earned in the APEA geography
6[th] in Asia-Pacific ex-Japan DCM market
Five-fold increase in Wealth AUM PCP
Asia‟s Best Employer Brand Award, 2011

Asia Pacific Footprint

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Asia- Asia-US
Europe
Intra- Greater China
Asia (27)
Pacific-
Asia
Greater
India (1)
Mekong (31)
Malaysia
Pacific (60)
Singapore (6)
Indonesia (28)
Pacific-
Asia-
Aus/NZ
Aus/NZ
Franchise () ANZ number of Demonstrating
Network branches and interconnectivity
Hubs representative across the ANZ
offices network
Partnerships
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APEA Division overview

Pro forma revenue & expenses

1H11 revenue by geography

(USD m)

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----- Start of picture text -----

2,500
2,094
2,000
1,500 1,268
1,214
1,023 1,071
1,000 730
641
573
500
0
FY10 1H10 2H10 1H11
Revenue Expenses
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Pro forma NPAT

(USD m)

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----- Start of picture text -----

700
615
600
500
385
400 335
280
300
200
100
0
FY10 1H10 2H10 1H11
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14% South East Asia
36% North East Asia
12%
Pacific
38% Europe & America
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1H11 revenue by business

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----- Start of picture text -----

36%
Institutional
12%
Retail
Asia Partnerships
52%
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APEA Division financial performance

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----- Start of picture text -----

Pro forma
Growth Rates Pro forma NPAT movement – 1H11 v 2H10
Revenue
USD m
24% 167
18%
18
30 385
335 89
76
HOH PCP
Expenses
27%
14%
2H10 Net Other Exp. Prov. Tax and 1H11
Interest Income OEI
HOH PCP
Pro forma NPAT movement – 1H11 v 1H10
Provisions
USD m
173
71
385
72
-30%
-62% 280 157 54
HOH PCP
Net Profit after Tax
38%
15% 1H10 Net Other Exp. Prov. Tax and 1H11
Interest Income OEI
HOH PCP
55
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APEA Institutional

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----- Start of picture text -----

Pro forma
Growth Rates
Revenue
30% 29%
HOH PCP
Expenses
37%
15%
HOH PCP
Provisions
69%
-56%
HOH PCP
Net Profit after Tax
41%
28%
HOH PCP
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----- Start of picture text -----

APEA Institutional revenue
driven by Asia
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Strong contribution by Global Markets

Underlying revenue (USD ‘000)

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----- Start of picture text -----

9% 800 FY09 benefited
Asia from increased
13% market
600
volatility
9% Europe
400
America 200
68%
0
Pacific
FY08 FY09 FY10 1H102 2H10 1H11
Trading Sales
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Continue momentum across the region

~600 new clients over last 12 months[1]
23% lending growth and 28% deposit growth in 1H11
Revenue contribution to Global Institutional increased to 26%

Ongoing investment in capability

Global Markets platform and footprint
ANZ Transactive cash management platform launched, with Singapore and Hong Kong on-line later this year
Core banking platform development
~50 new products deployed into region

Increasing footprint, building connectivity

Continue to invest in front line staff
Expanding footprint in China, India, London and New York
Continue to develop key markets of Indonesia, Singapore, Hong Kong and Japan

Ongoing sales momentum

Industry specialisation

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Focus on product cross-sell and capturing intra Asia flows
Diversifying business mix

APEA includes Commercial Bank

APEA Retail & Wealth

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Pro forma
Growth Rates
Revenue
18%
14%
HOH PCP
Expenses
17%
7%
HOH PCP
Provisions
-64%
-66%
HOH PCP
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----- Start of picture text -----

Net Profit after Tax
large
large
HOH PCP
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Growth momentum in Asian Significant customer Wealth AUM[1] build-out

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USD m Customer Numbers (‘000)
Includes 5,248 5,838 accounts from Includes 4316 4206
accounts from
RBS acquisition
RBS acquisition
5
433 2,037 2,058
1,439
715
1H10 2H10 1H11 1H10 2H10 1H11
R&W Asia2 R&W Pacific2 Private Bank
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Strong revenue growth in chosen customer segments

14% revenue increase HOH; positive JAWS
Wealth AUM increased 11% HOH
Focused acquisition on target segments; closed 82,500 accounts HOH

Customer Centricity

Launched SPB[3] in 6 Asian and 2 Pacific Countries
Revamped sales incentive scheme - focus on customer satisfaction
Expanded wealth management products (added 700+ products HOH)
Launched mortgages in Singapore, Taiwan & Indonesia

Connectivity

Focus on deposits / cross-sell of wealth management products
Leveraging of strategic partnerships, e.g. Singapore Airlines

Channels

Updated website look-and-feel
Established standardised service levels for call centres

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Launched mobile banking application on iPhone in Taiwan

Assets Under Management (AUM); 2. Retail & Wealth (R&W); 3. Signature Priority Banking

Asia Partnerships' contribution continues to be significant

Partnership contribution to APEA NPAT

Growth in value in Partnerships ANZ share as at (31 March 2011)

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----- Start of picture text -----

USD m USD b
200 5
Listed investment Unlisted investment
Others
4
150
BoT
Panin 3
100
AMMB
2
SRCB
50
1
Sacombank
- Impacted by write-down of 0
investment in Sacombank Net cash Current book Current book +
principally due to a decline investment value additional market
in the Vietnamese currency
value of listed
-50 1H11
partners
----- End of picture text -----

Profit contribution remained significant

Sacombank impairment charge taken in 1H11 with weak Vietnamese Dong and share price

Driving outperformance

Continue to add value to Partnerships through infusion of ANZ talent and skills to “outperform”
Key Partnerships delivering majority of profit
Invest in expansion opportunities at appropriate times and as price, policy and regulations allow
Note: AMMB Holdings Berhad (AMMB), Shanghai Rural Commercial Bank (SRCB), P.T. Bank Pan Indonesia (Panin), Bank of Tianjin (BoT) and Saigon Thung Tin Commercial Joint-Stock Bank (Sacombank)

New Zealand – simplifying structure, systems and processes

Simplifying our structure to be more customer focused

Management structure change will deliver greater external focus and faster decision making while reducing costs
Moved from six national management structures to three across Retail, Business Banking and Commercial & Agri

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Business Banking now a standalone specialist business
Commercial and Rural Businesses merged to form Commercial & Agri, broadens service provided to agricultural sector
Four distinct regions created & aligned across segments to bring decision making closer to customer

Simplifying systems, products and processes

Moving to a single technology platform will drive efficiencies and improve customer experience
A NZD98 million post tax significant item charge related to this project is reflected in the half year accounts
Single refreshed core banking platform & single set of channel platforms
Removing product duplication to provide a simplified, market competitive product suite

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New Zealand economic update

The Canterbury earthquake delayed the upswing

• Emerging economic recovery impacted by the Christchurch earthquake in February:

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Forecast
6%
4%
2%
0%
-2%
-4%
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
GDP Annual % change
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Reconstruction work of $15-20bn is equivalent to up to 10% of annual GDP
Immediate fall in confidence but subsequent recovery in business confidence is encouraging
Likely economic recovery from second half 2011, supported by:
Record commodity prices
Rugby World Cup
Christchurch earthquake rebuilding
NZ’s economic framework is serving the economy well:
RBNZ cut OCR by 50 bps in March
Strong NZD/USD but weak NZD/AUD

System Forecasts (Registered Banks)

Low levels of government debt and scope to lean on the balance sheet to support the economy near term

Lending Growth	FY10	FY11	FY12	FY13	FY14
Housing	3.0	1.7	4.8	4.3	4.3
Consumer Finance	2.2	4.2	4.0	4.3	4.9
Business1	-2.7	0.2	2.0	5.5	6.1
Lending Growth	0.6	1.1	3.7	4.8	5.0
Deposit Growth
Households	2.9	8.0	5.6	5.1	5.5

Challenge is to unlock natural resource endowment including water and strengthen trade linkages to Asia

• The medium-term outlook is more modest

Extended period of deleveraging as the economy rebalances
A lower trend growth rate in medium-term but stronger 5- 10 years out as areas of comparative advantage (e.g. primary production, tourism, water) are unlocked
Household credit growth is expected to recover, but will remain more closely tied to income growth of c.5% p.a.

Note 1 . Includes Rural

Demand for business finance is expected to increase as the recovery progresses

Sources: RBNZ (2010 actual); ANZ forecasts (2011-14), finalised February 2011

New Zealand Region

Net Profit After Tax

(Pro forma)

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----- Start of picture text -----

(NZD m)
1,000
884
900
800
700 643
605
600
510
500
374
400
300
200
100
0
FY09 FY10 1H10 2H10 1H11
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1H11 Profit Before Provisions

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----- Start of picture text -----

Contribution by Business [1]
3%
Retail
23%
Commercial
50%
Wealth
24%
Institutional
1H11 NPAT
Contribution by Business [1]
4%
Retail
27%
Commercial
47%
Wealth
22% Institutional
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Excludes contribution from Shareholder‟s Functions, Operations and Support

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New Zealand Region

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----- Start of picture text -----

Pro forma
Growth Rates Pro forma NPAT movement – 1H11 v 2H10
Revenue
NZDm 46
6% 59 605
4% 510 7 55
38
HOH PCP
Expenses
2%
2H10 Net Other Exp. Prov. Tax and 1H11
Interest Income OEI
-5%
HOH PCP Financial performance has continued to improve with
Provisions recovery in the New Zealand economy
•
Momentum moderated by de-leveraging across the market
-35% • Demand for credit subdued with revenue growth assisted by
-74% continued switching of fixed rate to variable rate lending – fixed rate
HOH PCP now 46% of mortgage book versus 68% same time last year
•
Expenses well managed with cost to income ratio reduced to
Net Profit after Tax 44.8%, down from 49.0% at 2H10
62% • Operational efficiencies, improved service levels and business
outcomes are expected from the move to a single banking technology
19%
platform and simplified regional management structure
HOH PCP
62
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New Zealand Region – Key drivers of performance

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----- Start of picture text -----

Revenue & expense growth
7%
6%
4%
2% 2%
1%
-5% -5%
1H10 2H10 1H11 (HoH) 1H11 (PCP)
Revenue Expenses
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Pro forma NPAT Contribution NZDm

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----- Start of picture text -----

605
496 510
374
147
1H09 2H09 1H10 2H10 1H11
Retail & Wealth Commercial
Institutional Other
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Provision charges

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----- Start of picture text -----

NZDm
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----- Start of picture text -----

599
330
291 131
85
1H09 2H09 1H10 2H10 1H11
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Retail & Wealth Commercial Institutional Other

New Zealand Businesses

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----- Start of picture text -----

Pro forma
Growth Rates Pro forma NPAT movement – 1H11 v 2H10
Revenue
NZDm
7%
67 453
30
376 22
1% - 7 35
HOH PCP
Expenses
Flat
2H10 Net Other Exp. Prov. Tax and 1H11
Interest Income OEI
-4%
HOH PCP
Pro forma NPAT movement – 1H11 v 1H10
Provisions
NZDm
253
453
-41% 110
102
-72% 218
8
HOH PCP - 2
Net Profit after Tax
Large
1H10 Net Other Exp. Prov. Tax and 1H11
20% Interest Income OEI
HOH PCP
64
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New Zealand Businesses – Revenue composition

NZ Businesses Pro forma Revenue Composition (NZDm)

Mortgage portfolio composition

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NZDm
1,600 2.50%
2.45%
1,400
2.40%
1,200
2.35%
1,000 2.30%
2.25%
800
2.20%
600 2.15%
2.10%
400
2.05%
200
2.00%
0 1.95%
1H09 2H09 1H10 2H10 1H11
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NII (LHS) Other operating income (LHS) NZ Bus NIM (RHS)

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----- Start of picture text -----

100%
23% 23%
32%
80% 42%
54%
60%
40% 77% 77%
68%
58%
20% 46%
0%
1H09 2H09 1H10 2H10 1H11
% Fixed % Variable
Mortgage portfolio repricing profile
% of portfolio repriced
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----- Start of picture text -----

100%
100% 97%
88%
80% 73%
60%
40%
40%
20%
0%
FY09 FY10 FY11 FY12 FY13
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New Zealand – Retail & Wealth

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----- Start of picture text -----

Pro forma
Growth Rates
Revenue
4%
1%
HOH PCP
Expenses
4%
-4%
HOH PCP
Provisions
-46%
-63%
HOH PCP
Net Profit after Tax
38%
31%
HOH PCP
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Well managed business in a subdued economy

Strong NPAT growth driven by significant decline in provisions both HoH and PCP
Revenue has absorbed ~1% PCP impact of exception fee reductions effective 1st December 2009
Expenses well managed down 4% HoH
Share of new mortgage business increasing in <80% LVR market
The ongoing repricing of the Fixed Mortgage book estimated 73% complete at FY10 with a further 15% to reprice during FY11
Integration of OnePath into Wealth business progressing well - 20% share of new life risk business for the March quarter, market-leading KiwiSaver provided with $1.95b FUM and 24% market share

ANZ brand customer satisfaction at historic highs[1]

Changes to fees and launching market leading products has restored customer growth

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----- Start of picture text -----

100%
89%
85% 85%
80%
60%
40%
20%
0%
1Q09 1Q10 1Q11
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----- Start of picture text -----

Main Bank Customers
Thousands
(Seasonally Adjusted)
1,210
1,205
1,200
1,195
1,190
1,185
1,180
1,175
1,170
Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec
08 08 08 09 09 09 09 10 10 10 10
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Nielsen CFM survey

New Zealand – Commercial & Agri

Pro forma Growth Rates[1]

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----- Start of picture text -----

Revenue
9%
1%
HOH PCP
Expenses
Flat
-4%
HOH PCP
Provisions
-38%
-75%
HOH PCP
Net Profit after Tax
Large
12%
HOH PCP
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Successful consolidation of the Agri division into Commercial division now better placed to support customers growth

New Zealand Commercial business now comprises of Commercial division, Agri division and Business Banking
Guiding customers through the current challenging economic cycle via customer learning forums
Super Regional strategy continues to support New Zealand business‟ regional growth aspirations, e.g. Transactive platform enables seamless Trans-Tasman banking; first Australasian bank to complete Chinese RMB deal
Reduction in lending due to increased Fonterra payouts, and continued debt reduction in market
Maintaining good cost management disciplines

Activity Outlook Index[2] Dairy Milk Payout/Price[3]

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----- Start of picture text -----

60 $ per kg MS.
50 8.0
40
30 6.0
20
10
4.0
0
-10
-20 2.0
-30
-40 0.0
Oct Oct Oct Oct Oct Oct Oct Oct Oct
02 03 04 05 06 07 08 09 10
Total Agriculture Manufacturing
Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11
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1 Growth rates reflect total Commercial i.e. includes the combination Commercial and Agri and Business Banking divisions 2 National Bank Business Outlook March 2011
ANZ National Bank

New Zealand – Business Banking

Establishment of a standalone specialist business bringing a new level of focus to managing small business customers

FUM and revenue growth solid in a subdued market
Strong NPAT growth and a significant decline in provisions evident in the HoH and PCP outcomes
Investment in frontline roles to grow the business has been managed through other cost savings, leaving expenses largely flat
Customer Satisfaction has improved across both Brands in the last 6 months[1]

One third of the SME market in NZ has a banking relationship with ANZ[1]

Business Banking has seen steady growth in customer numbers over the half year

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32%
21% 20%
15%
ANZ/NBNZ Peer 1 Peer 2 Peer 3
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----- Start of picture text -----

101,600
101,400
101,200
101,000
100,800
100,600
100,400
100,200
Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11
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Source: TNS Conversa

New Zealand – Institutional

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----- Start of picture text -----

Pro forma
Growth Rates
Revenue
13%
-7%
HOH PCP
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ANZ continues to dominate the NZ institutional segment

Extended position as clear market leader, outstanding results across 5 Peter Lee Associate surveys
First half revenue growth reflects strong Markets result. Growth against 1H10 impacted by lower contribution from the management of interest rate risks in the Bank‟s balance sheet
Expenses flat HoH. Cost growth of 16% PCP driven by investment in systems supporting the Super Regional strategy
Connecting customers to Asia and demonstrating ANZ regional capability, e.g. first Australasian bank to complete a Chinese RMB denominated trade settlement deal; implemented full local payments and cash management for NZ customer's China operations

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Expenses
implemented full local payments and cash management for NZ customer's China
16% operations
• Market leading innovative client solutions, e.g. only domestic bank to structure Export
Credit Agency Funding; extended commodities capability; launched Transactive, the
-1% only full capability web based Tran-Tasman cash management and payment system to
be offered by an Australasian bank
HOH PCP
Most Trusted Adviser [1]
Relationship Strength [1]
Provisions (% Total Customers)
(Relationship Strength Index 2010)
54%
598
42%
-38%
-62% 531
517 29%
HOH PCP
16%
449 12%
8%
Net Profit after Tax 426
5%
ANZ Peer 1 Peer 2 Peer 3 Peer 4 ANZ Peer 1 Peer 2 Peer 3 Peer 4 Peer 5
Sources: 1: Peter Lee Associates Large Corporate and Institutional Relationship Banking New Zealand Survey 2010
-17%
HOH PCP
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Market leading innovative client solutions, e.g. only domestic bank to structure Export Credit Agency Funding; extended commodities capability; launched Transactive, the only full capability web based Tran-Tasman cash management and payment system to be offered by an Australasian bank

Global Institutional

Making Clear Progress on our Strategy

Growing connectivity driven revenue

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----- Start of picture text -----

Domestic
Booked Cross
Border
78% Cross border
22%
revenues
up 10% PCP
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• Growing our client base and diversifying our geographic mix:

Brought on 676 new Institutional, Corporate and Financial Institutions clients in the past half, a 10% increase HOH
ANZ recognised as “One of the Fastest-growing corporate banks in Asia” in the Greenwich Associates‟ 2011 Large Corporate Banking Survey
28% of total lending now in APEA, up from 21% in 2009

• Investing in support infrastructure:

ANZ Transactive Trans-Tasman cash management platform launched, with Singapore and Hong Kong on-line later this year – 3,241 client sites activated for ANZ Transactive in Australia and New Zealand

Growing and diversifying regional client base

New capabilities have been introduced including new FX liquidity and rates platforms

Geographic Mix of new clients won past 12 months

Core Market Risk and Credit Risk capabilities are in the process of being enhanced

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----- Start of picture text -----

16% Australia
Asia
20%
New Zealand
60%
4%
Europe & America
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• Strengthening our relationships:

Further strengthened our position in Australia and New Zealand relationships as measured by Peter Lee Associates[1]
Making progress in our priority sectors of resources, agriculture and infrastructure:
Lead Arranger and book-runner for Woodside‟s $1bn Syndicated Term Loan Facility
Sole arranger of AUD475m Emerald grain repurchase syndication

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Based on ANZ‟s Relationship Strength Index scores in the Peter Lee Associates Large Corporate and Institutional Relationship Banking Survey – Australia and New Zealand 2009 and 2010.

Global Institutional – Financial Performance

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----- Start of picture text -----

Pro forma
Growth Rates Pro forma NPAT movement – 1H11 v 2H10
Revenue
7% $m 203 156 1,028
4% 914
72
71
102
HOH PCP
Expenses
20%
8% 2H10 Net Other Exp. Prov. Tax and 1H11
Interest Income OEI
HOH PCP
Pro forma NPAT movement – 1H11 v 1H10
Provisions $m 280
1,028
198
816 19
81
(50%)-50% -65% 166
(65%)
HOH PCP
Net Profit after Tax
26%
1H10 Net Other Exp. Prov. Tax and 1H11
12%
Interest Income OEI
HOH PCP
71
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Global Institutional – Performance by Geography

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----- Start of picture text -----

Pro forma
Growth Rates Pro forma PBP movement - 1H11 v 2H10
1H11 v 2H10
AUDm
Revenue 26 1,591
1,561 104 108
30%
13%
-4%
Australia APEA New
Zealand
2H10 Australia APEA New Zealand 1H11
PBP
48%
19%
Pro forma PBP movement - 1H11 v 1H10
AUDm
-9% 1,578 17 59 29 1,591
Australia APEA New
Zealand
NPAT
28%
10% 5%
1H10 Australia APEA New Zealand 1H11
Australia APEA New
Zealand
72
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Global Institutional – Performance by Business

Pro forma Growth Rates Pro forma PBP movement – 1H11 v 2H10 1H11 v 2H10

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----- Start of picture text -----

$m 24 67
Revenue 1,591
1,561
32
29
12%
Impacted by one-off interest
4%
0% write back 2H10
Global Transaction Global
Loans Banking Markets 2H10 Global Transaction Global Other 1H11
Loans Banking Markets
PBP 14%
Pro forma PBP movement – 1H11 v 1H10
3%
$m
69
50
1,591
-8% 1,578
Global Transaction Global
82
Loans Banking Markets 24
NPAT
36%
28%
1H10 Global Transaction Global Other 1H11
Loans Banking Markets
-16%
Global Transaction Global
Loans Banking Markets
73
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Global Markets – Performance by Product

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----- Start of picture text -----

Revenue Growth
Total Revenue
8%
-2%
HOH PCP
Fixed Income
12%
-18%
HOH PCP
FX & Commodities
23%
21%
HOH PCP
Capital Markets
6%
-10%
HOH PCP
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Revenue Contribution by Product

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----- Start of picture text -----

$m
1400
1200
1000
31%
800
600 12%
43%
400
14%
200
0
1H08 2H08 1H09 2H09 1H10 2H10 1H11
-200
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Other Capital Markets Foreign Exchange Fixed Income

Continued focus on growing global customer flows, risk management and diversifying product revenues across the regions
Investment in FX and Commodities businesses delivering real revenue momentum, further supported by upward trends in commodity prices
Capital Markets deal flow continues to strengthen across the entire Asia Pacific region
Fixed income captured increased share of key markets, including a record deal in Japan, the largest Corporate Sales deal for ANZ in Asia

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Global Markets – Performance by Geography

Revenue Growth

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----- Start of picture text -----

Australia
(4%)
(7%)
HOH PCP
APEA
30%
16%
HOH PCP
New Zealand
19%
(20%)(20%)
HOH PCP
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Revenue Contribution by Geography

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----- Start of picture text -----

$m
1,400
1,200
1,000
800
53% 35%
600
400
12%
200
1H08 2H08 1H09 2H09 1H10 2H10 1H11
Australia APEA New Zealand
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Results highlight continuing success of strategic initiatives aimed at diversifying revenue streams across geographies
Targeted investment in APEA has driven 1H11 growth of 30% with 42% growth in Asia

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Transaction Banking

Payments & Cash Management

Effective working capital and liquidity management is central to any client‟s core banking relationship
ANZ Transactive monthly transaction volumes up 27% HOH
Launched trans-tasman cash management functionality during half – the first integrated cash management platform across Australia and NZ
ANZ Transactive Asia also launched into eight Asian countries during the half, and currently has 2,599 registered clients

Trade & Supply Chain

Total Trade assets are up 30% in Asia compared to March 2010.
ANZ again awarded best trade bank in Australia by Global Finance, Insto and Global Trade Review magazines
Also recognised as one of the Top 5 trade banks in the Asia Pacific region
Structured Trade Finance team recently completed a AUD475M Syndicated Warehouse Finance Repurchase Facility - the first ever in the global market place

ANZ Transactive Monthly Transaction Volumes

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----- Start of picture text -----

2,500,000 8,000
7,000
2,000,000
6,000
5,000
1,500,000
4,000
1,000,000
3,000
2,000
500,000
1,000
0 0
Nov-09 May-10 Nov-10
Australia (LHS) Asia (RHS)
Total Trade Exposures
AUDb
Funded & Unfunded
35
30
25
20
15
10
5
0
1H10 2H10 1H11
Asia Australia NZ E&A
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack Treasury

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ANZ well capitalised and positioned to manage transition to Basel III

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----- Start of picture text -----

Basel II Basel III – Core Tier 1
~15.5%
~14.1%
13.0%
12.1%
11.9%
10.7%
10.5% ~9.5% ~9.5%
10.1%
Core
~8.3% ~8.5% Tier 1
~7.7% surplus
over
7.0%
~7.4%
~7.0%
Capital
Buffer ~11.8%
2.5%
Additional Basel 3 Full alignment to
8.5% 8.5%
8.0% requirements ~ -150bps Basel ~ +250bps
Minimum
Target
4.5%
Mar-10 Sep-10 Mar-11 Core Tier-1 Higher RWA 10%/15% Dividend DTA incl. in RWA: IRRBB Mar-11 FSA Mar-11
Deduction Charges threshold accrual,net EL v EP & Basel III Minimum
(Insur,banking (market & insur,assoc, capitalised deduction+ mortgage Core Tier-1
assoc,ELvEP) credit risk, DTA expenses+ LGDs Ratio Target:
securitisation) 4.5%
Core Tier 1 Tier-1 Total
excludes impact of BIII liquidity reforms in RWA
+includes increase in 10% threshold insurance & associates
78
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Solid organic capital generation underpins strong Core Tier-1 position

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----- Start of picture text -----

Capital Position (Core Tier-1 Ratio)
~11.8
~9.5
1.06 (0.37)
(0.09) (0.09) (0.07) 8.49
8.05
Portfolio Growth & mix: 15bp decrease
Risk Migration: 7bp increase
Non credit RWA: 1bp decrease
net organic up 51bp
up 44bp
Sep-10 NPAT(1) Dividend/ RWA Other(4) Investments Mar-11 Mar-11 Basel III Mar-11 FSA
DRP(2) movement(3)
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Underlying NPAT. 2. Includes prior period under-accrual of DRP . 3.Includes impact of movement in Expected Loss versus Eligible Provision excess. 4. Includes OnePath Insurance Business, Asian Banking Associates, Non-Core NPAT items, Capitalised Costs and Software, FX, Net Deferred Tax Assets, Pensions, MTM gains on own name included in profit

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Tier-1 position continues to strengthen with solid organic capital generation

Capital Position (Tier-1 Ratio)

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----- Start of picture text -----

~14.1
~11.3
1.06 (0.37)
(0.11) (0.10) (0.07) 10.51
10.10
Portfolio growth & mix: 18bp decrease
Risk Migration: 8bp increase
Non credit RWA: 1bp decrease
net organic up 48bp
up 41bp
Sep-10 NPAT(1) Dividend/ RWA Other(4) Investments Mar-11 Mar-11 Basel Mar-11 FSA
DRP(2) movement(3) III(5)
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Underlying NPAT. 2. Includes prior period under-accrual of DRP . 3.Includes impact of movement in Expected Loss versus Eligible Provision excess. 4. Includes OnePath Insurance Business, Asian Banking Associates, Non-Core NPAT items, Capitalised Costs and Software, FX, Net Deferred Tax Assets, Pensions, MTM gains on own name included in profit. 5. Includes 10% reduction in hybrid Tier-1 volumes.

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Reconciliation of ANZ’s capital position to FSA Basel 2 guidelines

APRA regulations are more conservative than current FSA regulations, in that APRA requires:

A 20% Loss Given Default floor for mortgages (FSA: 10% floor)
Interest Rate Risk in the Banking Book (IRRBB) included in Pillar I risks (FSA: Pillar II)
Capital deductions for investments in funds management subsidiaries (FSA: RWA assets)
Insurance subsidiaries to be a mixture of Tier 1 and Tier 2 deductions (FSA: transitional regulations permit Total Capital deductions under certain circumstances)
Expected dividend payments (net of dividend reinvestments) to be deducted from Tier-1 (FSA: no deduction)
Collective Provision to be net of tax when calculating EL v EP deduction (FSA: tax effect difference between EL and EP on gross basis)
Associates to be a mixture of Tier-1 and Tier-2 deductions (FSA: permits proportional consolidation under certain circumstances)

	Core Tier-1	Tier 1	Total Capital
Mar-11 under APRA standards	8.5%	10.5%	12.1%
RWA (Mortgages, IRRBB)	1.4%	1.6%	1.8%
OnePath Funds Management and Life Co. businesses	0.9%	0.9%	0.3%
Interim dividend accrued net of DRP & BOP	0.4%	0.4%	0.4%
Expected Losses v Eligible Provision	0.2%	0.2%	0.3%
Insurance subsidiaries (excluding OnePath businesses)	0.2%	0.2%	0.0%
Investment in associates	0.2%	0.2%	0.4%
Other1	0.0%	0.1%	0.2%
Total adjustments	3.3%	3.6%	3.4%
Mar-11 FSA equivalent ratio	11.8%	14.1%	15.5%

Other includes Net Deferred Tax Assets, Capitalised Expenses, Deferred Income and roundings.

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Stable term debt issuance, portfolio costs continue to increase

Stable term funding profile – FY11 issuance ahead of schedule (~70% complete)

Portfolio term funding costs continue to increase as pre 2008 debt reprices

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----- Start of picture text -----

Senior Debt Government Guarantee
1
Subordinated Debt Pre funded in FY10
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----- Start of picture text -----

30.0 Issuance Maturities
25.0
20.0
15.0
10.0
5.0
0.0
FY08 FY09 FY10 FY11 YTD FY 11 FY12 FY13 FY14 FY15+
----- End of picture text -----

1 Excludes perpetual debt

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----- Start of picture text -----

Bps
140.0
120.0
100.0
Future Repricing
80.0
60.0
40.0
20.0
0.0
Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep
05 06 07 08 09 10 11 12 13 14
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ANZ’s has a well diversified and improved funding profile

Strong Funding Composition

Short Term Wholesale Customer Funding Funding Shareholders equity & Term Debt < 1 year Hybrid debt Residual Maturity Term Debt > 1 year Residual Maturity

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----- Start of picture text -----

12% 11%
17%
22%
6% 6%
5%
7% 16% 15%
15%
14%
58% 60%
55%
50%
7% 8% 8% 8%
Sep 08 Sep 09 Sep 10 Mar 11
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Minimal offshore short-term wholesale funding; Offshore CP accounts for <2% (~$8.6b)

Gross Interbank, Other

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----- Start of picture text -----

2%
1% APEA CDs
2% Equity/
11% Hybrids Offshore CP
8%
6%
Domestic CDs
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Well diversified term wholesale funding portfolio

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----- Start of picture text -----

Offshore PPs (Multi ccy
4% incl. HKD,SGD,RMB)
2% Japan (¥)
4%
21% UK & Europe (€,£,CHF)
5%
North America
(USD, CAD)
6%
Domestic (AUD, NZD)
----- End of picture text -----

Offshore PPs (Multi ccy incl. HKD,SGD,RMB) Japan (¥)

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Solid Liquidity position however B3 liquidity requirements remain uncertain

Strong liquidity position ($b)

Recent Basel III Developments

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----- Start of picture text -----

7.8
28.2
3.2
7.7
66.7 67.0
60.2
34.7
31.1
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The implementation of the new B3 liquidity requirements remains subject to consultation and clarification
Key Definitions including Financial Institutions and Operational Deposits remain outstanding and are likely to be clarified by APRA later in 2011
Given the lack of eligible liquid assets in Australia, APRA will allow banks to meet their LCR requirements through a committed liquidity facility at the RBA backed by repo eligible stock
The banks will pay a fee for this facility in line with cost of holding B3 eligible liquid assets

Sep 08 Sep 09 Sep 10 Mar 11 Mar 11

Timing / Next steps

Prime Liquidity Portfolio

Other Eligible Securities

Class 1 – AAA & Cash Class 2 – AA or better

Class 3 – Internal RMBS

Extended transition period with implementation of the LCR expected in 2015
Final quantum of the LCR shortfall will depend on exact definitions adopted and product innovation and development during the transition period
Expected NSFR implementation in 2018

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Foreign Exchange impacts

Earnings Composition by Region & Average Translation Rates

% Group
Underlying
Profit
90% 100%							1.30 1.40
80%
							1.20
70%
60%							1.10
40% 50%							0.90 1.00
30%
20%							0.80
10%							0.70
0%							0.60
		2H09	1H10	2H10		1H11
APEA		(LHS)			New Zealand		(LHS)
Australia (LHS)					AVG AUD/USD (RHS)
AVG	AUD/NZD (RHS)

EPS Impact

Current Hedging Unhedged

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----- Start of picture text -----

~(3.1%)
~(1.5%)
FY11 PCP
@Current rates
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----- Start of picture text -----

(2.5%)
(1.9%)
1H11 HoH
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Hedge profits partially mitigated the impact of AUD strength on 1H11 earnings
For 2H11, hedges are in place to cover ~60% of NZD, USD and other significant currencies - each 5% appreciation of the AUD negatively impacts FY11 EPS by ~0.3%
FY12 FX headwind estimated to be ~1%, with ~60% of USD and other significant currency exposures hedged at an equivalent AUD/USD rate of 0.97, however only modest NZD hedges in place

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack Risk Management

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Provision Charge and Impaired Assets

Total Provision Charge (IP charge by Division, total CP charge)

New Impaired Assets by Division

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----- Start of picture text -----

$m
$m
1,800 4,000
1,621
3,600
1,435
1,600 3,500
3,126
3,035
1,400
3,000
1,200 1,098 2,437
2,500 2,319
1,000 Oswal
2,000
722
800
660
1,500
600
1,000
400
500
200
0 0
1H09 2H09 1H10 2H10 1H11
-200
1H09 2H09 1H10 2H10 1H11
Institutional Australia Division NZ Businesses APEA ex-Institutional CP charge
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Individual Provision Charge

Individual Provision Charge by Segment

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$m
2,000
1,800
1,531
1,600
1,400 1,283
1,200 1,062
1,000
762
800
594
600
400
200
0
1H09 2H09 1H10 2H10 1H11
Institutional Commercial Consumer
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Individual Provision Charge composition

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$m
2,000 1,531
1,283
1,062
1,500 762
594
1,000
500
0
-500
1H09 2H09 1H10 2H10 1H11
New Increased Writebacks & Recoveries
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Individual Provision Charge by Region

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----- Start of picture text -----

$m
2,000
1,531
1,283
1,500
1,062
1,000 762
594
500
0
1H09 2H09 1H10 2H10 1H11
Australia New Zealand APEA
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Collective Provision Charge

Collective Provision Charge by Source

Lending Growth	Economic Cycle &	Concentration	Concentration	Risk Profile	Risk Profile	Risk Profile
	2H10 1H11
		Total Group	Australia Division	New Zealand Businesses		Global Institutional	APEA (ex-Inst.)

		66	116		(46)	5	(9)
		60 56 -34 -16	16			29	12 -20 -1

			79		-1

			21		-19
						-9


1H09 2H09 1H10

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Credit Risk Weighted Assets

Total Credit Risk Weighted Assets

Credit RWA movement 1H11

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$b $b
257.8
4.6
233.5 233.2 233.5 0.1 233.2
229.8
3.7
220.4
1.1
Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 10 Growth Data FX Risk Mar 11
Review Impact
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Impaired Assets

Gross Impaired Assets by Size of Exposure

Gross Impaired Assets by Type

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$m
$m
8,000
Impaired Loans NPCCD Restructured 6,561 6,561
6,221
5,595
6,000
8,000 4,158
4,000
7,000 6,561
6,561 2,000
6,221
0
6,000 5,595 Oswal
Mar 09 Sep 09 Mar 10 Sep 10 Mar 11
> $100m $10-$99m < $10m
5,000
4,158
New Impaired Assets by Segment
4,000
$m
4,000 3,600
3,000 3,126
3,035
3,000
2,319 2,437
2,000
2,000
1,000 1,000
0
0
1H09 2H09 1H10 2H10 1H11
Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Institutional Commercial Retail
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4,000 3,600
3,126
3,035
3,000
2,319 2,437
2,000
1,000 Oswal
0
1H09 2H09 1H10 2H10 1H11
Institutional Commercial Retail
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Watch & Control Lists and Risk Grade Profiles

Watch & Control List

Index Watch List by Limits Mar 2009 Watch List by No. Groups = 100 Control List by Limits Control List by No. Groups 180 160 140 120 100 80 60 40 20 0 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11

Group Risk Grade profile by Exposure at Default

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6% 6% 6% 6%
9% 9% 9% 8%
13% 13% 13% 12%
13% 13% 14% 14%
59% 59% 58% 60%
Sep 09 Mar 10 Sep 10 Mar 11
AAA to BBB BBB- BB+ to BB BB- >BB-
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Commercial Industry Exposures

Finance & Insurance

Property Services

Manufacturing

0 20 40 60 80	0% 2% 4% 6% 8% 10% 12% 14%	0% 2% 4% 6% 8% 10% 12% 14%	0% 2% 4% 6% 8% 10% 12% 14%	0% 2% 4% 6% 8% 10% 12% 14%

Mar 10 Sep 10 Mar 11

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80 14% 80 14%
12% 12%
60 60
10% 10%
8% 8%
40 40
6% 6%
4% 4%
20 20
2% 2%
0 0% 0 0%
Mar 10 Sep 10 Mar 11 Mar 10 Sep 10 Mar 11
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Agri, Forestry & Fishing

Wholesale Trade

Other Commercial Exposures

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120 24%
100 20%
80 16%
60 12%
40 8%
20 4%
0 0%
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0 20 40 60			0% 2% 4% 6% 8% 10% 12%

0 20 40 60 80					0% 2% 4% 6% 8% 10% 12% 14%

Mar 10 Sep 10 Mar 11

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Exposure at Default ($b) (LHS) % in Non-Performing (RHS)

% of Group Portfolio (RHS)

Australia 90+ Day Delinquencies

Australia Retail 90+ day delinquencies

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Total Mortgage Portfolio
NSW & ACT Mortgages
1.50% QLD Mortgages
VIC Mortgages
WA Mortgages
Total Credit Cards
1.00%
0.50%
0.00%
Sep 07 Sep 08 Sep 09 Sep 10
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Australia Division 90+ day Delinquency Balance ($m)

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2,000
1,500
1,000
500
0
Mar 10 Sep 10 Mar 11
Mortgages Other Lending
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Mortgages have low loss rates

Individual Provision Loss Rates

1H09 2H09 1H10 2H10 1H11 Group 0.85% 0.74% 0.61% 0.42% 0.31% Australia Region 1.03% 0.72% 0.59% 0.42% 0.31% Australia Mortgages 0.03% 0.02% 0.02% 0.01% 0.01%

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Australia Mortgages

Portfolio Statistics	Portfolio Statistics
Total Number of Mortgage Accounts	831k
Total Mortgage FUM	$165b
% of Total Australian Lending	59%
% of Total Group Lending	44%
Owner occupied loans - % of portfolio	64%
Average Loan Size at Origination	$227k
Average LVR at Origination	63%
Average Dynamic LVR of Portfolio	47%
% of Portfolio Ahead on Repayments	38%
First Home Owners – % of Portfolio	11%
First Home Owners – % of New lending 1H11	7%

Dynamic Loan to Valuation Ratio

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% Portfolio
60%
50%
40% 10% of Portfolio
>80% LVR
30%
20%
10%
0%
0-60% 61-75% 76-80% 81%-90% 91%+
Mar 10 Sep 10 Mar 11
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Mortgage Portfolio by State
(Mar 2011)
NSW & ACT
27%
16% QLD
VIC
10%
20%
WA
27%
OTHER
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Australia Commercial

Australia Commercial 90+ day delinquencies

Regional Commercial Banking 90+ day delinquencies

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3.00% RCB Total Agri Other Commercial
Business Banking 3.00%
Regional Commercial Banking 2.50%
2.50%
Esanda 2.00%
Small Business Banking 1.50%
1.00%
2.00%
0.50%
0.00%
1.50% Jan-10 May-10 Sep-10 Jan-11
Australia Commercial Lending Mix
1.00%
Business Banking
31%
Regional Commercial Banking
0.50%
29%
Esanda
7%
33% Small Business Banking
0.00%
Sep-07 Sep-08 Sep-09 Sep-10
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The Queensland economy was already facing challenges before the onset of natural disasters

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----- Start of picture text -----

Unemployment did not experience the Tourism flows have been declining
level of decline experienced in the impacted by a strong AUD
national average
% 2,000 0.40
Net Tourism (lhs)
9.0 0.50
AUD/USD (rhs)
Australia 1,000 0.60
0.70
8.0 Queensland -
0.80
0.90
-1,000
7.0 1.00
-2,000 1.10
2000 2002 2004 2006 2008 2010
6.0
Mining is a key driver of economy but
less significant than in WA
5.0
Mining as % of Total Industry
4.0
30%
14%
3.0
2001 2003 2005 2007 2009 2011 QLD WA
(„000)
AUD/USD Inverted
Net Tourism Annual Rolling Sum
Level of unemployment
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QLD WA
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New Zealand

Total Impaired Assets

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NZDm
2.31%
2.13%
1.89% 2,236
2,079
1,837
1.24%
1,220
0.64%
639
Mar 09 Sep 09 Mar 10 Sep 10 Mar 10
Impaired Assets IA as % GLA
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Total Provision Charge

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NZDm
800
598
600
330
400 291
131
85
200
0
-200
1H09 2H09 1H10 2H10 1H11
IP Charge CP Charge
90+ Days Arrears
1.20% Mortgages
Commercial
Rural
0.80%
0.40%
0.00%
2007 2008 2009 2010 2011
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Credit Intermediation Trades

Position as at 31 Mar 2011 Counterparty Rating No. Notional purchased protection principal amount (USDm) Mark to Market (USDm) Life to Date Credit Risk on Derivatives (USDm) Credit Risk on Derivatives (AUDm)	Notional Principal Amount on corresponding Sold Protection (USDm)

AA+/Aa3 2 2,010 204 46 44	1,522
BB/Ba1 1 3,100 94 48 47	3,100
Withdrawn Rating / No rating 3 3,778 160 54 52	3,778
Defaulted Monoline1 - - - - - Other costs2 - - - 295 318	-
Position 31 March 2011 6 8,888 458 443 461	8,400

Position 30 September 2010 6 9,879 620 488 515	8,414

The last bought protection trade from the defaulted monoline matured in September 2010.
Other costs are cumulative life to date costs which include realised losses relating to restructuring trades to reduce risks which were unhedged due to default by the purchased protection counterparty and realised losses on termination of sold protection trades. It also includes foreign exchange hedging losses.

Credit Intermediation Trade Portfolio

Credit Intermediation Trades

Cumulative Credit Risk on Derivative expense for the Credit Intermediation Trade portfolio as at 31/3/2011 was $461m (down $55m from 30/9/2010)

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AUDb USDb
3.50 12.00
3.00
10.00
2.50
8.00
2.00
6.00
1.50
4.00
1.00
2.00
0.50
0.00 0.00
Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11
Mark to Market AUD (LHS)
Credit Valuation Adjustment AUD (LHS)
Notional Sold Exposure USD (RHS)
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Credit markets have shown a tightening bias over the past six months despite periods of volatility. The relative stability in credit markets and the reduced level of credit exposure outstanding has resulted in lower MTM and CVA over the past 6 months
However, MtM and CVA remain subject to volatility in both credit spreads and exchange rates
The level of sold protection was relatively unchanged with no trades exited during HY11. The total notional value of the sold protection outstanding was USD 8,400m (30/9/10 USD 8,414m).
ANZ will look at opportunities which may arise to reduce our remaining sold protection exposure.
ANZ has strong levels of protection under the sold protection trades with an average attachment point of • ~ 15% for the 12 CDO‟s
~ 36% for the 6 CLO‟s
ANZ has USD 8,888m in bought protection outstanding including approximately USD 0.49bn of bought protection for which ANZ has no remaining underlying sold protection exposure.
The notional face value of bought protection reduced by approximately USD1bn with one trade maturing during HY11.

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100

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack Economic Updates

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Economic updates

Australia

New Zealand

	2009	2010	2011	2012	2009	2010	2011	2012
GDP	0.9	2.7	1.7	4.0	-2.8	1.3	0.4	4.0
Inflation	1.3	2.8	2.9	2.6	1.7	1.5	5.01	2.7
Unemployment	5.8	5.2	5.0	4.5	6.5	6.4	6.6	6.1
Cash rate	3.00	4.50	5.00	5.75	2.50	3.00	2.50	3.75
AUD/USD	0.88	0.97	1.05	0.98	N/A	N/A	N/A	N/A
Credit	1.7	3.2	4.3	5.2	3.6	0.6	1.1	3.7
- Housing	7.6	7.9	6.6	6.5	3.9	3.0	1.7	4.8
- Business2	-4.6	-3.7	0.1	4.0	3.6	-2.7	0.2	2.0
- Other	-5.5	2.7	4.7	5.0	-1.8	2.2	4.2	4.0

Source - ANZ economics team estimates. Based on 30 September bank year. Growth rates in through the year terms.

Impacted by an increase in the Goods and Services tax rate from 12.5% to 15% effective 1 October 2010
NZ Business includes Rural lending

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102

Growth Forecasts – Asia

Emerging Asia GDP Growth Forecasts

2007 2008 2009 2010 2011 2012	2007 2008 2009 2010 2011 2012	2007 2008 2009 2010 2011 2012	2007 2008 2009 2010 2011 2012	2007 2008 2009 2010 2011 2012	2007 2008 2009 2010 2011 2012	2007 2008 2009 2010 2011 2012
China	13.0	9.6	9.1	10.3	9.5	9.5
India	9.5	7.3	6.8	8.6	8.9	9.8
NIEs
HongKong	6.4	2.4	-2.8	6.5	5.0	5.2
Korea	5.1	2.3	0.2	6.1	3.9	4.7
Singapore	8.5	1.8	-1.3	14.5	4.6	5.5
Taiwan	5.9	1.1	-1.9	11.0	5.3	3.5
ASEAN
Indonesia	6.4	6.0	4.5	6.1	6.2	6.5
Malaysia	6.5	4.7	-1.7	7.2	5.1	5.9
Philippines	7.1	3.7	1.1	7.3	5.9	6.0
Thailand	5.0	2.5	-2.3	7.8	4.4	5.5
Vietnam	8.5	6.3	5.3	6.8	6.4	6.6

Total	10.3	7.3	6.1	9.2	8.1	8.3
Total(ex. China & India)	6.1	3.3	0.4	7.6	5.0	5.3
Sources: CEIC, ANZ Economics.

Note: Based on calendar year.

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103

The material in this presentation is general background information about the Bank‟s activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate

This presentation may contain forward-looking statements including statements regarding our intent, belief or current expectations with respect to ANZ‟s business and operations, market conditions, results of operations and financial condition, capital adequacy, specific provisions and risk management practices. When used in this presentation, 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. Such statements constitute “forward-looking statements” for the purposes of the United States Private Securities Litigation Reform Act of 1995. 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 to reflect the occurrence of unanticipated events.

For further information visit

www.anz.com

or contact

Jill Craig Group General Manager Investor Relations

ph: (613) 8654 7749 fax: (613) 8654 9977 e-mail: [email protected]

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AI assistant

Australia and New Zealand Banking Group Ltd. — Interim / Quarterly Report 2011

10425_rns_2011-05-02_b2120e1d-fc14-4cb1-a3e9-9969cd65a7a6.pdf

Overview of financial performance

Australia

1H11 Growth v System HOH[1]

Retail revenue, lending and deposit growth HOH

New Zealand

NII (LHS)

Asia Pacific, Europe & America

Institutional

Growing and diversifying regional client base

Increased connectivity driven revenue

Funding and Capital

Strong Funding Composition

Emerging differentiation

First Half 2011 – The Numbers

$m

Performance 2H10 v 1H11

Adjust for acquisitions & FX – The Pro forma Numbers

Growth 1H11 v 2H10 – Underlying & Pro forma

Foreign Exchange impacts

Earnings Per Share Impact

Divisional overview

Profit Before Provisions (Pro forma)

Underlying Profit (Pro forma)

Income composition

Markets Revenue by Geography

Net Interest Margin

Movement 1H11 v 1H10 (bps)

Divisional movement 1H11 v 2H10 (bps)

Net Interest Margin

Investment continues in high growth businesses

Individual Provision Charge & Impaired Assets

Total Provision Charge

New Impaired Assets

Collective Provision Charge & Management Overlay

Collective Provision Charge

Management Overlay Charge 1H11

Outlook

Group Margin ex-Markets

Markets Income

Lending Volumes / Other Income

Currency Impacts

Cost Growth

Total Provision Charge

NIM movement summary

Net Interest Margin

Drivers of Net Interest Margin

Geography

Product

Net Interest Margin - Group

NIM movement 1H11 v 2H10

Key drivers of movement

Net Interest Margin - Australia Division

NIM movement 1H11 v 2H10

Key drivers of movement

Net Interest Margin - New Zealand Businesses

NIM movement 1H11 v 2H10

Net Interest Margin – Global Institutional

NIM movement 1H11 v 2H10

Group loans and deposits

Group customer deposits

Group net loans and advances (including acceptances)

Customer deposits by geography

Customer deposit composition by segment

Net loans and advances by geography

Lending composition by segment

Australia Region - Deposits

Australia Region - Lending

- APEA Region Deposits

1H11 deposit growth by segment (HOH)

APEA Region - Lending

Growth Rates

1H11 loan growth by segment (HOH)

APEA loans

New Zealand Region Lending

New Zealand Region Deposits

Global Institutional Deposits

Global Institutional Lending

Australia and New Zealand Banking Group Ltd. Interim / Quarterly Report 2011