AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Results Presentation & Investor Discussion Pack

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Index

Half Year Result Overview

Half Year Result Overview
CEO Presentation	3
CFO Presentation	12
Additional Financial Information
Net Interest Margin	28
Balance Sheet	36
Software Capitalisation	39
Divisional Performance
Australia Division	40
Asia Pacific, Europe & America Division	59
Institutional Division	72
New Zealand Businesses	91
Treasury	98
Risk Management	110
Economic Updates	129

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Mike Smith Chief Executive Officer

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Overview of financial performance

	1H12	Growth	Growth
	AUDm	vs 2H11	vs 1H11
Underlying Profit	2,973	5%	6%
Operating Income	8,704	4%	3%
Expenses	4,020	3%	5%
Provisions	565	3%	-14%
Statutory Net Profit After Tax	2,919	8%	10%
EPS (cents)	112.2	3%	2%
Dividend per Share (cents)	66	n/a	3%
Net Interest Margin	2.38%	-6bps	-9bps
Customer deposits (AUDb)	308.3	4%	15%
Net loans and advances1 (AUDb)	412.6	4%	9%

All figures other than Statutory Net Profit after Tax and Dividend are presented on an underlying basis. 1. Including acceptances

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Our Super-Regional Strategy is built on three pillars

Diversification		Connectivity
1. Revenue a. Focus Markets • Indonesia +17% • Singapore +5%x • India +71% • Greater China +24% • Greater Mekong +13% b.Focus Sectors • Natural Resources +31% • Agribusiness -3% x • Infrastructure +14% • FIG +26% 2. Funding (Term Debt Outstanding) • Domestic 34% • Asia 14% • Europe & America 52%		1. Trade & Capital Flows • Trade +25% • Cash Management +19% • FX +23% • Capital Markets +12% 2. Cross Border (Catch & Throw) • % of Group Revenue 4% 3. Migrant Banking  • Added 28 International Banking Services branches in Australia • Added additional language specialists
Shared Core Infrastructure
Product • Transactive • FX • Retail RMB • Go Money Operations • Hubs • Finnacle Risk • Markets and Credit Risk Engines People • Leadership development and training

Shared Core Infrastructure

Product

Operations

Transactive • Hubs
• FX • Finnacle • Retail RMB • Go Money

Risk

People

Markets and Credit • Leadership Risk Engines development and training

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All growth rates reflect 1H12 v 1H11

Australia Division

Underlying profit growth (AUDm)

Australia Division

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Net Interest Margin
2.70%
2.60%
2.50%
2.40%
2.30%
1H11 2H11 1H12
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Net Loans & Advances[1]

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AUDb Retail & Wealth Commercial
241.5
250 224.9 231.2
200
150
100
50
0
Mar 11 Sep 11 Mar 12
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1H12 v 2H11

-7%

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Profit composition
NPAT Contribution (AUDm)
13%
Retail
48%
Commercial
39%
Wealth
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Customer Deposits

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AUDb
Retail & Wealth Commercial
150 135.9
128.5
121.1
100
50
0
Mar 11 Sep 11 Mar 12
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Including acceptances.

New Zealand Businesses

Underlying profit growth (NZDm)

1H12 v 2H11

New Zealand Businesses 11%

Cost to income ratio

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New Zealand Businesses
52%
Pro Forma NZD
50%
48%
46%
44%
42%
1H10 2H10 1H11 2H11 1H12
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Profit before provisions (NZDm)
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810
761 772
716
667
1H10 2H10 1H11 2H11 1H12
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Profit composition

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NPAT Contribution
8%
Retail
59%
Commercial
33%
Wealth
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Net interest margin
NZDb NIM%
90 2.8%
88 2.6%
86 2.4%
84 2.2%
82 2.0%
1H10 2H10 1H11 2H11 1H12
Net Loans & Advances (incl. acceptances)
Net Interest Margin
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Asia Pacific, Europe & America (APEA) Division

Underlying profit growth (USDm)

APEA Division

1H12 v 2H11

21%

APEA revenue (pro forma USD)

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20%
1,820
18% 1,596 1,656
1,389
1,306
18% CAGR 1,442
1,275 1,295
1,029 1,077
1H10 2H10 1H11 2H11 1H12
% APEA Contribution to Group Revenue
Australia & NZ revenue derived from APEA
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Customer deposits & lending
Net loans and advances Customer Deposits
USDb
(including acceptances) 74
80
63
55
60
42
38
40 32
20
0
Mar 11 Sep 11 Mar 12 Mar 11 Sep 11 Mar 12
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APEA client revenue

Increasing diversification

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Markets Sales Other Client Revenue
USDm
800 35% CAGR 661
564
526
600
408
364
400
200
0
1H10 2H10 1H11 2H11 1H12
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Percentage of Group Revenue
20%
4%
9%
8%
Institutional
& Commercial 4% 4%
Asia Retail 1%
Pacific Retail 2% 2%
Partnerships & Other 1% 1%
FY07 1H12
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Institutional Division

Underlying profit growth (AUDm)

Institutional Division

Institutional revenue mix ($m)

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AUDm By Product By Geography
3,000 2,612 2,769 2,612 2,769
2,430 2,430
2,000
1,000
0
1H10 1H11 1H12 1H10 1H11 1H12
Transaction Banking Markets Sales APEA Australia NZ
Markets Trading Global Loans
Growth in trade and supply chain
60 AUDb Funded Limits Unfunded Limits
40
20
0
1H10 2H10 1H11 2H11 1H12
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FY11 v FY10

24%

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Cross border income
Cross
Domestic
Border
Booked
19%
81%
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Global Markets revenue mix

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AUDm Sales Trading & Balance Sheet
800
600
400
200
0
1H10 2H10 1H11 2H11 1H12
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Strengthened capital position, well diversified funding base

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Strong Capital Position Diversified Funding Base
Common Equity Tier 1 Ratio Equity & Hybrid Debt Customer Funding
Tier 1 Ratio Term Funding >1 year Term Funding <1 year
11.3%
10.9% Short Term Funding
10.1%
14%
4%
13%
8.9%
8.5%
8.0% 60%
9%
Sep 10 Sep 11 Mar 12 Mar 12
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Key points

Competitive advantages emerging from connectivity and from

diversification into higher growth geographies

Australian and New Zealand environment challenging – opportunities

remain but need to reshape business for future

Balance sheet management distinctive – lower structural funding task

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Peter Marriott Chief Financial Officer

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First Half 2012

$m Performance 1H12 v 2H11 199 2,973 14 46 2,919 143 2,834 54 4% 3% 2,691 Up 5% Up 8% 2H11 Non-Core 2H11 Profit Provisions Tax & OEI 1H12 Non-Core 1H12 Statutory Items Underlying Before Underlying Items Statutory Profit Profit Provisions profit Profit

Performance 1H12 v 1H11

1H11 Statutory Profit	Non-Core Items	1H11 Underlying Profit	Profit Before Provisions	Provisions	Tax & OEI	1H12 Underlying Profit	Non-Core Items	1H12 Statutory Profit
2,664	154	2,818	75	95	(15)	2,973	54	2,919
			Up 2%	Down 14%		Up 6%		Up 10%

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Group income growth strong assisted by Markets trading income recover offset b Australia mar in ressure y y g p

Pro Forma Income growth 1H12 v 2H11

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Institutional APEA
Total Income Growth New Zealand Australia
Ex-Trading [1] Ex-Trading [1]
7.1%
5.0%
4.1%
Global Markets
2.7%
Trading &
2.6%
Balance Sheet
Other 1.5%
-1.8%
• Global Markets • Partnerships - • Margin • 13 bps margin
Sales Income SSI write-down improvement decline
• Transaction impact
Banking
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Pro Forma Income growth 1H12 v 1H11

	Total	Total Ex-Trading1	Institutional Ex-Trading1	APEA Ex-Trading1	New Zealand	Australia
Income Growth	3.4%	4.4%	10.4%	9.4%	3.6%	-0.7%

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Excludes Global Markets trading and balance sheet income.

Global Markets income recovered with continued rowth in sales and normalisation of tradin income g g

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Global Markets HOH Income Growth Global Markets Income Mix by Product
Total Income Sales Income
10% 11%
17% Other
45% 10% 8%
8%
15% 14% 16%
42% Capital Markets
3% 53% 43%
Fixed Income
39%
27% 32% Foreign Exchange
1H11 2H11 1H12
1H10 1H11 1H12
-29%
Global Markets Quarterly Trends Global Markets Income by Geography
AUDm Sales Income
15% 19% 20%
New Zealand
400 Trading & Balance Sheet Income
27%
27%
32%
300
APEA
200
58% 54%
48%
Australia
100
0
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 1H10 1H11 1H12
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Net Interest Margin – First Half 2012

Movement 1H12 v 2H11 (bps)

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244.2
0.7 1.7
238.3
2.1 0.7
4.5 1.0
279.5 Down 4.9 bps ex-Markets 274.6
Down 5.9 bps
2H11 Funding Funding Costs Deposits Assets Other Markets 1H12
&
Asset Mix
Movement 1H12 v 1H11 (bps)
Funding &
1H11 Funding Costs Deposits Assets Other Markets 1H12
Asset Mix
247.2 2.6 (6.6) (7.9) 3.8 2.4 (3.2) 238.3
280.3 Down 5.7 bps ex-Markets 274.6
Down 8.9 bps
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Net Interest Margin – Divisional Trends

Net Interest Margin 1H12 v 2H11

Net Interest Margin

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Institutional
Australia Division ANZ Group ex-markets
ex-Markets
Australia Division
NZ Businesses
3.40%
APEA ex-markets
9.9%
Institutional ex-markets
3.5% Down 13 bps Down 10 bps
3.20%
-3.3%
-5.2% 3.00%
Volume Margin Volume Margin
New Zealand APEA Division 2.80%
Businesses (NZD) ex-Markets (USD)
12.2%
2.60%
Up 12 bps Down 3 bps
4.7%
2.40%
-1.0%
-1.4%
2.20%
Volume Margin Volume Margin
1H11 2H11 1H12
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NIM declined in Q2 partly due to one off‟s

Contribution to Net Interest Margin ex-Markets Movement 2Q12 v 1Q12

1Q12 278.8	Australia	New Zealand	APEA	Institutional	Group Centre

	-5.1	0.5	-1.3	-1.2		-8.5 bps
18 -1.4 2Q12 270.3 •Deposit costs vs Asset pricing •Various one- off product interest adjustments (positive Q1 / negative Q2) •Repricing •Mix change with growth in lower risk assets •Deposit competition •Deposit competition •Loan margins •Dividend payment Key Factors	•Deposit costs vs Asset pricing •Various one- off product interest adjustments (positive Q1 / negative Q2)	•Repricing	•Mix change with growth in lower risk assets •Deposit competition	•Deposit competition •Loan margins	-1.4 •Dividend payment

Positive „JAWS‟ in most divisions; action underway on costs in Australia

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Pro Forma Income & Expense Growth Pro Forma Income & Expense Growth
HOH by Division 1H12 v 2H11
Income Growth Expense Growth 16%
Income growth Expense growth
11%
5.5%
ex-Trading & 6%
Balance Sheet 3% 3% 3%
Income 0%
4.0% 4.1% 4.1%
-2%
Australia New Zealand APEA Institutional
3.3%
3.1% Division Businesses (USD)
2.8%
2.4%
Pro Forma Operating Expense Growth by Division HOH
1.5%
2H10 1H11 2H11 1H12
14%
11%
10%
9% 8%
5% 6% 5%
3% 3% 3%
1% 1%
0% 0%
-0.8% -4%
Australia New Zealand APEA Institutional
2H10 1H11 2H11 1H12
Division Businesses (USD)
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There has been a ramp up in restructuring activity

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Underlying Restructuring Cost
1H12 Underlying Restructuring
($m)
Cost Breakdown
Other
74
8%
20%
Institutional
Australia
58%
APEA
8%
15 6%
New
8
Zealand
Funded from GST refund
1H11 2H11 1H12 and existing provisions
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A greater focus on simplification and productivity whilst continuin to invest for rowth g g

Operating Expense Growth Pro Forma 1H12 v 2H11

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78
70 22 21 4,020
70
3,899
• Technology infrastructure upgrade
• IT security investment
• Institutional Transaction Banking and Markets
• APEA Commercial build out & Asia core platform
• Australia and Institutional business simplification
• Investment in regional support hubs
• Regional support hubs
• New Zealand simplification
• Australia and Institutional simplification
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2H11 Running the Infrastructure Investment for Productivity Realised 1H12 Business Upgrade & Growth Investment Productivity Compliance Benefits

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Individual Provision Charge lifted by “transfers"

Individual Provision Charge ($m)

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IP net of CP & CVA "transfers" related to
legacy exposures and natural disasters
arising in prior periods
"Transfers" to IP
717
609
594
571 556 577
1H11 2H11 1H12
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“Transfers” to Individual Provision ($m)	“Transfers” to Individual Provision ($m)	“Transfers” to Individual Provision ($m)
Institutional		121
	Management overlay	53
	Other Single name	35
	Credit Valuation Adjustment on derivatives	33
New Zealand management overlay		14
Australia management overlay		5
Total		140

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Individual Provision Charge – underlying trends reasonabl stable y

Individual Provision Charge by Division ($m)

IP Charge net of CP Transfers CP & CVA "transfers" related to legacy exposures and natural disasters

Australia		Institutional	New Zealand	APEA Ex-Institutional
350 314 20 5 370 319		74 165 2 121 76 286	103 91 31 14 134 105	30 7
		74
2H11 1H12 •Seasonality and higher writebacks in 1H12	2H11 1H12 •High recoveries in 2H11		2H11 1H12 •Continued stabilisation	2H11 1H12 •Remain modest

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Collective Provision release principally due to ex osures bein cr stallised p g y

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Collective Provision Charge Modelled Collective Provision
Composition ($m) Charge Drivers 1H12 ($m)
1H11 2H11 1H12
Institutional
100
Growth
74
50 Australia
Growth
0 Other Growth
-4
Institutional
-50
Risk profile
-78
NZ Risk Profile
-100
Other
Risk Profile
-150
Modelled portfolio Charge
CP "transfers" to IP related to legacy exposures and
-200
natural disasters arising in prior periods 1H12
Release of management overlays no longer required
-250
24
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Net impaired assets continue to reduce, increase in new im aired driven b two sin le names in Institutional p y g

Net Impaired Assets New Impaired Assets by Division by Division

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$m $m
6,000 3,500
3,126
4,969
3,000
5,000 4,685
4,504
2,436
2,500 2,319 2,335
3,884
4,000
3,629
2,000 1,824
3,000
1,500
2,000
1,000
Driven by
2 large
1,000
500
single
names
0 0
1H10 2H10 1H11 2H11 1H12 1H10 2H10 1H11 2H11 1H12
Institutional Australia Division Institutional Australia Division
NZ Businesses APEA ex-Institutional NZ Businesses APEA ex-Institutional
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Outlook

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Net Interest Margin ex-Markets Expense Growth
2.78% [2.81%] [2.80%] [2.79%] 6%
2.69% 2.70%
4%
2.55%
3%
2%
2.35%
2H10 1H11 2H11 1H12
1H09 2H09 1H10 2H10 1H11 2H11 1Q12 2Q12
Global Markets Revenue Total Provision Charge
$m
Second Half First Half
$m 3,056
400 Sales Trading & Balance Sheet
300 1,621 1,820
200
722 1,211
100 551
1435
1098
0 660 565
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
2009 2010 2011 1H12
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack Additional Financial Information

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NIM movement summary

Basis points (bps)	Group	Regions Australia NZ APEA	Divisions Australia Division NZ Businesses APEA Global Institutional	Divisions Australia Division NZ Businesses APEA Global Institutional
	HOH PCP	HOH PCP HOH PCP HOH	HOH PCP HOH PCP HOH	HOH PCP
Starting NIM	244.2 247.2	261.4 259.4 240.0 235.4 139.1	258.4 260.3 253.3 249.0 155.1 189.4 202.9
Funding & Asset Mix Funding Costs Deposits Assets Other	-0.7 2.6 -2.1 -6.6 -4.5 -7.9 0.7 3.8 1.7 2.4	-0.6 5.3 0.5 2.5 -0.9 -2.5 -6.4 0.4 -4.2 0.4 -5.4 -9.1 3.8 0.9 -8.0 -1.9 0.4 3.9 16.8 11.9 0.4 1.1 3.8 4.8 2.7	-1.6 -1.4 0.7 2.7 -4.5 -3.9 -5.2 -1.6 -9.3 -3.6 -6.7 -10.5 4.1 0.3 -9.2 -0.9 3.7 4.4 18.1 12.4 -0.3 -1.9 4.3 4.4 2.3	-4.8 -5.0 0.9 -7.1 -3.7 -6.1 -0.2 -8.9 -2.2 -3.0
Movement excl. Global Markets	-4.9 -5.7	-9.9 -8.6 12.4 20.8 6.1	-13.4 -15.3 12.0 16.3 -2.6 -10.0 -30.0
Markets	-0.9 -3.2	0.2 0.9 -2.3 -6.1 0.6	0.0 0.0 0.0 0.0 5.3	4.1 10.6
Total Movement	-5.8 -8.9	-9.7 -7.7 10.0 14.7 6.7	-13.4 -15.3 12.0 16.3 2.7 -5.9 -19.4
Ending NIM	238.3 238.3	251.7 251.7 250.0 250.0 145.8	245.0 245.0 265.3 265.3 157.8 183.5 183.5

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

Net Interest Margin – Divisional Trends

Net Interest Margin 1H12 v 2H11

Net Interest Margin

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Net Interest Margin - Group

NIM movement 1H12 v 1H11

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bps
244.2
0.7
2.1 1.7
238.3
0.7
1.0
4.5
Ex-markets down 4.9 bps
Down 5.8 bps
2H11 Funding & Funding Costs Deposits Assets Other Markets 1H12
Asset Mix
Key drivers of movement
Negative asset mix impacts with an increase in lower margin Institutional trade loans and greater
Funding &
growth in the lower spread APEA region (partly offset by funding mix benefits from reduced reliance
Asset Mix
on wholesale funding)
Funding Costs Impact of higher wholesale funding costs
Deposits Effects of strong competition on retail deposits in Australia business
Repricing actions on Institutional trade loans and NZ Businesses lending partly offset by continued
Assets
margin compression in Australia housing loans
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NIM - Australia Division

NIM movement 1H12 v 2H11

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bps
258.4
1.6
3.9
245.0
6.7
0.9 0.3
Down 13.4 bps
2H11 Funding & Funding Costs Deposits Assets Other 1H12
Asset Mix
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NIM movement 1H12 v 1H11

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bps
260.3
1.4
5.2
3.7
245.0
1.9
10.5
Down 15.3 bps
1H11 Funding & Funding Costs Deposits Assets Other 1H12
Asset Mix
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NIM – New Zealand Businesses

NIM movement 1H12 v 2H11

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bps
4.3 265.3
4.4
4.1
253.3 0.7
1.6
Up 12.0 bps
2H11 Funding & Funding Costs Deposits Assets Other 1H12
Asset Mix
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NIM movement 1H12 v 1H11

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bps
4.4 265.3
18.1
2.7
249.0
0.3
9.3
Up 16.3 bps
1H11 Funding & Funding Costs Deposits Assets Other 1H12
Asset Mix
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NIM – APEA Division

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bps
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NIM movement 1H12 v 2H11

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157.8
155.1
12.4 2.1
5.3
4.5
3.6
9.0
Ex-markets down 2.6 bps
Up 2.7 bps
2H11 Funding & Funding Costs Deposits Assets Other Markets 1H12
Asset Mix
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NIM – Institutional Division

NIM movement 1H12 v 2H11

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bps
189.4
0.9
183.5
4.8
3.7 0.2
2.2 4.1
Ex-Markets down 10.0 bps
Down 5.9 bps
2H11 Funding & Funding Costs Deposits Assets Other Markets 1H12
Asset Mix
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NIM movement 1H12 v 1H11

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bps
202.9
5.0
183.5
7.1
6.1
8.9
Ex-Markets down 30.0 bps 3.0 10.6
Down 19.4 bps
1H11 Funding & Funding Costs Deposits Assets Other Markets 1H12
Asset Mix
34
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Net Interest Margin - Geography

Australia Geography NIM movement 1H12 v 2H11

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bps Australia Geography NIM movement 1H12 v 2H11
261.4
0.6 2.5 0.4 0.2 251.7
5.4
1.9
2H11 Funding & Funding Costs Deposits Assets Other Markets 1H12
Asset Mix
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New Zealand Geography NIM movement 1H12 v 2H11

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bps
3.8
250.0
3.9
3.8
2.3
0.4
240.0 0.5
2H11 Funding & Funding Costs Deposits Assets Other Markets 1H12
Asset Mix
----- End of picture text -----

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Balance Sheet – Customer Lending & Deposits

Net Loans & Advances

Customer Deposits

0 50 100 150 200 250 300 350 400 450 $b	Sep 08 Sep 09 Sep 10 Sep 11 Mar 12 Australia APEA New Zealand Grou LTD Ratio (RHS) (incl. Acceptances) 167% 134% 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 0 50 100 150 200 250 300 350 400 450 Sep 08 Sep 09 Sep 10 Sep 11 Mar 12 Loan / Deposit Ratio $b

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Balance Sheet - Composition by Geography

Net Loans & Advances (incl. Acceptances)

Customer Deposits

==> picture [679 x 245] intentionally omitted <==

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

Australia APEA APEA Commercial
Institutional APEA Retail & Wealth & Institutional
Retail & Wealth
14% 2% APEA Commercial 5% 18%
& Institutional
Australia 8%
Commercial Australia
12% Institutional 18% APEA
APEA New Zealand
7%
10% Retail & Wealth 23% New Zealand
Australia New New 8% Retail & Wealth
Other Retail 3%
Zealand Zealand
Australia72% 18% 10% New ZealandCommercial Australia 16% 5% New ZealandCommercial
1% New Zealand CommercialAustralia 13% 61% 3% New Zealand
Institutional Institutional
43% 30%
Australia
Retail Mortgages Australia Retail
----- End of picture text -----

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Balance Sheet - Composition by Segment

Net Loans & Advances (incl. Acceptances)

Customer Deposits

==> picture [680 x 251] intentionally omitted <==

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

New Zealand Australia
Australia
Commercial Institutional
Commercial New Zealand
Commercial 18%
10%
12% 5%
New Zealand
Retail & Wealth 7% Commercial 14% InstitutionalAustralia Australia 13%
APEA 22% Commercial 18% Institutional
Retail & Wealth 2% Commercial 38% 18% Institutional APEA
Institutional
23% APEA
8% New Zealand 8%
Institutional
Retail & Wealth Retail & Wealth Retail & Wealth
3%
55% 1% New Zealand 44% New Zealand Institutional
5%
Institutional
APEA
Retail & Wealth
47% 30%
Australia
Australia
Retail & Wealth
Retail & Wealth
----- End of picture text -----

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Software capitalisation

Capitalised software balance ($m)

==> picture [290 x 149] intentionally omitted <==

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

1,743
1,572
1,349
Mar 11 Sep 11 Mar 12
----- End of picture text -----

Software capex v Amortisation ($m)

==> picture [290 x 131] intentionally omitted <==

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

368
324
277
150
122 127
Mar 11 Sep 11 Mar 12
----- End of picture text -----

Capex Amortisation & Write-offs

Capitalised costs – by division

==> picture [258 x 143] intentionally omitted <==

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

Australia
23%
26%
APEA ex-Insto
4% Institutional
11%
New Zealand
36% Group Centre
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Net book value – by division

==> picture [265 x 140] intentionally omitted <==

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

18% Australia
24%
4% APEA ex-Insto
Institutional
17% New Zealand
37%
Group Centre
----- End of picture text -----

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Divisional Performance Australia Division

==> picture [117 x 42] intentionally omitted <==

Australia Division – Consistent customer focus and wellestablished market ositionin p g

1. Driving customer growth and improving productivity and efficiency

Delivering on the transformation agenda for the distribution network, reducing network costs and aligning capability and capacity with customer demand
Delivered improved mortgages sales capabilities and simplified processes to drive proprietary growth
Provided expanded ability for customers to address simple service requests online
Introduced ANZ OneSwitch to on-board Commercial customers quickly and easily.

2. Delivered customer propositions targeted at key segments aligned to Super Regional Strategy

Expanded multi-lingual capabilities across a range of products and services, including Wealth products
Launched pre-arrival concierge service for customers migrating to Australia, onboarded ~1,500 customers since October 2011
Mortgage products targeted to new residents as well as nonresident customers
Acquired new-to-bank Commercial customers by accessing distribution networks of Retail, OnePath and Esanda and leveraging ANZ Super Regional capabilities.
New retirement savings products for 50+ customers.

3. Successful implementation of technology and innovation initiatives

Enhanced functionality of goMoney for iPhone and iPad (registered users to date surpassing 600k)
Launch of Smart Choice Super online
Improved user experience online, including enhanced security online statement access
Expanded scope and functionality of integrated mortgage origination platform
Pilot utilisation of iPads by frontline bankers, A-Z Review application.

Underlying PBP

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

$m
2,500 2,338 2,387 2,258 2,258
255 Wealth
2,000
1,500 867 Commercial
1,000
500 1,137 Retail
0
1H11 2H11 1H12 1H12 by
business
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Lending & deposit growth (HOH)

==> picture [267 x 187] intentionally omitted <==

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

6%
5%
5%
5%
4%
3%
3%
3%
2%
1%
0%
Retail Retail Commercial Commercial
lending deposits lending deposits
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Australia Division – Financial performance

Underlying NPAT movement – 1H12 v 2H11

==> picture [628 x 152] intentionally omitted <==

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

$m
1,464
63 41 1,365
11
55
11
Down 7%
2H11 Net Other Expenses Provisons Tax and 1H12
Interest Income OEI
----- End of picture text -----

Underlying NPAT movement – 1H12 v 1H11

==> picture [628 x 162] intentionally omitted <==

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

$m
107
11 1,365
1,350
12
41
50
Up 1%
1H11 Net Other Expenses Provisons Tax and 1H12
Interest Income OEI
----- End of picture text -----

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Australia Division – Operating Income and Expenses

Operating income movement - 1H12 v 2H11

==> picture [634 x 407] intentionally omitted <==

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

$m
104
4,145 70
4,071
97
11
Down 2%
2H11 Volume Wholesale Deposit Other 1H12
Funding Pricing Operating
Income
Operating expenses movement - 1H12 v 2H11
$m
Includes some
one-offs
40
1,813
17
16
1,758 7 25
Up 3%
2H11 FTE 5% Projects Restructure Other 1H12
Wage
43
----- End of picture text -----

Australia Division – loans and deposits

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

Net loans and advances
(including acceptances)
$b 241.5
250.0 224.9 231.2
200.0
150.0
100.0
50.0
0.0
Mar 11 Sep 11 Mar 12
----- End of picture text -----

Lending up 4% HOH and 7% PCP
Mortgages up 5% HOH and 8% PCP
Commercial up 3% HOH and 7% PCP
Small Business Banking up 6% HOH and 13% PCP
Business Banking up 4% HOH and 9% PCP
Regional Commercial Banking up 1% HOH and 4% PCP

Customer deposits

==> picture [279 x 143] intentionally omitted <==

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

$b
135.9
150.0 128.5
121.1
100.0
50.0
0.0
Mar 11 Sep 11 Mar 12
----- End of picture text -----

Customer deposits up 6% HOH and 12% PCP
Retail up 5% HOH and 12% PCP
Commercial up 3% HOH and 10% PCP
Small Business Banking up 5% HOH and 17% PCP
Business Banking flat HOH and up 4% PCP
Regional Commercial Banking up 5% HOH and 10% PCP

Retail Commercial Wealth

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Australia Division – Deposits

Customer deposit composition

Retail deposit composition


	9%	9%	10%
	13%	13%	12%
	30%	33%	36%
	47%
		45%
			43%
Mar 11 Sep 11 Mar 12

==> picture [339 x 135] intentionally omitted <==

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

100%
13% 13% 13%
80% 10% 10% 9%
60% 26% 29% 30%
Decreased
40% reliance on
term
51% 49% 48%
20% deposits
0%
Mar 11 Sep 11 Mar 12
----- End of picture text -----

Commercial deposit composition

==> picture [339 x 139] intentionally omitted <==

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

1% 1% 1%
100%
21% 20% 19%
80%
60% 39% 42% 44%
40% Decreased
reliance on
term
20% 39% 37% 36% deposits
0%
Mar 11 Sep 11 Mar 12
----- End of picture text -----

Term Deposits Savings Transaction Offset Account

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Retail – Strengthening the franchise

Movement	1H12 v 2H11	1H12 v 1H11
Income	-4%	-1%
Expenses	2%	4%
Profit Before Provisions	-8%	-6%
Net loans & advances incl. acceptances	5%	8%
Customer deposits	5%	11%

Clearly defined strategic priorities to drive growth

Deepening customer relationships and growing share of wallet amongst high value customers
Decreasing the cost of doing business
Strong growth in mortgages and deposits
Improving funding position through management of deposit mix and less reliance on term deposits
Leveraging our super regional strength, locally

Outcome

Achieved #2 in market share by brand[1]
Strongest growth in customer share of wallet[1]
Peer leading MFI customer satisfaction
Implemented productivity initiatives, including further automation, enhanced functionality of goMoney (over 600k users[3] ) and expense reduction intiatives
Strong deposit growth - up 5% HOH and 11% PCP
Mortgages FUM up 5% HOH and 8% PCP.
Source: Roy Morgan Research
Source: APRA Statistics
As at April 2012

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

ANZ Market Share [1]
Traditional banking market share
2 50
20
15
10
Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Feb 12
Household Deposit Growth [2]
Index Sep 09 = 100
135
115
100
95
Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12
Household Lending Growth [2]
Index Sep 09 = 100
140
130
120
110
100
Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12
Peer 1 Peer 2 Peer 3
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Retail - Focused on growth by building deep relationshi s with customers p

MFI Customer Satisfaction remains highest amongst peers, exceeding 80% …

(%) MFI Customers[1]

==> picture [14 x 127] intentionally omitted <==

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

82
80
78
76
74
72
70
----- End of picture text -----

Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12

…supporting leading performance in numbers of products per customer

Products per customer[1,3]

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

2.3
2.2
2.1
2.0
Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Feb 12
----- End of picture text -----

Purchase intention for ANZ home loans remains strong…

(%) Home loans purchase intention[2]

==> picture [281 x 165] intentionally omitted <==

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

30
25
20
15
10
Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12
Peer 1 Peer 2 Peer 3
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Source: Roy Morgan Research
Source: Australian Retail Brand Monitor

…and growth in share of wallet outperforms domestic peers

==> picture [308 x 201] intentionally omitted <==

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

(%) Share of wallet – Traditional Banking [1,3]
Index Sep 09 = 100
110
105
100
95
90
Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Feb 12
----- End of picture text -----

Source: Roy Morgan Research: Traditional Banking – 12 month moving average

Retail - We are focusing on digital and online channels to meet customer ex ectations p

Online now the channel of choice for an increasing number of customers
Branch transactions are declining at the rate of ~4% - 5% per annum
Branch space is under-utilised and not set up for more complex higher value activities, fit-out costs primarily driven by security
Focus on reshaping the distribution network, (branches, contact centre and digital banking platforms) to meet customer needs creating a multi-channel network.
Branch OTC transactions
million OTC transactions 5.5 5.0 4.5 4.0 3.5 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12

Branch reconfiguration

==> picture [194 x 75] intentionally omitted <==

Transformed branch network aligned to customer demand reshaped as a critical sales and service channel
Open plan branch design focusing on complex, higher value sales
• Smaller branch footprint, lower cost fit-out.

goMoney

==> picture [195 x 76] intentionally omitted <==

More than 600k registered users[1 ] since release in August 2010
Over 20 million transactions executed in the last year totalling more than $12 billion.[2 ]

Internet banking

==> picture [193 x 75] intentionally omitted <==

Over 5.6m registered users[2]
Approximately 146 million transactions totaling more than $216 billion executed over the last 12 months (up 4% and 8% on the prior year respectively).

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As at April 2012
As at March 2012

Retail – Mortgages

Portfolio Statistics	Portfolio Statistics
Total Number of Mortgage Accounts	851k
Total Mortgage FUM	$178b
% of Total Group Lending	43%
Owner Occupied Loans - % of Portfolio	63%
Average Loan Size at Origination	$258k
Average LVR at Origination	64%
Average Dynamic LVR of Portfolio	50%
% of Portfolio Ahead on Repayments1	48%
First Home Owners - % of Portfolio	9%
First Home Owners - % of New Lending	7%
90+ Day Delinquencies	0.51%

Dynamic Loan to Valuation Ratio

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

% Portfolio
60%
50%
40% Portfolio >90% LVR:
• Mar 12 = 4%
30% • Sep 08 = 7%
20%
10%
0%
0-60% 61-75% 76-80% 81%-90% 91-95% 95%+
Sep 10 Mar 11 Sep 11 Mar 12
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----- Start of picture text -----

Mortgage Portfolio by State
(Mar 12)
----- End of picture text -----

==> picture [244 x 132] intentionally omitted <==

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

28% NSW & ACT
16%
QLD
VIC
10%
19%
WA
OTHER
27%
----- End of picture text -----

One month or more ahead of repayments. Excludes funds in offset accounts.

Retail - Mortgage pricing

Criteria used to assess Interest Change in cost of funds over the RBA Cash Rates Rate since the Global Financial Crisis

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

Cost of
wholesale
funding
Returns for Competitive
depositors position
Interest
rate
decision
Impact of
Regulatory economic
requirements conditions on
customers
----- End of picture text -----

ANZ‟s average cost for term wholesale funding between 1 October 2011 to 31 March 2012 increased by 15 bps from 116 basis points above the three month bank bill swap rate to 131 bps[1]

Mvmt in funding costs vs. Cash Rate relative to pre-crisis levels[2]

==> picture [318 x 188] intentionally omitted <==

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

1.60%
1.40%
Short Term
1.20%
1.00% Long Term
0.80% Recovery
above
0.60% RBA cash
rate
Deposits
0.40%
0.20%
0.00%
----- End of picture text -----

Weighted contribution of funding sources

ANZ, 23 April 2012, „Integrity and transparency on bank funding costs‟. Represents Australian geography portfolio.
Pre-crisis levels represents the average change in cost of funding relative to the cash rate over the 12 month period ending September 2007

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Commercial – Executing to a clearly articulated strategy

Targeting sectors where we have deep industry specialisation

Natural Resources & Infrastructure downstream business growth in WA and QLD
Agriculture sector growth prospects in key Asian markets with rising food demand
Trading companies with complex funding requirements and cross-border needs (cross-border referrals up 43% PCP).

Continued leadership in super regional capability

Maintained lead brand position in being „able to service my business needs across Australia, New Zealand and Asia.‟[1,2]

Diversifying sales activity, increased bank cross-sell

Trade finance revenue up 14% HOH, up 20% PCP
Markets revenues up 18% HOH, 54% PCP
Mortgages revenue down 1% HOH, up 8% PCP.

Growing customer base and deepening relationships

Acquired 12,400 net new customers (predominantly smallmedium businesses) in the first half (up 3%)

Commercial Banking Underlying Net profit after tax

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

25% CAGR
----- End of picture text -----

==> picture [236 x 214] intentionally omitted <==

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

980
912
632
530
FY09 FY10 FY11 1H12
----- End of picture text -----

Increased share of wallet by 1.7% pts from Sep 11 to Mar 12[1,3,4]
Increased customer quality by 3.4% from Mar 11 to Mar 12[1,3,5]

Risk profile of business stable

Net impaired assets flat YTD.

Notes:

DBM Business Financial Services Monitor, 12-month rolling average.
31% of all businesses in Commercial associate ANZ with „able to service my business needs across Australia, New Zealand and Asia in Mar12 n=17,372; 31.7% in Sep-11 n=17,696.
Commercial includes most small and medium sized businesses
Base: Sep11 n=4,462; Mar12 n=4,493
Base: Mar11 n=17,954; Mar-12 n=17,224

Commercial overview

Movement	1H12 v 2H11	1H12 v 1H11
Income	1%	4%
Expenses	4%	3%
Profit Before Provisions	-1%	5%
Net loans & advances incl. acceptances	3%	7%
Customer deposits	3%	10%

Strategic focus

Continued drive for customer growth through leveraging:
Super Regional capabilities and footprint
Strengths in Markets, Trade Finance and Cash Management and Agriculture, Natural Resources & Infrastructure sector expertise
Retail, OnePath and Esanda‟s distribution network
Continued improvement in efficiency and productivity through centralising and standardising administration functions and enhanced use of offshore Centres of Excellence.

Outcome

Increased market share (up 110 bps since Jun 11, up 70 bps YTD Mar 12)[1] through growth in the share and size of customers and enhanced share of wallet
Customer acquisition up 3% (Feb 12 YTD) across all segments – Small Business („SME‟), Regional Commercial and Business
Banking
Lending up 3% HOH reflecting investment in training and productivity initiatives
Deposit growth of 3% HOH.

Net loans & advances (incl. acceptances) by business

==> picture [262 x 121] intentionally omitted <==

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

Business Banking
33%
Regional Commercial
Banking
30%
Small Business
Banking
28%
9% Esanda
----- End of picture text -----

Net loans and advances (incl. acceptances) & Customer deposits

==> picture [302 x 133] intentionally omitted <==

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

$ %
49.3
50 45.7 46.2 47.8 140
40.8
39.7
40 37.2
33.7
130
30
20
120
10
0 110
Sep 10 Mar 11 Sep 11 Mar 12
----- End of picture text -----

Net loans and advances incl. acceptances (LHS) Customer deposits (LHS) Loan to deposit ratio (RHS)

DBM Business Financial Services Monitor. 12-month rolling average Commercial includes most small and medium sized businesses Base: Jun11 n=17,305; Sep11 n=17,296 and Mar12 n=17,128

Commercial – Super regional advantage

Our super regional platform and core capabilities are driving cross-sell and new-to-bank acquisition

Super regional platform

ANZ is the only bank able to connect Commercial customers across Asia, New Zealand and Australia via a network that spans:
1,200+ branches
~270 business centres
~3,000 Commercial frontline staff

Cross-border referrals

==> picture [250 x 143] intentionally omitted <==

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

600 43% increase
400
200
0
1H11 2H11 1H12
----- End of picture text -----

The value of this connectivity is evidenced by a 43% growth in cross-border referrals PCP.

ANZ strengths

To further enhance our super regional offering we‟re leveraging ANZ‟s market leading capabilities in:

ANZ RMB Capability:

Make and receive RMB trade & services payments to your Chinese counterparts
Integrated RMB online capability - FX Online & ANZ Transactive
Trade finance: Best Trade Finance in Australasia (2009, 2010, 2011)[1]
Markets: „Best FX Product Corporate & Business Bank‟[2]
Cash Management: ANZ Transactive cross-border cash capability.
Offshore RMB Foreign Currency Account (Australia, New Zealand, Hong Kong) solutions
Trade Finance solutions (Letter of credit / Trade finance, etc.) available to support RMB denominated trade transactions

==> picture [117 x 42] intentionally omitted <==

Trade Finance Magazine – Awards of Excellence. 2. 2011 Australian Banking & Finance Corporate and Business Bank Award.

Commercial - Small Business banking

Leveraging ANZ distribution networks and enhancing customer experience

Acquiring new-to-Commercial customers by tapping into the OnePath and Esanda distribution networks, Retail‟s affluent segment, ANZ mobile lenders and through the in-branch A-Z Review campaign
Enhancing our innovation offering via the Small Business HUB, LinkedIN, the ANZInnovyzStart program, Small Business Sales Trends, our partnership with Xero and our “Business Insights” program
Inception of the Commercial Sales and Services Centre as a support contact point for Commercial Banking customers and frontline staff
A greater focus on cross sell, margin management and customer retention.

Outcome

Net Customer growth up 4% Mar 12 YTD
Market Share continues to grow (Mar 12 YTD +1% pts[1] )
Deposits up 5% HOH and 17% PCP
Lending up 6% HOH and 13% PCP.
DBM Business Financial Services Monitor. 12-month rolling average Small Business Banking includes most small businesses in metro areas excl Agribusinesses
Base: Sep11 n=8,306 and Mar12 n=8,811

1H12 lending book composition by key segments

==> picture [270 x 140] intentionally omitted <==

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

21% Retail
Construction
Business Services
13%
21% Manufacturing
Property Services
11% Wholesale Trade
5%
Hospitality
6% 9% Transport & Storage
7% 7% Other
----- End of picture text -----

==> picture [299 x 241] intentionally omitted <==

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

Net loans and advances (incl.
$b acceptances) & Customer deposits %
18 30
15.8
15.1
16
14 13.5 29
12.1
12
28
10
8
27
6 3.9 4.2 4.4
3.3
4 26
2
0 25
Sep 10 Mar 11 Sep 11 Mar 12
Net loans and advances incl. acceptances (LHS)
Customer deposits (LHS)
Loan to deposit ratio (RHS)
----- End of picture text -----

Commercial - Business banking

Leverage capability and create capacity to drive growth and control costs

Growing the balance sheet by focusing on winning newto-bank Trading companies with higher, more complex funding requirements
Prospecting for larger deals alongside Corporate Banking to drive additional flows with same input
Creating capacity to grow without additional costs through sales productivity
Leveraging super regional connectivity and offering new services to customers (e.g. trade finance in RMB)
Enhanced frontline skills and capabilities via sales leadership and coaching initiatives.

Outcome

Lending up 4% HOH (+9% PCP), with 50% of 1H12 new-to-bank deal sizes with higher, more sophisticated trading companies
Deposits flat HOH (+4% PCP), impacted by pricing competition
New-to-bank approvals up 14.5% HOH (26% PCP)
Market share continues to improve from 11.7% in Mar 11 to 13.3% in Mar 12[1,3]
Customer Satisfaction for the same period up from 6.8 to 7.3.[2,3]
DBM Business Financial Services Monitor. 12-month rolling average Base: Mar11 n=3,007 and Mar12 n=2,718
DBM Business Financial Services Monitor, 6-month rolling average score using an 11-pt scale where 0 is Extremely Dissatisfied and 10 is Extremely Satisfied Base: Mar11 n=1,872 and Mar12 n=1,336
Business Banking includes most medium sized businesses in metro areas excl Agribusinesses

1H12 lending book composition by key segments

==> picture [252 x 143] intentionally omitted <==

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

Property
34%
Retail
10%
3% Manufacturing
5%
Wholesale Trade
9% 14%
Business Services
9%
9%
9% Construction
----- End of picture text -----

==> picture [303 x 242] intentionally omitted <==

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

Net loans and advances (incl.
acceptances) & Customer deposits
$b %
18 125
16.3
15.6
16
15.0
14.7 120
13.6 13.5
14
13.0
11.8 115
12
10 110
Sep 10 Mar 11 Sep 11 Mar 12
Net loans and advances incl. acceptances (LHS)
Customer deposits (LHS)
Loan to deposit ratio (RHS)
----- End of picture text -----

Commercial - Regional Commercial banking

Capitalising on opportunities for growth and supporting customers in need

Regional Commercial[1]

Leveraging bank-wide sector expertise in Resources and Infrastructure to identify and capture Commercial opportunities within major projects, e.g. contractors and suppliers
Capitalising on the opportunities to connect Regional Commercial customers across the value chain to our Asia Pacific Network.

Agribusiness[2]

Leveraging bank-wide Agribusiness expertise to capture Farmgate business
Continued investment in Agribusiness capability to further grow existing market share
Strategic positioning of Agribusiness segment within Super Regional Strategy given rising food demand in key Asian destination markets.

Outcome

1H12 NPAT grew 5% HOH

==> picture [10 x 13] intentionally omitted <==

Lending FUM stable amidst seasonal harvest pay-downs Continued solid deposit growth HOH 5% and 10% PCP

==> picture [10 x 13] intentionally omitted <==

Improved lending to deposits mix from 126% in 2H11 to 120% at 1H12
Market share continues to improve from 15.0% in Mar 11 to 16.2% in Mar 12.[3]
Non-metro Small Business and Business Banking customers.
Farmgate customers
DBM Business Financial Services Monitor. 12-month rolling average Regional Commercial Banking includes most small and medium sized non-metro businesses and Agribusinesses

1H12 lending book composition by key segments

==> picture [297 x 380] intentionally omitted <==

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

Agriculture
Retail
14% 54%
Property Services
4% Construction
5%
Hospitality
7%
Manufacturing
7%
9% Other
Net loans and advances (incl.
acceptances) & Customer deposits
$ %
20 150
15 13.5 13.6 13.6 140
13.1
10.3 10.8 11.4 130
9.2
10
120
5
110
0 100
Sep 10 Mar 11 Sep 11 Mar 12
Net loans and advances incl. acceptances (LHS)
Customer deposits (LHS)
Loan to deposit ratio (RHS)
----- End of picture text -----

Base: Mar11 n=6,987; Mar12 n=5,599

Commercial - Esanda

Market leader in vehicle finance and asset finance

Largest provider of auto finance to the automotive dealer network and market leading Commercial Broker in asset finance in Australia
Strong new business volumes and improved margin management despite the softer car market, reflecting good market share gains:
New business writings[1] up 9.6% HOH and 18.9% PCP
Dealer satisfaction up from 7.2 to 7.8
Solid momentum in Internet and phone based sales (sales up 23% HOH and PCP)
Capability build out of Bangalore and Manilla processing hubs have improved speed to market on decisioning and loan settlements
Significant source of new-to-bank customers:
~ 4,500 new business customers introduced to the ANZ Group from Esanda cross sell initiatives in the past 18 months
Cross sell to Broker asset finance clients via premium partner proposition remains the market leading strategy.

Outcome

Strong Revenue growth of +4% HOH and +10% PCP
Positive Lending momentum up 3% HOH and 4% PCP.

Esanda Group lending composition by assets (Mar 12)

==> picture [273 x 147] intentionally omitted <==

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

13.0%
Vehicles
Equipment Finance
87.0%
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Net loans and advances by lines of business (Mar 12)

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$b 14.3 14.3 14.5 15.0
2.2
2.0 2.0 2.1
4.2 4.1 4.1 4.2
8.1 8.2 8.2 8.6
Sep 10 Mar 11 Sep 11 Mar 12
ANZ Asset Finance ANZ Commercial Broker Auto Finance
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Writings covering Auto Finance, Broker and Asset Finance

Wealth (OnePath superannuation, Investments & Insurance and ANZ Private)

Business Performance[1]

NPAT down 9% reflecting higher funding costs, reduced trading volumes in E*Trade and increased operating expenses
Net funds management and insurance income up 4% driven by trends in the individual in-force book and realisation of project benefits from investment management and custodial arrangements, partially offset by adverse claims and life lapse rate experience
Expense growth +5% reflects continued investment in growth initiatives as well as seasonality
FUM up 4%. Volumes negatively impacted by adverse equity investor market sentiment
Annual in-force premiums down 3% (up 4% PCP)
Improved ANZ channels penetration
Launched simple super and life insurance product on anz.com and simple insurance offerings via the branch network, which are gaining sales momentum
Improved productivity and sales momentum in ANZFP, sales revenue up 12% to end February (FYTD)
Well prepared for new regulatory environment - New 'Fee For Service' adviser offering exceeds $1bn FUM pre FoFA
Strong retail life insurance sales (#1 in IFA sales for 8 consecutive quarters), growth in individual risk in-force ahead of system
Strengthened investment management capability and platform functionality (e.g. ANZ term deposits on platform nearing $1bn since Sep 11 launch).

Funds under management (end of period)

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$b
46
44
42
40
38
36
Mar 11 Sep 11 Mar 12
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Individual Risk In-force[2]

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

(Index Dec 08 = 100)
(%)
150
ANZ
140 8.1%
130
Market
120
110
100
Dec 08 Dec 09 Dec 10 Dec 11
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All comparisons HOH unless otherwise indicated 2. Source: Plan for Life

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Divisional Performance Asia Pacific, Europe & America (APEA) Division

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APEA an increasing contributor to group revenue through continued execution of Super Regional strategy

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APEA Revenue
Pro Forma (USDm) 20%
1,820
18% 1,656
1,596
1,380
1,306
18% CAGR
1,442
1,275 1,295
1,068
1,029
1H10 2H10 1H11 2H11 1H12
% APEA Contribution to Group Revenue [1]
Australia & NZ revenue derived from
APEA managed clients
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APEA contributed 20%[1] of Group revenue in 1H12…

NPAT growth of 21% HoH (11% PCP)
Jaws were +5% with income up 11% and expenses increasing 6%
Customer deposits grew by 17% (USD11b) and lending increased by 12% (USD5b).

… as we continue to execute on our long term Superregional strategy …

Connectivity is a key competitive differentiator for ANZ
4% of Group revenue was booked in Australia and New Zealand but derived from APEA
46% CAGR growth in Intra-APEA cross border income since 1H10
Balance sheet strength – improving deposit base and credit quality
Prioritised investment, with USD54 million increased spend largely focused on technology and infrastructure

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APEA NPAT
Pro Forma (USDm)
432
388
358
337
280
24% CAGR
1H10 2H10 1H11 2H11 1H12
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Growth and competiveness in our target segments
Recognised as a Top 5 corporate bank in Asia by the Greenwich Large Corporate Banking Survey 2012
Active customers in Asia Institutional grew by 9% HOH
Awards for retail deposit offering in Indonesia[2] and Hong Kong[3]

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Includes an additional proportion of Group revenue reported in Australia and New Zealand from APEA managed customers. 2. ANZ Super Savings Account won the “Service to Care Award 2012” 3. ANZ Hong Kong was named the Best Deposits Service Bank at the 12th „Capital‟ Outstanding Enterprise Awards 60

APEA performance a result of strong income momentum and effective cost management

NPAT movement – 1H12 v 2H11

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

USDm 35
88
21
11 432
63
49
358 50
45
Up 21%
2H11 Net Other Markets Markets Partnerships Expenses Provisions Tax and 1H12
Interest Income Trading Sales OEI
Ex Markets &
Partnerships
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NPAT movement – 1H12 v 1H11

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

USDm 44
35
24
105 40 432
388
113 6 5
Up 11%
1H11 Net Other Markets Markets Partnerships Expenses Provisions Tax and 1H12
Interest Income Trading Sales OEI
Ex Markets &
Partnerships
61
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Revenue growth is driven by focus on our priority geographies, customer segments and products

	Geographies	Geographies	Customer Segments	Products
Strategic Priorities	Franchise Markets		Institutional	Institutional & Commercial
	• Greater China • Singapore • Greater Mekong • Indonesia • India • The Pacific		• Natural Resources • Agriculture • Infrastructure • Financial Institutions • Multinationals	• Cash Management • Trade • Foreign Exchange • Global Capital Markets
	Network Markets		Commercial
	• Europe • America		Retail, Wealth & Private Bank	Retail & Private Bank
			• Affluent & Emerging Affluent • High Net Worth	• Investments & Insurance • Deposits
Revenue Growth	Greater China India Indonesia Greater Mekong Singapore	16% 27% 7% 19% 28% 24% 71% 17% 13% 5%	35% 31% 25% 24% 5% 59% 51% 43% 41% 3% Commercial Natural Resources Financial Institutions Agriculture Affluent & Emerging Affluent 1H12 v 2H11 1H12 v 1H11	37% 20% 14% 12% 6% 63% 47% 44% 16% 14% Trade Foreign Exchange Sales Cash Management Retail Deposits Investments & Insurance







Achievements	• Singapore, Hong Kong, Indonesia, PNG and Europe and America all delivered >$100 million total effort revenue1 • Continued strong performance in Greater Mekong		• Commercial growth focused on four priority countries • Continued strong growth in priority Institutional segments based on deepening customer insights	• Continued strong growth in Trade • Cash management platform launched in Singapore and Hong Kong and on track for further regional rollout • Continued growth in retail deposit base

Total effort revenue includes revenue „thrown‟ into other geographies

We utilise strong expense discipline in order to fund deployment of revenue generating headcount

A focus on reducing back-office costs while continuing to invest in revenue-generating capabilities…

APEA FTE (including contract employees) Movement Sep 2010 to Mar 2012

~12,100

~11,900

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Revenue & Expense Growth
Pro Forma USD HOH
Income Growth Expense Growth
2H11 Ex-markets
20%
7% Revenue
18%
3% Expenses
14%
13%
12%
11%
9%
6%
5%
2%
1H10 2H10 1H11 2H11 1H12
Support Retail Institutional Regional Hub Mar 12
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…driving real impact on the performance of business

1H12 Revenue / Expense jaws 5%
Improving Cost to Income 59% 1H12 (62% 2H11)
Strong HOH revenue growth in areas of investment;
Foreign Exchange sales Up 20%
Cash Management Up 14%
Trade Up 37%
Commercial segment Up 35%

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In addition, we are continuing to optimise our footprint in order to fund growth investments

Continuing to rationalise sub-scale businesses…

Sold Wing, our Cambodia mobile payments platform, to focus on our ANZ Royal joint venture in the country
Sold our stake in Vietnam‟s
Sacombank, to focus on our own business in the country

… and optimise footprint to serve customers most efficiently…

Rationalising our branch network in Taiwan to best serve affluent and emerging affluent customers
Rationalising our branch network in the Pacific (Solomon Islands, Samoa, Tonga & Vanuatu)
Rationalised Regional offices in Hong Kong & Singapore and premises in Taiwan and Indonesia

…in order to fund additional growth investment

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USD54m
4%
14%
6%
76%
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Additional investment 1H12[1]

Branding

Launched global brand campaign in Asia

Capabilities

Build out of Commercial footprint
New Mongkok branch in Hong Kong
New Singapore and Hong Kong head offices

Compliance

Anti-Money Laundering Program
• Risk and Security Program

Systems

ANZ Transactive Asia
• Asian Core Engine
Global Markets platform
Global Cards Platform
Singapore Data Centre
Incremental 1H12 v 2H11 investment spend, inclusive of capitalised project expenditure associated with ANZ Transactive Asia and Asian Core Engine

1H12

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Connectivity is a key differentiator for ANZ, driving cross-border revenue growth across the network

Intra APEA connectivity becoming increasingly important

ANZ‟s APEA business intra region cross-border revenues have achieved CAGR of 46% from 1H10 to 1H12 (Up 15% HOH / 43% PCP)
Trade transaction volume increased 34% PCP
Offshore customers represent 33% of our Retail Banking customer base in Singapore and Hong Kong
532 Asian Institutional clients have an active relationship with ANZ in 3 or more jurisdictions

APEA Cross-Border Income (USDm)

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22% CAGR
493
461
401
115 Intra-APEA
100
331
80
53
361 378 Australia/NZ
321
278
1H10 1H11 2H11 1H12
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Continue to develop connectivity in key markets of Singapore, Hong Kong, India, China and Indonesia

Institutional

Ramping up Europe & America „throw‟ into Asian network off strong base of „throw‟ into Australia and New Zealand
Focus on simplifying on-boarding processes across borders to ensure seamless customer interactions across the network

Retail & Wealth

Initiatives implemented to capture Retail connectivity in the region have resulted in a 5 fold increase in cross-border referrals HoH

Partnerships

Partners leverage ANZ‟s core capabilities in Australia and other markets for customer referrals and connectivity
e.g. SRCB and AMMB customers moving to Australia can open ANZ Australia accounts prior to arriving in Australia

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Focus on Asia has grown APEA‟s contribution to 20% of ANZ Group revenue, on our way to 25-30% by 2017

APEA Contribution to Group Revenue

Driving 25 to 30% of Group earnings by 2017

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By Segment By Geography
20% 20%
Australia & NZ revenue
4% derived from APEA 4%
managed customers [1]
9%
8%
8% 11%
Asia
Institutional 3%
4%
& Commercial
4%
Asia Retail 1% Europe & America 2% 2%
Pacific Retail 2% 2%
Pacific 3% 3%
Partnerships & Other 1% 1%
FY07 1H12 FY07 1H12 FY17
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Australia & NZ revenue derived from APEA not available for FY07

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APEA continues to grow its deposit base, with strong credit li in the loan book qua ty

Significant volume growth
Retail Asia deposits up 20% HOH

APEA Institutional Risk Grade profile by Exposure at Default

31% of APEA lending book represents funded trade lines. These have an average tenor of 3 months

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• Self funding, Loan to Deposit ratio of 58%
Customer Deposits Net Loans & Advances
USDb (incl. acceptances)
80
41% CAGR 74
70 71%
63 75% 76%
60 AAA-BBB
55
50 50% CAGR BBB-
42
37 38 BB+~BB-
40
32
BB-
30
>BB-
18 16%
20
16%
15%
10
9%
6% 6%
2%2% 2%1% 2% 1%
0
Mar 10 Mar 11 Sep 11 Mar 12 Mar 10 Mar 11 Sep 11 Mar 12 Mar 11 Sep 11 Mar 12
Retail Deposits Retail Lending
Transaction Banking Deposits Funded Trade Lines
Other Institutional Deposits Other Institutional Lending
67
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APEA Institutional revenue up 26% on continued client acquisition and deepening wallet share

Revenue up 26% on prior comparative period

Growth across all products and sectors, in particular Trade, Cash Management and Foreign Exchange

Continuing momentum on client acquisition

ANZ recognised as a top 5 Corporate Bank in Asia. Five years ago, ANZ was outside the Top 20[1]
ANZ market penetration has grown to 28% in 2011[1]
20% growth in client numbers on 1H11 – focus on multinationals, financial institutions and local corporates
Deepening industry specialisation model to improve customer insight

Deepening wallet share as product capability grows

Increasing cross-sell across products and geographies to improve revenue quality and diversification. Top 50 client revenue has grown 15% pcp, whilst customer concentration reduced
Delivery of regional transaction banking cash platform remains on track
Global Markets product expansion and platform development
Ongoing investment in priority products and markets

Improving efficiency and productivity

CTI of 44% improved 1.0% on 1H11
Improving customer onboarding processes
Hubbing key processes an ongoing focus on efficiency in all parts of the business
Greenwich Large Corporate Banking Survey, 2012

APEA Institutional Client Revenue Pro Forma[2]

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

Markets Sales Other Client Revenue
USDm
30% CAGR
800 662
564
526
600
414
391
400
200
0
1H10 2H10 1H11 2H11 1H12
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Asia Institutional Clients

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

2,966
2,709
2,468
2,134
1,857
Mar 10 Sep 10 Mar 11 Sep 11 Mar 12
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Includes APEA Commercial revenue

We continue to build out the Commercial segment utilisin Institutional roduct ca abilities g p p

Commercial segment revenues up 59% PCP as customer franchise strengthens

Country build out

Focused build-out in Hong Kong, Singapore, Taiwan and Indonesia
Hired experienced Commercial Relationship Managers and right support staff to increase bench strength
Re-organised regional and country teams to align to target segments

Commercial Client revenue growing[1]

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Market Sales Other Client Revenue
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----- Start of picture text -----

USDm
65
+43% CAGR
48 20
41
32 34 11
5 10
5
45
37
27 29 31
1H10 2H10 1H11 2H11 1H12
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Growing client base and deepening relationships

Commercial clients grew 35% PCP

Increase cross-sell, particularly of trade and markets products

Number of products per customer increased from 1.69 to 2.03 in 1H12 across the portfolio
Trade cross-sell to markets clients increased 14% in 1H12
Pro Forma basis adjusted for RBS acquisition
Includes retail transfer in Vietnam Aug 11

Client numbers continue to grow Commercial Asia Client Numbers[2]

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

12,290 12,851
9,287 9,485
Sep 10 Mar 11 Sep 11 Mar 12
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APEA Retail – Continued focus on growing affluent and emerging affluent while repositioning the portfolio

Delivering growth amidst portfolio reshaping

Revenue up 4% HoH

Underlying growth in core customers through period of portfolio repositioning

Fee income represents 38% of total revenue
Investment & Insurance focus delivered 24% of total revenue

Robust customer acquisition and cross sell activity

Continued to grow Affluent banking customer base – acquisitions more than doubled compared to 1H11
Product holdings per customer for affluent segment average 5.6

Portfolio repositioning

De-risked credit card & unsecured loans in Taiwan, Indonesia and Hong Kong
Out-segment portfolio balance declined by A$100m over the last 18 months, resulting in improved credit quality

Strong Balance Sheet Growth contributing funds to the overall business

Continue to grow our funding base with 16% deposit growth overall HoH (24% growth in Asia)

Investments continue to support further growth

Continued investment in people, product, brand and infrastructure
Asia Retail CTI improved by 2% HOH

Asia Retail Customer Movement (millions)[1]

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Up 7% Up 8%
Up 6%
1.68
1.64 1.65
Up 1% Up 2%
A Growing Funding Base
USDb Customer Deposits
20
Net Loans & Advances 17
14
15 13
12
10 8 8
7
6
5
4
5
0
1H10 2H10 1H11 2H11 1H12
Mar 11 Acquired Exited Sep 11 Acquired Exited Mar 12
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Client movement across Deposits, Cards, Mortgages, Personal Loans and Investments & Insurance product categories.

Accounting charges impacted partnership performance which is led b four si nificant contributors y g

Partnerships NPAT 1H12 v 2H11 (USDm)

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

176 35 24 165 10
141
125
32
18
2H11 Reported Accounting & 1 2H11 Adjusted Earnings growth 1H12 Adjusted Gain on SSI impairment Accounting 1 1H12 Reported
tax adjustments Sacombank sale adjustments
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Four partnerships delivering largest contribution…

AMMB, BoT, Panin and SRCB all delivered more than USD 25 million revenue in 1H12

Adjusted NPAT contribution by Partnership

Gain on sale of Sacombank stake of USD 10 million
Partnerships also deliver referral and other revenue across the ANZ network

…impacted by accounting adjustments and SSI impairment

USD35 million of positive accounting impacts in 2H11 and negative USD18 million accounting impacts in 1H12
1H12 SSI impairment charge of USD 32 million
Earnings recognised by ANZ differ from published results of partnerships due to application of IFRS, Group accounting policies and acquisition adjustments.

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USDm 2H11 1H12
53
44 44
38 39
34
25
23
AMMB BoT SRCB Panin
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Divisional Performance Institutional Division

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Institutional is growing NPAT by diversifying into nonlending revenue streams

Diversifying revenue streams to reduce reliance on lending

Trade & Supply Chain revenue up 22%[1] HOH
Cash management revenue up 9%
Markets sales revenue up 16% HOH
Transaction banking represented 27% of Institutional revenue (23% 1H11)

Increasing geographic diversification

APEA 29% of Institutional revenue 1H12 (20% FY10, 25% FY11)

Focus on sectors with existing strength and potential for ANZ to differentiate

Natural Resources
Revenue up 20% HOH, up 31% PCP
Financial Institutions Revenue up 15% HOH, up 26% PCP
Infrastructure

Revenue down 15% HOH, up 14% PCP

Agriculture Revenue down 2% HOH, down 3% PCP

Improving cost efficiency

Positive JAWS (Operating Income growth - Expense growth) +13% HOH

Improving risk profile of business

Weighted average credit scores within the loan portfolio have continued to improve with 84% of the book now rated higher than BBB-
Net impaired assets down 9%

Institutional Revenue Mix ($m)

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By Product By Geography
$m
3,000 2,769 2,769
2,612 2,612
2,430 2,430
2,000
1,000
0
1H10 1H11 1H12 1H10 1H11 1H12
Transaction Banking Markets Sales APEA Australia NZ
Markets Trading Global Loans
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Institutional Division Pro Forma NPAT ($m)

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

1,123
1,081
967 915
869
1H10 2H10 1H11 2H11 1H12
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Excludes non-trade related guarantees

Institutional NPAT up 23% HoH as a result of improved Markets revenue and effective ex ense control p

Pro forma NPAT movement – 1H12 v 2H11

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

JAWS +13%
$m
82
222 1,123
34
915 71 4 73 64
Up 23%
2H11 Net Other Markets Markets Sales Expenses Provisons Tax and 1H12
Interest Income Trading OEI
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Pro forma NPAT movement – 1H12 v 1H11

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

JAWS -3%
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----- Start of picture text -----

$m 44 98
83
1,123
1,081
69 81 31 2
Up 4%
1H11 Net Other Markets Markets Sales Expenses Provisons Tax and 1H12
Interest Income Trading OEI
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Focus on efficiency enabling Institutional to invest in tar eted front-line areas deliverin revenue rowth g , g g

Institutional FTE including contractors

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

~6,000
~5,900 ~5,900
FY10 Markets Transaction Global Relationship Enablement FY11 Markets Transaction Global Relationship Enablement Mar 12
banking loans banking banking loans banking
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Growing revenue in areas of investment…

…Delivering improved JAWS

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

Revenue Growth Expense Growth
25% 16%
Revenue Growth
19% 12% Ex Trading &
16% 12%
Balance Sheet
8%
5%
4%
3% 7% 3%
3%
Global Transaction
Markets Sales Banking
-9%
1H12 v 2H11 1H12 v 1H11
2H10 1H11 2H11 1H12
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Continuing to capture greater share of international flows into Australia and fast rowin intra Asian trade g g

Institutional Cross Border Income

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Thrown $m
APEA Australia New Zealand Institutional Income
800
1H12
„Thrown‟ – cross border income thrown by geography
600
400
Domestic
Cross
200 Booked
Border
19% 81%
0
-200
-400
-600
„Caught‟ – cross border income caught by geography
-800
Caught $m 1H10 2H10 1H11 2H11 1H12
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Continued focus on APEA, target customer segments and roducts that drive revenue rowth p g

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Geographies Customer Segments Products
APEA growth driving geographic Continued strong performance in Reducing reliance on balance sheet
diversification Financial Institutions and Natural lending revenues and trading
Resources. Agriculture impacted by volatility
portfolio repositioning and Infrastructure
by revenue from larger deals booked
2H11
• APEA revenues grew 29% HOH and now • FIG Asia now accounts for 30% of our • Markets sales up 16%, with FX sales
represent 29% of Institutional revenue global FIG revenues, up from 25% in revenues now representing 51% of
total Global Markets revenue
• Australia revenue up 13% HOH 1H10, driven mainly by a deepening of our
recovering from a particularly franchise across the region • ANZ Transactive driving customer
challenging market conditions in the • Agriculture revenue growth of -2% HOH acquisition (up 5%) and improved
prior half largely driven by repositioning of Agri cross-sell
• New Zealand revenue up 1% HOH portfolio • TSC sales capability strengthened
• Infrastructure revenue growth of -15% across Asia with revenue up 45% and
now representing 58% of TSC global
HOH the result of larger one-off deals in
revenue [1]
2H11
20%
Natural Resources 45%
29% 31% Global Markets
APEA 3%
18%
24% Financial Institutions
26% 22%
13% -2% Trade & Supply Chain1 47%
Australia Agriculture -3%
-1% 9%
-15% Cash Management
Infrastructure 19%
14%
1%
New Zealand
9% -1%
5% Global Diversified Global Loans
2%
-2%
1H12 v 2H11 1H12 v 1H11 1H12 v 2H11 1H12 v 1H11 1H12 v 2H11 1H12 v 1H11
Key Achievements
Revenue Growth
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Excludes non-trade related guarantees

Priority Customer Segments – capture trade flows to/from Asia while maintaining domestic position

Natural Resources Infrastructure Agriculture

Our focus is on capturing Australia/NZ - Asia/Pacific trade flows and remaining the lead bank to sector in Australia
Built an experienced regional leadership team
APEA booked revenue up 32% HOH and now represents 52% of global segment revenue
Dominant infrastructure specialist in Australia and New Zealand with focus on supporting customers in the Asia Pacific region
APEA booked revenue now represents 18% of global segment revenue
A primary focus on Agri customers linked into trade across the Asia Pacific region
An emphasis on providing markets, working capital and trade and supply chain solutions
A focus on positioning Australia / New Zealand franchise towards growing Asia Pacific trade linkages
A growing Asian franchise with APEA booked revenue up 24% HOH

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

350 $m Clients 800 350 $m Clients 800 350 $m Clients 800
300 300 300
600 600 600
250 250 250
200 200 200
400 400 400
150 150 150
100 100 100
200 200 200
50 50 50
- - - - - -
Revenue (LHS) Clients (RHS) Revenue (LHS) Clients (RHS) Revenue (LHS) Clients (RHS)
1H10 2H10 1H11 2H11 1H12 1H10 2H10 1H11 2H11 1H12 1H10 2H10 1H11 2H11 1H12
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Financial Institutions – building Super Regional latform to ca ture rowin investor demand p p g g

We are building markets and transactional banking capabilities to capture investor shift to diversify investment portfolios

A focus on continued growth

Build out Transaction Banking and GCM business
Banks based on Clearing leadership position
Cautiously expand Trade FI business in Asia
Expand customer base, with a focus on Asian insurers

Insurers

Focus on building share of Transaction Banking wallet

A targeted strategy to achieve strong growth

Leverage new FX and Transactive platforms to deepen relevance with global Real Money Funds
Funds and Australian Super Funds
• Selective lending to quality names • Grow base globally, taking advantage of sovereign
Public appetite for super regional assets Sector • Target deposits, FX, Fixed Income & Commodity sales

Greater Transaction Banking & Markets contribution Financial Institutions Operating income by Product

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

26% 24% 20%
Other
11%
12% 12%
Global Loans
29% 33%
32%
Global Markets
30% 35% 36% Transaction Banking
1H10 1H11 1H12
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----- Start of picture text -----

Revenue mix shifting towards Asia
Financial Institutions
Operating income by Geography
9% 8% 7%
New Zealand
44% 43% 42%
Australia
47% 49% 51%
APEA
1H10 1H11 1H12
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Transaction Banking – delivering superior client connectivit central to Su er Re ional strate y p g gy

Payments & Cash Management

Continuing to deliver enhanced connectivity to clients

Transactive full functionality now embedded in Australia, New Zealand, Singapore, Hong Kong & the Pacific with remaining Asian markets on line by the end of 2012
Introducing onshore and offshore CNY payment and account capabilities enabling clients to transact in RMB
CashActive now on-line delivering web based liquidity solutions

Payments & Cash Management Average Deposit Volumes

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

80 $m
60
40
1H10 2H10 1H11 2H11 1H12
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Trade & Supply Chain

Capturing growing regional trade flows central to Super Regional strategy

TSC delivered $231m revenue[1] , with 47% growth PCP and Asia growing at 69% PCP
Targeted investment in Asia is delivering strong growth – APEA TSC[1] revenue growth 35% HOH
ANZ built further on its already market leading positions in Australia and New Zealand – ANZ is now the lead trade bank for over 28% of „Institutional‟ customers in Australia[2]
A regional trade network of over 500 trade specialists, utilising a common platform and dedicated processing „hubs‟

Trade & Supply Chain Total Limits and Monthly Transaction volumes

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$b Funded Limits „000‟s
Unfunded Limits
50 600.0
Transactions (RHS)
500.0
40
400.0
30
300.0
20
200.0
10
100.0
0 0.0
1H10 2H10 1H11 2H11 1H12
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Excludes non-trade related guarantees. 2. „East & Partners‟ Australian Trade Finance Markets report, 2012.

Global Markets - continued focus on diversification and rowin client driven revenue g g

Since 2010, we have been executing on our strategy to diversify our business increasing our product offering and global footprint

Our strategy has delivered revenue growth of 45% over 2H11 and 3% over 1H11

We have focused on growing non-trading revenue by differentiating our sources of revenue…

Sales has performed strongly (up 16% from 2H11) across all geographies and products
APEA region has grown by 42% over 2H11 reflecting the our investment in regional capabilities
FX business benefited from its 2011 expansion with revenue up 14% from 2H11
Fixed Income revenue grew by 91%, rebounding from the challenging trading conditions in 2H11

…and have remained resilient despite difficult market conditions

Trading and Balance Sheet revenues have improved following the difficult macroeconomic conditions experienced in 2H11
Australian revenues were up 67% from 2H11 benefiting from the rebound in the domestic Fixed Income business

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

Global Markets Revenue
pro forma FX adjusted
800 $m
Sales Trading & Balance Sheet
600
400
200
0
1H10 2H10 1H11 2H11 1H12
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Global Markets Revenue by Product

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

8% 12% 9%
10% 8% Other
8%
Global Capital Markets
42%
43%
53%
Fixed Income
37% 41% FX & Commodities
29%
1H10 1H11 1H12
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Global Markets customer sales income at record highs

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

Trading & Balance Sheet Income
Sales Income (FX Adjusted)
(FX Adjusted)
$m $m
Quarterly Sales Income Quarterly Trading & Balance Sheet Income
400 Quarterly Average 2008 400 Quarterly Average 2008
Quarterly Average 2009 Quarterly Average 2009
Quarterly Average 2010 Quarterly Average 2010
Quarterly Average 2011 Quarterly Average 2011
300 300
200 200
100 100
0 0
2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 1Q12
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Global Capital Markets – continue to build distribution ca abilities and stren then market osition p g p

Extended leading position in domestic bond markets

Corporate and frequent issuer bonds league table rankings

No. 1 bond issuer in Australia with 21.7% market share and led on 41% of trades 1Q12
No. 1 bond issuer in New Zealand with 48% market share and led 64% of trades 1Q12

Deepened our presence in Asia

Improved our position in Asian Syndicated Loans from 10[th] in 2011 to 7[th] in 1Q12
Significant increase in Dim Sum (China offshore) Bond league tables from 29[th] in 2011 to 8[th ] in 1Q12, doubling full year volume

Asia-Pacific (ex-Japan) Markets

Dramatic progress up the Asia-Pacific (ex-Japan) Bond league tables from 20[th] in 2009 to 4[th] in 1Q12
No.1 Mandated Lead Arranger in Asia-Pacific (exJapan) Syndicated Loans
Syndicated Loan market volumes increased by 27% to US$342bn (largest ever volumes) in 2011. ANZ increased MLA market share to 8.7% from 6.0%
Bond market volumes have significantly increased by 52% on an annualised basis in 1Q12. ANZ increased market share to 3.6% from 2.9%

Category	2011	Q1 2012	Q1 2012	Q1 2012
	Rank	Rank # Deals Amount Arranged
Australia (ex-self led)	1	1	29	AUD5.5b
New Zealand (ex-self led)	1	1	7	NZD0.9b
China offshore (Dim Sum)	29	8	6	CNY2.1b
Asia Pacific ex-Japan	9	4	44	USD9.0b

Source – Bloomberg

Loan syndications mandated arranger league table rankings

Category	2011	Q1 2012	Q1 2012	Q1 2012
	Rank	Rank # Deals Amount Arranged USD
Asia-Pac ex-Japan	1	1	28	$3.0b
Australia	1	2	12	$1.4b
Asia	10	7	9	$1.0b

Source – Thomson Reuters LPC

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Continued lending growth with stable credit quality and mar in contraction g

Institutional Lending Volumes & Net Interest Margin

Institutional Risk Grade Profile by Exposure at Default

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

Australia
APEA
New Zealand
$b
NIM ex-Mkts (RHS)
100 96 3.50%
91
84
90
80 3.00% 62%
71 73 65% 68% 66%
AAA-BBB
70
BBB-
60 2.50%
BB+~BB-
50
BB-
40 2.00%
17% >BB-
30 17%
18%
16%
20 1.50%
11%
11%
10% 10%
10
5%
3% 3% 3%
5% 4% 3% 3%
0 1.00%
Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Mar 10 Mar 11 Sep 11 Mar 12
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Balance Sheet strengthening as LDR improves, with Asia Trade Finance a ke driver of lendin rowth y g g

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

Institutional Lending and Deposits
Net Loans & Advances Customer Deposits
(incl. acceptances)
$4b (5%) Growth HOH $2b (2%) Growth HOH
Loan to Deposit Ratio
85% 78% 79%
$b
120
118
120
99
100 96
91
84
80
60
40
20
0
Mar 11 Sep 11 Mar 12 Mar 11 Sep 11 Mar 12
Australia APEA New Zealand
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Institutional Lending Growth Mar 12 vs Sep 11

$b 95.8 2.8 1.5 91.5 Sep 11 Asia Other Mar 12 Funded Lending Trade

Asia Funded Trade Lines $b

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

14.1
12.6
9.4
Mar 11 Sep 11 Mar 12
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Institutional maintaining strong credit quality as im aired assets decline p

Institutional Total Provision Charge

Institutional Net Impaired Assets

0
50
100
150
200
250
300
350
400
450
500
$m

86
3,561
3,010
2,669
2,189
1,996
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Mar 10
Sep 10
Mar 11
Sep 11
Mar 12
As % GLA
$m
Institutional net impaired assets
% GLA (RHS)
434
310
154
112
185
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
Mar 10
Sep 10
Mar 11
Sep 11
Mar 12
As % GLA
Institutional Provision Charge
% GLA (RHS)
Increase impacted by
a lower level of
recoveries in 1H12

NIM – Institutional Division

Institutional Division Net Interest Margin Movement 1H12 v 2H11

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bps
189.4
Lower mix of free funds and greater
mix of wholesale funding
Impact of strong deposit competition
0.9
4.1 183.5
4.8
3.7 0.2
2.2
Ex-Markets Down 10.0 bps
299.0 289.0
Down 5.9 bps
2H11 Funding & Funding Costs Deposits Assets Other Markets 1H12
Asset Mix
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Recognised as a leading Institutional bank in the Asia Pacific region

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

AWARDS FOR
IFR ASIA AWARDS FX POLL PFI AWARDS
EXCELLENCE
BEST TRADE BANK IN
LOAN HOUSE OF THE YEAR BEST DOMESTIC PROVIDER ASIA PACIFIC INFRASTRUCTURE AUSTRALIA, NEW ZEALAND
OF FX SERVICES IN AUSTRALIA DEAL OF THE YEAR AND VIETNAM
2011 2011 2011 2011
Voted by Corporates and Financial Wiggins Island Coal Export Terminal
Institutions
TRANSACTION BANKING APLMA SYNDICATED
BEST DEAL AND INVESTMENT
AWARDS LOAN AWARDS BANK AWARDS - AUSTRALIA CFO AWARDS
BEST TRANSACTION BANK AUSTRALIA ASIA PACIFIC SYNDICATED LOAN HOUSE OF THE YEAR BEST EQUITY LINKED OFFERING (DEBT) HOUSE OF THE YEARCORPORATE FINANCE
2011 2011
2011 2011
ANZ Convertible Preference Shares III
PFI AWARDS AUSTRALIA AND NEW ZEALAND ACHEIVEMENT AWARDS GREENWICH ASSOCIATES LARGE CORPORATE BANKING SURVEY KANGANEWS AWARDS
AUSTRALIAN DOMESTIC
MIDDLE EAST OIL & GAS TOP 5 CORPORATE BANK IN ASIA PRIMARY AND SECONDARY
DEAL OF THE YEAR BEST DEBT FINANCE HOUSE MARKET HOUSE OF THE YEAR
2011 2011 2012 2011
Barzan Gas Project
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Divisional Performance New Zealand Businesses

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New Zealand Businesses - Simplification & Efficiency

Simplifying the business

Continuing to simplify the management structure

Profit before Provisions NZDm

Progressing with process and product simplification
Moving to one IT system

becoming the bank of choice of New becoming the bank of choice for New ZealandersZealanders

Simplifying our business processes
CANSTAR Best Agribusiness Bank (April 2012) to complement Canstar Cannex Bank of the Year 2011
Awarded the Morningstar Fund Manager of the Year and Morningstar KiwiSaver Manager of the Year

Managing for changed conditions

Cost focus – aiming to be the most efficient bank in New Zealand with lowest CTI
Return focus – profitable growth, improved ROE, margin management
Risk focus – manage to the changed economic settings

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

810
761 772
716
667
1H10 2H10 1H11 2H11 1H12
Cost to Income Ratio
52%
50%
48%
46%
44%
42%
1H10 2H10 1H11 2H11 1H12
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New Zealand Businesses – Financial Performance

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

NPAT movement – 1H12 v 2H11
NZDm
17 515
4 1
33 3
463
Up 11%
2H11 Net Other Expenses Provisons Tax and 1H12
Interest Income OEI
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NPAT movement – 1H12 v 1H11

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

NZDm
10 515
1
41
2 4
469
Up 10%
1H11 Net Other Expenses Provisons Tax and 1H12
Interest Income OEI
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New Zealand Businesses - Balance sheet management

Funding

Funding gap has reduced by $1.9b YTD, largely driven by an increase in customer deposits – at call and savings accounts up 14%

Retail

Mortgages – market growth subdued at +0.9% YTD in part due to the drag created by Earthquake Commission payments
Strong focus on mortgages has meant return to system growth
Credit card balances grew at system
Continued margin management from disciplined approach to deposits pricing and mix

Commercial

Ongoing higher Dairy sector pay-outs driving deleveraging in the Agri sector
Lending volumes up driven by strong growth in Business Banking (5% HOH)
A focus on credit quality has seen a reduction in Commercial and Agri impaired assets of ~4% YTD

0 20 40 60 80 100 Mar 11 Sep 11 Mar 12 Mar 11 Sep 11 Mar 12 NZDb Retail Commercial Wealth Net Loans & Advances (incl. acceptances) Customer Deposits 50.2 51.1 86.8 88.4 1.50% 2.00% 2.50% 3.00% 1H10 2H10 1H11 2H11 1H12 Net Interest Margin 86.6 52.3	0 20 40 60 80 100 Mar 11 Sep 11 Mar 12 Mar 11 Sep 11 Mar 12 NZDb Retail Commercial Wealth Net Loans & Advances (incl. acceptances) Customer Deposits 50.2 51.1 86.8 88.4 1.50% 2.00% 2.50% 3.00% 1H10 2H10 1H11 2H11 1H12 Net Interest Margin 86.6 52.3	0 20 40 60 80 100 Mar 11 Sep 11 Mar 12 Mar 11 Sep 11 Mar 12 NZDb Retail Commercial Wealth Net Loans & Advances (incl. acceptances) Customer Deposits 50.2 51.1 86.8 88.4 1.50% 2.00% 2.50% 3.00% 1H10 2H10 1H11 2H11 1H12 Net Interest Margin 86.6 52.3
88.4	86.8 86.6	50.2 51.1 52.3



Mar 11 Sep 11 Mar 12 Mar 11 Sep 11 Mar 12 Retail Commercial Wealth

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Simplification program central to ANZ becoming New Zealand‟s best bank

STRATEGIC FOCUS

Deliver on our simplification agenda so we are easy to do business with and the most convenient and supportive bank for NZ and New Zealanders

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

NZ Simplification Program
New Zealand‟s best bank
Initiative Progress
Largest network – more
branches, ATMs, local specialists
One regional management
Completed
structure
Simpler internal processes driving
better customer experience
One set of systems In progress
The most efficient bank
One product and process
In progress
Do more for stakeholders suite
Deliver sustainable returns
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Super Regional capabilities provide real differentiation

Leveraging our Super Regional capabilities

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Strong growth in migrant banking customer segment with ~5,000 new customers added through this channel

Australian retail accounts can now be opened from New Zealand within 20 minutes

Customers now have online access to ANZ accounts in India, China and Hong Kong through Transactive Asia

Investing to further strengthen capabilities

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Launched a dual currency investment product for our Wealth & Private Banking customers Asian specialist team now in place within our Commercial & Agri business

Involved customers in workshops to upgrade functionality for ANZ Transactive, our trans-Tasman internet banking platform for Institutional and Commercial customers

Providing leadership on New Zealand‟s growing opportunities with Asia

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Customer workshops are held in Mandarin and Cantonese for migrant Business Banking customers Multi-lingual workshops are held for migrants as part of partnership with Education New Zealand and Office of Ethnic Affairs

Hosted trans-Tasman and China forums for Commercial business owners with plans to expand into Australia or China

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Retail & Wealth - simplifying our business to make bankin easier for customers and staff g

Simplification initiatives undertaken across business

Focus on sales management disciplines – mortgage pipeline management, conversion rates, A-Z customer needs reviews
Simpler credit decision processes, short form applications for home loan top-ups
BERT branch scheduling tool puts more service in branches in the right places, at the right times

Programme already yielding results

Productivity gains from simplification continue to drive flat costs
Share of mortgage registrations at highest level since 2008 and GLA volumes are increasing
5 new branches opened in growth locations and 4 branches co-located for ANZ and NBNZ customers

Wealth position continues to strengthen

ANZ Wealth #1 in the Retail Managed Funds market
Awarded the Morningstar Fund Manager of the Year and Morningstar KiwiSaver[2 ] Manager of the Year
Key focus on bank distribution sales, with 3 core products: KiwiSaver, life insurance, general insurance

Share of Mortgage registrations growing steadily since Sep 2011[1]

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

36%
33%
29.86%
30%
27%
24%
21%
18%
Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12
Share of New Mortgages
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OnePath KiwiSaver FUM

NZDm

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

2,900
2,500
2,100
1,700
1,300
900
500
Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12
----- End of picture text -----

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Source: Terralink
KiwiSaver is NZ‟s primary retirement savings vehicle

Commercial – driving greater segment connectivity to unlock value

Key highlights

Maintained #1 market share in the small business banking sector
Awarded CANSTAR Best Agribusiness Bank

Enhanced customer focus

Strong focus on significant Small Business sector (increased coverage, segment specialisation, A-Z reviews, Small Business workshops) is paying dividends
Investing in New Zealand‟s farming future - $120m Young Farmers start-up package supported by free Future Farmers education
Dairy payout price levels continue to drive agribusiness deleveraging although production levels at record highs

Connecting customers to super-regional network

Connected technology client to Transaction Banking and Markets capabilities across their target NZ, Australian and South-East Asian geographies
Enabled clients to conduct seamless Trans-Tasman banking via Transactive cash management platform
Held China Business Forum for Commercial customers
TNS: Business Finance Monitor Mar 2012

ANZ has a strong market share in small business banking sector[1]

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

33%
23%
19% 18%
4%
ANZ Westpac BNZ ASB Kiwibank
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Dairy payout and production[2]

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

1700 Dairy Payout Price 8
1600
Dairy Production 7
1500
6
1400
1300
5
1200
4
1100
1000 3
Dairy Production ($m kg MS)
Dairy Payout Price ($per kg MS)
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Source: ANZ National, Fonterra

New Zealand Businesses - credit quality

Net impaired assets

Total provision charge

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

NZDm
1.89%
1.63%
1,669
1.49%
1.31% 1.34%
1,442
1,298
1,165
1,153
Mar 10 Sep 10 Mar 11 Sep 11 Mar 12
Net Impaired Assets NIA as % GLA
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----- Start of picture text -----

NZDm
400 351
300
165 119
98
200 102
100
0
-100
1H10 2H10 1H11 2H11 1H12
IP Charge CP Charge
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90+ Days arrears

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

Mortgages
1.20%
Commercial
Rural
0.80%
0.40%
0.00%
2007 2008 2009 2010 2011 2012
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack Treasury

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Strengthened capital position; well diversified funding base

	Strong Capital Position			Diversified Funding Base
	8.0% 8.5% 8.9% Sep 10 Sep 11 Mar 12 Common Equity Tier 1 Ratio Tier 1 Ratio 10.1% 10.9% 11.3%			8% 8% 9% 9% 55% 58% 61% 60% 15% 16% 12% 13% 5% 6% 6% 4% 17% 12% 12% 14% Sep 09 Sep 10 Sep 11 Mar 12 Equity & Hybrid Debt Customer Funding Term Funding >1 year Term Funding <1 year Short Term Funding

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Continued strengthening of capital levels places ANZ in a strong position for upcoming Basel III implementation

Current capital levels are strong (Mar-12)

Well placed to meet Basel III CET1 target under APRA‟s draft capital standards

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

Common Equity Tier 1 Ratio (CET1)
Tier 1 Ratio
Total Capital Ratio
15.3%
14.0% 14.3%
12.6%
11.8% 11.8%
11.3%
9.7%
11.7%
9.8%
8.9%
7.8%
Basel II Basel III Basel III UK FSA
APRA Full
Alignment
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----- Start of picture text -----

Basel III (APRA) Basel III
Capital
2.5% Conservation
Buffer
7.8%
7.3% 7.5%
CET1
4.5%
Minimum
Mar 11 Sep 11 Mar 12 Column1 Jan 16
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100

Solid organic capital generation underpins strong CET1 position

Capital Position (Common Equity Tier 1 Ratio)

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

1.06%
8.92%
8.49% 8.52% (0.37%)
(0.27%) (0.02%)
Portfolio Growth/Mix (26bp) +8.2b
Risk Migration 5bp -2.2b
Portfolio Review 5bp -1.5b
Non-credit RWA (11bp) +3.5b
Net organic up 40bps
Mar-11 Sep-11 NPAT Dividend/DRP RWA movement Other Mar-12 Basel II
(1) (2) (3) (4)
----- End of picture text -----

Underlying NPAT. 2. Includes prior period under-accrual of DRP. 3. Includes impact of movement in Expected Loss versus Eligible Provision shortfall. 4. Includes OnePath Insurance Business‟ capital retention, Asian Banking Associates‟ retained earnings, Non-Core NPAT items, Capitalised Costs and Software, FX, Net Deferred Tax Assets, Pensions, MTM gains on own name included in profit

101

Tier 1 position strengthened through organic capital eneration g

Capital Position (Tier 1 Ratio)

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

1.06%
11.27%
10.94% (0.37%)
10.51% (0.34%) (0.02%)
Portfolio Growth/Mix (33bp ) +8.2b
Risk Migration 7bp -2.2b
Portfolio Review 6bp -1.5b
Non-credit RWA (14bp) +3.5b
Net organic up 33bps
Mar-11 Sep-11 NPAT Dividend/DRP RWA movement Other Mar-12 Basel II
(1) (2) (3) (4)
----- End of picture text -----

Underlying NPAT. 2. Includes prior period under-accrual of DRP. 3. Includes impact of movement in Expected Loss versus Eligible Provision shortfall. 4. Includes OnePath Insurance Business‟ capital retention, Asian Banking Associates‟ retained earnings, NonCore NPAT items, Capitalised Costs and Software, FX, Net Deferred Tax Assets, Pensions, MTM gains on own name included in profit

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102

Reconciliation of ANZ‟s capital position under Basel III

ANZ capital ratios : Basel II to Basel III

	CET1	Tier-1	Total Capital
APRA Mar-12 Basel II	8.9%	11.3%	12.6%
Dividend not provided for (net of DRP)	0.4%	0.4%	0.4%
Investments in ADI and overseas equivalents	-0.4%	-0.4%	0.0%
Investments in ANZ insurance subs including OnePath	-0.4%	-0.4%	0.0%
Expected losses in excess of eligible provisions	-0.1%	-0.1%	0.1%
Other	-0.1%	-0.3%	-0.2%
10% reduction of existing hybrids and sub debt securities	0.0%	-0.2%	-0.4%
Estimated increase in RWA1	-0.5%	-0.6%	-0.7%
APRA Mar-12 Basel III proposed	7.8%	9.7%	11.8%
10% allowance for investments in insurance subs and ADIs	0.8%	0.7%	0.7%
up to 5% allowance for deferred tax asset	0.2%	0.2%	0.2%
other capital items	0.2%	0.3%	0.2%
Mortgage 20% LGD floor and other measures	0.5%	0.6%	0.7%
IRRBB RWA (APRA Pillar 1 approach)	0.3%	0.3%	0.4%
Mar-12 Basel III fully aligned	9.8%	11.8%	14.0%

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Includes credit counterparty but excludes any Basel III liquidity changes.

103

ANZ has a well diversified funding profile with an increasin wei htin to customer fundin g g g g

Offshore short-term Commercial Paper makes up just 3% of total Group funding

Strong Funding Composition

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

Short Term Wholesale Customer Funding Group funding
Funding
Term Debt < 1 year Residual Shareholders equity & Hybrid Gross Interbank, Other
Maturity debt 3%
Term Debt > 1 year Residual 2%
APEA CDs
Maturity
14% 3% Equity/
Hybrids Offshore short-term
8% Commercial Paper
6%
12% 12% 14% Domestic CDs
17%
22%
6% 6% 4%
5%
7% 16% 12% 13% Well diversified term wholesale
15% funding portfolio
14%
Offshore Private
3%
Placements
1%
61% 60% Japan (¥)
55% 58% 3%
50%
17% UK & Europe (€,£,CHF)
4%
North America
(USD, CAD)
7% 8% 8% 9% 9% 6%
Domestic (AUD, NZD)
Sep 08 Sep 09 Sep 10 Sep 11 Mar 12
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Well diversified term wholesale funding portfolio

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104

FY12 debt issuance is well ahead of plan; portfolio costs continue to increase

Portfolio term funding costs will continue to increase

~80% FY12 term wholesale debt issuance completed

0
5
10
15
20
25
30
A$B

FY08
FY09
FY10
FY11
1H12
2H12
FY13
FY14
FY15
FY16
FY17
FY18+
Senior Debt
Government Guarantee
Covered Bonds
Sub Debt
Issuance
Maturities
0bp
20bp
40bp
60bp
80bp
100bp
120bp
140bp
160bp
180bp
Sep-05
Sep-06
Sep-07
Sep-08
Sep-09
Sep-10
Sep-11
Sep-12
Sep-13
Sep-14
Sep-15
Sep-16
3m BBSW
Forecast Portfolio fundin
costs based on current1
market levels
105
Indicative annual
issuance volumes
1. As at 31 March 2012

Forecast Portfolio funding costs based on current[1] market levels

Lower structural funding gap - a growing competitive advantage

advantage
	ANZ	Peer 1	Peer 2	Peer 3

Loan – Deposit Ratio (%)	134	160	153	141
Loan – Deposit Gap ($bn)	104	186	164	153
Australia Household Funding Gap ($bn)	111	193	125	179

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

Australian Household Funding Gap
$bn
200
150
100
50
2007 2008 2009 2010 2011 2012
ANZ Peer 1 Peer 2 Peer 3
----- End of picture text -----

ANZ is building an increasingly sustainable balance sheet
Lower and more stable wholesale funding requirement relative to peers
Lower reliance on offshore wholesale markets
Better positioned to take advantage of any uptick in credit growth
Mitigates Rating Agency pressures and improves capacity to manage through periods of market dislocation

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Source: APRA (Mar-12) and latest bank published financial statements.

106

ANZ‟s term funding portfolio is increasingly diversified with a declinin reliance on offshore fundin g g

Term Debt Issuance

Term Debt Outstandings

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Weighted avg. Weighted avg.
tenor : 4 yrs tenor : 5 yrs
33%
68%
23%
44%
32%
FY08 1H12
AUD/NZD
Foreign Currency - Senior Unsecured
Foreign Currency - Covered Bonds
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10% 12% 13% 13% 14%
18%
20%
34% 29% 25%
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33% 34%
28% 28% 27%
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Sep 08 Sep 09 Sep 10 Sep 11 Mar 12 Domestic North America Europe Asia

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107

Liquid assets of $99b exceed total offshore wholesale debt of $85b

Strong liquidity position ($b)

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ANZ Total
Offshore
Wholesale Debt
securities
27.2
19.9
22.5
8.1
10.2
3.3 60.2 66.7 71.4 71.3 62.7
34.7
Sep 08 Sep 09 Sep 10 Sep 11 Mar 12 Mar 12
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Prime Liquidity Portfolio Other Eligible & Highly Liquid Securities Long-term Short-term

Composition of liquid assets ($98.5b)

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Class 1 Class 2 Class 3 Other Liquids
$32.5b $10.2b $27.2b
$28.6b
Government/Semi Govt./Govt. Bank or corporate Internal RMBS Other Eligible and
Guaranteed bank paper, NZ cash paper rated AA or Highly Liquid Securities
with RBNZ, supranational paper better
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108

Hedging has lessened the impact on earnings of the stronger $A

Earnings Composition by Region & Average Translation Rates

EPS Impact

% Group									Exchange
Underlying									Rate
Profit
80% 90% 100%									1.30 1.40
									1.20
70%
40% 50% 60%									0.90 1.00 1.10
30%
									0.80
20%
10%									0.70
0%									0.60
	2H09	1H10		2H10	1H11		2H11	1H12
APEA (LHS)						New Zealand			(LHS)
Australia (LHS)						AVG AUD/USD (RHS)
AVG AUD/NZD			(RHS)

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0.2%
-0.4%
-0.6%
-1.2%
1H12 HOH 1H12 PCP
Inclusive of Hedging Unhedged
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109

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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$m
$m
1,200 3,500
1,098
3,126
3,000
1,000
2,436
800 722 2,500 2,319 2,335
565
660
551 2,000 1,824
600
1,500
400
1,000
Driven
200 by two
500 large
single
0 names
0
1H10 2H10 1H11 2H11 1H12
-200
1H10 2H10 1H11 2H11 1H12
Institutional Australia Division NZ Businesses APEA ex-Institutional CP charge/credit
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APEA ex-Institutional CP charge/credit

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111

Individual Provision Charge

Individual Provision Charge by Segment

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$m
1,200
1,062
1,000
800 762
717
609
594
600
400
200
0
1H10 2H10 1H11 2H11 1H12
Institutional Commercial Consumer
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Individual Provision Charge composition

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$m
1,500 1,062
762 609 717
594
1,000
500
0
-500
1H10 2H10 1H11 2H11 1H12
New Increased Writebacks & Recoveries
Individual Provision Charge
by Region
$m
1,200 1,062
1,000
762
717
800
594 609
600
400
200
0
1H10 2H10 1H11 2H11 1H12
Australia New Zealand APEA
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112

Individual Provision Charge lifted by “transfers"

Individual Provision Charge ($m)

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“Transfers” to Individual Provision ($m)	“Transfers” to Individual Provision ($m)	“Transfers” to Individual Provision ($m)
Institutional		121
	Management overlay	53
	Other Single name	35
	Credit Valuation Adjustment on derivatives	33
New Zealand management overlay		14
Australia management overlay		5
Total		140

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113

Individual Provision Charge – underlying trends reasonabl stable y

Individual Provision Charge by Division ($m)

IP Charge net of CP Transfers CP & CVA "transfers" related to legacy exposures and natural disasters

Australia		Institutional	New Zealand	APEA Ex-Institutional
350 314 20 5 370 319		74 165 2 121 76 286	103 91 31 14 134 105	30 7
		74
2H11 1H12 •Seasonality and higher writebacks in 1H12	2H11 1H12 •High recoveries in 2H11		2H11 1H12 •Continued stabilisation	2H11 1H12 •Remain modest

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114

Collective Provision release principally due to ex osures bein cr stallised p g y

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Collective Provision Charge Modelled Collective Provision
Composition ($m) Charge Drivers 1H12 ($m)
1H11 2H11 1H12
Institutional
100
Growth
74
50 Australia
Growth
0 Other Growth
-4
Institutional
-50
Risk profile
-78
NZ Risk Profile
-100
Other
Risk Profile
Modelled portfolio Charge
-150
CP "transfers" to IP related to legacy exposures and
-200 natural disasters arising in prior periods 1H12
Release of management overlays no longer required
-250
115
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Collective Provision Charge

Collective Provision Charge by Source

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$m $m CP Charge by Division 1H12
150
36 (40) 65 (58) (152) 60 (12) (26) (101) (13)
40
100
20
50 0
-20
0
-40
-50 -60
-80
-100
-100
-120
-150
-140
174
-200
-160
Australia New Institutional APEA
-250
Zealand & Group
1H10 2H10 1H11 2H11 1H12 Centre
1
Lending Growth Net Economic Cycle & Concentration
Risk Profile - Release to P&L Portfolio Mix
Risk Profile - Large Single Name "transferred" to IP Risk Profile - Transferred to Economic Cycle & Concentration
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Includes $60m transferred to concentration risk in 1H12.

116

Collective Provision Charge

Collective Provision Charge by Source

1H12	Risk Impact	Lending Growth	Portfolio Mix	Economic Cycle & Concentration	Total
Australia Division	7	24	(8)	(35)	(12)
Institutional	(139)1	37	0	11	(101)
New Zealand	(10)	(2)	(1)	(13)	(26)
APEA & Group Centre	(32)	15	8	(4)	(13)
Total	(174)	74	(1)	(51)	(152)

2H11	Risk Impact	Lending Growth	Portfolio Mix	Economic Cycle & Concentration	Total
Australia Division	(1)	26	(6)	(93)	(74)
Institutional	(20)	36	1	12	29
New Zealand	(8)	(5)	(1)	(28)	(42)
APEA & Group Centre	(27)	17	2	37	29
Total	(56)	74	(4)	(72)	(58)

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Includes transfer of $60m in Collective Provision from Risk impact to Economic Cycle & Concentration

117

Credit Risk Weighted Assets

Total Credit Risk Weighted Assets (AUDb)

Credit Risk Weighted Assets Movement 1H12 v 2H11 (AUDb)

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8.2
250.2
248.8 250.2
248.8
1.5
3.1
2.2
233.5 233.2
220.4
Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 11 Growth Data FX Risk Mar 12
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Sep 11 Growth Data FX Risk Mar 12 Review Impact

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118

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
5,581
6,000 5,343
8,000
4,000
7,000 6,561 6,561 2,000
6,221
0
6,000 5,581
5,343 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12
> $100m $10-$99m < $10m
5,000
New Impaired Assets by Segment
4,000
$m
4,000
3,000 3,126
3,000 2,319 2,436 2,335
2,000 1,824
2,000
1,000 1,000
single names
0
0
1H10 2H10 1H11 2H11 1H12
Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Institutional Commercial Retail
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$m
4,000
3,126
3,000 2,319 2,436 2,335
1,824
2,000
1,000 Driven by
two large
0 single names
1H10 2H10 1H11 2H11 1H12
Institutional Commercial Retail
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119

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

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180
160
140
120
100
80
60
40
20
0
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Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12

Group Risk Grade profile by Exposure at Default

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59% 58% 60% 61% 61%
13% 14%
14% 13%
15%
13% 13% 12% 12%
12%
9% 9% 8% 8%
7%
6% 6% 6% 6% 5%
Mar 10 Sep 10 Mar 11 Sep 11 Mar 12
AAA to BBB BBB- BB+ to BB BB- >BB-
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120

Total lending exposures – by Geography

Exposure at default (EAD)

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Other North
31% East Asia
19% Other South
East Asia
18% Hong Kong
32%
Singapore
Australia 11% Asia
65%
17%
New Institutional
Zealand Trade
26%
Other
Institutional
64%
10%
Retail
1%
3%
3% Pacific
UK & Europe
Americas
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121

Total lending exposures – by Sector

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Exposure at default (EAD)
as a % of group total
14%
7%
6%
6%
46%
4%
4%
3%
2%
2%
2%
1%
4%
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Category	EAD	EAD	% in Non Performing	% in Non Performing
	Sep-11	Mar-12	Sep-11	Mar-12
Consumer Lending	45.2%	45.7%	0.4%	0.3%
Finance, Investment & Insurance	14.4%	14.4%	0.3%	0.2%
Property Services	6.9%	7.0%	2.5%	2.1%
Agriculture, Forestry, Fishing & Mining	6.0%	5.9%	3.1%	3.0%
Manufacturing	5.8%	5.6%	2.2%	0.9%
Wholesale Trade	3.2%	3.8%	1.5%	1.1%
Government & Official Institutions	4.4%	3.6%	0.0%	0.0%
Retail Trade	2.5%	2.5%	0.7%	0.5%
Transport & Storage	2.1%	2.1%	0.7%	0.6%
Entertainment, Leisure & Tourism	1.8%	1.8%	1.8%	2.1%
Business Services	1.6%	1.6%	3.1%	2.7%
Construction	1.5%	1.5%	1.1%	5.3%
Other	4.6%	4.5%	0.9%	1.4%

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122

Australia 90+ Day Delinquencies

Australia Retail 90+ day delinquencies

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Total Mortgage Portfolio NSW & ACT Mortgages
QLD Mortgages VIC Mortgages
WA Mortgages Total Credit Cards
1.25%
1.00%
0.75%
0.50%
0.25%
0.00%
Mar 08 Mar 09 Mar 10 Mar 11 Mar 12
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Australia Division 90+ day Delinquency Balance ($m)

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2,000
1,500
1,000
500
0
Mar 11 Sep 11 Mar 12
Mortgages Other Lending
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Mortgages have low loss rates

Individual Provision Loss Rates 1H10 2H10 1H11 2H11 1H12 Group 0.62% 0.42% 0.32% 0.31% 0.36% Australia Mortgages 0.02% 0.01% 0.01% 0.03% 0.03%

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123

Australia – Mortgages

Portfolio Statistics	Portfolio Statistics
Total Number of Mortgage Accounts	851k
Total Mortgage FUM	$178b
% of Total Australia Region Lending	60%
% of Total Group Lending	43%
Owner Occupied Loans - % of Portfolio	63%
Average Loan Size at Origination	$258k
Average LVR at Origination	64%
Average Dynamic LVR of Portfolio	50%
% of Portfolio Ahead on Repayments1	48%
First Home Owners - % of Portfolio	9%
First Home Owners - % of New Lending	7%

Dynamic Loan to Valuation Ratio

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% Portfolio
60%
50%
40% Portfolio >90% LVR:
• Sep 08 = 7%
30% • Mar 12 = 4%
20%
10%
0%
0-60% 61-75% 76-80% 81%-90% 91-95% 95%+
Sep 10 Mar 11 Sep 11 Mar 12
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Mortgage Portfolio by State
(Mar 2012)
28% NSW & ACT
16%
QLD
VIC
10%
19%
WA
OTHER
27%
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One month or more ahead of repayments. Excludes funds in offset accounts.

124

Australia Commercial

Australia Commercial 90+ day delinquencies

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

3.0% Business Banking Regional Commercial Banking Esanda
2.5% Small Business Banking Total Commercial
2.0%
1.5%
1.0%
0.5%
0.0%
Mar-08 Mar-09 Mar-10 Mar-11
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Mar-11 Mar-12
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Regional Commercial Banking 90+ day delinquencies

Australia Commercial Lending Mix

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

RCB Total Agri Other Commercial
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
Mar-10 Sep-10 Mar-11 Sep-11 Mar-12
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30%
28%
9%
33%
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Business Banking

Regional Commercial Banking

Esanda

Small Business Banking

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125

New Zealand Businesses

Net impaired assets

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NZDm
1.89%
1.63%
1,669
1.49%
1.31% 1.34%
1,442
1,298
1,165
1,153
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Mar 10 Sep 10 Mar 11 Sep 11 Mar 12
Net Impaired Assets NIA as % GLA
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Total provision charge

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

NZDm
400 351
300
165 119
98
200 102
100
0
-100
1H10 2H10 1H11 2H11 1H12
IP Charge CP Charge
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90+ Days arrears

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

Mortgages
1.20%
Commercial
Rural
0.80%
0.40%
0.00%
2007 2008 2009 2010 2011 2012
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126

Credit Intermediation Trades

Position as at 31 March 2012 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 1,693 208 56 54	1,214
BB/Ba1 1 3,100 82 39 38	3,100
Withdrawn Rating / No rating 3 3,737 175 50 47	3,737
Other costs1 - - - 297 320 Position 31 March 2012 6 8,530 465 442 459	-
	8,052
Position 30 September 2011 6 8,740 782 495 511	8,252

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.

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127

Credit Intermediation Trade Portfolio

Credit Intermediation Trades

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

AUDb USDb
3.5 12.0
3.0
10.0
2.5
8.0
2.0
6.0
1.5
4.0
1.0
2.0
0.5
0.0 0.0
Sep Mar Sep Mar Sep Mar Sep Mar
08 09 09 10 10 11 11 12
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Mark to Market AUD(LHS)

LTD Credit Valuation Adjustment AUD (LHS) Notional Sold Exposure USD (RHS)

Cumulative Credit Risk on Derivative expense for the Credit Intermediation Trade portfolio as at 31/3/2012 was AUD 459m (down AUD 52m from 30/9/2011)
Credit markets have been quite volatile since mid 2011, having been materially impacted by the ongoing European sovereign crisis, US credit rating downgrade, and general concerns about global economic growth. However, since early 2012 credit markets have rallied primarily as a result of the reduction in Greece‟s debt burden, the ECB‟s Long-Term Refinancing Operation (LTRO), and strengthening in the US economy. The significant tightening of credit markets has lead to a decrease in MtM and CVA compared to 30 September 2011.
The Credit Intermediation Trade Portfolio‟s European sovereign debt exposure to the PIIGS is zero, with minimal exposure (< 1%) to financial institutions in these countries.
The total notional value of the sold protection outstanding was USD 8,052m (30/9/11: USD 8,252m).
There have been no trade maturities, or unwinds during the first half 2012. Notional value reductions are attributable to the early redemption of one CLO, CLO amortisations for trades that are past their respective reinvestment periods, and exchange rate movements.
The CDO portfolio has experienced 2 credit events in the underlying reference entities in the last 6 months.
ANZ has strong levels of protection under the sold protection trades with weighted average attachment points of:  ~ 15% for the 12 CDO‟s
~ 33% for the 5 CLO‟s
ANZ has USD 8,530m in bought protection outstanding including USD 479m of bought protection for which ANZ has no remaining underlying sold protection exposure.

128

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack Economic Updates

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Economic updates

Australia New Zealand

	2011	2012	2013	2014	2011	2012	2013	2014
GDP	2.0	3.0	3.1	3.2	1.2	1.9	3.0	2.9
Inflation	3.5	2.2	3.2	3.0	4.61	1.6	2.5	2.7
Unemployment	5.2	5.4	4.9	4.8	6.6	6.2	6.0	5.7
Cash rate	4.75	3.75	3.75	3.75	2.50	2.50	3.50	4.25
AUD/USD	0.97	1.10	1.10	0.98	N/A	N/A	N/A	N/A
Credit	3.4	3.9	4.0	4.0	1.9	2.1	3.3	4.2
- Housing	5.8	4.7	4.1	4.8	1.6	1.8	2.6	3.4
- Business2	0.3	2.9	4.0	3.3	2.5	2.6	4.1	5.2
- Other	-0.6	1.4	2.9	1.1	0.6	1.5	2.7	3.5

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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130

Growth Forecasts – Asia

Emerging Asia GDP Growth Forecasts

2007 2008 2009 2010 2011 2012 2013	2007 2008 2009 2010 2011 2012 2013	2007 2008 2009 2010 2011 2012 2013	2007 2008 2009 2010 2011 2012 2013	2007 2008 2009 2010 2011 2012 2013	2007 2008 2009 2010 2011 2012 2013	2007 2008 2009 2010 2011 2012 2013	2007 2008 2009 2010 2011 2012 2013
China	13.1	9.6	9.1	10.1	9.2	9.0	9.3
India	9.5	7.4	7.0	8.8	7.1	7.3	8.5
NIEs
Hong Kong	6.4	2.4	-2.7	7.0	5.0	4.4	5.1
Korea	5.1	1.5	0.2	6.2	3.9	3.4	4.9
Singapore	8.6	2.3	-0.8	14.5	5.0	3.0	6.7
Taiwan	5.9	1.1	-1.9	10.9	4.0	4.0	5.1
ASEAN
Indonesia	6.3	6.0	4.6	6.1	6.5	6.4	6.9
Malaysia	6.5	4.7	-1.7	7.2	5.1	4.6	6.1
Philippines	7.1	3.7	1.1	7.3	3.7	5.0	5.3
Thailand	4.9	2.5	-2.3	7.8	0.1	5.5	6.0
Vietnam	8.4	6.3	5.3	6.8	6.1	5.5	7.0

Total	10.3	7.3	6.1	9.1	7.3	7.4	8.1
Total (ex. China & India)	6.1	3.1	0.4	7.6	4.3	4.6	5.7
Sources: CEIC, ANZ Economics.

Note: Based on calendar year.

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131

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.shareholder.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 2012

10425_rns_2012-05-01_3cbc5e64-970c-48d9-aad0-8d44de72706d.pdf

Index

Half Year Result Overview

Overview of financial performance

Our Super-Regional Strategy is built on three pillars

Shared Core Infrastructure

Product

Operations

Risk

People

Australia Division

Underlying profit growth (AUDm)

Australia Division

Net Loans & Advances[1]

1H12 v 2H11

Customer Deposits

New Zealand Businesses

Underlying profit growth (NZDm)

1H12 v 2H11

Cost to income ratio

Profit composition

Asia Pacific, Europe & America (APEA) Division

Underlying profit growth (USDm)

APEA Division

1H12 v 2H11

21%

APEA revenue (pro forma USD)

APEA client revenue

Increasing diversification

Institutional Division

Underlying profit growth (AUDm)

Institutional Division

Institutional revenue mix ($m)

FY11 v FY10

Global Markets revenue mix

Strengthened capital position, well diversified funding base

Key points

diversification into higher growth geographies

remain but need to reshape business for future

First Half 2012

Performance 1H12 v 1H11

Group income growth strong assisted by Markets trading income recover offset b Australia mar in ressure y y g p

Pro Forma Income growth 1H12 v 2H11

Pro Forma Income growth 1H12 v 1H11

Global Markets income recovered with continued rowth in sales and normalisation of tradin income g g

Net Interest Margin – First Half 2012

Movement 1H12 v 2H11 (bps)

Net Interest Margin – Divisional Trends

Net Interest Margin 1H12 v 2H11

Net Interest Margin

NIM declined in Q2 partly due to one off‟s

Contribution to Net Interest Margin ex-Markets Movement 2Q12 v 1Q12

Positive „JAWS‟ in most divisions; action underway on costs in Australia

There has been a ramp up in restructuring activity

A greater focus on simplification and productivity whilst continuin to invest for rowth g g

Individual Provision Charge lifted by “transfers"

Individual Provision Charge ($m)

Individual Provision Charge – underlying trends reasonabl stable y

Individual Provision Charge by Division ($m)

Collective Provision release principally due to ex osures bein cr stallised p g y

Net impaired assets continue to reduce, increase in new im aired driven b two sin le names in Institutional p y g

Outlook

NIM movement summary

Net Interest Margin – Divisional Trends

Net Interest Margin 1H12 v 2H11

Net Interest Margin

Net Interest Margin - Group

NIM movement 1H12 v 1H11

NIM - Australia Division

NIM movement 1H12 v 2H11

NIM movement 1H12 v 1H11

NIM – New Zealand Businesses

NIM movement 1H12 v 2H11

NIM movement 1H12 v 1H11

NIM – APEA Division

NIM movement 1H12 v 2H11

NIM – Institutional Division

NIM movement 1H12 v 2H11

Australia and New Zealand Banking Group Ltd. Interim / Quarterly Report 2012