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

Jun 29, 2015

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30 June 2015

Company Announcements Australian Securities Exchange Level 4 20 Bridge Street Sydney NSW 2000

Shareholder Update 2015

The attached Shareholder Update is being made available to ANZ shareholders in conjunction with the despatch of the 2015 Interim Dividend statements.

Yours faithfully

John Priestley Company Secretary

Australia and New Zealand Banking Group Limited

Company Secretary’s Office

ANZ Centre Melbourne, Level 9, 833 Collins Street, Docklands Vic 3008 GPO Box 254, MELBOURNE VIC 3001 AUSTRALIA

www.anz.com

Australia and New Zealand Banking Group Limited ABN 11 005 357 522

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CHAIRMAN’S REPORT

A message from David Gonski AC

Enclosed with this Shareholder Update is the advice of your 2015 Interim Dividend payment of 86 cents per share fully franked, 4% higher than the fi rst half of 2014.

This refl ects a good, well balanced fi nancial performance during the fi rst half of the 2015 fi nancial year which saw statutory profi t up 3% to $3.5 billion while cash profi t1 rose 5% to $3.7 billion.

Our fi nancial performance and capital strategy is allowing us to maintain the dividend payout ratio for the fi nancial year towards the upper end of the Board’s target of 65 to 70% of Cash Profi t. This will see ANZ shareholders receive a total of $2.4 billion in dividends for the fi rst half of which almost 75% will be paid to Australian based retail and institutional investors.

Turning to our performance in more detail, I am pleased to report that we saw a range of strong outcomes in our major franchises in Australia, in New Zealand and in Asia which highlights the value of ANZ’s super regional strategy.

In our domestic markets of Australia and New Zealand we again delivered strong growth and returns. In Australia we are investing heavily to support our customers’ future needs particularly through digital solutions and by increasing our presence in New South Wales. In New Zealand we are continuing to see the benefi ts of our simplifi cation program with a stronger brand and growth in market share.

We are responding to this more constrained environment by taking action to improve returns while we continue to benefi t from the growth opportunities in Asia.

Across the Group credit conditions remained benign. The total provision charge decreased 3% to $510 million in calculating cash profi t1, refl ecting ANZ’s long-term focus on asset quality and prudent credit standards.

While there is still much to do at ANZ, our performance is a reminder of what a successful bank can achieve when it is focussed on supporting the ambitions of individuals, of businesses, of employees, of shareholders and indeed of the community as a whole.

Because of the important role we are trusted to play, Australia’s banks have to maintain a long-term focus. With our history now stretching back some 180 years, I am pleased to say that ANZ is a bank that has a very clear sense of its future in Australia, in New Zealand and in Asia Pacifi c.

Global Wealth continued to achieve positive results and is delivering industry-leading innovation for our customers.

International and Institutional Banking also performed well including strong growth in regional trade and investment corridors, for example between Australia and Hong Kong and Australia and Singapore. The global economic environment is however more challenging for institutional banking.

In this half we continued to contribute to the success of our customers and to building stronger communities, and on behalf of our shareholders I’d like to thank our talented and professional staff for their contribution.

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DAVID GONSKI AC CHAIRMAN

2015 HALF YEAR HIGHLIGHTS

5% $3,676 million CASH PROFIT 1H14 $3,515 million	4% 86 cents DIVIDEND PER SHARE	4%
		133.6 cents CASH EARNINGS PER ORDINARY SHARE
	1H14 83 cents	1H14 128.7 cents

1. Statutory profi t has been adjusted to exclude non-core items to arrive at cash profi t, which is provided to assist readers to understand the results for the ongoing activities of the Group.