CLSA CONFERENCE 2015 Hong Kong

A U S T R A L I A A N D N E W Z E A L A N D B A N K I N G G R O U P L I M I T E D

Investor Discussion Pack September 2015

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Index

Group Overview	Group Overview
Financial Performance		10
Treasury		27
Strategy		38
Risk Management		59
Portfolio composition by EAD – Group, IIB, Asia, China		75
Home Loans		80
Economics		88

	Data within this discussion pack is current as at ANZ’s 1H15 results, disclosed 5 May 2015,
	unless otherwise stated

All figures within this investor discussion pack are presented on Cash basis in Australian Dollars unless otherwise noted. In arriving at Cash Profit, Statutory Profit has been adjusted to exclude non-core items, further information is set out on page 86 of the 2015 Half Year Consolidated Financial Report. Common growth rate abbreviations used in this presentation include PCP: Prior comparable period growth rate (for instance 1H15 vs 1H14, 2H14 vs 2H13); HoH: Half on Half growth rate (for instance 1H15 vs 2H14, 2H14 vs 1H14)

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2015

CLSA CONFERENCE Hong Kong

Group Overview

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SUPER REGIONAL STRATEGY
STRONG PROFITABLE
ENTERPRISE
CORE ASIAN
APPROACH
MARKETS GROWTH
STRONG LIQUIDITY AND CAPITAL MANAGEMENT
DISCIPLINED AND EXPERIENCED MANAGEMENT
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CEO PRIORITIES FY14-16
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Improving Diversifying Improving Improving customer revenue productivity returns experience

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

Corporate Profile – Latest Full Year position: 2014

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Founded in 1835, ANZ is a super regional bank that serves 10 million retail, commercial and institutional customers in 33 markets and employs 50,000 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)

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Top 4 Corporate A Top 4 Bank The Largest Bank in
Bank in Asia [1 ] in Australia [ 2] New Zealand
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APEA	Australia	Australia	New Zealand	New Zealand
Staff (FTE) 2	Staff (FTE)	21,591	Staff (FTE)	8,225
Customers ~	Customers	~6m	Customers	~2.1m
Cash NPAT $	Cash NPAT	$4.4B	Cash NPAT	$1.5B
RoRWA 1	RoRWA	2.16%	RoRWA	2.51%
Customer Deposits $	Customer Deposits	$228B	Customer Deposits	$68B
Customer Lending	Customer Lending	$349B	Customer Lending	$94B

Greenwich Associates 2013 Asian Large Corporate Banking Study
Peter Lee Associates Large Corporate and Institutional Relationship Banking surveys, Australia and New Zealand 2014

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Profit & Loss contribution by division

Operating Income by Division[1 ]

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$m
Australia New Zealand IIB Wealth
12,000
10,000
8,000
6,000
4,000
2,000
0
1H12 2H12 1H13 2H13 1H14 2H14 1H15
-2,000
Net Profit after Tax by Division [1 ]
$m
Australia New Zealand IIB Wealth
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
1H12 2H12 1H13 2H13 1H14 2H14 1H15
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1H15 - Operating Income by Division[1 ]

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Australia New Zealand IIB Wealth
8%
42%
37%
13%
1H15 - Net Profit after Tax by Division [1 ]
Australia New Zealand IIB Wealth
7%
46%
42%
16%
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Excluding GTSO / Group Centre

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Profit & Loss contribution by geography

Operating Income by Geography

1H15 - Operating Income by Geography

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$m Australia New Zealand APEA
12,000
10,000
8,000
6,000
4,000
2,000
0
1H12 2H12 1H13 2H13 1H14 2H14 1H15
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Net Profit after Tax by Geography

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$m
Australia New Zealand APEA
4,000
3,000
2,000
1,000
0
1H12 2H12 1H13 2H13 1H14 2H14 1H15
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Australia New Zealand APEA APEA Network
APEA Network
18% Revenue [1 ]
represents
income
generated in
25%
20% APEA plus
income
generated in
Australia & New
62% Zealand as a
result of referral
from ANZ’s APEA
network.
1H15 - Operating Income by income type
Net Interest Income Other Operating Income
100%
23% 26%
80%
55%
60%
40% 77% 74%
20% 45%
0%
Australia New Zealand APEA
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APEA Network Revenue represents income generated in Australia & New Zealand as a result of referral from ANZ’s APEA network. Note: APEA = Asia Pacific Europe & America

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Balance sheet

Group balance sheet composition

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Customer Lending [1] Customer Deposits [1]
16%
30%
18%
19%
65% 52%
Australia APEA New Zealand
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Group lending composition[2 ]

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$b
400
Mortgages
Other Retail
300
Corporate & Commercial
Institutional
200
100
0
Australia NZ APEA
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Institutional Balance sheet profile

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By total exposure (%) By tenor – 1H15 (%)
Default
Tenor >1Yr
Sub Inv Grade
Tenor <1Yr
Inv. Grade
20%
22%
22%
29%
64% 63%
77% 75% 79%
71%
36% 37%
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Asia Aus NZ

Mar 13 Mar 14 Mar 15

Customer lending represents Net Loans and Advances including acceptances.
Net Loans and Advances. Excludes Wealth & other (1% of total lending)

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Total Credit Exposure (EAD) by Geography

Exposure at Default[1] by Geography

Exposure at Default by Line of Business[2 ]

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Total Exposure at Default (Mar 15) - $869b [1 ]
Australia New Zealand APEA
$515.8b $149.5b $204.1b
UK & Europe New Zealand
4%
17%
Americas
4%
Pacific 1% Australia
APEA 59%
4%
Singapore 24%
3%
Hong Kong
6%
Other North
East Asia 2%
Other South
East Asia
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16%
29%
31%
22%
94%
53%
49%
6%
Australia New Zealand APEA
Retail Institutional Commercial
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EAD excludes amounts for ‘Securitisation’ and ‘Other Assets’ Basel asset classes.

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Institutional includes exposure to Bank and Sovereign counterparties and ANZ’s Liquidity portfolio.

2015

CLSA CONFERENCE Hong Kong

Financial Performance

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Summary of results

Revenue Expenses	1H15 – 1H14
	$m change
	10,185 5.3% (4,593) 7.2%
PBP Provisions	5,592 3.9% (510) (3.4%)
Cash Profit	3,676 4.6%
Stat. adjustments Statutory Profit	(170) 3,506 3.4% 133.6 3.8% 86 3.6% 14.7% (80)bp 12.4 - 8.7 40bp
Cash EPS (cents) DPS (cents) ROE CET1 (%) Internationally harmonised APRA basis

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Impact of FX translation


	1H15 Growth	FX impact	FX Adj Growth		1H15 Earnings Composition (by currency)
					1H15	1H13
Revenue	5.3%	2.1%	3.2%		$3,676m	$3,179m
Expenses	7.2%	2.8%	4.4%	USD CNY Other1	6% 5% 11%	4% 3% 10%
						18%
PBP	3.9%	1.7%	2.2%	NZD	22%
Provisions	(3.4)%	1.6%	(5.0)%
NPAT	4.6%	1.8%	2.8%	AUD	56%	65%
ROE	(80)bp	(30)bp	(50)bp

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major currencies in “other” category includes TWD, MYR, PGK and IND – no one currency greater than 2%

Operating environment and key actions

What we said at FY14 Actions – 1H15 Expanded coverage

Additional Aus. Division front office staff: ~600
• NSW expansion

Improved Customer Experience

Digital capacity & capability
• “GoMoney”, “Grow”, “Smart Choice” & “Transactive” enhancements
• “Tap and Pin” ATM: world first
• Rolled out “Transactive” China and Philippines
Single digital access to Cash, Trade and Markets in 4 Asian markets
Enhanced Productivity & Capital Efficiency
Hubs & Ops unit costs down ~10% average
Esanda Dealer Finance sale

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Composition of Group earnings

Revenue drivers

Net Interest Margin

Divisional Cash Profit (1H15–1H14)

Expense drivers

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Notes. TB: Transaction Banking, Retail: Retail Australia, Retail New Zealand, Retail Asia Pacific and Global Wealth, Comm: Corporate & commercial Banking Australia and Commercial NZ

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Net interest margin

Group

Divisional

Australia Division

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Group NIM First half trend
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NZ Division (NZD)

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2.53% 2.50% 2.50% 2.50% 2.49% 2.52%
2.25%
2.15%
2.04%
1H13 1H14 1H15 1H13 1H14 1H15 1H13 1H14 1H15
Net Interest Income contribution IIB Division Global Loans NIM Trends
3%
2.54%
2.45%
1.65% 2.35% 2.24%
1.55%
29% 1.34% 2% 1.99%
1.46% 1.53%
1.29% [1.18% 1.22% ]
53%
1%
18%
0
1H13 1H14 1H15 1H13 2H13 1H14 2H14 1H15
Aus Division NZ Division
Aus NIM Asia NIM
Instituional
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Net Interest Income contribution
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Lending composition and flows

Australia Division

NZ Division

Net Loans and Advances balance

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$b
12
10
11 68
66
63
188 202 218
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Mar 13

Mar 14 Mar 15

Net Loans and Advances balance[1 ]

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NZ$b
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16
16
16
16 17
15
56 60 63
Mar 13 Mar 14 Mar 15
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Home Loans Business Lending Other Consumer

Home Lending Business Lending Rural Lending

Net Loans and Advances flows

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$b
90 0.4
83 0.4
298
278
262 (70)
(67)
Mar 13 Mar 14 Mar 15
Cards Other Cards Other
Interest Loans and Interest Loans and
Redraws & Net Personal Redraws & Net Personal
New Fundings, Repay/ Refis / New Fundings, Repay/ Refis /
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Net Loans and Advances flows[2 ]

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NZ$b
9.1
8.6 13.7
12.5
(9.9) 100
(9.5) 95
91 (7.7)
(7.3)
Mar 13 New TopUp Exit Repay Mar 14 New TopUp Exit Repay Mar 15
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Excludes “other” Mar 13 $3.0b, Mar 14 $3.2b, Mar 15 $3.3b
Includes capitalised brokerage/mortgage origination fees, unearned income and customer liabilities for acceptances.

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Cost to income

Australia Division

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38.1%
37.0% 36.7%
1H13 1H14 1H15
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IIB
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46.8%
44.9%
44.2%
1H13 1H14 1H15
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NZ Division (NZD)

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45.2%
41.3%
40.1%
1H13 1H14 1H15
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Global Wealth[1]

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62.4%
60.4%
57.5%
1H13 1H14 1H15
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Excluding the impact of the Trustees sale

Return on Risk Weighted Assets

Australia Division

NZ Division (NZD)

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$b 116
109
106
2.88% 2.75% 2.84%
1H13 1H14 1H15
RWA RoRWA
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NZ$b
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54 55
51
2.38%
2.22%
1.98%
1H13 1H14 1H15
RWA RoRWA
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IIB

IIB Asia (ex partnerships)

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$b
206
190
166
1.54% 1.47% 1.46%
1H13 1H14 1H15
RWA RoRWA
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US$b
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62 63
58
1.63%
1.50%
1.23%
0.81%
0.76%
0.46%
1H13 1H14 1H15
RWA RoRWA RoRWA ex partnerships
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RORWA first half annualised position. RoRWA equals Net Profit After Tax divided by average Basel III risk weighted assets.

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Portfolio credit quality remains sound

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Collective provision balance by source Total Provision Charge
$m $m
1,000
800
599 598 528
461
600 510
54 3 2,914
- 400
102 5 200
(7) 0
-200
1H13 2H13 1H14 2H14 1H15
2,757
CP charge IP charge
•
Predominantly Australia
Gross Impaired Assets
Division - consumer cards &
mortgages $m
5,000 4,685 4,264
4,000 3,620
3,000 2,889 2,708
2,000
1.9% ex FX
1,000
0
Sep 14 Fx Risk Mgt Credit Mix Mar 15 Mar 13 Sep 13 Mar 14 Sep 14 Mar 15
overlay Growth
< $10m $10-$100m > $100m
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Australia – consistent growth & return, plus accelerated investment

Retail lending growth

Commercial lending growth

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2.01%
1.95% 1.97% 1.97% 1.97%
$b 220 229
212
206
199
Mar 13 Sep 13 Mar 14 Sep 14 Mar 15
NLAs NIM (%)
Improving productivity
% $’000
450
38.1 400
37.4
37.0
36.6 36.7 350
300
250
1H13 2H13 1H14 2H14 1H15
CTI (%) Revenue per FTE (RHS)
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87% 87% 87% 88% 88%
68
68
$b 67
66
63
Mar 13 Sep 13 Mar 14 Sep 14 Mar 15
1
NLAs EAD by CCR (6 or stronger)
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Strong operating performance

1H15 profit growth (PCP)

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6.5%
6.0%
5.2%
Revenue Expenses PBP
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CCR = Customer Credit Rating

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Australia - Retail a highlight

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Customers FUM Retail products per customer
Home Loans FUM 1 retail product
120
Indexed % of total customers
115
110
105
43.4%
100
41.6%
Total Retail customer numbers
95
Mar-13 Mar-15 Mar 13 Mar 15
106 Indexed
Cards and Payments FUM 2-3 retail products
104
110 Indexed % of total customers
102 105
49.0%
100 100 47.6%
95
98
Mar-13 Mar-15 Mar 13 Mar 15
Mar 13 Mar 15
Retail Deposits FUM 4+ retail products
115
Indexed % of total customers
110
105
9.4%
100
9.0%
95
Mar-13 Mar-15 Mar 13 Mar 15
FUM FUM/Customer
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New Zealand Division – scale benefit driving growth

Retail lending growth

Commercial lending growth

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NZ$b
2.72%
2.61% 2.62% 2.65%
2.52%
36.9 37.1 37.4
36.4
35.8
Mar 13 Sep 13 Mar 14 Sep 14 Mar 15
NLAs NIM
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Improved productivity

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NZ$b
88% 91% 92% 93% 96%
62.1
59.4
57.3
53.6 55.2
Mar 13 Sep 13 Mar 14 Sep 14 Mar 15
NLAs EAD by CCR (6 or stronger)1
Operating performance
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% NZ$k
45.2
300
41.9 280
41.3
40.6 40.1 260
240
220
200
1H13 2H13 1H14 2H14 1H15
CTI Revenue per FTE (RHS)
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1H15 PCP growth (NZ$)

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7.8%
5.6%
2.5%
Revenue Expenses PBP
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CCR = Customer Credit Rating

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Global Wealth – focused on quality & growth

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Wealth customers [1 ] Retail Life lapse rates FUM net flows [2 ]
m Australia $m
11%
883
686
2.1
13.3%
1.9
12.1%
11.6%
1.6
(442)
Sep-13 Mar 14 Mar 15 1H13 1H14 1H15 1H13 1H14 1H15
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Improved productivity[3 ]

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% CTI
62.4
60.4
57.5
1H13 1H14 1H15
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Operating performance [3 ]
1H15 PCP growth 14.6%
6.9%
1.9%
Revenue Expenses PBP
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ANZ Wealth customers directed through ANZ channels
Global Private Wealth and Funds Management netflows 3. Excluding the impact of the Trustees sale

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Digital investment – delivering results

Australia

ANZ Smart Choice

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Sales numbers Transaction numbers
via Digital [1] (%) via Digital [2 ] (%)
14.4% 73.9%
70.4%
9.5%
1H14 1H15 1H14 1H15
New Zealand
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Transaction numbers
Sales revenue via Digital 14.0% via Digital [2] (%)
[[3]] (%)
12.0% 65.0%
10.0%
7.6%
8.0% 6.6% 59.1%
6.0%
4.0%
2.0%
0.0%
1H14 1H15 1H14 1H15
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Sales revenue via Digital 14.0% [[3]] (%)

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Online 1486
rollover
innovation
released
775 3,404
1,619
435
Mar 13 Mar 14 Mar 15
FUM ($m) Ave Weekly Rollovers
Transactive Mobile
A$b k
60 7,000
50 6,000
5,000
40
4,000
30
$55 3,000
20
$37 2,000
10 $20 1,000
$0
0 0
FY12 FY13 FY14 FY15x4
Value Volume (RHS)
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Sales includes the number of sales events through the Retail distribution network, including all Retail, Commercial and Wealth products. 2. Transactions refers to the number of value transactions through all channels including internet, mobile, teller and ATM. 3. Revenue from sales completed through Digital channels.

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Determined by annualised calculation of available data as at Feb 15.

IIB revenue – re-balancing

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4.5% 3,786
A$m
3,622
Customer Acq.
Loan margins & penetration
FVA Asia Growth
Commodity prices Cash volumes
Interest Rates Trade volumes
Regulatory changes Market Sales
FX
1H14 Macro Headwinds Diversification & growth 1H15
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Markets income by type

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A$m
Sales Trading ex Balance Sheet Valuation
800
687 Balance Sheet Adjustments for
700 632
Derivatives
556
600
500
400 321 329
288 276 273
300 245
200
100 32
- -14 -48
-100
1H13 1H14 1H15 1H13 1H14 1H15 1H13 1H14 1H15 1H13 1H14 1H15
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IIB – improving the mix

IIB 1H15 profit by region

IIB 1H15 Revenue Growth

A$m, % growth PCP

A$ % growth PCP

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(4)% 20% 167% (33)%
688
596
95 80
Aus / NZ Asia EMEA Pacific
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24%
14%
10%
1%
-2%
-4%
P’ships Retail Cash Markets Trade Loans
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IIB Asia Productivity

IIB Asia Profitable growth

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US$k
US$m
300 1.63%
1.51%
61% 1.23%
55% 54% 0.77% 0.81%
0.46%
489
200 451
324
100
1H13 1H14 1H15
1H13 1H14 1H15
CTI Rev/FTE (RHS) NPAT RoRWA IIB 1 RoRWA IIB ex Pship 1
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‘RoRWA’ equals Net Profit After Tax divided by average Basel III risk weighted assets.

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2015

CLSA CONFERENCE Hong Kong

Treasury

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ANZ’s CET1 ratio compares favourably to global peers adjusting for regional methodology differences

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Canada UK Singapore Europe
+270bps +60bps +70bps +30bps
12.4% 12.5% 11.5% 12.1% 11.4% 11.9% 11.6%
10.9%
9.8%
8.7%
2
1 2 2
2
UK Peer Average
ANZ basis) Average basis) basis) Average
ANZ (APRA) ANZ (Canada Canada Peer Average ANZ (Europe Europe Peer
Comparable)
(Internationally ANZ (UK basis) ANZ (Singapore Singapore Peer
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Methodology per Australian Bankers’ Association: International comparability of capital ratios of Australia’s major banks (August 2014).
Peer estimates are based on RWA weighted average of G-SIB/D-SIBs (ex Singapore which is based on DBS and OCBC) fully loaded Basel III capital ratios per most recent disclosures.

Regulatory capital

Capital Update

Total RWA movement - Mar 15 v Sep 14

1H15 organic capital generation[1] of 59 bps modestly above recent first half performance. APRA Common Equity Tier 1 ratio 8.7%. Target range for CET1 ratio remains around 9% on an APRA basis.
Internationally Comparable[2] CET1 ratio is ~3.7% higher than under APRA basis. Reflects variances between Basel III under APRA and Basel standards.
1.5% discount for 1H15 Dividend Reinvestment Plan aims to achieve ~20% participation on a full 12 month basis. This level of participation is consistent with average observed since 2012 and capital planning.

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$b
15.4 386.9
1.5
16.1 (0.7)
361.5 (6.9)
Credit RWA
+$30.8bn
Sep 14 Growth FX Impact Other 6 Market & Op Risk Mar 15
IRRBB RWA
RWA
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APRA CET1 movement - Mar 15 v Sep 14

Pro-forma Mar 15 CET1 ratio (post equity raising, mortgage RW floor impact)

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% 1.02 % ~13
0.83
9.00
8.79 (0.22) (0.21) 8.72 8.72
(0.55)
(0.64) (0.02)
Sep 14 Cash RWA Capital Net Other Mar 15 APRA Mar 15 Equity raising Add'l mortgage APRA Mar 15 Internationally
NPAT 3 Usage 4 Deductions5 Dividend (placement + RWA 7 pro-forma Comparable 2
SPP) 1H15 pro forma
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Equal to cash profit - RWA growth - capital deductions. 2. Methodology per Australian Bankers’ Association: International comparability of capital ratios of Australia’s major banks (Aug 2014). 3. Cash profit net of preference share dividends. 4. Includes EL vs. EP shortfall. 5. Represents the movement in retained earnings in deconsolidated entities, capitalised software and other intangibles. 6. Other includes risk and portfolio

data review impact. 7. Assumes 25% Australian mortgage IRB risk weight at 1H15. APRA risk weight change does not come into effect until 1 July 2016

Internationally Comparable regulatory capital position

		CET1	Tier 1	Total Capital
APRA		8.7%	10.6%	12.6%
10% / 15% allowance for equity investments and DTA	APRA requires 100% deduction from CET1 vs. Basel framework which allows concessional threshold prior to deduction	0.9%	0.9%	0.8%
Mortgage 20% LGD floor	APRA requires use of 20% mortgage LGD floor vs. 10% under Basel framework	0.4%	0.4%	0.5%
IRRBB RWA (APRA Pillar 1 approach)	APRA includes in Pillar 1 RWA. This is not required under the Basel framework	0.2%	0.2%	0.3%
Specialised Lending (Advanced treatment)	APRA requires supervisory slotting approach which results in more conservative risk weights than under Basel framework	0.4%	0.4%	0.5%
Corporate undrawn EAD and unsecured LGD adjustments	Australian ADI unsecured corporate lending LGDs and undrawn CCFs exceed those applied in many jurisdictions	1.5%	1.8%	2.0%
Other	Includes impact of deductions from CET1 for capitalised expenses and deferred fee income required by APRA	0.3%	0.4%	0.4%
Internationally Comparable1		12.4%	14.7%	17.1%

Internationally Comparable methodology per Australian Bankers’ Association: International comparability of capital ratios of Australia’s major banks (August 2014).

Common Equity Tier 1 ratio, dividend timing and re ulator ca ital eneration g y p g

APRA Basel III CET1 Ratio

Common Equity Tier 1 generation (bps)

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9.0%
8.5%
8.0%
7.5%
7.0%
Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15
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Note: shaded quarters represent declaration of dividends. Basel III basis.

Under Basel III, dividends are only deducted from regulatory capital in the quarter in which they are declared. This results in volatility in quarterly reported capital ratios.
To assess the underlying regulatory capital position, dividend payments should be adjusted to accrue evenly over the year, aligned with profit generation.

First half average 1H12 – 1H14 1H15	First half average 1H12 – 1H14 1H15	First half average 1H12 – 1H14 1H15
Cash profit RWA growth Capital deductions	102 (29) (18)	102 (22) (21)
Net capital generation	55	59
Gross dividend Dividend Reinvestment Plan	(70) 14	(72) 8
Core change in CET1 capital ratio (1) (5)
Other non-core and non- recurring items 11 (2)
Net change in CET1 capital ratio 10 (7)

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Stable balance sheet composition – March 2015

$738bn $738bn

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Other ST Liabilities 4% Structural funding
Short Liquids 17% ST Funding 8% position has
remained stable with
Term 29% 30%
Term Funding growth in short-term
∆+3% <12M 4% ∆+3%
funding invested in
Other Short Term
Other Customer liquids and other
Assets & Trade 12%
Deposits 14% short-term assets
Customer Deposits
+$34bn or +8% vs.
Stable Customer Sep 14
Deposits 1
50%
71% 70%
Lending 69%
∆ -3% ∆-3%
Term Funding
Long >12M 12%
Term
Fixed Assets & SHE & Hybrids
Other 2% 8%
Assets Funding
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Note: ∆ represents the change in % of funded balance sheet from 30 September 2014 to 31 March 2015. 1. Stable customer deposits represent operational type deposits or those sources from retail / business / corporate customers and the stable component of Other funding liabilities.

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Term wholesale funding portfolio

Term Funding Profile

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Issuance [1 ] $bn Maturities
Annual
26 indicative
24 24 24 23 issuance
21 volume
16 16
12
11 10 10
7
FY10 FY11 FY12 FY13 FY14 1H15 2H15 FY16 FY17 FY18 FY19 FY20 FY21+
Senior Unsecured Covered Bonds Tier 2
Portfolio by Type Portfolio by Currency
1%
9% 6% 8% 9%
Domestic
8%
9% 18% 20% Government 6% (AUD,NZD)
13% 18% Guaranteed
North America
Tier 2 34%
24% (USD, CAD)
Covered UK & Europe
69% 68% 74% 71% Bonds (€,£,CHF)
Senior
Asia (JPY, HKD,
Unsecured
SGD, CNY)
35%
Other
Sep 12 Sep 13 Sep 14 Mar 15
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All figures based on historical FX and excludes hybrids.

Includes transactions with a call or maturity date greater than 12 months as at 30 September in the respective year of issuance.

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Liquidity successfully transitioned to LCR

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September 2014 March 2015
$b $b
17 LCR 119%
Surplus $28b
LCR 111%
17 Surplus $15b
49 24
19
49
3
3
121
116
104
81
Liquid Assets 1 Net Cash Outflows 3 Liquid Assets1, 2 Net Cash Outflows 3
HQLA 1 Internal RMBS Customer deposits and other [4 ]
HQLA 2 Other Alternative Liquid Assets Wholesale funding
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Post haircut market value as defined in APS210.
1H15 includes $54bn Committed Liquidity Facility.
Basel III LCR 30 day stress scenario cash outflows.
Other include off-balance sheet and cash inflows.

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Foreign currency hedging

1H15 Earnings Composition

(by currency)

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AUD
56%
Other
IDR 22%
NZD
22%
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The key objective of hedging is to manage short term EPS volatility arising from foreign currency earnings
Hedges currently in place:
FY15: ~80% of remaining earnings.
FY16: ~70% of NZD and ~ 25% of USD (inc. currencies that are highly correlated to AUD/USD) earnings.
Hedging has reduced the impact of a 5% movement of the AUD on FY15 EPS to less than 1%.

Net FX Impact (EPS)

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1.7%
1.6%
1H15 v 1H14 1H15 v 2H14
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Translation Rates (inclusive of hedges)

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1.35 1.05
1.30 1.00
1.25 0.95
1.20 0.90
1.15 0.85
1.10 0.80
1.05 0.75
1H13 2H13 1H14 2H14 1H15
NZD Translation (LHS) USD Translation (RHS)
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FX sensitivity (excluding the impact of revenue hedges)

Metric	Approx. annualised impact of 5% fall in AUD1	Comments
Income statement
Revenue	2%	Impact of translation of non-AUD revenue
Operating expenses	2%	Impact of translation of non-AUD expenses
Cash profit	2%	Net result of revenue and expense FX effects, excluding the impact of foreign currency hedges.
Net interest margin	(1 bp)	Mix impact due to a higher relative contribution from lower risk and lower margin APEA assets
Cost to income ratio	+2 bps	FX effect on revenue and expenses largely offset each other, however average cost to income ratios in non-AUD denominated businesses are marginally higher
Balance sheet
Collective provision coverage	(0.5 bp)	• CP overlays booked in AUD vs. a proportion of CRWA denominated in foreign currencies • Further impact from higher CRWA on FX derivatives with no corresponding CP as derivatives are marked-to-market and attract CVA
Funding	+$4 bn	Collateral flows under cross currency swaps used to hedge existing offshore funding liabilities
Return on equity	+3 bps	• Driven by positive FX effect on cash profit (see above) partially offset by increase in FCTR • Minimal impact on CET1 ratio

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Impact from a lower AUD relative to foreign currencies. Analysis based on 1H15 results (excluding the impact of foreign currency revenue hedges).

Regulatory landscape


Capital	Leverage ratio	• APRA draft standard Sep 2014 • No minimum currently specified, BCBS 3% Leverage ratio 4.5-5.5% at 1H15 depending on final calibration
	Level 3 capital adequacy “Conglomerates”	• APRA draft Level 3 standards Aug 2014 • Finalisation and implementation deferred until Financial System Inquiry recommendations considered by government/APRA No material impact expected based on current draft standards
	Basel Standardised and floors	• BCBS consultation papers released Dec 2014 propose changes to Standardised risk weights, introduction of Advanced approach capital floors ANZ has participated in BCBS QIS. Impact of any changes subject to final BCBS calibration and APRA implementation.
	Total Loss Absorbing Capacity (TLAC)	• Financial Stability Board proposal released Nov 2014 details minimum TLAC requirements for G-SIBs Proposal currently does not apply to D-SIBs. If applied to ANZ, wide range of outcomes depending on calibration including basis for measuring capital base, D-SIB minimum etc
Funding	Liquidity Coverage Ratio	• Full implementation from Jan 2015 • Disclosure timetable to be determined by APRA Full compliance at 1H15 (LCR 119%)
	Net Stable Funding Ratio	• BCBS standard Jan 2014 • APRA standard yet to be finalised, expected implementation 2018 Do not expect NSFR to require any material change to balance sheet composition
Other	Financial System Inquiry	• Key recommendations to government: • Set standards such that Australian ADI capital ratios are unquestionably strong • Raise Advanced IRB mortgage risk weights to narrow difference with Standardised approach • Implement loss absorption and recapitalisation framework in-line with international practice • Introduce Basel framework leverage ratio • Final round consultation closed 31 March 2015 Refer to ANZ’s submission on the Final Report of the Financial System Inquiry published 1 April 2015

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2015

CLSA CONFERENCE Hong Kong

Strategy

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Australia Division - Delivering a leading customer ex erience p

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STRONG
CORE
MARKETS
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ANZ Group Strategy

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Built on common infra-
Strengthen our Connecting customers
STRONG PROFITABLE structure & enterprise
position in our core to faster growing ENTERPRISE
markets of Australia CORE regional capital, ASIAN focus for greater APPROACH
MARKETS GROWTH responsiveness,
& New Zealand trade & wealth flows
efficiency and control
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Banking on Australia is transforming our Retail and Corporate & Commercial businesses based on a deep understanding of customer needs

Customer Needs

Developing a deep understanding of customer needs in our target segments

Customer Value Proposition Building a compelling customer value proposition that is aligned to their needs

Transformation

Investing through our Banking on Australia program to meet changing customer needs

Financial Outcomes

Growing market share, managing margins and costs and maintaining asset quality

Australia Division’s contribution

Deliver customers an easy, connected and insightful experience that puts the customer in control
Achieve consistent above system growth focused in priority segments
Maintain strong margins, cost discipline and risk profile
Leverage our Super Regional advantage to bring the whole of ANZ to customers
Take an enterprise wide approach and leverage global assets

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Australia Division - innovative solutions, aligned to chan in customer needs g g

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STRONG
CORE
MARKETS
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Delivering innovative solutions

… leading to increasing digital usage

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World first to roll out ‘Tap and Pin’ contactless ATMs
813 Smart ATMs deployed
Rolled out WiFi into branches, enabling goMoney app activation at account opening
Market leading multi-factor authentication
Innovative home loan solution for mobile lenders (Your Home Loan 360)
Digital tools and calculators
Interactive Insights for frontline bankers in Corporate Banking
Digital A-Z reviews across Retail and C&CB

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Percent Sales [1]
via Digital
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Percent Transactions[2 ] via Digital

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14.4% 73.9%
12.9%
72.4%
9.5% 70.4%
1H14 2H14 1H15 1H14 2H14 1H15
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… while reducing customer complaints

Average Monthly Complaints

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-19%
-9% -17%
FY12 FY13 FY14 1H15
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Sales includes the number of sales events through the Retail distribution network, including all Retail, Commercial and Wealth products. 2. Transactions refers to the number of value transactions through all channels including internet, mobile, teller and ATM.

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STRONG CORE MARKETS

Australia Division - Highlights

Balanced margin management[1 ]

Investing for growth

Percent mix of Retail Sales and Service FTE

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2.53%
2.50% 2.50%
1H13 1H14 1H15
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60%
55%
50%
45%
40%
Mar 13 Mar 14 Mar 15
Sales FTE Service FTE
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Improving Cost to Income

Credit quality

Cost to Income

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38.1%
37.0%
36.7%
1H13 1H14 1H15
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Net Impaired Assets / Net Loans & Advances

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0.39%
0.26%
0.22%
1H13 1H14 1H15
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NIM %: Half year period average.

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Australia Division - Business units

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STRONG
CORE
MARKETS
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Retail

Corporate & Commercial

Retail Products per customer

Balance sheet

% of total customers

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9.0% 9.3% 9.4%
47.6% 48.6% 49.0%
43.4% 42.1% 41.6%
Mar 13 Mar 14 Mar 15
4+ 2-3 1
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APRA Traditional Banking Market Share[1 ] Index Sep 12 = 100

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103
102
101
100
99
98
97
Sep 12 Mar 13 Sep 13 Mar 14 Sep 14 Mar 15
ANZ Peer 1 Peer 2 Peer 3
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68.4
63.2 65.7
49.7
46.8
43.5
1H13 1H14 1H15
1
Lending ($b) Deposits ($b)
Small Business Banking Emerging Corporate [2 ]
15% 20%
1H14 1H15 1H14 1H15
Lending Lending
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Inclusive of Deposits, Home Loans and Cards, Source: APRA. 2. A subset of Business Bank, lending greater than 10m and turnover greater than 40m.

STRONG CORE MARKETS

Global Wealth

Global Wealth strategic objectives

Growing solutions through ANZ channels

Wealth Solutions Held

Deepen relationships with existing ANZ customers

Simplify the business with self-directed solutions

Drive value from existing businesses

Simplifying with self-directed solutions

Exceeding $3 billion in FUM[1]
ANZ Smart • Received 5 stars by CANSTAR in every Choice superannuation category
Super

• Over a 300% increase in customer rollovers since the introduction of the paperless rollover service (70% self directed)

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Over 150,000 downloads with an activation rate of 66%
Deepening relationship with the Bank

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m CAGR
+9.4%
3.3 3.4
2.9 Non-ANZ
0.9 (2.1%)
1.0 channels
1.0
ANZ channels +15.0%
2.3 2.5
1.9
Mar 13 Mar 14 Mar 15
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Digital delivering growth

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Online 1486
ANZ Smart
rollover
Choice
innovation
released
775 3,404
1,619
435
Mar 13 Mar 14 Mar 15
FUM ($m) Ave Weekly Rollovers
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As at 31 March 15

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STRONG CORE MARKETS

Global Wealth - Insurance business

Stable mix of Life Insurance In-force

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$m 1,445 1,468 1,636
30% 23% 24%
12% 12%
10%
60% 65% 64%
Mar 13 Mar 14 Mar 15
Group - Australia
Individual - New Zealand
Individual - Australia
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Continued improvement in Australian Retail Life Insurance Lapse Rates

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-50bp
13.3%
12.1%
11.6%
1H13 1H14 1H15
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Consistent product mix in Individual Life Insurance

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$m
1,006 1,132 1,246
27% 28% 28%
73% 72% 72%
Mar 13 Mar 14 Mar 15
Lump Sum Income Protection
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Significant contribution to Embedded Value growth over 1H15

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$m 144 4,394 4,218
95
174
3,883 98 (176)
13%
Sep 14 Value of New Bus. Expected Return Experience Deviations Risk Disc. & FX Subtotal Net Transfers Mar 15
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STRONG
CORE
MARKETS
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New Zealand Division - Creating New Zealand’s best bank

ANZ Group Strategy

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

Built on common infra-
Strengthen our STRONG Connecting customers PROFITABLE structure & enterprise
position in our core CORE to faster growing ASIAN focus for greater ENTERPRISE
markets of Australia regional capital, APPROACH
& New Zealand MARKETS trade & wealth flows GROWTH responsiveness, efficiency and control
ANZ New Zealand’s Strategy
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Attract, develop and
retain world class
service and sales
teams
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----- Start of picture text -----

Develop our digital
and payments
capability
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----- Start of picture text -----

Improve the use of
bank wide data for
better customer
interactions
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----- Start of picture text -----

Improve the way our
channels work
together so it’s
easier for customers
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Continue to simplify
our products and
processes
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NZ’s Best Bank

Create Scale

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How?
 One team
 One set of systems
 One product set
 One brand
 One branch network
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2010-2013

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How?
• Best service recognition
• Best brand consideration
• Integrated channels
• Leveraging Group capabilities
• Data driven customer
insights
• Automation of work flow
• Optimised channel
investment
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Leverage Scale

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How?
 Global hubs
 Branch optimisation
 Improve brand recognition
• World class sales and
service teams
• Upgrade core systems
• Digital and Payments
infrastructure
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2013-2016

2017+

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NZ’s Best Bank

Our Vision:

‘Helping Kiwis achieve more’

Our Goal:

1 Service
1 Market Share
Growing
• Visible in the community

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STRONG CORE MARKETS

New Zealand Division - Highlights

Cost to Income Return on Assets

Revenue and FTE[1 ] Staff Engagement

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NZ$m
48% 1.29% $4,200 $3,700 $3,762
$3,700
$3,227
$3,200
$2,700
0.71% 9,298
39% $2,200
7,782
$1,700
$1,200
$700
$ 200
FY10 FY14 FY10 FY14 FY10 FY14
Revenue FTE
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48% 1.29% $4,200 $3,700 $3,762 20,000 18,000 78%
$3,227 16,000
$3,200
14,000
$2,700 12,000
39% 0.71% $2,200 9,298 10,000 64%
7,782
$1,700 8,000
6,000
$1,200
4,000
$700
2,000
$ 200 -
FY10 FY14 FY10 FY14 FY10 FY14 FY10 FY14
Revenue FTE
Branch Coverage [2 ] Consideration [3 ] Impaired Assets [4 ] NLA Composition
NZ$m NZ$b
315 90%
120
85% 44%
85%
36% 1,463 100
233
80%
80
75% 27%
75%
60
70% 483 40
65% 20
60% -
FY10 FY14 FY10 FY10 FY14 FY10 FY14 FY10 FY14
NBNZ ANZ
Branches Coverage R&BB Agri Instit. & Comm. Wealth
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NZ Geography FTE excluding NZ-based FTE who work for ANZ’s Australian businesses. 2. The percentage of market value across the country serviced by a retail branch (serviced means residing within the same ‘commercial area unit’ defined by Statistics NZ). 3. Colmar Brunton, IPSOS Brand Tracking and McCulley Research Limited (first choice or seriously considered). 4. Net impaired assets. Note: NZ Geography, FY10 on pro-forma performance (assumes 100% ownership of ING for the full year).

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New Zealand Division – Business Units

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STRONG
CORE
MARKETS
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Retail

Commercial & Agri

Market share[1 ]

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

45%
40% Mar 13 Mar 14 Mar 15
35%
30%
25%
20%
15%
10%
5%
0%
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Home loans Household Credit cards deposits

Products per customer % of Retail customers

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14.2% 15.6% 18.4%
46.7% 47.3% 46.7%
39.1% 37.1% 34.9%
Mar 13 Mar 14 Mar 15
4+ 2-3 1
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Market share[1 ]

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45%
Mar 13 Mar 14 Mar 15
40%
35%
30%
25%
20%
15%
10%
5%
0%
Commercial Agri Commercial Agri
deposits deposits lending lending
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Credit quality EAD distribution by Credit Rating groups

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Agri Risk Commercial
Rating
Stronger 35% 38% 38%
65% 68% 67%
58% 58% 58%
25% 26% 28%
10% 6% 5% Weaker 7% 4% 4%
Mar 13 Mar 14 Mar 15 Mar 13 Mar 14 Mar 15
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All values in New Zealand Dollars.

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Source: RBNZ - Mar 2015, relates to NZ Geography.

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PROFITABLE STRONG
ASIAN CORE
GROWTH MARKETS
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International & Institutional Banking (IIB) – deliverin rowth & tar etin hi her ROE g g g g g

ANZ Group Strategy

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

Strengthen our Connecting customers
STRONG PROFITABLE
position in our core to faster growing
markets of Australia CORE regional capital, ASIAN
MARKETS GROWTH
& New Zealand trade & wealth flows
IIB strategic priorities
Connecting More
Delivering Leading Intensifying
Customers by
Products through Balance Sheet
Providing
Insights Discipline
Seamless Value
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ENTERPRISE
APPROACH
Scaling &
Optimising
Infrastructure
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IIB’s contribution (1H15)

Corridor Management strategy gaining traction, with revenues up ~30% pcp along the 3 main Australia-Asia trade corridors - China, Hong Kong and Singapore
1 for overall and lead bank penetration in Australia[1] & New Zealand. Widened the gap with # 2 in NZ[2]
4 corporate bank in Asia and narrowed the gap to # 3[3 ]
1 in AU & NZ Bonds[4] & # 1 in AU & NZ Syndicated Loans[5]
Best Trade Finance Bank – AU & NZ[5] & Best Bank for Cash Mgt Asia Pacific[6]
Best Foreign Exchange Provider, Asia Pacific[7 ]
Electronic channel utilisation for payments increased from 39% to 45%

Peter Lee Associates: 2014 Large Corporate and Institutional Relationship Banking survey, Australia. 2. Peter Lee Associates: 2015 Large Corporate and Institutional Relationship Banking survey, New Zealand (widening based on lead bank relationships). 3. Greenwich Associates 2014 Asian Large Corporate Banking Study. 4. Dealogic by lead bank apportioned deal value, Jan 2015. 5. Thomson Reuters, Global Syndicated Loans Review FY 2014. 6. Trade & Supply Chain Finance Awards, Global Finance, 2015. 7. Best Foreign Exchange Provider Awards, Global Finance, 2015.

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PROFITABLE STRONG
ASIAN CORE
GROWTH MARKETS
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IIB - Revenue and profit composition

APEA now represents over half of the division’s NPAT

Revenue is geographically diverse

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

$m
1,459
1,368
36%
532
41% 565
156 11%
11% 150
53%
771
48% 653
1H14 1H15
APEA NZ Aus
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----- Start of picture text -----

$m
3,786
3,622
37%
41% 1,467 1,412
313 8%
8% 291
51% 1,864 2,061 55%
1H14 1H15
APEA NZ Aus
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Growing higher ROE businesses[1 ]

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

$m 2,966 2,992
361 356 12%
12%
877 845 28%
30%
500 549 18%
17%
33% Higher 31%
ROE
1,228 1,242 42%
41%
1H14 1H15
Markets Cash Global Loans Trade
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APEA OOI growth is strong

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

$m 1,759
1,629
183 11%
129
8%
445 25%
474
29%
63% 1,026 1,131 64%
1H14 1H15
APEA Aus NZ
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Excludes Retail and partnerships.

IIB - The corridor strategy

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

PROFITABLE STRONG
ASIAN CORE
GROWTH MARKETS
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Major trade corridors are forecast to grow significantly

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

USDb Source: ANZ Economics
300 forecasts
250
200
150
100
50
0
1990 1995 2000 2005 2010 2015 2020 2025 2030
Total Australia-China goods trade
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Trade revenue has a multiplier effect

Corridor strategy is delivering strong growth

Revenue Growth (1H15 PCP)

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

59%
48%
30%
22%
Aus/ Aus/ China/ Aus/
China Singapore HK HK
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Increasingly winning multi country mandates[2 ]

1H15: $1 of Trade income = $1.40 of Cross-Sell[1 ]

2.40 1.40 1.00 Trade Revenue Markets & Cash Combined income from Cross Revenue Sell

Number of multi country customer mandates won

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

170
147
134
1H14 2H14 1H15
----- End of picture text -----

Cross-sell multiple based on a pool of customers that have a minimum of Trade, Markets and Cash Management with ANZ.
Payments and Cash Management mandates, based on Transactive Asia Strategic transactions for client with 2 or more countries.

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IIB - Trade & Cash Management

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

PROFITABLE STRONG
ASIAN CORE
GROWTH MARKETS
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PCM Revenue is at record levels

Deposit growth is strong

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

$m 549
500
420
67%
68%
70%
14%
14%
13%
17% 18% 19%
1H13 1H14 1H15
APEA NZ Aus
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Trade revenues have remained broadly flat

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

$b 93
81
64
Mar 13 Mar 14 Mar 15
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Trade revenues broadly flat despite a significant decline in commodity prices

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

$m
361 356
322 7% > 180 days
37% 36%
31% 90-180 days
41%
6% 6%
5%
36% 31-90 days
57% 58%
54%
26% 0-30 days
1H13 1H14 1H15 1H15
APEA NZ Aus
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----- Start of picture text -----

Oil Price ANZ Trade Book
movement
43%
13%
44%
1H15
Resources DI
Agriculture
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----- Start of picture text -----

PROFITABLE STRONG
ASIAN CORE
GROWTH MARKETS
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IIB - Global Markets by income type & product

Majority of Global Markets revenue is customer facing

Delivering growth across a diverse product range

Income by region ($m) Income by product[1] ($m)

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

1,242
1,108 14% 6% 17% 6% 9% 12% 3%
13% 17% 12%
37%
46% 23% 29%
49% 48% 47%
41%
1H13 1H15 1H13 1H15
FX Commodities
APEA Aus NZ
Rates Others
Capital Markets pital Markets ital Markets
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----- Start of picture text -----

$m 13% 6% 17% 9% 12%
1,228 1,242 46% 37% 23% 29%
1,108
1,100
22% 22% 49% 48% 47%
41%
996
22%
25%
15% 1H13 1H15 1H13 1H15
FX Commodities
APEA Aus NZ
22%
26% Rates Others
Capital Markets pital Markets ital Markets
27% 26%
23%
Risk position remains conservative
>75%
$
customer 300
facing
56% 200
52%
51% 59% 52%
100
0
1H13 2H13 1H14 2H14 1H15
1H13 2H13 1H14 2H14 1H15
Balance Sheet Trading ex BS Sales Sales/Trading Balance Sheet
per $ VaR per $ VaR
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Excludes Balance Sheet.

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

PROFITABLE STRONG
ASIAN CORE
GROWTH MARKETS
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IIB - Global Markets by geography

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

Asia Global Markets revenues - significant
Revenue diversity by region
growth potential, given low market share
1,400
First half 2015
FX Market
Europe & Americas share 1.18% 1 33% 2
Pacific
1,200 $m
Asia 12%
New Zealand
4%
Australia
1,000
300
7%
7%
33%
800
17%
200
600 15%
14%
400
100
55%
37%
200
0 0
1H10 1H15
North Asia SEA NZ
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Euromoney, 2014.
Peter Lee Associates 2014 Foreign Exchange survey, New Zealand.

IIB - Asia

IIB Asia NPAT has grown 8% PCP…

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PROFITABLE STRONG
ASIAN CORE
GROWTH MARKETS
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… with revenue growth in higher ROE businesses[2] …

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

USDm
1.63%
1.51%
1.23% 489
451
324
1H13 1H14 1H15
NPAT RoRWA [1] IIB
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----- Start of picture text -----

USD m
24% 143 148 126 18%
25% 149 177 178 25%
8% 52 59 64 9%
Higher
ROE
43% 257 330 334 48%
1H13 1H14 1H15
Markets Cash Global Loans Trade
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… and increasingly from OOI …

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

USDm
1.5
1.0
55% 56%
54%
0.5
46% 45% 44%
0
1H13 1H14 1H15
OOI NII
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… with improving productivity

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

USDk
300
200
61%
55% 54%
100
0
1H13 1H14 1H15
CTI Rev/FTE (RHS) OOI/FTE (RHS)
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‘RoRWA’ equals Net Profit After Tax divided by average Basel III risk weighted assets.
Excludes Retail and Partnerships.

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ENTERPRISE APPROACH

Enterprise Approach – to operations and technology

An enterprise approach to operations and technology

Delivers a stronger and more efficient bank

Benefiting our customers, employees and shareholders

1H15 vs 1H14

Building Common Technology Platforms

across all main business lines to drive standardisation, simplification and automation.

Improving customer experience:

Easier on-boarding and faster approvals
Quality service
Consistency across channels

Driving operational productivity:

Absorb significant volume growth

 40bps

 10%

Operations cost to income

Operations productivity

Sustainable cost reduction

Utilising our Regional Delivery Network

to improve customer experience and drive down cost to serve.

Simplified processes

Reducing operating risk:

Consistent, standard processes
Reduced error rates
Upgraded infrastructure and security systems

Customer  28% complaints (Australian Ops)

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Enterprise Approach – Regional delivery network APPROACH and common latforms p

ENTERPRISE APPROACH

Regional delivery network

Providing full service regional coverage across our operating time zones
Developing centres of excellence across the network around key business domains: • Payments • Voice

Chengdu Developing centres of excellence across the Hong Kong network around key business domains: Bangalore Manila • Payments • Voice • Markets • FIO, AML and Singapore Suva • Trade Sanctions • • Wealth Operations Secured Lending Sydney Auckland • • Technology Unsecured Lending • Melbourne Wholesale Lending Wellington Global Wholesale Digital 17 Global Payments 10 (Transactive) countries (Global PayPlus) countries Common Global Retail Digital 7 Global FX 13 platforms (goMoney, Grow) countries (Wallstreet) countries Global Process Management 15 Global Customer Registry 25 (PEGA, FileNet) countries (IBM MDM) countries

• Wealth Operations Secured Lending

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ENTERPRISE APPROACH

Enterprise approach - consistent, higher quality ex erience p

Operations volume growth

Operations efficiency

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1H14-1H15 [1 ] 9% 9%
7% 7%
6%
Australia IIB NZ Wealth Total
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Operations productivity improvement[2 ]

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

Index:
145
FY10=100 136
122
100 102 105
FY10 FY11 FY12 FY13 FY14 1H15
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Operations costs growth

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

1H14-1H15 [1 ] 2%
-2%
-3%
-4%
-5%
Australia IIB NZ Wealth Total
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Quality and service

Customer satisfaction by channel[3 ]

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

91.4% 90.2% 88.9% 88.7%
80.8%
Website 4 Smart 5 Branch Personal Financial
device Banker Adviser
----- End of picture text -----

Volume growth represents YTD Mar 2015 vs YTD Mar 2014. 2 Operations efficiency measured by operations productivity improvement, which is the difference in operations costs and volume growth. 45% productivity improvement over 4 ½ years. 3. Roy Morgan Research. Satisfaction with channel, experience amongst MFI customers who have used service in the last 4 weeks. Base: ANZ Main Financial Institution (MFI) Customers, age 14+, rolling 12 months to March 2015. 4. Internet Banking using institution’s website. 5. Internet Banking using an app on mobile phone or tablet.

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ENTERPRISE APPROACH

Annual investment program

28% 26% 15% 19% 12% FY14 Wholesale Digital Consumer Digital Data and Analytics Wholesale Lending Retail Lending Payments Markets Process Automation Workflow Risk Management Infrastructure Security Annual investment spend ANZ invests approximately AUD1,200m1 per year on technology-based capabilities. Disciplined management is allowing us to fund an increasing proportion of this annual investment from the productivity gains in our wider delivery cost base.	Capability Benefits	Capability Benefits
	Risk	•Minimised operating risks •Maintain the confidence of our customers and regulators
	Stability	•Upgraded infrastructure •Enhanced resilience •Reduced cost-to-serve
	Productivity	•Simplify and integrate end-to-end workflow •Increase systems and process standardisation •Re-engineer and automate high-priority enterprise domains
	Product Lines	•Coordinated approach to end-to-end wholesale lending •Global capabilities for consumer lending •Modern, resilient payments network •Supporting markets growth with scalable platforms
	Digitisation	•Consistent customer experience across channels •Supporting our segment-based businesses •Enterprise-wide data management

ANZ invests approximately AUD1,200m[1] per year on technology-based capabilities. Disciplined management is allowing us to fund an increasing proportion of this annual investment from the productivity gains in our wider delivery cost base.

Excludes technology run costs.

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2015

CLSA CONFERENCE Hong Kong

Risk Management

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Provision Charge

Provision charge

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

$m
700 599 598 510
528
461
500
300 0.27% 0.24% 0.24%
0.21%
0.17%
100
-100
1H13 2H13 1H14 2H14 1H15
Individual Provision (IP) Charge
Collective Provision (CP) Charge
IP Charge as % Avg. Net Advances (RHS)
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Individual provision charge by segment

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

$m
700
595 572 602
600 542
500 455
400
300
200
100
0
1H13 2H13 1H14 2H14 1H15
Institutional Commercial Consumer
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Individual provision charge composition

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

$m
1,500
1,250 595 572 602
1,000 542 455
750
500
250
0
-250
-500
1H13 2H13 1H14 2H14 1H15
New Increased Writebacks & Recoveries
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Individual provision charge by region

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

700
595 602
572
600 542
500 455
400
300
200
100
0
1H13 2H13 1H14 2H14 1H15
Australia New Zealand APEA
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Historical Loss

Group regulatory expected loss

Historical observed loss rates

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

bps
EAD
75
69
61 62
54
Mar 11 Mar 12 Mar 13 Mar 14 Mar 15
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----- Start of picture text -----

bps IP Loss Rate (LHS) %
250 120
1990-2014 median bp loss rates
(LHS)
100
200 Corporate Gearing lagged 15
months (RHS)
80
150
60
100
40
50
20
0 0
Sep 90 Sep 94 Sep 98 Sep 02 Sep 06 Sep 10 Sep 14
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Corporate gearing remains low

Corporate gearing ratios[1] were compared with the Group IP loss rates from 1990. Lagging corporate gearing 15 months provides a reasonably strong relationship, with corporate gearing a leading indicator of loss
Current IP loss rate (annualised) as at Mar’15 was 17bps which is similar to that observed between 2005 and 2007
The annualised 1H15 IP loss rate (17 bps) is the 6th lowest rate over the time period analysed since 1990

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Debt to equity ratios for listed Australian Corporations sourced from the RBA.

Impaired Assets

Control list

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

Index Sep 09 = 100
120
100
80
60
40
20
Sep 09 Sep 10 Sep 11 Sep 12 Sep 13 Sep 14
Control List by Limits Control List by No of Groups
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Gross impaired assets by size of exposure

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

$m
5,000 4,685
4,264
4,000 3,620
2,889
3,000 2,708
2,000
1,000
0
Mar 13 Sep 13 Mar 14 Sep 14 Mar 15
< $10m $10-$100m > $100m
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New impaired assets by division

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

$m
2,000
1,716
1,571 1,541
1,500 1,327
1,197
1,000
500
0
1H13 2H13 1H14 2H14 1H15
Australia New Zealand IIB Other
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Impaired assets concentration by number of customers[1 ]

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

3% 3% 3% 3% 5%
5% 8%
9%
11% 8% 11%
16%
83% 88% 84% 84%
76%
Mar 13 Sep 13 Mar 14 Sep 14 Mar 15
$10-50m $51-100m $101-200m >$200m
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Only >$10m customers.

Collective Provision

CP Balance Growth

CP coverage

The collective provision balance increased by $157m in the first half of FY15, to $2,914m, predominantly driven by:

Foreign exchange, particularly the depreciation of the AUD against the USD and against the NZD, which accounted for $102m, or 65%, of this increase
Portfolio growth of $54m, specifically the Australia Division (67%), driven by the retail portfolios

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

$b
340
305 309
288
275
1.01% 1.00%
0.93% 0.89% 0.86%
Mar 13 Sep 13 Mar 14 Sep 14 Mar 15
Credit Risk Weighted Assets
Collective Provision as a % of CRWA (RHS)
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Collective provision by division

Collective provision by source

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

$m $m
102 2,914 102 2,914
61 54 3
2,757 (2) (3) (1 ) 2,757 5 (7 )
Sep 14 AUS IIB NZ Wealth & FX Mar 15 Sep 14 Risk Lending Portfolio Mgmt. Fx Mar 15
Other Movement Growth Mix Overlay movement
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Risk Weighted Assets

Total risk weighted assets

==> picture [234 x 52] intentionally omitted <==

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

$b
Op-Risk Risk Weighted Assets
Market & IRRBB Risk Weighted Assets
Credit Risk Weighted Assets
----- End of picture text -----

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

387
361 362
33
339
32 32 14
29
24 21
23
340
305 309
288
Sep 13 Mar 14 Sep 14 Mar 15
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Group EAD & CRWAs

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

$b 891
813
779
741
692
39.8% 38.9% 39.2% 38.0% 38.1%
Mar 13 Sep 13 Mar 14 Sep 14 Mar 15
Exposure at Default CRWA / EAD (RHS)
CRWA movement - Mar 15 v Sep 14
$b
15.4 339.7
1.7
16.1
308.9
(2.4)
Sep 14 Risk Lending Portfolio FX Impact Mar 15
Growth Data Review
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Portfolio composition

Category	% of Group EAD	% of Group EAD	% of Portfolio in Non Performing	% of Portfolio in Non Performing	Portfolio Balance in Non Performing
	Mar 14	Mar 15	Mar 14	Mar 15	Mar 15
Consumer Lending	40.3%	38.2%	0.2% 0.2% $608m
Finance, Investment & Insurance	16.4%	18.7%	0.1% 0.1% $93m
Property Services	7.0%	6.8%	1.7% 1.3% $757m
Manufacturing	6.1%	6.5%	0.6% 0.5% $297m
Agriculture, Forestry, Fishing	4.2%	3.9%	3.5% 2.1% $728m
Government & Official Institutions	3.8%	4.4%	0.0% 0.0% $0m
Wholesale trade	3.9%	4.0%	0.6% 0.4% $154m
Retail Trade	2.7%	2.6%	0.6% 0.4% $101m
Transport & Storage	2.4%	2.2%	3.0% 1.3% $257m
Business Services	1.9%	1.8%	1.3% 0.9% $151m
Resources (Mining)	2.3%	2.2%	0.7% 0.5% $97m
Electricity, Gas & Water Supply	1.7%	1.6%	0.1% 0.1% $10m
Construction	1.6%	1.6%	1.9% 1.7% $240m
Other	5.7%	5.5%	0.6% 0.5% $220m

EAD excludes amounts for ‘Securitisation’ and ‘Other Assets’ Basel asset classes.

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Resources Portfolio

Resources exposure by sector (% EAD)

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

Total EAD (Mar 15) As a % of Group EAD
$19.5b 2.2%
42%
Oil & Gas
39%
23%
Metal Ore Mining
23%
(includes 14%
Coal MiningIron Ore 10%)
16%
15%
Services To Mining
16%
6%
Other Mining
6%
1H15 1H14
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Resources exposure credit quality by geography (EAD)

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

AUS ($b) NZ ($b) ASIA ($b) [EA & Other ]
($b)
9.8 0.9 4.3 4.5
9%
24% 22%
49%
91%
76% 78%
51%
AUS NZ ASIA OTHER
Investment Grade Sub-Investment Grade
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Resources portfolio management

Portfolio is skewed towards well capitalised and lower cost resource producers. Over a third of the book is less than one year duration.
Investment grade exposures represent 67% of portfolio. Mix of investment grade exposures in portfolio has increased across all geographies in 1H15.
Trade accounts for 21% of the Total Resources EAD.
Mining services customers are subject to heightened oversight given the cautious outlook for services sector.

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Commercial property portfolio

Commercial Property outstandings by Commercial Property outstandings by region[1 ] sector[1 ]

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

$b
8.0%
26%
Offices
35.5
34.4 33.9 Retail
32.0 4.6 7.5%
30.6 4.5 4.1 30% Residential
4.1 22% Industrial
4.0
7.8 7.0% Tourism
6.1 6.9 6.9
5.4 4% Other
3% 15%
6.5%
Property peer comparison [2 ]
6.0%
$m ANZ Peer 1 Peer 2 Peer 3
23.0 22.9 23.1
21.2 21.8
Property Portfolio EAD 51,039 68,739 72,935 57,994
5.5%
Property EAD Growth
7.9% (1.6%) 13.9% 7.0%
Rates
5.0% Property EAD/Total EAD 5.73% 7.57% 8.50% 6.42%
Mar 13 Sep 13 Mar 14 Sep 14 Dec 14 Impaired Assets 424 1,497 726 318
APEA New Zealand
Property Impaired
0.83% 2.18% 1.00% 0.55%
Australia % of Group GLA's (RHS) Assets/Property EAD
----- End of picture text -----

Property peer comparison2	Property peer comparison2	Property peer comparison2	Property peer comparison2	Property peer comparison2
$m	ANZ	Peer 1	Peer 2	Peer 3
Property Portfolio EAD	51,039	68,739	72,935	57,994
Property EAD Growth Rates	7.9%	(1.6%)	13.9%	7.0%
Property EAD/Total EAD	5.73%	7.57%	8.50%	6.42%
Impaired Assets	424	1,497	726	318
Property Impaired Assets/Property EAD	0.83%	2.18%	1.00%	0.55%

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As per ARF230 disclosure.
As per APS330 disclosure. ANZ includes property services, not consistent across peers.

Agri portfolio

Agriculture exposure by sector (% EAD)

==> picture [299 x 210] intentionally omitted <==

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

Total EAD (Mar 15) As a % of Group EAD
$34.0b 3.9%
Dairy
14%
Beef
10%
Sheep & Other Livestock
40%
Grain/Wheat 16%
Horticulture/Fruit/Other
11%
Crops 9%
Forestry &
Fishing/Agriculture Services
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New Zealand Agri credit quality

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

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

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

21
19
18 17 18 18
2.11%
1.55%
1.23% 1
0.94% 0.96%
0.81%
Sep 10 Sep 11 Sep 12 Sep 13 Sep 14 Mar 15
NZD Total Credit Exposure
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1 Average PD (Non-Defaulted Customers) (RHS)

Group Agriculture EAD splits

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

7% [5% ]
1%
2%
38% 17%
61% 71%
98%
Australia New Zealand <60% Secured 60 - < 80% Secured
Int Markets Productive Impaired 80 - < 100% Secured Fully Secured
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PD model changes account for 11bps increase in 1H15.

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Industry Themes and Guidelines for Quality

Areas on Watch ANZ Lending Principles Examples
1. Commercial Property 1.1 Focus on key markets in Australia, New Zealand, Singapore and Hong Kong
Land and buildings primarily leased to third parties or new buildings constructed to be leased 1.2 No appetite for speculative development or sold to third parties. 1.3 Limited appetite to lend against third party leased specialised buildings
2. Residential Property 2.1 Triggers and controls guide growth in investment, interest only and high LVR-band
Residential Land and/or buildings lending
Variable or fixed rate
Owner occupied, investor, equity loan
2.2 Very limited appetite for Self Managed Super Fund lending
Interest only or Principal & Interest
2.3 No appetite for reverse home loans or subprime loans

3. Resources Sector

Industry sectors include:

3.1 Relationships focused on low cost producers
3.2 We are focused on intermediating trade and FX flows
Metal Ore (Including Iron Ore)
Mining and Mining Services
Mining infrastructure
3.3 Mining infrastructure cost sustainability monitored
Oil and Gas
Coal
3.4 Preference for equipment leasing over unsecured lending

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Australia Home Loans portfolio

1H15 portfolio statistics[1 ]

Dynamic loan to value ratio[5 ]

Total Number of Home Loan Accounts 934k Total Home Loans FUM $218b % of Total Australia Geography Lending 60% % of Total Group Lending 39% Owner Occupied Loans - % of Portfolio[2] 60% Average Loan Size at Origination $376k (1H15 average)[3,4] Average LVR at Origination (1H15)[3,4,5] 71% Average Dynamic LVR of Portfolio[4,5,6] 51% % of Portfolio Ahead on Repayments[7,8] 43% % of Portfolio Paying Interest Only[8] 35%

% of Portfolio 50% Sep 12 45% Mar 13 40% Sep 13 35% Mar 14 30% Sep 14 Mar 15 25% 20% LVR >90% 15% 4.08% (Mar 15)[9] 10% 5% 0% 0-60% 61-75% 76-80% 81-90% 91-95% 95%+

Individual provision as % of average NLA

Individual provision as % of average NLA	Individual provision as % of average NLA	Individual provision as % of average NLA	Individual provision as % of average NLA	Individual provision as % of average NLA
	FY12	FY13	FY14	1H15
Group	0.38%	0.25%	0.22%	0.17%
Australia Home Loans	0.02%	0.02%	0.01%	0.01%

Home Loans (inclusive of NPLs, exclusive of offset balances). 2. Excludes Equity Manager. 3. Originated 1H15. 4. Unweighted.
Including capitalised premiums. 6. Valuations updated Mar 2015 where available. 7. % of customers >30 days ahead of repayments.

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Excludes revolving credit. 9. Excluding capitalised premiums, the % of portfolio with LVR >90% as at Sep 2014 is 2.35% (Mar 2015 was 2.6%)

New Zealand - market characteristics

GDP contribution by industry[1 ]

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Transport and
Comms
8%
Wholesale & Retail
12% Finance &
Business
27%
Construction
6% Government
4%
Utilities
3% Services and
other
Manufacturing 22%
11%
Primary sector
7%
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Primary sector GDP contribution[1 ]

Banking market[2 ]

88% of NZ banking sector Net Loans & Advances ($341b) are with the big 4 banks

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Other
banks
12%
ANZ
31%
Peer 3
19%
Peer 2 Peer 1
19% 19%
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Positive migration impact on population

Population forecast: 5m by 2030, aided by migration Persons, 12 month total (k)

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Agriculture industry [3] Persons, 12 month total (k)
Output analysis:
Mining • Dairy ~ 30% 140
• PLT Arrivals
23% Cattle & Sheep ~20%
• Agri Services ~ 15% 100
• Veg. Fruit, Nut ~ 12%
• Other ~23%
60
Fishing, PLT Departures
Aquaculture, Net PLT Immigration
Support Agriculture 20
services 57%
11%
-20
Forestry & 91 92 93 95 96 98 99 00 02 03 05 06 08 09 10 12 13 15
Logging
9%
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Statistics NZ
KPMG Financial Institutional Performance Survey Review 2014 3. Statistics NZ, ANZ analysis

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ANZ New Zealand - Commercial and Agri Book composition

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Revenue PBP Lending Deposits
$NZm
+7% +10% +6% +7%
460 334 37,601 11,593
10,832
428 304 35,429
1H14 1H15 1H14 1H15 1H14 1H15 1H14 1H15
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Revenue [1 ] PBP [1] Lending [1] Deposits [1]
12% 12% 6% 14%
11%
33% 55% 34% 54% 43% 51% 75%
Commercial Agri UDC
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As at 31 March 2015 Note: All values in NZD ($m), Lending is Net Loans & Advances, Deposits are Customer Deposits

ANZ New Zealand - Maintaining a balanced Commercial and Agri portfolio

Diversified portfolio (FUM)

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Property
Services
24%
Dairy Farming
34%
Sheep and Beef
12%
Manufacturing
Other
5%
20%
Wholesale Trade
3%
Retail Trade
3%
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Credit Quality – Commercial (EAD by CCR)

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EAD by grouped credit rating bands (CCR [2] ) Risk
Rating
35% 38% 38% Stronger
58% 58% 58%
7% 4% 4%
Weaker
Mar 13 Mar 14 Mar 15
CCR 0-4 CCR 5-6 CCR 7-10
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Market share[1]

Credit Quality – Agri

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45% Mar 13 Mar 14 Mar 15
40%
35%
30%
25%
20%
15%
10%
5%
0%
Commercial Agri Commercial Agri
deposits deposits lending lending
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EAD by grouped credit rating bands (CCR [2] )
Risk
Rating
Stronger
65% 68% 67%
25%
26% 28%
10% 6% 5% Weaker
Mar 13 Mar 14 Mar 15
CCR 0-4 CCR 5-6 CCR 7-10
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RBNZ
Customer Credit Rating CCR Internal ANZ Rating

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New Zealand - mortgages portfolio

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|||||
|---|---|---|---|
|1H15 portfolio statistics|
|Total Number of Mortgage Accounts|494k|
|Total Mortgage FUM (NZD)|$64b|
|% of Total New Zealand Lending|59%|
|% of Total Group Lending|[1]|11%|
|Owner Occupied Loans - % of Portfolio|75%|
|Average Loan Size at Origination (NZD)|$289k|
|Average LVR at Origination|[2]|64%|
|Average Dynamic LVR of Portfolio|[3]|49%|
|% of Portfolio Paying Interest Only|[4]|22%|
|Individual provision as % of average NLA|
|FY12|FY13|FY14|1H15|
|Group|[1 ]|0.38% 0.25% 0.22% 0.17%|
|New Zealand Mortgages|[5 ]|0.07% 0.04% 0.06% 0.01%|

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Dynamic loan to valuation ratio

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6%
8%
0-60%
61-70%
19% 49%
71-80%
81-90%
90%+
18%
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Mortgage portfolio by region

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|||
|---|---|
|Auckland|
|3%|
|12%|
|Wellington|
|Christchurch|41%|
|Other North Island|26%|
|Other South Island|
|7%|11%|
|Other|

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As % of group average NLA. 2. Average LVR at Origination (not weighted by balance). 3. Average dynamic LVR as at (not weighted by balance) – Dynamic LVR graph as at Feb 2015. 4. Excludes revolving credit facilities. 5. Individual Provision as % average NLA.

2015 A U S T R A L I A A N D N E W Z E A L A N D B A N K I N G G R O U P L I M I T E D S e p t e m b e r 2 0 1 5

Portfolio composition by exposure at default Group International & Institutional Banking (IIB) Asia China

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ANZ portfolio composition: geography, division, industry

Group EAD by geography

Group EAD by division

EAD (June 15): AU$886b[1]

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23%
61%
16%
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45%
41%
2% 12%
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Australia APEA New Zealand
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Aus Division IIB² NZ Divisioin Wealth / Other

Data is provided is as at Jun15 on a Post CRM basis, net of credit risk mitigation such as guarantees, credit derivatives, netting and financial collateral. Position excludes Basel Asset Class “Retail”.
IIB: International and Institutional Banking division

ANZ Institutional Portfolio

Institutional Portfolio size & tenor (EAD)[1 ]

ANZ Institutional industry composition (EAD)

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AU$ B EAD(June 15): AU$375b [1]
400
Finance (Banks and Central Banks)
Government Admin.
350
30% Property Services³
34%
Services to Fin. & Ins.
300
Material Wholesaling
50%
Machinery & Equip Mnfg
3%
250 3% Petrol,Coal,Chem & Assoc Prod Mnfg
10%
4%
4% 5% 9% Electricity & Gas Supply
Other⁴
200
39% ANZ Institutional product composition (EAD)
150 EAD(June 15): AU$375b [1]
100 Loans & Advances
50% 26% 13%
Trade & Supply chain
2%
61% 25%
Traded Securities (e.g. Bonds)
50
74% 11% Contingent Liabilities & commitments
12%
Derivatives & Money Market Loans
88%
0 16% 15% Gold Bullion
Total APEA Asia China
Other
Institutional
18%
Tenor < 1 Yr Tenor 1 Yr+
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Data is provided is as at Jun15 on a Post CRM basis, net of credit risk mitigation such as guarantees, credit derivatives, netting and financial collateral. Position excludes Basel Asset Class “Retail”.
Country is defined by the counterparty’s Country of Incorporation
81% of the ANZ Institutional “Property Services” portfolio is to entities incorporated in either Australia or New Zealand.
Other is comprised of 48 different industries with none comprising more than 2.4% of the Institutional portfolio

ANZ Asian Institutional Portfolio

Country of Incorporation[2 ]

ANZ Asia industry composition

EAD(June 15): AU$104b[1]

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Finance (Banks & Central Banks)
Material Wholesaling
26%
7%
Machinery & Equip Mnfg
4%
25% 47% Petrol,Coal,Chem & Assoc Prod Mnfg
5%
3% Property Services
3%
6% 5% Pers & Household Good W'saling
5% Machinery & Motor Vehicle W'saling
6%
6% Other³
6%
ANZ Asia product composition
17%
13% EAD(June 15): AU$104b [1]
Loans & Advances
16% 20% Gold Bullion
29%
Trade & Supply chain
China Singapore Japan
Traded Securities (e.g. Bonds)
13%
HK Sth Korea Taiwan 5% Derivatives & Money Market Loans
Other
10%
Indonesia India Other
24%
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Data is provided is as at Jun15 on a Post CRM basis, net of credit risk mitigation such as guarantees, credit derivatives, netting and financial collateral. Position excludes Basel Asset Class “Retail”.
Country is defined by the counterparty’s Country of Incorporation

Other is comprised of 45 different industries with none comprising more than 2% of the Asian Institutional portfolio

ANZ China portfolio

China EAD

ANZ China industry composition (EAD)

Total China EAD of A$26b, with 33% or $8.8b booked onshore in China.

Tenor ~88% of EAD have a tenor less than 1 year

Risk rating

China exposure has a stronger average credit rating than Asia, APEA, Australia and NZ, with lower historic credit provisions and loss rates.

Industry

55% of China exposures to Financial institutions, with ~54 % of this to the Top 5 Chinese systemically important banks.

Products

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Finance (Banks and Central Banks)
12%
Manuf & Wholesaling
8%
3% Property Services
55% Petrol, Coal, Chem & Assoc prod Mnfg
23% Other
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ANZ China product composition (EAD)

Mix focussed on short term trade and markets facilities providing flexibility to change composition of the portfolio
Within Global loans and advances circa 60% have tenor less than 1 year

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Loans & Advances
4%
19%
Gold Bullion
20%
Trade & Supply chain
3%
18% Traded Securities (e.g. Bonds)
Derivatives & Money Market
Loans
36% Other
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Data is provided is as at Jun15 on a Post CRM basis, net of credit risk mitigation such as guarantees, credit derivatives, netting and financial collateral. Position excludes Basel Asset Class “Retail”.
Data is providing detail of exposure of counterparties domiciled in China , with the country where the exposure is booked.

2015

CLSA CONFERENCE Hong Kong

Home Loans

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Long term growth through leading proposition, investin in ca abilit to make it eas for customers g p y y

Building our sales reach

Enhancing the customer Expanding customer experience awareness

	43%	12mth increase in Mobile Lending loan writers with NSW up 50%
	$30b 17%	1H15 Home Loan Sales across all channels vs. PcP
	$8.6b	1H15 Home Loan FUM growth of $8.6b, up from $6.7b 1H14
	5 years	Sustained above System growth1

6 days Same day	Assessment available 6-days a week delivering same day assessment for over 90% of applications
1,000 hours per month	Process improvements freeing up front line capacity to serve more customers per month
53%	Complaint reduction over 3 years through end-to-end process re-engineering & reliable settlements
300k	Number of hits per month on ANZ.com tools and calculators

Consistently award winning

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2015 Australian Lending Awards;

Best Customer Experience
Best Investor Lender
Mortgage Lender of the year

We help our customers be informed

Over 180,000 ANZ property profile reports distributed over the last 12 months

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Providing super-regional capability

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Expanded our Non Resident proposition to residents of 14 countries

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5 years above APRA System quarter on quarter growth to Dec 2014.

Consistent above system growth, balanced across the ortfolio p

Delivering 5 years of consistent above system market share growth

Balanced growth across segments particularly in NSW

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

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103 102.7
102 102.2
101
100
99
98 98.0
97 97.0
96
Sep 12 Sep 13 Sep 14
ANZ Peer 1 Peer 2 Peer 3
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ANZ Growth vs system by segment[1] Feb 15 YTD

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1.3x 1.3x 1.2x
1.1x
1.1x 1.0x 1.0x
0.9x 0.8x
OO Inv WA SA
Broker Prop. Vic/Tas NSW/ ACT Qld/NT
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Strong sales volumes offset by industry high levels of repayments

Increased portfolio share in NSW/ACT

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ANZ Home Loan Portfolio (%)
Home loan flows 24 ($bn) 2 7 Equity Inv OO Prop 3 Broker
NSW/
26% 27% ACT
(24) 46% 47% VIC/
58% 57%
TAS
33% 33% QLD/
209 8% 218 NT
annualised WA
18% 17%
36% 38% 54% 53%
SA
Sep 14 New Sales Net OFI Refi Redraw & Repay. Mar 15 16% 16%
excl Interest /Other
Refi-in 6% 5% 7% 7%
Mar 14 Mar15 Mar 14 Mar 15 Mar 14 Mar 15
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Customer Segments (Owner Occupier and Investor) defined by APRA. Channel performance relative to overall market growth. Geography sourced from Cannex.
Source: Comparator quarterly benchmarking.
Proprietary, comprising Branch, Mobile and Other.

Actively assessing and managing our home lending risk across the end-to-end value chain

Multiple checks during origination process

End-to-end home lending responsibility managed within ANZ

Pre-sales (digital & marketing)

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•
Pre-application Income & Expenses
•
Application Know Your Customer •
•
Income Verification
Serviceability Income Models •
Expense Models
Interest Rate Buffer
•
•
LVR Policy
Collateral /
Valuations LMI policy
Valuations Policy •
Credit Credit History
Assessment •
Bureau Checks
• Broker
Documentation
Fulfilment • Digital
Security
• Mobile
Quality assurance, info verification & policy reviews
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Proprietary sales and/or verification of 3[rd] parties[1 ]
In-house loan origination, assessment, fulfilment
Balance sheet ownership
Collections activity

Originate to hold philosophy

Currently all lending is on balance sheet

Effective hardship & collections processes

Dedicated hardship team
Early warning based on system triggers

Full recourse lending

Multiple actions to manage potential losses

ANZ assessment process across all channels

ANZ network
Broker

3[rd] party sales channels (e.g. Broker) require ANZ accreditation and are subject to ongoing compliance monitoring to distribute ANZ home lending products.

Australian Housing Market

Strong sustained population growth

Main markets of Sydney, Melbourne, Brisbane & Perth all growing
Australian population growth currently 1.8% vs US 0.7% & UK 0.6%[1 ]

Culture of repayment

Interest is non tax deductible on primary residence
Full recourse lending
Accelerating repayments (~16% loan ‘buffer’ based on latest RBA report[2] )

Strong underwriting standards

Extremely limited subprime / low doc lending since 2008
Low levels of 100% LVR lending

Banks ‘own’ their credit risks

Lenders perform income verification
Very low level of securitisation (2% of total housing finance and declining[3] ) aligns origination and underwriting

Housing supply

Continues to trail population growth (with the exception of certain historical ‘hot spots’ e.g. Gold Coast 2007-2009)

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Source: WorldBank 2013.
Source: RBA Financial Stability Review Mar 2015.

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Source: APRA banking statistics.

Australian housing market

Low loan delinquencies and losses have historically been driven by:

1. Full recourse lending

Including security over primary residence for investor loans

2. Floating rate loans

Typically > 80% floating rate
ANZ serviceability test at customer rate plus 275bps

3. Low LVRs

ANZ portfolio average 51%, new originations average 71%
~4% of ANZ’s book > 90%
ANZ generally requires mortgage insurance on loans >80% LVR

4. Limited tax incentives

Primary residence interest not tax deductible
Incentivises repayment: 43% of ANZ’s book >30 days ahead; 16% of system mortgage loan balances held in cash offset accounts

5. Origination practices

Mortgages retained on balance sheet (<2% system housing stock securitised)
Lenders perform income verification

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Refer page 41 for ANZ Australia Home Loans portfolio statistics

Australian housing market

Capital city house prices[1]

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Index = Dec 2004 10 Yr
CAGR
200
6.3%
180
5.3%
160
4.6%
140
120
100
80
60
Sydney
Melbourne
Weighted Average (Eight Capital Cities)
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% of population in two largest
cities [3 ]
45
40
35
30
25
20
15
10
5
0
New Zealand Australia Chile South Korea Norway UK Sweden Spain Japan Canada Netherlands Switzerland Italy Germany France Brazil US
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Capital city median house prices[2 ]

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$k
800
700
600
500
400
300
200
100
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Sydney
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Population growth (pa)[4 ]

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2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
Australia G7 weighted average
1982 1987 1992 1997 2002 2007 2012
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Source: ABS residential property price index data.
Source: ABS median house price data, established dwelling transfers. Smoothed over semiannual period. 3. Source: United Nations Data
Source: IMF Database

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Australian housing market Market attributes

New dwellings approvals[2 ]

System housing credit growth yoy

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900
800
700
600
500
400
300
200
100
-
1984 1989 1994 1999 2004 2009 2014
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20%
15%
10%
5%
0%
OO Investor Total housing
Mar-05 Dec-05 Sep-06 Jun-07 Mar-08 Dec-08 Sep-09 Jun-10 Mar-11 Dec-11 Sep-12 Jun-13 Mar-14 Dec-14
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New dwelling approvals per million population Average

Household income growth (nominal)[3 ]

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% YoY
12
10
8
6
4
2
0
2005 2007 2009 2011 2013 2015
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Mortgage affordability[4 ]

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%
48 18
Long-run average
44 16
affordability
40 14
36 12
32 10
28 8
24 6
20 4
1986 1990 1994 1998 2002 2006 2010 2014
income
% of average household disposable
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Mortgage service affordability % of household disposable income (LHS) Discounted bank mortgage rate (RHS)

Source: IMF
Source: ABS
Source: RBA. Nominal household disposable income, yearly smoothed
Source: ANZ Economics. Calculated for mortgage repayments on 80% LVR of median capital city house price.

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2015

CLSA CONFERENCE Hong Kong

Economic Snapshots

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Australia Economics – Forecasts

Non-mining business indicators[3 ]

Forecasts	2015	2016	2017
GDP	2.4	3.0	3.5
Inflation (core CPI)	2.4	2.3	2.5
Unemployment (avg)	6.4	6.5	6.1
Current A/C (% GDP)	-2.6	-1.5	-1.0
Cash rate (year-end)	2.00	2.00	2.50
10 year bonds	2.10	3.25	4.00
AUD/USD	0.72	0.70	0.70
Iron ore (USD/t)	501	541	552
Thermal coal (USD/t)1	681	701	732

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GDP Growth and Coal/Iron Ore Exports[4 ]

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Source: ANZ Economics, RBA.

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Estimates as at December. 2. Long term forecast. 3. Source: RBA Statement of Monetary Policy May 2015. 3. Source: RBA Statement of Monetary Policy Feb 2015.

Australian Economy & Household Sector – RBA chart pack

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Australian Business sector – RBA chart pack

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Australian Employment – RBA chart pack

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New Zealand & China Economics

New Zealand Forecasts[1 ]

	2015	2016
GDP	3.0	2.6
Inflation	0.7	1.7
Unemployment	5.3	5.1
Current A/C (% GDP)	-4.8	-5.0
Cash rate1	3.50	3.75
10 year bonds1	2.90	3.40
NZD/AUD1	0.97	0.97

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China Forecasts[1 ]

China days of use of China Manufacturing imported iron ore PMI

	2015	2016
GDP	6.8	6.7
Inflation	1.8	2.5
Reserve Requirement Ratio	18.5	18.5
Exports y/y (RMB)	6.8	3.0
Imports y/y (RMB)	-5.6	2.0
Trade Balance (RMB bN)	3874	4104
USD/CNY	6.20	6.18

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Source: ANZ Economics (May 2015); 1. 2016 forecasts are for period ending Sept quarter.

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China Economics

Iron ore exports – quarterly

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$bn
30
25
20
15
10
5
-
Foreign student enrolments
‘000 students
700
600
500
400
300
Chinese students represent
200 ~30% of total foreign student
enrolments
100
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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Other exports – yoy growth

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12%
8%
4%
0%
-4%
-8%
-12%
Services Manufactured goods
Chinese tourist arrivals
in Australia per month
100 20%
80
15%
60
10%
40
5%
20
- 0%
Dec-04 Sep-05 Jun-06 Mar-07 Dec-07 Sep-08 Jun-09 Mar-10 Dec-10 Sep-11 Jun-12 Mar-13 Dec-13 Sep-14
2004 2005 2006 2007 2007 2008 2009 2010 2010 2011 2012 2013 2013 2014
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Short term arrivals from China (LHS, '000) Chinese arrivals % total (RHS)

Source: RBA, ABS, DFAT

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

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

For further information visit

www.anz.com

or contact

Jill Craig Group General Manager Investor Relations

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

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AI assistant

Australia and New Zealand Banking Group Ltd. — Interim / Quarterly Report 2015

10425_rns_2015-09-13_726b9125-68aa-4cad-842b-869a725f99f7.pdf

CLSA CONFERENCE 2015 Hong Kong

Index

2015

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

Corporate Profile – Latest Full Year position: 2014

Profit & Loss contribution by division

Operating Income by Division[1 ]

1H15 - Operating Income by Division[1 ]

Profit & Loss contribution by geography

Operating Income by Geography

1H15 - Operating Income by Geography

Net Profit after Tax by Geography

Balance sheet

Group balance sheet composition

Group lending composition[2 ]

Institutional Balance sheet profile

Total Credit Exposure (EAD) by Geography

Exposure at Default[1] by Geography

Exposure at Default by Line of Business[2 ]

2015

Summary of results

Impact of FX translation

Operating environment and key actions

What we said at FY14 Actions – 1H15 Expanded coverage

Improved Customer Experience

Composition of Group earnings

Revenue drivers

Net Interest Margin

Net interest margin

Group

Divisional

Australia Division

NZ Division (NZD)

Lending composition and flows

Australia Division

NZ Division

Net Loans and Advances balance

Net Loans and Advances balance[1 ]

Net Loans and Advances flows

Net Loans and Advances flows[2 ]

Cost to income

Australia Division

NZ Division (NZD)

Global Wealth[1]

Return on Risk Weighted Assets

Australia Division

NZ Division (NZD)

IIB

IIB Asia (ex partnerships)

Portfolio credit quality remains sound

Australia – consistent growth & return, plus accelerated investment

Retail lending growth

Commercial lending growth

Strong operating performance

1H15 profit growth (PCP)

Australia - Retail a highlight

New Zealand Division – scale benefit driving growth

Retail lending growth

Commercial lending growth

Improved productivity

1H15 PCP growth (NZ$)

Global Wealth – focused on quality & growth

Improved productivity[3 ]

Digital investment – delivering results

Australia

ANZ Smart Choice

Sales revenue via Digital 14.0% [[3]] (%)

IIB revenue – re-balancing

Markets income by type

IIB – improving the mix

IIB 1H15 profit by region

IIB 1H15 Revenue Growth

IIB Asia Productivity

IIB Asia Profitable growth

2015

ANZ’s CET1 ratio compares favourably to global peers adjusting for regional methodology differences

Regulatory capital

Australia and New Zealand Banking Group Ltd. Interim / Quarterly Report 2015

m CAGR
+9.4%
3.3 3.4
2.9 Non-ANZ
0.9 (2.1%)
1.0 channels
1.0
ANZ channels +15.0%
2.3 2.5
1.9
Mar 13 Mar 14 Mar 15
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