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	10
Additional Financial Information	23
Treasury	42
Risk Management	52
Divisional Performance
Australia	73
International and Institutional Banking	88
New Zealand	107
Global Wealth	118

All figures are presented on Cash basis in Australian Dollars unless otherwise noted. In arriving at cash profit, statutory profit is adjusted to exclude non-core items as set out on slide 25 with further information included on pages 75 to 84 of the 2013 Half Year Results announcement

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Mike Smith Chief Executive Officer

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Focus on differentiated growth, productivity and shareholder returns

1. Growth

Diversified, low risk growth outcomes and opportunities

2. Productivity

Step change in productivity and cost

management

3. Shareholder Returns

Driving improved ROE and shareholder returns

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We have built scale, capability and momentum in Asia

ANZ has built a substantial business in Asia

A top 4 Corporate Bank in Asia

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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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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

A differentiated strategy that 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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Greater Mekong includes Vietnam, Cambodia & Laos.

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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Source: Mortgage system based on RBA data. Household deposit system based on APRA banking statistics.
Source: RBNZ, Share of all providers. Mortgages at February 2013, Deposits as at December 2012

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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
Group Australia IIB
-1%
-2% -2%
-3%
-8%
-10%
New Zealand Global Wealth
-2%
-7%
-10%
-13%
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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
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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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Shayne Elliott Chief Financial Officer

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1H13 financial performance

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Cash Profit Movement 1H13 v 2H12 ($m)
$m
89
ROE 14.7% ROE 15.5%
352
3,182
151
110
2,934
152
Up 2% Down 5% Down 8% Down 13% Up 13%
Up 8%
2H12 Net Interest Other Expenses Provisions Tax & OEI 1H13
Cash Income Operating Cash
Profit Income Profit
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Cash Profit Movement 1H13 v 1H12 ($m)

Cash Profit Movement 1H13 v 1H12 ($m)	Cash Profit Movement 1H13 v 1H12 ($m)	Cash Profit Movement 1H13 v 1H12 ($m)	Cash Profit Movement 1H13 v 1H12 ($m)	Cash Profit Movement 1H13 v 1H12 ($m)	Cash Profit Movement 1H13 v 1H12 ($m)	Cash Profit Movement 1H13 v 1H12 ($m)
1H12 Cash Profit	Net Interest Income	Other Operating Income	Expenses	Provisions	Tax & OEI	1H13 Cash Profit
2,896	252	114	(99)	29	150	3,182
	Up 4%	Up 4%	Down 2%	Up 5%		Up 10%

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1H13 financial performance by Division

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Cash Profit by Division 1H13 v 2H12 ($m)
7% 26% 24% 20%
34
78
247
3,182
199
88
2,934
2H12 Cash Australia IIB New Zealand Global Wealth Group Centre 1H13 Cash
Profit Profit
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Cash Profit by Division 1H13 v 1H12 ($m)
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Cash Profit by Division 1H13 v 1H12 ($m)	Cash Profit by Division 1H13 v 1H12 ($m)	Cash Profit by Division 1H13 v 1H12 ($m)	Cash Profit by Division 1H13 v 1H12 ($m)	Cash Profit by Division 1H13 v 1H12 ($m)	Cash Profit by Division 1H13 v 1H12 ($m)	Cash Profit by Division 1H13 v 1H12 ($m)
1H12 Cash Profit	Australia	IIB	New Zealand	Global Wealth	Group Centre	1H13 Cash Profit
2,896	144	40	74	26	2	3,182
	Up 11%	Up 3%	Up 23%	Up 15%		Up 10%

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Operating Income and Net Interest Margin

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Operating Income Mix Net Interest Margin
Net Interest Income Other Operating Income ANZ Group ex-markets
Australia Division
NZ Businesses
27% 26% 3.50%
31% IIB Division ex-Markets
54%
3.00%
73% 74%
69%
2.50%
46%
2.00%
ANZ Australia New Zealand APEA 1H12 2H12 1H13
Group
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Progressing productivity agenda and improving credit ualit q y

Operating Expenses normalised for one-off items[1 ]

Provision Charge

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Individual Provision Charge (LHS)
$m
Collective provision Charge (LHS)
-1% Total Provision Charge as % Avg. net Advances (RHS)
4,100 $m
4,069
1,000 0.75%
4,029 750
4,020
500
0.25%
4,000 250
0
-250 -0.25%
1H10 2H10 1H11 2H11 1H12 2H12 1H13
3,900
Individual provision charge as % of
Gross Loans and Advances
3,800 0.35%
0.30%
0.25%
3,700 0.20%
0.15%
0.10%
3,600 0.05%
1H12 2H12 1H13 1H10 2H10 1H11 2H11 1H12 2H12 1H13
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Excludes software impairment expenses (Sep 12 half: $273m) and expenses related to the NZ Simplification (Mar 13 half: $14m; Sep 12 half: $84m; Mar 12 half: $64m)

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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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Strengthening our position in our home markets - Australia

Household deposits growth[1 ]

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Indexed Sep 2009 = 100
150 ANZ Peer 1 Peer 2 Peer 3 149
144
140
130 131
120 122
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
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150 ANZ Peer 1 Peer 2 Peer 3
142
140
132
130
123
120
118
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 Net loans and advances
$b 7% $b $b $b
7%
CAGR [2 ]
CAGR [[2 ]]
231 [237 248 254 262 ] 10% 61 63
CAGR [2] 55 56 58
120 [127 133 ] [141 146 ] 37
1H11 2H11 1H12 2H12 1H13 1H11 2H11 1H12 2H12 1H13 1H11 2H11 1H12 2H12 1H13 1H11
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) 16
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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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Strengthening our position in our home markets - New Zealand

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Lending & deposit growth
Mortgage Growth v System [1 ]
1H13 v 2H12
ANZ System
Lending Deposits
3.9%
6%
2.5%
2.2%
3% 1.7%
2%
0.8%
1% 0.5%
Retail Commercial 1H12 2H12 1H13
Small Business Banking
Cost to income ratio
Lending and Deposits %
%
Customer Lending Customer Deposits
NZDb
60
55.7
30
55 51.5
25 49.8
20 50 46.5
44.7
15
45
10
40
5
0 35
1H11 2H11 1H12 2H12 1H13 1H11 2H11 1H12 2H12 1H13
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Data source: RBNZ NZ C6 and ANZ‟s submission to RBNZ. 1H13 data is as at Feb 13

Capturing faster growing regional flows in trade, ca ital and wealth p

Significant growth achieved since commencing super regional strategy

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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

Asia Volume growth (1H13 v 1H12)

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26% 28%
20%
18%
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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USDm Operating Income – FY12 484
390
313
280
244
133
Greater Taiwan Hong Kong China Indonesia Singapore
1
Mekong
Operating Income – 1H13
303
166 159 180
112
79
Greater Taiwan Hong Kong China Indonesia Singapore
Mekong1
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Greater Mekong – Vietnam, Cambodia & Laos.

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Driving operational efficiency and productivity

Operating Expenses Movement by Division

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$m
4,386
Invested over $400 million in growth and
transformation initiatives across the bank
Includes $64m during the half
related to NZ
Simplification
Includes $8m Includes $14m
4,133 software related to NZ
impairment Simplification
273
15 13
4,029 4,034
3,997
6 7
84 10
2H11 1H12 2H12 Software NZ 2H12 Australia IIB New Global Group 1H13
Impair. Simpli- Normal- Zealand Wealth Centre
fication ised
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Focused on increased productivity

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Cost to Income Ratio Australia Operations
50% Growth 1H13 v 1H12
5%
48.0%
48% 47.7%
47.4%
47.3%
-13%
Expense Volume
46%
IIB Operations
44.4% Growth 1H13 v 1H12
8%
44%
FY14 CTI Target adjusted for
prior period one-off items [1 ]
-13%
42%
1H11 2H11 1H12 2H12 1H13
Expense Volume
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FY14 CTI Target of 43.8% based on a 2% reduction to FY12 CTI adjusted for the gain on sale of Visa shares ($291m), expenses relating to capitalised software impairment ($273m), forgone amortisation costs ($25m) and NZ Simplification ($149m)

Credit quality in line with expectations

Global Institutional Sub Investment Grade Exposures continue to decline

Gross Impaired Assets

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$m
160 40%
5,600 -10%
5,353
5,400
140 35% 5,196
5,200
5,000
120 30%
4,800 4,685
4,600
100 25% 4,400
4,200
80 20% 1H12 2H12 1H13
60 15%
New Impaired Assets
40 10% $m
2,356 -15%
20 5% 2,500
1,847
2,000
1,571
0 0%
1,500
FY09 FY10 FY11 FY12 1H13
1,000
Group CP/CRWA Ratio (Basel III)
500
Group CP/CRWA Ratio (Basel II)
0
Institutional Sub-Investment Grade Exposure 1H12 2H12 1H13
CP / Credit RWA (bps)
Institutional (% of sub-investment grade lending)
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Driving capital efficiency and superior returns for shareholders

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Capital levels are well positioned Return on Equity
(CET1) movement 1H13 v 2H12
1.3%
15.5% 15.5%
14.7%
0.5%
9.8% 10.0% [10.3% ] ROE up 80 bps
9.5%
8.2%
7.8% 8.0% 1H12 2H12 Earnings Additional 1H13
7.5%
Growth Equity
2.5% Capital
Conservation
Economic Profit
Buffer
movement 1H13 v 2H12
4.5% CET1 248
35
Minimum 1,412
65
46
1,240
Economic Profit up 14%
Sep 11 Mar 12 Sep 12 Mar 13
APRA Basel 3 Internationally Harmonised Basel 3 2H12 Cash Economic Imputation Cost of 1H13
Profit Credit Cost Credits Capital
Adjustment
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack Additional Financial Information

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Overview of financial performance

	1H13	Growth vs	Growth vs
	$M	2H12	1H12
Cash Profit	3,182	+8%	+10%
Operating Income	9,086	Flat	+4%
Expenses	4,034	-8%	-2%
Provisions	599	-13%	+5%
Statutory Net Profit After Tax	2,940	+7%	+1%
EPS (cents)	117	+7%	+7%
Dividend per Share (cents)	73	n/a	+11%
Net Interest Margin	2.25%	-3bps	-10bps
Customer deposits	344,135	+5%	+12%
Net loans and advances (incl. acceptances)	441,980	+3%	+7%

All figures other than Statutory Net Profit after Tax and Dividend are presented on Cash basis

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Adjustments between Statutory Profit and Cash Profit

	1H13
	$M

Statutory profit	2,940
Adjustments between statutory profit and cash profit
Treasury shares adjustment	53
Revaluation of policy liabilities	19
Economic hedging	192
Revenue and net investment hedges	16
Structured credit intermediation trades	(38)
Total adjustments between statutory profit and cash profit1	242
Cash profit	3,182

Refer to pages 75 to 84 of the ANZ Consolidated Financial Report Dividend Announcement and Appendix 4E for an analysis of the reconciliation of statutory profit to cash profit

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Cash Net Profit after Tax

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Net Profit after Tax Net Profit after Tax by Division
Movement 1H13 v 2H12 Movement 1H13 v 2H12
$m
$m
34
89 78
247
352
3,182 3,182
151
199
110
88
2,934 2,934
152
Up Down Down Down Up Up Up Up Up
2% 5% 8% 13% 13% 7% 26% 24% 20%
Cash Profit up 8%
2H12 Net Other Expenses Provisions Tax 1H13 2H12 Australia IIB New Global Group 1H13
Interest Operating & OEI Zealand Wealth Centre
Income Income
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Return on Equity and Economic Profit

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Return on Equity Economic Profit
Movement 1H13 v 2H12 Movement 1H13 v 2H12
1.3% 248
15.5% 15.5% 35
0.5%
14.7% 1,412
65
46
1,240
ROE up 80 bps Economic Profit up 14%
1H12 2H12 Earnings Additional 1H13 2H12 Cash Economic Imputation Cost of 1H13
Growth Equity Profit Cr Cost Adj Credits Capital
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Global Markets, Australia Retail and Corporate & Commercial Banking the key drivers of income growth in 1H13

Operating Income by Division Movement 1H13 v 2H12

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$m
9,128
37 9,086
21
100 0
91
8,837
291
Up 2% Up 3% Flat Up 3%
Operating Income up 3% ex Visa Gain
Operating Income flat
2H12 Gain on 2H12 Australia IIB New Global Group 1H13
Visa sale Normalised Zealand Wealth Centre
2H12
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Australia

Above system growth in mortgages and strong growth in C&CB
Active margin management outweighing deposit pricing pressures

New Zealand

Margins impacted by increased competition and customers moving from variable to lower margin fixed mortgages offsetting positive contribution from lending growth

International & Institutional Banking

Margins lower due to pricing pressure in deposits and increased competition
OOI higher driven by growth in Global Markets and higher customer volume

Global Wealth

Operating income growth predominantly driven by strong gains in the investment market, an improvement in lapse experience and higher inforce premiums

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Continue to diversify operating income by customer, product and geography

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Operating Income Mix by Division (1H13)
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Operating Income Mix by Geography (1H13)

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Additional 4% of Network
Transaction revenue [1] sourced from APEA
Banking Retail Asia
Global Pacific
Loans
8% Asia Partnerships
4%
9%
3% New Zealand
Retail
5% APEA
Global IIB New New Zealand 16%
Markets 13% 37% Zealand 7% Commercial
12% Funds
8% Global 3% Management New Zealand
Wealth 3% Insurance Australia 16%
Australia 2% Private Wealth 68%
43%
17%
Australia
Corporate &
Commercial
26%
Australia
Retail
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Network revenue represents income booked in a jurisdiction different to where a client relationship is managed

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Key drivers of operating income

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Operating Income
Operating Income Mix by Line of Business
movement 1H13 v 2H12 [1 ]
Other 5% 7% $m
Payments & Cash Management
51 9,086
Term Deposits Clearing & 20% 17%
International Payments 144
Merchant Cash Management &
Acquiring Savings Accounts
17% 16% 128
Risk Management
FX & General Insurance 8,835
Commodities
Rates and Investments and
Credit Superannuation
72
Life Insurance Wealth Distribution and
Advice
Financing & Capital
Management 58% 60%
Mortgages Business Loans
Trade and Supply
Cards Chain
Personal Loans Specialised Finance
1H12 1H13
Other 1H13
2H12
Normalised
Management
Management
Payments & Cash Financing & Capital Risk Management
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Note: 2H12 operating income adjusted to exclude the Visa share sale

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Operating Income by line of business

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Financing & Capital Management Payments & Cash Management
$m 27 5,412 $m
18 1,625
28
12
63
3
11 1,553
20
5,284 73
7
Up 2% Down 4%
2H12 Mortgages Business Cards Personal Trade & Other 1H13 2H12 Clearing & Cash Mgmt. Term Merchant 1H13
Loans Loans Supply Chain International & Savings Deposits Acquiring
Finance Payments Accounts
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Risk Management Other Income Streams
$m 18 1,496 $m 37
14
23 68
3
28 624
71 31 23
7 573
1,352
Up 11% Up 10%
2H12 FX & General Rates & Managed Life Wealth Other 1H13 2H12 Balance Enablement Partnerships Other 1H13
Commod. Insur. Credit Inv. & Insur. Distrib. & Sheet
Superann. Advice Trading
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Growth in Institutional and Wealth increasing contribution of Other O eratin Income p g

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Net Interest Income
Operating Income Mix
movement 1H13 v 2H12
Other Operating Income Net Interest Income 111 36 6,236
15% 15% 36
1
31% 6,126
46%
NII Up 2%
2H12 Australia IIB New Other 1H13
92%
Zealand
85% 85% Other Operating Income
69% movement 1H13 v 2H12
54% 3,002
136 1 23 2,850
2,711 1
8%
291
20
ANZ Australia New IIB Global Normalised OOI Up 5%
Group Zealand Wealth
0% 2% 0% 3% 3%
Operating Income Growth 1H13 v 2H12
2H12 Gain on Visa Sale 2H12 Normalised Australia IIB New Zealand Global Wealth Group Centre 1H13
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Net Interest Margin – movement summary

bps	Group	Australia New Zealand IIB Divisions	Australia New Zealand Geographies
2H12 NIM ex-Markets	267	250 259 291	276 260
Funding & Asset Mix	2	0 1 -1	3 1
Funding Costs	-5	-4 -3 -10	-6 -2
Deposits	-2	-2 1 -4	-2 2
Assets	4	9 -7 0	8 -7
Other	1	0 -2 1	0 -3
Movement ex-Markets	0	3 -10 -14	3 -9
1H13 NIM ex-Markets	267	253 249 277	279 251

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Margins – Group performance

Net Interest Margin movement 1H13 v 2H12

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bps
2H12 NIM 1H13 NIM
Incl. Markets Incl. Markets
228 225
2
267 1 267
4
5
2
NIM ex-markets flat
2H12 Funding & Funding Deposits Assets Other 1H13
Asset Mix Cost
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Key drivers of NIM movement

Funding & Asset Mix

Reduced reliance on wholesale funding

Funding Costs

Lower earnings on capital and rate insensitive deposits due to declining interest rates, partially offset by stabilising wholesale funding costs

Deposits

Continued strong competition for deposits across all divisions

Assets

Asset repricing benefits in Australia offset by margin pressure in New Zealand due to increased competition and customers moving from variable to lower margin fixed mortgages

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Net Interest Margin – Divisional trends

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Divisional Margin Contribution Australia Division
movement 1H13 v 2H12 movement 1H13 v 2H12
NIM ex. Mkts. bps NIM bps
2
9 253
0
267 3 267 250 0
2
0
4
3 2
NIM ex-markets flat Up 3 bps
2H12 Australia New IIB Global Corporate 1H13 2H12 Funding & Funding Deposits Assets Other 1H13
Zealand Wealth Centre Asset Mix Cost
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International & Institutional Banking
movement 1H13 v 2H12
NIM ex. Mkts. bps
291
0 1 277
1
10 4
NIM ex-markets down 14 bps
175
165
NIM including-markets down 10 bps
Incl. Incl.
Markets Markets
2H12 Funding & Funding Deposits Assets Other 1H13
Asset Mix Cost
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New Zealand Division movement 1H13 v 2H12

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NIM bps
1
259 1
3
249
7
2
Down 10 bps
2H12 Funding & Funding Deposits Assets Other 1H13
Asset Mix Cost
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Net Interest Margin drivers and volume trends

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Net Interest Income 1H13 v 2H12
Net Interest Margin
Group Ex-Markets Australia Division
ANZ Group ex-markets
flat Up 3 bps Australia Division
2.4%
2.3%
NZ Division
IIB Division ex-Markets
1.2%
3.50%
0%
Volume Margin Volume Margin
3.00%
IIB Ex-Markets New Zealand Division
Down 14 bps Down 10 bps
1.9% 4.1%
2.50%
-3.9%
-4.8%
2.00%
Volume Margin Volume Margin
1H12 2H12 1H13
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Operating Expenses

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Operating Expenses by Division
Operating Expense growth
movement 1H13 v 2H12
1H13 v 2H12 1H13 v 1H12
$m
4,386 -1%
-2% -2%
-3%
43
-8%
-10%
168 Group Australia IIB
71
1H13 v 2H12 1H13 v 1H12
4,034
36
34
Down Down Down Down Down -2%
3% 10% 13% 7% 15%
Operating Expenses down 8% -7%
-10%
1
2H12 Australia IIB New Global Group 1H13 -13%
Zealand Wealth Centre New Zealand Global Wealth
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Includes $273m software impairment and $84 New Zealand simplification expenses

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Operating Expense trends

Operating Expenses by Category movement 1H13 v 2H12

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4,386 6
7
207
4,034
79
65
Operating Expenses down 8%
2H12 Personnel Premises Computer Restruct- Other 1H13
uring
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Operating Expenses Mix by Category 1H13

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Other
16%
Restructuring
2%
15% 58% Personnel
Computer
9%
Premises
Operating Expenses
Mix by Division 1H13
Australia
Group
Centre 5%
36%
Global
11%
Wealth
12%
36%
New
Zealand International
& Institutional
Banking
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Continue to diversify balance sheet and increase ro ortion of customer fundin p p g

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Customer Lending & Deposits by Geography
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Customer Lending [1 ] Customer Deposits
$b
Loan to Deposit Ratio
500
Sep 2008 Mar 2013
442
171% 128%
450 428
413
400
350 344
350 328
308
300
250
205
200
150
100
50
-
Sep Mar Sep Mar Sep Mar Sep Mar
2008 2012 2012 2013 2008 2012 2012 2013
Australia New Zealand APEA
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Customer Lending[1] movement 1H13 v 2H12

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$m 6 442
1
7
428
Customer Lending up 3%
2H12 Australia New APEA 1H13
Zealand
Customer Deposits movement 1H13 v 2H12
$m 12 344
3
1
328
Customer Deposits up 5%
2H12 Australia New APEA 1H13
Zealand
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Customer lending represents Net Loans & Advances including acceptances

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Balance Sheet composition by Geography

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Customer Lending [1] by Geography Customer Deposits by Geography
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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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
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Customer Deposits by Segment

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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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Customer lending represents Net Loans & Advances including acceptances

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack Treasury

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Strongly capitalised under new Basel 3 rules

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Capital levels are well positioned (CET1)
9.8% 10.0% [10.3% ]
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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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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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.

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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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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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.

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)

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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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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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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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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Collective Provisioning Coverage reflects Global Institutional Portfolio credit quality improvement

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Global Institutional Sub Investment Grade [1]
Trend in Global Institutional composition
Exposures continue to decline
$b Global Institutional Credit Exposure CRWA
160 40% Rate [2 ]
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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Sub-investment grade defined as exposures with a rating below BBB-
CRWA Rate defined as Credit Risk Weighted Assets as a percentage of Exposure at Default (EAD)

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

$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
Individual Provision Charge by Region
$m
1,062
1,200
915
1,000
761
722
800 618
595 595
600
400
200
0
1H10 2H10 1H11 2H11 1H12 2H12 1H13
Australia New Zealand APEA
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Collective Provision Charge by Source

1H13 ($m)	Risk Impact	Lending Growth	Portfolio Mix	Economic Cycle & Concentration	Total
Australia Division	(13)	32	(3)	0	16
International & Institutional Banking	(11)	31	(3)	0	17
New Zealand Division	5	4	(14)	(25)	(30)
Global Wealth	(1)	1	1	0	1
Other	0	0	0	0	0
Total	(20)	68	(19)	(25)	4

2H12 ($m)	Risk Impact	Lending Growth	Portfolio Mix	Economic Cycle & Concentration	Total
Australia Division	1	30	(13)	(45)	(27)
International & Institutional Banking	(27)	38	3	(198)	(184)
New Zealand Division	5	6	(1)	(29)	(19)
Global Wealth	(1)	0	0	0	(1)
Other	0	0	0	4	4
Total	(22)	74	(11)	(268)	(227)

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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% 40% 46%
41%
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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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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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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----- Start of picture text -----

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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Control List and Risk Grade Profiles

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

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 10p Mar 11 Sep 11 pMar 12 Sep 12 Mar 13p
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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Sub-investment grade defined as exposures with a rating below BBB-

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

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$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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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

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$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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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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EAD excludes amounts for „Securitisation‟ and „Other Assets‟ Basel asset classes

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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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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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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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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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Sub-investment grade defined as exposures with a rating below BBB-

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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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
6.8% Companies and/or their subsidiaries
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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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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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	Mortgages have low loss rates	Mortgages have low loss rates	Mortgages have low loss rates	Mortgages have low loss rates	Mortgages have low 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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One month or more ahead of repayments. Excludes funds in offset accounts.
% of Portfolio of Instalment Loans. Excludes funds in Equity Manager Accounts.

New Zealand - Mortgages

Portfolio statistics	Portfolio statistics	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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12 month average
Excludes revolving credit facilities

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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Spikes in 2012 Commercial 90 day delinquencies are primarily due to internal classifications rather than any deterioration in underlying credit quality.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack Australia

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Australia Division

Strategic context

ANZ Australia outcomes

Performing strongly across our portfolio

Strengthening the Franchise

A strong 1H13 result, broadly based across our businesses[1] :
A strong domestic franchise is critical to the success of ANZ‟s super regional strategy, driving Group earnings and returns
NPAT up 7%, 3 bps margin improvement, operating expenses down 3%, CTI down 200 bps to 37.9%, ROA up 5 bps
ANZ is targeting above peer growth in our key segments
Above system volume growth, asset quality maintained

In a changing credit environment

Traditional Banking Market Share grew from 14.0% to 14.3% over the 6 months to Mar 2013[2 ]
The domestic macroeconomic environment including credit growth outlook remains relatively subdued
Retail customer satisfaction restored to 2011 levels from 76.0%[3] to 80.0%[4 ]
A diversified channel strategy is key to connecting customers
11% increase in C&CB cross sell driven by mortgage and trade product sales

By meeting customers‟ needs

Continue to lead our peers in “servicing customers‟ business needs across Australia, NZ & Asia”[5 ]
Customer banking preferences are changing. Customers want:

Investing for the future

Mobility and flexibility around their banking
We launched the Banking on Australia program to supercharge the transformation of our Australian business
A better customer experience
Digital and mobile channels are lowering cost to serve, providing common platforms and creating further revenue opportunities
Greater understanding of their needs and targeted offerings

And engaging in sustainable productivity

Transforming our distribution network to reduce branch footprint costs and improve frontline productivity
ANZ will improve operational efficiency by leveraging global hubs and shared platforms designed & built with the customer in mind
Simpler Banking productivity initiatives are underway delivering tangible benefits

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All comparisons are 2H12 compared to 1H13 and on a cash basis unless otherwise noted
Source: Roy Morgan Research: Aust Pop‟n aged 14+, rolling 12 months, Trad Banking Consumer Market (Deposits, Cards & Loans), Peers: CBA (excl Bankwest), NAB, Westpac (excl Bank of Melbourne & St George)
Source: Roy Morgan Research. Base: ANZ MFI Customers, aged 14+, rolling 6 months to September 2012 4. Source: Roy Morgan Research. Base: ANZ MFI Customers, aged 14+, rolling 6 months to March 2013
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

The Australian Franchise continues its trend of above system volume growth

Household deposits growth[1 ]

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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
140
132
130
123
120
118
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
$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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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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Source: APRA Banking statistics
Represents annualised CAGR
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) 75

With a focus on margin management, cost control and asset quality ensuring growth in returns

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Net interest margin & Net interest income Cost to Income ratio
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Net Interest Income (LHS) NIM (RHS) %
$m % 41.8
3,300 2.60
39.9
3,200
2.55
37.9
3,100
2.50
3,000
2.45
2,900
2,800 2.40
1H12 2H12 1H13
1H12 2H12 1H13
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Asset quality maintained

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90+ Days Past Due Rates
Mortgages 1 Consumer Cards
1.8% Commercial Lending
1.3%
0.8%
0.3%
1H12 2H12 1H13
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Excludes Corporate Banking

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Return on Average Assets
%
1.09
1.04 1.04
1H12 2H12 1H13
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Strong broad based 1H13 performance

A strong 1H13 result with volume, margin and expense management all contributing

Australia Division Cash Profit[2 ]

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$m
+7%
1,500
+8%
589
1,000 617 543
500 +6%
782 826
662
0
1H12 2H12 1H13
Retail Commercial
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Above system asset growth in Retail (Mortgages) and strong asset growth in C&CB (Business Banking, Small Business Banking and Esanda)
Asset growth largely self-funded with the majority of our above system deposit growth coming from Retail savings products
NIM improved 3 bps HOH and 8 bps PCP due to disciplined margin management, partly offset by deposit pricing pressures
Operating expenses down 3% HOH[1] and 2% PCP reflecting the focus on productivity and expense management, allowing targeted investment in our Banking on Australia program in 2H13

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

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$m 33 30 1,415
8
50
17
17 Retail
1,327 33 C&CB
Up 7%
2H12 Volume Margin Other Expenses Prov- 1H13
isions
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Credit quality remains sound. Provision charge in line with volume growth after allowing for non recurring write-backs in 2H12
Increasing our whole of bank customer share, focusing on share of wallet and cross sell growth

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Operating expense now on a cash basis - excluding software write off‟s, operating expenses were flat HOH 2. Excludes central costs
Numbers reported post tax

Retail

6% growth HOH in cash profit reflecting strong volume growth combined with NIM expansion and tight cost management
ANZ grew overall market share from 12.9% to 14.3% over the 2 years to Mar 2013 and ranks second among the major domestic peer banks[1 ]
Increased market share in the Affluent segment from 13.4% to 15.2% over the 2 years to Mar 2013, the biggest gain of the major banks[2]
Strong all round result with above system growth in mortgages[3] and deposits and strong growth in personal loans and merchants
Improved customer satisfaction from 76.0%[4] to 80.0%[5] in the 6 months to Mar 2013, moving ANZ to third position of the four major banks

Cash Profit movement – 1H13 v 2H12[6 ]

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$m 28
27 826
15
17
13
782
Up 6%
2H12 Volume Margin Other Expenses Prov- 1H13
isions
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Traditional Banking market share[1 ]

Affluent - Market share[2 ]

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Market share – Traditional Banking
(%)
ANZ Peer 1 Peer 2 Peer 3
2 24
2
2
2 1 02
1
1820
16
14
12
10
Mar 11 Sep 11 Mar 12 Sep 12 Mar 13
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Traditional Banking
(%)
ANZ Peer 1 Peer 2 Peer 3
2 24
2
2 02
1
1820
16
14
12
10
Mar 11 Sep 11 Mar 12 Sep 12 Mar 13
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Source: Roy Morgan Research: Australia Pop‟n aged 14+, rolling 12 months, Traditional Banking Consumer Market (Deposits, Cards & Loans), Peers: CBA (excl Bankwest), NAB, Westpac (excl Bank of Melbourne & St George)
Affluent Market defined as: People with $400k -<$1M in AFS FUM OR Personal Income $150k+
Based on APRA statistics excluding the impact of the sale of Origin Mortgage Management Services
Source: Roy Morgan Research. Base: ANZ MFI Customers, aged 14+, rolling 6 months to September 2012
Source: Roy Morgan Research. Base: ANZ MFI Customers, aged 14+, rolling 6 months to March 2013

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Numbers reported post tax

Strong mortgage performance

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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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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

Asset quality remains strong

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

Balancing proprietary and broker mortgage channels

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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
41% Branches
44%
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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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

Broad based performance in delivering the Retail result

Deposit growth[1] strong driven by Savings, Personal Loans momentum accelerating predominantly Progress Saver

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$b Term Savings Online Savings Transaction
+10%
100
10%
80 10%
10% 13% 13%
13%
60
22% 24% 27%
40
55% 53% 50%
20
0
Mar 12 Sep 12 Mar 13
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Merchant Services increasing market
share [2,3 ]
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21.7%
21.0%
20.6%
Mar 12 Sep 12 Mar 13
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Excludes offset accounts

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$m
+17% 2,503
2,287
2,136
Mar 12 Sep 12 Mar 13
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Customer Acquisition
Total customers
„000
5,040
+1.3%
5,020
5,000
4,980
4,960
4,940
4,920
Mar 12 Sep 12 Mar 13
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ANZ Merchant Services turnover as % of market turnover as reported by the RBA 81 3. Source: RBA acquiring data as at Jan 2013 rolling 12 month average turnover (includes credit, debit and charge cards)

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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Lending Deposits [2 ]
$b
$b +9%
63
61
58
+7%
41 43 44
Mar 12 Sep 12 Mar 13 Mar 12 Sep 12 Mar 13
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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
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) 82
Numbers reported post tax

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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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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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
Financial Insights Innovation Awards (FIIA) 2013
2013 Banking & Payments Asia Trailblazer Awards

Strong productivity focus continues, allowing targeted investment in Banking on Australia in 2H13

Expenses down 3% HOH and 2% PCP, CTI down 200 bps HOH and 390 bps PCP to 37.9%
Australia Operations expenses down 7% HOH and 13% PCP, while maintaining service levels and absorbing volume increases of 5% PCP
Monthly customer complaints down 9% HOH
Sustainable cost reduction through Banking on Australia transformation and simplification initiatives:
Transforming our distribution network to reduce branch footprint costs and improve frontline productivity

Operating Expenses

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$m 2H12
included
$58m
1,494 1,508 software
1,465
impairment
1H12 2H12 1H13
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Focusing on end-to-end process improvement, product simplification and right-sizing enablement functions
Use of Centres of Excellence and Regional Hubs
Turnaround times for Travel Card account openings reduced from 24 to 2 hours
Mortgage Assessment process improvements resulted in an additional 250 customers per month receiving same day approval
75% reduction in Esanda application time
Bangalore hubs becoming more efficient (140 FTE equivalent of volume absorbed)

Revenue & Cost per FTE

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Revenue / FTE (LHS)
$‟000 $‟000
Operating Expenses / FTE (RHS)
300 170
275 145
250 120
225 95
200 70
1H12 2H12 1H13
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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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Banking on Australia

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

Embracing the digital
age to meet customer
expectations
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----- Start of picture text -----

Simplifying products,
processes and
improving productivity
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----- Start of picture text -----

Transforming &
rejuvenating our
distribution channels
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----- Start of picture text -----

Leveraging the
connectivity and super
regional footprint
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----- Start of picture text -----

Building the capability
of our people to meet
customer needs
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Embracing the digital age to meet customer expectations	Simplifying products, processes and improving productivity	Transforming & rejuvenating our distribution channels	Leveraging the connectivity and super regional footprint	Building the capability of our people to meet customer needs
•ANZ goMoney	•Mobility, sales	•43 video conferencing	•Cross-border referrals	•150,000 hours training
Over 1m users	effectiveness &	facilities deployed	up 33% YOY	completed in the last 12
Available on iPhone and Android 1m goMoney logons in 1 day - now exceeding internet banking •ANZ FastPay Launched Oct 2012 23k downloads & 6.5k active merchants (25% of which were new to bank) Winner „Innovative in Mobile Payments Award‟1 Winner of Trailblazer Award for „Channel Excellence in Mobile – Payments‟2	productivity enhanced for 300 Commercial Bankers to date via iPad supported business apps. 1,200 more bankers to be enabled in 2013 •ANZ OneSwitch – 271 business customers have switched to ANZ over the half, taking the total to 927 since 2011 •Re-engineered mortgage fulfilment model - 40% improvement in time to letter of offer •9% reduction in complaints HOH •Streamlining our product offerings to better meet customers needs	•46 new look sales focused branches transformed to date with a total 9000 sqm reduction 78 branches in total will be transformed by Sept 2013 •10% increase PCP in proprietary mortgage sales •13% increase PCP in Wealth sales events across the Retail network •800 iATMs to be introduced from June 2013 (200 installed by end of 2013)	•11% increase in C&CB cross sell •Improved productivity by migrating activities to Hubs 7,000 hours per month freed up for staff in the branch network Increased the number of branches with dedicated International Banking Services from 47 to 62 •16% growth in new international customers	months •Over 3,000 staff trained and accredited to sell mortgages •1,300 staff in 300 branches now accredited to sell wealth products 5,000 simple Wealth sales achieved in 1H13 •3,000 branch staff completed the Sales Accelerator Program, enabling more in-depth A-Z Reviews with customers •Winning Whole of Wallet sales training being delivered to 600 Commercial bankers
•ANZ Transactive for	13 commercial			•850 Commercial staff will
Mobile	products			have completed the
Launched Feb 2013	decommissioned			credit pathways training
1,685 users across	Now 3 simple			by end of FY13
584 clients	categories for credit
9% of all Transactive	card offering – low
users are now using mobile	rate, low fee and rewards
1. Financial Insights Innovation	Awards (FIIA) 2013
2. 2013 Banking & Payments Asia Trailblazer Awards		87

Financial Insights Innovation Awards (FIIA) 2013 2. 2013 Banking & Payments Asia Trailblazer Awards

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack International & Institutional Banking

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IIB growing in line with strategy while improving roductivi p ty

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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
40% 47%
32%
6% 14%
-6%
Global Trade & FX Commercial Capital Markets
Loans Supply Asia Markets Trading &
Chain Balance
Sheet
Volume growth 1H13 v 2H12
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We have a substantial business in Asia
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
Targeting less lending reliant FIG and Resource customer segments – trade volumes grew 17% and 13% respectively

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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

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

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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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Normalised for RBS acquisition non-recurring gains

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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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Connectivity is a key differentiator for ANZ, driving - cross border activity around the network

Cross-Border Lending Growth 1H13 v 2H12

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Europe & America Asia Pacific Australia / New Zealand
36%
16%
11%
10%
7%
3%
Referred Received Referred Received Referred Received
Total 1H13 Cross-Border Lending Up 10% to $17b
Driven by strong growth in Trade Finance up 17%
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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
Greenwich Associates Large Corporate Survey
Markets / No. Staff Overall Relationship Quality
70%
Japan & Korea – 200
17%
China – 800 60% Bank A
11% 17%
Taiwan – 1,500
24%
Hong Kong – 1,000 50% 12% 11% Bank B
6%
Greater Mekong – 1,400
Bank C
40%
Philippines – 1,300 2012
Singapore – 2,100
30%
Indonesia – 1,800
Global Hub
2011
India – 5,600 Bank E
20% 2010 Bank D
Bank H Bank F
Significantly larger than Australian peers Bank G
Bank I
Asia Staff (FTE) 10%
15,700
Global
6,900
Hubs 0%
~2,800 -75 -50 -25 0 25 50 75
8,800 ~400
~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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The Greenwich Quality Index score is based upon a normalised 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.

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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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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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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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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Underlying volume growth and disciplined cost mana ement assistin to offset mar in headwinds g g g

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AUDm 50
198 6 1,199
141 1,093 51
952
65
IIB Cash 32
Profit
Movement
1H13 v Normalised Cash Profit up 10%
2H12
Cash Profit up 26%
2H12 2H12 2H12 Margin Partnerships Underlying Operating Provisions Tax & OEI 1H13
Software Normalised Compression Income expenses
Impairment
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Improving underlying volumes and strong Markets income growth

Disciplined cost management and productivity initiatives

Trade and FX volume growing at 17% and 14%
Markets Trading & Balance Sheet Trading up 47%
Capital Markets income up 40%
Normalised jaws of +4%
4% FTE reduction with FTE discipline in Enablement and Retail

Margin headwinds

Continued improvement in credit quality

IIB margin compression slowing to 14bps HOH vs 39bps in 2H12 on an ex-markets basis, of which 10bps related to capital and rate insensitive deposits from a lower interest rate environment
Institutional HOH margin compression of 12 bps
Improved Impaired Assets / GLA at 1.37% in 1H13 (1.57% in 2H12)

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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

IIB Operating Income

Net Interest Margin ex-Markets

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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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1H10 2H10 1H11 2H11 1H12 2H12 1H13
Net Interest Income Other Operating Income
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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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Disciplined cost management helping to fund investment in further growth

Delivered positive income / expense JAWS both HOH and PCP
Rebalancing coverage model to reflect changed business mix - FTE Reduction of 4% HOH
Driving efficiency through leveraging Global Hubs
Continuing to invest:
Technology Platforms:
- Cash Management
- Markets
- Asia Core Banking and Internet Banking
Transaction Banking, Markets and Commercial Asia frontline build-out

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Rebalanced coverage model
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Institutional Employees by Geography
11% 10% 10% 10% 10%
52% 51% 50% 46% 45%
37% 39% 40% 44% 45%
1H11 2H11 1H12 2H12 1H13
Asia Australia / NZ Other
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Delivering improved operational leverage

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IIB Operating Expense Growth [1 ]
HOH PCP
6.4% Jaws
5.9%
5.6% HOH: +4%
PCP: +1%
0.5%
0.3%
-0.2% -0.4%
-0.7%
2H11 1H12 2H12 1H13
IIB Cost to Income Ratio
50%
48.0%
48%
45.8%
46% 44.7%
44%
44.2%
42%
40%
2H11 1H12 2H12 1H13
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All numbers exclude one-off Software impairment of AUD162m in 2H12

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Productivity gains invested in our Asia network

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Balancing our growth profile
Investing in our growth markets
through investment in APEA
IIB Operating Expenses [1 ] IIB Full Time Equivalent Employees [2 ]
AUDm
Continue to invest in
priority segments
15,274 Asia FTE Growth 1H13 v 1H12
1,452 Markets 14%
40 Transaction Banking 12%
1,446
Commercial Asia 9%
237
319
298 13,540
1,476
46
Operating Expenses flat FTE down 12%
2H12 Australia & APEA 1H13 1H11 Institutional Retail Enablement Institutional 1H13
NZ Australia & APEA APEA
NZ
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Excludes one-off Software impairment of AUD162m in 2H12
Includes contract employees. Excludes global hubs

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Continuing to grow and strengthen balance sheet

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

IIB Customer Deposits IIB Customer Lending [1 ]
Loan-deposit ratio
Sep-12: 69% Asia Funded Trade
Mar-13: 68% Growth of +19% HOH
AUDb AUDb
160 +18% CAGR
152 160
143
140 133 140
+13% CAGR
120 120
109
103
98
100 100 93
80
80 80
60 60
40 40
20 20
0 0
Mar 11 Mar 12 Sep 12 Mar 13 Mar 11 Mar 12 Sep 12 Mar 13
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Institutional Australia Institutional NZ Institutional APEA Retail Asia Pacific

Net Loans & Advances (incl. acceptances)

Institutional lending book continues to diversify and de-risk

Lower provision charge 1H13 due to absence of large single names

Institutional lending portfolio continues to improve

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AUDm
700
600
500
432
400
300 250
229
283
200
139
110
165
100
0
-100
-200
-300
1H10 2H10 1H11 2H11 1H12 2H12 1H13
CP Charge Recoveries & Writebacks
Increased IP Charge New IP Charge
Total Provision Charge
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Sub-investment grade defined as exposures with a rating below BBB-

Institutional Risk Grade Profile by Exposure at Default

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

1
Defaulted Sub Investment Grade Investment Grade
1% 2% 2% 1% 1% 1%
39% 32% 30% 26% 24% 20%
60% 66% 68% 73% 75% 79%
Sep 08 Sep 09 Sep 10 Sep 11 Sep 12 Mar 13
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Improving Impaired Asset position

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$b Institutional Net Impaired Assets
3.0 Net Impaired Assets
As % Gross Loans & Advances
2.0 4.1%
2.9% 2.8%
1.0
1.9% 1.8%
1.7%
1.4%
0.0
Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13
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100

Growth is focused toward higher return products

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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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Capital represents Average RWA x 8.3% plus Average Capital Deductions (ie partnership investment). PAT normalised to exclude 2H12 Software impairment
Represents Commercial Asia-Pacific segment

101

Global Markets – significant and well diversified growth

Building client franchise in priority segments

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Financial Institutional clients on-boarding grew 43% Growing Commercial Asia presence - income doubled

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Strong results in Flow & Value Added Products

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Gained market share in FX as volumes outpaced system growth

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Approval to trade directly between AUD and Renminbi – one of only five non-Chinese banks

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Experienced record demand for Gold Bullion – driving sales from Australia into the Asia region

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Capital Markets income up 40%; Maintained Top rating in Aus / NZ and improved ratings in Asia Pacific

Gaining momentum across region

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Continue to maintain a strong domestic franchise whilst growing in Asia - Asia income up 38%; now represents 25% of Global Markets Sales income

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Growth momentum strong across Asia - in addition to Singapore and Hong Kong, 5 other Asian markets achieved income growth greater than 25%

Diversifying Trading income and reducing risk

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More diversified, lower risk revenue streams, have continued to reduce avg. VaR, down 47% from 2011

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Growing FX market share
(Foreign Exchange Client Turnover)
ANZ Market
37%
14%
-5%
-11%
1H13 v 2H12 1H13 v 1H12
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„Market‟ – EBS Average Daily Volume + Reuters Average Daily Volume

Strategically diversified and growing income

(1H13 v 2H12)

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63%
40%
28% 32%
14%
7%
Foreign Fixed Capital Sales Trading Balance
Exchange Income Markets Sheet
82%
25%
11% 10%
-8%
Australia Europe & Hong Kong Local Asia Pacific
& New America & Singapore
Zealand
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All growth rates reflect 1H13 v 2H12 unless otherwise stated.

102

Global Transaction Banking – growth in line with strategy

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Progressing strategic agenda

Capturing trade flows throughout Asia
Reducing reliance on Net Interest Income Growing asset base with Financial Institutions Expanding customer base: up 14% PCP

Underlying volume growth and fee uplift offsetting margin headwinds

Trade volumes up 11% HOH, driven by APEA franchise which grew 15%
Volume growth has offset margin compression driven by:
Lower funding spreads impacting Cash Management margins
Reversion back to long term average Asia Trade margins, as liquidity returned post 2012 European bank crisis

Expanding channel volume & capability

ANZ Transactive continues to be rolled out across Asia Transactive Mobile launched in Australia: ~50% volume uplift during 2Q13
Transactive Australia: 21% growth in 2Q13

ANZ Transactive transactions and cash volumes continue to grow

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Total Value (LHS) Total Txn Volume (RHS)
AUDb Millions
800 706 8
600
600 496 6
7
4
400 337 4
1
200 1 2
0 0
2H11 1H12 2H12 1H13
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Transaction Banking Operating Income Mix by Geography

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Australia NZ Asia Other APEA
7% 7% 7% 6% 7%
19% 20% 23% 25% 25%
9% 9%
9% 9% 10%
65% 64% 61% 60% 58%
1H11 2H11 1H12 2H12 1H13
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103

Retail Asia – building momentum across product range whilst man in costs effectivel ag g y

Growing quality client base and volumes

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Normalised[1] Revenue +8% HOH (+9% PCP) Loan balances +16% HOH (+41% PCP) Deposits +7% HOH (+17% PCP)

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Shifting product mix and growing income

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Changing product mix with increasing share of Investments and Insurance and Mortgages Asset under Management up 11% driven by expansion of product suite and proposition, supplemented by positive market sentiment

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Continued focus on building Signature Priority Banking customer base Added an additional 8,000 Signature Priority Banking customers in 1H13

Cost disciplines and efficiency focus

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Strong FTE and expense discipline resulting in +8.4% JAWS (Normalised +9.6%)

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Reduction of 191 FTE since Sep 2011

Data adjusted to be on constant FX rates

Normalised RBS acquisition non-recurring gains

Retail Asia growing income[1] and increasing efficiency

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Mortgages
Deposits
Investments & Insurance
Credit Cards & Other Personal Lending
Cost to Income Ratio (RHS)
AUDm CTI
311
350 286 288 100%
271
300
95%
250
90%
200
150
85%
100
80%
50
0 75%
2H11 1H12 2H12 1H13
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Continuing to provide funding, whilst growing lending in targeted segments

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AUDb
Customer Deposits Customer Lending [2 ]
9.9
9.2 4.3 5.0
3.4
8.4
Mar 12 Sep 12 Mar 13 Mar 12 Sep 12 Mar 13
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Customer lending represents Net Loans & Advances including acceptances

104

Commercial Asia - delivering strong revenue growth with im roved roductivi p p ty

Continued strong growth momentum

Commercial Asia Operating Income

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Income growth of 32% HOH (39% PCP), 2 year CAGR of 45%

Growing and diversifying client base with active customers up 32% PCP

Priority markets delivering - Hong Kong, Singapore & Taiwan represent 67% of total Commercial Asia revenue

A focus on flow and value added products

Markets income +102% HOH (+70% PCP) Transaction Banking income +10% HOH (+34% PCP)

Transaction Banking and Markets make up 89% of total income

Maintaining cost discipline and balance sheet strength Positive income / expense Jaws of +26% HOH (+6% PCP)

Strengthening balance sheet with a focus on short-dated trade lending

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Transaction Banking Markets Sales Lending & Other
AUDm
100
88
+45% CAGR
80
67
64
60
47
42
40
20
0
1H11 2H11 1H12 2H12 1H13
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Commercial Asia Balance Sheet growth
94%
HOH PCP
44% 49%
40%
33%
7%
Deposits Lending & Other Trade & Supply
Chain
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105

Asia Partnerships

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Partnerships Cash Profit movement 1H13 v 2H12
AUDm
217
10
182 4 186
20
5
2H12 Reported BoT Dilution Seasonal Accounting 2H12 Adjusted Earnings 1H13 Reported
Gain impacts adjustments2 growth
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Adjusted Cash Profit contribution from Key Partnerships
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Partnerships Cash Profit Mix 1H13

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

AUDm 4%
1H12 2H12 1H13
182 186
166
18%
31%
22%
59
58
40 45 47 46 34 34 42 44 35 33 25%
SRCB AMMB
BoT Panin
SRCB AMMB BoT Panin Total Others1
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Other Partnerships comprises of Metrobank Card, Saigon Securities Inc. and Sacombank
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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106

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack New Zealand Division

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Harnessing the benefits of scale to compete in a lower rowth hi hl com etitive market 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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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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… in a lower growth, highly competitive
market [2] …
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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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108

Maintained momentum through a period of significant change

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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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Source: Ipsos Branch Tracker - consumers saying the brand is their first choice or is seriously considered
Source: RBNZ, February 2013
Source: RBNZ, December 2012

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109

Driving greater efficiency in a challenging revenue environment

New Zealand Division Net Profit after Tax movement 1H13 v 2H12

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NZDm
54
509
497
14
76 485
12
14
27
3
409
Normalised NPAT up 5%
NPAT up 22%
2H12 Projects 2H12 NII OOI Operating Provisions Tax & OEI 1H13 Projects 1H13
and Normalised Expenses Normalised and
Restr. Restr.
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110

Focus on cross sell in NZ Retail & Commercial su ortin rowth across New Zealand franchise pp g g

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New Zealand Division New Zealand Geography
NZDm NZDm
1,347 1,742 48 1,760
14 1,317
3 30
41
Income down 2% Income up 1%
2H12 Rate Volume OOI 1H13 2H12 NZ Businesses Wealth, 1H13
1
Normalised Institutional
and Other
Driving better quality income Focus on increased cross-sell
● Insurance sales from bank channels 1H13 up 9% HOH and up 34% PCP Growth 1H13 v 1H12
● Increasing cross sell of Institutional products – Trade up 10% HOH 63%
34% 35%
● The new ANZ is now attracting higher quality customers - higher
earning, young professionals purchasing more products
● The proportion of new to bank Retail Home Loan customers that have
3+ needs met has increased 29% Insurance Kiwisaver ANZ@work
Sales
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2H12 Operating Income of NZD1,829m adjusted for NZD87m Visa sale.

111

Net Interest Margin

Managing margins against a challenging competitive landscape

Net Interest Margin down 10bps HOH
Reduction reflects two key drivers:
Tactical campaign at the time of systems merger and brand change
A structural shift back towards fixed rate mortgages
New Zealand Simplification has put us in a better position to manage competitive dynamics as we better leverage our scale

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Shift in borrower preference back towards
fixed rate mortgage products
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New Zealand Division
Net Interest Margin
2.70%
2.60%
2.50%
2.40%
2.30% Margin stabilised
2.20% 2Q13 v 1Q13
2.10%
2.00%
1H10 2H10 1H11 2H11 1H12 2H12 1Q13 2Q13
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Net Interest Margin Movement 1H13 v 2H12

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ANZ % Fixed Rate Sales Mix bps 1
mortgages in portfolio 259
100%
37% Variable 3
75%
1
249
50% 7 2
63% Fixed
Down 10bps
25%
Mar Mar Mar Mar Mar Feb 2H12 Funding Funding Assets Deposits Other 1H13
08 09 10 11 12 13 1H13 Mix Costs
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112

Strengthening the balance sheet

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New Zealand Division
Customer Lending & Deposits
NZDb
Lending [1 ] Deposits
100.0
Loan to Deposit Ratio
88.0 89.3
90.0 85.5 85.5 Sep 2011 March 2013
187% 173%
80.0
Commercial
70.0 Retail
60.0
51.7
49.6
48.0
50.0 45.7
40.0
30.0
20.0
10.0
0.0
Sep Mar Sep Mar Sep Mar Sep Mar
11 12 12 13 11 12 12 13
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Customer Lending represents Net Loans & Advances (incl. Acceptances)

A focus on improving balance sheet quality

Lending balances increased 1% in the first half, primarily from above-system mortgage growth
Continued to self fund growth:
Customer deposits up 4% in the half
Loan to deposit ratio down a further 400 bps HOH to 173%
Credit quality continues to improve:
Net impaired assets reduced 10% in 1H13

Credit quality continues to improve

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NZDm New Zealand Division
1.91%
1.51%
1.35%
1.11%
0.99%
1,667
1,295 1,158 979 881
1H11 2H11 1H12 2H12 1H13
Net impaired assets NIA as a % of net advances
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113

Retail – continued to grow through the period of brand & system conversion

Maintained our focus during conversion

Growing market share[1 ]

Lending FUM has grown ~$300m since brand announcement in September 2012

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1H12 1H13
30.3%
30.0%
29.5% 29.6%
Mortgages Household Deposits
Creating one optimised network with
increased coverage
Branch Coverage [2 ]
82%
75%
2010 Mar 2013
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ANZ remains #1 among peers for „unprompted awareness‟ - a measure of how top of mind our brand is with New Zealanders

Simplifying Business & Leveraging Scale

Business simplification continues to deliver process and customer service improvements
Greater use of resource management tools to optimise sales time of frontline staff
Continued investment in digital - digital channels up 11% on the same period last year

Next phase is well underway

External rebrand will be completed by July 2013 and future proofed modular design being rolled out
Branch rationalisation and location optimisation to drive sales but with 20% less floor space

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Source: RBNZ, Share of all providers. Mortgages at February 2013, Deposits as at December 2012
Branch coverage represents the areas in which ANZ is represented relative to where New Zealanders do business

114

Retail - growing share in mortgages whilst maintaining strong lending standards

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Mortgage Growth vs System [1 ] Winning share in Auckland
ANZ System Share of Auckland new registrations
Rolling 12 months [2 ]
35.0%
3.9% 30.0%
25.0%
2.5% 20.0%
2.2% 15.0%
1.7%
10.0%
0.8% 5.0%
0.5%
0.0%
Mar 11 Sep 11 Mar 12 Sep 12 Mar 13
1H12 2H12 1H13 ANZ Peer 1 Peer 2 Peer 3 Peer 4
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Auckland mortgages reflect higher average
Dynamic Loan to Valuation Ratio (Mar 13)
amounts but similar quality to portfolio
Average LVR at Average Loan Size at
0-60%
9% Origination (Mar 13) Origination (Mar 13)
NZD „000‟s
66% 67% 288
61-70% 12%
41% 227
71-80%
21%
81-90%
17% Total Auckland Total Auckland
90%+
Portfolio Portfolio
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Auckland mortgages reflect higher average amounts but similar quality to portfolio

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Data source: RBNZ NZ C6 and ANZ‟s submission to RBNZ. 1H13 data is as at Feb 13. 2. Data source: Terralink

115

Commercial[1] – growth and improvement in asset ualit deliverin a better return q y g

Small Business Banking

Small Business Banking continues to grow

90% of businesses in New Zealand employ 5 or fewer staff (31% of employment and 44% of GDP)
A continued focus on moving bankers to capture growth segments and simplifying the business is delivering good results:
1H13 FUM growth of 6.3%
Satisfaction up 370bps YOY (Mar-13 vs. Mar-12)[2 ]
~2,600 new customers acquired

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Lending & Deposit FUM ANZ Main Bank Share [2 ]
Customer Lending
NZDb Customer Deposits 36%
40 6% HOH
30
20 33%
10
0
1H11 2H11 1H12 2H12 1H13 1H12 1H13
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Commercial & Agri

Improvement in performance:
NPAT growth 14.5%
Agri market share has stabilised
Satisfaction levels have been sustained through brand change
Winner of CANSTAR‟s Best Agribusiness Bank award for the second consecutive year
Agri share of land settlements average ~40% of market

Further improvement in Commercial & Agri credit quality

Average CCR[3] by Exposure At Default

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100%
20% 24% 0-3
80%
25% 23% 4
60%
Reduced by 5
40% 30% 32% NZD948m
mainly in Agri 6
20% 14% 13%
11% 8% 7-10
0%
Mar 12 Mar 13
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Commercial & Agri and Small Business Banking
TNS Business Finance Monitor
CCR is a measure reflecting the ability to service and repay debt. Risk grades are from 0 (highest quality) to 10 (default)

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116

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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117

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack Global Wealth Division

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1H13 Strategic scorecard

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

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

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
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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Source: Plan For Life

119

Headline result

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Cash Profit movement – 1H13 v 2H12
7 1
29
31 203
169
24
2
8
Up 20% [1 ]
2H12 Net Other Net Funds Expenses Expenses Provisions Tax and 1H13
Interest Income Mgmt & - Software - Other OEI
Income Insurance Impairment
Income
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Cash Profit movement – 1H13 v 1H12

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

11 1 203
23
177
1
4
4
Up 15%
1H12 Net Other Net Funds Expenses Provisions Tax and 1H13
Interest Income Mgmt & OEI
Income Insurance
Income
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Cash Profit up 20% HOH[1] and 15% PCP
Movement this half mainly due to increase in net funds management and insurance income and a reduction in expenses
Increase in PCP income driven by investment market gains, insurance inforce premiums growth and an improvement in claims
Operating expenses declined PCP, as a result of business simplification initiatives

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Cash profit is up 7% HOH excluding the software asset impairment charges in 2H12

120

Business drivers

Inforce Premiums

Funds Under Management

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Life & General
$b +8% $b +10%
51.0 51.7 54.8 1.8 1.9
1.7
9.4
NZ 8.4 8.8 NZ
Australia 42.6 42.9 45.4 Australia 1.6 1.7 1.8
1H12 2H12 1H13 1H12 2H12 1H13
Liquidity Cost to Income
$b Deposits Loans %
-280 bps
9.7 9.4 10.0
69.2
5.8
5.2 5.4 65.1
62.3
1H12 2H12 1H13 1H12 2H12 1H13
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121

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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Source: ANZ Customer Analytics

122

Productivity

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

Operating Expense growth HOH
5%
4%
-7%
1H12 2H12 1H13
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Operating Expense movement 2H12 v 1H13

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

$m
496
1
1 460
31
7
Down 7%
2H12 Funds Insurance Private Other 1H13
Mgmt. Wealth
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Comments

In 1H13, operating expenses declined by 7% HOH, key factors impacting operating expenses were:
Annualised benefits from simplification initiatives commenced in FY12
Efficiency benefits from continued leveraging of the global operating model
Inclusion of non-recurring software asset impairment in 2H12
Insurance operating expenses increased as a result of investment in growth initiatives, though partially offset by business simplification

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123

Strong performance in Life Insurance

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Retail Life Insurance
Life Insurance Inforce •
Lapse Rates
$m Australia New Zealand
+10%
1.4 1.4
1.3 •
19.3%
NZ 15.5% 16.8%
14.5%
13.3% 13.3%
Australia 1.2 1.3 1.3
•
1H12 2H12 1H13 1H12 2H12 1H13
Individual Life Insurance, Australia – Inforce Growth v System [1 ]
Index Dec 09 = 100 •
150
ANZ
140 7.5%
130 •
Market
120
110
100
Dec Dec Dec Dec
09 10 11 12
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Source: Plan for Life (Dec 2012)
Source: Plan for Life – Discontinuances for the year to December 2012 (Individual Risk Income & Lump Sum) 3. Source: NMG Consulting (Dec 2012) – IFAs includes aligned and open market advisers 124

Maintained double digit growth in Life Insurance, Inforce up 10% YoY

Retail Life lapse rates are responding to retention activities started last year, coming off their high

ANZ lapse rates in Australia remain lower than the industry average[2 ]

Retail life continues to be supported by IFAs, remaining #1 in sales[3] Improving productivity of risk sales in ANZ Financial Planning is also driving above market growth

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Funds Management Australia

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Market Share [1 ]
7.80%
7.40%
Jun-12 Dec-12
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Comments

As anticipated, vertical integration as a response to regulation is driving net outflows from open market advisers
We responded to this by focusing on improving the productivity of our bank and aligned channels
While we are seeing progress with this strategy, the increase in flows are not yet large enough to offset the net outflows from the open market

Netflows

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Netflows by Channel - Australia
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As a result ANZ‟s market share of FUM in Australia declined 40bps in the six months to December 2012

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$m
+$204m
-$151m
1H12 2H12 1H13
ANZ & Aligned Open Market
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In addition to focusing on owned and aligned channels ANZ launched Smart Choice Super to focus on non-advised customers

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Plan for Life – Retail Funds Management Overview (excluding cash) (Dec 2012)

125

Distribution

Size of ANZ Financial Planning

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Advisers
+1%
374 377
345
NZ 47 56
47
Australia 327 298 321
1H12 2H12 1H13
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Comments

ANZ Financial Planning has a clear strategy to penetrate the ANZ customer base
We are on track to grow the adviser foot print (32 advisers added in 1H13)
In Australia, productivity has increased 21% PCP in risk sales per adviser and 6% PCP in investment inflows per adviser

Productivity of ANZ Financial Planning (Australia)

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Risk Production per Adviser Inflows per Adviser
($‟000) ($m)
+21% +6%
57 55 2.0
45
1.8
1.7
1H12 2H12 1H13 1H12 2H12 1H13
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126

Wealth Distribution Asia

0 2 4 6 8 10 12 14 16	Wealth Sales1		Comments
	1.1 1.1 1.3 2.2 2.0 2.2 3.4 3.1 3.6 4.2 3.4 4.4 1.8 1.6 1.9 12.7 11.3 13.5 .0 .0 .0 .0 .0 .0 .0 .0 .0 1H12 2H12 1H13 Indonesia Hong Kong Taiwan Singapore Other2 Private Banking and Retail Wealth Sales ($b) +20%		1H13 key achievements: • Continued optimisation of wealth solutions including Mutual Funds and Bancassurance • Actively supporting positive market sentiment in relation to Equities and Mutual Funds • Significant enhancements to our open architecture platform • Laid the ground work for the launch of new products under our China QDII license3; Mutual Funds was the first product launche in April this year • Strengthened ANZ Private Bank management in Asia • Established discipline and focus around hub markets • Differentiating Retail Wealth and Private Bank propositions and strengthening risk management and governance frameworks • Enhancing customer insight and delivery	d

Continued optimisation of wealth solutions including Mutual Funds and Bancassurance
• Actively supporting positive market sentiment in relation to Equities and Mutual Funds
Significant enhancements to our open architecture platform
• Laid the ground work for the launch of new products under our China QDII license[3] ; Mutual Funds was the first product launched in April this year
• Strengthened ANZ Private Bank management in Asia
• Established discipline and focus around hub markets

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Sales of third party investment and insurance products through ANZ channels measured by the 1st year premium for insurance, and the aggregated sales from new subscriptions for investment products plus redemptions on Bonds, Equities and ETF (Mutual Funds excluded)
Other countries include: Japan, China, Vietnam, Philippines and Cambodia
QDII license enables us to sell foreign securities to onshore Chinese investors

127

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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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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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

128

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack Economics

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Economic updates

		Australia	Australia			New Zealand	New Zealand
	2012	2013	2014	2015	2012	2013	2014	2015
GDP	3.5	2.7	2.8	3.5	2.4	2.8	2.8	2.3
Inflation	2.0	2.1	2.1	2.4	0.8	1.3	1.9	2.2
Unemployment	5.3	5.7	5.7	5.4	7.3	6.9	6.3	6.1
Cash rate	3.50	2.75	2.5	3.0	2.50	2.50	3.00	3.75
AUD/USD	1.04	1.05	1.03	0.95	N/A	N/A	N/A	N/A
Credit	4.0	3.3	4.8	5.2	3.9%	3.7%	3.7%	4.2%
- Housing	4.7	4.5	4.9	5.9	2.9	4.5	3.0	4.0
- Business1	3.7	1.6	4.6	4.0	5.3	3.9	4.6	4.5
- Other	-0.7	1.7	4.9	5.2	2.4	6.0	3.5	3.5

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

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 2014
China 13.1 9.6 9.1 10.1 9.3 7.8 India 9.7 8.1 6.5 9.7 7.5 5.1	7.8 8.0 5.7 6.6
NIEs
Hong Kong 6.4 2.4 -2.7 7.0 5.0 1.4 Korea 5.1 1.5 0.2 6.2 3.6 2.0 Singapore 8.6 2.3 -0.8 14.5 4.9 1.3 Taiwan 5.9 1.1 -1.9 10.9 4.0 1.3	3.7 4.2 2.6 4.8 2.4 3.6 3.6 4.6
ASEAN
Indonesia 6.3 6.0 4.6 6.1 6.3 6.2 Malaysia 6.5 4.7 -1.7 7.2 5.1 5.6 Philippines 7.1 3.7 1.1 7.3 3.7 6.6 Thailand 4.9 2.5 -2.3 7.8 0.1 6.4 Vietnam 8.4 6.3 5.3 6.8 6.1 5.0	6.5 6.6 5.5 4.5 5.6 6.2 4.4 4.5 5.6 6.3
Total 10.4 7.4 6.0 9.3 7.4 6.1 Total (ex. China & India) 6.1 3.1 0.4 7.6 4.2 3.8	6.3 6.9 4.3 5.1

Note: Based on calendar year Sources: CEIC, ANZ Economics

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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.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 2013

10425_rns_2013-04-29_6119b606-b4a4-4709-9988-4412de0e62de.pdf

Index

Half Year Result Overview

Focus on differentiated growth, productivity and shareholder returns

Diversified, low risk growth outcomes and opportunities

We have built scale, capability and momentum in Asia

ANZ has built a substantial business in Asia

A top 4 Corporate Bank in Asia

A differentiated strategy that is delivering for shareholders and customers

ANZ has built a substantial business in Asia

Diversified, low risk growth outcomes and opportunities

New Zealand

International & Institutional Banking

Step change in productivity and cost management

Shareholders are benefitting from ANZ‟s momentum driving increased returns

Diverse Funding Mix

1H13 financial performance

Cash Profit Movement 1H13 v 1H12 ($m)

1H13 financial performance by Division

Operating Income and Net Interest Margin

Progressing productivity agenda and improving credit ualit q y

Operating Expenses normalised for one-off items[1 ]

Provision Charge

Delivering ANZ‟s strategy

Strengthening our position in our home markets - Australia

Household deposits growth[1 ]

Household lending growth[1 ]

Australia Division Net loans and advances & Deposits

Strengthening our position in our home markets - New Zealand

Capturing faster growing regional flows in trade, ca ital and wealth p

Asia Volume growth (1H13 v 1H12)

Achieved scale in core franchise markets

Driving operational efficiency and productivity

Operating Expenses Movement by Division

Focused on increased productivity

Credit quality in line with expectations

Driving capital efficiency and superior returns for shareholders

Overview of financial performance

Adjustments between Statutory Profit and Cash Profit

Cash Net Profit after Tax

Return on Equity and Economic Profit

Global Markets, Australia Retail and Corporate & Commercial Banking the key drivers of income growth in 1H13

Operating Income by Division Movement 1H13 v 2H12

Australia

New Zealand

International & Institutional Banking

Global Wealth

Continue to diversify operating income by customer, product and geography

Operating Income Mix by Geography (1H13)

Key drivers of operating income

Operating Income by line of business

Growth in Institutional and Wealth increasing contribution of Other O eratin Income p g

Net Interest Margin – movement summary

Margins – Group performance

Net Interest Margin movement 1H13 v 2H12

Key drivers of NIM movement

Funding & Asset Mix

Funding Costs

Deposits

Assets

Net Interest Margin – Divisional trends

Net Interest Margin drivers and volume trends

Operating Expenses

Operating Expense trends

Continue to diversify balance sheet and increase ro ortion of customer fundin p p g

Customer Lending[1] movement 1H13 v 2H12

Balance Sheet composition by Geography

Balance Sheet composition by Segment

Strongly capitalised under new Basel 3 rules

Capital overview

Organic capital generation and capital initiatives have improved capital levels

Capital Position (APRA Basel 3 Common Equity Tier 1)

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

Lowest structural funding gap provides funding flexibility

A sustainable term wholesale funding profile

Portfolio wholesale funding costs stabilising, deposit costs remain relatively high

Strong liquid asset position

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

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