Australia and New Zealand Banking Group Ltd. - Interim / Quarterly Report 2014

1 May 2014

Results Presentation & Investor Discussion Pack

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

Index

Half Year Result Overview

Half Year Result Overview
CEO Presentation	3
CFO Presentation	11
ANZ Overview	22
Strategy & Performance
Strengthening Core Markets	31
Profitable Asian Growth	39
Enterprise Approach	45
Case Study: ANZ Greater China	47
Group Treasury	50
Risk Management	59
Divisional Performance
Australia Division	81
International and Institutional Banking (IIB) Division	88
New Zealand Division	95
Global Wealth Division	100

All figures are presented on a Cash basis in Australian Dollars unless otherwise noted. In arriving at Cash Profit, Statutory Profit is adjusted to exclude non-core items, further information is set out on page 83 of the 2014 Half Year Consolidated Financial Report

==> picture [59 x 22] intentionally omitted <==

1 May 2014

Mike Smith Chief Executive Officer

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

Delivering for shareholders and customers

1H14 Result	1H14 $m	1H13 $m	Growth %
Cash Profit	3,515	3,179	Up 11%
Statutory Profit	3,381	2,937	Up 15%
Cash Earnings per Share (cents) Dividend per share (cents) Cash Return on Equity	128.7 83 15.5%	116.9 73 15.5%	Up 10% Up 14% Flat

Strong, clean result
Super regional strategy delivering
Performing to FY14 guidance

==> picture [490 x 75] intentionally omitted <==

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

SUPER REGIONAL STRATEGY
----- End of picture text -----

==> picture [497 x 212] intentionally omitted <==

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

STRONG PROFITABLE
ENTERPRISE
CORE ASIAN
APPROACH
MARKETS GROWTH
STRONG LIQUIDITY AND CAPITAL MANAGEMENT
----- End of picture text -----

DISCIPLINED AND EXPERIENCED MANAGEMENT

CEO PRIORITIES FY14-16

Improving Diversifying Improving Improving customer revenue productivity returns experience

==> picture [703 x 135] intentionally omitted <==

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

STRONG
Strengthen our position in core markets of Australia
CORE
and New Zealand to drive Group earnings and returns
MARKETS
----- End of picture text -----

#1	Mortgage growth Aust/NZ1	• Improved sales capability in small business, wealth and home loans • Stronger cross-business referrals • Better channel reach & capabilities • Simplified processes and products • More sales time
1.1x system	Australia retail deposit growth1
16%	Aust Small Business lending
14%	NZ Small Business lending

$78b	Digital transactions processed via ANZgoMoneyTMin Australia	• Improving customer experience • Reducing customer complaints • Migration to lower cost channels
Lower CTI	Australia - 80bps, NZ -370bps, Wealth -90bps

	Transforming Australia	• More customers, better delivery, lower costs • Retail income per FTE up 8-9% • Digital – simpler, better, more integrated • Focus on customer and network
	Simplifying New Zealand
	Repositioning Wealth

Note: All figures PCP unless otherwise stated; 1. Source: Aust.- APRA monthly banking statistics, NZ - Terralink

PROFITABLE ASIAN GROWTH

9%	International and Institutional Banking	• Global Markets Asia +34%; FX Asia +27% • Global Markets Asia Sales +20% • Transaction Banking Asia +9%; Payments and Cash Management Asia +17% • Greater China1,2+20%, SE Asia1,2+15%
17%	IIB Asia1
Double digit	Growth in priority products and key Asian markets
57%	% of flow products in IIB income - better returns, less risk

30bps	IIB Cost to Income ratio1	• Consolidation of operations hubs • Higher quality, shorter tenor loan book • IIB Return on RWA up 4bps
	Asset efficiency, credit quality

Top 4 Corporate Bank in Asia – 2012 & 20133		• Insights – leveraging industry expertise • Network capability – an emphasis on generating cross-border referrals
37% APEA % of Institutional NPAT

Note: All figures PCP unless otherwise stated; 1. FX Adjusted; 2. Excluding partnerships; 3. Greenwich Associates Asian Large Corporate Banking Study

PROFITABLE ~~ASIAN~~ GROWTH

Customer driven growth in core segments and markets…

…with strong business, cost and risk disciplines…

…leading to double digit growth and improved returns.

IIB Asia Income CAGR 1H10-1H14

IIB Asia

Institutional Operating Income by Geography

==> picture [651 x 171] intentionally omitted <==

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

Cost to Income Ratio (%)
Total Income 25% Return on Risk Weighted Assets
Other Geographies
Markets 22% 65%
1.54% Asia share of
62%
Asia 1H10 Institutional
Loans 23% 14% Income
1.24%
1.19% 14% to 27%
55%
Trade 31%
1H11
Cash 1H12
29% 1H13
Management 1H14
1H12 1H13 1H14
----- End of picture text -----

ENTERPRISE APPROACH

Enterprise approach to operations and technology…

…is delivering a better, more efficient bank…

…for customers and shareholders.

~  10% Operations productivity

~  20%[“Run-the-bank” ] technology productivity

~10%	Operations productivity

~20%	“Run-the-bank” technology productivity

9%	Customer complaints

20bps	Group Cost to Income Ratio

	Sustainable returns in a lower growth market

1. Standardisation of processes & systems

Global wholesale credit decisioning and collateral management – all markets.
Global cards platform in 17 markets.
Global payments & FX; workflow mgt.

2. Consolidation of like teams

Creating scale, resource flexibility and deep knowledge pools – Trade; Collections; Wholesale Lending.

3. Straight Through Processing

87% of all inward international payments in Aust/NZ now STP, up from 68% in 2011.

4. Shift to online self-service

Online card activation saving 36k calls per month.

Note: All figures PCP unless otherwise stated

==> picture [561 x 383] intentionally omitted <==

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

Building a Building a
better bank better bank
for customers for shareholders
CEO PRIORITIES FY14-16
Improving Diversifying Improving Improving
customer revenue productivity returns
experience
FY16 FINANCIAL OUTCOMES
Above peer growth CTI <43% ROE of 16%+
----- End of picture text -----

1 May 2014

Shayne Elliott Chief Financial Officer

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

1H14 Financial Performance

Cash Profit Movement 1H14 v 1H13

==> picture [645 x 379] intentionally omitted <==

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

$m
48
528
71
3,515
3,179 242 69
Up 8% Up 2%
Income Up 6% Up 6% Down 12% Up 5%
Up 11%
1H13 Net Interest Other Expenses Provisions Tax & OEI 1H14
Cash Profit Income Operating Cash Profit
Income
1H14 1 Year 3 Year
Earnings per Share (cents) 128.7 +10% +22%
Dividend per Share (cents) 83 +14% +30%
Total Shareholder Return 10.4% 22.0% 65.8%
Return on Equity 15.5% 15.5% 16.1%
----- End of picture text -----

Impact of FX movements

Key Currency Movements

==> picture [601 x 353] intentionally omitted <==

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

AUD/USD Average AUD/USD
1.10
1H13 2H13 1H14
1.05
9%
1.00
12%
0.95
0.90
0.85
Sep 2012 Mar 2013 Sep 2013 Mar 2014
----- End of picture text -----

Impact of FX movements


	Raw ex. Currency Hedging	Actual (as reported)	FX Adjusted
Revenue	+7.5%	+6.3%	+3.6%
Operating Expenses	+6.0%	+6.0%	+1.7%
Provisions	-11.8%	-11.8%	-14.0%
Cash Profit	+13.0%	+10.6%	+8.6%

Return on Equity	+20bps	Flat	+50bps

Note: All figures PCP unless otherwise stated

1H14 result drivers

Growth 1H14 v 1H13 Adjusted for FX

Key Business Lines	Income	Expenses	JAWS
Institutional APEA	+15.7%	+3.0%	+12.7%
Global Wealth Global Markets Retail Asia Pacific Australia Division New Zealand Division Institutional Aus/NZ	+6.0% +5.3% +4.0% +3.8% +3.8% -4.4%	+4.1% -4.9% +2.5% +1.7% -5.6% -4.7%	+1.9% +10.2% +1.5% +2.1% +9.4% +0.3%
ANZ Group	+3.6	+1.7%	+1.9%

Note: All figures PCP unless otherwise stated

==> picture [134 x 135] intentionally omitted <==

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

STRONG
CORE
MARKETS
----- End of picture text -----

St rengthening Australia

==> picture [680 x 402] intentionally omitted <==

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

Cost to Income Ratio
 9 Home loan share to
Australia Division
15.0% [1 ]
bps
Down 80bps
 12 Household deposit share to 38.1%
15.2% [1 ] 37.3%
bps
 32 Business lending share to
17.3% [1 ]
bps
1H13 1H14
Average Funds Under Management
 61 Business deposit share to
Wealth Australia
14.4% [1 ]
bps
$b
10%
Wealth products sold through
 13% 48.4
branches
44.1
 288% Smart Choice Super FUM [2 ]
1H13 1H14
Note: All figures PCP unless otherwise stated; 1. Source: APRA Monthly Banking Statistics, 6 months to February 2014. System adjusted for new ADI incorporations since September 16
2012. Headline market share as at February 2014: Household home loan lending 14.9%, household deposits 15.0%; Lending to non-financial corporations 17.3%, Deposits from non-
----- End of picture text -----

Note: All figures PCP unless otherwise stated; 1. Source: APRA Monthly Banking Statistics, 6 months to February 2014. System adjusted for new ADI incorporations since September 2012. Headline market share as at February 2014: Household home loan lending 14.9%, household deposits 15.0%; Lending to non-financial corporations 17.3%, Deposits from nonfinancial corporations 14.4%; 2. For the 6 months to March 2014

==> picture [134 x 135] intentionally omitted <==

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

STRONG
CORE
MARKETS
----- End of picture text -----

St rengthening New Zealand

==> picture [639 x 365] intentionally omitted <==

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

 22 Mortgage share to Cost to Income Ratio
bps 30.7% [1 ]
NZ Division NZ Geography
Down Down
 19 Total deposits share to
45.2% 370bps 550bps
28.6% [2 ] 43.6%
bps
41.5%
38.1%
 20 Commercial lending share to
bps 29.8% [3 ] 8
1H13 1H14 1H13 1H14
Return on Equity [9 ]
 20 Credit cards share to
New Zealand Division
26.0% [4 ]
bps
20% Up 550bps
 20% Revenue per Branch [6 ] 15%
10%
5%
 15% KiwiSaver FUM [7 ]
0%
FY10 FY11 FY12 FY13 1H14
----- End of picture text -----

Note: All figures are for the 5 months ended 28 February 2014 unless otherwise stated 1. RBNZ C6 – February 2014; 2. RBNZ S8 – February 2014; 3. RBNZ S7 NZD claims, excludes Agriculture, Finance, Non-residents and Households – February 2014; 4. RBNZ S5 – February 2014; 5. Source: IPSOS Brand Tracking (first choice, or seriously considered) – March 2014; 6. March 2014 vs. March 2013; 7. For the 6 months to March 2014 in NZD; 8. Excluding the non-recurring insurance recovery 1H14 CTI is 39.97%; 9. Return on Equity on an internal expected loss, economic capital basis

Pr ofitable in Asia

PROFITABLE ASIAN GROWTH

Revenue growth[1 ]

International & Institutional Banking (IIB) Asia Return on Equity

==> picture [681 x 348] intentionally omitted <==

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

Indexed Return on Equity [2 ]
Index 1H12 = 100
 27% FX Asia 132
105 105 104
100
 5% Trade and Supply Chain Asia
1H12 2H12 1H13 2H13 1H14
Payments and Cash
 17%
Management Asia
IIB Asia Cost to Income Ratio (%)
 20% Greater China
65%
62%
60%
58%
55%
 23% Singapore
1H12 2H12 1H13 2H13 1H14
 11% Partnerships Asia
18
----- End of picture text -----

Note: All figures PCP unless otherwise stated; 1. Growth rates have been calculated on constant FX basis and exclude Partnerships income; 2. 2H12 ROE excludes the impact of one-off software impairment of AUD162m

En terprise Approach

ENTERPRISE APPROACH

Operations Volume Growth 1H14 v 1H13

# Countries Operations Volume Growth Platforms

Implemented 1H14 v 1H13 Global Wholesale Credit 9% 8% 8% ALL Decisioning & Trade 7% Processing 25 Global Customer Registry Australia New IIB Global Zealand Wealth 18 Collateral Management Operations Expense Growth[1 ] 1H14 v 1H13 17 Global Cards New Global

Australia Zealand IIB Wealth 1% 8 Global FX Global Payments Platform -4% 7 -5% and Transactive -6%

Growth rates have been calculated on constant FX basis

Cr edit Quality

==> picture [641 x 376] intentionally omitted <==

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

Gross Impaired Assets
 23% Gross Impaired Assets
$m
Avg. $434m decline HoH
6,221
5,343
4,685
 2% New Impaired Assets
3,620
 12% Total Provision Charge
Mar 11 Mar 12 Mar 13 Mar 14
Provision Charge
93bps Collective Provision Coverage [1 ]
$m IP Charge
CP Charge
Total Provision Charge as % Avg. Net Advances
1,000
24bps IP Loss Rate 750
500
0.36%
250 0.28% 0.27%
0.21%
0
Average Credit RWA Rate
39% -250
(CRWA/EAD)
Mar 11 Mar 12 Mar 13 Mar 14
----- End of picture text -----

Note: All figures PCP unless otherwise stated; 1. This ratio is the Collective Provision balance as a proportion of Credit Risk Weighted Assets

Ca pital

APRA Common Equity Tier 1 (Mar 2014 v Sep 2013)

Movement in bps

==> picture [633 x 242] intentionally omitted <==

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

104
8.48 27
18 8.33
74
Sep 13 Cash RWA Non RWA Dividends Mar 14
1 2
NPAT Usage Business
3
Usage
----- End of picture text -----

Cash earnings net of pref share dividends; 2. Includes impact of expected loss versus eligible provision shortfall ; 3. Includes capital retention of deconsolidated entities, capitalised software and other intangibles

1 May 2014

ANZ Overview

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

ANZ offers a distinctive geographic footprint and business mix that rovides earnin s diversification p g

Corporate Profile

Founded in 1835, ANZ is a super regional bank that serves 10 million retail, commercial and institutional customers in 33 markets and employs ~49k staff
Headquartered in Melbourne, Australia, ANZ is one of the four largest Australian banks and ranked in the top 25 banks globally by market capitalisation
Listed on the Australian Stock Exchange (ASX) with a secondary listing on the New Zealand Stock Exchange (NZX)

Financial Data for 6 months to 31 March 2014 ($b)	Financial Data for 6 months to 31 March 2014 ($b)
Statutory Net Profit after Tax	3.4
Cash Net Profit after Tax Cash Return on Equity	3.5 15.5%
Market Capitalisation	90.7
Total Equity	47.0
Total Assets	737.8
Total Risk Weighted Assets	360.9
Common Equity Tier 1 Ratio	8.3%
Customer Deposits	388.0
Customer Lending	509.3

An established regional network across 33 markets supporting faster growing trade, capital and wealth flows

On the ground presence in 15 Asian markets and representation in Europe, America and Middle East

~17,200 staff ~1.6m customers

The largest bank in the Pacific operating across 12 markets ~2,000 staff ~450k customers

A Top 4 Bank in The largest bank in Australia New Zealand ~21,400 staff ~6m customers ~8,300 staff ~2.1m customers

Supported by strong and well established domestic franchises

==> picture [59 x 22] intentionally omitted <==

ANZ Operating Structure

Operating Divisions

Operating Income Mix by Division

Australia Division

Retail Banking
• Corporate & Commercial Banking

==> picture [638 x 305] intentionally omitted <==

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

• Transaction
Corporate & Commercial Banking Retail Asia
Banking Pacific
Global Asia Partnerships
Loans 8% 4%
New Zealand Division 9% 3% New Zealand
6% Retail
• Retail Banking
• Commercial & Agri Banking Global IIB New New Zealand
Markets 13% 37% Zealand 7% Commercial
13%
Funds
3%
Global Wealth Management
International & Institutional Banking (IIB) 8% 3% Insurance
1%
Australia 1% Private Wealth
Client Segments Products Other
•• Global Banking International Banking •• Transaction Banking Global Markets Australia 16% 42%
Corporate &
• Retail Banking Asia Pacific • Global Loans Commercial
26%
Australia
Retail
Global Wealth
• Insurance • Private Wealth
• Funds Management • Advice & Distribution
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Contribution by Geography

Operating Income

Operating Income 1H14

==> picture [633 x 382] intentionally omitted <==

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

Australia New Zealand APEA
$m 1H14 APEA Network
18,391 Revenue [1 ] represented
20,000 17,848
16,222 24% of Group
Operating Income and
15,000 12,295 Australia 25% of Group Profit
9,299 9,668 62% APEA
10,000 20%
New
5,000
Zealand
18%
0
FY08 FY10 FY12 FY13 2H13 1H14
Net Profit after Tax Net Profit after Tax
Australia New Zealand APEA Australia New Zealand APEA
$m
6,498
7,000 5,830 11% 14% 17% 16% 17% 19%
6,000 5,025 23% 14% 17% 18% 19%
5,000 23%
4,000 3,426 3,313 3,515
3,000
72%
66% 66% 66% 64%
2,000 58%
1,000
0
FY08 FY10 FY12 FY13 2H13 1H14 FY08 FY10 FY12 FY13 2H13 1H14
----- End of picture text -----

APEA Network Revenue represents income generated in Australia & New Zealand as a result of referral from ANZ‟s APEA network

==> picture [59 x 22] intentionally omitted <==

Customer loans and deposits by Geography

Customer Lending[1 ]

Customer Deposits

==> picture [635 x 258] intentionally omitted <==

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

APEA APEA Commercial
Retail & Wealth & Institutional
APEA
Australia
APEA Commercial Retail & Wealth
Institutional
& Institutional
2% 22%
11% 13% 4%
New Zealand
Australia APEA Retail & Australia APEA New Zealand
Commercial 13% 15% 7% Wealth Institutional 16% 26% 9% Retail &
Wealth
New New
Zealand Zealand
Other Retail Australia 2% Australia 19% 11% NZ Australia 18% 5% Commercial NZ
Commercial
3%
66% 1% 56% New Zealand
Australia 12% Institutional
New Zealand
Commercial
Institutional
29%
40%
Australia Australia
Retail Mortgages Retail & Wealth
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Customer lending represents Net Loans & Advances including acceptances

Total Credit Exposure (EAD) by Geography

==> picture [316 x 363] intentionally omitted <==

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

Exposure at Default by Geography
Total Exposure at Default (Mar 14) - $762b [1 ]
Australia New Zealand APEA
$467.5b $136.2b $158.7b
New Zealand
UK & Europe 3% 18%
Americas
3%
Pacific 1%
Australia
APEA 61%
Singapore 4% 21%
2%
Hong Kong
4%
Other North
East Asia 3%
Other South
East Asia
----- End of picture text -----

Exposure at Default by Line of Business[2 ]

==> picture [287 x 355] intentionally omitted <==

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

Retail Institutional Commercial
1%
17%
29%
29%
22%
94%
54%
49%
5%
Australia New Zealand APEA
----- End of picture text -----

EAD excludes amounts for „Securitisation‟ and „Other Assets‟ Basel asset classes
Institutional includes exposure to Bank and Sovereign counterparties and ANZ‟s Liquidity portfolio

==> picture [59 x 22] intentionally omitted <==

Customer loans and deposits by client segment

Customer Lending[1 ]

Customer Deposits

==> picture [658 x 258] intentionally omitted <==

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

Australia
New Zealand Institutional
Australia Commercial New Zealand
Commercial
Commercial
11% APEA 16%
13% Australia Commercial 5%
Institutional
2%
11%
Commercial APEA
New Zealand Australia
Retail & Wealth 7% 24% Commercial 12% 19% Institutional 20% Institutional
APEA Retail 2% Institutional APEA Commercial 39%
& Wealth 25% 12% Institutional
New Zealand
Retail & Wealth Retail & Wealth 9%
Retail & Wealth 3%
51% 1% New Zealand New Zealand
Institutional 42% Institutional
APEA 4%
Retail &
Wealth
43% 29%
Australia
Retail & Wealth Australia
Retail & Wealth
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Customer lending represents Net Loans & Advances including acceptances

1 May 2014

Strategy & Performance

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

ANZ is executing a focused strategy to build the best connected most res ected bank across the Asia Pacific , p

==> picture [544 x 82] intentionally omitted <==

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

SUPER REGIONAL STRATEGY
----- End of picture text -----

==> picture [550 x 284] intentionally omitted <==

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

STRONG PROFITABLE
ENTERPRISE
CORE ASIAN
APPROACH
MARKETS GROWTH
STRONG LIQUIDITY AND CAPITAL MANAGEMENT
DISCIPLINED AND EXPERIENCED MANAGEMENT
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Banking on Australia is transforming the business

Building our lead in mobile & digital

Transforming our distribution channels

==> picture [87 x 162] intentionally omitted <==

>53% Customers that are digital users 1.1m ANZ goMoney[TM] active users  43%[goMoney][TM][ and Internet Banking ] logins[1] Transactions processed on $78b goMoney[TM 2]

400+ Smart ATMs 85 New look sales focused branches  9% Over the Counter transactions Branches offering simple wealth 600+ products

1,200[iPads (with 8 apps) deployed to ] C&CB bankers Building the capability of our people & systems

 43% ANZ FastPay[TM] transactions[3] Simplifying our products & processes

==> picture [87 x 198] intentionally omitted <==

==> picture [87 x 196] intentionally omitted <==

Branch sales staff accredited to 69% sell home loans 1,500+[Branch staff accredited to sell ] Wealth products 1,600+[Branch staff trained to sell small ] business products Frontline C&CB staff with 32% experience in key Asian markets  13% Wealth revenue via Retail[4]  120%[C&CB Cross-border referrals ] from Australia to Asia[5 ]

 24%[Reduction in average monthly ] customer complaints[6 ]  110k[Net increase in customers across ] Retail and C&CB[7 ] 36k Digital C&CB A-Z Reviews[8 ]  20%[Increase in time frontline C&CB ] Banker‟s spend with customers[9 ]  28%[Business customers onboarded ] via OneSwitch[5 ] 5 Home loan refinance time Mins (reduced from 45 mins)[10 ]

Note: All figures have been measured since inception of the „Banking on Australia‟ Program (October 2012) unless otherwise stated; 1. Average monthly logins for the 6 months to March 2014 versus 12 months to September 2012; 2. Represents dollar value of transactions processed on ANZ goMoney[TM] since launch in September 2010; 3. Represents compound monthly growth in the number of transactions processed on ANZ FastPay[TM] since launch in October 2012; 4. Represents the 6 months to March 2014 versus 6 months to March 2013; 5. Represents the 5 months to February 2014 versus 5 months to February 2013; 6. Average monthly Customer Complaints for the 6 months to March 2014 versus 12 months to September 2012; 7. Net increase in customers for the 12 months to February 2014; 8. Represents 6 months to March 2014; 9. Estimated time being freed up in the frontline by removing activities and streamlining processes, compared to October 2012 baseline; 10. Applicable for non-credit critical renewals through ANZ channels;

==> picture [59 x 22] intentionally omitted <==

==> picture [23 x 223] intentionally omitted <==

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

STRONG CORE MARKETS
----- End of picture text -----

And driving growth in our core markets

Australia Division 1H14 NPAT up 5% to $1.48 billion

Corporate & Commercial Banking

Retail

Strongest growth of the major #1 domestic banks in Home loans  16% Small Business lending growing at 1.2x system[1 ] Consecutive quarters of above 17 system home loan growth to  8% Deposit Growth March 2014 1.1x C&CB customers with 26k net new Deposit Growth[1 ]  6% customers[[4 ]] System Main Financial Institution (MFI) Total and Affluent Traditional #2 =#1 Customer Satisfaction in Banking market share[2 ] Commercial Banking[[5 ]] Cross-sell revenue generated by  8% Revenue per FTE[3 ]  4% C&CB Net Impaired Assets % of Gross  13% Wealth revenue via Retail 90bps Lending Assets (improved from 140bps in 1H13)

 16% Small Business lending  8% Deposit Growth C&CB customers with 26k net new  6% customers[[4 ]] Main Financial Institution (MFI) =#1 Customer Satisfaction in Commercial Banking[[5 ]]

Cross-sell revenue generated by C&CB

Note: All figures PCP unless otherwise stated; 1. Source: APRA Monthly Banking Statistics, 12 months to February 2014. System adjusted for new ADI incorporations; 2. Source: Roy Morgan Research, Australia Pop‟n aged 14+, 12 months to March 2014; Traditional banking includes FUM for total deposits, mortgages, personal/other loans, and credit cards. Affluent defined as customers with All Financial Services FUM between $400k and $1m (in all financial institutions) or income greater than $150k/year; Peers: CBA (excl Bankwest), NAB, Westpac (excl Bank of Melbourne & St George); 3. Represents average Retail FTE for the 6 months to March 2013 and March 2014; 4. Net new customers (excluding Esanda) for the 12 months to February 2014; 5. DBM Business Financial Services Monitor, ranked against other „Big 4‟ banks, Commercial banking includes majority of businesses with turnover <$100m, data sourced in the six months to March 2014

==> picture [59 x 22] intentionally omitted <==

==> picture [23 x 223] intentionally omitted <==

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

STRONG CORE MARKETS
----- End of picture text -----

As well as improving productivity and returns across all areas of Australia Division

Continued cost discipline

Improving Branch productivity

Customer Branch Traffic and Sales Productivity Index Sept 11 = 100

Cost to Income Ratio

==> picture [279 x 136] intentionally omitted <==

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

80bps
38.1%
37.3%
1H13 1H14
----- End of picture text -----

==> picture [307 x 136] intentionally omitted <==

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

Sales per FTE
120
Transacting Customers per day
110
100
90
80
Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar
11 11 12 12 12 12 13 13 13 13 14
----- End of picture text -----

==> picture [23 x 223] intentionally omitted <==

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

STRONG CORE MARKETS
----- End of picture text -----

Enhancing sales productivity

Delivering Operations productivity

Proprietary home loan sales $b

==> picture [289 x 133] intentionally omitted <==

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

25%
1H13 1H14
----- End of picture text -----

Operations Cost

Operations Activity Volume

==> picture [319 x 120] intentionally omitted <==

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

-6% 8%
1H13 1H14 1H13 1H14
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Winning in New Zealand with geographic CTI below 40% for the first time

NZ Division 1H14 NPAT up 21% to NZD 598 million

NZ Division ROE accretive to ANZ Group: up 235bps to 15.8%[1 ]

Efficiency

Market Share

Brand

CTI 41.5% for NZ  649 Division v Sep 2010[2] bps ( NZ Geog : 1,111bps to 38.1%[3] )

Brand consideration compared to major #1 banks[10] – from last to first position in 3 years  17%[Uplift in brand ] consideration[10]  14%[Retail new customer ] acquisition Small Business Banking  29% new customer acquisition

Both total lending &  share total deposit share have grown YTD[5,6 ]  22bps[Mortgage market share ] YTD[7]

 20% Revenue per Branch Improved footprint leading to:

Share of new mortgage sales in all major NZ cities – the first time in Auckland & Christchurch[8 ]

• 7 percentage point 82% improvement in Branch mortgage sales via Coverage[4 ] Branch

47% KiwiSaver account sales via Branch

Commercial cross-sell  10% revenue from Institutional products

Commercial lending  20bps share - growth in all regions[9 ]

Note: All figures PCP unless otherwise stated; 1. ROE on Internal Expected Loss (IEL) basis; 2. CTI is against September 2010 – the reporting period immediately preceding the commencement of NZS; 3. Including the one off insurance recovery related to the ING frozen funds (excluding: 39.97%); 4. Branch Coverage measures the areas in which ANZ is represented relative to where New Zealanders do business – March 2014; 5. RBNZ S7 – February 2014; 6. RBNZ S8 – February 2014; 7. RBNZ C6 – February 2014; 8. Source: Terralink – March 2014; 9. RBNZ S7 NZD claims, excludes Agriculture, Finance, Non-residents and Households; 10. Source: IPSOS Brand Tracking (first choice, or seriously considered) – March 2011 v March 2014

==> picture [59 x 22] intentionally omitted <==

==> picture [23 x 223] intentionally omitted <==

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

STRONG CORE MARKETS
----- End of picture text -----

New Zealand Division – Returns now accretive to Group

==> picture [636 x 412] intentionally omitted <==

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

Net Profit after Tax Return on Average Assets Cost to Income
NZDm
21% 16bps 370bps
598 1.21% 1.24% 45.2%
569
1.08%
494
41.9%
41.5%
1H13 2H13 1H14 1H13 2H13 1H14 1H13 2H13 1H14
Branch Coverage [1 ] Revenue per Branch Revenue per FTE
Branch Coverage # of Branches NZDk NZDk
-60 20% 9%
309 350
5,249 5,451 184.4 185.3
260 300
249 4,534
250 170.1
200
81.9% 82.0% 150
75.0% 100
50
0
FY11 2H13 1H14 1H13 2H13 1H14 1H13 2H13 1H14
----- End of picture text -----

==> picture [23 x 223] intentionally omitted <==

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

STRONG CORE MARKETS
----- End of picture text -----

Branch coverage measures the areas in which ANZ is represented relative to where New Zealanders do business

==> picture [59 x 22] intentionally omitted <==

New Zealand Division - Using scale and technology to improve customer experience

==> picture [637 x 410] intentionally omitted <==

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

Leading to increased product
1 Providing easy ways to bank … 4
penetration and cross sell …
goMoney [TM] rated #1 Growth in Retail customers Cross-sell of Institutional
#1
banking app [1 ] with 3+ needs met products to Commercial
customers
goMoney [TM] active users 197bps
 96% 10%
to 326,500
4,000+ ANZ FastPay since
downloads launched [2 ]
35.1%
2 Migrating simple transactions … 33.1%
Over the counter
 11%
transactions [3 ]
Mar 13 Mar 14 1H13 1H14
53 Smart ATMs [4] … and brand consideration at an all
5
time high and highest of peers
Deposits via Smart
36% ATMs in our largest and Brand consideration [5 ]
busiest branch
Mar 11 Mar 14
3 Enhancing sales conversations … 17%
Tablets and 43% 41% 41%
1,100 smartphones rolled out 32% 32% 34% 32%
to frontline 26%
122,000 Frontline time released
hours – more sales time
ANZ Peer 1 Peer 2 Peer 3
----- End of picture text -----

Note: All figures PCP unless otherwise stated; 1. goMoney[TM] ranked #1 application in both the App Store („Finance – Free‟ category) and Google Play („Top Free in Finance‟ category) – April 2014; 2. ANZ FastPay launched on 13 December 2013; 3. Refers to eligible transactions migrated from all branches; 4. Aim to have 90 Smart ATMs rolled out by the end of the year; 5. Source: IPSOS Brand Tracking (first choice, or seriously considered) - March 2014

==> picture [59 x 22] intentionally omitted <==

==> picture [23 x 223] intentionally omitted <==

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

STRONG CORE MARKETS
----- End of picture text -----

Global Wealth delivering value to ANZ’s strategy

==> picture [633 x 244] intentionally omitted <==

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

Customer economics [1 ] Important source of liquidity
Customer attrition Revenue per customer Mar 13 Mar 14
$b $b
$14b $18b
-46% +60% Net Liquidity +22% Net Liquidity
28
24
13
10
10 10
14 6 15 6
4 4
Without With Without With Deposits Loans Deposits Loans
Wealth Wealth Wealth Wealth
Wealth Wealth sourced [2 ]
Significant source of other operating
Delivering value to the Group
income (OOI) for ANZ
----- End of picture text -----

==> picture [310 x 156] intentionally omitted <==

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

$m OOI Composition
2,856 2,904
680 7% 726
25%
1H14
0%
2,176 2,178
75%
1H13 1H14
Wealth OOI [3 ] Non Wealth OOI
----- End of picture text -----

Overall improved performance from customers with wealth solutions.
Global Wealth is an important and growing source of liquidity.
Global Wealth as a growing source of noninterest income assists Group revenue diversification.

==> picture [23 x 223] intentionally omitted <==

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

STRONG CORE MARKETS
----- End of picture text -----

Australia Only
Wealth sourced includes deposits and lending sourced by Global Wealth but reported in other Divisions 3. Wealth OOI includes Other Operating income, net Funds Management and Insurance income

==> picture [59 x 22] intentionally omitted <==

Growing the Wealth business through ANZ channels

==> picture [633 x 201] intentionally omitted <==

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

Growth in Wealth solutions held by ANZ Increasing productivity of ANZ Financial
Customers [1 ] Planning
# Inflows Retail Life Sales
10% $m $m
48% 13%
818 826 18
17
558 15
1H13 1H14 1H13 2H13 1H14 1H13 2H13 1H14
----- End of picture text -----

Delivering on our strategic priorities

Focus on channels that drive higher returns

==> picture [305 x 159] intentionally omitted <==

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

Insurance ROEC [2]
%
560bps • ANZ channels deliver:
• lower acquisition
costs; and
• better portfolio
performance.
Other ANZ
Channels Channels
----- End of picture text -----

Global Wealth is leveraging the ANZ franchise, building connections to ANZ customers.
Wealth solutions held by ANZ customers increased 10% through:
productivity of ANZ Financial Planning; and
simple self directed solutions, e.g. ANZ Smart Choice.

==> picture [23 x 223] intentionally omitted <==

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

STRONG CORE MARKETS
----- End of picture text -----

Includes Australia, New Zealand and Asia
Return on Economic Capital

==> picture [59 x 22] intentionally omitted <==

Leveraging a profitable franchise in Asia

International & Institutional Banking Asia

A Top 4 Corporate Bank in Asia

Net Profit after Tax (USDm)1 Return on RWA (Basel 3 basis)

AA rated bank with an established regional network and growing client base
Drawing on strong Australian and New Zealand foundations and established industry expertise

==> picture [259 x 312] intentionally omitted <==

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

Key driver strong
1.54%
performance of Markets
FX Revenue (+27% PCP)
1.25%
455
1.24% 1.24%
1.19%
344
326
313
279
+32%
+40%
1H12 2H12 1H13 2H13 1H14
----- End of picture text -----

Focus on flow products of Trade, Cash Management & Markets

Leveraging ANZ‟s core competency as a trade bank
Extending cash management, trade and markets capabilities to a broader regional client base

Building efficiency and returns

Increasing mix of flow products and of non-interest income
Focus on geographies offering scale and connected to faster growing regional trade and capital flow
Delivering consistency and scale through common cash management, trade and markets platforms

Delivering a lower risk balance sheet

Emphasis on banking large, well rated counterparties
Offer shorter duration flow products aligned to a large and diverse deposit funding base

==> picture [23 x 223] intentionally omitted <==

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

PROFITABLE ASIAN GROWTH
----- End of picture text -----

Net Profit after Tax divided by average Basel 3 Risk Weighted Assets

==> picture [59 x 22] intentionally omitted <==

==> picture [670 x 465] intentionally omitted <==

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

ANZ recognised as a leading regional bank in the
Asia Pacific
APEA growing contribution to A top 4 Corporate Bank in Asia [2]
Group Operating Income by Market Penetration
APEA % of Group Operating Income Greenwich Associates Large Corporate Study
24%
Asian Large Corporate Banking Market Penetration
APEA
60%
Network
5%
Revenue [1 ]
2% 17% Bank A
3% 50%
11% 17%
24%
8% 12% 11% Bank B
Europe & 3% 14% 40%6% Bank C
America
Pacific 2%
Asia 3% 2013
30%
FY07 1H14
Recognised as a leading regional bank
20%
2010
Bank D
 Asia Pacific Bank of the Year Bank E
Thomson Reuters Project Finance International 2013 Bank G Bank F
10%
 Best for Overall FX Services as voted by Financial Bank I Bank H
Institutions, AsiaMoney FX Poll 2013
0%
 Asia Pacific‟s Bank of the Year
Greenwich Quality Index [3] - Overall Relationship Quality
The Banker magazine, Bank of the Year Awards 2013
(Difference from the Average)
 #1 Mandated Lead Arranger in Asia ex-Japan
Represents the momentum of growth and quality
Thompson Reuters 31 [st] Mar 2014 improvement achieved by ANZ Bank over the past 4 years
PROFITABLE ASIAN GROWTH
Important Relationships
----- End of picture text -----

Income generated in Australia and New Zealand from ANZ‟s APEA network. Data not available in FY07 2. As defined by Total Relationships Market Penetration In Asia
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

==> picture [59 x 22] intentionally omitted <==

The value of our networked International & Institutional business is drivin im roved returns g p

IIB Operating Income Growth

IIB Operating Income

==> picture [319 x 370] intentionally omitted <==

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

Income by Segment Income Mix By Type
Retail / Partnerships / Other Net Interest Income
Global Loans Other Operating Income
Markets & Transaction Banking
$m
37%
4,000
3,592
3,256
3,000
2,616 59% 57% 55%
2,000
1,000
41% 43% 45%
0
1H10 1H12 1H14 1H10 1H12 1H14
----- End of picture text -----

1H14 v 2H13 1H14 v 1H13 27%

==> picture [291 x 333] intentionally omitted <==

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

14%
11% 11%
5%
3%
Global Foreign Global Cash Global Trade
Exchange Management
Trade a key driver of cross-sell income
1H14 - $1 of Trade income = $0.96 of Cross-Sell [1 ]
$ 1.96
$0.96
$1.00
Trade Global Markets2 Combined
Income Products Income
& Cash Cross-Sell
Income
----- End of picture text -----

==> picture [23 x 223] intentionally omitted <==

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

PROFITABLE ASIAN GROWTH
----- End of picture text -----

Trade customers using Markets and Payments & Cash Management Products
Global Markets products include FX, Commodities and Capital Markets

==> picture [59 x 22] intentionally omitted <==

Trade & Supply Chain supporting super regional strate and rofitable Asian rowth gy p g

TSC a key driver of non-interest income both directly and via cross-sell

ANZ a leading Trade & Supply Chain Bank

Trade and Supply Chain (TSC) delivers cross border risk and working capital solutions.

==> picture [297 x 158] intentionally omitted <==

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

TSC Direct Income TSC Cross-sell Income Mix
8%
GL
22%
15%
Commodities Other
56% 44% Products
OOI NII
27%
28%
FX PCM
----- End of picture text -----

ANZ one of a few Asia Pacific banks offering a full service, in-country, TSC proposition across 28 markets.
Consistent TSC proposition across all markets with product, risk management and trade operations delivered via global platform.
Currently servicing 6,000 clients and processing over 56,000 documentary credits annually.

Delivering growth and improved returns

TSC Funded Balance Sheet Short Tenor

==> picture [23 x 223] intentionally omitted <==

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

PROFITABLE ASIAN GROWTH
----- End of picture text -----

==> picture [119 x 9] intentionally omitted <==

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

Funded Trade Portfolio
----- End of picture text -----

 18%

TSC Intra-Asia income

 15%

Asia funded volumes

Growth in clients using both cash and trade products

 7%

Growth in value added, higher  33% margin structured trade solutions income

==> picture [292 x 138] intentionally omitted <==

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

<30 days
>180 days
24%
6%
Average Tenor
<90 days
91-180
30%
days
40%
31-90
days
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Increased scale driving greater efficiency and returns

Operations productivity gains being achieved through increased volume

IIB Asia Cost to Income Ratio (%)

==> picture [301 x 157] intentionally omitted <==

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

Operations Expense per Transaction
$/Trans.
16.5
13.5
10.5
7.5
FY11 FY12 FY13 1H14
----- End of picture text -----

==> picture [285 x 136] intentionally omitted <==

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

66% 67%
61%
55%
FY11 FY12 FY13 1H14
----- End of picture text -----

Significantly larger franchises in core markets

Asia Volume Growth 1H14 v 1H13 (USD)

Operating Income

==> picture [612 x 156] intentionally omitted <==

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

USDm
57%
600 1H10 1H14
500
400
15% 300
12%
200
100
0
Lending Deposits FX Turnover Greater China South East Asia
ex-partnerships ex-partnerships
----- End of picture text -----

==> picture [23 x 223] intentionally omitted <==

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

PROFITABLE ASIAN GROWTH
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Delivering a lower risk balance sheet through shorter duration and better asset ualit q y

==> picture [633 x 398] intentionally omitted <==

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

Institutional Asia Tenor Institutional Asia Risk Grade Profile
by Exposure at Default by Exposure at Default
70% < 1 Year Tenor 73% Investment Grade Exposures
USDb < 1 year tenor > 1 year tenor USDb Investment Grade Sub-Investment Grade1
100 100
92 92
90 86 90 86
80 80
67 67
70 70
60 55 60 55
50 50
40 35 40 35
30 30
20 20
10 10
0 0
Sep 10 Sep 11 Sep 12 Sep 13 Mar 14 Sep 10 Sep 11 Sep 12 Sep 13 Mar 14
----- End of picture text -----

==> picture [23 x 223] intentionally omitted <==

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

PROFITABLE ASIAN GROWTH
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

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

==> picture [23 x 223] intentionally omitted <==

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

ENTERPRISE APPROACH
----- End of picture text -----

Building common infrastructure for greater res onsiveness roductivit and control p , p y

Core processes in multiple locations on common systems mitigates disruption risk & allows greater flexibility while improving productivity

We have created a regional delivery network to consolidate and standardise processes and improve quality, productivity and reduce risk

Integrated model enables more focus on planning and delivery of priority enterprise wide objectives.

==> picture [317 x 326] intentionally omitted <==

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

Chengdu, China
Hong Kong
Manila,
Philippines
Suva, Fiji
Bangalore,
India
Singapore
Melbourne & Sydney,
Australia
Auckland & Wellington,
New Zealand
----- End of picture text -----

Ability to withstand disruption events (eg. Wellington earthquakes) without adverse customer impacts through load sharing.

Examples of Enterprise Approach

Wholesale lending operations merged into one global function operating across multiple locations in an increasingly standardised way.
Consolidated global trade operations into 4 key locations on a single platform to harness knowledge pools and improve efficiency.
Markets operations consolidated to 3 core locations for improved control and quality.
Payments operations consolidated into 5 key locations to mitigate disruption risk and ensure business resilience.

==> picture [59 x 22] intentionally omitted <==

Delivering improved productivity and a better customer experience, some examples include:

Transaction Quality, Manual Payments Defects Per Million

Operations Volume Growth 1H14 v 1H13

==> picture [605 x 154] intentionally omitted <==

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

9%
865
8% 8% 8%
7%
670
495
400
180
151
Total Australia New IIB Global 1H11 1H12 2H12 1H13 2H13 1H14
Zealand Wealth
----- End of picture text -----

Operations Expense Growth[1 ] 1H14 v 1H13

Straight Through Processing Aust/NZ % of Total Transactions[2 ]

==> picture [279 x 147] intentionally omitted <==

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

1%
-4% -4%
-5%
-6%
Total Australia New IIB Global
Zealand Wealth
----- End of picture text -----

==> picture [292 x 149] intentionally omitted <==

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

90-95%
87%
83%
76%
68%
FY11 FY12 FY13 1H14 Global
Best
Practice
----- End of picture text -----

==> picture [23 x 223] intentionally omitted <==

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

ENTERPRISE APPROACH
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Growths have been calculated on constant FX basis
Inward International Payments

1 May 2014

Case Study: Greater China

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

Our Greater China franchise is focused on supporting lar e and rowin trade and ca ital flows g g g p

Trade and capital flows between Greater China and the rest of world continue to grow strongly.

Trade and capital flows within Greater China also present significant opportunities

Greater China (GC) inter-regional trade flows, Total Chinese outward investment[1] & Net Chinese FDI flows 2013, $USDbn

Intra-Greater China Trade & net FDI flows 2013, $USDbn

==> picture [622 x 305] intentionally omitted <==

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

Europe & America Left: Trade flow
932 [2 ] 117.9 9 6 Right: Net FDI flow
China
Mainland
China
Greater
China
Taiwan
385 74 82 9
Rest of Asia Pacific
Hong Kong
1,394 [2] 42.7 7 20
251 74 41 0.1
10 0.3
Australia & New Zealand Hong
Taiwan
170 57.1 2.1 0.9 Kong
Trade = imports + exports 39 -0.02
Total Chinese outward investment
Left: Net FDI flows from China
Right: Net FDI flows to China
----- End of picture text -----

Source: ANZ Economics team, Heritage Foundation

==> picture [59 x 22] intentionally omitted <==

Investments of ≥USD100m recorded from 2005 to Jun 2013
Europe = UK and Germany, Asia Pac = Asia Pacific markets (excl. GC) with an ANZ presence

ANZ’s well defined strategic focus has resulted in a stron customer franchise and rowin business g g g

Strategic Focus

ANZ Greater China strategy is focused on:

Being the bank of choice for Greater China corporates and affluent individuals investing in Australia, New Zealand and the rest of Asia Pacific
Leveraging our sector/product expertise and network to facilitate fast growing trade flows with and within Greater China;
Being a leading on the ground international bank to multinationals operating in Greater China

Corporate Profile

	Staff	Branches	Presence since
China	~950	81	1986
Hong Kong	~1,300	3	1970
Taiwan	~1,650	14	1980

Operating Income

Operating Income Mix

==> picture [641 x 171] intentionally omitted <==

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

$AUDm Organic Partnership By Business Institutional Mix
1000 +16%
800 Partnerships Global
Other
+18% Loans
600
Markets
Retail
400
Trans.
200 +19% +20% Institutional Banking
0
FY11 FY12 FY13 1H13 2H13 1H14
----- End of picture text -----

5 branches, 3 sub-branches under Local Incorporated entity ANZ Bank (China), and 1 rural bank

==> picture [59 x 22] intentionally omitted <==

1 May 2014

Group Treasury

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

ANZ is well capitalised

Capital Update

Basel 3 Common Equity Tier 1 (CET1)

Capital levels will grow organically in the lead up to the introduction of the higher loss absorbing capital requirements for D-SIB‟s in 2016
$1.6b ANZ Capital Notes 2 Additional Tier 1 transaction successfully completed during the half
Interim dividend up 14% in part reflecting rebalancing of interim & final dividend
Dividend Payout to remain towards upper end of 65% - 70% range

==> picture [314 x 35] intentionally omitted <==

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

APRA CET1
Movement Mar 2014 v Sep 2013
----- End of picture text -----

==> picture [298 x 158] intentionally omitted <==

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

%
1.04
8.48 0.27 0.18 8.33
0.74
Sep 13 Cash RWA Non RWA Dividends Mar 14
NPAT1 Usage2 Business
Usage3
----- End of picture text -----

8.0% 8.5% 8.3% 10.0% 10.8% 10.5% Sep 12 Sep 13 Mar 14 APRA Internationally Harmonised	8.0% 8.5% 8.3% 10.0% 10.8% 10.5% Sep 12 Sep 13 Mar 14 APRA Internationally Harmonised	8.0% 8.5% 8.3% 10.0% 10.8% 10.5% Sep 12 Sep 13 Mar 14 APRA Internationally Harmonised	8.0% 8.5% 8.3% 10.0% 10.8% 10.5% Sep 12 Sep 13 Mar 14 APRA Internationally Harmonised
Capital reconciliation under Basel 3
	CET1	Tier 1	Total Capital
APRA	8.3%	10.3%	12.1%
10% allowance for investments in insurance subs and ADIs	0.8%	0.7%	0.7%
Mortgage 20% LGD floor and other measures	0.6%	0.7%	0.7%
IRRBB RWA (APRA Pillar 1 approach)	0.4%	0.5%	0.6%
Up to 5% allowance for deferred tax asset	0.2%	0.2%	0.2%
Other capital items	0.2%	0.2%	0.2%
Internationally Harmonised	10.5%	12.6%	14.5%

Cash earnings net of preference share dividends
Includes impact of expected loss versus eligible provision shortfall
Includes capital retention of deconsolidated entities, capitalised software and other intangibles

==> picture [59 x 22] intentionally omitted <==

The strength of ANZ’s capital levels (CET1) is more a arent on a lobal com arison pp g p

==> picture [633 x 404] intentionally omitted <==

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

Australia Canada UK
>11.5%
>11.0%
10.5%
CCB & D-SIB
effective
1 Jan 2016 9.3% 9.6%
8.3%
8.0%
1.0%
D-SIB
2.5%
CCB
4.5%
CET1
APRA ANZ ANZ ANZ Canadian Peer ANZ UK Peer Average 2
Minimum APRA (Intenationally (under Canada Average 2 (under UK
Harmonised) regulation)1 regulation)1
----- End of picture text -----

ANZ estimate
Canada Peers (Scotiabank, BMO, TD Bank, and RBC) as at Jan 14 and UK Peers (HSBC, Barclays, and RBS) as at Dec 13 based on a Basel 3 fully transitioned basis, obtained from most recent Capital Adequacy and Risk Management (Pillar 3) disclosures

Stable Balance Sheet composition

Stabilised funding mix Tenor of Assets has shortened

==> picture [611 x 365] intentionally omitted <==

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

29% 18% 18% 16% 25% 25%
7%
15% 15% 13% 13%
22% 8%
3% 3% 1% 8% 8%
12% 12% 4% 4%
7%
14%
80%
62% 62% 72% 72%
50%
7% 8% 8%
4% 3% 3%
Sep 08 Sep 13 Mar 14 Sep 08 Sep 131 Mar 14
SHE & Hybrid Debt Customer Funding Other Fixed Assets Lending
Term Debt >1yr Term Debt <1yr Trade Loans Other ST Assets
ST Wholesale Funding Liquid Assets
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Sep 13 includes a minor reclassification of lending into trade loans (<0.5%)

A well diversified term wholesale funding portfolio

Term Wholesale Funding Portfolio[1 ]

==> picture [634 x 206] intentionally omitted <==

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

$b Issuance Maturities
26
24 24
Annual indicative
21
19 18 issuance volume
16
14
13
12
7
1
2 3
FY10 FY11 FY12 FY13 FY14 FY14 FY15 FY16 FY17 FY18 FY19 FY20+
Senior Unsecured Covered Bonds Tier 2 Government Guaranteed Expected Remaining Issuance
Term Wholesale Funding Portfolio Term Wholesale Funding Portfolio
(by Type) (by Currency)
----- End of picture text -----

==> picture [615 x 195] intentionally omitted <==

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

Term Wholesale Funding Portfolio Term Wholesale Funding Portfolio
(by Type) (by Currency)
2%
9% 6% 8%
Domestic
8%
9%
20% Government 7% (AUD/NZD)
13% 18%
Guaranteed North America
Tier 2 33% (USD, CAD)
23%
UK & Europe
Covered (€,£,CHF)
69% 68% 72%
Bonds Asia (JPY, HKD,
Senior SGD, CNY)
35%
Unsecured Other
Sep 12 Sep 13 Mar 14
----- End of picture text -----

Includes transactions with a call or maturity date greater than 12 months as at 30 September in the respective year of issuance 2. Approximately $1b of funding has been issued post 31 March 2014

==> picture [59 x 22] intentionally omitted <==

Remaining FY14 maturities

Structural funding gap

Peer Funding Comparison

==> picture [301 x 371] intentionally omitted <==

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

ANZ requires
~$45b less
wholesale funding
to meet this gap
Loan - Deposit Loan to Deposit Australian
Ratio (%) Gap ($b) Household Funding
Gap ($b)
ANZ CBA NAB Westpac
183
177
160
154
150
141 140
137
129
127
117
105
----- End of picture text -----

Australian household credit growth not expected to return to previous levels

==> picture [308 x 160] intentionally omitted <==

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

% Change
Household Sector Growth
(YoY)
Average (Mar 99 - Mar 08)
25 Average (Mar 08 - Mar 14)
20
15
10
5
0
Mar 99 Mar 04 Mar 09 Mar 14
----- End of picture text -----

ANZ has the lowest Australian Household Funding Gap

==> picture [309 x 165] intentionally omitted <==

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

$b Australian Household Funding Gap
200
175
150
125
100
75
Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14
ANZ WBC NAB CBA
----- End of picture text -----

Source: APRA (Mar 14) CBA (Dec 13), NAB (Sep 13) and Westpac (Sep 13)

==> picture [59 x 22] intentionally omitted <==

Liquidity Portfolio – well placed for introduction of LCR

==> picture [359 x 407] intentionally omitted <==

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

Liquid Assets [1 ]
$b
122
117
39
35
16
17
39
9 67 65
17
13
Sep 08 Sep 13 Mar 14
Internal RMBS
Private Sector Securities & Precious Metals
Cash, Government & Semi-Government Securities
----- End of picture text -----

Liquidity Update

Reduction in internal RMBS in Australia during the first half of FY14 is due to higher prescribed haircuts from the RBA[2 ]
The final APS210 (Basel 3) liquidity standard was released in December 2013, and there were no material changes from previous draft
In January, APRA confirmed the size of the Committed Liquidity Facility (CLF) „trial exercise‟ for the industry with a total size of $282b[3] . The exercise is to be repeated in mid-2014 for the 2015 CLF
ANZ is well placed for compliance with the Liquidity Coverage Ratio from January 2015
Post RBA haircut.
More information can be found at the Reserve Bank of Australia website (rba.gov.au under „Eligible Securities‟)

==> picture [59 x 22] intentionally omitted <==

Source: APRA, “Implementation of the Basel III liquidity framework in Australia - Committed liquidity facility”

Foreign currency hedging

1H14 Earnings Composition (by Currency)

==> picture [253 x 205] intentionally omitted <==

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

AUD
55%
Other
IDR
21%
NZD
24%
----- End of picture text -----

A key objective of hedging is to manage short term EPS volatility arising from foreign currency earnings
Hedges currently in place: FY14: ~70% of remaining earnings FY15: ~65% of NZD and ~30% of USD (inc. USD correlated) earnings
At 31 March, the expected impact of FX movements on FY14 earnings (inclusive of hedges) was positive ~1.4% EPS
Hedging has reduced the impact of a 5% movement of the AUD to less than 1% for FY15

Earnings per Share FX Impact

==> picture [291 x 121] intentionally omitted <==

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

1.9%
1.1%
----- End of picture text -----

==> picture [212 x 9] intentionally omitted <==

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

1H14 v 1H13 1H14 v 2H13
----- End of picture text -----

==> picture [313 x 35] intentionally omitted <==

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

Translation Rates
(inclusive of hedges)
----- End of picture text -----

==> picture [299 x 153] intentionally omitted <==

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

1.35 1.04
1.02
1.30
1.00
1.25
0.98
0.96
1.20
0.94
1.15
0.92
1.10 0.90
1H12 2H12 1H13 2H13 1H14
NZD Translation (LHS) USD Translation (RHS)
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Capital and replicating portfolio: Impact from a low interest rate environment on Grou NIM is reducin p g

Australia New Zealand

1H14: ~$180m portfolio earnings benefit relative to the average RBA cash rate

1H14: ~A$60m portfolio earnings benefit relative to the average RBNZ cash rate

==> picture [618 x 316] intentionally omitted <==

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

6% 6%
5% 5%
4% 4%
3% 3%
2% 2%
1% 1%
0% 0%
1H11 2H11 1H12 2H12 1H13 2H13 1H14 1H11 2H11 1H12 2H12 1H13 2H13 1H14
Australia Portfolio Earnings Rate New Zealand Portfolio Earnings Rate
Average RBA Cash Rate Average RBNZ Cash Rate
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

1 May 2014

Risk Management

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

Credit Quality – ongoing improvement

Credit Quality Trends 1H14 v 2H13

Provision Charge

==> picture [637 x 381] intentionally omitted <==

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

Individual Provision (IP) Charge (LHS)
Collective Provision (CP) Charge (LHS)
$m
Collective Provision Total Provision Charge as % Avg. Net Advances
93bps 1,000
Coverage [1 ]
750
500
0.36%
 12% Total Provision Charge 250 0.29% 0.28% 0.32% 0.27% 0.25% 0.21%
0
-250
Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14
 15% Gross Impaired Assets Impaired Assets
$m Gross Impaired Assets New Impaired Assets
7,000
Avg. $434m
6,000 decline HoH
 10% New Impaired Assets
5,000
4,000
3,000
2,000
Credit RWA Rate
39% 1,000
(CRWA/EAD) 0
Mar Sep Mar Sep Mar Sep Mar
11 11 12 12 13 13 14
1H11 2H11 1H12 2H12 1H13 2H13 1H14
----- End of picture text -----

Growth rates reflect 1H14 v 2H13

==> picture [59 x 22] intentionally omitted <==

This ratio is the Collective Provision balance as a proportion of Credit Risk Weighted Assets

Collective Provision

Significant “de-risking” across portfolios is evident from the CP movement

CP Coverage Reflective of Portfolio Risk

ANZ remains prudently provided for with a collective provision coverage ratio of 93bps
The collective provision balance has reduced due to improved customer risk profile and transfer from CP to IP of several large accounts
Recognising stress remains in some sectors of the Australian economy, the management overlay was increased by $41m during the half, bringing the total management overlay balance to $631m as at 31 March 2014

$b Credit Risk Weighted Assets Collective Provision as a % of CRWA

==> picture [290 x 123] intentionally omitted <==

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

1.36%
1.28%
1.20% 1.08% 1.00% 1.00% 0.93%
233 249 250 255 276 288 305
----- End of picture text -----

Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14

==> picture [313 x 35] intentionally omitted <==

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

Collective Provision by Division
----- End of picture text -----

Collective Provision by Source

==> picture [623 x 159] intentionally omitted <==

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

$m $m
29
2,887 2,887
30 2,843 30 2,843
54
41
47 2 85
10
190
Sep 13 Australia IIB New Wealth & FX Mar 14 Sep 13 Risk Lending Portfolio Mgmt. FX Mar 14
Zealand Other Movement Growth Mix Overlay movement
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Individual Provisions

Individual Provision Charge by Segment

==> picture [300 x 357] intentionally omitted <==

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

$m Institutional Commercial Consumer
1,000
915
900
800
722
700
609
594 595 602
600 572
500
400
300
200
100
0
1H11 2H11 1H12 2H12 1H13 2H13 1H14
----- End of picture text -----

Individual Provision Charge Composition

==> picture [305 x 154] intentionally omitted <==

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

$m New Increased Writebacks & Recoveries
1,500
915
1,250 609 722
594 595 572 602
1,000
750
500
250
0
-250
-500
1H11 2H11 1H12 2H12 1H13 2H13 1H14
----- End of picture text -----

Individual Provision Charge by Region

==> picture [306 x 149] intentionally omitted <==

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

$m Australia New Zealand APEA
1,000 915
800 722
594 609 595 572 602
600
400
200
0
1H11 2H11 1H12 2H12 1H13 2H13 1H14
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Watch and Control List

Control List

Group Sub-Investment Grade[1] Exposures as % Exposure at Default

==> picture [629 x 371] intentionally omitted <==

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

Control List by Limits Control List by No of Groups <BB- BB- BB+ to BB
Index Sep 09 = 100
27.6% 27.8%
120
100
25.1%
80
23.4%
60 22.1%
21.6%
40 12.6% 12.5%
20
11.7%
11.3%
11.1%
11.0%
Group Investment Grade Exposures
78.4%
76.6% 77.6% 77.9% 8.8% 8.9%
76.1%
7.8%
7.6%
6.8%
6.6%
6.2% 6.4%
5.6%
4.5% 4.2% 4.0%
Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 Sep 09 Sep 10 Sep 11 Sep 12 Sep 13 Mar 14
Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14
----- End of picture text -----

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

==> picture [59 x 22] intentionally omitted <==

Gross Impaired Assets

==> picture [312 x 405] intentionally omitted <==

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

Gross Impaired Assets by Type
Impaired Loans NPCCD1 Restructured
$m
7,000
6,221
6,000
5,581
5,343
5,196
5,000
4,685
4,264
4,000
3,620
3,000
2,000
1,000
0
Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14
----- End of picture text -----

Gross Impaired Assets by Size of Exposure

==> picture [296 x 360] intentionally omitted <==

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

$100m $10-$99m < $10m
$m
7,000
6,221
6,000
5,581
5,343
5,196
5,000
4,685
4,264
4,000
3,620
3,000
2,000
1,000
0
Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

NPCCD - Non-Performing Commitments, Contingents & Derivatives

Net Impaired Assets

New Impaired Assets by Division

==> picture [305 x 158] intentionally omitted <==

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

Australia New Zealand IIB Other
$m
3,000
2,437
2,356
2,500
1,842 1,847
2,000
1,571 [1,716 ] 1,541
1,500
1,000
500
0
1H11 2H11 1H12 2H12 1H13 2H13 1H14
----- End of picture text -----

Net Impaired Assets by Division

==> picture [307 x 139] intentionally omitted <==

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

Australia New Zealand IIB Other
$m
5,000 4,504
3,884
4,000 3,629 3,423
3,142
2,797
3,000
2,150
2,000
1,000
0
----- End of picture text -----

Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14

Impaired Assets Concentration by number of Customers[1 ]

==> picture [293 x 144] intentionally omitted <==

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

$10-50m $51-100m $101-200m >$200m
2% 2% 3% 2% 3% 3% 3% 5% 3% 3% 3% 9% 3% 5%
17% 19% 16% 11% 11% 8%
78% 77% 78% 82% 83% 88% 84%
----- End of picture text -----

Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14

Impaired Assets Concentration by value of Impaired Assets[1]

==> picture [292 x 137] intentionally omitted <==

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

$10-50m $51-100m $101-200m >$200m
15%
24% 27% 22% 24% 23% 26%
8% 5% 11% 16% 9% 21%
18%
29% 31% 27% 18% 21% 16%
56%
39% 37% 39% 42% 47% 48%
----- End of picture text -----

Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14

==> picture [59 x 22] intentionally omitted <==

Only >$10m customers

Loss Rates Comparison

Loss rates continue to decline…

Group Regulatory Expected Loss

Regulatory Expected Loss is a one-year downturn loss measure as prescribed by APRA and reported in the Results Announcement

==> picture [631 x 325] intentionally omitted <==

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

bps of
EAD measure as prescribed by APRA and reported in the
27bps Results Announcement
• Includes conservative overlays that are not reflective of
62 [1 ] an „expected‟ outcome such as:
• Balance Sheet Individual Provisions (which have
7
already been expensed to Profit and Loss)
89
83 • assumes stressed asset valuations
69 67
57 55 • places a minimum 20% LGD (Loss Given Default) on
all Australian Mortgages
• On a like-for-like basis, the Mar 14 Regulatory Expected
Sep 09 Sep 10 Sep 11 Sep 12 Sep 13 Mar 14 Loss figure decreased by 2bps from Sep 13
Historical IP Loss Rate
bps
250 2
Adjusted IP Loss Rate for Current Portfolio Mix
200 IP Loss Rate
150 1997-2014 average
100
50
33bps
0
Sep 90 Sep 92 Sep 94 Sep 96 Sep 98 Sep 00 Sep 02 Sep 04 Sep 06 Sep 08 Sep 10 Sep 12 Mar 14
----- End of picture text -----

Includes additional individual provisions for partial write offs post Sep 13 due to a change in RWA calculation methodology increasing the Mar 14 Regulatory Expected Loss figure by 7bps
Adjusted loss rate is based on applying the current portfolio mix to prior period loss rates

==> picture [59 x 22] intentionally omitted <==

Risk Weighted Assets

Total Risk Weighted Assets

==> picture [301 x 372] intentionally omitted <==

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

$b
Markets & Operational Risk Weighted Assets
Credit Risk Weighted Assets
361
339
55
324
51
300
50
280
45
265
31
252
31
22
305
288
274
255
249
230 234
Sep 09 Sep 10 Sep 11 Sep 12 Sep 13 Sep 13 Mar 14
Basel 2 Basel 3
----- End of picture text -----

Total Risk Weighted Assets Movement Mar 2014 v Sep 2013

==> picture [17 x 11] intentionally omitted <==

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

$b
----- End of picture text -----

==> picture [306 x 143] intentionally omitted <==

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

3 361
1
18
339
Up 6%
Sep 13 Credit Market & Operational Mar 14
Risk IRRBB Risk Risk
----- End of picture text -----

Total Risk Weighted Assets Movement by Division Mar 2014 v Sep 2013

==> picture [306 x 145] intentionally omitted <==

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

$b
6 0.3 361
15
339 0.2
Up 6%
Sep 13 Australia IIB NZ Other Mar 14
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Credit Risk Weighted Assets

Group Exposure at Default and Credit Risk Weighted Assets

Credit Risk Weighted Assets Movement Mar 2014 v Sep 2013

==> picture [640 x 371] intentionally omitted <==

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

Exposure at Default ($b) $b
Credit Risk Weighted Assets ($b) 3.4 305.3
3.4
CRWA / EAD (%) 12.2
779
741
287.7
692
658 1.4
630
615
564
Sep 13 Risk Growth Portfolio FX Mar 14
Data Impact
41%
40% Review
40% 40% 39% 39%
39%
Credit Risk Weighted Assets
Movement by Division Mar 2014 v Sep 2013
305
288 $b
276
249 250 255
233 5.4 0.3 305.3
10.6
1.3
287.7
Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14
Sep 13 Aus IIB NZ Other Mar 14
Basel 2 Basel 3
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Traded Market Risk & IRRBB Risk Weighted Assets

Decisions driving Risk Weighted Asset and VaR outcomes

RWA for Interest Rate Risk in the Banking Book (IRRBB) was lower primarily due to a reduction in the Investment Term of Capital
Other contributors to the reduction in RWA include changes in the interest rate risk profile providing a diversification benefit to the Investment Term of Capital position and recent updates to the rates history as some extreme scenarios relating to GFC dropped out
The recent increases in Traded Market Risk 1-day 99% VaR and RWAs reflects higher Foreign Exchange and Interest Rate risk and relatively lower diversification in the Traded Market portfolio compared to FY13
Traded Market Risk RWAs were impacted by Basel 2.5 introduction in Jan 2012

Generating improved Markets Risk-adjusted Income outcomes

Market Risk Weighted Asset Trends

==> picture [310 x 196] intentionally omitted <==

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

$b IRRBB RWAs $m
25 Traded Market Risk RWAs 50
Traded Market Risk 1-day VaR (RHS)
20 40
15 30
10 20
5 10
0 0
Mar-10Mar 10 Mar 11 Mar-11 Mar 12 Mar-12 Mar 13 Mar-13 Mar 14 Mar-14
----- End of picture text -----

Income ($) / VaR[1 ]

Sales & Trading business has continued to grow its income stream. The lower Income / 1-day 99% VaR ratio for 1H14 is a result of an increase in Trading book VaR in 1H14, which is aligned with the increased proportion of income from Trading activities
Balance Sheet Income for 1H14 reflects strong performance led by the Liquidity Portfolio with credit spreads tightening

==> picture [294 x 137] intentionally omitted <==

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

$ Global Markets Sales & Trading (Traded)
Balance Sheet (Non-Traded)
250
198
200 170 163
150
91
100
42
50 12 17 14 18
17
0
FY10 FY11 FY12 FY13 HY14
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Average 1-day 99% VaR

Total Credit Exposure (EAD) by Industry

Category	EAD	EAD	EAD	% in Non Performing	% in Non Performing	% in Non Performing
	Mar 13	Sep 13	Mar 14	Mar 13	Sep 13	Mar 14
Consumer Lending	40.4%	40.8%	40.3%	0.2%	0.2%	0.2%
Finance, Investment & Insurance	16.8%	15.9%	16.4%	0.2%	0.1%	0.1%
Property Services	7.1%	7.1%	7.0%	1.6%	1.1%	1.7%
Manufacturing	6.1%	6.0%	6.1%	1.0%	0.7%	0.6%
Agriculture, Forestry, Fishing	4.2%	4.3%	4.2%	4.1%	4.1%	3.5%
Government & Official Institutions	3.9%	4.0%	3.8%	0.0%	0.0%	0.0%
Wholesale trade	4.0%	3.9%	3.9%	0.6%	0.8%	0.6%
Retail Trade	2.9%	2.9%	2.7%	0.8%	0.9%	0.6%
Transport & Storage	2.2%	2.2%	2.4%	2.0%	1.6%	3.0%
Business Services	1.9%	2.0%	1.9%	0.7%	0.5%	1.3%
Resources (Mining)	1.8%	1.9%	2.3%	0.2%	1.2%	0.7%
Electricity, Gas & Water Supply	1.7%	1.7%	1.7%	0.1%	0.1%	0.1%
Construction	1.6%	1.7%	1.6%	1.2%	1.1%	1.9%
Other	5.4%	5.7%	5.7%	0.1%	0.9%	0.6%

==> picture [59 x 22] intentionally omitted <==

Asia and Trade Finance

Strong quality Asia Exposure

Strong growth in Trade Finance portfolio focussed on shorter duration exposures to investment grade counterparties
The Trade Finance portfolio displays average tenor of less than 90 days and provides access to a large and high quality multi-national customer base
Overall, the Institutional Asia exposure is of a similar quality to Institutional Australia, with a strong risk profile displayed across all Institutional geographies

Institutional Investment Grade Exposure by Geography

Investment Grade Sub-Investment Grade

==> picture [285 x 131] intentionally omitted <==

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

15%
27% 28%
85%
73% 72%
Asia Australia New Zealand
----- End of picture text -----

Trade Finance Investment Grade Exposure

Investment Grade Sub-Investment Grade $b 60

==> picture [295 x 319] intentionally omitted <==

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

40
20
69% 68%
69%
67%
66%
0
Mar 12 Sep 12 Mar 13 Sep 13 Mar 14
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Resources

Resources Exposure by Sector (% EAD)

==> picture [271 x 351] intentionally omitted <==

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

Resources
Total EAD (Mar 14) As a % of Group EAD
$17.2b 2.3%
16% 6%
23%
(includes
Iron Ore 10%) 39%
16%
Oil & Gas Coal
Metal Ore Mining Services
Other
----- End of picture text -----

Resources Exposure by Geography (EAD)

==> picture [255 x 122] intentionally omitted <==

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

19%
Australia
Asia
6%
48%
New Zealand
27% Europe, America,
Pacific & Other
----- End of picture text -----

Resources Exposure by Geography (EAD)

==> picture [298 x 165] intentionally omitted <==

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

$b Australia Non-Australia
20
15
10
5
0
Sep 10 Sep 11 Sep 12 Sep 13 Mar 14
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Agriculture

Agriculture Exposure by Sector (% EAD)

==> picture [272 x 356] intentionally omitted <==

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

Agriculture
Total EAD (Mar 14) As a % of Group EAD
$32.1b 4.2%
14%
10%
39%
13%
3%
8%
4% 5% 4%
Dairy Beef
Sheep & Other Livestock Grain
Wheat Horticulture/Fruit
Other Crops Forestry & Fishing
Agriculture Services
----- End of picture text -----

New Zealand Agri Exposure and Average Probability of Default

==> picture [313 x 196] intentionally omitted <==

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

NZD Total Credit Exposure (LHS)
NZDb Average PD (Non-Defaulted Customers) (RHS)
25 2.5%
20 2.0%
15 1.5%
10 21 19 1.0%
5 18 17 18 0.5%
0 0.0%
Sep 10 Sep 11 Sep 12 Sep 13 Mar 14
Agriculture Security Levels
----- End of picture text -----

==> picture [295 x 163] intentionally omitted <==

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

8% 10% 6%
6% 4%
8% 11%
16%
26%
79%
70%
56%
Group Australia New Zealand
Fully Secured 80-100% Secured
60-80% Secured <60% Secured
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Commercial Property Lending

Commercial Property Outstandings by Region

Commercial Property Outstandings by Sector

==> picture [306 x 353] intentionally omitted <==

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

APEA (LHS) New Zealand (LHS)
Australia (LHS) % of Group GLA's (RHS)
$b
35 8.0%
30 4.1 4.5
3.5 7.5%
3.4 4.0
3.1
2.7
25 5.0 4.9 5.3 5.4 6.1 6.6
4.7 7.0%
20
6.5%
15
6.0%
10 20.7 [21.3 ] [21.7 22.1 21.2 ] [21.8 ] [21.1 ]
5.5%
5
0 5.0%
Mar Sep Mar Sep Mar Sep Dec
11 11 12 12 13 13 13
----- End of picture text -----

==> picture [234 x 134] intentionally omitted <==

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

Offices
27%
Retail
Residential
30%
21% Industrial
Tourism
15% Other
3%
4%
----- End of picture text -----

Commercial Property Peer Comparison[1 ]

$m	ANZ	NAB	WBC	CBA
Commercial Property Portfolio EAD	47,319	69,836	64,016	54,219
Property EAD/Total EAD	5.93%	8.58%	8.21%	6.54%
Impaired Assets	485	2,724	1,214	550
Property Impaired Assets /Property EAD	1.02%	3.90%	1.90%	1.01%

Source is the most recent full Pillar 3 disclosures specific to Commercial Property Segment. ANZ Pillar 3 disclosures include Property Services

==> picture [59 x 22] intentionally omitted <==

Australia Division Credit Quality

Australia Division Credit Exposure (EAD)

Australia Home Loans 90+ day delinquencies by state[1]

Mar 11 Mar 12 Mar 13 Mar 14[2 ]

==> picture [256 x 127] intentionally omitted <==

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

Home Loans
Corporate & 24%
Commercial
Consumer Cards
6%
1%
Personal Loans 68%
1%
Other
----- End of picture text -----

==> picture [289 x 122] intentionally omitted <==

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

1.2%
1.0%
0.8%
0.6%
0.4%
0.2%
0.0%
VIC NSW QLD WA Portfolio
& ACT
----- End of picture text -----

Australia Division 90+ day delinquencies[1]

Australia Home Loans Portfolio by state[3 ]

==> picture [619 x 155] intentionally omitted <==

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

Home Loans (inclusive of hardship change)2 VIC NSW & ACT QLD WA Other
Consumer Cards
Corporate & Commercial Banking
3.0%
Mar 14 29.2% 26.3% 18.2% 16.6% 9.7%
2.0% 1.36%
1.12%
1.0% Mar 13 28.8% 26.5% 18.4% 16.5% 9.8%
0.53%
0.0%
Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 0% 25% 50% 75% 100%
----- End of picture text -----

Delinquency excluding Non Performing Loans
Includes hardship cases 90+ DPD has impacted underlying trends during FY14. March‟14 90+ DPD excluding hardship changes is 0.46%, inclusive of hardship changes 0.53%
Gross loans and advances by state

==> picture [59 x 22] intentionally omitted <==

Australia Division - Home Loan Portfolio[1 ]

1H14 Portfolio Statistics	1H14 Portfolio Statistics	0% 10% 20% 30% 40% 50% 60% 0-60% 61-75% 76-80% 81-90% 91-95% 95%+ Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 % of Portfolio LVR >90% = 2.3% (Mar 14) Dynamic Loan to Value Ratio Individual Provision as % Gross Loans	0% 10% 20% 30% 40% 50% 60% 0-60% 61-75% 76-80% 81-90% 91-95% 95%+ Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 % of Portfolio LVR >90% = 2.3% (Mar 14) Dynamic Loan to Value Ratio Individual Provision as % Gross Loans	0% 10% 20% 30% 40% 50% 60% 0-60% 61-75% 76-80% 81-90% 91-95% 95%+ Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 % of Portfolio LVR >90% = 2.3% (Mar 14) Dynamic Loan to Value Ratio Individual Provision as % Gross Loans	0% 10% 20% 30% 40% 50% 60% 0-60% 61-75% 76-80% 81-90% 91-95% 95%+ Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 % of Portfolio LVR >90% = 2.3% (Mar 14) Dynamic Loan to Value Ratio Individual Provision as % Gross Loans	0% 10% 20% 30% 40% 50% 60% 0-60% 61-75% 76-80% 81-90% 91-95% 95%+ Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 % of Portfolio LVR >90% = 2.3% (Mar 14) Dynamic Loan to Value Ratio Individual Provision as % Gross Loans
Total Number of Home Loan Accounts	903k
Total Home Loans FUM	$202b
% of Total Australia Geography Lending	59%
% of Total Group Lending	39%
Owner Occupied Loans - % of Portfolio2	61%
Average Loan Size at Origination (1H14 average)3	$345k
Average LVR at Origination (1H14)	71%
Average Dynamic LVR of Portfolio4	50%
			2H12	1H13	2H13	1H14
% of Portfolio Ahead on Repayments5,6	47%
		Group	0.43%	0.27%	0.24%	0.24%
% of Portfolio Paying Interest Only6	33%
		Australia Home Loans	0.02%	0.02%	0.02%	0.01%

Refers to Net Home Loans book (excluding non-performing loans and offset balances); 2. Excluding funds on Equity Manager Accounts; 3. Average loan size of home loans written in 1H14 excluding offset accounts; 4. Dynamic LVR excluding capitalised LMI; 5. % of customers that are one month or more ahead of repayments; 6. Excludes revolving credit facilities

==> picture [59 x 22] intentionally omitted <==

Lenders Mortgage Insurance

Background

ANZLMI maintains industry low loss ratios[1 ]

ANZ‟s Captive Mortgage insurance business (ANZLMI) provides Lenders Mortgage Insurance for residential mortgages originated through ANZ channels
ANZLMI remains well capitalised (independent to ANZ) and well above APRA minimum levels
Stress testing indicates that an average unemployment rate in excess of 8% and property price falls of 25% (from peak to trough) sustained over 3 years are required to breach regulatory capital

==> picture [298 x 158] intentionally omitted <==

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

Industry ANZ LMI
Insurer 1 Insurer 2
Insurer 317.5% LMI
150%
Insured
100%
50%
0%
-50%
FY06 FY07 FY08 FY09 FY10 FY11 FY12
----- End of picture text -----

Current Reinsurance Arrangement

==> picture [241 x 142] intentionally omitted <==

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

% of FUM
20%
80% LMI
LMI Not Insured
Required
----- End of picture text -----

Lenders mortgage insurance is used on mortgages LVR 80% and above
Reinsurance is comprised of a Quota share arrangement with reinsurers for mortgages 90% LVR and above and in addition an aggregate stop loss arrangement for policies over 80%
ANZLMI has developed diversified panel comprised of APRA authorised reinsurers and reinsurers with highly rated security
Negative Loss ratios are the result of reductions in outstanding claims provisions. Source: APRA general insurance statistics (loss ratio net of reinsurance)

==> picture [59 x 22] intentionally omitted <==

New Zealand - Home Loan Portfolio

1H14 Portfolio Statistics

Dynamic Loan to Valuation Ratio

1H14 Portfolio Statistics	1H14 Portfolio Statistics	1H14 Portfolio Statistics	1H14 Portfolio Statistics	1H14 Portfolio Statistics	1H14 Portfolio Statistics	1H14 Portfolio Statistics
Total Number of Home Loan Accounts				484k		Ho 0-60% 61-70% 71-80% 81-90% 90%+ Auckland Wellingto Christchu Rest of N Rest of S Other
Total Home Loan FUM (NZD)				$61b
% of Total New Zealand Lending				59%
% of Total Group Lending				11%
Owner Occupied Loans - % of Portfolio				76%
Average Loan Size at Origination (NZD)				$254k
Average LVR at Origination				63%
Average Dynamic LVR of Portfolio				46%
% of Portfolio Paying Interest Only1				21%
Individual Provision as % Gross Loans
	2H12	1H13	2H13		1H14
Group	0.43%	0.27%	0.24%		0.24%
New Zealand Home Loans	0.03%	0.02%	0.02%		0.02%

==> picture [118 x 113] intentionally omitted <==

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

8%
10%
47%
18%
17%
----- End of picture text -----

Home Loan Portfolio by Region

==> picture [232 x 110] intentionally omitted <==

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

Auckland
3%
Wellington 12%
39%
Christchurch
27%
Rest of North Island
Rest of South Island
7% 12%
Other
----- End of picture text -----

Excludes revolving credit facilities

==> picture [59 x 22] intentionally omitted <==

New Zealand – Credit Quality

New Zealand Geography Net Impaired Assets

==> picture [292 x 347] intentionally omitted <==

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

NZDm
Net Impaired Assets NIA as % GLA
1,685
1,307
1,169
991
1.74%
883
1.38%
662
1.23%
594
1.02%
0.89%
0.66%
0.57%
----- End of picture text -----

Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14

==> picture [315 x 183] intentionally omitted <==

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

New Zealand Geography
Total Provision Charge
NZDm
IP Charge CP Charge
200 105
85
103
150
99
100 44
22
50 -39
0
-50
-100
1H11 2H11 1H12 2H12 1H13 2H13 1H14
----- End of picture text -----

New Zealand Division 90+ days delinquencies

==> picture [300 x 159] intentionally omitted <==

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

2.0% 1
Mortgages Commercial Agri
1.6%
1.2%
0.8%
0.4%
0.0%
Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14
----- End of picture text -----

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

==> picture [59 x 22] intentionally omitted <==

1 May 2014

Divisional Performance

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

Australia Division 1H14 Profit & Loss Performance

Financial Highlights – 1H14

Cost to Income Ratio

$m 1H14 v 1H13 v 2H13	$m 1H14 v 1H13 v 2H13	$m 1H14 v 1H13 v 2H13	$m 1H14 v 1H13 v 2H13
Operating Income	4,017	4%	1%
Operating Expenses	(1,500)	2%	1%
Profit before Provisions	2,517	5%	1%
Provisions (charge)/release	(403)	4%	-7%
Net Profit after Tax	1,479	5%	2%
Net Interest Margin	2.48%	Down 5bps	Down 3bps
Cost to Income Ratio	37.3%	Down 78bps	Down 4bps

==> picture [236 x 136] intentionally omitted <==

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

39.8%
38.8%
38.1%
37.4% 37.3%
1H12 2H12 1H13 2H13 1H14
----- End of picture text -----

==> picture [23 x 223] intentionally omitted <==

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

AUSTRALIA DIVISION
----- End of picture text -----

==> picture [634 x 218] intentionally omitted <==

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

Net Profit after Tax
Movement 1H14 v 1H13
$m
64
14
138
34
34
25 1,479
17
36
1,409
Up 5%
1
1H13 Volume Margin Volume Margin One-off Expenses Provisions Tax 1H14
Retail Corporate & Commercial
Banking
Operating Income
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Represents a one-off IFRS accounting methodology change to Commercial bill fees

Australia Division 1H14 Balance Sheet Performance

Australia Division Balance Sheet

$b Mar 2014 v Sep 2013 v Mar 2013	$b Mar 2014 v Sep 2013 v Mar 2013	$b Mar 2014 v Sep 2013 v Mar 2013	$b Mar 2014 v Sep 2013 v Mar 2013
Customer Deposits	156.3	3%	7%
Retail Deposits	109.4	2%	7%
C&CB Deposits	46.9	3%	8%
Customer Lending	278.3	2%	6%
Home Loan Lending	201.6	3%	7%
Other Retail Lending	11.5	2%	5%
C&CB Lending	65.2	0%	3%

==> picture [325 x 157] intentionally omitted <==

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

Customer Deposits Customer Lending
Offset Balances Asset Finance
6%
Transaction 11% Business
Term
Lending 18%
15% 37%
Other
4%
Retail
Online 14%
Savings Home Loans
23%
72%
----- End of picture text -----

==> picture [23 x 223] intentionally omitted <==

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

AUSTRALIA DIVISION
----- End of picture text -----

Customer Lending Movement Mar 2014 v Mar 2013

Customer Deposits Movement Mar 2014 v Mar 2013

==> picture [624 x 163] intentionally omitted <==

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

$b $b
2.0 278.3 3.4 156.3
13.7 0.5
7.4
262.1
145.5
Up 6% Up 7%
Mar 13 Home Other C&CB Mar 14 Mar 13 Retail C&CB Mar 14
Loans Retail
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Retail – continuing to perform strongly

Strongest Home Loan growth of the majors[1] …

… supported by growth in Retail Deposits[1 ]

Household Lending Market Share Growth (%) Index Sep-12 = 100

Household Deposits Market Share Growth (%) Index Sep-12 = 100

==> picture [636 x 158] intentionally omitted <==

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

ANZ Peer 1 Peer 2 Peer 3 ANZ Peer 1 Peer 2 Peer 3
103 103 102.9
102 102.0 101.9 102 102.0
101 101.5
101
100 99.9
100 100.1
99
98 98.2 99
97 98
Sep 12 Mar 13 Sep 13 Feb 14 Sep 12 Mar 13 Sep 13 Feb 14
14.7% 14.8% 14.9% 15.0% 14.9% 15.1% 15.1% 15.2%
Market Share [1 ] Market Share [1 ]
----- End of picture text -----

Continuing to gain home loan market share despite elevated levels of pay down…

… while actively managing margins

==> picture [304 x 146] intentionally omitted <==

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

$b 13
51
202
188 45
5
Mar 13 New Redraw Repay. Ext. Mar 14
Fundings & /Other Refin
Interest -ance
----- End of picture text -----

==> picture [237 x 119] intentionally omitted <==

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

1.97% 1.97%
1.95%
1H13 2H13 1H14
----- End of picture text -----

==> picture [23 x 223] intentionally omitted <==

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

AUSTRALIA DIVISION
----- End of picture text -----

Source: APRA Monthly Banking Statistics. System adjusted for new ADI incorporations since September 2012 (base month)

==> picture [59 x 22] intentionally omitted <==

Retail – we are increasing staff capability and freeing u sales ca acit which is im rovin staff roductivit p p y p g p y

… leading to strong growth in frontline sales productivity…

Increased sales capability and capacity…

Australia Division Retail Revenue per FTE[1 ] $‟000/FTE

Branch sales staff accredited to sell home 69% loans

==> picture [275 x 135] intentionally omitted <==

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

8%
1H13 1H14
----- End of picture text -----

1,500+[Staff accredited to sell Wealth ] products across 600 branches

1,600+[Staff accredited to sell small business ] products

Smart ATMs supporting a 9% reduction 400+ in over the counter transactions 85 New look sales focused branches

… driving an uplift in Home Loan Sales via Proprietary Channel…

… and strong sales growth

==> picture [301 x 158] intentionally omitted <==

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

Home Loan Sales Proprietary Broker
$b
23 21 21 25 26
55% 51% 49% 48% 47%
45% 49% 51% 52% 53%
1H12 2H12 1H13 2H13 1H14
----- End of picture text -----

Consecutive quarters of above system home loan growth to March 2014

Small Business sales through the Branch network

 13%

Wealth cross-sell revenue

==> picture [23 x 223] intentionally omitted <==

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

AUSTRALIA DIVISION
----- End of picture text -----

Note: All figures PCP unless otherwise stated

==> picture [59 x 22] intentionally omitted <==

Represents average Retail FTE for the 6 months to March 2013 and March 2014

C&CB – increasing sales capability and capacity to drive out erformance p

Improved sales capability… Training hours completed with specific 35k focus on credit, sales & Super Regional[1 ] 32%[Relationship Frontline staff with hands-on ] experience in key Asian markets 1,200 iPads deployed to frontline bankers Digital C&CB A-Z Reviews conducted via 36k iPads[1 ]

… and investments in improving capacity …  20%[Increase in the amount of time frontline ] C&CB Banker‟s spend with customers[6 ] Processes moved from frontline to 47 Business Response Team (BRT) 24/7[Servicing availability via BRT with 56k ] service requests actioned[1 ]

==> picture [23 x 223] intentionally omitted <==

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

AUSTRALIA DIVISION
----- End of picture text -----

… are translating to improved performance

=#1	Main Financial Institution (MFI) Customer Satisfaction in Commercial Banking2 Can service my business needs in Australia, NZ & Asia3 C&CB customers with 26k net new customers4 Growth in leads sent to the frontline Growth in Cross Border Referrals from Australia to Asia5	63 65 Mar 13 Mar 14 3% Net Loans & Advances ($b) 44 47 Mar 13 Mar 14 8% Deposits ($b)
#1
6%
37%
120%

Six months to March 2014; 2. DBM Business Financial Services Monitor, ranked against other „Big 4‟ banks, Commercial banking includes majority of businesses with turnover <$100m, data sourced in the six months to March 2014; 3. DBM Business Financial Services Monitor, ranked against other „Big 4‟ banks, data sourced from majority of businesses with turnover of $1-40m in the three months to February 2014; 4. Net new customers (excluding Esanda) for the 12 months to February 2014; 5. Five months to February 2014 vs. PCP; 6. Estimated time being freed up in the frontline by removing activities and streamlining processes, compared to October 2012 baseline;

==> picture [59 x 22] intentionally omitted <==

And C&CB is seeing strong lending sales despite subdued demand for credit

==> picture [632 x 252] intentionally omitted <==

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

… however this is yet to Despite this we have
Business confidence has
translate into demand for increased our customer
improved recently…
business credit. numbers…
Business Confidence [1 ] System Lending Growth [2 ] & # Customers
Average System Undrawn Limits [3]
% $b 26k
125 System Lending Growth (LHS)
5 52
System Undrawn Limits (RHS)
120 4 50
48
3
115
46
2
44
110
1 42
105 0 40
Mar Sep Mar Sep Mar Sep Dec Mar Jun Sep Dec Feb 13 Feb 14
12 12 13 13 14 12 12 13 13 13 13
… achieved strong sales in a challenging
… and grown in our target segments
environment…
----- End of picture text -----

==> picture [23 x 223] intentionally omitted <==

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

AUSTRALIA DIVISION
----- End of picture text -----

==> picture [618 x 155] intentionally omitted <==

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

Net Loans and Advances Net Loans and Advances
$b $b
22.8 1.6 0.1 0.6 65.2
63.2 65.2 63.2
0.2 0.1
12.9
7.7
0.2
1H13 Sales Partial Full Insto 1H14 Mar 13 Small Bus. Reg. Corp. Esanda Mar 14
Pay- Pay- Up-Tier Bus. Banking Bus. Banking
downs downs Banking Banking
----- End of picture text -----

Roy Morgan Business Single Source, Business Confidence, average for the preceding 12 months
RBA Financial Aggregates, Total Business Credit, Seasonally Adjusted, September 2012 to February 2014
ABS Lending Finance, Australia, 5671.0, Commercial Finance Commitments not drawn at end of month, September 2012 to January 2014

==> picture [59 x 22] intentionally omitted <==

==> picture [23 x 223] intentionally omitted <==

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

AUSTRALIA DIVISION
----- End of picture text -----

C&CB – credit metrics continue to strengthen: diversified portfolio, increasing quality, reducing impaired assets

Diversified by customers…

… by industry sector…

Exposure at Default by industry sector (%) (as at Mar 14)

Net Lending Assets

==> picture [262 x 134] intentionally omitted <==

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

ANZ has the lowest
origination LVR on
34% 29% Commercial Real Estate
of all the major banks
Property & Construction
13%
11% Agriculture
13% Retail
Consumer Lending
Other
----- End of picture text -----

==> picture [270 x 126] intentionally omitted <==

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

Corporate Banking
18% 14%
Esanda
$65b 25% Regional Business Banking
25%
Business Banking
18%
Small Business Banking
----- End of picture text -----

… by risk grade…

… resulting in continued improvement in asset quality

EAD by Customer Credit Rating (CCR)

==> picture [276 x 153] intentionally omitted <==

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

Weaker
13% 13% 13% 7-10
78% 78% 78%
4-6
9% 9% 9% 0-3
Stronger
Mar 13 Mar-13 Sep 13 Sep-13 Mar 14 Mar-14
----- End of picture text -----

Net Impaired Assets and Gross Lending Assets

==> picture [311 x 141] intentionally omitted <==

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

$b Gross Lending Assets (RHS)
Net Impaired Assets as % GLA (LHS)
70 1.80%
65 1.30%
60 0.80%
55 0.30%
Mar 12 Sep 12 Mar 13 Sep 13 Mar 14
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Strategy to target less balance sheet intensive business deliverin im roved returns g p

Maintained return on capital despite margin headwinds

1H14 Highlights  15% Fees and Other Operating Income[1 ] Network income referred to  12% Australia from Asia  0.7%[Positive Operating Income / ] Expense „Jaws‟ – FX Adjusted Growth in Institutional and  12% Commercial customer numbers Improvement in Loss Rates since  24bps 2012

Return on RWA2 NIM Ex-Markets NIM incl-Markets

==> picture [276 x 309] intentionally omitted <==

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

3.35%
2.95%
2.81%
2.65%
2.49%
1.96%
1.70%
1.65%
1.58%
1.55%
1.49% 1.48%
1.44% 1.44%
1.36%
1H12 2H12 1H13 2H13 1H14
----- End of picture text -----

==> picture [23 x 223] intentionally omitted <==

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

IIB DIVISION
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Note: All figures PCP unless otherwise stated

Excludes Markets Trading and Balance Sheet.
Net Profit after Tax divided by average Basel 3 Risk Weighted Assets.

IIB Division 1H14 Profit & Loss Performance

Financial Highlights – 1H14

FX Adjusted FX Adjusted	FX Adjusted FX Adjusted	FX Adjusted FX Adjusted	FX Adjusted FX Adjusted	FX Adjusted FX Adjusted	FX Adjusted FX Adjusted
$m 1H14 v 1H13 v 2H13 *v 1H13* *v 2H13*
Operating Income	3,592	9%	8%	4%	7%
Operating Expenses	(1,598)	10%	4%	3%	3%
Profit before Provisions	1,994	9%	12%	4%	*11%*
Provisions (charge)/release	(161)	-13%	21%	-18%	22%
Net Profit after Tax	1,372	14%	10%	9%	9%
Net Interest Margin (ex markets)	2.49%	Down 32bps	Down 16bps	n/a	n/a
Cost to Income Ratio	44.5%	Up 20bps	Down 170bps	n/a	n/a

==> picture [23 x 223] intentionally omitted <==

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

IIB DIVISION
----- End of picture text -----

Net Profit after Tax Movement 1H14 v 1H13

==> picture [633 x 188] intentionally omitted <==

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

$m
Operating Income up 9%
50
194
23
1,372
61
1,208 (142) (22)
+4% +15% +9% +10% -13% +5%
Up +14%
1H13 NII ex Mkts OOI ex Mkts Mkts Trading Expenses Provisions Tax & other 1H14
Trading & Bal Sheet
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

IIB Division 1H14 Balance Sheet Performance

IIB Customer Deposits Movement Mar 2014 v Mar 2013

IIB Customer Lending Movement Mar 2014 v Mar 2013

==> picture [627 x 162] intentionally omitted <==

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

$b $b
17.2 0.2 0.4 172.0
151.8 2.4
4.0 136.3
4.5 11.1
114.5 2.2
+22% +27% flat +19% +38% +17% +16% +31%
1H13 Retail Payments Global Other 1H14 1H13 Retail Trade & Global Global 1H14
& Cash Markets Supply Loans Markets
Mgmt Chain & Other
----- End of picture text -----

IIB Customer Deposits Composition Mar 2014

IIB Customer Lending Composition Mar 2014

==> picture [23 x 223] intentionally omitted <==

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

IIB DIVISION
----- End of picture text -----

==> picture [611 x 147] intentionally omitted <==

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

1%
2%
6%
8% 11%
Retail
Transction Banking
23% Transaction Banking
Global Markets
46% Global Loans
Retail
Global Markets
44% Other
Other
59%
92% Term
Deposits
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Global Markets - delivering on growth agenda

Growth being driven by customer sales and higher return priority products

Global Markets Operating Income – CAGR 1H10 to 1H14

==> picture [564 x 117] intentionally omitted <==

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

22%
19%
16%
7%
6%
5%
Total Markets Trading & Balance Sales Foreign Exchange APEA Asia
Sheet
----- End of picture text -----

Continue to grow markets business through a focus on client driven income

Continued strong growth in Asia

Global Markets Asia Operating Income

==> picture [340 x 160] intentionally omitted <==

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

Global Markets Operating Income
$m
$m
1,905 [2,127 ]
1,867 1,689
1,243
1,119 1,008
58% OOI
42% NII
FY10 FY11 FY12 FY13 1H13 2H13 1H14
----- End of picture text -----

==> picture [266 x 140] intentionally omitted <==

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

482
351 387 363
302
247 235
FY10 FY11 FY12 FY13 1H13 2H13 1H14
----- End of picture text -----

==> picture [23 x 223] intentionally omitted <==

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

IIB DIVISION
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Global Markets a more diverse, lower risk business

==> picture [634 x 406] intentionally omitted <==

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

Improved risk profile through focus on
Greater spread of income by geography
client driven income
Global Markets Operating Income Mix by Geography $m Operating Income / Value at Risk [1 ]
Australia NZ Asia Other APEA
Global Markets Sales & Trading (Traded)
15% 20% 20% 19% Balance Sheet (Non-Traded)
21%
20% 23% 29% 250
4x operating income for
14%
12% 11% 12% every $ of Traded VaR
50% 48% 46% 198
40%
200
170 170
FY11 FY12 FY13 1H14
Increased contribution from 150
Increase in Traded
Foreign Exchange
Market VaR driven
Foreign Exchange Operating Income by increased
$m 874 100 91 market volatility
774
649
593
526
460 42
414 50
21
17 12 17 14
0
FY10 FY11 FY12 FY13 1H14
FY10 FY11 FY12 FY13 1H13 2H13 1H14
----- End of picture text -----

==> picture [23 x 223] intentionally omitted <==

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

IIB DIVISION
----- End of picture text -----

Average 1-day 99% VaR

==> picture [59 x 22] intentionally omitted <==

Transaction Banking – driving our regional expansion

Growing trade finance directly with Asian corporates

Transaction Banking Operating Income Movement 1H14 v 1H13

==> picture [629 x 163] intentionally omitted <==

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

Funded Trade Portfolio
$m 37 815
45
$b Asia Ex-Asia Financial Institutions
733
40 Other Corporates
30
19%
Up 11% 20
81%
10
1H13 Payments Trade 1H14 0
& Cash 1H13 2H13 1H14
Management
----- End of picture text -----

Increasing proportion of Transaction Banking income from Asia

Strong growth in volumes through ANZ Transactive cash management platform

ANZ Transactive Volumes

Operating Income Mix by Geography

==> picture [310 x 142] intentionally omitted <==

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

Total Value (LHS) Total Trans. Volume (RHS)
$b 39 m
1,000 34 37 40
800
25 30
600 21
16
20
400 678 736 778
586
496 10
200
337
0 0
2H11 1H12 2H12 1H13 2H13 1H14
----- End of picture text -----

Australia NZ Asia Other APEA

==> picture [295 x 121] intentionally omitted <==

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

8% 8% 8% 9%
19% 24% 26% 27%
9%
9% 10% 11%
64% 59% 56% 53%
FY11 FY12 FY13 1H14
----- End of picture text -----

==> picture [23 x 223] intentionally omitted <==

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

IIB DIVISION
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Productivity focus maintained whilst continuing to invest in tar eted rowth areas g g

Focusing investment towards faster growing markets

IIB Operating Expense Movement 1H14 v 1H13

% IIB Operating Expenses outside Australia / New Zealand

==> picture [624 x 356] intentionally omitted <==

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

Asia & Europe 60%
Frontline FTE 59%
and IIB Projects
57%
1,598
17
33 54%
52%
1,548
92
1H12 2H12 1H13 2H13 1H14
Reducing proportion of back-office
enablement roles
1,456 IIB Full Time Equivalent Employees
Enablement Retail Institutional / Commercial
FTE
14,500
13,722
15,000 13,196 13,040
+2% +1%
10,000
5,000
1H13 FX 1H13 Invest BAU 1H14
FX Adj. -ment 0
Sep 11 Sep 12 Sep 13 Mar 14
----- End of picture text -----

==> picture [23 x 223] intentionally omitted <==

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

IIB DIVISION
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

New Zealand Division 1H14 Profit & Loss Performance

==> picture [634 x 401] intentionally omitted <==

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

Financial Highlights – 1H14 NIM
NZDm 1H14 v 1H13 v 2H13 Average Interest Earning Assets NIM
Operating Income 1,357 3% -1% [1] 2.50% 2.49% 2.48%
Operating Expenses (563) -6% -1% 100,000
98,000
Profit before Provisions 794 10% 0% 94,095 96,000
Provisions (charge)/release 37 Large  Large  91,520 94,00092,000
89,611
Net Profit after Tax 598 21% 5% 90,000
88,000
Net Interest Margin 2.48% Down 2bps Down 1bps 86,000
84,000
Cost to Income Ratio 41.5% Down 370bps Down 37bps
1H13 2H13 1H14
Net Profit after Tax
Movement 1H14 v 1H13
1H13 includes NZ
NZDm
Simplification 73
costs of NZD19m
598
25
46 8 42
494 488
6
Up 21%
1H13 EFTPOS2 1H13 NII OOI Expenses Provisions Tax 1H14
ex-EFTPOS
----- End of picture text -----

2H13 includes gain on sale of EFTPOS New Zealand Limited ('EFTPOS') $17m and revenue forgone $7m 2. Post tax income and costs associated with EFTPOS in 1H13

==> picture [59 x 22] intentionally omitted <==

==> picture [23 x 223] intentionally omitted <==

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

NEW ZEALAND DIVISION
----- End of picture text -----

New Zealand Division 1H14 Balance Sheet Performance

New Zealand Division Balance Sheet

NZDb Mar 2014 Sep 2013 Mar 2013 v Sep 2013 v Mar 2013	NZDb Mar 2014 Sep 2013 Mar 2013 v Sep 2013 v Mar 2013	NZDb Mar 2014 Sep 2013 Mar 2013 v Sep 2013 v Mar 2013	NZDb Mar 2014 Sep 2013 Mar 2013 v Sep 2013 v Mar 2013	NZDb Mar 2014 Sep 2013 Mar 2013 v Sep 2013 v Mar 2013	NZDb Mar 2014 Sep 2013 Mar 2013 v Sep 2013 v Mar 2013
Customer Lending1	94.9	92.5	90.5	3%	5%
Retail	37.0	36.5	36.0	1%	3%
Small Business Banking (SBB)	21.9	20.5	19.3	7%	13%
Commercial & Agri (C&A)	36.1	35.5	35.2	2%	3%
Risk Weighted Assets	53.8	50.0	50.5	7%	7%
Customer Deposits	55.2	52.2	51.7	6%	7%
Retail	32.7	32.1	31.4	2%	4%
Small Business Banking	11.7	10.8	10.6	9%	10%
Commercial & Agri	10.8	9.4	9.6	15%	12%
Customer Deposits Movement Mar 2014 v Mar 2013 Customer Lending Movement Mar 2014 v Mar 20131

==> picture [625 x 170] intentionally omitted <==

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

Customer Lending Customer Deposits
Movement Mar 2014 v Mar 2013 [1] Movement Mar 2014 v Mar 2013
NZDb NZDb
0.9 94.9 1.2 55.2
2.6
1.1
1.3
1.0
51.7
90.5
Up 5% Up 7%
1H13 Retail SBB C&A 1H14 1H13 Retail SBB C&A 1H14
----- End of picture text -----

==> picture [23 x 223] intentionally omitted <==

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

NEW ZEALAND DIVISION
----- End of picture text -----

Gross Loans and Advances

==> picture [59 x 22] intentionally omitted <==

Retail – Using our distribution network to drive more sales

1H14 Performance: NPAT up 25% to NZD 222m

==> picture [440 x 377] intentionally omitted <==

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

 7% Branch coverage since Sep 11
31%
Time spent on sales by frontline 31%
 10% 29.9%
staff
30%
30%
 47% Increase in KiwiSaver sales 29%
29%
Mar 11 Sep 11
Strong momentum in Credit
 20bps bps
Card market share YTD [[1]]
 10% Life Insurance premiums [2 ]
Over the counter transactions in
 11%
branches [3 ]
 4% CTI down 4% PCP and 1% HOH
----- End of picture text -----

==> picture [641 x 207] intentionally omitted <==

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

Strong momentum in mortgage
 7% Branch coverage since Sep 11 FUM share [4 ]
31% 30.7%
Time spent on sales by frontline 31%
 10% 29.9%
staff
30%
30%
 47% Increase in KiwiSaver sales 29%
29%
Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Feb 14
Strong momentum in Credit
 20bps bps
Card market share YTD [[1]] Award-winning Products [5 ]
----- End of picture text -----

==> picture [111 x 160] intentionally omitted <==

==> picture [57 x 65] intentionally omitted <==

Note: All figures PCP unless otherwise stated; 1. RBNZ S5 – February 2014; 2. Life Insurance premiums sold via Branch; 3. Refers to eligible transactions migrated from all branches; 4. RBNZ C6 – February 2014; 5. Source: Canstar Credit Card rating report December 2013

==> picture [59 x 22] intentionally omitted <==

==> picture [23 x 223] intentionally omitted <==

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

NEW ZEALAND DIVISION
----- End of picture text -----

Retail – Grew mortgage share while remaining well within RBNZ caps

Now #1 in Auckland and Christchurch as well

Share of new mortgage sales in all major NZ cities[1 ]

Share of new mortgage Share of new mortgage sales in Auckland[4 ] sales in Christchurch[4 ]

 22bps

Mortgage market share YTD[2 ]

Leading peer bank

5% >80% LVR lending accounts for >80% LVR ~5% of ANZ NZ‟s new mortgage mortgages lending, well within the 10% cap[3] ANZ did not withdraw any pre- 0 approvals as a result of the withdrawals introduction of the RBNZ LVR caps

==> picture [319 x 308] intentionally omitted <==

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

31% 31%
29%
25%
22% ANZ 20% 20% ANZ 20%
#1 #1
ANZ ANZ
#2 =#1
Mar 10 Mar 14 Mar 10 Mar 14
Managed NIM well in the face of trend
towards fixed mortgages
ANZ % Fixed Rate Sales Mix
mortgages in portfolio
100% 27% Variable
75%
73% Fixed
50%
25%
Sep Sep Sep Sep Sep Sep Mar 1H14
08 09 10 11 12 13 14
----- End of picture text -----

Increased sales capability & capacity driving higher % of mortgage sales through branches

Home loan growth % of mortgage sales by channel

==> picture [284 x 144] intentionally omitted <==

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

NZDb
7% Branch Brokers
1.3x system MMM5
60
58
58 28% 21%
56 55 29%
29%
54
52 43% 50%
50
Mar 13 Feb 14 Mar 13 Mar 14
----- End of picture text -----

Note: All figures PCP unless otherwise stated; 1. Source: Terralink – February 2014; 2. RBNZ C6 – February 2014; 3. New RBNZ restrictions effective 1 October 2013 require banks‟ new >80% LVR mortgage lending to be capped at 10% of total new mortgage lending. Banks must be compliant by March 2014; 4. Source: Terralink – March 2014; 5. Mobile Mortgage Manager

==> picture [59 x 22] intentionally omitted <==

==> picture [23 x 223] intentionally omitted <==

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

NEW ZEALAND DIVISION
----- End of picture text -----

Commercial – Return to growth after period of remediation

1H14 Performance: NPAT up 14% to NZD 377m

==> picture [642 x 376] intentionally omitted <==

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

Commercial lending share [1] - Commercial lending growth above system [3 ]
 20bps growth in all regions YTD
Commercial lending Commercial deposits
Cross-sell revenue from NZDb 6% NZDb 11%
 10% Institutional products (e.g.
23
Trade, Markets FX) 58
54
 14% Reduction in high risk balances 20
since September 2013 [2 ]
Mar 13 Mar 14
Small Business Banking new Mar 13 Mar 14
 29%
customer acquisition Strong presence and recognition in Agri
market
Sponsor:
 16% Uplift in Commercial Lending in Best Agri Young Farmer
Auckland Bank Contest
Strategic Partner:
NZ National
Number of Commercial Agriculture Fieldays
 48% customers with an ANZ@Work
package for their staff Supporting:
Red Meat PGP
----- End of picture text -----

Note: All figures PCP unless otherwise stated; 1. RBNZ S7 NZD claims, excludes Agriculture, Finance, Non-residents and Households; 2. Customer Credit Rating CCR 7 - 10 Internal ANZ Rating, a measure of customer‟s probability of default. Measured from 0 (strongest) to 10 (weakest); 3. RBNZ S7 NZD claims, excludes Finance, Non-residents and Households - February 2014

==> picture [59 x 22] intentionally omitted <==

==> picture [23 x 223] intentionally omitted <==

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

NEW ZEALAND DIVISION
----- End of picture text -----

Global Wealth Division 1H14 Profit & Loss Performance

==> picture [634 x 188] intentionally omitted <==

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

Financial Highlights – 1H14 Embedded Value [2 ]
$m
$m 1H14 v 1H13 v 2H13 41 3,963
3
253
Operating Income 806 8% 3%
Operating Expenses (494) 7% 1%
3,765
198
Profit before Provisions 312 11% 7%
3,666
Provisions (charge)/release 1 Large  Large  Up 8%
Cash Profit 226 11% -16% [1 ]
Sep 13 VNB &3 Experience Risk Subtotal Net Mar 14
Cost to Income Ratio 61.3% Down 94bps Down 140bps Expected Deviations Discount Transfers
Return & FX
----- End of picture text -----

==> picture [23 x 223] intentionally omitted <==

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

GLOBAL WEALTH DIVISION
----- End of picture text -----

Cash Profit Movement 1H14 v 1H13

==> picture [624 x 167] intentionally omitted <==

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

$m
44 23
27 2
226
15
204 31
11
47
Up 11%
1H13 Funds Normalised Impact of Private Corporate Expenses Provisions Tax 1H14
Management Insurance Loss of Wealth and Other
Income Income Group Life Income Income 4
plan
----- End of picture text -----

Net Profit after Tax in 2H13 included a tax credit of $50m
Includes Insurance and Investments in Australia and New Zealand 3. VNB = Value of New Business
Corporate and Other include non-recurring insurance settlement

==> picture [59 x 22] intentionally omitted <==

100

Insurance

Increase in Retail and Direct Life  13% Inforce

Lower lapse rates driven by  120bps retention activity in Australia and New Zealand

Cash Profit impacted by exit of a  11% group insurance plan. Normalised Cash Profit grew 19%[1 ]

Retail and Direct Life Insurance Inforce

==> picture [292 x 159] intentionally omitted <==

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

$m Australia New Zealand
13%
1,132
1,067
1,006
175
147
137
869 920 957
1H13 2H13 1H14
----- End of picture text -----

==> picture [23 x 223] intentionally omitted <==

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

GLOBAL WEALTH DIVISION
----- End of picture text -----

==> picture [628 x 194] intentionally omitted <==

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

Lapse Rates Insurance Cash Profit Growth
Australia New Zealand $m
44
131
16.7%
15.7% 14.9% 110 13 10
14.1% 98
13.3%
12.1% 33
19%
1H13 Normalised Expenses Tax 1H14 Group 1H14
1H13 2H13 1H14 1H13 2H13 1H14 Income Normalised Life plan Reported
exit
----- End of picture text -----

==> picture [59 x 22] intentionally omitted <==

Note: All figures PCP unless otherwise stated 1. Normalised cash profit excludes the exit of a group life insurance plan

101

Funds Management

==> picture [639 x 245] intentionally omitted <==

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

Strong Netflows driven by an Funds Management Netflows
 $1.1b increase in ANZ Financial Planning
$m
productivity
$1.1b
686
Average FUM driven by investment
 14% market gains and improvement in
Netflows 34
 17% Cash Net Profit after Tax
(442)
1H13 2H13 1H14
Average Funds Under Management (FUM) Cash Profit
----- End of picture text -----

==> picture [292 x 155] intentionally omitted <==

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

$b Australia New Zealand
14%
56.5 60.6
53.2
12.2
10.3
9.1
44.1 46.2 48.4
1H13 2H13 1H14
----- End of picture text -----

==> picture [302 x 155] intentionally omitted <==

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

$m
17%
78
62
53
1H13 2H13 1H14
----- End of picture text -----

==> picture [23 x 223] intentionally omitted <==

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

GLOBAL WEALTH DIVISION
----- End of picture text -----

Note: All figures PCP unless otherwise stated

==> picture [59 x 22] intentionally omitted <==

102

Embedded Value – Insurance and Investments

==> picture [635 x 38] intentionally omitted <==

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

Embedded Value [1 ]
----- End of picture text -----

==> picture [599 x 301] intentionally omitted <==

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

$m
41 3,963
3
174
3,765
79
198
3,666
Up 8%
Sep 13 Value of Expected Experience Risk Subtotal Net Mar 14
New Business Return Deviations Discount Transfers
& FX
----- End of picture text -----

==> picture [23 x 223] intentionally omitted <==

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

GLOBAL WEALTH DIVISION
----- End of picture text -----

Strong business performance and improvements in experience have resulted in an increase in Embedded Value of 8% over the six months to March 2014 before capital returns and dividend payments.

==> picture [59 x 22] intentionally omitted <==

Includes Insurance and Investments in Australia and New Zealand

103

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

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

For further information visit

www.anz.com

or contact

Jill Craig Group General Manager Investor Relations

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

==> picture [59 x 22] intentionally omitted <==

AI assistant

Australia and New Zealand Banking Group Ltd. — Interim / Quarterly Report 2014

10425_rns_2014-04-30_301a89fa-a3ee-48b3-9606-42912903bcaf.pdf

Index

Half Year Result Overview

Delivering for shareholders and customers

DISCIPLINED AND EXPERIENCED MANAGEMENT

CEO PRIORITIES FY14-16

PROFITABLE ~~ASIAN~~ GROWTH

ENTERPRISE APPROACH

2. Consolidation of like teams

3. Straight Through Processing

4. Shift to online self-service

1H14 Financial Performance

Cash Profit Movement 1H14 v 1H13

Impact of FX movements

Key Currency Movements

Impact of FX movements

Growth 1H14 v 1H13 Adjusted for FX

St ~~rengthening Australia~~

St ~~rengthening New Zealand~~

Pr ~~ofitable in Asia~~

PROFITABLE ~~ASIAN~~ GROWTH

Revenue growth[1 ]

International & Institutional Banking (IIB) Asia Return on Equity

En ~~terprise Approach~~

ENTERPRISE APPROACH

Cr ~~edit Quality~~

Ca ~~pital~~

Movement in bps

ANZ offers a distinctive geographic footprint and business mix that rovides earnin s diversification p g

Corporate Profile

ANZ Operating Structure

Operating Divisions

Operating Income Mix by Division

Australia Division

Contribution by Geography

Operating Income

Operating Income 1H14

Customer loans and deposits by Geography

Customer Lending[1 ]

Customer Deposits

Total Credit Exposure (EAD) by Geography

Exposure at Default by Line of Business[2 ]

Customer loans and deposits by client segment

Customer Lending[1 ]

Customer Deposits

ANZ is executing a focused strategy to build the best connected most res ected bank across the Asia Pacific , p

Banking on Australia is transforming the business

Transforming our distribution channels

 43% ANZ FastPay[TM] transactions[3] Simplifying our products & processes

And driving growth in our core markets

Australia Division 1H14 NPAT up 5% to $1.48 billion

As well as improving productivity and returns across all areas of Australia Division

Continued cost discipline

Improving Branch productivity

Cost to Income Ratio

Enhancing sales productivity

Delivering Operations productivity

Winning in New Zealand with geographic CTI below 40% for the first time

NZ Division 1H14 NPAT up 21% to NZD 598 million

NZ Division ROE accretive to ANZ Group: up 235bps to 15.8%[1 ]

Efficiency

Market Share

Brand

New Zealand Division – Returns now accretive to Group

New Zealand Division - Using scale and technology to improve customer experience

Global Wealth delivering value to ANZ’s strategy

Growing the Wealth business through ANZ channels

Delivering on our strategic priorities

Focus on channels that drive higher returns

Leveraging a profitable franchise in Asia

International & Institutional Banking Asia

A Top 4 Corporate Bank in Asia

Delivering a lower risk balance sheet

The value of our networked International & Institutional business is drivin im roved returns g p

IIB Operating Income Growth

IIB Operating Income

Trade & Supply Chain supporting super regional strate and rofitable Asian rowth gy p g

TSC a key driver of non-interest income both directly and via cross-sell

Australia and New Zealand Banking Group Ltd. Interim / Quarterly Report 2014

PROFITABLE ASIAN GROWTH

St rengthening Australia

St rengthening New Zealand

Pr ofitable in Asia

PROFITABLE ASIAN GROWTH

En terprise Approach

Cr edit Quality

Ca pital