Australia and New Zealand Banking Group Ltd. — Interim / Quarterly Report 2013

Sep 8, 2013

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

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Delivering ANZ‟s strategy

Super Regional Strategy To become the best connected and most respected bank across the region

Strengthen our position in Australia & New Zealand	Capture faster growing regional flows in trade, capital and wealth	Diversify revenue streams by product, geography and customer	Drive operational efficiency and productivity

Manage risk, balance sheet and capital to drive superior return for shareholders

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2

Focused on differentiated growth, productivity and shareholder returns

Diversified, low risk growth outcomes and 1. Growth opportunities

2. Productivity

Step change in productivity and cost management

3. Shareholder Returns

Driving improved ROE and shareholder returns

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3

Our differentiated strategy is delivering for shareholders and customers

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Established network to support faster
growing regional flows in trade, capital
and wealth
Asia-Europe Asia-US
Trade: US$1.0trn Trade: US$0.8trn
Intra-Asia
Trade: US$1.6trn
Australia/NZ-
Asia
Trade: US$235b
Source: World Trade Organisation
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ANZ has built a substantial business in Asia

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Markets / No. Staff
Japan & Korea – 200
China – 800
Taiwan – 1,500
Hong Kong – 1,000
Greater Mekong [1] – 1,400
Philippines – 1,300
Singapore – 2,100
Indonesia – 1,800
Global Hub
India – 5,600
Average 5 year GDP growth
7.8%
2.9%
1.4%
Australia New Zealand Asia
(ex. Japan)
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1. Greater Mekong includes Vietnam, Cambodia & Laos.

4

We have built scale, capability and momentum in Asia

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ANZ has built a substantial business in Asia A top 4 Corporate Bank in Asia
USDm Asia Operating Income Greenwich Associates Large Corporate Survey
Overall Relationship Quality
70%
2,109
+46% CAGR 1,840 +11% PCP 17%
60% Bank A
1,257 11% 17%
1,085 [ 1,135 ]
877 1,024
24%
622 50% 12% 11% Bank B
322 6%
Bank C
40%
FY07 FY08 FY09 FY10 FY11 FY12 1H12 2H12 1H13
2012
Significantly larger presence than
30%
domestic peers
2011
Asia Staff (FTE) Bank E
20% 2010 Bank D
15,700 Bank H Bank F
Bank G
Bank I
Global 6,900 10%
Hubs
0%
8,800 ~2,800 ~400 -75 -50 -25 0 25 50 75
~200
Greenwich Quality Index [1] - Overall Relationship Quality
ANZ Peer 1 Peer 2 Peer 3 (Difference from the Average)
Important Relationships
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1. The Greenwich Quality Index score is based upon a normalized composite of all qualitative evaluations transformed to a scale of 0 to 1,000 with the difference from the average shown. Note: Cross-hairs are calculated by the average of the banks shown in graph. 5

Diversified, low risk growth outcomes and opportunities

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Australia
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12 month growth vs system [1 ]
1.3x
1.2x
Mortgages Household Deposits
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New Zealand

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12 month growth vs system [2 ]
1.6x
1.4x
Mortgages Deposits
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International & Institutional Banking

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Operating Income Mix 1H13
5% 6%
Partnerships
11% 11%
Retail Asia Pacific
30% 26%
Global Loans
33% 34% Global Markets
21% 23% Transaction Banking
1H11 1H13
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Global Wealth
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Funds Under Management ($b)
+8%
54.8
51.0 51.7
9.4
New Zealand 8.4 8.8
Australia 42.6 42.9 45.4
Mar 12 Sep 12 Mar 13
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1. Source: Mortgage system based on RBA data. Household deposit system based on APRA banking statistics.

2. Source: RBNZ, Share of all providers. Mortgages at February 2013, Deposits as at December 2012

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6

Step change in productivity and cost management

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Cost to Income Ratio
Group
Australia Division
International & Institutional Banking Division
New Zealand Division
55%
50%
45%
40%
35%
1H12 2H12 1H13
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Operating Expense Growth
1H13 v 2H12 1H13 v 1H12
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Group Australia IIB
-1%
-2% -2%
-3%
-8%
-10%
New Zealand Global Wealth
-2%
-7%
-10%
-13%
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7

Shareholders are benefitting from ANZ‟s momentum driving increased returns

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Return on Equity
16.1%
15.5% 15.5%
15.2%
14.7%
1H11 2H11 1H12 2H12 1H13
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Ordinary Share Dividends Paid

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$m
3,919
3,665
3,213
2,396
2,003
1,769
2009 2010 2011 2012 1H12 1H13
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Diverse Funding Mix

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29% 19% 19% 20%
13% 14% 15%
22%
6% 5% 5%
7% 12% 11%
16%
14%
61% 61%
57%
50%
7% 8% 8% 8%
Sep 08 Sep 10 Sep 12 Mar 13
Short Term Wholesale Funding Customer Funding
Term Debt < 1 year Residual Shareholders equity
Maturity & Hybrid debt
Term Debt > 1 year Residual
Maturity
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8

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Balance Sheet & Treasury

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Balance Sheet composition by Geography

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Customer Lending [1] by Geography
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Customer Deposits by Geography

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Australia APEA
Institutional Retail & Wealth APEA APEA Commercial
Retail & Wealth & Institutional
APEA Commercial
11% 1% & Institutional 23%
4%
Australia 10%
Commercial
14% APEA
Australia APEA
11% New Zealand Institutional 15% 27%
10% Retail & New Zealand
Other Retail Australia 3% New Wealth New 11% Retail & Wealth
Zealand
Zealand
Australia 18% NZ Australia 16% NZ
71% 7% Commercial 2% Commercial
Australia 57%
1% New Zealand Commercial 12% 3% New Zealand
Institutional Institutional
43% 30%
Australia
Australia Retail
Retail Mortgages
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1. Customer lending represents Net Loans & Advances including acceptances

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Balance Sheet composition by Segment

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Customer Lending [1] by Segment Customer Deposits by Segment
Australia
Commercial New Zealand Australia
Commercial New Zealand Institutional
14% Commercial 15%
6%
2%
New Zealand
Retail & Wealth Australia
10% Commercial Institutional
11% 13%
Australia
APEA 20% Commercial 15% Institutional 22% APEA
Retail & Wealth 2% Institutional
Commercial 40%
Institutional
APEA
22% 10% Institutional
New Zealand 11%
Retail & Wealth Retail & Wealth Retail & Wealth
3%
58% 1% New Zealand New Zealand
45%
Institutional Institutional
4%
APEA
Retail &
Wealth
46%
30%
Australia Australia
Retail & Wealth Retail & Wealth
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1. Customer lending represents Net Loans & Advances including acceptances

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11

Strongly capitalised under new Basel 3 rules

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Capital levels are well positioned (CET1)
10.3%
9.8% 10.0%
9.5%
2.5% Capital
Conservation
Buffer
7.5% 7.8% 8.0% 8.2%
4.5% CET1
Minimum
Sep 11 Mar 12 Sep 12 Mar 13
APRA Basel 3 Internationally Harmonised Basel 3
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Capital overview

• ANZ remains at the upper end of global peer group under new B3 rules

• Well placed in regards to capital targets and focused on driving capital efficiencies with further initiatives completed in 1H13

• Full year Dividend Payout in the range of 65% to 70% of Cash Earnings with a bias towards the upper end of the range in the near term.

	Capital position reconciliation under Basel 3	Capital position reconciliation under Basel 3	Capital position reconciliation under Basel 3
		CET1	Tier-1	Total Capital
	Mar-13 APRA	8.2%	9.8%	11.7%
	10% allowance for investments in insurance subs and ADIs	0.8%	0.8%	0.7%
	Mortgage 20% LGD floor and other measures	0.4%	0.5%	0.6%
	IRRBB RWA(APRA Pillar 1 approach)	0.4%	0.5%	0.5%
	Upto 5% allowance for deferred tax asset	0.2%	0.2%	0.2%
	Other capital items	0.3%	0.3%	0.3%
	Mar-13 Internationally Harmonised	10.3%	12.1%	14.0%

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12

Organic capital generation and capital initiatives have improved capital levels

Capital Position (APRA Basel 3 Common Equity Tier 1)

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10.30
1.01
0.16
8.18
8.02
(0.31) 0.01
(0.18)
(0.53)
Portfolio growth 25bp
Risk Migration (incl EL vs EP) flat
Non credit RWA 6bp
Up 16bps
Sep-12 Cash RWA Non RWA Capital Dividends Other (5) Mar-13 Mar-13
APRA NPAT (1) Usage (2) Business Initiatives (4) (net DRP) APRA Internationally
Basel 3 Usage (3) Basel 3 Harmonised
Basel 3
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1. Cash earnings net of pref shares. 2. Includes impact of expected loss versus eligible provision shortfall 3. Includes capital retention of deconsolidated entities, capitalised software (before write off) and other intangibles. 4. Includes external refinance of ANZ Wealth. 5. Includes net FX, Non-Core NPAT items, portfolio data review, net deferred tax assets.

13

Structural liquidity position strengthened – driven by growth in customer funding and shortened asset tenor

	Deposit growth has stabilised											Shortened asset tenor
	Short Term Wholesale Funding Customer Funding Term Debt < 1 year Residual Maturity Shareholders equity & Hybrid debt Term Debt > 1 year Residual Maturity 7% 8% 8% 8% 50% 57% 61% 61% 14% 16% 12% 11% 7% 6% 5% 5% 22% 13% 14% 15% Sep 08 Sep 10 Sep 12 Mar 13 29% 19% 19% 20%											Liquid Assets Lending Other Short Term Assets Other Fixed Assets Trade Loans 4% 4% ~~3%~~ ~~3%~~ 80% 77% 74% 71% ~~1%~~ 2% 3% 4% 8% 7% 6% 8% 7% 10% 14% 14% Sep 08 Sep 10 Sep 12 Mar 13 16% 19% 23% 26%
						5% 15% 20%											19%				23%					4% 8% 14% 26%
							5% 15%							7%				10%				6% 14%					14%
														~~1%~~ 8%
																		7%
							11%							80%				77% 2%				74% 3%					4% 8%
																											71%
							61%
							8%
														4%				4%				~~3%~~					~~3%~~
			Short Term Wholesale		Customer Funding
			Term Debt < 1 year		Shareholders equity										Other Short Term
			Term Debt > 1 year

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14

Lowest structural funding gap provides funding flexibility

	ANZ	Westpac	NAB	CBA
Loan – Deposit Ratio (%)	128%	148%	146%	141%
Loan – Deposit Gap ($b)	97	167	156	157
Australia Household Funding Gap ($b)	112	184	126	170

Australian Household Funding Gap

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$b
200
150
100
50
2007 2008 2009 2010 2011 2012 2013
ANZ Westpac NAB CBA
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ANZ has achieved a substantially lower LDR

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ANZ Loan – Deposit Ratio
180%
160%
140%
120%
100%
Sep Sep Sep Sep Sep Sep Mar
2007 2008 2009 2010 2011 2012 2013
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Source: APRA (Feb 13) and latest bank published financial statements

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15

A sustainable term wholesale funding profile

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Issuance Maturities
$b
26 26
24
24
Indicative annual
issuance volume
18
17
16
15
13
12
11
7 7
Senior Unsecured Government Guaranteed
Covered Bonds Subordinated
Issuance since 1-Apr-13
FY08 FY09 FY10 FY11 FY12 1H13 2H13 FY14 FY15 FY16 FY17 FY18 FY19+
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Note: Funding shown in year of issuance. Includes transactions with a call date or maturity date greater than 12 months at time of issue.

16

Portfolio wholesale funding costs stabilising, deposit costs remain relatively high

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Retail deposit and wholesale funding
Term Wholesale Funding Portfolio Costs
margins (to 3mth BBSW)
200bp 150bp
150bp
100bp
50bp
Actual portfolio cost
0bp
Sep 2011 Mar 2012 Sep 2012 Mar 2013 Forecast portfolio cost based
on current market levels
Average Bank "special" AUD Wholesale Bank Unsecured
100bp
Term Deposit Rate Funding Rate
(all terms) (3 yrs, AA Rated)
Spread between retail deposit rates and
wholesale funding rates
100bp
Deposit Rates Vs
Wholesale Rates
50bp
0bp
50bp
-50bp
Sep 2011 Sep 2012 Sep 2013
Sep 2011 Mar 2012 Sep 2012 Mar 2013
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Source: RBA, ANZ (3 month rolling averages)

17

Strong liquid asset position

	Liquidity Portfolio	Basel 3 Liquidity Rules
	Internal RMBS Private Sector Securities and precious metals Cash, Government & Semi-Government Securities 35 47 62 68 9 13 15 15 31 31 38 39 75 91 115 122 Sep 10 Sep 11 Sep 12 Mar 13	●In January 2013, the Basel Committee announced revised details on the Liquidity Coverage Ratio (“LCR”) including amendments to the outflow assumptions ●APRA is yet to finalise the LCR requirements for Australian banks, although this is expected shortly ●As a result of the shortage of HQLA (including Government bonds) in Australia, banks will be permitted to meet some of their liquidity requirement via the Committed Liquidity Facility (“CLF”) ●The size and availability of the CLF has yet to be agreed with APRA and the RBA

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18

Hedging has partially offset the impact on earnings of sustained $A strength

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1H13 Earnings composition by Currency EPS impact from Hedging
Non AUD & NZD
0.60%
17%
Hedges in place
for ~70% FY13
TWD
earnings MYR
PGK
0.10%
Other
IDR
CNY
USD
AUD
-0.40%
65%
NZD 18%
Hedges in place
for ~70% FY13
earnings -0.90%
1H13 HOH 1H13 PCP
Inclusive of Hedging Unhedged
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19

Capital and Replicating Portfolio – Earnings impacted by lower interest rates, but portfolio management mitigates full impact

Australia Capital and Replicating Portfolio

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Portfolio Earnings & Spread to Cash Contribution to Group NIM
% bps
(ex Markets)
6 Portfolio 45 HOH Impact:
Earnings rate -4.3 bps
5 (%) 40
4 Benefit to 1H13 35
Group NIM (ex
Markets) is
3 Average Cash 30
+8 bps
Rate (%)
2 25
2H10 1H11 2H11 1H12 2H12 1H13 2H10 1H11 2H11 1H12 2H12 1H13
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New Zealand Capital and Replicating Portfolio

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Portfolio Earnings & Spread to Cash Contribution to Group NIM
% bps
(ex Markets)
6 Portfolio 15 HOH Impact:
-0.5 bps
5 Earnings rate
(%)
4 10
Benefit to 1H13
3 Group NIM (ex
Markets) is
2 Average Cash +3 bps 5
Rate (%)
1
0
0
2H10 1H11 2H11 1H12 2H12 1H13
2H10 1H11 2H11 1H12 2H12 1H13
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20

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack Risk Management

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Credit quality in line with expectations

Credit Quality trends

Provision Charge

• The 1H13 Provision charge of $599m represents a 13% reduction HOH

• This lower Provision charge driven by reduction in both new individual provisions and top-up provisions to existing impaireds

• ANZ remains appropriately provided for the collective provision ratio at 1.01% following the introduction of APRA Basel III standards (1.06% on a Basel II basis)

• This coverage level reflects the ongoing improvement in credit quality of the Group's portfolio

• New impaired assets declined 15% HOH to $1.6b, with all divisions seeing HOH reductions in new impaireds

• Gross impaired assets reduced 10% HOH to $4.7b

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$m Individual Provision Charge (LHS)
Collective provision Charge (LHS)
Total Provision Charge as % Avg. net Advances
2,000 1.60%
1,750 1.40%
1,500 1.20%
1,250 1.00%
1,000 0.80%
750 0.60%
500 0.40%
250 0.20%
0 0.00%
-250 -0.20%
Impaired Assets
$m Gross Impaired Assets New Impaired Assets
Avg. $0.4b decline in
7,000 Gross Impaired Assets
HOH since 2H10
6,000
5,000
4,000
3,000
2,000
1,000
0
1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13
1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13
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22

Collective Provisioning Coverage reflects Global Institutional Portfolio credit quality improvement

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Global Institutional Sub Investment Grade [1]
Exposures continue to decline
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Trend in Global Institutional composition

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$b Global Institutional Credit Exposure CRWA
Rate [2 ]
400 60%
300 50%
200 40%
100 30%
0 20%
FY09 FY10 FY11 FY12 1H13
Investment Grade (LHS) Sub-Investment Grade (LHS)
Default (LHS) Institutional Basel II CRWA Rate
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160 40% Rate
400 60%
300 50%
140 35%
200 40%
120 30% 100 30%
0 20%
100 25% FY09 FY10 FY11 FY12 1H13
Investment Grade (LHS) Sub-Investment Grade (LHS)
80 20% Default (LHS) Institutional Basel II CRWA Rate
60 15%
Global Institutional Portfolio composition
40 10% FY09 1H13
Total Portfolio: $187b Total Portfolio: $286b
20 5%
21%
0 0% 32%
FY09 FY10 FY11 FY12 1H13 66% 78% 1%
Group CP/CRWA Ratio (Basel III) 2%
Group CP/CRWA Ratio (Basel II)
Institutional Sub-Investment Grade Exposure (RHS)
Investment Grade Sub-Investment Grade Default
CP / Credit RWA (bps)
Institutional (% of sub-investment grade lending)
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1. Sub-investment grade defined as exposures with a rating below BBB-

2. CRWA Rate defined as Credit Risk Weighted Assets as a percentage of Exposure at Default (EAD)

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23

Individual Provision Charge

Individual Provision Charge by Segment

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$m
1,200
1,062
1,000
915
761
800
722
618
595 595
600
400
200
0
1H10 2H10 1H11 2H11 1H12 2H12 1H13
Institutional Commercial Consumer
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Individual Provision Charge Composition

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$m
1,062 915
1,500 761 618 722
595 595
1,000
500
0
-500
1H10 2H10 1H11 2H11 1H12 2H12 1H13
New Increased Writebacks & Recoveries
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Individual Provision Charge by Region

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$m
1,062
1,200
915
1,000
761
722
800 595 618 595
600
400
200
0
1H10 2H10 1H11 2H11 1H12 2H12 1H13
Australia New Zealand APEA
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24

Continued improvement in Credit RWA rate

Group Exposure at Default and Credit Risk Weighted Assets

Global Institutional Exposure at Default and Credit Risk Weighted Assets

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Exposure at Default ($b) Exposure at Default ($b)
Basel II Credit Risk Weighted Assets ($b) Basel II Credit Risk Weighted Assets ($b)
CRWA / EAD (%) - Basel II CRWA / EAD (%) - Basel II
CRWA / EAD (%) - Basel III CRWA / EAD (%) - Basel III
692
658
630
615
54%
52%
550 564 50%
522
47%
42% 42% 41% 40% 46%
40%
40% 43% 45%
39% 38%
41%
275 [Basel III ]
CRWAs
287
234 233 249 250 255 261 239 248 265
220
206 203
193
130 [Basel III ]
CRWAs
110 112 113 115 117
100 101
Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13
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25

Risk Weighted Assets

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Total Risk Weighted Assets
Total Risk Weighted Assets
movement 1H13 v 2H12
$b
$b Market & Operational Risk Weighted Assets 6.0 14.1 2.4 322.6
300.1 0.0
Credit Risk Weighted Assets
323
309 Up 7%
300
48
285 2H12 Basel II Basel III Markets & Operational 1H13
280 48 Credit Risk Credit Risk IRRBB Risk Risk Basel III
45 Impacts Basis
264 264
35
31
249 Total Risk Weighted Assets
31 31 movement by Division 1H13 v 2H12
29
$b 13.7 1.0 0.8 322.6
300.1 7.0
275
261
249 250 255
234 233
220
Up 7%
Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Mar 13 2H12 Australia IIB NZ GWPB 1H13
Basel II Basel Basel III
III Basis
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26

Credit Risk Weighted Assets

Credit Risk Weighted Assets ($b)

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Basel II Credit Risk Weighted Assets
Collective Provision as a % of CRWA (Basel II)
Collective Provision as a % of CRWA (Basel III)
1.38% 1.36%
1.35%
1.32%
1.28%
1.20%
1.06% 1.08%
1.06%
1.01%
Basel III
275
CRWAs
258 249 250 255 261
230 234 233
220
Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13
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Credit Risk Weighted Assets movement 1H13 v 2H12 ($b)

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9.0 0.1 275.0
14.1
254.9
2.1
0.8
Up 8%
2H12 Basel III Risk Growth Portfolio FX 1H13
Intro- Data Impact
duction Review
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Credit Risk Weighted Assets movement by Division 1H13 v 2H12 ($b)

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Basel II Impacts Basel III Impacts
12.5 0.1 1.3 275.0
254.9 2.6 2.6 1.4 260.9 0.2
0.6
2H12 IIB NZ Other IIB NZ Other
1H13 1H13
Australia Basel II Australia Basel III
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27

Control List and Risk Grade Profiles

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Group Sub-Investment Grade [1] Exposures
Control List
as % Exposure at Default
Index Sep 08 = 100
300 28% 28%
250
26% 26%
200
150
24%
100 23%
22%
50
0
13% 13%
12% 12%
12%
11%
Control List by Limits Control List by No. Groups 11%
Group Risk Grade Profile
9% 9%
8% 8%
28% 28% 26% 26% 24% 23% 22% 7% 7%
7%
72% 72% 74% 74% 76% 77% 78%
6% 6% 6% 6%
5% 5% 4%
Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13
p p p
Investment Grade Sub-Investment Grade 1
BB+ to BB BB- <BB-
Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13
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1. Sub-investment grade defined as exposures with a rating below BBB-

28

Gross Impaired Assets

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Gross Impaired Assets by Type
$m Impaired Loans NPCCD Restructured
8,000
Avg. $375m
7,000 6,561 6,561 decline HOH
6,221 since 2H10
6,000 5,581 5,343 5,196
5,000 4,685
4,000
3,000
2,000
1,000
0
Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13
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Gross Impaired Assets by Size of Exposure
> $100m $10-$99m < $10m
$m
8,000
7,000 6,561 6,561
6,221
6,000 5,581
5,343 5,196
5,000 4,685
4,000
3,000
2,000
1,000
0
Mar 10Sep 10Mar 11Sep 11Mar 12Sep 12Mar 13
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29

Impaired Assets

New Impaired Assets by Division

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$m
3,500 3,126
3,000
2,319 2,437 2,356
2,500
1,831 1,847
2,000
1,571
1,500
1,000
500
0
1H10 2H10 1H11 2H11 1H12 2H12 1H13
Institutional Australia New Zealand Other
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Impaired Assets Concentration
by number of Customers
6% 4% 2% 3% 3% 3% 3%
4% 2% 1% 3% 4% 3%
11% 18% 19% 16% 11% 11%
20%
22%
72% 78% 77% 78% 82% 83%
61%
Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13
10-50m 51-100m 101-200m >200m
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Net Impaired Assets by Division
$m
6,000
4,968
4,686
4,503
5,000
3,884
3,630
3,423
4,000 3,142
3,000
2,000
1,000
0
Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13
Institutional Australia New Zealand Other
Impaired Assets Concentration
by value of Impaired Assets
33% 31% 24% 27% 22% 24% 23%
8% 5% 11% 9%
16%
11%
21%
25% 29% 31% 28% 18%
29%
22%
39% 37% 39% 42% 47%
29%
20%
Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13
10-50m 51-100m 101-200m >200m
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30

Total lending exposures by Geography

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Exposure at Default by
Exposure by Geography
Line of Business
Australia
Total Exposure at Default (Mar 13) - $693.2b [1 ]
Australia New Zealand APEA Retail
28%
$437.1 $111.5 $144.6 55% Commercial
17%
Institutional
New Zealand
UK & Europe
New Zealand
3% Retail
16% 24%
Americas 4% 47% Commercial
Pacific 1% 29% Institutional
APEA Australia
Singapore 5% 21% 63%
APEA
5% 1%
3%
Hong Kong Retail
3%
Other South Commercial
East Asia 2%
Institutional
Other North 94%
East Asia
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1. EAD excludes amounts for „Securitisation‟ and „Other Assets‟ Basel asset classes

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31

Total lending exposures by industry sector

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Exposure at Default (EAD)
as a % of group total
ANZ Group
Total EAD (Mar 13)
$693.2b
17% 7%
6%
4%
4%
4%
3%
40% 2%
2%
2%
2%
2%
5%
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	Category	EAD	EAD	% in Non Performing	% in Non Performing
		Sep 12	Mar 13	Sep 12	Mar 13
	Consumer Lending	41.0%	40.4%	0.3%	0.2%
	Finance, Investment & Insurance	14.9%	16.8%	0.5%	0.2%
	Property Services	7.5%	7.1%	1.6%	1.6%
	Manufacturing	6.0%	6.1%	1.2%	1.0%
	Agriculture, Forestry, Fishing	4.5%	4.2%	3.9%	4.1%
	Government & Official Institutions	4.2%	3.9%	0.0%	0.0%
	Wholesale trade	3.9%	4.0%	0.6%	0.6%
	Retail Trade	2.9%	2.9%	0.9%	0.8%
	Transport & Storage	2.3%	2.2%	3.2%	2.0%
	Business Services	2.0%	1.9%	0.9%	0.7%
	Electricity, Gas & Water Supply	1.8%	1.7%	0.2%	0.1%
	Construction	1.7%	1.6%	1.4%	1.2%
	Resources (Mining)	1.6%	1.8%	0.2%	0.2%
	Other	5.7%	5.4%	0.1%	0.1%

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32

Global Agriculture

Agriculture Exposure by Sector (EAD)

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Agriculture
Total EAD (Mar 13) As a % of Group EAD
$29.2b 4.2%
14%
10%
14%
37%
3%
8%
4% 4%
6%
Dairy Beef
Sheep & Other Livestock Grain
Wheat Horticulture/Fruit
Other Crops Forestry & Fishing
Agriculture Services
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1. 60% of NZ Agriculture exposure is to Dairy Cattle Farming

Agriculture Exposure by Geography

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Australia
57% [1 ] 42% APEA
New Zealand
1%
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Agriculture Security Levels
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6% 9% 5%
7% 4%
10% 11%
17%
25%
80%
70%
56%
Group Australia New Zealand
Fully Secured 80-100% Secured
60-80% Secured <60% Secured
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33

Manufacturing

Risk Rating Profile (% EAD)

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Manufacturing
Total EAD (Mar 13) As a % of Group EAD
$41.9b 6.1%
11% 10%
16% 14%
35%
41%
43%
49%
55%
48%
43%
35%
Sep 10 Sep 11 Sep 12 Mar 13
APEA Australia New Zealand
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Exposure Mix by Geography (EAD)

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14%
25%
37%
86%
75%
63%
Group Australia APEA
1
Investment Grade Sub-Investment Grade
Total Exposure by Geography (EAD)
$b
50
40
30
20
10
0
Sep 10 Sep 11 Sep 12 Mar 13
APEA Australia New Zealand
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1. Sub-investment grade defined as exposures with a rating below BBB-

34

Resources

Resources Exposure by Sector (% EAD)

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Resources
Total EAD (Mar 13) As a % of Group EAD
$12.5b 1.8%
8%
18%
Includes 35%
Iron Ore 5%
23%
16%
Oil & Gas Coal
Metal Ore Mining Services
Other
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Resources Exposure by Geography (EAD)

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Australia
20%
Asia
5%
56% New Zealand
19%
Europe, America,
Pacific & Other
Resources Exposure by Geography (EAD)
$b
15
10
5
0
Sep 10 Sep 11 Sep 12 Mar 13
Australia Non-Australia
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35

Commercial Property credit exposure

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Commercial Property Exposure
Commercial Property Exposure by Sector
Gross Loans and Advances by Region
$b % GLA
35 8.0% 30% Offices
30.9
30.2 Retail
29.3
7.8%
30 28.2 27.8
26.1 3.5 Residential
0.8 3.0 3.8 26%
1.1 7.6% 25% Industrial
1.0
25 6.1 5.3
5.9 5.0 5.2 7.4% Tourism
5.2
14%
3% Other
20 7.2% 2%
6.9%
7.0%
15 Exposure to REIT‟s, Listed Property
Companies and/or their subsidiaries
6.8%
10 21.3 19.9 20.8 21.3 22.1 21.2 % GLA
6.6%
Exposure to
5
6.4% REITs, listed
Other
property
Commercial 71%
0 6.2% 29% companies
Sep 08 Sep 09 Sep 10 Sep 11 Sep 12 Dec 12 Property and/or their
subsidiaries
APEA (LHS) New Zealand (LHS)
Australia (LHS) % of Group GLA's (RHS)
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36

Australia 90+ day delinquencies

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Australia Retail 90+ day delinquencies
Total Mortgage Portfolio NSW & ACT Mortgages QLD Mortgages
VIC Mortgages WA Mortgages Total Credit Cards
2.0%
1.5%
1.0%
0.5%
0.0%
Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13
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Australia Commercial 90+ day delinquencies
3.0%
Business Banking Regional Business Banking Esanda Small Business Banking Total Commercial
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13
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37

Australia Division - Mortgages

Portfolio statistics	Portfolio statistics
Total Number of Mortgage Accounts	860k
Total Mortgage FUM	$188b
% of Total Australia Region Lending	60%
% of Total Group Lending	43%
Owner Occupied Loans - % of Portfolio	62%
Average Loan Size at Origination	$262k
Average LVR at Origination	65%
Average Dynamic LVR of Portfolio	52%
% of Portfolio Ahead on Repayments1	59%
First Home Owners - % of New Lending	6%
% of Portfolio Paying Interest Only2	32%

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Dynamic Loan to Valuation Ratio
% Portfolio
60% Portfolio >90% LVR
= 4.5% (Mar 13)
50%
40%
30%
20%
10%
0%
0-60% 61-75% 76-80% 81-90% 91-95% 95%+
Mar-11 Sep-11 Mar-12 Sep-12 Mar-13
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Mortgage portfolio by State
NSW & ACT
18%
QLD
26% 30%
VIC
WA
10%
16%
Other
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Mortgages have low loss rates

Individual Provision Loss Rates	Individual Provision Loss Rates	Individual Provision Loss Rates	Individual Provision Loss Rates	Individual Provision Loss Rates	Individual Provision Loss Rates
	1H11	2H11	1H12	2H12	1H13
Group	0.32%	0.31%	0.36%	0.43%	0.27%
Australia Mortgages	0.01%	0.03%	0.03%	0.02%	0.01%

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

2. % of Portfolio of Instalment Loans. Excludes funds in Equity Manager Accounts.

38

New Zealand - Mortgages

Portfolio statistics	Portfolio statistics	Dynamic Loan to Valuation Ratio Mortgage portfolio by Region 12%3% Auckland 41% 17% 21% 12% 9% 0-60% 61-70% 71-80% 81-90% 90%+	Dynamic Loan to Valuation Ratio
Total Number of Mortgage Accounts	474k		41% 17% 21% 12% 9% 0-60% 61-70% 71-80% 81-90% 90%+
Total Mortgage FUM	NZD 57b
% of Total New Zealand Lending	56%
% of Total Group Lending	10%
Owner Occupied Loans - % of Portfolio	78%
Average Loan Size at Origination1	NZD 229k
Average LVR at Origination	66%
			Mortgage portfolio by Region
Average Dynamic LVR of Portfolio	47%
			12%3% Auckland
% of Portfolio Paying Interest Only2	21%

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Auckland
12% [3% ]
Wellington
38%
Christchurch
Rest of North Island 29%
Rest of South Island
12%
6%
Other
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Mortgages have low loss rates

Individual Provision Loss Rates	Individual Provision Loss Rates	Individual Provision Loss Rates	Individual Provision Loss Rates	Individual Provision Loss Rates	Individual Provision Loss Rates
	1H11	2H11	1H12	2H12	1H13
Group	0.32%	0.31%	0.36%	0.43%	0.27%
New Zealand Mortgages	0.06%	0.07%	0.05%	0.03%	0.02%

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1. 12 month average

2. Excludes revolving credit facilities

39

New Zealand Geography – credit quality

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Net impaired assets Total provision charge
NZDm
NZDm 1,685
400 325
300
1,463 131 105
200 85 98 96
43
1.74% 1,307 100
1,230 0
1,169
1.50% -100
1.38% 1H10 2H10 1H11 2H11 1H12 2H12 1H13
990
1.26%
1.23% 884 IP Charge CP Charge
90+ days delinquencies
1.02%
(New Zealand Division)
0.90%
1
1.2% Mortgages Commercial Rural
0.8%
0.4%
Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13
0.0%
Net Impaired Assets NIA as % GLA 2007 2008 2009 2010 2011 2012 2013
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1. Spikes in 2012 Commercial 90 day delinquencies are primarily due to internal classifications rather than any deterioration in underlying credit quality.

40

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack Divisional Snapshots

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AUSTRALIA DIVISION

The Australian Franchise continues its trend of above system volume growth

Household deposits growth[1 ]

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Indexed Sep 2009 = 100
150 ANZ Peer 1 Peer 2 Peer 3 148.7
143.6
140
130 130.7
120 121.9
110
100
90
Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Feb 13
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Household lending growth[1 ]

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Indexed Sep 2009 = 100
150 ANZ Peer 1 Peer 2 Peer 3
142.4
140
132.5
130
122.8
120
118.3
110
100
90
Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Feb 13
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Australia Division Net loans and advances & Deposits

Corporate & Commercial Banking Net loans and advances & Deposits

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Net loans and advances Deposits [3 ]
$b $b
7%
CAGR [2 ]
8%
55 56 58 61 63 CAGR [2 ]
37 40 41 43 44
1H11 2H11 1H12 2H12 1H13 1H11 2H11 1H12 2H12 1H13
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Net loans and advances Deposits
$b 7% $b
CAGR [2 ]
231 [237 248 254 262 ] 10%
CAGR [2]
120 [127 ] [133 141 146 ]
1H11 2H11 1H12 2H12 1H13 1H11 2H11 1H12 2H12 1H13
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1. Source: APRA Banking statistics

2. Represents annualised CAGR

3. Excludes Corporate Banking deposits which are included in the IIB division deposits (Corporate Deposits as at Mar 13 half: $5.8b Sep 12 half: $6.2b; Mar 12 half: $5.8b; Sep 11 half: $6.3b; Mar 11 half: $6.3b) 42

AUSTRALIA DIVISION

Strong mortgage performance

• Strong volume growth

• Increase in mortgage market share from 14.5% (Feb 12) to 14.7% (Feb 13)[1]

• Above system mortgage growth for 13 consecutive quarters[1 ]

• Leveraging our network capability and driving growth from other channels delivered a 10% increase YOY in proprietary mortgage sales

• Divisional margin improved 3 bps HOH as a result of active management of pricing, basis, discounting, broker commissions, and an increase in proprietary mortgage sales

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Mortgages growth
Mortgage FUM Number of accounts
$b „000
188 884
182 871
179 862
Mar 12 Sep 12 Mar 13 Mar 12 Sep 12 Mar 13
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Asset quality remains strong

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Dynamic Loan to Valuation Ratio
% Portfolio Portfolio >90% LVR
60% = 4.5% (Mar 13)
50%
40%
30%
20%
10%
0%
0-60% 61-75% 76-80% 81-90% 91-95% 95%+
Mar 11 Sep 11 Mar 12 Sep 12 Mar 13
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• Asset quality maintained

• Continued acquisition focus on 75-90% LVR

• Over 95% of mortgage portfolio has a dynamic LVR less than 90%

• No change in underwriting standards

• 90+ delinquencies down 2bps HOH to 41 bps

• Mortgagee in Possession volumes reduced by 13%

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1. Source: APRA Banking statistics excluding the impact of the sale of Origin Mortgage Management Services

43

AUSTRALIA DIVISION

Balancing proprietary and broker mortgage channels

Trend improving in ANZ Proprietary/Broker sales mix…

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45% 49% 51%
55% 51% 49%
1H12 2H12 1H13
Broker Proprietary
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• Program of initiatives executed to strengthen proprietary mortgage capability

• Leveraging our network capability and driving growth from alternative proprietary channels has increased the proportion of proprietary sales from 45% to 51% in the last 12 months

• Mortgage sales to C&CB customers has been a focus and has increased 36% PCP

• Broker originated loans deliver strong returns and remain an important source of high value new customers with average new loan sizes 23% higher than branch originated loans

… noting customer preferences generally are shifting towards the Broker channel

Major banks‟ new lending by channel[1 ] %, 12 months to September 2012

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4% 3%
Call centre
10% 10% Mobile lenders
44% 41% Branches
42% 46% Broker
2011 2012
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Broker channel remains an important channel given shifting customer preferences

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Channel mix of new-to-bank Average new loan size [2 ]
mortgage customers
% $‟000
100% +23% 308
Proprietary
80%
60%
251
40% Broker
20%
0%
Proprietary Broker
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1. Including ANZ, NAB (excl. Ubank), CBA (excl. BankWest), WBC (excl. St George). Note 2011 is based on 12 months to June 11 2. Jan 2013 YTD

44

AUSTRALIA DIVISION

Corporate & Commercial Banking growing strongly

• 1H13 cash profit up 8% HOH driven by strong asset growth and tight cost control

Cash Profit movement – 1H13 v 2H12[3 ]

• Strong volume growth with net loans and advances up 9% and deposits up 7% over the 12 months to March 2013

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$m 7 589
7
33 3
4
543
Up 8%
2H12 Volume Margin Other Expenses Prov- 1H13
isions
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• Asset growth over past 12 months has outperformed system growth in the business lending market[1]

• Overall margin flat with improvement in lending margin offset by impact of lower interest rate environment and deposit price competition

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Deposits [2 ]
$b
+7%
41 43 44
Mar 12 Sep 12 Mar 13
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Lending
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$b +9%
63
61
58
Mar 12 Sep 12 Mar 13
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1. System represents business lending as reported in RBA Lending and Credit Aggregates monthly data series, scaled to APRA total lending to business (excluding APRA non-fin corps lending) data series on a quarterly basis

2. Excludes Corporate Banking deposits which are included in the IIB division deposits (Corporate Deposits as at Mar 13 half: $5.8b Sep 12 half: $6.2b; Mar 12 half: $5.8b; Sep 11 half: $6.3b; Mar 11 half: $6.3b) 45

3. Numbers reported post tax

AUSTRALIA DIVISION

Corporate & Commercial Banking remains well managed

• Strong growth in cross sell revenue led by sales of mortgages to C&CB customers up 36% and Trade up 15% PCP

• Credit quality is well controlled and stable with a weighted average customer credit rating of 6.2 over the last 3 halves

• Focus on productivity has improved operational efficiency with revenue per FTE improving 4% HOH and 10% PCP and operating expenses per FTE down 1% HOH and up 3% PCP

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Whole of customer focus delivering 11%
cross sell revenue growth
Retail Institutional Wealth
$m
+11%
600
500
400
300
200
100
0
1H12 2H12 1H13
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Revenue per FTE up, cost per FTE declining

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Revenue / FTE (LHS)
$‟000 $‟000
Operating Expenses / FTE (RHS)
600 300
580 280
560 260
540 240
520 220
500 200
480 180
460 160
1H12 2H12 1H13
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Asset quality being maintained

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Customer Credit Rating (CCR) Profiles by EAD
Weighted
6.2 6.2 6.2
Avg. CCR
3% 3% 3%
Impaired 8-10 10% 10% 10%
7-8
6 31% 33% 31%
Fair 5 31% 32% 32%
4 16% 14% 15%
Strong 0-3 10% 8% 9%
Mar 12 Sep 12 Feb 13
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46

AUSTRALIA DIVISION

Corporate & Commercial Banking is winning business through customer growth driven by a differentiated value proposition

• Leveraging ANZ‟s super regional advantage and „connectivity‟ brand awareness (cross border referrals up 33% PCP)

• Focus on innovation to meet changing customer needs (23,000 downloads of ANZ FastPay app)

• Improving Banker capability

• 1,300 staff up-skilled (super regional, credit and sales skills)

• Enhanced sales tools and processes

ANZ FastPay - Australia‟s first mobile payment App for small business

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Winner of Winner Trailblazer Award „Innovative in for „Channel Mobile Excellence in Payments Mobile – Award‟[2 ] Payments‟[3 ]

ANZ‟s super regional offering is front of customers‟ minds

Customer numbers increasing

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Brand Metric: “Can Service My Business Needs Across Customer numbers
Australia, NZ and Asia” [1 ] („000)
+9%
(%)
40 ANZ Peer 1 Peer 2 Peer 3 895
870
818
35 35.3
29.9
30 29.7
27.1
25
Mar 11 Sep 11 Mar 12 Sep 12 Feb 13 Mar 12 Sep 12 Mar 13
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1. DBM Business Financial Services Monitor, 3-month rolling average. Defined as the proportion of all commercial banking customers with $1m to less than $40m turnover, who think 'Can service my business needs across Australia, New Zealand and Asia' applies to each bank

2. Financial Insights Innovation Awards (FIIA) 2013

3. 2013 Banking & Payments Asia Trailblazer Awards

47

AUSTRALIA DIVISION

The Banking on Australia program

The „Banking on Australia‟ program responds to changing customer expectations and the competitive domestic banking landscape. It‟s about putting customers in control of their finances and making it easy for them to bank with us.

Investing $1.5 billion over five years to 2017 to reshape the way we do business

• Transforming our distribution network to deliver an improved customer experience through presenting the full array of ANZ‟s banking, wealth and institutional solutions

• Building our online and digital banking capabilities

• Simplifying our products and processes to free up productive time and make doing business easier for staff and customers

• Leveraging the connectivity of our unique super regional footprint

• Building the capability of our people to meet changing customer needs through better training, support, insights and customer analytics

Aiming to be the best connected, most respected bank across the Asia Pacific region

• Acquiring more quality customers than any other major domestic bank

• Achieving the highest customer satisfaction of the major banks

• Being the #1 Corporate and Commercial Bank

• Building our lead in digital and mobile banking

• Continuing to build a highly engaged workforce proud to work for ANZ

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48

AUSTRALIA DIVISION

Digital - central to banking in the future; we are the market leader in mobile banking platforms

Building our online and digital banking capabilities

• Digital channels will define the way we operate

• Focusing on customer acquisition and servicing and deepening the customer relationship

• Recognised leader in mobile banking platforms

• ANZ goMoney – over 1m users and 1m logons in a day

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• ANZ Fast Pay – winner „Innovative in Mobile Payments award‟[1] & Trailblazer Award for „Channel Excellence in Mobile Payments‟[2 ]

• ANZ Transactive for mobile – 2,000 users processed $9b in payments[3 ]

Developing deeper analytic capabilities; enhancing our understanding of customers and ability to tailor offerings

Data Examples

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Customer
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• Name, Birth • Unified view of customers relationship with ANZ providing date, actionable customer insights

Address, income, channel preferences for sales and contact Profitability attrition risk

• Analytic capabilities enable tailored personalised offers across Retail and Commercial customers

Transactions, interactions, • First phase of warehousing platforms already appointments commissioned

ANZ-related tweets, posts

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1. 2013 Banking & Payments Asia Trailblazer Awards 3. As at May 2013

2. Financial Insights Innovation Awards (FIIA) 2013

49

IIB DIVISION

IIB growing in line with strategy while improving roductivi p ty

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

Operating Income growth 1H13 v 2H12
16% 16%
6%
3%
1%
IIB APEA ex Australia New Zealand Asia
Partnerships Institutional Institutional Institutional
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• Income growth continues

• IIB income growth of 3%, with Asia organic franchise income up 8%

• Improved connectivity and growing volumes have countered margin pressures

• Markets Trading and Balance Sheet grew 47% from strong customer flow and tightening credit spreads – average traded VaR down, now 47% lower than 2011

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Operating Income growth 1H13 v 2H12
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• We have a substantial business in Asia

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

40% 47%
32%
6% 14%
-6%
Global Trade & FX Commercial Capital Markets
Loans Supply Asia Markets Trading &
Chain Balance
Sheet
----- End of picture text -----

• Recognised as a Top 4 Corporate Bank in Asia[1]

• Now generating over USD2bn per annum in income; CAGR of 46% since 2007

• In line with strategy, diversifying revenue streams to reduce reliance on lending

• Increased focus on flow and value added products such as markets, trade and cash management

Volume growth 1H13 v 2H12

• Targeting less lending reliant FIG and Resource customer segments – trade volumes grew 17% and 13% respectively

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

17%
14% 15%
10%
Cross Border FX Turnover Retail Lending Trade & Supply
Lending Chain Lending
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• Positive JAWS of 4% through disciplined cost management and productivity initiatives

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All growth rates reflect 1H13 v 2H12 unless otherwise stated 1. Greenwich Large Corporate Banking Survey, 2013

50

IIB DIVISION

Increasing earnings diversity and focusing on higher return roducts and ments p seg

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

Increasing contribution of flow and value
Diversifying Income by Geography
added product
1H13 1H13
Australia
Asia Pacific, 23% Transaction
Europe & Global Loans 26% Banking
America 21%
30%
46%
40%
1H11 52% 1H11 Flow &
46%
Value Added
8% Retail 11% 11% 33%
5%
6% 34% Global
8% Markets
Partnerships
New Zealand
Operating Income Growth Operating Income Growth
2year CAGR 17% 2 year CAGR
19%
9% 13%
6%
4%
-3%
Australia New Zealand APEA ex- APEA -5%
Partnerships Institutional Global Loans Retail1 Markets FX Trade & Supply
Chain
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1. Normalised for RBS acquisition non-recurring gains

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51

IIB DIVISION

Maintaining a leading position in Australia / New Zealand and ainin reco nition in Asia g g g

Leading in Priority products

Winning Flow & Value Added Deals

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Foreign Exchange & Commodities

• Number 1 primary supplier of spot FX and forward FX in Australia (East & Partners 2012)

• Best for Asian Currencies & Best for Client Service in Asia Time Zone (Euromoney FX Survey 2012)

• Best for FX Options as voted by Financial Institutions (AsiaMoney FX Poll 2012)

• Ranked No. 4 in the 2012 AsiaMoney Commodity Poll (unranked in 2011)

Trade Finance

• Best Trade Finance Bank Australia for 6 years running (Global Finance)

• Best Trade Finance Bank New Zealand for 5 years running (Global Finance)

• Best Trade Bank in Asia Pacific (Trade and Forfaiting Review 2012)

Debt Capital Markets

• No. 1 Mandated Lead Arranger and Bookrunner in Australia / New Zealand (Thomson Reuters LPC 2012)

• Market-leading Syndicated Loan Team in Asia Pacific (AsiaPacific Syndicated Loan House of the Year, APLMA 2012)

• Top four underwriter/arranger in the SGD and Dim Sum Bond Markets

Leveraging ANZ‟s regional network and expertise in Trade & Supply Chain, Cash Management and Debt Capital Markets

USD900 MILLION

Syndicated Receivables Purchase Facility

Pegatron Corporation

Bookrunner, Coordinating Arranger, Facility Agent and Collection Bank October 2012

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• Pegatron is a world leader in the electronic and computing design and manufacturing services industry

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• ANZ provided a scalable supply chain solution to facilitate the purchase of receivables from Apple Inc.

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• This required an in-depth understanding of both companies, skills in structuring and syndicating the large USD900m deal, product expertise, operational controls, as well as appropriate risk appetite

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This deal was recognised as Deal of the Year 2012 by Trade Finance and Best

• Telecommunications & Technology Trade Finance Solution, Taiwan by The Asset in 2013

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52

IIB DIVISION

A focus on growth and scale in Asia to drive im roved returns p

Significant growth achieved since commencing super regional strategy

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

USDm Asia Operating Income
2,109
1,840
+46% CAGR
+11% PCP
1,257
1,135
1,024 [ 1,085 ]
877
622
322
FY07 FY08 FY09 FY10 FY11 FY12 1H12 2H12 1H13
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Volume growth has remained strong

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

Asia Volume growth (1H13 v 1H12)
26% 28%
20%
17%
11%
International Retail Investment & FX Sales Trade Txns
Payments Deposits Insurance Txns
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Achieved scale in core franchise markets

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

USDm Operating Income – FY12 484
390
313
280
244
133
Greater Taiwan Hong Kong China Indonesia Singapore
Mekong
Operating Income – 1H13
303
166 159 180
112
79
Greater Taiwan Hong Kong China Indonesia Singapore
Mekong
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53

IIB DIVISION

Improving income quality whilst continuing to drive volume rowth g

Improving quality of earnings through growth of Non-Interest Income

Driving volumes growth to counter margin pressures and mix changes in our business

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

IIB Operating Income
AUDb
+8% CAGR CAGR
(1H10-1H13)
3.3 3.3
3.1 3.2
2.9 OOI
2.9
2.6 11%
NII
5%
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----- Start of picture text -----

1H10 2H10 1H11 2H11 1H12 2H12 1H13
Net Interest Income Other Operating Income
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Net Interest Margin ex-Markets

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

4.00%
IIB ex Markets Institutional ex Markets
3.60%
3.30%
3.20% 2.91%
3.05% 2.77%
2.80%
2.66%
2.40%
2.54%
2.00%
Strong Trade volume growth in
Priority Segments 1H13 v 2H12 (%)
33%
17%
13%
Resources FIG Commercial
1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13
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54

IIB DIVISION

Growth is focused toward higher return products

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

IIB Return on Equity (Regulatory Capital [1] ) % Basel III Capital Usage Mix
2H12 Basel II 1H13 Basel II 1H13 Basel III
24 5% Other
21
19 3% Retail
17
15
14 14
10 11 18%
7 Partnerships
2
IIB Transaction Global Global Commercial
Banking Markets Loans
35% Global
Loans
Operating Income Growth (CAGR 1H11 – 1H13)
28%
23% Global
Markets
9%
6%
3%
Transaction
16%
Banking
-5%
IIB Transaction Global Markets Global Commercial2 1H13
Banking Loans
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1. Capital represents Average RWA x 8.3% plus Average Capital Deductions (ie partnership investment). PAT normalised to exclude 2H12 Software impairment

2. Represents Commercial Asia-Pacific segment

55

NEW ZEALAND DIVISION

NZ Division is harnessing the benefits of scale to com ete in a lower rowth hi hl com etitive market p g , g y p

As the largest bank in New Zealand …

… we are harnessing the benefits of scale to drive greater value

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

Gross Loans and Advances (NZDm) [1 ]
120
100
80
60
40
20
0
ANZ NZ Peer 1 Peer 2 Peer 3
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----- Start of picture text -----

… in a lower growth, highly competitive
market [2] …
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----- Start of picture text -----

Household Credit Growth YoY % GDP Annual avg. % change
20.0
15.0
10.0
5.0
0.0
-5.0
Mar 00 Sep 00 Mar 01 Sep 01 Mar 02 Sep 02 Mar 03 Sep 03 Mar 04 Sep 04 Mar 05 Sep 05 Mar 06 Sep 06 Mar 07 Sep 07 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12
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• Simplify the business and reduce duplication

  • One management structure

  • One set of systems

  • One process and product set

  • One brand

• Develop a distinctive banking proposition across all businesses. Compared to peers:

  • More branches

  • More ATMs

  • More specialists in local markets

  • Branch network optimised to provide greater coverage of NZ

• Increase cross-sell

  • Grow Markets, Trade and Cash Management revenues in Commercial customer base

  • Grow sales of Life Insurance and Kiwisaver in Retail customer base

• Increase productivity and operational efficiency

  • Become the most efficient bank in New Zealand, reflective of our scale

• 1 Based on Geographic Disclosure Statement data as at 31 December 2012

• 2 RBNZ real gross domestic product and household credit data

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56

NEW ZEALAND DIVISION

Maintained momentum through a period of significant change

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

Consideration up [1 ] Frontline Engagement Increased Cross Sell
76%
35% Growth 1H13 v 1H12
27% •
63% ANZ@work +63%
• Merchant services +12%
• Trade +10%
• Kiwisaver FUM +35%
2010 1H13 2010 1H13 • Insurance sales +34%
Mortgage Share growing [2 ] Deposit Share growing [3 ] Improved Funding Mix
30.3% Loan to Deposit Ratio
30.0%
29.9% 29.5% 199%
173%
2010 1H13 2010 1H13 2010 1H13
Return on Risk Weighted
CTI down Increased Profitability
Assets
1H10 1H13 1H10 1H13
49% 49% 624 728 2.0%
45% 43% 497 0.9%
240
NZ Division NZ Geography PBP NPAT 1H10 1H13
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1. Source: Ipsos Branch Tracker - consumers saying the brand is their first choice or is seriously considered

2. Source: RBNZ, February 2013

3. Source: RBNZ, December 2012

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57

NEW ZEALAND DIVISION

Next phase focused on leveraging our scale

Harness Scale 2010 - 2012

Leverage Scale Scale advantage 2013-2015 2016+

Leverage scale through a focus on service, efficiency and cross sell

• Continue to drive productivity benefits from simplified business model

• Committed focus on productivity and efficiency measures

• Greater focus on service

• Branch upgrades designed around greater sales activities

• Further increase in branch coverage

• Increasing number of business bankers in local branches

Deploying a new modular branch design that requires 20% less floor space

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• Continue to drive cross-sell

• Improve diversity of income base through continuing to grow cross-sell across NZ franchise

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58

GLOBAL WEALTH DIVISION

1H13 Strategic scorecard – Wealth Division

Scorecard Grow relationships with existing ANZ customers:

• Wealth solutions sold to ANZ customers

• Size of ANZ Financial Planning

• Productivity of ANZ Financial Planning

• Direct channel sales

• Drive higher returns from existing businesses:  Grow Retail Life

• Netflows from aligned dealer groups

 Above market FUM growth Simplify the business and leverage global capabilities:  Lower cost to income  Reduce risk  Leverage global model  MySuper & FoFA ready

Comments

• Net increase in Wealth solutions held by bank customers of 9% PCP

• ANZ Smart Choice Super exceeding 800 account openings per week with a funding rate over 36% and day-1 insurance take-up of 50%

• ANZ Financial Planning productivity up 21% PCP and 6% PCP per adviser for risk sales and investment inflows respectively

• Direct Insurance sales to ANZ customers up 17% PCP in Australia and 34% PCP in New Zealand

• Insurance inforce premiums up 10% PCP (Life & GI)

• • Turnaround in netflows from aligned dealer groups (1H13 v 1H12)

• • FUM up 8% PCP, although market share declined 40bps in Australia (6 months to Dec 12)[1 ]

• CTI improved 280 bps PCP to 62% driven by business simplification and leveraging the global model

• New fiduciary and internal governance structure to improve risk compliance and governance

• • Centralised the Chief Investment Office to improve consistency and quality of investment decisions

• • MySuper license application submitted

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1. Source: Plan For Life

59

GLOBAL WEALTH DIVISION

ANZ Smart Choice Super

ANZ Smart Choice Super – a low cost and innovative solution

Visibility

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• See your super alongside other accounts

Over 17,000 accounts already opened



• Never lose your super again

• 24/7 access

36% of these have rolled over  their existing superannuation or commenced contributions

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Choice & Control

• Life stage investments

• Choose how involved you want to be with quality investment options

Activation team now in place with strong customer response

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

ANZ Smart Choice Super fees 
vs other super funds
(from 1 Dec 2012) [1 ]
716
Great Value [1 ]
• One low 521
investment fee 300
(0.50%)

• 42% lower fees
than the average ANZ Average Average
Smart Choice Industry Australian
industry fund Super fund Super fund
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50% of accounts opened also take life insurance through ANZ Smart Choice Super

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1. Note: Fee comparison based on the average total annual Investment Management fees, Performance fees, Administration fees, Asset Management fees and Member fees of 319 superannuation products in Australia (including 126 industry funds), on a $50,000 account balance. Sourced from SuperRatings Pty Ltd's 'Fees Analysis' dated 21/11/2012 analysing fees current at 30/9/2012. All fees are subject to change

60

GLOBAL WEALTH DIVISION

Deepening relationships with existing ANZ Customers

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

Wealth Solutions to Bank Customers [1 ] Direct Investments
Growth in wealth solutions held by ANZ customers Smart Choice Super KiwiSaver [1 ]
(PCP)
ANZ Customers ANZ Customers
(„000) („000)
+278%
10%
9% +16%
7%
Australia New Zealand Total 2H12 1H13 1H12 2H12 1H13
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Direct Insurance Australia

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

Direct Life & General Insurance Sales – Australia
$m
+17%
141
129
120
1H12 2H12 1H13
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Direct Insurance New Zealand

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

Direct Life & General Insurance Sales – New Zealand
NZDm
+34%
24
22
18
1H12 2H12 1H13
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1. Source: ANZ Customer Analytics

61

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

This presentation may contain forward-looking statements including statements regarding our intent, belief or current expectations with respect to ANZ‟s business and operations, market conditions, results of operations and financial condition, capital adequacy, specific provisions and risk management practices. When used in this presentation, the words “estimate”, “project”, “intend”, “anticipate”, “believe”, “expect”, “should” and similar expressions, as they relate to ANZ and its management, are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such statements constitute “forward-looking statements” for the purposes of the United States Private Securities Litigation Reform Act of 1995. ANZ does not undertake any obligation to publicly release the result of any revisions to these forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.

For further information visit

www.anz.com

or contact

Jill Craig Group General Manager Investor Relations

ph: (613) 8654 7749 fax: (613) 8654 9977 e-mail: jill.craig@anz.com

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