AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Results Presentation & Investor Discussion Pack

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Index

Full Year Result Overview

Year Result Overview
CEO Presentation	3
CFO Presentation	11

Additional Financial Information

Additional Financial Information
Adjustments between statutory profit and underlying profit	23
Net Interest Margin	24
Balance Sheet	33
Treasury	37
Risk Management	48

Divisional Performance

sional Performance
Australia Division	70
International and Institutional Banking	98
New Zealand Businesses	121
Global Wealth and Private Banking	134

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Mike Smith Chief Executive Officer

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Overview of financial performance

		2012
	$M	%
Underlying Profit1, 2, 3	6,011	+6%
Operating Income	17,579	+5%
Expenses	8,022	+4%
Provisions	1,246	+3%
Statutory Net Profit After Tax	5,661	+6%
EPS (cents)	225.3	+3%
Dividend per Share (cents)	145	+4%
Net Interest Margin	2.31%	-11bps
Customer deposits	327,876	+10%
Net loans and advances4	427,823	+8%

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

The statutory profit is adjusted to exclude certain non-core items to arrive at underlying profit
A reconciliation between statutory profit to underlying profit has been provided on page 23 of this presentation
Refer to pages 75 to 84 of the ANZ Consolidated Financial Report Dividend Announcement and Appendix 4E for an analysis of the reconciliation of statutory profit to underlying profit
Including acceptances

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Australia Division

Underlying profit growth

FY12 v FY11

Australia Division 4%

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Underlying Net Profit after Tax Traditional Banking Market Share [1]
$m ANZ Peer 1 Peer 2 Peer 3
2316
2 2
2215 1 1
2492 2114
2390
13
12
11
10
Jul-10 Jan-11 Jul-11 Jan-12 Jul-12Aug-12
1305
1187 Cost to Income Ratio (%)
43% 42% 1480
41%
40%
41% 39%
39% 1430
37%
35% 1380
FY11 FY12 1H12 2H12 1H11 2H11 1H12 2H12
Operating Expenses (RHS) CTI (LHS)
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Source: Roy Morgan Research: Aust Pop‟n aged 14+, rolling 12 months, Trad Banking Consumer Market (Deposits, Cards & Loans), Peers: CBA (excl Bankwest), NAB, Westpac (excl Bank of Melbourne & St George)

International and Institutional Banking (IIB) Division

Underlying profit growth (AUDm) FY12 v FY11

IIB Division 3%

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Net profit after Tax Income Growth FY12 v FY11
1
Institutional Australia / New Zealand APEA
2,372
2,301 25%
2,047
744 908
714 17%
14%
11%
1,557
1,464
1,333
FY10 FY11 FY12 Cash Trade & Global Foreign
Management Supply Chain Markets Exchange
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Includes Relationship & Infrastructure Australia / New Zealand

New Zealand Businesses

Underlying profit growth (NZDm)

FY12 v FY11

New Zealand Businesses 11%

Underlying profit			Cost to Income Ratio
863 957 473 484 FY11 FY12 1H12 2H12 NZDm		44.9% 44.9% 44.1% 43.8% 480 500 520 540 560 580 600 620 640 660 40.5% 41.0% 41.5% 42.0% 42.5% 43.0% 43.5% 44.0% 44.5% 45.0% 1H11 2H11 1H12 2H12 Operating Expenses (RHS) CTI (LHS) NZDm

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Global Wealth and Private Banking Division

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Underlying profit growth FY12 v FY11
Global Wealth and Private Banking Division -1%
Underlying profit Insurance annual in-force premiums
$m $m 1,822
457 451
1,758
1,722
2H11 1H12 2H12
245
206
Cost to income ratio
59.8%
58.0%
57.4%
56.3%
FY11 FY12 1H12 2H12
FY11 FY12 1H12 2H12
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Credit Quality

Provision Charge Trends

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$m Collective Provision Charge (LHS) % Avg. Net Advances
Individual Provision Charge (LHS)
2,000 1.00%
Total Provision Charge as % Avg. Net Advances (RHS)
1,750 0.90%
0.80%
1,500
0.70%
1,250
0.60%
1,000
0.50%
750
0.40%
500
0.30%
250
0.20%
0 0.10%
-250 0.00%
1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12
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Progressing well against our strategic objectives

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Strengthen Domestic Franchise Connectivity / Revenue Diversification
• Market share • % IIB revenue derived outside AUS/NZ 43%
 AUS Mortgages ↑20 bps YOY [1]
• % IIB deposits derived outside AUS/NZ 54%
 AUS Household Deposits ↑20 bps YOY [1]
 NZ Mortgages ↑41 bps YOY [1] • APEA revenues ↑14%
 NZ Household Deposits ↑5 bps YOY [1] • Cross border revenues ↑16%
• Cost to income • Product revenue
 Australia Division ↓HOH / ↓YOY  Trade & Supply Chain ↑25%
 NZ Division ↓HOH / ↓YOY  FX ↑17%
 Cash Management ↑11%
• Australia Commercial clients
 Trade finance revenue [2] ↑20% YOY • Customer segment revenue
 Global markets revenue [2] ↑40% YOY  Natural Resources ↑25%
 FIG ↑15%
• Growing use of digital and online channels  Agriculture ↓8%
 goMoney registered users Over 780k  Infrastructure ↓8%
Operational Leverage Capital and Funding Efficiency
• Jaws + HOH / + YOY
• Cost to income ↓HOH / ↓YOY • Natural drags on ROE [3] being offset with efficiency actions
• OPEX to average assets ↓HOH / ↓YOY  Divested Visa shareholding
 Divested Origin mortgage business
• Lowering unit costs  Restructure of Wealth balance sheet
 Operational cost growth flat HOH despite all
divisions growing transaction volumes and digesting •
Removing discount on DRP for the final dividend
past investment in property and technology
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12 months to August 2012
Refers to revenues generated by Commercial clients and booked in other divisions

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Including additional regulatory requirements and a lower rate environment

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Shayne Elliott Chief Financial Officer

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2012 Full year financial performance

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Performance FY12 v FY11 ($m)
154
ROE 16.2% ROE 15.6%
613
6,011
304
35
69
5,652
Up 5% Up 3% Up 4% Up 3% Up 3%
Up 6%
FY11 NII OOI Expenses Provisions Tax & OEI FY12
Underlying Underlying
Profit Profit
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Performance 2H12 v 1H12 ($m)

Performance 2H12 v 1H12 ($m)	Performance 2H12 v 1H12 ($m)	Performance 2H12 v 1H12 ($m)	Performance 2H12 v 1H12 ($m)	Performance 2H12 v 1H12 ($m)	Performance 2H12 v 1H12 ($m)	Performance 2H12 v 1H12 ($m)
1H12 Underlying Profit	NII	OOI	Expenses	Provisions	Tax & OEI	2H12 Underlying Profit
2,973	143	28	18	(116)	(8)	3,038
	Up 2%	Up 1%	Flat	Up 21%		Up 2%

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Super Regional Strategy – 5 Core Themes

1 Strengthen our position in Australia and New Zealand 2 Capture faster growing regional flows in trade, capital and wealth 3 Diversify revenue streams by product, geography and customer 4 Leverage global hubs and shared platforms 5 Drive capital efficiency and superior returns for shareholders

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Strengthening our position in Australia & New Zealand

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Australia New Zealand
Deposit & Lending Growth Deposit & Lending Growth
FY12 v FY11 FY12 v FY11
Deposits Lending Deposits Lending
13%
12% 12%
9% 9% 9%
7%
1%
Retail Commercial Retail Small Business Banking
Cost to Income Ratio Cost to Income Ratio
45.0% 45.0%
40.0% 40.0%
35.0% 35.0%
1H11 2H11 1H12 2H12 1H11 2H11 1H12 2H12
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Capturing regional flows and diversifying income

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Global Markets Income Income Growth FY12 v FY11
$m
Sales Trading Balance Sheet
1,200
25%
1,022 17%
988
1,000 953 10% 11%
909
864
800
Global Foreign Cash Trade &
701
Markets Exchange Management Supply Chain
Sales
600 46%
25%
400
15%
200
-8%
0
Agriculture Financial Natural Commercial
1H10 2H10 1H11 2H11 1H12 2H12 Institutions Resources Asia
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Productivity focus is delivering results

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Cost to Income Ratio (%) Operating Expense Growth (%)
Group FY10 FY11 FY12
Australia Division
15%
International & Institutional Banking Division
11%
New Zealand Businesses
9%
50%
6%
4%
2%
45% Group Australia
FY10 FY11 FY12
20%
17%
40%
6%
2%
0%
35%
1H11 2H11 1H12 2H12 -2%
IIB New Zealand (NZD)
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Effective capital management critical in a lower growth environment

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$11bn of shareholders‟ equity used to
Common Equity Tier 1 Ratio
strengthen capital ratios
APRA Basel 3 Internationally Harmonised Basel 3
$40b
Capital
11 Strengthening
10.0%
9.8%
9.5%
9.3%
8 Business Growth
7.8% 8.0%
7.3% 7.5%
Shareholders‟
21 Equity
September 2007
Mar 11 Sep 11 Mar 12 Sep 12 Sep 12
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Credit quality tracking in line with expectations

Gross Impaired Assets by Size of Exposure	Gross Impaired Assets by Size of Exposure			Management Overlay Balance Movement 2H12 v 1H12	Management Overlay Balance Movement 2H12 v 1H12
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 $m	Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 > $100m $10-$99m < $10m 6,561 6,561 6,221 5,581 5,343 5,196			862 (44) (198) (29)	597 6
				1H12 Australia IIB NZ	Other 2H12

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2012 Operating Income Mix

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Divisional Revenue Customer Revenue
International & Financing &
Institutional Banking Capital Management
Australia
37% Payments &
40%
Cash
65%
Management
20%
15%
12%
8%
Group 2% New Risk
Centre
Zealand
Management
Global Wealth &
Private Banking
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Net Interest Margin trends

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Net Interest Income 2H12 v 1H12
Net Interest Margin
Group Ex-Markets Australia Division
Down 7bps Up 4 bps ANZ Group ex-markets
4.9% 4.2%
Australia Division
1.8%
NZ Businesses
IIB Division ex-Markets 3.50%
-2.5%
Volume Margin Volume Margin
3.00%
New Zealand
IIB Ex-Markets
Businesses (NZD)
Down 33bps Down 7 bps 2.50%
7.4%
2.9%
2.00%
-2.5%
-10.3%
1.50%
Volume Margin Volume Margin
1H11 2H11 1H12
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Outlook - Continuing to execute our super regional strategy

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Income Growth Return on Equity
FY11 FY12
16%
7%
6% 19.6%
15.1% 15.5% 16.2% 15.6%
13.3%
3%
Australia / New Zealand APEA FY07 FY08 FY09 FY10 FY11 FY12
Operating Expense Growth Dividend
15% Full Year Dividend Dividend Payout Ratio (RHS)
11% 65.0% 65.3%
64.1% 64.1%
4%
140 145
126
102
FY10 FY11 FY12 FY09 FY10 FY11 FY12
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack Additional Financial Information

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Adjustments between statutory profit and underlying profit

	2H12	FY12
	$M	$M

Statutory profit	2,742	5,661
Adjustments between statutory profit and underlying profit
Gain on sale of Visa shares	(224)	(224)
New Zealand Simplification programme	59	105
Acquisition related adjustments	13	41
Treasury shares adjustment	26	96
Economic hedging - fair value (gains)/losses	207	229
Revenue and net investment hedges (gains)/losses	10	(53)
Capitalised software impairment	220	220
NZ managed funds impacts	-	1
Non continuing businesses	(15)	(65)
Total adjustments between statutory profit and underlying profit1	296	350
Underlying profit	3,038	6,011

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

Net Interest Margin (NIM) movement summary

Basis points (bps)	Group	Divisions Australia Division NZ Businesses IIB Division	Regions Australia NZ
	HOH YOY	HOH YOY HOH YOY HOH YOY	HOH YOY HOH YOY
Starting NIM	235 242	245 259 266 252 195 209	251 259 247 235
Funding & Asset Mix Funding Costs Deposits Assets Other	-2 1 -2 -8 -11 -10 9 6 -1 2	-1 -2 3 7 -8 -11 5 -3 -2 -15 -11 -7 -16 -14 -9 1 -4 -7 18 10 4 13 -7 -15 -2 -3 -3 4 -3 0	-3 -1 2 6 -2 -6 -1 -10 -12 -11 -9 2 13 7 3 12 -1 -1 -3 2
Movement excl. Global Markets	-7 -9	4 -12 -7 10 -33 -40	-5 -12 -8 12
Markets	0 -2	0 0 0 0 14 16	2 2 0 -4
Total Movement	-7 -11	4 -12 -7 10 -19 -24	-3 -10 -8 8
Ending NIM	228 231	249 247 259 262 176 185	248 249 239 243

Some small variances to the detailed NIM pages exist as a result of rounding

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NIM – Divisional Trends

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Net Interest Income 2H12 v 1H12
Net Interest Margin
Group Ex-Markets Australia Division
ANZ Group ex-markets
4.9%
Down 7 bps 4.2% Up 4 bps Australia Division
1.8%
NZ Businesses
IIB Division ex-Markets 3.50%
-2.5%
Volume Margin Volume Margin
3.00%
New Zealand
IIB Ex-Markets
Businesses (NZD)
2.50%
7.4%
Down 33 bps 2.9% Down 7 bps
2.00%
-2.5%
-10.3%
1.50%
Volume Margin Volume Margin
1H11 2H11 1H12
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NIM – Group

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NIM movement 2H12 v 1H12
bps
235
9 228
2
2
1 0
11
Ex-markets down 7 bps
Including markets down 7 bps
1H12 Funding & Funding Costs Deposits Assets Other Markets 2H12
Asset Mix
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Key drivers of movement	Key drivers of movement
Funding & Asset Mix	Relative increase in Transaction Banking and lower growth in cards
Funding Costs	Lower returns on invested capital, wholesale funding costs stabilised in the half
Deposits	Strong competition for deposits in Australia and NZ and an increase in proportion of term deposits, particularly in Australia and IIB
Assets	Asset repricing benefits in Australia and New Zealand, partially offset by increased pricing competition in Global Loans

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NIM – Group

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NIM movement FY12 v FY11
bps 1
242
2
6 231
8
2
10
Ex-markets down 9 bps
Including markets down 11 bps
FY11 Funding & Funding Costs Deposits Assets Other Markets FY12
Asset Mix
Key drivers of movement
Funding & Reduced reliance on wholesale funding offset by growth in Transaction Banking and lower growth in
Asset Mix Cards
Funding Costs Lower returns on invested capital and higher wholesale funding costs
Deposits Effects of strong competition for deposits primarily in Australia
Asset repricing benefits in Australia and New Zealand, partially offset by increased pricing competition
Assets
in Global Loans
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NIM – Australia Division

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NIM movement FY12 v FY11
bps
259
2 10
3 247
3
14
Down 12 bps
FY11 Funding & Funding Costs Deposits Assets Other FY12
Asset Mix
NIM movement 2H12 v 1H12
bps
18
5 249
245
2
1
16
Up 4 bps
1H12 Funding & Funding Costs Deposits Assets Other 2H12
Asset Mix
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NIM – New Zealand Division

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NIM movement FY12 v FY11
bps
4 262
7 13
252
1
15
Up 10 bps
FY11 Funding & Funding Costs Deposits Assets Other FY12
Asset Mix
NIM movement 2H12 v 1H12
bps
3
266
2
4
259
3
9
Down 7 bps
1H12 Funding & Funding Costs Deposits Assets Other 2H12
Asset Mix
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NIM – International & Institutional Banking Division

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NIM movement FY12 v FY11
bps
209
16 185
11
7
7 0
15
Ex-markets down 40 bps
Including markets down 24 bps
FY11 Funding & Funding Costs Deposits Assets Other Markets FY12
Asset Mix
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NIM movement 2H12 v 1H12
bps
195
14 176
8
11
4
7
3
Ex-markets down 33 bps
Including markets down 19 bps
1H12 Funding & Funding Costs Deposits Assets Other Markets 2H12
Asset Mix
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NIM – Australia Geography

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NIM movement FY12 v FY11
bps
259
1 7 2 249
6
1
11
Ex-markets down 12 bps
Including markets down 10 bps
FY11 Funding & Funding Costs Deposits Assets Other Markets FY12
Asset Mix
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NIM movement 2H12 v 1H12
bps
251
248
13
3
2 1 2
12
Ex-markets down 5 bps
Including markets down 3 bps
1H12 Funding & Funding Costs Deposits Assets Other Markets 2H12
Asset Mix
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NIM – New Zealand Geography

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NIM movement FY12 v FY11
bps 12 2
243
6
4
235
2
10
Ex-markets up 12 bps
Including markets up 8 bps
FY11 Funding & Funding Costs Deposits Assets Other Markets FY12
Asset Mix
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NIM movement 2H12 v 1H12
bps
2
247
1 3
239
9 3 0
Ex-markets down 8 bps
Including markets down 8 bps
1H12 Funding & Funding Costs Deposits Assets Other Markets 2H12
Asset Mix
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Balance Sheet – Customer Lending & Deposits

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Net Loans & Advances
Customer Deposits
(incl. Acceptances)
$b $b Loan /
Deposit
Ratio
450 450 180%
167%
400 400 160%
350 350 130% 140%
300 300 120%
250 250 100%
200 200 80%
150 150 60%
100 100 40%
50 50 20%
0 0 0%
Sep 08 Sep 09 Sep 10 Sep 11 Sep 12 Sep 08 Sep 09 Sep 10 Sep 11 Sep 12
Australia APEA New Zealand Group LTD Ratio (RHS)
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Balance Sheet – Composition by Geography

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Customer Lending [1] by Geography Customer Deposits by Geography
Australia APEA APEA APEA Commercial
Institutional Retail & Wealth Retail & Wealth & Institutional
14% 2% APEA Commercial 5% 19%
& Institutional
Australia 8%
Commercial Australia
Institutional
12% APEA 17% APEA
New Zealand
Australia 11% 7% Retail & Wealth 24% New Zealand
Other New New 8% Retail & Wealth
Retail 3%
Zealand Zealand
Australia71% 18% 10% New ZealandCommercial Australia 16% 5% New ZealandCommercial
1% New Zealand CommercialAustralia 13% 60% 3% New Zealand
Institutional Institutional
43%
30%
Australia
Retail Mortgages
Australia Retail
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Customer lending represents Net Loans & Advances including acceptances

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Balance Sheet – Composition by Division

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Customer Lending [1] by Division Customer Deposits by Division
25%
43%
44%
57%
17%
1%
1% 12%
Australia Australia
International & Institutional Banking International & Institutional Banking
New Zealand New Zealand
Global Wealth & Private Banking Global Wealth & Private Banking
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Customer lending represents Net Loans & Advances including acceptances

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Balance Sheet – Composition by Segment

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Customer Lending [1] by Segment Customer Deposits by Segment
New Zealand Australia
Australia
Commercial New Zealand Institutional
Commercial
Commercial 17%
10%
12% 5%
New Zealand
Retail & Wealth 7% Commercial 14% Australia Australia 13%
Retail & Wealth APEA 2% 22% Institutional Commercial Commercial18% Institutional39% 19% Institutional APEA
Institutional
Retail &
Wealth 23% 8% Institutional APEA Retail & WealthNew Zealand 8% Retail & Wealth
3%
55% 1% New Zealand 5% 43% New Zealand Institutional
Institutional APEA
Retail &
Wealth
30%
46%
Australia Australia
Retail & Wealth Retail & Wealth
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Customer lending represents Net Loans & Advances including acceptances

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack Treasury

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Balance Sheet strengthening has been a consistent focus

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Strong Capital Position Increased Liquid Assets
AUDb
115
10.8%
10.1%
75
7.7%
38
8.8%
8.0%
5.9%
Sep 08 Sep 10 Sep 12
Sep 08 Sep 10 Sep 12
Basel 2 Tier 1 Ratio Basel 2 Common Equity Tier 1
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Strengthened Funding Profile

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

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10% 13% 13%
26% 21%
41%
31%
33%
23%
35%
26% 28%
Sep 08 Sep 10 Sep 12
Domestic North America Europe Asia
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ANZ is in a strong capital position

$11bn of shareholders‟ equity used to strengthen capital ratios

Capital levels are well positioned (CET1)

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Basel 3
AUDb 40
Minimum
10.0%
Capital 9.5% 9.8% Capital
9.3%
11 Strengthening Requirement
Business Capital
21 8 Growth 2.5% Conservation
Buffer
7.3% 7.5% 7.8% 8.0%
CET1
Minimum
4.5%
Sep-07 Sep-12 Mar 11 Sep 11 Mar 12 Sep 12 Jan 16
APRA Basel 3 Internationally Harmonised Basel 3
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Capital Management Agenda

Capital strengthening phase is largely complete
Discount applied to Dividend Reinvestment Plan removed for the 2012 Final Dividend
Continuing focus on capital allocation and optimisation

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Solid organic capital generation underpins strong Basel 3 CET1 osition p

Capital Position (APRA Basel 3 Common Equity Tier 1)

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10.03
2.03
(0.70) 0.28
(0.27) 8.02
7.47 (0.03)
(0.76)
Portfolio growth: 38bp decrease
Risk Migration (incl EL vs EP): 2bp increase
Portfolio data review: 5bp increase
Non credit RWA [3] : 39bp decrease
Up 55 bps
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Sep-11 APRAUnderlying NPAT (1)RWA Usage (2) Non RWA Dividends (net DRP)Capital Initiatives and Divestments (5)Other (6) Basel 3 Business Usage (4)

Sep-12 APRASep-12 Internationa Basel 3 Harmonised B3

Underlying earnings net of pref shares. 2. Includes impact of expected loss versus eligible provision shortfall 3. Includes Operational model risk (22bps). 4. Includes capital retention of deconsolidated entities, capitalised software (before write off) and other intangibles. 5. Includes external refinance of OnePath Australia and sale of shares in VISA Inc. 6. Net FX, Non-Core NPAT items, net deferred tax assets and AFS reserve.

Reconciliation of ANZ‟s capital position under Basel 3

ANZ capital ratios: Basel 2 to Basel 3

	CET1	Tier-1	Total Capital
Sep-12 APRA Basel 2	8.8%	10.8%	12.2%
Dividend not provided for (net of DRP)	0.5%	0.5%	0.5%
Investments in ADI and overseas equivalents	-0.4%	-0.4%	0.0%
Investments in ANZ insurance subs including OnePath	-0.3%	-0.3%	0.0%
Expected losses in excess of eligible provisions	-0.2%	-0.2%	0.0%
Other	0.0%	-0.1%	-0.1%
10% reduction of existing hybrid and Tier 2 securities	0.0%	-0.2%	-0.4%
Estimated increase in RWA1	-0.4%	-0.4%	-0.5%
Sep-12 APRA Basel 3	8.0%	9.7%	11.7%
10% allowance for investments in insurance subs and ADIs	0.7%	0.7%	0.7%
Up to 5% allowance for deferred tax asset	0.2%	0.2%	0.2%
Other capital items	0.2%	0.2%	0.2%
Mortgage 20% LGD floor and other measures	0.5%	0.6%	0.6%
IRRBB RWA (APRA Pillar 1 approach)	0.4%	0.4%	0.5%
Sep-12 Internationally Harmonised Basel 3	10.0%	11.8%	13.9%

Includes credit counterparty but excludes any Basel 3 liquidity changes.

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Well diversified funding profile with a low reliance on offshore short term wholesale debt

Strengthened Funding Profile

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Offshore
Commercial
Paper only 2%
of total funding
(USD13b)
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13% 13% 14%
18%
22%
6% 6% 5%
5%
7% 12% 12%
16%
15%
14%
60% 61%
57%
54%
50%
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Sep 08 Sep 09 Sep 10 Sep 11 Sep 12 Short Term Wholesale Customer Funding Funding Term Debt < 1 year Residual Shareholders equity Maturity & Hybrid debt Term Debt > 1 year Residual Maturity

Shareholders equity & Hybrid debt

FY12 Lending growth fully funded by deposit growth

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AUDb
31.1
(30.3)
28.3
(22.9)
(15.9)
9.3
0.4
Loans Term Liquids Other
Deposits 1 Term Debt Issuance & Equity Maturities Short Term debt net of Inter-Bank
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Excludes unfunded documentary credit acceptances

FY13 term funding well progressed, already one third complete

	Consistent term	Consistent term	Consistent term	Consistent term	Consistent term	wholesale	wholesale	wholesale	wholesale	funding	funding		Growth	Growth	Growth	in	in	term wholesale funding	term wholesale funding	term wholesale funding	term wholesale funding	term wholesale funding	term wholesale funding
AUDb				requirement									3m BBSW		portfolio costs moderating
30													160bp		Actual		portfolio cost
25			Issuance						Maturities				140bp		Forecast portfolio cost based on current market levels

										Indicative annual issuance volumes			120bp

20													100bp



15													80bp
													60bp
10
													40bp
5
													20bp

0													0bp
	FY08 FY09 Senior		FY10 FY11 Unsecured		FY12	FY13	FY13 FY14 FY15 Government				FY16 FY17 FY18+ Guaranteed		Sep-05	Sep-06		Sep-07		Sep-08	Sep-09	Sep-10	Sep-11	Sep-12	Sep-13
		Covered Bonds						Subordinated
		Issuance since 1-Oct-12
												43

Recent issuance has been well diversified supporting a sustainable wholesale debt ortfolio p

Term Debt Issuance Term Debt Outstandings

Weighted avg. Weighted avg. tenor : 4.0 yrs tenor : 4.7 yrs

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10% 12% 13% 13% 13%
24% 6.6yrs
18%
21%
30% 26%
41%
68%
35% 3.9yrs
35% 31%
33%
30%
23%
41% 4.2yrs 34% 35%
32% 26% 28% 28%
FY08 FY12 Sep 08 Sep 09 Sep 10 Sep 11 Sep 12
Domestic North America Europe Asia
AUD/NZD
Foreign Currency - Senior Unsecured/Subordinated
Foreign Currency - Covered Bonds
Excludes FY13 pre-funding 44
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Lower structural funding gap provides funding flexibility

	ANZ	Westpac	NAB	CBA
Loan – Deposit Ratio (%)	130%	158%	152%	141%
Loan – Deposit Gap ($b)	100	186	165	156
Australia Household Funding Gap ($b)	112	193	124	171

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Australian Household Funding Gap
AUDb
200
150
100
50
2007 2008 2009 2010 2011 2012
ANZ Westpac NAB CBA
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ANZ has built a sustainable balance sheet

Having the lowest wholesale funding requirement enables ANZ to :
Reduce reliance on offshore short term funding markets
Limit benchmark issuance in offshore markets
Maintain a consistent & sustainable funding program
Provide flexibility in issuance timing
Stable AA category credit ratings across all major rating agencies despite ongoing bank ratings downgrades

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Source: APRA (Aug 12) and latest bank published financial statements

Liquid assets of $115b provides a high level of coverage and si nificantl exceeds total offshore debt outstandin g y g

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AUDb 115
Liquidity portfolio exceeds total FY13
wholesale debt maturities and entire
91 38 offshore debt portfolio
81
75 75
31
19
15
31
13
9
62 62
47
35
Sep 10 Sep 11 Sep 12 Wholesale Debt Total Offshore
Securities Debt Securities
Maturing in FY13
Internal RMBS Offshore Short Term Debt
Private Sector Securities & Gold Offshore Term Debt
Cash, Government &
Semi-Government Securities
46
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Hedging has negated the impact on earnings of sustained $A strength

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FY12 Earnings Composition by Currency EPS Impact from Hedging
Non AUD & NZD
20% 0.8%
Hedges in place
for ~50% FY13
TWD
earnings MYR
PGK 0.4%
Other
IDR
CNY
USD
AUD 62% -0.1%
NZD 18%
-0.4%
Hedges in place
for ~60% FY13
earnings 2H12 HOH FY12 YOY
Inclusive of Hedging Unhedged
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack Risk Management

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Credit quality in line with expectations

Credit Quality Trends

The provision charge of $1.25 billion was broadly in line with last year, albeit the mix of collective and individual provisions differed
ANZ remains appropriately provided for with the total provision coverage ratio at 1.78% and the collective provision ratio at 1.08%
Gross impaired assets reduced 7% YOY and 3% HOH
New impaired assets declined 22% HOH
All divisions saw HOH decreases in new impaired assets with the exception of Australia, with increases predominantly in regional agri-business
Increased individual provisions reflected losses associated with two large single names. Management overlays have been released in relation to these movements as the rest of the portfolio is now less concentrated

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Provision Charge
$m Collective provision Charge
Individual Provision Charge
Total Provision Charge as % Avg. net Advances
2,000 1.60%
1,750 1.40%
1,500 1.20%
1,250 1.00%
1,000 0.80%
750 0.60%
500 0.40%
250 0.20%
0 0.00%
-250 -0.20%
Impaired Assets
$m
Gross Impaired Assets New Impaired Assets
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12
1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12
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Exposure composition by Geography and Asset Class

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Exposure at Default by Geography Exposure at Default by Basel Asset Class
(Sep 2012) (Sep 2012)
Singapore Corporate & Sovereign
Pacific Specialised Lending
Hong Kong
4% Bank Residential Mortgage
1%
3% Americas UK
Other South East Asia 3% Europe& [1] QRR Other retail
3%
New 3%
Other North Asia & Zealand 37%
East Asia
Pacific
2% 13% 16%
5% 10%
3%
Australia
7%
65%
39%
1. Inclusive of exposure booked to large multi-nationals doing business
in Asia-Pacific
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Control Lists and Risk Grade Profiles

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BB+ and lower rated exposures by
Control List
Exposure at Default
Control List by Limits Control List by No. Groups
Index Sep 2008 = 100 29%
300 28%
250 27%
26%
200
150 24% 23%
100
50 13%
0 13%
12%
12%
12%
11%
Group Risk Grade profile by
Exposure at Default
9% 9%
8% 8%
7% 8%
59% 58% 60% 61% 61% 62%
13% 14% 14% 13% 15% 14% 6% 6% 6% 6%
13% 13% 12% 12% 12% 11% 5% 5%
9% 9% 8% 8% 7% 8%
6% 6% 6% 6% 5% 5%
Mar 10 Sep 10p Mar 11 Sep 11p Mar 12 Sep 12p Mar 10 Sep 10p Mar 11 Sep 11p Mar 12 Sep 12p
AAA to BBB BBB- BB+ to BB BB- <BB- BB+ to BB BB- <BB-
Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12
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Continued improvement in Credit RWA rate

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Exposure at Default and Credit Risk Weighted Assets
Exposure at Default ($b) Credit Risk Weighted Assets ($b) CRWA / EAD (%)
658
47%
630
615
45% 564
552 550
522
512
42%
42%
41%
40%
40%
39%
258 249 250 255
230 234 233
220
1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12
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Risk Weighted Assets

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Total Risk Weighted Assets
Total Risk Weighted Assets ($b)
Movement FY12 v FY11 ($b)
Market & Operational Risk Weighted Assets
280.0 6.0 5.6 8.5 300.1
Credit Risk Weighted Assets
300
285
280
45
264 264 35 Sep 11 Credit Risk Market Operational Sep 12
31
Risk Risk 1
249
31 31
29 Total Risk Weighted Assets
Movement by Division FY12 v FY11 ($b)
10.0 2.2 0.2 300.1
280.0 7.7
255
249 250
234 233
220
Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Sep 11 Australia IIB NZ GWPB Sep 12
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Driven by improvements to operational risk capital model

Credit Risk Weighted Assets

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Credit Risk Weighted Assets
Credit Risk Weighted Assets ($b)
Movement FY12 v FY11 ($b)
Credit Risk Weighted Assets 14.2 254.9
248.8
Collective Provision as a % of CRWA (1.7) (2.8) (3.6)
1.38%
1.32% 1.35% [1.36%]
1.28%
1.20%
1.06% 1.08%
Sep 11 Growth Data FX Risk Sep 12
Review Impact
258 249 250 255
230 220 234 233 Credit Risk Weighted Assets
Movement by Division FY12 v FY11 ($b)
248.8 4.2 1.4 0.1 0.4 254.9
Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Sep 11 Australia IIB NZ GWPB Sep 12
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Impaired Assets by Division

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New Impaired Assets Net Impaired Assets
$m
$m
3,500 6,000
3,126
4,969
3,000
5,000 4,685
4,504
2,436
2,500 2,319 2,335 3,884
4,000 3,629
3,423
2,000 1,824 1847
3,000
1,500
2,000
1,000
1,000
500
0 0
1H10 2H10 1H11 2H11 1H12 2H12 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12
Institutional Australia New Zealand Other Institutional Australia New Zealand Other
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Gross Impaired Assets

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Gross Impaired Assets by Type Gross Impaired Assets by Size of Exposure
Impaired Loans NPCCD Restructured > $100m $10-$99m < $10m
$m $m
8,000 8,000
7,000 6,561 6,561 7,000 6,561 6,561
6,221 6,221
6,000 5,581 6,000
5,581
5,343
5,196 5,343 5,196
5,000 5,000
4,000 4,000
3,000 3,000
2,000 2,000
1,000 1,000
0 0
Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12
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Individual Provision Charge

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Individual Provision Charge
by Segment
$m
1,200
1,062
1,000
912
762
800 717
609
594
600
400
200
0
1H10 2H10 1H11 2H11 1H12 2H12
Institutional Commercial Consumer
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Individual Provision Charge
composition
$m
1,500 1,062 912
762 609 717
594
1,000
500
0
-500
1H10 2H10 1H11 2H11 1H12 2H12
New Increased Writebacks & Recoveries
Individual Provision Charge
by Region
$m
1,200 1,062
912
1,000
762
717
800
594 609
600
400
200
0
1H10 2H10 1H11 2H11 1H12 2H12
Australia New Zealand APEA
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Collective Provision Charge

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Collective Provision Charge by Source
$m
500
(96) 331 36 (40) 65 (58) (152) (226)
400
300
200
100
0
-100
-200
-300
-400
1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12
Lending Growth Net Economic Cycle & Concentration Risk Profile Portfolio Mix
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Collective Provision Charge by Source

FY12 ($m)	Risk Impact	Lending Growth	Portfolio Mix	Economic Cycle & Concentration	Total
Australia Division	10	53	(22)	(79)	(38)
International & Institutional Banking	(198)	90	10	(201)	(299)
New Zealand Businesses	(6)	4	(1)	(42)	(45)
Global Wealth & Private Banking Division	(3)	1	1	0	(1)
Other	0	0	0	5	5
Total	(196)	148	(12)	(318)	(378)

2H12 ($m)	Risk Impact	Lending Growth	Portfolio Mix	Economic Cycle & Concentration	Total
Australia Division	1	30	(13)	(44)	(27)
International & Institutional Banking	(27)	38	3	(198)	(184)
New Zealand Businesses	5	6	(1)	(29)	(19)
Global Wealth & Private Banking Division	(1)	0	0	0	(1)
Other	0	0	0	4	4
Total	(22)	74	(11)	(267)	(226)

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Collective Provision Balance

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Management overlay balance movement
Collective Provision Balance ($m)
2H12 v 1H12 ($m)
Modelled CP Charge Management overlay
862
3,500
44
3,000
2,500
6 597
198
2,000 29
1,500
1,000
500
0
1H12 Australia IIB NZ Other 2H12
1H10 2H10 1H11 2H11 1H12 2H12
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Impaired Asset Concentration

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Impaired Assets Concentration Impaired Assets Concentration
by number of Customers by value of Impaired Assets
Exposures >$10m Exposures >$10m
4% 3% 3% 3%
4% 2% 3% 4%
19% 16% 11% 26.7% 22.4% 23.9%
31.1%
20%
4.7% 11.4%
16.3%
11.2%
31.3% 27.4%
17.6%
28.3%
82%
76% 78%
72%
42.2%
37.3% 38.8%
29.4%
Sep 10 Sep 11 Mar 12 Sep 12 Sep 10 Sep 11 Mar 12 Sep 12
10-50m 51-100m 101-200m >200m 10-50m 51-100m 101-200m >200m
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Total lending exposures by Industry Sector

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|||||||
|---|---|---|---|---|---|
|Exposure at default (EAD)|% in Non|
|Category|EAD|
|as a % of group total|Performing|
|Sep-11|Sep-12|Sep-11|Sep-12|
|Consumer Lending|43.6%|41.0%|0.3%|0.3%|
|15%|Finance, Investment &|14.5%|14.9%|0.3%|0.5%|
|Insurance|
|8%|
|Property Services|7.1%|7.5%|1.9%|1.6%|
|6%|Manufacturing|5.9%|6.0%|1.9%|1.2%|
|Agriculture, Forestry,|
|4.5%|4.5%|4.4%|3.9%|
|5%|Fishing|
|Government & Official|
|4%|4.4%|4.2%|0.0%|0.0%|
|Institutions|
|4%|Wholesale trade|3.2%|3.9%|0.8%|0.6%|
|41%|
|3%|Retail Trade|2.6%|2.9%|0.7%|0.9%|
|2%|
|Transport & Storage|2.1%|2.3%|0.7%|3.2%|
|2%|
|2%|Business Services|1.8%|2.0%|1.1%|0.9%|
|2%|
|2%|
|6%|Electricity, Gas & Water|1.7%|1.8%|0.0%|0.2%|
|Supply|
|Construction|1.6%|1.7%|4.5%|1.4%|
|Resources (Mining)|1.5%|1.6%|0.1%|0.2%|
|Other|5.5%|5.7%|0.1%|0.1%|

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Manufacturing

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Risk Rating Profile
(% of EAD)
42%
48%
57%
22%
26%
17% 30%
13%
14%
9%
10%
3% 5% 3%
1%
Group Australia APEA
p p p
AAA to BBB BBB- BB+ to BB BB- <BB-
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Total Exposure by Geography (EAD)
$b
40
30
20
10
0
Sep-10 Sep-11 Sep-12
APEA Australia New Zealand
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Exposure Mix by Geography (EAD)
16% 14% 11%
41%
43%
49%
43% 48%
35%
Sep-10 Sep-11 Sep-12
APEA Australia New Zealand
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Resources

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Resources Total Committed Exposure (EAD) Resources Exposure by Geography (EAD)
$b
12
10
8
6
13%
4
23% 2
0
Sep 10 Sep 11 Sep 12
18% Australia Non-Australia
Resources Exposure by Geography (EAD)
18%
Includes Iron Ore 7%
5% Australia
15%
28%
New Zealand
62%
18% Asia
Oil & Gas Coal
Metal Ore Mining Services
Europe, America,
Pacific & Other
Other
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Commercial Property Credit Exposure

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Commercial Property Exposure Commercial Property Exposure
GLA by Region by Sector: Australia
$b
35 8.0%
Offices
28%
30.0 30.0
29.3 Retail
7.8%
30 28.2 27.8
26.1 3.4 3.4 Residential
0.8 3.1 28%
1.1
1.0 7.6% 25% Industrial
25
6.1 5.8 5.0 4.9 5.0
Tourism
5.2
7.4%
2% 14%
20 Other
3%
7.2%
15
Exposure to REITs, Listed Property
7.0%
Companies and/or their subsidiaries
10 21.3 19.9 20.8 21.3 21.7 21.6
6.8%
Exposure to
5
6.6% REITs, listed
Other
property
Commercial 68% 32% companies
0 6.4%
Property and/or their
Sep-08 Sep-09 Sep-10 Sep-11 Mar-12 Jun-12 subsidiaries
Australia New Zealand
APEA As a % of Group GLA's
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Australia 90+ day delinquencies

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

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Commercial Australia Security Cover
42% 42% 43%
46%
49%
24% 23% 23%
27%
26%
10% 11% 11%
10% 10% 5% 5% 5%
4%
4%
19% 19% 18%
13% 11%
Sep-10 Mar-11 Sep-11 Mar-12 Aug-12
<40% 40%-59% 60%-79%
80%-99% >100%
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Exposure at default (EAD)
by industry sector (%)
13.5%
5.8%
8.4%
16.5%
5.7%
4.9%
4.1%
15.9%
2.0%
3.3%
1.3%
17.9%
0.6%
Property Services Agriculture, Forestry & Fishing
Retail Trade Business Services
Construction Manufacturing
Wholesale Trade Accommodation, Cafes & Restaurants
Health & Community Services Transport & Storage
Finance & Insurance Mining
Other
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Australia Division – Mortgages

Portfolio Statistics	Portfolio Statistics
Total Number of Mortgage Accounts	848k
Total Mortgage FUM	$182b
% of Total Australia Region Lending	60%
% of Total Group Lending	43%
Owner Occupied Loans - % of Portfolio	63%
Average Loan Size at Origination	$262k
Average LVR at Origination	64%
Average Dynamic LVR of Portfolio	52%
% of Portfolio Ahead on Repayments1	49%
First Home Owners - % of Portfolio	9%
First Home Owners - % of New Lending	8%

Mortgages have low loss rates

Individual Provision Loss Rates	Individual Provision Loss Rates	Individual Provision Loss Rates	Individual Provision Loss Rates	Individual Provision Loss Rates	Individual Provision Loss Rates	Individual Provision Loss Rates
	1H10	2H10	1H11	2H11	1H12	2H12
Group	0.62%	0.42%	0.32%	0.31%	0.36%	0.43%
Australia Mortgages	0.02%	0.01%	0.01%	0.03%	0.03%	0.02%

Dynamic Loan to Valuation Ratio

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% Portfolio
60% Portfolio >90% LVR
50% = 5% (Sep-12)
40%
30%
20%
10%
0%
0-60% 61-75% 76-80% 81%-90% 91-95% 95%+
Sep 10 Mar 11 Sep 11 Mar 12 Sep-12
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Mortgage Portfolio by State (Sep 2012)

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29% NSW & ACT
16%
QLD
VIC
10%
19%
WA
26% Other
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One month or more ahead of repayments. Excludes funds in offset accounts.

New Zealand Businesses

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Net impaired assets Total provision charge
NZDm NZDm
1.89% 351
400
300
165 119
1.63% 200 98 102 89
1.49% 100
0
1.31% 1.34%
-100
1H10 2H10 1H11 2H11 1H12 2H12
1.09%
IP Charge CP Charge
1,669
90+ Days arrears
1,442
1,298
1,153 1,165 1.20% Mortgages Commercial1 Rural
985
0.80%
0.40%
Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12
0.00%
Net Impaired Assets NIA as % GLA 2007 2008 2009 2010 2011 2012
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Spikes in 2012 Commercial 90 day delinquencies are primarily due to internal classifications rather than any deterioration in underlying credit quality.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Divisional Performance Australia Division

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We‟re transforming the business to adapt to the changed banking environment

Domestic challenges

Meeting changing customer expectations

Customers want:
Greater mobility and flexibility around their banking
Better customer experience
Greater understanding of their needs and targeted offerings

Greater need for productivity

Slower volume environment increases the need for simple products and processes to lower the cost to serve

Increased competition for liquidity

Post FY08, deposits have increased from approximately 50% to 61% of funding

ANZ Response

Initiated productivity agenda focused on „rightsizing‟ the business and reducing cost to serve

Expenses down 1% HOH
Despite slowing revenue environment, we‟ve maintained CTI at ~40% to 41% since FY09

Disciplined management of pricing, discounting and balance sheet composition

Self funding the loan book
Focus on service and empowering our customers rather than be a price leader

Implemented customer segment strategy targeting high value customer segments in both Retail and Commercial

Grown share of wallet and increased market share in traditional banking
Above system growth in household and business lending and household deposits

Challenging macro-economic dynamics

Slower economic growth leading to lower credit growth
Weaker consumer confidence
Margin erosion (i.e. increased funding costs)

Increased regulation

Changing capital requirements
Higher compliance costs

Launched the “Banking on Australia” investment program

Simplifying the way we do business
Branch Network Reconfiguration
Digital and mobile channels lower cost to serve and create additional revenue opportunities
Improving sales effectiveness and lowering cost to serve in our Commercial business
Investing in customer understanding & insight to improve targeting

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We are making good progress on our strategic agenda

1. Targeting high-value customer segments with tailored banking propositions

Retail Traditional Banking Market Share[1]

Market share gains in traditional banking, affluent and household deposits and lending

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(%) Market share – Traditional Banking
ANZ Peer 1 Peer 2 Peer 3
162322
152211
1421
13
12
11
10
Jul-10 Jan-11 Jul-11 Jan-12 Jul-12Aug-12
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Continuing to grow share of wallet and focusing on higher value retail and commercial segments

2. Leveraging our super-regional strengths

The only Australian bank with the ability to connect customers across Asia, New Zealand and Australia
Becoming the bank of choice for migrant customers

3. Good traction on the Banking on Australia agenda

46 new look branches to be completed by end of 2012 as part of 5 year branch refurbishment program
Roll out of Cisco videoconferencing to 44 rural and remote branches by end of 2012
ANZ goMoney continues to be a recognised leader in mobile banking applications

Retail Traditional Banking Share of Wallet[1]

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(%) Share of Wallet – Traditional Banking
65.0 ANZ Peer 1 Peer 2 Peer 3
60.0
55.0
50.0
45.0
Jul-10 Jan-11 Jul-11 Jan-12 Jul-12Aug-12
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Launched ANZ FastPay - processes same day credit and debit card transactions using an iPhone or iPad

4. Achieving market recognition

Awarded Money Magazine‟s Bank of the Year and Home Lender of the Year and Capital CFO‟s Business Bank of the Year

5. Delivering strong 2H12 and FY12 outcome

Underlying profit up 10% HOH and 4% YOY
Positive Jaws in 2H12 and FY12 with expenses down 1% HOH
Net interest margin recovery in 2H12

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Credit quality sound in both Retail and Commercial
Source: Roy Morgan Research: Aust Pop‟n aged 14+, rolling 12 months, Trad Banking Consumer Market (Deposits, Cards & Loans), Peers: CBA (excl Bankwest), NAB, Westpac (excl Bank of Melbourne & St George)

Australia Division – Financial performance

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Australia division: Underlying profit [1] Retail: Underlying profit [1]
$m $m
1,500 1,385 1,417 [1,475 ]
3,000
1,000
815
730
2,492 692 660
2,500 2,297 [2,390 ] 500
0
2,000 FY10 FY11 FY12 1H11 2H11 1H12 2H12
1,500 Commercial: Underlying profit [1]
1,268 1,305
1,134 1,187
$m
1,000 1,500
912 973 [1,017 ]
1,000
500
538 531 486
442
500
0 0
FY10 FY11 FY12 1H11 2H11 1H12 2H12 FY10 FY11 FY12 1H11 2H11 1H12 2H12
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Statutory profit is adjusted to exclude certain non-core items to arrive at underlying profit

Australia Division – Financial performance

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Underlying NPAT movement – FY12 v FY11
$m
142 9 53
2,492
57 45
2,390
Up 4%
FY11 Net Other Expenses Provisons Tax and FY12
Interest Income OEI
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Underlying NPAT movement – 2H12 v 1H12
$m 19
22
176
1,305
48
51
1,187
Up 10%
1H12 Net Other Expenses Provisons Tax and 2H12
Interest Income OEI
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Australia Division – Net Interest Margin

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Net Interest Margin
$m %
3,700 2.65
3,600
2.60
3,500
2.55
3,400
2.50
3,300
2.45
3,200
2.40
3,100
3,000 2.35
1H10 2H10 1H11 2H11 1H12 2H12
Revenue (LHS) NIM (RHS)
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Net interest margin has declined since 1H10, primarily impacted by:
Deposit margins adversely impacted by increased competition for deposits driven by regulatory and funding requirements
Deposit mix impact with increasing customer preference for term deposit and on-line offerings
Increased average cost of term wholesale funding
1H12 margins negatively impacted by widening of short term wholesale spreads, which have improved in 2H12
2H12 operating income up 6% and NIM up 4 bps driven by tighter margin management offset by increased funding costs, in particular deposit costs remain elevated
Pressure on margins likely to continue in FY13, however ongoing margin management is expected to offset headwinds

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Australia Division - Building greater productivity into our business

Strategy

Sustainable cost reduction through strategic transformation and simplification initiatives
Digital online and mobile channels
Branch network reconfiguration
Product simplification and improvement
Automation of manual processes
Right-sizing our enablement functions for the current environment
Better alignment of organisational structures between individual businesses
Use of regional support hubs
While at the same time generating additional revenue streams through a broader range of sales and servicing activities via digital and retail distribution channels and cross-sell

Outcomes 2012

Implemented initiatives to deliver productivity savings via task elimination & automation, process improvement, better workforce management and improved queue management
Absorbed a 14% increase in volumes and tasks for Australian Operations in FY12 while maintaining SLA‟s and reducing costs by 4%
Monthly customer complaints down 4% in FY12

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Australia Division
Cost to Income Ratio (%)
48%
Peer High
46%
44%
Peer Average
42%
ANZ Average
ANZ
40%
Peer Low
Note: Seasonality in
ANZ 1H cost growth
38% due to annual salary
increases
36%
1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12
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Australia Division – Operating Income and Expenses

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Operating income movement FY12 v FY11
$m
265
426
12 7,118
6,967
553
Up 2%
FY11 Volume Asset Pricing Funding Costs Other FY12
Operating expenses movement FY12 v FY11
$m
60
2,893
35
39
2,836
Up 2%
FY11 Personnel Projects & Other FY12
Restructuring
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Australia Division – Operating Income and Expenses

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Operating income movement HOH
$m
226
105 18 3,658
115
3,531 8 163
3,460
156 12
Down 2% Up 6%
2H11 Volume Asset Pricing Funding Other 1H12 Volume Asset Pricing Funding Other 2H12
Costs Costs
Operating expenses movement HOH
$m
39
1,456
12 1,437
1,427 22 7
8 3
Up 2% Down 1%
2H11 Personnel Projects & Other 1H12 Personnel Projects & Other 2H12
Restructuring Restructuring
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Retail – Delivering a distinctive customer proposition and transforming the distribution network

1. Delivering tailored offerings across banking targeting high value customer segments

Household Lending Growth[1]

Customer segment strategy focusing on Young Money, Professionals and Executives, Affluent 50+, International and Small Business owners

Indexed Mar 2010 = 100

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140
ANZ CBA NAB WBC
130
120
110
100
90
Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Aug-12
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Traditional Banking market share up 0.6% to 13.7% (12 months to Aug 2012)[2]
Affluent Traditional Banking market share up 0.7% to 14.9% (12 months to Aug 2012)[2]
Above system growth in household lending (1.2x system) and household deposits (1.2x system)

2. Transforming the distribution network through branch reconfiguration and development of mobile and digital capabilities

Reconfiguring the distribution network, including branches, to deliver improved customer experience and cost efficiency

Household Deposit Growth[1]

Indexed Mar 2010 = 100

Developing online and mobile digital channels to meet customer expectations for greater mobility and flexibility around their banking

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140
ANZ CBA NAB WBC
130
120
110
100
90
Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Aug-12
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3. Delivering a distinctive Retail customer proposition through greater understanding of customer needs and targeted offerings

Investing in analytic capabilities to drive greater customer insight and better address customer needs
Delivering targeted customer offers aligned to customer needs and preferences
Simplifying products and processes to make things easier for our customers and people

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Source: APRA
Source: Roy Morgan Research: Aust Pop‟n aged 14+, rolling 12 months, Trad Banking Consumer Market (Deposits, Cards & Loans), Peers: CBA (excl Bankwest), NAB, Westpac (excl Bank of Melbourne & St George) 79

Retail – Financial performance

Underlying NPAT movement – FY12 v FY11

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$m
4
83 36
1,475
27
38
1,417
Up 4%
FY11 Net Other Expenses Provisons Tax and FY12
Interest Income OEI
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Net interest income increased by 2% YOY through growth in mortgage lending and margin management, partially offset by the impact of declining deposit margins and higher funding costs
NIM reduced by 12 bps due to increasing deposit costs
Expense growth was contained to 2% with the impact of annual salary rises, inflation and project investment being offset by productivity initiatives
Provision expense was down 9% driven by improved delinquency trends in the mortgages portfolio and the release of surplus collective provisions

Underlying NPAT movement – 2H12 v 1H12

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$m
20 5
175
15 815
60
660
Up 23%
1H12 Net Other Expenses Provisons Tax and 2H12
Interest Income OEI
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Net interest income increased by 10% in the half primarily due to margin improvement and above system growth in household lending
1% reduction in costs for the second half with benefits emerging from productivity program
NIM improved by 4bps in the half due to management of pricing, discounting and balance sheet composition
Provision expense reduced by 8% due to improved delinquency trends and the release of surplus collective provisions

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Retail – Balance Sheet

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Customer Lending Customer Deposits
$b $b
3.6 0.2 192.7 4.7 0.1 97.6
189.4 0.5
1.0
91.9
180.7
87.3
Sep 11 Mar 12 Mortgages Other Sep 12 Sep 11 Mar 12 Deposits Other Sep 12
Lending
Consumer
cards & Unsec. Mortgage Offset
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Retail – Branch network reconfiguration: improving customer experience and lowering cost to serve

Re-defining the retail customer experience with technology enabled, open plan branches…

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Branch: York & Market, Sydney

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New generation intelligent ATM‟s with greater functionality

A new branch design with sales capabilities aligned to changing customer demand
Becoming centres of advice for complex customer needs, as everyday transaction numbers decline
Greater access to specialists through use of inbranch video conferencing facilities
Roll out of Cisco videoconferencing to 44 rural and remote branches by end of 2012
Branch footprint designed to maximise sales capability and incorporate new technologies
Reduce excess space in our branch property portfolio by approximately 36%
25% reduction in property expenses expected over time
800 „next generation‟, deposit taking ATMs to be rolled out to branches commencing June 2013 allowing 24/7 access to many traditional teller services
Providing access to simple wealth products to meet customer needs
Initial rollout to 200 branches by end of 2012

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Retail – Right sizing our branches and increasing sales capability

A circa 5 year program, 46 branches to be completed in Calendar 2012
Align our branch footprint to changing customer demand and improve productivity (more complex activities performed in branch, better customer discussion facilities, etc.)
Right sizing our branches, improving the proportion of usable floor space (significant reduction in back of house space requirements) and moving to a more flexible layout
In tandem with an improving online and digital offering

Example of improved space utilisation Metro/ Suburban Branch Net lettable area ↓ c.40% Back of house requirement ↓ c.70% Consulting room and sales points ↑

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Branch: Booragoon, Western Australia

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Retail – Developing new channels in line with shifting customer preferences

Intuitive next generation online platforms…

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Growing customer preference for self-service channels with digital transactions accounting for more than 64% of all ANZ transactions processed
Generating additional revenue streams through greater functionality and cross-sell opportunities while lowering the cost to serve
ANZ goMoney a recognised leader in mobile banking applications
Over 780,000 registered users
30 million transactions totalling $17 billion conducted in the past 12 months (Sep 2012)
Available on up to 5 simultaneous devices

… and peer-leading mobile platforms

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Android version launched in September 2012
Enhanced Internet Banking functionality allows customers to do more of their banking without the involvement of branches or call centres
Includes travel notifications, adding Cardholders, eStatements
359 million transactions totalling $600 billion have been conducted over the past 12 months (Sep 2012)
Trialling ANZ mobile wallet using NFC technology on Android devices

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Retail – Mortgages

Portfolio Statistics	Portfolio Statistics
Total Number of Mortgage Accounts	848k
Total Mortgage FUM	$182b
% of Total Australia Region Lending	60%
% of Total Group Lending	43%
Owner Occupied Loans - % of Portfolio	63%
Average Loan Size at Origination	$262k
Average LVR at Origination	64%
Average Dynamic LVR of Portfolio	52%
% of Portfolio Ahead on Repayments1	49%
First Home Owners - % of Portfolio	9%
First Home Owners - % of New Lending	8%

Mortgages have low loss rates

Individual Provision Loss Rates	Individual Provision Loss Rates	Individual Provision Loss Rates	Individual Provision Loss Rates	Individual Provision Loss Rates	Individual Provision Loss Rates	Individual Provision Loss Rates
	1H10	2H10	1H11	2H11	1H12	2H12
Group	0.62%	0.42%	0.32%	0.31%	0.36%	0.43%
Australia Mortgages	0.02%	0.01%	0.01%	0.03%	0.03%	0.02%

Dynamic Loan to Valuation Ratio

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% Portfolio
60% Portfolio >90% LVR
= 5% (Sep 12)
50%
40%
30%
20%
10%
0%
0-60% 61-75% 76-80% 81%-90% 91-95% 95%+
Sep 10 Mar 11 Sep 11 Mar 12 Sep-12
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Mortgage Portfolio by State (Sep 2012)

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29% NSW & ACT
16%
QLD
VIC
10%
19%
WA
26% Other
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One month or more ahead of repayments. Excludes funds in offset accounts.

Retail – Mortgages by channel

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Sales mix
45%
49% 51% 49%
54% 54%
63%
55%
51% 49% 51%
46% 46%
37%
2H09 1H10 2H10 1H11 2H11 1H12 2H12
Broker Proprietary
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Strengthening the sales capability of our network as part of the Banking on Australia program
New automated mortgages platform largely rolled out across the network
Broker originated mortgages remain an important channel and deliver a high proportion of new-to-bank and affluent customers

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Portfolio mix
62% 61% 59% 58% 57% 56% 54%
38% 39% 41% 42% 43% 44% 46%
2H09 1H10 2H10 1H11 2H11 1H12 2H12
Broker Proprietary
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Source: APRA

Commercial – Leveraging our regional footprint and rowin the customer base g g

1. Growing through customer acquisition and increased cross-sell

Cross-sell income

Focusing on acquiring new-to-bank customers
Targeting trading businesses with more complex, cross-regional needs
Acquired 30k net new clients in FY12
Enhancing product and distribution propositions to increase cross-sell opportunities
Institutional cross-sell revenue up 25.1% YOY
Mortgages cross-sell revenue up 12.6% YOY
Investment and insurance cross-sell revenue up 27.7% YOY
Increased lending and deposit FUM by 9% YOY

2. Leveraging our regional footprint and capabilities to meet customer needs

Working closely with customers to provide better connections across the region
Increased cross border referrals by 40% YOY

3. Improving productivity and customer experience

Streamlining processes to provide more time with customers

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Strong cross-sell revenue growth
24% increase
786
712
636
+12%
+3%
FY10 FY11 FY12
Product cross-sell revenue from other ANZ businesses ($m)
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Awarded Business Bank of the Year 2012

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Based on performance against the following criteria:

Relationship management
Advice
Deal execution
Client satisfaction
Market share and penetration

Business Bank of the Year

  - League table positions

AFR Capital CFO Awards 2012
Investing in online and mobile platforms to deliver convenient and innovative banking solutions

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Commercial – Capitalising on our super regional capabilities

1. Increased client awareness of our super regional strengths and upskilled staff

Demonstrated our leading renminbi (RMB) capabilities to 700 customers and staff across 6 states
Up-skilled 600 frontline staff across 5 cities and provided 80 bankers with hands-on experience in key Asian markets

2. Better connecting our customers across the region

Increased cross-border referrals by 69% since 1H11 and 40% YOY
Developed a standard global credit framework and principles providing customers with agile and timely cross border credit

3. Recognised by government entities for our leading capabilities across Asia

Chosen by Victorian Government Trade Mission to provide participants with local insights on doing business and banking with China and India

4. Extending markets and trade product capability to our medium and small business clients

Trade Finance revenue generated by Commercial clients up 20% YOY
Global Markets revenue generated by Commercial clients up 40% YOY

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Cross-border referrals
69% increase 579
505
431
342
1H11 2H11 1H12 2H12
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Sources of cross-border referrals

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Asia
New Zealand
31%
19%
Other
5%
Pacific
1%
Australia
44%
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Commercial – Improving productivity and customer experience

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ANZ OneSwitch has simplified customer onboarding

649 applications since launch

Intelligent use of technology driving improved customer experience

Enhancing frontline sales productivity by simplifying processes and systems to provide more time with customers
Simplified customer on boarding with ANZ OneSwitch - 1 form, 1 signature, 1 week, 1 point of contact
Using technology to enhance customer experience and offer greater control
On site needs analysis via tablet technology
ANZ Fastpay – „on the go‟ merchant transactions via iPad or iPhone
ANZ Transactive mobile app - „on the go‟ banking app for business customers

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Using tablet technology to enhance sales process

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Creating applications to deliver convenient banking solutions

Engaging with customers through social media platforms (Twitter, LinkedIn and the Small Business Hub)
Fostering innovation by assisting prospective small business owners fast-track their development („ANZ Innovyz START Program‟)

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Commercial – Financial performance

Underlying NPAT movement – FY12 v FY11

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$m
65 5 17
1,017
973 24 19
Up 5%
FY11 Net Other Expenses Provisons Tax and FY12
Interest Income OEI
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Net interest income up 3% YOY driven by balance sheet growth and margin management, partially offset by lower margins on deposits
3% expense growth from salary increases and investment in projects, partially offset by a reduction in FTE and productivity initiatives
Neutral JAWS. Cost to Income ratio flat YOY at 34.2%
Provisions down 6% with a reduced provision charge (release of $54m in FY12 of surplus flood provisions raised in March 2011) offset by lending growth and impact of current economic environment.

Underlying NPAT movement – 2H12 v 1H12

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$m
531 1 3 1
15 486
63
Down 8%
1H12 Net Other Expenses Provisons Tax and 2H12
Interest Income OEI
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Net interest income flat with asset repricing and volume growth (lending growth of 5%, deposit growth of 6%) offset by deposit margin declines
Expenses flat reflecting benefits of restructuring activities and a continued focus on driving productivity savings
Provisions up 57% HOH driven by an increase in individual provisions reflecting softer economic conditions across a number of sectors, partially offset by the release of surplus flood provisions

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Commercial – Balance Sheet

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Customer Lending Customer Deposits
$b $b
0.0 52.0
0.3
0.8 43.2
1.0
0.6 1.0
0.9
40.8 0.4
49.3
39.7
0.0
47.8
Lending composition (Sep 12) Deposit composition (Sep 12)
Regional Commercial
27% 27% Regional Commercial
Banking
Banking
Business Banking
30% Business Banking
Small Business Banking 41%
32% 32%
Small Business Banking
10% Esanda
Sep 11 Mar 12 Esanda Business Banking Small Business Banking Other Sep 12 Sep 11 Mar 12 Esanda Business Banking Small Business Banking Sep 12
Regional Banking Regional Banking
Commercial Commercial
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– Commercial Provisions

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Provision charge
$m
Total provision charge ($m)
250 1.00%
192 107 110 173
0.90%
200
0.80%
150
0.70%
0.60%
100
0.50%
50
0.40%
0.30%
0
0.20%
-50
0.10%
-100 0.00%
1H11 2H11 1H12 2H12
Flood provision
Collective Provision ex-flood provision
Individual provision (LHS)
Total provision charge (ex-flood release) as % of NLA's (RHS)
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Increased provision charge reflects increased lending volume in addition to softening of economic conditions across a number of sectors
The provision charge for 2H12 was primarily driven by an increase in individual provisions
Circa 35% or $62m of the 2H12 individual provision related to Regional Commercial Banking reflecting pressure in Agribusiness sector mainly QLD and NT
Collective provision overlay relating to flood provision taken up in 1H11 has now been fully released
While the portfolio remains well secured, the economic recovery following the floods has been slower than expected

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Commercial – Total lending exposures by sector

Exposure at default (EAD) by industry sector (%)	Category	EAD	EAD	EAD	% in Non Performing	% in Non Performing	% in Non Performing

15.9% 16.5% 13.5% 5.8% 8.4% 5.7% 4.9% 4.1% 2.0% 3.3% 1.3% 0.6% 17.9%
		Sep 12	Mar 12	Sep 11	Sep 12	Mar 12	Sep 11

	Property services	15.9%	15.0%	14.7%	1.1%	1.0%	1.0%
	Agriculture, forestry & fishing	16.5%	17.0%	17.0%	6.6%	5.8%	5.0%
	Retail Trade	13.5%	14.5%	13.8%	1.3%	1.0%	1.2%
	Construction	8.4%	8.5%	8.4%	1.6%	1.6%	1.4%
	Business services	5.8%	6.0%	6.0%	1.1%	1.3%	1.3%
	Manufacturing	5.7%	5.7%	5.8%	1.8%	2.0%	2.4%
	Wholesale trade	4.9%	4.9%	4.9%	0.8%	0.8%	1.7%
	Accommodation, cafes & restaurants	4.1%	4.1%	3.8%	1.5%	1.6%	1.6%
	Heath & community services	2.0%	2.0%	1.9%	1.4%	1.6%	1.5%
	Transport & storage	3.3%	3.4%	3.6%	1.6%	1.6%	1.7%
	Finance & insurance	1.3%	1.3%	1.4%	2.2%	1.6%	1.2%
	Mining	0.6%	0.5%	0.7%	0.8%	0.9%	0.7%
	Other	17.9%	17.1%	18.0%	1.4%	1.3%	1.2%

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Commercial – Risk grade profiles

Commercial Australia Security Cover

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46%
49% 49% 49% 49%
27%
26% 26% 25% 24%
10% 10% 10% 12% 12%
4%
4% 4% 4% 4%
13% 11% 11% 11% 11%
Sep-10 Mar-11 Sep-11 Mar-12 Sep-12
<40% 40%-59% 60%-79% 80%-99% >100%
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The Commercial book is well secured with 72% of Commercial lending book being more than 80% secured
Security Indicator (SI) profiles have decreased slightly from Sep-11, reflecting underlying changes in property values
Average Customer Credit Rating (CCR) is stable YOY and has improved slightly from 1H12

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Weighted Average Customer Credit Rating
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Impaired 10
9
Weak 8
5.84
Fair 5
Strong 0
Sep-10 Mar-11 Sep-11 Mar-12 Sep-12
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Australia Division – Balance sheet

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Net Loans and Advances Deposits
$b 244.7 $b
228.5
250.0 215.0 250.0
200.0 200.0
140.8
127.0
150.0 150.0 111.0
100.0 100.0
50.0 50.0
0.0 0.0
Sep 10 Sep 11 Sep 12 Sep 10 Sep 11 Sep 12
Commercial Retail Commercial Retail
Funding
$b 11.4
12.0
18.2 2.1 4.1
2.7
104.1 103.9
101.6
90.9 6.2 1.6 10.0 6.0 10.3 3.5
Sep 09 Retail Lending Retail Deposits Comm Lending Comm Deposits Sep 10 Retail Lending Retail Deposits Comm Lending Comm Deposits Sep 11 Retail Lending Retail Deposits Comm Lending Comm Deposits Sep 12
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Australia Division – Deposits

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Customer deposit composition FY12 deposit growth
100% $b Retail Commercial
9% 9% 9%
Up 12% Up 9%
11% 11% 11% 2.3 0.3 140.8
80%
0.7 0.1
12% 13% 12% 1.9
0.3
4.6
60%
22% 23% 25% 1.6 Progress
2.0 Saver up
86% YOY
127.0
40%
Up 11%
20% 45% 44% 43% Decreased reliance
on term
deposits
0%
Sep 11 Mar 12 Sep 12
Term Deposits Other Savings Online Saver
Transaction Offset
Sep 11 Sep 12
Offset
Mortgage
Term Deposits Online Saver Other Savings Transaction Term Deposits Online Saver Other Savings Transaction
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Australia Division – Outlook

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Revenue growth
6%
3%
1%
0%
1H11 2H11 1H12 2H12
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Expense growth
4%
3%
1%
-1%
1H11 2H11 1H12 2H12
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Provision charge
$m Second Half First Half
302
278 357
355 416 309
FY10 FY11 FY12
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Revenue

Above system growth in mortgages in FY12 provides good balance sheet momentum leading into FY13
Targeting to grow lending at or above system in FY13
Disciplined management of margins in FY12 to continue in FY13 to minimise downside from funding impacts
Continuing to transform business to address revenue headwinds, including competition for deposits

Expenses

Full year effect of productivity initiatives implemented in FY12 will be reflected in FY13
However, seasonal impact of wage increases expected in 1H13

Provisions

FY12 provision release associated with flood provisions not expected to recur in FY13
Modest increase in 2H12 provisions likely to continue into FY13
Continue to be cautious and disciplined in our approach to lending and risk management

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Investor Discussion Pack International & Institutional Banking (IIB)

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International & Institutional Banking (IIB)

A new division that combines Global Institutional and Asia Pacific, Europe & America Divisions (APEA)

International & Institutional Banking Division (IIB)

Global Institutional Banking Asia Pacific, Europe & America Transaction Global Global (APEA) Banking Loans Markets Institutional Australia Retail Banking Asia Pacific Institutional New Zealand Asia Partnerships Institutional APEA (including Commercial Banking Asia Pacific)

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International & Institutional Banking – growing in line with strate gy

Super Regional strategy continues to build momentum
Growing in our priority markets
Delivering greater cross-border connectivity
With total cross-border income up 16% YOY
Client growth focussed on key strategic segments

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Income Growth FY12 v FY11
IIB Division Geographies
16% 14%
6%
2%
-2%
IIB Cross-Border Institutional Institutional APEA
Division Income 1 New Zealand Australia
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Customer Segments

Delivering growth in key investment segments
Lower cost business model allows continued investment in priority segments
Shifting business model and becoming a modern Institutional bank
Continuing to diversify income by product
Well funded, low risk balance sheet, loan to deposit ratio at Sep 2012 - 75%
42% of APEA Institutional lending book represents short-dated trade finance which grew 30% YOY

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46%
2y 2y 25%
CAGR CAGR 15%
7%
+3% +13%
-8% -8%
Agriculture Infra- Affluent & Financial Natural Commercial
structure Emerging Institutions Resources Asia
Affluent
Products
25% 25%
17%
11%
7%
-4%
Global Investments Cash Foreign Fixed Trade
Loans & Insurance Management Exchange Income & Supply
Chain
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Represents referred income booked in a jurisdiction different to where a client relationship is managed.

100

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

Cross-Border Income FY12

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Europe & America Asia Pacific Australia / New Zealand
40%
25%
13%
12%
8%
4%
Referred Received Referred Received Referred Received
Total FY12 Cross-Border Income Up 16% to $1.4b
Represents 21% of IIB Income [1]
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Total referred cross-border income as % total IIB income

101

Increasing geographic diversity and increasing contribution of value added and flow products

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Income Mix by Product Income Mix by Geography Deposit Mix by Geography
Transaction Banking
& Markets Sales
2012 2012 2012
6%
22%
14%
8%
17%
10%
35%
43% 54%
41%
2010 16% 2010 50% 2010 51%
57% 39%
34% 18%
15% 8%
29% 8%
7%
Traditional 11% 7%
Lending
Transaction Banking
Institutional Australia
Institutional Australia
Markets Sales
Markets Trading & Balance Sheet
Institutional New Zealand Institutional New Zealand
Global Loans
Retail
APEA APEA
Partnerships / Other
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102

Significant growth in APEA has been achieved against currency translation headwind

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Asia Pacific, Europe & America Asia Pacific, Europe & America
Income & Expenses (USDm) Contribution to Group Income
Income Expenses Driving 25 to 30% of Group
Income YOY JAWS +4% earnings by 2017
32% CAGR
2,878
2,514
21%
1,824
1,473 1,451 1,589
1,184 983 Australia & NZ income
716 535 643 derived from APEA [1]
348 5%
FY07 FY08 FY09 FY10 FY11 FY12
Asia Pacific, Europe & America
Net Profit after Tax (USDm)
11%
934
8%
30% CAGR 763
Asia 3%
618
521
Pacific 2% 2%
393
253 Europe &
3% 3%
America
FY07 FY12 FY17
Average
FY07 FY08 FY09 FY10 FY11 FY12 AUD/USD 0.81 1.03
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Australia & NZ income derived from APEA not available for FY07

103

Super regional strategy giving us access to growth not available from a domestic only strategy

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Institutional Operating Income Institutional Operating Income
Major Australian Banks CAGR 2H09 – 1H12
AUDb ANZ Institutional APEA
8.0 ANZ Institutional Aust / NZ
Domestic Peers
21%
7.0
FX
6.0 Adjusted
Growth
33%
5.0
3.9
4.0 4.1 3.7 3.6
4.0 3.4
3.0
2.0
2.0
1.9 1.8 1.9 2.0 1.8 1.8 0%
1.0
0.5 0.5 0.6 0.6 0.6 0.8 0.8 -1%
0.0
2H09 1H10 2H10 1H11 2H11 1H12 2H12 1
Institutional ANZ ANZ
ANZ as Businesses Institutional Institutional
38% 37% 40% 42% 41% 42%
% of Pool Domestic Peers Australia / NZ APEA
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2H12 not yet disclosed for all peers.

104

APEA franchise is a key driver of income growth

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International & Institutional Banking Global Institutional Income by Geography
Income (AUDm) Movement FY12 v FY11 (AUDm)
Institutional Australia / New Zealand 1 APEA 5,320
293
6,592
6,190
76
5,842 4,961
10
2,800
2,453
2,067
FY11 Australia New APEA FY12
Zealand
3,339 3,253 Global Institutional Income by Product
2,968 Movement FY12 v FY11 (AUDm)
203
5,320
1,366
1,435
1,197 138
103 85
3,775 3,737 3,792 4,961
1,973
1,771 1,818
FY10 FY11 FY12 2H11 1H12 2H12
FY11 Sales Global Loans FY12
Markets Sheet
Markets Balance
Trading & Banking
Transaction
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Includes Relationship & Infrastructure Australia / New Zealand

105

Shifting our business model in response to the chan in environment in Australia and New Zealand g g

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Institutional Australia & New Zealand Institutional Australia & New Zealand
Margin & Balance Sheet Trends Lending Income Mix
Lending Deposits NIM ex Mtks (RHS)
Value Added Lending Traditional Term Lending
AUDb
80 4.00%
3.80%
70
3.60%
60
3.40% 73% 70% 69% 67%
50
3.20%
40 3.00%
2.80%
30
2.60%
20 27% 30% 31% 33%
2.40%
10
2.20%
1H11 2H11 1H12 2H12
0 2.00%
1H11 2H11 1H12 2H12 Value Added Lending - Trade and Specialised Finance
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106

Margin impacted by higher wholesale funding costs and com etition for de osits and lendin in Australia p p g

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IIB Net Interest Margin Movement 2H12 v 1H12 (bps) NII & Volume Growth
Institutional Australia
195
FY12 v FY11 2H12 v 1H12
-3%
NII
8 -5%
14 176
11 AIEA 6%
4%
4
7 Institutional APEA
3
30%
NII
0%
40%
AIEA
14%
Institutional New Zealand
Ex-markets down 33 bps
2%
Including markets down 19 bps NII
-1%
1H12 Funding & Funding Deposits Assets Other Markets 2H12 11%
Asset Mix Costs AIEA
6%
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NII – Net Interest Income

AIEA – Average Interest Earning Assets

107

Adapting to the new environment by creating a more efficient lower cost business model ,

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IIB FTE Movement [1]
16,625
16,121
Sep 2011 Support Retail Institutional Institutional Regional Hubs Sep 2012
Australia / NZ APEA
IIB HOH Expense Growth (FX Adj) IIB Expense Growth 2H12 v 1H12
16 AUDm
AUD 1,481
2
5% 5% 1,457
+48m +35m 34 4
YOY YOY
-2%
2H11 1H12 2H12
Other 2H12
1H12 FX Adj Dep. / Amortisation Restructuring Personnel
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Includes contract employees.

108

Productivity focus drove reduction in expenses 2H12 a ainst more challen in macro environment g g g

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IIB NPAT(AUDm) IIB NPAT Movement FY12 v FY11 (AUDm)
1
Institutional Australia / New Zealand APEA 227
2,372
2,301 175
176 2,372
2,301
2,047 134 21
744 908
714
1,235
1,137 IIB NPAT Movement 2H12 v 1H12 (AUDm)
1,077
427 1,235
345 481
19
1,557 1,464 46 46 1,137
1,333
40
77
808
732
656
FY10 FY11 FY12 2H11 1H12 2H12
NII OOI
FY11 OEI FY12
Expenses Provisions Tax &
NII OOI
1H12 Expenses Provisions Tax & OEI 2H12
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Includes Relationship & Infrastructure Australia / New Zealand

109

Return on Equity maintained in faster growing regions and roducts p

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IIB Product IIB Geography
Return on Regulatory Capital [1] (%) Return on Regulatory Capital [1] (%)
20% 16%
Global Markets IIB Division
22% 14%
21% 22%
Institutional
Transaction Banking
New Zealand
21% 19%
14% 17%
Global Loans Institutional Australia
11% 16%
16% 14%
Partnerships Institutional APEA
15% 14%
11% 12%
Retail Asia Pacific APEA
14% 12%
2011 2012 2011 2012
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Capital represents average Basel 2 RWA x 8.5% plus full year average capital deductions (such as investment in partnerships, software capitalisation, deferred acquisition costs, deferred income )

110

APEA franchise a differentiator in volume growth and continues to strengthen group balance sheet

	IIB Customer Deposits & Lending	IIB Customer Deposits & Lending	IIB Deposit Movement 2H12 v 1H12	IIB Deposit Movement 2H12 v 1H12
0 20 40 60 80 100 120 140 160 AUDb	Customer Deposits 15% CAGR 142.7 108.5 129.7 132.8	Customer Lending 18% CAGR Loan to Deposit Ratio 75% 107.6 77.7 97.2 102.2	132.8 142.7 0.2 0.1 8.8 0.8 AUDb
			Mar 2012 Australia New Zealand APEA Retail Asia Pacific Sep 2012 Institutional
			IIB Lending Movement 2H12 v 1H12
			102.2 1.0 AUDb	107.6 0.1 3.6 0.9 $2.5b Trade Finance
	Sep 10 Sep 11 Mar 12 Sep 12 Sep 10 Sep 11 Mar 12 Sep 12 Institutional Australia Institutional NZ Institutional APEA Retail Asia Pacific
			Mar 2012 Australia New Zealand APEA Retail Asia Pacific Sep 2012 Institutional

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111

Well diversified and high quality assets in APEA

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Institutional APEA Risk Grade profile
Institutional APEA Asset Composition
by Exposure at Default
Total External Assets
Sep 2012 AUD95b
Due from
Other Financial
Liquid
Institutions
26% Assets
11% 71% 75% 76% 75% AAA-BBB
Derivatives BBB-
5%
BB+~BB-
19%
Money 14%
BB-
Market
Trade
Securities
Finance <BB-
Other 3% 22%
Assets 16%
Other 16% 15% 17%
Net Loans &
Advances 9%
6% 6% 5%
2% 2% 2% 2%
2% 1% 1% 1%
Mar 11 Sep 11 Mar 12 Sep 12
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112

Impaired Assets have continued to decline, provision char e rowth driven b le ac ex osures in Australia g g y g y p

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Global Institutional Provision Charge
Global Institutional Provision Charge
Movement 2H12 v 1H12
AUDm 66 8 3 264
AUDm 2H12 Includes
700 Large Single 187
Names
600
500
432
400
264 1H12 Australia New APEA 2H12
300
Zealand
187
283
200 139
110
100 Global Institutional Net Impaired Assets
AUDm As % GLA
0
3,522
4,000 5.0%
2,984
-100
4.5% 2,656 4.0%
3,000
2,177
-200 3.7% 1,996 3.0%
2,000 3.1% 1,913
2.3% 2.0%
-300 2.1% 1.9%
1,000 1.0%
1H10 2H10 1H11 2H11 1H12 2H12
New IP Charge Increased IP Charge 0 0.0%
Recoveries & Writebacks CP Charge Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12
Total Provision Charge Institutional net impaired assets % GLA (RHS)
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113

Transaction Banking

Trade & Supply Chain - continuing to leverage regional trade network and build customer franchise in FY12

Income[1] up +34% to $464m
Client growth of 15%
Asset growth of 20% across all regions
Continuing to build Asian presence
Income growth of 57%, client growth 22%
Recognised as a leading regional trade bank, ranked No. 3 International Trade Bank in Indonesia and Philippines and No. 1 in Vietnam[2]
Focusing on productivity and efficiency resulted in 5% decrease in expenses and significant ROE uplift

Payments & Cash Management - growing customer base and transaction flow in FY12

  - PCM customers grew 20%, 80% of this in Asia

  - Global average cash volumes[3] increased by $11bn to $67bn

Deployed ANZ Transactive into key geographies including Singapore, Hong Kong and the Pacific
Continuing to deliver market leading solutions:
- ANZ Transactive mobile application
- Cashactive - a web-based liquidity solution that simplifies receivable and reconciliation activities
Excluding non-trade guarantee income
Trade Finance Magazine, Awards for Excellence, 2012
Cash volumes include clearing balances

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Trade & Supply Chain
Total Limits & Transaction Volumes [1]
AUDb Funded Exposures „000‟s
50 Unfunded Exposures 600
Transactions (RHS)
40
400
30
20
200
10
0 0
1H10 2H10 1H11 2H11 1H12 2H12
Payments & Cash Management
ANZ Transactive Volumes and Value
Txn Volume (LHS) Txn Value (RHS)
millions AUDb
8 120
100
6
80
4 60
40
2
20
0 0
Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12
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114

Global Markets

APEA continued to show strong growth with total income up 26% YOY and now represents 40% of Markets income
Sales income was up 9% YOY due to a broadening of our client base with Capital Markets up 6%, Investor Sales up 23% and Wealth Sales up 33% YOY
Sales income HOH was down 16% reflecting low volatility and a softening economy in 2H12.
However, all regions showed continued growth from FY11 to FY12 in line with our strategic objectives
Trading and Balance Sheet income grew 23% YOY, reflecting a recovery from the volatile trading environment experienced in late 2011
Continued focus on FX as a priority product resulted in income growth of 17% YOY and now represents 39% of Markets income
Progress in FX is reflected in ANZ‟s rankings in recent 2012 FX Polls
Asiamoney - No. 2 in FX Services to Financial Institutions
Asiamoney - No. 5 in FX Services to Corporates
Euromoney – Best in Asian Currencies

Global Markets Income by Activity

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AUDm Sales Trading Balance Sheet
1,500
953 988 1,022
1,000 864 909
701
500
0
1H10 2H10 1H11 2H11 1H12 2H12
Global Markets Income by Product
AUDm Foreign Exchange Fixed Income
1,500 Capital Markets Other
953 988 1,022
1,000 864 909
701
500
0
1H10 2H10 1H11 2H11 1H12 2H12
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115

Debt Capital Markets

Asian Capital Markets platform delivering growth

Building deeper relationships in Asia with key distribution clients - hedge funds, pension funds sovereigns, life insurers and HNW / Affluent
Introduced ~400 new investors globally in FY12
Distribution capabilities increasing the velocity of balance sheet and broadening our reach with clients

Maintained strong presence in Home Markets

1 in Australia for MLA and Bookrunner for all League Tables and including #1 MLA New Zealand (Bloomberg)
1 in Australia for Bonds excluding self-led deals with 17.6% market share (6.5% ahead of nearest competitor)
1 in NZ for Bonds with 49% market share excluding self led deals

A market leader for syndicated loans in the Asia Pacific region

1 MLA in the Asia-Pac region ex Japan (Thomson Reuters LPC).
No. 1 in Australia Bookrunner tables with USD4.06bn

Corporate and frequent issuer bonds league table rankings

Corporate and frequent issuer bonds league table rankings	Corporate and frequent issuer bonds league table rankings	Corporate and frequent issuer bonds league table rankings
Category	Q3 2012	2011
	Rank Volume % mkt No. Issue	Rank
Australia	2 AUD9.8b 17.6 68	1
New Zealand	1 NZD2.8b 40.2 23	1
Asia Pacific ex-Japan	10 USD17.6b 2.5 110	9
China offshore (Dim Sum)	8 CNY4.1b 3 11	29

Source: Bloomberg (including self led)

Loan syndications league table rankings

Loan syndications league table rankings	Loan syndications league table rankings	Loan syndications league table rankings
Category	Q3 2012	2011
	Rank Volume USDb % mkt No. Issue	Rank
Australia (MLA)	1 8.6 18.4 70	1
Asia-Pac ex-Japan (MLA)	1 13.7 7 136	1
Asia (MLA)	17 3.1 1.8 42	16
Asia (Bookrunner)1	8 1.7 3.5 18	9

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Source: Thomson Reuters LPC

In G3, HK, SING & AUD

116

Retail Banking Asia Pacific & Commercial Banking Asia

Retail Banking Asia Pacific

Customer deposits and lending grew 17% and 27% year-on-year in Asia
In 2012 on-boarded 27,574 new "Signature Priority Banking" customers
Improved product holding per customer to 1.8, primarily within the affluent segment
Delivering on productivity agenda with full year JAWS +1.3%
Launched Mortgage loans in Hong Kong and opened high-visibility, street-level flagship branch in Kowloon

Commercial Banking Asia Pacific

Focused on Hong Kong, Singapore & Taiwan markets
Active customers up 21% in 2012
Income growth of 46% year-on-year driven through priority products of Transaction Banking and Markets
Customer deposits and lending grew 53% and 73% respectively in 2012

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Retail Asia Pacific
Customer Deposits & Lending (AUDb)
Customer Deposits Customer lending
13
13
11
10 10
7
6
5
4 4
Sep 10 Mar 11 Sep 11 Mar 12 Sep 12
Commercial Banking Asia Income (AUDm)
Transaction Banking Global Markets
150 Lending & Other 130
89
100
70
50
0
FY10 FY11 FY12
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117

Asia Partnerships

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

Asian Partnerships NPAT Movement FY12 v FY11 (AUDm)
35 120 347 10 10
318 330
227
31 6
126
FY11 Sacombank Accounting 1 FY11 Earnings FY12 Gain on BoT Dilution SSI Accounting 1 FY12
Reported Impairment Adjustments Adjusted Growth Adjusted Sacombank Gain Impairment Adjustments Reported
Sale
Adjusted NPAT contribution
Partnership Adjusted NPAT Mix FY12
by Partnership (AUDm)
FY11 FY12
3%
120
100 19% AMMB
28%
80
SRCB
60
Panin
40
23% BoT
20
27% Others 2
0
AMMB SRCB Panin BoT Others 2
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Earnings recognised by ANZ differ from published results of partnerships due to application of IFRS, Group accounting policies and acquisition adjustments.
Comprises Metrobank, Saigon Securities & Sacombank

118

The impact we are achieving with our clients is recognised across the region

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Institutional Retail
GREENWICH LARGE CORPORATE BANKING STUDY CORPORATE AND INSTITUTIONAL RELATIONSHIP BANKING SURVEYPETER LEE ASSOCIATES LARGE CORPORATE AND INSTITUTIONAL RELATIONSHIP BANKING SURVEYPETER LEE ASSOCIATES LARGE 12TH CAPITAL OUTSTANDING ENTERPRISE AWARDS PRIME AWARDS FOR BANKING & FINANCE CORPORATIONS BENCHMARK ADVISOR OF THE YEAR
TOP 5 CORPORATE BANK IN ASIA FOR BANKING PENETRATION [1] BANKING PENETRATIONNO. 1 FOR DOMESTIC [2] DOMESTIC RELATIONSHIPSSTRENGTH AMONGST LEAD NO. 1 FOR RELATIONSHIP [3] BEST DEPOSITS SERVICE BANK BEST CONSUMER FINANCE BANK YEAR AWARD FOR ONE OF OUR BENCHMARK ADVISOR OF THE RETAIL BANKERS
2012 2012 2012 2012 2011 2012
ASIA AUSTRALIA NEW ZEALAND HONG KONG HONG KONG HONG KONG
PETER LEE ASSOCIATES LARGE CAPITAL MAGAZINE‟S MERITS
CORPORATE AND INSTITUTIONAL RELATIONSHIP BANKING SURVEY EXCELLENCE AWARDS AWARDS FOR EXCELLENCE OF ACHIEVEMENTS IN BANKING AND FINANCE SERVICE TO CARE AWARD SERVICE QUALITY AWARD
NO. 1 FOR MOST TRUSTED BEST TRADE FINANCE BANK BEST TRADE BANK - PREMIUM BANKING SERVICES SERVICE TO CARE AWARD SERVICE QUALITY AWARD
ADVISER [2] IN ASIA PACIFIC AUSTRALASIA AWARD IN REGULAR BANKING
2012 2012 2012 2012 2012 2012
AUSTRALIA ASIA PACIFIC AUSTRALASIA HONG KONG INDONESIA INDONESIA
EUROMONEY FOREIGN EXCHANGE SURVEY FX POLL CFO AWARDS SERVICE EXCELLENCE AWARD WEBAWARD GLOBAL FINANCE WORLD‟S BEST INTERNET BANK
BEST IN ASIAN CURRENCIES BEST FOR OVERALL FX SYNDICATED BANK LOAN OF SERVICE EXCELLENCE AWARDS WEBAWARD FOR ANZ MOBILE WORLD‟S BEST INTERNET
SERVICES THE YEAR FOR CALL CENTRE BANKING BANK
2012 2012 2012 2012 2011 2012
ASIA HONG KONG & VIETNAM FORTESCUE INDONESIA TAIWAN TAIWAN
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Based on Greenwich Large Corporate Banking Study 2012.

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Rated No.1 equal in the Peter Lee Associates Large Corporate and Institutional Relationship Banking Australia Survey, 2012. Ranked against the top 4 competitors

Based on the Peter Lee Associates Large Corporate and Institutional Relationship Banking Survey New Zealand 2012. Ranked against the top 3 competitors

119

We are winning greater value added and substantial flow transactions

Value-added transactions

Substantial Flow transactions

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Alibaba Group
BP Capital Markets BHP Billiton
Holdings
AUD500m AUD1bn USD3bn
Senior Bonds Senior Bonds Bridge/Term Loan
Facility
2012 2012 2012
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----- Start of picture text -----

Hyundai Capital
Origin Energy All Chinese Banks Services
52 tons AUD175m
AUDUSD500mFX trade deal in Physical Gold (USD3.0bn)supplied by and Cross Currency Senior Eurobond Swap
ANZ Bullion
2011 2012 2012
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Tencent Holdings PT Bayan Resources Transpower
USD600m 975,000 tonnes NZD300m
Senior Unsecured Thermal Coal Senior Bond (fixed
Bonds Extendable Hedge & floating)
2012 2012 2012
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Envestra PT Bayan Resource
Tbk Bunge China
USD150m, AUD50m USD700m Soybean hedging
10 & 15 yr Bond Club Deal Security for US and Chinese
and Cross Currency Agent/Account based entities
Interest Rate Swap Bank
2012 2012 2012
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Regal Hotels
Fiji Sugar Sandfire Resources NL
International Holdings
EUR40m AUD390m
USD300m
Structured Trade Mining Project Debut Bond
Finance Facility Finance
2012 2011 2012
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TP Huawei Tech
Investment Govt of Timor Leste Boral
USD57m Trade Finance LC
Receivable USD 172m AUDEUR 500m
FX trade deal
Financing Betano Power Plant
2012 2012 2011
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120

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Divisional Performance New Zealand Businesses

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The New Zealand simplification strategy is delivering

Most convenient

Change in Customer Satisfaction

We have the most branches and the most ATM‟s. 7 new branches opened in growth areas since the simplification programme began
Increasing the number of wealth, commercial and small business specialists
NBNZ‟s #1 internet banking[1] and ANZ‟s GoMoney give customers more access to services and products than any other bank

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6% 5%
4%
2% 1% 1%
0% -1%
0%
-2%
ANZ Peer 1 Peer 2 Peer 3 Peer 4
Source: Nielsen Consumer Finance Monitor.
Change measured from September 2011 to September 2012
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Most efficient

Mortgage Market Share

Productivity and simplification focus resulting in efficiency gains (lower cost to income ratio and tight management of headcount)
One product suite enabling broader and more effective reach. Product variations reduced from 309 to 137
Aligned processes across the bank enhancing automation and increasing sales conversion whilst reducing errors and duplication

Most connected

Super regional advantage - the only bank in NZ to directly access 32 markets across the region
Connecting businesses within the region via TransTasman and China forums for Commercial customers
Connecting businesses within New Zealand through hosted workshops, forums and events

Source: Nielson

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Share of new
36%
mortgages
Share of mortgage
discharges
30%
24%
Sep-11 Mar-12 Sep-12
Source: Terralink
Cost to Income Ratio
46%
45%
44%
43%
42%
1H11 2H11 1H12 2H12
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122

A strong financial performance for New Zealand Businesses

Simplification driving productivity gains

Profit up 2% HOH (PBP +0.3%), 11% YOY (PBP up 4%)
Operating expenses down 1% HOH through simplification, productivity gains and tight management of discretionary expenditure
Operating income flat HOH with a decline in NIM offset by increased other operating income from volume growth, earthquake insurance recoveries and higher cards income
Cost to income ratio declined YOY by 100bps (30bps HOH), with positive jaws of 3% (1% HOH)

Balance sheet growth

Lending volumes increased by 3% HOH and YOY assisted by above-system growth in mortgages (particularly in Auckland)
Customer deposits grew 3% HOH and 9% YOY, and the funding gap improved by $1.5b

Improvement in credit quality as we continue to support our customers

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Reviewed and enhanced risk policies and practices to support sustainable business growth in challenging environment

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Individual provision loss rate down 6bps HOH to 0.26%

Sound credit processes led to a decline in delinquency rates and impaired assets are down 15% HOH

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Income growth continues to exceed cost
growth
5%
3%
0%
-2%
FY11 FY12
Operating Income Operating Expense
Underlying Profit
NZDm 12
484
-
5 3
473
8
11
1H12 Net Other Operating Provisions Income 2H12
Underlying interest operating expenses Tax Underlying
profit income income profit
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123

Net Interest Margin – New Zealand Businesses

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NIM movement 2H12 v 1H12
•
Net interest margin increased 11bps YOY
bps
3
266
•
HOH margin decline resulted from increased
competition for deposits, higher wholesale 2 4
funding costs 259
3
• 9
Movement also impacted by balancing
volume growth and pricing Down 7 bps
1H12 Funding & Funding Deposits Assets Other 2H12
Asset Mix Costs
Net Interest Margin NIM movement FY12 v FY11
bps
4 262
2.70%
7 13
2.60%
252
2.50% 1
2.40%
15
2.30% Up 10 bps
2.20%
FY11 Funding & Funding Deposits Assets Other FY12
1H10 2H10 1H11 2H11 1H12 2H12 Asset Mix Costs
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Net interest margin increased 11bps YOY
HOH margin decline resulted from increased competition for deposits, higher wholesale funding costs
Movement also impacted by balancing volume growth and pricing

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124

Good growth in Balance Sheet

Net Loans and Advances

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NZDb Up 3% • Increased 3% HOH with Retail and Small Business
100 85.5 85.4 87.9 Banking growing at greater than system due to a
focus on mortgages and the small business
80
segment
60
40 • Retail lending up 2% HOH and 1% YOY
20
• Small Business lending up 7% HOH and 12% YOY
0
Sep 11 Mar 12 Sep 12 • CommAgri growth was moderated by ongoing Agri
Retail CommAgri Small Business Banking de-leveraging, up 2% HOH and flat YOY
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Increased 3% HOH with Retail and Small Business Banking growing at greater than system due to a focus on mortgages and the small business segment

Customer Deposits

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Up 9%
NZDb
60 45.7 48.0 49.6
40
20
0
Sep 11 Mar 12 Sep 12
Retail CommAgri Small Business Banking
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Funding gap improved $1.5b, Loan to Deposit ratio improved 10 percentage points and deposits up 9% YOY
Retail deposit growth was greater than system, up 6% HOH and 9% YOY
Small Business Banking deposits increased 4% HOH and 13% YOY underpinning the total Commercial Segment (flat HOH, up 7% YOY)

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125

Credit quality improving

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Net Impaired Assets
NZDm 1.91%
1.65%
1.32% 1,667 1.51% 1.36%
1,436
1,295 1.11%
1,148 1,158
979
Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12
Net Impaired Assets NIA as % Net Advances
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Total provision charge
NZDm
400 349
300
165 98 119
200 101
89
100
0
-100
1H10 2H10 1H11 2H11 1H12 2H12
IP Charge CP Charge
90+ Days Arrears
1.20%
1.00% Mortgages
1
Commercial
0.80%
Rural
0.60%
0.40%
0.20%
0.00%
2007 2008 2009 2010 2011 2012
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Key Credit Metrics

Measure	FY11	FY12	Movt
Net Impaired Assets (NZDm)	1,295	979	-24%
NIA/Net Advances	1.51%	1.11%	-40bps
IP Loss Rate	0.38%	0.29%	-9bps
Average CCR Risk Grade	5.16	4.96	-0.20
90 Day Delinquencies	0.36%	0.26%	-10bps

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

126

Retail segment – increase focus on sales and customer service is deliverin g

Improved distribution

More branches in growth catchments
Capacity released through simplification reinvested to increase number of Home Loan Specialists and Mobile Mortgage Bankers

Targeted IT investment

Focused IT development has improved the online banking experience (usage up 15%, satisfaction 99%) and available to another 1 million customers after the system conversion

Better processes

Improved scorecards create productivity gains allowing staff to spend more time serving customers
Simplified home loan process manifests in a faster response to customers

Improved market leverage

More focused use of sponsorships and marketing effort

Simplification working

Unprecedented growth in ANZ brand consideration with ANZ now #1 for ad awareness[1]
ANZ is #1 in new mortgage registrations and Auckland mortgage market share[2]
Source: Nielson
Source: Terralink

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Market Share
32%
31%
30%
29%
Mortgages Household Deposits
FY11 FY12
Source: Share of Banks, Reserve Bank of New Zealand
Focus has been in switching and the
Auckland market where ANZ is now #1
Share of switching, Auckland Share of new mortgage
registrations, Auckland
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
Sep- Mar- Sep- Mar- Sep- Sep- Mar- Sep- Mar- Sep-
10 11 11 12 12 10 11 11 12 12
ANZ Peer 1 Peer 2 Peer 3 Peer 4
Source: Terralink, rolling 6 month average
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127

Strong Retail financial performance

Underlying profit

NPAT performance up 5% HOH, 24% YOY

Cost management focus

Operating income flat HOH and up 5% YOY
Operating expenses down 3% HOH, 1% YOY

Growth momentum through simplification and enhanced customer proposition

2% growth in lending volumes and 6% growth in deposits HOH

Continued improvement in credit quality

Delinquencies have reduced to the lowest levels since the start of the GFC
Volume growth has been in <90LVR mortgages with >90LVR continuing to decline (down 8bps HOH, 69bps YOY)
Net impaired assets declined by 26% HOH and 42% YOY

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Underlying Profit
NZDm
176
168
146
131
1H11 2H11 1H12 2H12
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Revenue growth, tight cost management
and improved credit quality
NZDm
1,211
1,101 1,151
683 677 673
148
78 62
FY10 FY11 FY12
Operating Income Operating Expenses Provisions
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128

– CommAgri simplification strategy focusing on levera in scale and connectivit g g y

Leverage our scale

Implemented a simplified and more efficient operating model aligned to customer needs delivering greater customer satisfaction and consistency
Investment in best practice Sales Framework to drive consistent sales disciplines, delivery to customer and performance monitoring
Commercial risk management and lending practices embedded into Agri through Credit Pathways training, cashflow analysis, corporate Agri model and business of farming

Better connectivity with strong growth in cross sell into other ANZ businesses

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YOY Change in Cross-Sell Revenue
80%
38%
21%
ANZ @ Work Interest Rates Trade
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Connectivity & sector focus

Adding value via thought leadership including Farm Start-up Package, Future Farmers, sector collaborations, Fieldays, Privately Owned Business Barometer

Super regional differentiation

Leveraging super-regional via Vietnam tour, China Business Forum, Sea Edge Symposium and Viewpoint on Asia and Trans-Tasman
Customer service delivered in New Zealand resulted in customers‟ Australian banking being transferred from competitors to ANZ
First ANZ India account opened for Commercial customer

Best Agribusiness Bank NZ

“We couldn’t go past ANZ and National Bank as the institution providing the best value to rural customers.

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The focus on the agri-sector through its core products, as well as provision and facilitation of rural seminars and meetings for agri-participants is a strong sign they are staying true to their commitment to the agri-market for the long haul.”

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129

Small Business Banking – simplification strategy driving strong growth in this important segment

Small Business Banking is an important segment in New Zealand, where 90% of businesses employ 5 or fewer staff (31% of employment) and constitute 44% of GDP

Optimise location of bankers

Bankers moved into branches around network to provide 4% improvement in market coverage, driving lending growth and increased revenue performance

Optimise time spent with customers

52 simplification initiatives have allowed each banker to spend more time with customers
Increased training and performance management has achieved significant sales uplift

Develop segment specialisation, including:

Migrants - Super regional focus with 40+ migrant focused offices across NZ
Agri - dedicated small business Agri bankers
Start-ups - launched ANZ Farm Start-up Package including specialised workshops helping farmers to achieve their goals. Over a third of packages opened were new to bank customers

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Growing Market Share
6,000 34% 36%
33%
34%
4,000
31% 32%
2,000
30%
0 28%
Sep-11 Mar-12 Sep-12
Main Bank Share - SME (RHS)
Cumulative New to Bank customers (LHS)
Source: Main Bank Share – TNS Business Finance Monitor
New to Bank – ANZ Small Business Banking Sales Tracker
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Balance Sheet Growth

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

NZDb
20 16 18
15
15
10
9
10 7
5
0
FY10 FY11 FY12
Customer Deposits Net Loans & Advances
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130

– Commercial Segment[1] improvement in asset quality delivering a better return

Underlying Profit

NPAT up 1% HOH, 4% YOY as the Agri portfolio continues to deleverage improving the quality of earnings and returns

Improvement in credit quality

Net impaired loans as a percentage of net advances declined HOH by 30bps to 1.58%
The Agri portfolio continues to improve following a period of strengthening commodity prices and de-leveraging

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Improvement in Agri risk profile
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----- Start of picture text -----

Customer Credit Rating (CCR) Profile [2]
23% 26% 31% 0-3
4
27%
33% 33% 5
23% 6
19%
18%
12% 7-8
9% 7%
4% 12% 4% 9% 4% 7% 8- to 10
Sep-11 Mar-12 Sep-12
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----- Start of picture text -----

Underlying Profit
NZDm
305 307
295 293
1H11 2H11 1H12 2H12
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----- Start of picture text -----

Net Impaired Assets
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----- Start of picture text -----

NZDm
2.71%
2.36%
1.86% 1,395 2.05% 1.88%
1,208 1.58%
1,033
945 954
829
Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12
Net Impaired Assets NIA as % Net Advances
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1 The Commercial Segment includes Commercial, Agri and Small Business Banking
2 CCR is a measure reflecting the ability to service and repay debt. Risk grades are from 0 (highest quality) to 10 (default)

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131

New Zealand Geography – strong balance sheet and fundin g

A Strong and Stable Bank

Strong Balance Sheet Growth

Funding gap improved by $1.6b YOY, Loan to Deposit Ratio down 6 percentage points to 145%
Increased funding diversification with improved deposit mix and covered bond programme
Core Funding Ratio has improved from 84% to 87.6%

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

NZDb
120 160%
95.5 93.6 93.8 96.1
100
80 62.8 62.0 64.2 66.1 150%
60
40 140%
Mar 11 Sep 11 Mar 12 Sep 12
Net Loans and Advances (incl. acceptances) (LHS)
Deposits (LHS)
Loan to Deposit Ratio (RHS)
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Key Metrics
Measure FY10 FY11 FY12
Customer Deposits 56.5% 59.1% 59.9%
Liquid Assets ($m) 15,200 16,600 17,100
Core Funding Ratio 83.1% 84.0% 87.6%
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Funding Gap improvement as deposit growth
exceeds lending growth – FY12 v FY11
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----- Start of picture text -----

NZDb
2.2 1.9
31.6
0.2
30.0
-
2.3
Sep 11 1H12 1H12 2H12 2H12 Sep 12
Lending Deposits Lending Deposits
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The Reserve Bank of New Zealand minimum ratio will be 75% from 1 January 2013

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132

Short Term Strategic Priorities – management of brand merge

We announced that the ANZ and The National Bank (NBNZ) will come together and the NBNZ brand will be phased out over the next two years
Our simplification strategy will continue and we are positioned well for future balance sheet growth and efficiency gains

Most convenient

Immediate focus – successfully convert to a single technology platform with minimal disruption to customers (systems merge end of October 2012)
The largest single branch network in NZ, optimised to provide more coverage from less branches
More specialists, enhancing customer experience

Most efficient

A single system generating operating efficiencies
More efficient investment in both technology and marketing
A single distinctive brand and one product suite offering customers the best of both brands

Most connected

Access scale delivered by a single technology platform and the footprint of a single brand. The new ANZ NZ can offer more, both locally and globally
Most connected locally. Leverage combined footprint and specialists to provide more people, in more places to provide more service to more customers
Most connected globally. More regional specialists. Only high street bank in NZ to directly access 32 markets across the region

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We made sure the market was ready for the
new ANZ
NZ strategy New ANZ
45% established announced
30%
Consideration: Ipsos Brand & Ad Track, 6 month rolling
Unprompted ad awareness
15%
Sep-10 Sep-11 Sep-12
Source: Consideration – Ipsos, Unprompted Ad Awareness - Nielson
Trends encouraging in mortgage approvals
since new ANZ brand announcement
Share of mortgage approvals
33.4%
32.7%
31.8%
30.4%
29.8%
New ANZ
announced
14-Sep-12 21-Sep-12 28-Sep-12 05-Oct-12 12-Oct-12
Source: RBNZ
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133

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Divisional Performance Global Wealth and Private Banking Division

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Global Wealth and Private Banking (GWPB)

A new division that combines Global Wealth and Private Banking across Australia, New Zealand and the Asia Pacific
Responsible for delivering investment, superannuation, insurance and advice solutions and private banking services to our customers
The business is managed on a global basis to ensure an aligned approach and leverage our talent, systems and operations

Global Wealth and Private Banking

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

Australia New Zealand Asia Pacific
Business Units
Global
Global Pension & Global Private
Global Insurance Women‟s ETRADE
Investments Banking
Segment
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Global Channels

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

Direct Channels
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Advice & Distribution

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135

– Global Wealth and Private Banking Financial erformance p

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

Underlying NPAT movement – FY12 v FY11
$m 457
5 17 451
12 4
12
Down 1%
FY11 Net Other Expenses Provisons Tax and FY12
Interest Income OEI
Underlying NPAT movement – 2H12 v 1H12
$m
27 13 4 245
206 -
5
Up 19%
1H12 Net Other Expenses Provisons Tax and 2H12
Interest Income OEI
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136

Wealth – Business performance

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

Funds under management
(end of period)
$b
52
52 51
50 49
48
46
44
42
Sep 11 Mar 12 Sep 12
Individual Risk In-force [1]
(Index Jun 09 = 100)
(%)
150 System ANZ
140 8.0%
130
120
110
100
Jun 09 Jun 10 Jun 11 Jun 12
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NPAT up 19% HOH but down 1% YOY
Net funds management and insurance income up 4% HOH and 2% YOY
Better performance in insurance income and investment earnings, partially offset by lower funds management and advice income as adverse investor sentiment impacted volumes and margins
3% reduction in costs HOH as productivity benefits emerged with the CTI ratio down 350 bps HOH to 56.3%
FUM up 1% HOH and 6% YOY with New Zealand strongly up 5% HOH and 15% YOY
Annual in-force premiums up 6% HOH and 4% YOY with annual individual in-force premiums up 7% HOH and 11% YOY
Favourable claims experience, partially offset by higher lapse rates

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Source: Plan for Life

137

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. — Investor Presentation 2012

10425_rns_2012-10-24_503e9251-beeb-41da-8371-87f25c79e592.pdf

Index

Full Year Result Overview

Additional Financial Information

Divisional Performance

Overview of financial performance

Australia Division

Underlying profit growth

FY12 v FY11

Australia Division 4%

International and Institutional Banking (IIB) Division

New Zealand Businesses

Underlying profit growth (NZDm)

FY12 v FY11

New Zealand Businesses 11%

Global Wealth and Private Banking Division

Credit Quality

Provision Charge Trends

Progressing well against our strategic objectives

2012 Full year financial performance

Performance 2H12 v 1H12 ($m)

Super Regional Strategy – 5 Core Themes

Strengthening our position in Australia & New Zealand

Capturing regional flows and diversifying income

Productivity focus is delivering results

Effective capital management critical in a lower growth environment

Credit quality tracking in line with expectations

2012 Operating Income Mix

Net Interest Margin trends

Outlook - Continuing to execute our super regional strategy

Adjustments between statutory profit and underlying profit

Net Interest Margin (NIM) movement summary

NIM – Divisional Trends

NIM – Group

NIM – Group

NIM – Australia Division

NIM – New Zealand Division

NIM – International & Institutional Banking Division

NIM – Australia Geography

NIM – New Zealand Geography

Balance Sheet – Customer Lending & Deposits

Balance Sheet – Composition by Geography

Balance Sheet – Composition by Division

Balance Sheet – Composition by Segment

Balance Sheet strengthening has been a consistent focus

Strengthened Funding Profile

Diversified Term Debt Portfolio

ANZ is in a strong capital position

Capital Management Agenda

Solid organic capital generation underpins strong Basel 3 CET1 osition p

Capital Position (APRA Basel 3 Common Equity Tier 1)

Sep-11 APRAUnderlying NPAT (1)RWA Usage (2) Non RWA Dividends (net DRP)Capital Initiatives and Divestments (5)Other (6) Basel 3 Business Usage (4)

Reconciliation of ANZ‟s capital position under Basel 3

ANZ capital ratios: Basel 2 to Basel 3

Well diversified funding profile with a low reliance on offshore short term wholesale debt

Strengthened Funding Profile

FY13 term funding well progressed, already one third complete

Recent issuance has been well diversified supporting a sustainable wholesale debt ortfolio p

Lower structural funding gap provides funding flexibility

ANZ has built a sustainable balance sheet

Liquid assets of $115b provides a high level of coverage and si nificantl exceeds total offshore debt outstandin g y g

Hedging has negated the impact on earnings of sustained $A strength

Credit quality in line with expectations

Credit Quality Trends

Exposure composition by Geography and Asset Class

Control Lists and Risk Grade Profiles

Continued improvement in Credit RWA rate

Risk Weighted Assets

Credit Risk Weighted Assets

Impaired Assets by Division

Gross Impaired Assets

Individual Provision Charge

Collective Provision Charge

Collective Provision Charge by Source

Collective Provision Balance

Impaired Asset Concentration

Total lending exposures by Industry Sector

Manufacturing

Australia and New Zealand Banking Group Ltd. Investor Presentation 2012