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Investor Discussion acP k
Mike Smith
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

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Investor Discussion acP k
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Overview and strategy

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ANZ has established a strong business foundation

A clear company wide focus on our super regional strategy:

• Organised our business around three key geographies and our customers	p. 4-14
• A strong capital and funding position	p. 15-24
• Risk management	p. 25-39
• The ANZ mortgage portfolio	p. 40-47
• Balance sheet management	p. 48-53
• Maintaining strong businesses in our home markets:
• Australia	p 54 74 . -
• New Zealand	p. 102-111
• Investing for strong organic growth in Asia	p. 75-86
• A redefined and clear focus in our global institutional business	p. 87-101
Additional information:
• 1Q12 Trading Update	p. 112-117
• 2011 Financial Result	p. 118-130

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ANZ is structured by Geography & Segment

Australia

Global Wealth Global Retail Commercial & Private Institutional Banking Asia Pacific, Europe & America (APEA) Retail Global Wealth Global (including Commercial & Private Institutional partnerships) Banking New Zealand Global Wealth Global Retail Commercial & Private Institutional Banking Managed as global segments

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Coherent strategy – driving competitive advantage

Geographic opportunity

Foot p rint - ex p osure to Asia’s more ra p id g rowth
Growing financial services requirements
Regional connectivity
Strong domestic markets and businesses Building Super Regional capabilities

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Cross-border customer focus

Regional customer insights
Resources, agribusiness, infrastructure
Trade and investment flows
Migration/people flows, education

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Bench strength/international talent
• Innovative product capability
‘Throw and catch’ capability and culture
• Enabling technology and operations hubs
• Global core brand, regional reach • G overnance an d r s i k managemen t

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Delivering Super Regional performance momentum

OUTPERFORM AND TRANSFORM

OUTPERFORM

Realise full

RESTORE

Institutional growth
Stronger risk and governance processes
I ncrease d i n t erna ti ona l banking experience
Balance sheet and capital management
Move from a presence to a real business in Asia
14% of Group Earnings
Beachhead in Greater China, SE Asia, India, Mekong
M a nta n strong omest c i i d i franchises
Increased management bench strength
Create hub foundation
Improving balance sheet composition
Improved funding diversity

potential of Super Regional aspiration

Capturing value: • To Asia OUTPERFORM

Within Asia
From Asia

2009-2010

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2007-2009

2011-2017

Super Regional - driving long term growth and differentiated returns

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Denotes two way merchandise trade flow [3 ]
Forecast GDP growth [1 ] (% p.a, 2011-14) FDI inward flow [2] (USDb, 2009)
(2009)
KR
EU 2
4 . 0% US
1.6% JP
12 2.7%
UK 1.6%
2.3%
TW Asia-US
3
CN 78 5.1% Trade: US$0.8trn
8.7%
HK
48
Asia-Europe IN 5.0%
Trade: US$1.0trn 35
8.5%
VN
8
7.1%
TH
5 Pacific-Asia [4]
4.5%
Trade: US$6bn
PHI
2
4.6%
Intra-Asia MLY
1
Trade:$1.6trn 5.0%
PNG
0.4
5 . 0%
SG IND
17 5
4.6% 5.9% AUS
23
3.2% Aus/NZ-Pacific [5]
Trade: US$6bn
Aus/NZ-Asia
Trade: US$235bn
NZ
0.2
2.9%
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Source: 1. Global Insight; 2. Bloomberg; 3. WTO; 4. IMF; 5. ABS and Statistics NZ.

Super Regional strategy is based on three core stren ths g

1. Strategy aligned to Asian growth

Strong domestic franchises and established market position
Focus of expansion in higher growth Asian markets

2. Leveraging regional customer flows

Aust/NZ flows to and from Asia – 8 of top 10 Australian export markets in Asia
Network presence facilitating growing intra-Asia customer trade flows

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GDP growth
12
10
8
6
4
2
0
-2
-4
-6
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
(f) (f) (f)
US Europe Australia New Zealand Asia ex Japan
h
% annual growt
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Differentiated growth opportunities in Aust / NZ

Merchandise export values by country

3. Strengthens balance sheet and earnings diversity

Diversity of Group funding
Self funded balance sheet in APEA
Strong capital and liquidity positions
Improves diversification of earnings by geography and product

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$m
650
550
450
350
250
150
50
05 06 07 08 09 10 11
US Eurozone UK NZ Japan India China
100), 12 sum
= month rolling
Index (Jan 2005
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Super Regional connectivity provides a competitive advantage

Growth in trade flows and direct investment between Asia and Australia is tracking at 11% and 26% pa respectively

Surplus savings There is approximately $75b in direct foreign investment into Australia from the Asian region

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Commodity
consumers
Commodity
producers
Migration &
Investment
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Natural resources account for ~$125b or ~65% of Australian and New Zealand exports to Asia

Linked through flows of trade, capital and population

Key focus is to bridge gaps across the region: Asia generates surplus liquidity, Australia and NZ generate hard and soft commodities

42% of our Corporate[*] clients depend on Asia for more than 25% of their business

Soft commodities account for ~$25b or ~12% of Australian and New Zealand exports to Asia

Represents ANZ’s Australian based clients with annual turnover of $40-400m Sources: Australian Bureau of Statistics (international direct investment positions, 2006-09), Trade Map (exports and imports, 2007-2010) 9

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Realising the full potential of Super Regional

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2017 APEA sourced revenue to drive
Aspiration 25% - 30% of Group profit
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The more mature our business, the greater our opportunities
Increasing our footprint, customers and access to trade, liquidity and investment flows
Regional connectivity will deliver additional revenue into Australia, New Zealand, Asia and the Pacific
Hubs provide a lower and more flexible cost base – access deeper pools of talent, provide better service with lower risk
Technology roadmap focused on customer facing (e.g. internet banking, goMoney) and cross-border systems (e.g. FX, Cash Management)

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Realising the full potential of Super Regional

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2017 APEA sourced revenue to drive
Aspiration 25% - 30% of Group profit
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Continue to build depth in international management and banking experience
Well defined succession planning
Remuneration and incentives aligned to delivery of strategy and management of risk
Risk management as a core competency
Increased expertise across the risk function
Comprehensive set of asset writing strategies
Product and segment expertise – focus on sectors we know
Customer driven rather than product focused
Lower balance sheet intensity
Greater balance sheet diversity
Reduced reliance on interest income
Funding flexibility

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Growth levers - organic, partnerships and M&A

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Continued Focus on Organic Growth
Leveraging Super Regional connectivity
Increasing productivity
Focus on core customers
Managing the value of ANZ’s
Selective M&A opportunities
Partnerships
• Deliverin g access to attractive markets/
•
segments Dislocation in global markets continuing
• Linking partnership customers to ANZ’s to create opportunities
international network • Consistent M&A disciplines – on
• Actively managing the portfolio to strategy, delivers value, executable
op ti m se s i t ra t eg c pos i iti on ng i
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The Super Regional Strategy improves ANZ’s overall Balance Sheet profile

APEA Loan to deposit ratio is 60%

The key aspects of the SRS from a balance sheet management perspective are :

Self Funded
75% NLA’s are <1 year duration

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Customer Deposits Net Loans & Advances
USDb
(incl. acceptances)
70
63
60
50 45
38
40
30 27 26
20 17
10
0
Sep 09 Sep 10 Sep 11 Sep 09 Sep 10 Sep 11
Retail Institutional
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Balance sheet in Asia is self funded with deposits substantially higher than lending assets (~60% LDR)
Much of our focus in the re g ion is on providing non lending products to clients (eg Cash, Trade, Rates, FX, Commodities and DCM)
Our Asian network enables us to take Australian and NZ clients directly to the Asian debt capital markets rather than bank loan funding
We can also look to provide Australian & NZ clients with diversified funding structures , through assets written in Asia
Deposit pools are managed through our regional treasury centres with the m ajo rit y of APEA deposits in interchangeable currencies.

Emerging differentiation

us to Asia ’ s
Super Regional strategy giving greater exposure growth
Building blocks in place via both acquisition and investment in capability
Develo in stron er customer ro ositions p g g p p
Driving productivity gains from our hubs
Integrating the Super Regional strategy into all our businesses

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Investor Discussion acP k
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Capital Funding and Liquidity

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ANZ well capitalised and positioned to transition to Basel III

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Basel II Basel III – Common Equity Tier 1 Basel II Basel II
Dec-11
~14.9%
Proposed Basel III
7% minimum APRA fully ~14.0%
including buffer Basel harmonised
12.1% applicable from III [#] 12.0%
12.1% Jan-16
11.9%
~9.5% ~9.5% 11.0%
10.9%
10.5%
10.1% ~7.4% ~8.7% Common
Equity Tier 1
~7.5%
surplus
~7.0% over
7.0%
Capital
Buffer ~11.4%
2.5%
8.7%
8.5% 8.5%
8.0%
4.5% minimum Minimum
tar g et
4.5%
Sep-10 Mar-11 Sep-11 Common Equity Higher RWA Dividend 10%/15% RWA: IRRBB Sep-11 Basel III Sep-11 FSA
Tier 1 Charges accrual threshold insur, & mortgage Full Int'nl
Deduction (credit risk) * APRA Basel III assoc, DTA LGDs & other Alignment
(Insur , banking , (inc . DTA on CP)
assoc, ELvCP) & other items
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Common Equity Tier 1 Hybrids Tier-2

Excludes Basel 2.5 Market & Securitisation Risks and any Basel 3 liquidity changes

Still subject to discussion paper feedback

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Solid organic capital generation continues to underpin the strong Common Equity Tier 1 position

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Capital Position (Common Equity Tier 1 Ratio) Basel II
Dec-11
~11 . 4%
2.13%
~9.5%
8.67%
8.52%
(0.83%)
8 . 05% (0 . 43%)
(0.33%) (0.07%)
Portfolio growth & mix 51bp decrease +15.8b
Risk Migration 7bp increase -1.3b
Portfolio data review 2bp increase -0.5b
Non-credit RWA 1bp decrease +0.4b
Net organic up 54bp
U p 47b p
Sep-10 NPAT Dividend/DRP RWA Other Investments Sep-11 Sep-11 Basel Sep-11 FSA
(1) (2) movement (4) III
(3) (5)
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(1) Underlying NPAT. (2) Includes prior period under-accrual of DRP. (3) Includes impact of movement in Expected Loss versus Eligible Provision shortfall. (4) Includes OnePath Insurance Business’ retained earnings, Asian Banking Associates’ retained earnings, Non-Core NPAT items, Capitalised Costs and Software, FX, Net Deferred Tax Assets, Pensions, MTM gains on own name included in profit (5) Ratios based on full Basel III international alignment.

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Tier 1 position strengthened significantly with recent CPS3 issuance and solid organic capital generation

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Capital Position (Tier 1 Ratio) Basel II
Dec-11
~ 14 . 0%
2.13%
~11.7%
11.03%
0.51% 10.94%
10.10% (0.83%)
(0 .57% )
(0.33%) (0.07%)
Portfolio growth & mix 65bp decrease +15.8b
Risk Migration 8bp increase -1.3b
Portfolio data review 2bp increase -0.5b
Non - credit RWA 2bp decrease + 0.4b
Net organic up 40bp
Up 84bp
Sep-10 NPAT Dividend/DRP RWA Other Investments Hybrids Sep-11 Sep-11 Basel Sep-11 FSA
(1) (2) movement (4) III
(3) (5)
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Reconciliation of ANZ’s capital position under Basel III

ANZ capital ratios under a Basel III fully harmonised approach :


	C ommon Equity Tier 1 Tier 1 Total Capital APRA Sep-11 Basel II 8.5% 10.9% 12.1% Plus: dividend not provided for (net of DRP) 0.5% 0.5% 0.5% Less Investments in ADI and overseas equivalents -0.4% -0.4% 0.0%
	Less Investments in ANZ insurance subs including OnePath -0.4% -0.4% 0.0% Less Expected losses in excess of eligible provisions -0.2% -0.2% 0.0% Other -0.1% -0.1% -0.1% Less 10% reduction of existinghybrids and sub debt securities - -0.2% -0.4%
	Estimated increase in RWA1 -0.4% -0.5% -0.6% APRA Sep-11 Basel III discussion paper 7.5% 9.6% 11.5% 10% allowance for investments in insurance subs and ADIs 0.8% 0.7% 0.6% upto 5% allowance for deferred tax asset 0.2% 0.2% 0.2%
	other capital items 0.2% 0.2% 0.3% Mortgage 20% LGD floor and other measures 0.6% 0.7% 0.7% IRRBB RWA (APRA Pillar 1 approach) 0.2% 0.3% 0.4% Sep-11 Basel III fully aligned 9.5% 11.7% 13.7%

Includes credit counterparty but excludes Basel 2.5 Market & Securitisation Risks and any Basel III Liquidity changes

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ANZ has a well diversified funding profile with an increasing weighting to customer funding

Strong Funding Composition

Maintained low levels of shortterm wholesale funding

Short Term Wholesale Customer Funding Funding Term Debt < 1 year Residual Shareholders equity & Hybrid Maturity debt Term Debt > 1 year Residual Maturity

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12%
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Equity/
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Well diversified term wholesale funding portfolio

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18%

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Current at 30 September 2011

Stable term debt issuance, portfolio costs increasing

Portfolio term funding costs expected to increase further due to current market volatility

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Stable term funding profile Portfolio term funding costs expected to
AUDb increase further due to current market
30
Domestic Offshore volatility
220bp
25
200bp
Covered 180bp
bond
issuance
20
160bp
140bp
Forecast Portfolio funding
costs based on current
15 120bp market levels
100bp
10 80bp
60bp
5 40bp
20bp
0 0bp
FY08 FY09 FY10 FY11 FY12 FY12 FY13 FY14 FY15 FY16 FY17 >FY17 Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep
YTD 05 06 07 08 09 10 11 12 13 14 15 16
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FY11 includes $2.4bn of pre-funding from FY10; All numbers are at Group Level

Note: As at February 2012

Mortgage pricing

Criteria used to assess Interest Rates

Change in cost of funds over the RBA Cash Rate since the Global Financial Crisis

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Mvmt in funding costs vs. Cash
Cost of Rate relative to pre-crisis levels
wholesale 1.60% Change in Funding Costs relative to Pre Crisis
funding (ex Capital, Mix and Liquidity)
1.40% Short Term Wholesale
1.20%
Returns for Competitive
depositors position 1.00% Long Term Wholesale
Interest
rate 0 . 80% Cumu al tive
decision
Out-of-cycle
0.60%
0.40% Deposits
Impact of
Regulatory economic 0.20%
requ remen i t s con diti ons on
customers
0.00%
Oct-07Dec-07Feb-08Apr-08Jun-08Aug-08Oct-08Dec-08Feb-09Apr-09Jun-09Aug-09Oct-09Dec-09Feb-10Apr-10Jun-10Aug-10Oct-10Dec-10Feb-11Apr-11Jun-11Aug-11Oct-11Dec-11Feb-12
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Weighted contribution of funding sources

Pre-crisis levels represents the average change in cost of funding relative to t h e cas h r ate o v e r t h e 12 m o n t h pe ri od e n d in g Septe m be r 2 00 7

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Total liquid assets exceed TOTAL offshore wholesale debt portfolio

Strong liquidity position ($b)

ANZ Total Offshore Wholesale Debt securities

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Prime Liquidity Portfolio Other Eligible & Highly Liquid Securities

Long-term

Short-term

Composition of prime liquid asset portfolio ($71.4b)

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Class 2
$9.4b
Bank or Corporate
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Class 3 $30.7 Internal RMBS

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paper ra t e d AA or
better
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Priority of use

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Hedging has lessened the impact on earnings of the stronger $A

Earnings Composition by Region & Average Translation Rates

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EPS Impact

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Hedge profits more than halved the negative impact of AUD strength on FY11 earnings.
FY12 hedges are in place to cover ~80% of USD (inclusive of other significant currency exposures), and ~40% of NZD exposures.
At current levels (AUD/USD 1.04, AUD/NZD 1.30) FY12 FX expected to adversely impact FY12 EPS by ~0.3% (inclusive of hedges)
E ac h 5% apprec a i ti on o f th e AUD wou ld negatively impact FY12 EPS by an additional ~0.9%

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Investor Discussion acP k
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Risk Management

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Provision Charge and Impaired Assets

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Total Provision Charge New Impaired Assets
(IP charge by Division, total CP charge) by Division
1,621 3,600
1,435
3,126
3,035
1,098 2,436
2,319
1,824
722
660
551
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Individual Provision Charge

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Individual Provision Charge by Segment

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Individual Provision Charge composition

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1,531
1,283
1,062
762 609
594
1,531
1,283
1,062
Individual Provision Charge
762
by Region
594 609
1,531
1,283
1,062
762
594 609
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Collective Provision Charge

Collective Provision Charge by Source

(96)	331	36	(40)	65	CP Charge by Division 2H11 (58) (74) (42) 29 29

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Collective Provision Charge

Collective Provision Charge by Source


FY11	Risk Impact	Lending Growth	Portfolio Mix	Cycle & Concentration	Total
Australia Division	20	42	(6)	(14)	42
Institutional	(29)	65	(14)	12	34

New Zealand	(35)	(6)	(1)	(47)	(89)
APEA & Group Centre	(47)	29	1	37	20
Total	(91)	130	(20)	(12)	7
2H11 Risk Impact Lending Growth Portfolio Mix Cycle & Concentration Total Australia Division (1) 26 (6) (93) (74) Iiil 20 36 1 12 29
2H11	Risk Impact	Lending Growth	Portfolio Mix	Cycle & Concentration	Total
Australia Division	(1)	26	(6)	(93)	(74)
Iiil	20	36	1	12	29
nsttutona	()
New Zealand	(8)	(5)	(1)	(28)	(42)
APEA & Group Centre	(27)	17	2	37	29
Total	(56)	74	(4)	(72)	(58)

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Credit Risk Weighted Assets

Total Credit Risk Weighted Assets

Credit Risk Weighted Assets Movement FY11 v FY10

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Credit Risk Weighted Assets

Credit Risk Weighted Assets by Basel Asset Class

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$b
300
251 249 251
250 230 234
9% 8% 8%
6% 7%
12% 11% 12%
11% 11%
200
9% 12% 12%
11% 12%
14%
16%
150 17% 17% 17%
100
56% 56% 53% 52% 51%
50
0
Sep 08 Sep 09 Sep 10 Sep 11 Dec 11
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Bank, Sovereign & Other

Specialised Lending (slotted exposures eg. project finance, certain commercial property exposures) QRR and Other Retail (Credit Cards, other retail lending)

Residential Mortgage

Corporate

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Risk Weighted Assets

Risk	Weighted Assets	Weighted Assets	Weighted Assets	Weighted Assets
	Risk Weighted Assets by Geographic Region

250 300 $b	14% 275		17% 20% 252 264 280
		14% 275	17% 20% 252 264 280
200		21%	22% 18% 18% 13%	APEA
100 150		65%	65% 62%	NZ Australia
50			65%
0	Sep 08

Impaired Assets

Gross Impaired Assets by Size of Exposure

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Gross Impaired Assets by Type
by Size of Exposure
$m
$m
Impaired Loans NPCCD Restructured 8 , 000 6,561 6,561
6,221
5,595 5,581
6,000
8,000 4,158
4,000
7,000
6,561 6,561 2,000
6,221
0
6,000 5,595 5,581
Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11
> $100m $10-$99m < $10m
5,000
4,158
New Impaired Assets by Segment
4,000
$m
4,000 3,600
3,000 3,126
3,035
3,000
2,319 2,436
2 , 000 2,000 1 , 824
1,000 1,000
0
0
1H09 2H09 1H10 2H10 1H11 2H11
Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Institutional Commercial Retail
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Watch & Control Lists and Risk Grade Profiles

Watch & Control List

Group Risk Grade profile by Exposure at Default

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Index Watch List by Limits
Mar 2009
Watch List by No. Groups
= 100
Control List by Limits
Control List by No. Groups
180
160
59% 59% 58% 60% 61%
140
120
100
80 13% 13% 14% 14% 13%
60 13% 13% 13% 12% 12%
40
9% 9% 9% 8% 8%
20 6% 6% 6% 6% 6%
0 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11
Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 AAA to BBB BBB- BB+ to BB BB- >BB-
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Commercial Industry Exposures

							Manufacturing 14%	Manufacturing 14%	Manufacturing 14%
Finance & Insurance 16% 80 80				Property Services 14% 80
			16%
40 60			6% 8% 10% 12% 14% 40 60			6% 8% 10% 12% 40 60			6% 8% 10% 12%
0 20	0% 2% 4% Sep 10 Mar 11 Sep 11 0 20			4% 0% 2% Sep 10 Mar 11 Sep 11 0 20
10% 12% 14% 60 80 Agri, Forestry & Fishing 60 80				Wholesale Trade 10% 12% 14% 60 80			Mining 10% 12% 14%

0 20 40					0% 2% 4% 6% 8% 20 40			2% 4% 6% 8%
		Sep 10 Mar 11 Sep 11 Exposure at Default ($b) (LHS) % in Non-Performing (RHS)		0 % of Group Portfolio (RHS) 35 Sep 10 Mar 11 Sep 11			0% Sep 10Mar 11Sep 11

Australia 90+ Day Delinquencies

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Australia Retail 90+ day delinquencies
1.25%
1.00%
0.75%
0.50%
0.25%
0 . 00%
Sep 07 Sep 08 Sep 09 Sep 10 Sep 11
Total Mortgage Portfolio NSW & ACT Mortgages QLD Mortgages
VIC Mortgages WA Mortgages Total Credit Cards
Australia Division Mortgages have low loss rates
90+ day Delinquency Balance ($m)
Individual Provision Loss Rates
2,000
FY09 FY10 FY11
1 , 500
Group 0.79% 0.52% 0.31%
1,000
500 Australia Region 0.87% 0.51% 0.30%
0 Australia Mortgages 0.03% 0.01% 0.02%
Sep 10 Mar 11 Sep 11
Mortgages Other Lending
36
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Australia Mortgages

Portfolio Statistics	Portfolio Statistics
Total Number of Mortgage Accounts Tl MFUM	832k 170b
ota ortgage %ofTotalAustraliaRegionLending	$ 60%

% of Total Group Lending	43%
Owner Occupied Loans - % of Portfolio	64%

Average Loan Size at Origination	$231k
Average LVR at Origination	63%
Average Dynamic LVR of Portfolio	48%

% of Portfolio Ahead on Repayments1	37%
First Home Owners - % of Portfolio	9%

First Home Owners - % of New Lending	8%

Dynamic Loan to Valuation Ratio

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% Portfolio
60%
50%
40% 13% of Portfolio
>80% LVR
30%
20%
10%
0%
0-60% 61-75% 76-80% 81%-90% 91%+
Sep-09 Sep 10 Sep 11
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Mortgage Portfolio by State
(Sep 2011)
28% NSW & ACT
16%
QLD
VIC
10%
19%
WA
OTHER
27%
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One month or more ahead of repayments. Excludes funds in offset accounts.

Australia Commercial

Australia Commercial 90+ day delinquencies

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3.00%
Business Banking Regional Commercial Banking
2 . 50%
Esanda Small Business Banking
2.00%
1.50%
1.00%
0.50%
0.00%
Sep-07 Sep-08 Sep-09 Sep-10 Sep-11
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Regional Commercial Banking Australia Commercial Lending Mix 90+ day delinquencies

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RCB Total Agri Other Commercial
3.00% Business Banking
2.50% 30% Regional Commercial Banking
28%
2.00%
Esanda
8%
1.50%
34% Small Business Banking
1.00%
0.50%
0.00%
Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11
38
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New Zealand businesses

Total Impaired Assets

Total Provision Charge

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NZDm
NZDm
600 531
2.47%
351
400
2.25%
247
165 98 119
2,215 2.06% 200
1.92% 2 , 020 0
1,809
-200
1H09 2H09 1H10 2H10 1H11 2H11
1,718
IP Charge CP Charge
1.25%
90+ Days Arrears
1,132 1.20% Mortgages
0.70%
Commercial
Rural
0.80%
631
0.40%
Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11
0.00%
Impaired Assets IA as % GLA 2007 2008 2009 2010 2011
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Investor Discussion acP k
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

ANZ Mortgage Portfolio

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The Australian mortgage market

The Australian mortgage market

Full Recourse • All mortgage lending is full recourse • Investment loans are also secured by mortgage over primary residence
Variable rate • Most mortgage lending in variable rate format (ANZ ~85%) • Direct transmission for monetary policy
Low LVRs • Average dynamic LVR is ~48% (or ~63% at origination) • Loans with LVR > 80% require mortgage insurance
Limited tax advantages • Mortgage debt on owner occupied homes is not tax deductible •Resultsinhighprepamentlevels • No sub prime market

y • Consequently mortgage debt as proportion of housing stock is low (~30% in Aust vs ~62% in the US) Originate to • Mortgages typically retained on	ANZ Individual Provision Loss Rates (%)
		1H09	2H09	1H10	2H10	1H11	2H11
	Group	0.85	0.74	0.61	0.42	0.31	0.31
	Australia Region	1.03	0.72	0.59	0.42	0.31	0.29
41 hold model balance sheet • Last Securitisation by ANZ in 2004	Australia Mortgages	0.03	0.02	0.02	0.01	0.01	0.03

Australian house price growth since the mid 1980s - income growth + structural decline in interest rates

Australian house price vs. purchasing power

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$700,000
Interest rate contribution to simulated house price
Income g rowth contribution to simulated house p rice
Actual house prices
$600,000
$547,861
$500,000
$400,000
$300,000
$200,000
$ 100 , 000
$0
86 88 90 92 94 96 98 00 02 04 06 08 10
Represents the average households purchasing power over the median priced home
- $100 , 000 ** Calculated using trend discounted variable bank mortgage rate
Calculated using average household disposable income
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Sources: Residix, ABS

Global House Price Trends

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Median House Prices
Index Mar
2002=100
350
300 Hong Kong
250
Singapore
New Zealand
200
Australia
Canada
United Kingdom
150
United States
100
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
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Sources: Datastream, ANZ Research

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Australian House Price Trends

Median House Prices

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Index Dec Index Dec
2004 = 100 2004 = 100
Darwin
230 230 (-6.0%) [#]
210 210
# - Movement from peak to Dec 2011 Perth
190 190
(-7.5%) [#]
Melbourne
(-6.9%) [#]
170 170
Brisbane
150 150
(-9.0%) [#]
Adelaide
1 30 1 30 (-6.6%) [#]
110 Sydney 110
(-1.9%) [#]
90 90
2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011
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Sources: RP Data-Rismark, ANZ Research

Australian House Price Trends

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Median House Prices
Index Jan 2009=100
130
125 Top 20% Suburbs
120
Middle 60% Suburbs
115
Bottom 20% Suburbs
110
105
100
2009 2010 2011
Source: RP Data-Rismark
45
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Australian Housing Loan Approvals

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Monthly Approvals $b Monthly Approval s $b
25 25
Total Approvals
20 20
15 15
Non First Home Buyer
10 Owner Occupiers 10
5 5
Investors
First Home Buyers
0 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: RBA, ABS
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Debt is concentrated in higher income households

Indebted Households Share of household debt by income quintiles, 2006 25% 50% 16% 6% 3% First Second Third Fourth Fifth

Household debt up but also total assets held b y households
Debt largely used to acquire assets
Financial assets (e.g. ex housing) now equivalent to 2 . 75 years of income up from 1.75 years of income in the early 1990’s
Increased debt mostly taken on by households in the strongest position to service it
Households in the top two quintiles account for 75% of all outstanding debt
Bottom two income quintiles account for 10% of household debt

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Source: RBA paper “Aspects of Australia’s finances” 15 June 2010

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Investor Discussion acP k
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Balance Sheet Management

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Group loans and deposits

Group customer deposits Loan to (Customer) Deposit Ratio (%)

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$b Growth Rates
450 FY08 FY09 FY10 FY11
12% 16% 14% 15%
300
150
0
Sep 07 Sep 08 Sep 09 Sep 10 Sep 11
Group net loans and advances
(including acceptances)
$b Growth Rates
450 FY08 FY09 FY10 FY11
16% 0% 9% 7%
300
150
0
Sep 07 Sep 08 Sep 09 Sep 10 Sep 11
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(%)
200
180
160
156
151
140
134
120
100
80
60 60
40
Sep 07 Sep 08 Sep 09 Sep 10 Sep 11
Australia APEA NZ Group
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Customer deposits by geography

			New Zealand (NZDb) APEA (USDb) Growth Rates Growth Rates	New Zealand (NZDb) APEA (USDb) Growth Rates Growth Rates
	Australia (AUDb) Growth Rates

160 180 200		FY08 FY09 FY10 FY11 10% 16% 9% 11%	FY08 FY09 FY10 FY11 FY08 5% 1% 0% 4% 49%	FY09 FY10 FY11 49% 68% 40%

100 120 140
40 60 80
0 20	Sep 07
		Sep 08 Sep 09 Sep 10 Sep 11	Sep 07 Sep 08 Sep 09 Sep 10 Sep 11 Sep 07 Sep 08
		Retail 1	Commercial Institutional

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Includes Wealth

Customer deposit composition by segment

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Group deposits by segment Deposits composition
(AUDb) Sep 2011
297
257
Group 39% 18% 41% 2%
233
124
110
Australia 31% 21% 47% 1%
102
54
46
APEA 77% 23%
47
117
98
80 New Zealand 19% 29% 45% 7%
Sep 09 Sep 10 Sep 11
Wealth Retail Commercial Institutional
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Net loans and advances by geography

				APEA (USDb) Growth Rates
	Australia (AUDb) New Zealand (NZDb) Growth Rates Growth Rates

250 300	FY07 FY08 FY09 FY10 FY11 FY07 14% 0% 9% 6%	FY08 12%	FY09 FY10 FY11 (1%) (1%) (3%)	FY07 FY08 FY09 FY10 FY11 large (2%) 57% 44%

150 200
50 100


0	Sep 07 Sep 08 Sep 09 Sep 10 Sep 11 Sep 07
		Sep 08	Sep 09 Sep 10 Sep 11
	Retail 1	Commercial		Institutional

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Includes Wealth

Lending composition by segment

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Group lending composition Lending composition
by segment (AUDb) Sep 2011
397
369
346
Group 23% 22% 54% 1%
215
202 Australia 19% 17% 63% 1%
185
APEA 82% 18%
87
85
86
New Zealand 7% 54% 37% 1%
91
71 79
Sep 09 Sep 10 Sep 11
Wealth Retail Commercial Institutional
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Investor Discussion acP k
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Australia Division

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Australia Division – Consistent customer focus and wellestablished market positioning driving solid results

1. Delivered customer propositions targeted at key segments aligned to our Super Regional Strategy

New banking services for affluent customers
Improved process for NZ customers opening accounts in Australia
Customer referral agreements with Shanghai Rural Commercial Bank (SRCB) and AmBank
Introduced multi-lingual capabilities to more than 2 , 700 ATM s (9 l anguages )

2. Driving customer growth and improving productivity and efficiency

Leveraging Super Regional advantage and franchise strength across Retail, Commercial, Wealth and Institutional
Improving efficiency by centralising and standardising administration functions

3. Successful implementation of technology and innovation initiatives

Rolled out integrated mortgage origination platform
E xpan d e d f unct ona i li ty o f G o M oney or f BPAY payments (~420k customers & ~26% of all online traffic)
Launched Multi-currency Travel Card in May 11 (~55k cards sold with a value of $220m)
Launched OneAnswer Frontier – a 'fee for service' (commission free) investment platform
Term Deposits now available on OneAnswer
EasyProtect and 50+Life insurance products sold directly via anz.com and branches

Pro forma Profit before credit & income tax

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Wealth Commercial Retail Lending & deposit growth (YOY)

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Australia Division – Financial performance

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Pro forma
Pro forma NPAT movement – FY11 v FY10
Growth Rates
Up 2%
Pro orma f NPAT movement – 2H11 v 1H11
Up 8%
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Australia Geography – Balance sheet and funding

Balance sheet management strategy

A well managed balance sheet supports sustainable lending and revenue growth
We aim to:

Significant improvement in loan to deposit ratio

Continually improve the composition of deposits in line with Basel 3 expectations - type, tenor and segment to fund core assets
Reduce the funding gap and therefore reliance on short term wholesale debt
Continually improve capital efficiency

Outcome

Loan to deposit ratio has improved to 156% in FY11 f rom 186% i n FY08
Improved quality of deposit base:
Strong proportion of deposits from Household segment (Household deposits as % total deposits up from ~39% in Sep 08 to ~41% in Sep 11)[1]
H ouse h o ld customer epos t growt d i h a b ove mar k rates (1.5x system for the year[1] )
Market share for traditional banking products improved from 12.5% in Sep 10 to 13.0% in Sep 11[2]
Net gain of 113k transaction account customers
Launch of Term Deposits on our Wealth platform provides additional customer contact and allows customers to better manage their funds
Source: APRA Banking Statistics
Roy Morgan Research

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Australia Geography – loans and deposits

Net loans and advances • Lending up 6% YOY and 2% HOH (including acceptances) • Mortgages up 7% YOY and 3% HOH growing at 1.2x system[1 ] YOY
• Commercial up 5% YOY and 4% HOH
Business Banking up 10% YOY and 4% HOH

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Small Business Banking up 12% YOY and 9% HOH
� Regional Commercial Banking flat YOY and up 4% HOH
• Institutional up 5% YOY and 1% HOH
Customer deposits • Deposits up 11% YOY and 9% HOH • Focus on core bank customers • Retail up 13% YOY and 6% HOH • Commercial up 18% YOY and 7% HOH � Business Banking up 17% YOY and 5% HOH � Small Business Banking up 22% YOY and 11% HOH
� Regional Commercial Banking up 17% YOY and 4% HOH
• Institutional up 5% YOY and 16% HOH

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Source: APRA Banking Statistics and RBA data

Australia Division – Net Interest Margin

Margin strategy

Net Interest Margin

ANZ is focused on profitable growth in key segments using a service led approach

Outcome

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YOY NIM d own 2 b ps
Improved asset margins and reduced reliance on wholesale funding largely offset by increased deposit competition and negative asset mix impacts

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NIM movement 2H11 vs. 1H11

HOH NIM down 2 bps
Asset repricing benefit offset by increased f u nding costs and price competition for deposits
Costs of funds impact on variable rate book pronounced in 4Q

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Retail – ANZ value proposition: “easy and empowering”

Superior customer service

Priorities Capabilities • Position ANZ as the most “easy and empowering bank” for
Strong brand customers • Strategic marketing campaigns – “We live in your world.” • Be the bank of choice for target customer segments:
Deeper � Affluent � Migrant
relationships � Young money � Over-50s with � ANZ Staff
Customers • Tailored offerings and better processes
More specialists (migrant teams, retirement bankers, etc.)
Abilit y o open us t A t ra li an accoun t s n o i th er coun t r es e.g. i ( New Zealand and China)
• Simplified products, processes and policies making banking easier for customers and staff

Simple to do business with

Channels aligned with customer trends
Reconfiguring branch network – more efficient customer friendly footprint, more technologically advanced (e.g. Smart ATMs, cash recyclers, video conf.), more sales and advice oriented (e.g. engagement desks, Client Advisors)

Multi-channel sales & service

Single front-end platform (iKnow) will deliver a seamless customer ex p erience across all channels

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Extending functionality of online and mobile platforms in line with customer expectations

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Retail – Strategy delivering results

Movement	FY11 v FY10	2H11 v 1H11
Income	6%	2%
Expenses	4%	2%
Profit Before Provisions	7%	3%
Net loans & advances incl. acceptances	7%	3%
Customer deposits	13%	6%

Focused on growing share of wallet in key customer segments through a distinctive value proposition of being the most easy and empowering bank
Competitive in the market on price without being the price leader

Outcome

Revenue growth of 6% YOY
Improving CTI – 43.8% in FY11 from 44.6% in FY10
Peer leading customer satisfaction and improving share of wallet
Strong growth in deposits - up 13% YOY and 6% HOH
Mortgages FUM up 7% YOY and 3% HOH

Cost to income (CTI) ratio

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Retail - Focused on profitable growth and market share

With MFI Customer Satisfaction again approaching 80%...

(%) MFI Customers[1]

… and Peer leading Customer Advocacy

Net Promoter Score[1,3]

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… purchase intention for ANZ home loans is up YOY and HOH

(%) Home loans trial intention[2]

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… and share of wallet growth outperforms domestic peers

(%) Share of wallet – Traditional Banking[1]

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Peer 1 Peer 2 Peer 3

Source: Roy Morgan Research
Source: Australian Retail Brand Monitor

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62
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"Net Promoter Score[sm] is a service mark of Bain & Company, Inc., Satmetrix Systems, Inc. and Mr. Frederick Reichheld"

Retail – Mortgages

Portfolio Statistics	Portfolio Statistics
Total Number of Mortgage Accounts	832k
Total Mortgage FUM %ofTotalAustraliaRegionLending	$170b 60%

% of Total Group Lending	43%
Owner Occupied Loans - % of Portfolio	64%
Average Loan Size at Origination	$231k
Average LVR at Origination	63%
AverageDynamicLVRofPortfolio	48%

% of Portfolio Ahead on Repayments1	37%
First Home Owners - % of Portfolio	9%
First Home Owners - % of New Lending	8%

Dynamic Loan to Valuation Ratio

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% Portfolio
60%
50%
40% 13% of Portfolio
>80% LVR
30%
20%
10%
0%
0-60% 61-75% 76-80% 81%-90% 91%+
Sep-09 Sep 10 Sep 11
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Mortgage Portfolio by State
(Sep 2011)
28% NSW & ACT
16%
QLD
VIC
10%
19%
WA
OTHER
27%
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One month or more ahead of repayments. Excludes funds in offset accounts.

Retail – Becoming the bank of choice for Asia Region customers

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Customer Focus Capabilities Outcome [1]
• Chinese customers able to open Australia & China accounts
with one application
600% ncreasei
• Improved process for NZ customers (15 min process) new accounts opened by NZ
Simple customers since process
processes • Visa Debit card available on arrival streamlined from Dec-10
• Fee free international money transfers [2]
• Gl o b a l R eta il R e f erra l T oo l ~5,800
• International Banking Services (IBS) branches increased (~160% increase in
Tailored from 19 to 47 branches from Jan to Jul-11 online sales)
new online accounts since
products & • Online multilingual application forms April launch of
network for
movin g toaustralia.anz.com
customer • Si gn ifi can t mor t gage an d cre dit car d po li cy en h ancemen t s
needs to better suit customers moving to Australia and insurance
proposition under development
47 IBS Branches
• New website “Moving to Australia”
(19 branches Jan-11)
• Dedicated email and phone contacts
Understand of
banking in • Advertising in targeted countries and segments
400+ in-branch
Australia
• Banking in Australia Seminars specialists with
• Representation at appropriate Expos language capability
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Results as at September 2011

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ANZ offers fee free international money transfers to customers with a 1+1 student and parent account in Australia and China

Retail – Delivering customer propositions targeted at key segments aligned to our Super Regional Strategy

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International Banking
Moving to Australia website Services branches Concierge model
(Online) (Branch) (Phone)
• L au n c h ed A p ril 2 0 11 • In c r eased fr o m 1 9 t o 47 • L au n c h ed A ugus t 2 0 11
branches
• Simplified multilingual content • Multilingual account opening
• 47 targeted branches supported service
� English
by over 400 Banking Specialists • High-touch point of contact for
� Chinese with language capability
customers
� Korean • Supported by bilingual marketing • FX and International Money
mater a an i l d i n- b ranc h
• Multilingual Online forms Transfer Specialists
campaigns
• Online content including • Dedicated support resources to • Arrange Visa Debit Card pick up
LifeGuides, country guides, etc. on arrival
assist in sales coaching for
• Complements Concierge model segment • Based on successful model in
ANZ New Zealand
• Supports Global Retail Referrals
Tool
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Retail – Strong momentum in Affluent program driven by new capabilities and services

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Principles driving performance - easy and empowering
Customer Focus Capabilities Outcome (5 months) [1]
• Whole customer relationship taken into account in financial
~4,700
product assessment
Customer Customers on-
knowledge • boarded
Front line system for customers designed to capture all
customer interactions
~790
• Introduction of a 30 minute Wealth Health Check Wealth Health Checks
Accessibility to
Wealth advice • New capability for Wealth advisers that takes into account
time poor customers Average advice fee
$1510 (up ~90%),
• D e di ca t e d cus t omer managers average risk
premium $2260
Customer • Referral processes between Financial Advisers, Mobile (up ~70%)
engagement
Lenders, Home Investment Lending Managers and
branches for specialist support
~$480m
• Email communication the #1 method of daily liaison with Mortgage FUM
referred
customers from their dedicated customer manager
Customer • First meeting with specialists face to face ~Average size of
liaison
• Dedicated Practice Manager to guide customers through referred Mortgages
more than double
mor t gage process
retail average
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Results from May 2011 to October 2011

Commercial overview

Movement	FY11 v FY10	2H11 v 1H11
Income	6%	4%
Expenses	6%	(2%)
Profit Before Provisions	6%	7%
Net loans & advances incl. acceptances	5%	4%
Customer deposits	18%	7%

Strategic focus

Drive customer growth through leveraging:

Net loans and advances incl. acceptances & deposits

ANZ ’ s Super Regional capabilities and footprint
ANZ’s strengths in Markets, Trade Finance and Cash Management and Agriculture and Natural Resources sector expertise

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Retail, OnePath and Esanda’s distribution network

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Improve efficiency and productivity through centralising and standardising administration functions and enhanced use of offshore hubs.

Outcome

Income up YOY and HOH , strong deposit growth and improving asset volumes

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NIM up YOY reflecting strong transaction account growth.

Commercial – super regional advantage

Our super regional platform and ANZ core capabilities are driving cross-sell and new-to-bank acquisition

Super regional platform

ANZ is the only bank able to connect Commercial customers across Asia, New Zealand and Australia via a network that spans:
1,200+ branches
~270 business centres
~3,000 Commercial frontline staff
The value of this connectivity is evidenced by a 29% growth in cross-border referrals HOH

ANZ strengths

Cross-border referrals

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29%
increase
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Cross-Border Cash Capability: ANZ Transactive

To further enhance our super regional offering we’re leveraging ANZ’s market leading capabilities in:
Trade finance:#1 in market share and #1 in customer experience[1]
Markets: ‘Best FX House in Australia’[2]
Cash Management: ANZ Transactive cross-border cash capability
Web-based Cash Management platform with cross - regional capabilities
Enables complete regional visibility over accounts, control over all accounts and financial information
Provides comprehensive range of payment so u l ti ons o rac t t k l oca an l d overseas paymen t s
Institutional customer share and Institutional customer experience; source East & Partners 2. AsiaRisk 2010

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Commercial - Business banking

Building momentum, creating capacity to grow

Growin g the balance sheet throu g h a focus on acquiring larger customers and improved share of wallet
Leveraging super regional connectivity and offering new services to customers (e.g. trade finance in RMB)
Introduced “ANZ OneSwitch” to make it easier for customers to switch their banking to ANZ via a simplified application and fulfilment process
Enhanced frontline skills and capabilities via sales leadership and coaching initiatives
Improved frontline productivity and capacity through continued centralisation of admin-related tasks

Outcome

Lending up 10% YOY, with a 35% increase YOY in average new-to-bank deal size
Strong growth in deposits (17% increase YOY)

FY11 lending book composition by key segments

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Net loans and advances incl. acceptances & deposits

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Commercial - Regional Commercial banking

Capitalising on opportunities for growth and supporting customers in need

FY11 lending book by key segments

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Regional Commercial[1]

Leveraging bank-wide sector expertise in Resources and Infrastructure to identify and capture Commercial opportunities within major projects, e.g. contractors and suppliers.

2 Agribusiness

Leveraging bank-wide Agribusiness expertise to capture farmgate business
Increased products per customer in the acquired Landmark customer portfolio by 60%
Supported customers impacted by natural disasters through the ‘Seeds of Renewal’ program, providing assistance to 40 separate community programs

Outcome

Despite unprecedented climatic conditions and other macro - level impacts , RCB 2H11 PBP grew 6%
Tight cost management led to positive revenue growth exceeding cost growth YOY
Lending flat YOY but up 4% in 2H11
Strong deposit growth HOH (4%) and YOY (17%)

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Net loans and advances incl. acceptances & deposits

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FY10 benefited from
Landmark acquisition and
internal resegmentation
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Non metro Small Business and Business Banking customers 2. Farmgate customers

Commercial - Small Business banking (SBB)

Leveraging ANZ distribution networks and enhancing customer experience

Ac q uirin g new-to-Commercial customers b y ta pp in g into the distribution networks of OnePath, Esanda and Retail’s affluent segment
Enhanced our innovation offering via the launch of “Business Insights”, the relaunch of SB Hub and partnering with Xero (online accounting solution)
Improved productivity through the roll out of SBB Assist: elimination of admin tasks from frontline staff – 10,000 frontline hours saved

Outcome

~16k net new customers in FY11[1] , with improved customer satisfaction
Product cross sell up 15% in FY11 (e.g. asset finance, commercial cards, wealth, etc.)
Deposits up 22% YOY
Lending up 12% YOY
PBP up 10% HOH and 15% YOY

FY11 lending book composition by sector

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Net loans and advances incl. acceptances & deposits

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Metro customers only. As at August 2011

Commercial - Esanda

Esanda is the market leader in

vehicle finance and a prime source of new-to-bank customers

Largest player in the dealer vehicle finance market
Market leading credit processing speeds (under 15 minutes to process new applications)
Rich source of new-to-bank consumer and Commercial customers:
~110k contracts settled per year
~75% of customers have no existing re at ons l i hi p w t i h ANZ
~80% of auto finance customers are consumers and small business clients
Provider of equipment finance products offered through ANZ
Leverages Esanda’s skills and technology platform
Fully integrated into ANZ’s Commercial and Corporate distribution networks.

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Esanda lending composition by
assets (Sep 11)
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Esanda lines of business

Auto finance and insurance products offering to dealerships and consumers
National presence and capability across metro and regional

Dealer (Auto Finance)

Relationships with over 200 dealer groups and over 700 car dealerships

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~300,000 active finance contracts
Over 9k deals written per month[1]
ANZ asset finance offering to commercial and corporate banking clients
ANZ and corporate banking clients
Asset
Finance • Offering include hire purchase , chattel mortgage, finance lease facilities, etc.

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Average Consumer & Commercial contracts per month over FY11 through the Dealer channel

Wealth (OnePath superannuation, Investments & Insurance and ANZ Private)

Strategic focus

Improving management bench strength appointed new management;
Distribution & Advice - Paul Barrett
Superannuation & Investments - Craig Brackenrig
CRO - Edith Pfister
CFO - John Frechtling
Well advanced search for new MD Wealth
Develop products to suit simple super environment
Improve penetration of bank customers through branches and anz.com
Complete roll out of new client service model to ANZ Private
Actively adapt to regulatory change agenda
Deliver service & functionalit y enhancements to front end systems

Business Performance

NPAT down 16% YOY and 15% HOH driven by revenue impacts from volatile market conditions
Negative investor sentiment given poor equity markets impacted OnePath FUM and E*Trade, FUM down 8% YOY and 10% HOH
Annual in-force premiums up 12% YOY and 6% HOH
Growth in retail insurance income was offset by higher general insurance claims due to catastrophic weather events
Expense growth (+3% YOY) due to higher levels of investment in strategic projects coupled with some restatements and one-offs
Lapse rates below industry average during 2011.

In-force annual premium growth

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Retail insurance lapse rates (Rolling 12 months)

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Wealth – Progress against strategic priorities

		Progress • Lifeinsurancelaunchedonanzcom($34mpremiums)and50+product
	Priorities Stepchangein
	ANZ customer base penetration	. . • Further increase MyAdvice (phone advice) volumes which doubled YOY through branches ($0.7m premiums) • Launched Affluent “Wealth Health Check.”
	C it li ap a se on opportunities Leverage mbindlth	• Capturing fee-for-service inflows on OneAnswer Frontier ($400m FUM1) • Maintain momentum in Retail life insurance, sales increased 29% YOY • Wealth business (previously INGA, ANZ Private and ANZ Investment and Insurancebusinesses)nowintegrated–nextstepstoimprovepenetrationof
	coe wea business Enhance core caabilitiesfor	broader customer base and drive further efficiency. • Automate key customer and adviser transactions to improve speed and accuracy – (60% of retail life insurance business coming through electronically) • Significant transformation of insurance claims management experience
	p Productivity future growth	• Service and functionality enhancements to the OneAnswer investment platform (including online switches, improved super to pension transfer process and term deposits with ~$200m FUM since 1 Sept) • Managing within a constrained environment – prioritised investment spend and improving cost efficiency
		F t li i d t d di i d b k f h f ti • ocus on cen ra s ng an s an ar s ng processes an ac o ouse unc ons.

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As at 30 September 2011

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Investor Discussion acP k
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Asia Pacific, Europe & America (APEA) Division

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Asia Pacific, Europe & America Division (APEA) - building a leading super regional bank

APEA achieved another year of significant growth in FY 2011…

Revenue increase of 22%
NPAT grow th o f 20%
Customer deposit growth up by 40% ($18b) and lending growth up by 44% ($12b)

…while continuing to execute our longer term organic growth strategy…

Balanced business - growth in selected geographies, segments and products
APEA Retail grew to 36% of APEA total revenue
APEA Institutional contributed 26% of Global Institutional revenue in FY11
C onnec ti v it y - across th e ne t wor k , an d i ncreas ng y n i l i t ra Asia – intra-Asia revenue up 40% in 2011
Investment discipline – finding investment dollars from cost savings
Balance sheet strength - improving the deposit base and credit q ualit y – g reater than 50% CAGR in loans and deposits over the last three years
Brand recognition – Institutional and Commercial recognition more than doubled from 2010

…and completing our acquisitions successfully

RBS Integration – all phases completed b y FY11 , res u lting in USD130 million of savings over 4 years from 2010

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APEA Division Revenue
(USD m)
2,556
37% CAGR
2,091
1,870
1,184
15%
716
8%
1
% APEA Contribution to Group Revenue
APEA Division Net profit after Tax
(USD m)
739
31% CAGR
617
543
393
253
1
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Includes Europe and America results not included in originally reported figures

APEA Division financial performance strengthened, despite markets trading headwinds in the second half

Pro forma NPAT movement – FY11 v FY10 Up 20% Ex-Global Markets Global Markets

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Pro forma NPAT movement – 2H11 v 1H11
Down 9%
Ex-Global Markets Global Markets
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Revenue is growing in key strategic geographies customer segments and products

		Revenue is growing in key strategic geographies customer segments and products
		Geographies Customer Segments Products Franchise Markets • Greater China, Indonesia, SingaporeGreaterMekongandthe Institutional • Cash • FX & Institutional • Natural Resources • Financial
	rities
	Strategic Prio	, Pacific Network Markets • Europe and America, Japan, Korea and India Management • Trade Commodities • Global Capital Markets Retail & Wealth • Investments • Deosits • Insurance • Agriculture • Infrastructure Institutions • Commercial Retail & Wealth • Affluent • Emerging Affluent
		p
	enue Growth1
	FY 2011 Rev
	Achievements	• Locally incorporated and established operations hub in China • Commenced operations in India and opened 1st branch in Mumbai • Offshore RMB services launched • Completed RBS integration across 6 geographies • Refocused Retail & Wealth business on Affluent and Emerging Affluent • Launched Commercial segment, building on RBS acquisition • Deepened industry specialisation in Natural Resources, Agriculture and Infrastructure • Cash platform on track for delivery in Singapore and Hong Kong • Expanded Markets and FI sales distribution, and substantially improved position in league tables for debt capital markets in Asia • Expandedwealthproductmenuand
	y Ke	product specialists menu in Retail & Wealth

1: 2010 and 2011 underlying FX adjusted, excludes partnerships

Connectivity is a key differentiator for ANZ, driving revenue growth across the network

Intra Asia connectivity becoming increasingly important

ANZ ’ s Asian business intra region cross - border revenues expanded –up 40% YOY
Macro concerns in Europe and America curtailed cross-border income from these markets
Trade transaction volume increased 58% YOY and 25% HOH
RMB cross-border trade approval in Hong Kong with about 1,000 corporate customers having already booked offshore RMB transactions
• Offshore customers represent 35% of the our Retail Banking customer base in Singapore and H ong ong K

APEA Cross-Border Income[1] (AUD m)

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864
801
40%
Intra-APEA
Australia/NZ
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Expanding footprint in China, India, Dubai, London, and New York, while
Institutional continuing to develop key markets of Indonesia, Singapore, Hong Kong and Japan
Framework implemented to capture Retail connectivity in the region has
Retail & Wealth resulted in a 10 fold increase in cross-border referrals HoH
Partners leverage on ANZ’s core capabilities in Australia and other markets for customer referrals and connectivity
Partnerships
e.g. SRCB and AMMB customers moving to Australia can open ANZ Australia accounts prior to arriving in Australia

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1: 2010 and 2011 translated at constant FX rates

Growth has driven diversification across APEA as Asia Retail and Northeast Asia have expanded

APEA segments percentage of Group revenue FY07 vs FY11

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15%
8%
Partnerships & Other
Asia Retail
Pacific Retail
Institutional & Commercial
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APEA geographies percentage of Group revenue FY07 vs FY11

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15%
8%
Europe & North America
North East Asia
South East Asia
Pacific
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Tight cost disciplines and improving efficiency are helping to fund front-line investment

Improving efficiency

Focused on reducing enablement/back-office costs while continuing to invest in revenue-generating capabilities
�Enablement Centralisation Program

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~12,100
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APEA FTE (including contract employees)

�Operational efficiency initiatives
�Reduced ~230 FTE in Enablement
�Reduced ~130 FTE in Retail & Wealth and Private Bank

Investing to grow revenue generating capabilities

Build-up of front-office and support staff, continued investment in systems, distribution and branding:
�Increased ~160 staff for Commercial and Institutional businesses
�Initiated Global Investment Program to build core banking, cash management, trading and sales capabilities
�New Branches opened in India , China , Dubai and PNG

Additional cost synergies achieved in acquired RBS businesses

Restructure of the Retail Business
Alignment with Affluent Strategy away from Mass Market

~11,900

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Asia Retail Cost to Income[1]

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Asia Retail underlying (excluding Pacific Retail & Private Bank Asia)

Increased net funding while improving the credit quality of loan portfolio and growing the balance sheet

Significant Volume growth
Credit Quality Improving
Self Funding
75% Net Loans & Advances <1 year duration

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Customer Deposits Net Loans & Advances APEA Institutional Risk Grade profile
by Exposure at Default
(incl. acceptances)
63
53% CAGR
AAA-BBB
45
BBB-
51% CAGR
38
BB+~BB-
27 26 BB-
>BB -
17
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Brand awareness has significantly improved across all of our customer segments

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Brand awareness [1 ] across Hong Kong, Singapore and Taiwan
Average Percentage, 2010-2011 2
3
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Includes both Prompted and Spontaneous awareness, arithmetic average across all three markets
Based on ANZ Brand Health Tracker study 2010, Hall & Partners
Based on ANZ Brand Campaign Tracking 2011, Hall & Partners

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Integration of acquired RBS businesses into ANZ was completed in October 2011

Completed complex integration in 6 Asian markets

Building a larger and more capable bank on the integrated business

Effective management of a complex integration

6 markets
1.8 million customers
6,500 Staff

Enhanced frontline

New frontline pricing tools
Enhanced channels
New risk & sales governance
New call centres
54 Branches
4 different business segments: Retail & Wealth, Private Bank, Commercial & Institutional

New Platforms

New credit cards platforms
New core banking – Institutional/ Commercial

Realising real value from acquisition

~ USD$130m in Cost Saving projected over 4
years from FY10 to FY13
Renegotiated/reviewed 3,500 supplier contracts
I n t egra t e d new revenue p a l tf orms across ( Retail, Wealth and Private Bank)
New general ledger
New payments platforms
New risk feeds
New regulatory reporting

Commercial presence & more scale o t

business

Consolidated and built 3 new data centres
1,200 new systems interfaces built
6 , 200 standard deskto p s re p laced / rebuilt
800 standard servers replaced / rebuilt

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APEA Institutional: Executing to a clearly articulated strategy

Revenues up 29% YoY as customer franchise strengthens

Targeting sectors aligned to global strengths and with significant regional growth prospects

Natural Resources
Agribusiness
Infrastructure
Financial Institutions

Increasing geographic significance

APEA contributed 26% of Global Institutional revenue in FY11

Customer numbers continue to grow

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+41% CAGR
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Asia revenues grew 38% FY11
New Institutional branch builds in India and Middle East

Building diversified product revenue with reduced reliance on Trading

Significant growth in revenue in Trade Finance (51% YOY) and Cash Management (59% YOY)
Ongoing investment in Transaction Banking cash platform
Global Markets product expansion and platform development

Growing client base and deepening relationships

Asia customers grew 33% FY11
Maximising network flows with client revenues within APEA up 40%

Institutional Client revenue growing[2] (AUD m)

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+47% CAGR
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Excludes Commercial

Excludes markets trading and amortisation impact of annuity business

APEA Retail: Growth in wealth driving business expansion in Asia

Substantial repositioning of Mass to Affluent / Emerging Affluent

Revenue up 18% amidst repositioning and volatile market conditions
Growth in Wealth Management revenue contribution - up from 14% to 22%
Significant CTI improvement - 8% in Asia retail underlying, 2% overall pro forma
Channel expansion – mobile banking roll out in Fiji and Taiwan

Growing Signature Priority Banking (SPB) proposition

Presence in 10 markets (6 Asian markets and 4 markets in the Pacific) up from 6 in 2010
Monthly SPB customer acquisition growth of 29%
Average product holding per customer increased by 14%

Expanded product suite

Launched mortgage offering in Singapore, Taiwan and Indonesia
Expansion in Wealth Management product offering - 400 mutual funds, 25 bancassurance products, 450 Exchange Traded Fund’s

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Customer growth despite portfolio
repositioning
Customer Numbers (‘000s)
+51%
2 ,5 00
2,450
1,100
Building Revenue (USDm)
+34% 930
786
347
342
290
Growing Funding Base
Loans & Deposits
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Investor Discussion acP k
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Institutional Division

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Institutional – executing to a clearly articulated strategy

• Targeting sectors with existing strength and significant regional growth prospects

Natural Resources

Institutional Division Underlying Net profit after Tax ($m)

A gr cu i lt ure
Infrastructure

• Increasing geographic diversification

APEA 26% of Institutional revenue FY11 (20% FY10)
Asia revenues grew 38% FY11

• Diversifying product range and reduced reliance on lending

Trade finance revenue up 29% YOY
FX revenues up 22% YOY
Cash management revenue up 13% YOY

• Grow client base and maintain strong relationships

Acquired 1,300 new relationships, growing client base 8% YOY
Asia Pacific client base grew 15% FY11
Ranked first in terms of overall institutional relationships and lead bank relationships across Australia and New Zealand (combined across both markets as measured by Peter Lee Associates)

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35% CAGR

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• Improving risk profile of business

Net impaired assets down 27% YOY

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Institutional – Financial Performance

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Pro forma NPAT movement – FY11 v FY10
Up 9%
Ex-Global Markets Global Markets
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Pro forma NPAT movement – 2H11 v 1H11
Down 15%
Ex-Global Markets Global Markets
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Identified priority sectors where we have existing strengths to build upon

Priority Sectors

Priority Products

Natural Resources

In target sub-segments – minerals & mining, oil & gas, primary processing, primary services and commodity trading.
Focused on capturing Australia/NZ – Asia/Pacific trade supply and demand chain flows.
Lead bank to sector in Australia and growing Asia/Pacific franchise offering opportunity to assist both producers and consumers

Agriculture

Clear emphasis on customers with flows into and within the Asia Pacific region.
Focused on providing markets, working capital and supply chain solutions.
A particular focus on cotton, coffee, cocoa, grains and oilseeds, sugar, dairy and protein.

Cash Management

A leading provider of cash management and working capital solutions in Australia and NZ via ANZ Transactive, the first trans-tasman internet banking platform
Continued build and roll-out of Asian Cash Mana g ement ca p abilit y across 11 countries

Trade

Provides trade finance and supply chain solutions to our customers that manage risk and liquidity and support a deepening of customer relationships.
ANZ is the leading trade and supply chain bank in Australia and NZ, delivering superior sales and service underpinned by a global proposition with teams on the ground in 28 countries.

FX & Commodities

Infrastructure

Target customers and investors operating in power & utilities, roads, rail, airports, ports, water, waste and social infrastructure.
Primary focus is to support customers in the Asia Pacific region whilst remaining dominant in Australia and New Zealand.
Continue to position as infrastructure specialists.
Building on our strong Australian and New Zealand Corporate businesses to expand into Asian currencies and clients
Emphasis on building a high-frequency global flow and trading Corporate and Institutional business in four hubs , and on growing our business with Financial Institutions (which account for ~90% of all global FX volumes)

Benefits emerging through growth in priority sectors and products

Institutional Division Client revenue growth FY11 vs FY10

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Growth has been achieved through:

A global specialised relationship model offering industry expertise and a broader product proposition has seen priority sectors achieve superior growth
Natural Resources - Asia revenues up ~40% with significant increases in Markets and Trade products

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Agribusiness - Asian revenues up ~80%, again with significant increases in Markets and Trade products
Infrastructure - predominantly growth in Australian revenue from large domestic infrastructure projects augmented by a lift in Asian revenue momentum.
Trade – 29% revenue growth reflects continued increase in client relationships. ANZ maintains a leading position in the Australian and New Zealand trade markets and growing presence in Asia which now represents over 50% of total trade revenue.
Over 85% of growth in our FX business occurred in APEA due to better penetration of our client base, product diversification and a focus on Financial Institutions clients
In Australia, our share of Australian FX turnover increased from 6.3% at the end of September to 11.8% in September (as measured by the RBA)
The only bank offering a trans-tasman cash management platform , with Singapore and Hong Kong to be added to system the by end of 2011

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More diverse, self funded loan growth

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

Institutional Lending and Deposits Institutional Trade Lines
Funded & Unfunded
39
Net Loans & Advances Customer Deposits
(incl. acceptances) 30
$13b Growth YOY $20b Growth YOY 22
117.4
97.7
91.2
78.7 79.8
75.6
Asia Funded Trade Lines
11
7
3
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Investment in the strategy

Majority of FY11 cost growth relates to investment in de risking and supporting immediate and longer term growth initiatives

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Back / middle office FTE
• Risk management systems • Payments infrastructure • Productivity initiatives • Process automation

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Cash management platform
• Markets FX engine • Pricing tools
Salary CPI
Reduce Back / Middle Office FTE • Frontline FTE
• C us t omer sys t ems M ar k e t s sa es, e a l R l ti ons hi p M anagers • Markets technology

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P r o d u c t i v i t y f o c u s e v i d e n t i n n e a r t e r m c o s t g r o w t h

Institutional Operating Expenses Growth Pro Forma HOH

Initiatives in train to maintain cost trajectory

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Institutional Operating Expenses Quarterly Trend

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Process automation and enhancement

Enhanced markets operations platforms and processes
Automation of data p rocessin g ca p abilities to reduce manual intervention

Increased utilisation of regional hubs

Operations streams are now managed as g lobal functions throu g hout Australia , New Zealand and Asia

Streamlining regional and global enablement support

Creatin g o pp ortunities to share regional/functional resources and infrastructure
Aligning business and support structures to future business requirements

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Improved credit quality

Institutional net impaired assets by size and as % NLA

Institutional risk grade profile by exposure at default

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AAA-BBB
BBB-
BB+~BB-
BB-
>BB-
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Diversification of client base and revenues

Revenue mix[[1]]

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Institutional client base Revenue mix [[1]]
7,464
6,924
6,382
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Underlying basis

Cash management business delivering connectivity

Significant progress made in 2011

Connecting our customers ’ transaction banking needs across Australia and New Zealand is a key differentiator.
Customers can perform a range of cash management activities through a single internet channel:
Record number of multi-country Cash Management mandates won in 2011
Strong growth in the number of payment transactions processed in Asia via internet channels
Over 7,800 clients have been on-boarded to ANZ Transactive to date:
3,923 clients on-boarded to ANZ Transactive Trans-Tasman solution in Australia and New Zealand
3,909 clients on-boarded to ANZ Transactive Asia
We will continue to add functional enrichments, with the planned rollout of the enhanced ANZ Transactive platform to 11 key Asian markets:
Singapore and Hong Kong enhancements to occur in November 2011
Remaining 9 key Asian markets will be brought online by 2013

ANZ Transactive trans-tasman sites and usage

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Global Markets Performance

Strategy to increase client flow revenues is delivering

Revenue down 11% YOY and 31% HOH due to difficult macro conditions in traded risk and balance sheet management
Trading and balance sheet related revenues were down 36% YOY and 70% HOH
A strong Markets sales performance across all geographies and products has partially offset lower trading revenues with sales revenues growing 13% YOY
APEA sourced revenue was up 25% YOY driven by expansion of capabilities throughout the region
The FX business continued to expand in the second half 2011 with a 7% uplift in FX sales revenue HOH
The Commodities business doubled 2010 revenues with strong trading and sales performance
Australian results were impacted by balance sheet and trading revenues, including a widening of credit spreads on the Australian liquidity portfolio

Global Markets revenue pro forma FX adjusted

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Global Markets revenue QOQ

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Global Markets product offering

Global Markets delivers innovative product solutions through specialist teams operating across the Asian region

Global Markets revenue mix

		•Interest rate risk hedging for clients •Pricing and risk management of credit
	Fixed Income	i nstruments •Management of the bank’s liquidity portfolios and Trading of position risk
		•Foreign exchange risk management
	Foreign Exchange & Commodities	advice and products for clients •Commodity price risk advice and management •Commodity derivatives (e.g. gold, soft commodities and energy)

	Global Capital Markets	•Origination and distribution of credit products •Corporate and Financial Institutions sourced listed and unlisted Bonds
		•Syndicated Loans •Securitisation

Sales, trading and balance sheet revenue

Global markets business focussed on client driven risk management and trading activity Also management of ANZ’s own liquidity and balance sheet risk management

Global Markets revenue composition (pro forma)

	Sales	•Direct client flow business on core products such as Fixed Income, FX, Commodities and Debt Capital Markets (DCM)
	Revenue	•Continued growth in FY11 through continued focus on client acquisition •Growth of client flows in APEA
		•Trading represents management of positions taken aspart of direct client sales flow and
	Trading Revenue	strategic positions •Trading in the rates and credit product, in line with balance sheet trading •Difficult trading conditions particularly in Q4 with both domestic and global
		i l ili macroeconom c vo at ty
	Balance Sheet Revenue	•Management of interest rate risk for the loan and deposit books •Management of the bank’s liquidity position •Impacted in Q4 bythe wideningof credit
		spreads on semi government bonds to swap hedges with market movements taken at Fair Value through the Profit and Loss

Global Capital Markets - becoming a leading Asia Pacific capital markets specialist

Achieved a number of milestones in 2011

A number of first in offshore RMB/CNH market

Corporate and frequent issuer bonds league table rankings

Joint Lead Manager for First offshore bond for an A u stralian bank
Joint Lead Manager for First offshore bond for a Japanese corporate
Joint lead manager for ANZ's first syndicated loan for a Chinese sovereign entity
C omp e l t e d ANZ' s Fi rs t K orean secur iti sa ti transaction
Arranged the first syndicated loan by a foreign bank in Vietnam
Fastest execution of a secured bond transaction in Singapore Market YTD

Extended leading position in domestic markets

No. 1 bond issuer in Australia with 19% market share YTD 2011
N o. 1 b on d i ssuer n ew ea an i N Z l d w t i h 49% mar k et share YTD 2011

Deepened our presence in Asia

Increased cross border deals across Asia with greater distribution into Europe and America
Grew APEA GCM revenue 77% FY11

Category	Rank	#	Amount
		Deals	Arranged
Australia (ex-self led)	1	57	AUD11.5b
New Zealand (ex-self led)	1	30	NZD2.0b

SGD	3	11	SGD1.4b
Asia Pacific ex-Japan	8	102	USD12.2b
Source – Bloomberg as at end 3Q11
Loan syndications mandated arranger league table rankings
Category	Rank	# Deals	Amount Arranged
			USD
Asia-Pac ex-Japan	1	182	$18.6b
Australia	1	81	$11.3b

Asia	10	77	$ 4.7b

Source – Thompson Reuters as at end 3Q11

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101

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Investor Discussion acP k
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

New Zealand Businesses

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New Zealand Businesses - simplification & efficiency

Simplifying the business

Have simplified the management structure
Pro g ressin g with p rocess and p roduct sim p lification

Profit before provisions[1] NZDm

Moving to one IT system

Improved customer and employee engagement

Increasin g customer satisfaction – u p 3% YOY for both ANZ and NBNZ
Improved staff engagement scores
External recognition (awarded the two best banking brands New Zealand’s Sunday Star-Times Canstar Cannex Bank of the Year Award)
Research indicates strong awareness of ANZ's sponsorship of the 2011 Rugby World Cup and increased overall ANZ brand awareness

Managing for changed conditions

Cost focus – aiming to be the most efficient bank in New Zealand with lowest CTI
Return focus – profitable growth, improved ROE, margin management
Risk focus – manage to the changed economic settings

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103

FY08 Underlying; FY09-FY11 Pro Forma

New Zealand Businesses – financial performance

Pro forma Pro forma NPAT movement – FY11 v FY10 Growth Rates (NZD) Up 55% Pro forma NPAT movement – 2H11 v 1H11 Flat

104

New Zealand Businesses - balance sheet management

Net Interest Margin

Retail

Mortgages – have held share in the <80% LVR market and taken a more conservative approach to growth in >80% LVR segment
Deposit strategy focussed on growing better quality at call and savings accounts (up 15% YoY)
A disciplined approach to pricing on term deposits also achieved a margin improvement of 15-20bps on term deposit portfolio

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Net Loans & Advances Customer Deposits (incl. acceptances)

Commercial

Continued strong Dairy sector pay-outs driving deleveraging in the Agri sector
1.4x system lending growth in Business Banking
Continued working with customers to achieve more sustainable debt levels resulting in a reduction in the level of impaired loans.
A focus on credit quality has seen a reduction in Commercial and Agri net impaired assets of 26% HOH

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88 . 3 88 . 4 86 . 8
51.1 50.2
48.3
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105

Simplification program progressing well with good made in 2011 progress

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New Operating Model

New regional management approach that simplifies decision making across all businesses
Merged Commercial and Agri businesses to ensure an integrated focus right across the agribusiness sector
Made Business Banking a stand alone business focussed on the needs of small business customers
Simplified product set (reducing retail products from 140 to under 100)

Simpler Product and Fee Structure

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Over 380,000 customers migrated to end state products with minimal negative feedback
N ow eas er or cus i f t omers o ransac t t t across o b th th e ANZ an d NBNZ networks
Expenses down 2% YOY
Improved staff engagement

A Stronger Business

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Increased levels of customer satisfaction
Additional productivity gains available in 2012 and 2013 from move to a single platform
An FY11 after tax charge of NZD111m has been taken outside underlying earnings with respect to this programme

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106

Super Regional capabilities provide real differentiation

Leveraging our Super Regional capabilities

Migrant Banking – on track to exceed 10,000 new customers through migrant banking channel this year
Wealth – migrant investor program targeting high net worth investors
First major New Zealand bank to have Chinese Renminbi (RMB) trade settlement deal capability
Set up first full payments and cash management implementation between ANZ New Zealand and ANZ China
Only New Zealand bank to structure Export Credit Agency funding, with over NZD200m of deals

Investing to further strengthen capabilities

Now have 61 retail branches with dedicated Chinese and Indian specialists
Established multilingual call centre with Mandarin, Cantonese, Korean and Hindi capabilities
Asian specialist team in Private Bank business managing 1,200 clients and NZD2b in assets
Launched ANZ Transactive, the first trans-Tasman internet banking platform for Institutional and Commercial customers
Cross-border connectivity - established single points of contact (“Asia desk”) for intra-region customer referrals

Providing leadership on New Zealand’s growing opportunities with Asia

Partnerships with Education New Zealand and Ministry of Ethnic Affairs to support migrants
Supporting linkages with India through partnerships with the India business forum and joining the NZ Prime Minister ' s recent trade delegation to India
Business Banking China tour provided 25 delegates the opportunity to build connections in the Chinese market

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107

Retail & Wealth - simplifying our business to make banking easier for customers and staff

Simplification initiatives undertaken across

business

Re-engineering processes to allow frontline staff to spend more time with customers
Progressing optimisation of product portfolio with 140 products reduced to under 100 products to date
Opened new branches in key locations around Auckland

Program already yielding results

Productivity gains from simplification drove flat cost growth FY11 and a 3% reduction in costs 2H11
Increased retail customer satisfaction to record levels
Contact Centre recognised as the best in financial services in NZ at the CFM Contact Centre Industry awards

Wealth position continues to strengthen

OnePath #1 in the Retail Managed Funds market
Awarded the Morningstar KiwiSaver Fund Manager of the Year – KiwiSaver is NZ’s primary retirement savings initiative
Divested non-core property businesses
Insurance profitability improved – favourable claims experience and reduced lapse rates

Customer satisfaction at historic highs[1]

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OnePath KiwiSaver FUM

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1 Source: Nielsen Consumer Finance Monitor

108

Commercial & Agri – unlocking value by bringing segments closer together

Managing for a lower growth environment

Disciplined management of risk, balance sheet and expenses

Enhanced customer focus

Unrivalled coverage, with customers having access to more relationship managers in more locations than any other bank
Continued investment in frontline efficiency and training to enhance relationship skills
Customer satisfaction stable in a highly competitive environment
Supporting customers through the economic cycle via customer forums and thought leadership, e.g. Viewpoint papers; Economy in 5 courses; Better by Design partnership; Farming for Profitability sessions
Working with customers to assist them in achieving more sustainable debt levels

Leveraging Super Regional connectivity

By connecting customers to our Super regional network we are differentiating ourselves in the New Zealand market, examples include:
Connecting a South Island Agri client to ANZ Indonesia who provided insights on the local market and assisted in facilitating new trade into Indonesia
Linking a commercial client to ANZ teams in Fiji and Australia and assisting expansion into new markets
Introducing wine production clients to the ANZ China team and help them commence distribution into the lucrative Chinese market.

Lending Composition By Segment

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Dairy Milk Payout/Price

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109

Business Banking – ANZ has a compelling growth proposition in Small Business

Strong performance in FY11

Maintained #1 market share position
Customer satisfaction improved from 87% to 88%[1]
Lending growth 1.4x system
Staff engagement lifted from 60% to 70%
Profit improvement from increased revenue and reduced costs

Increased coverage of small business customers

More Business Bankers in branches and in a greater number of locations

Small Business a significant part of the NZ economy

90% of NZ businesses employ 5 or fewer staff[2]

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Small Business workshops – attended by 5,000 customers
Launch of the ANZ Biz Hub, a market leading online customer site supporting small business
Assisted more than 4 , 500 customers in the last two years with our business start-up package (providing business advice and a transactional account, fee-free for one year)
High growth potential with low risk as majority of lendin g is mort g a g e based

Good growth in both margin and volume

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1 Source: TNS Business Finance Monitor Sep 2011 2 Source: NZ Department of Statistics Feb 2010

110

New Zealand Businesses - credit quality

Total impaired assets

Total provision charge

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531
351
247
165 98 119
90+ Days arrears
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111

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Investor Discussion acP k
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

2012 Q1 Trading Update (17 February 2012)

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ANZ released FY12 Q1 trading update on 17 February

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A$m

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Key Highlights (QOQ)

Q1 (3 months to 31/12/11) Underlying profit* up 4.6% QOQ (up 4.1% pcp)
Statutory profit (unaudited) for Q1 was $1.7b
G roup PBP up by 6% (or 8% FX adjusted) to $2.3b
Total Provision charge $239m
T ota l P rov s on coverage# i i hi g h at . 1 86 %
Group customer deposits up ~2%
Group lending increased by ~2%
Net interest margin (ex Markets) down 1bp
Impaired assets down $65m to $5,516m

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Note:

*Underlying profit is unaudited and adjusted for non core items
Total Provision coverage = collective provision balance plus individual provision balance as a

proportion of Credit Risk Weighted Assets

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113

Provisions remain at or below long term averages

Provision charge remains at low levels

Total Provision Charge

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(IP charge by Division and total CP charge)
A$m
1,098
722
660
551
Expected Range
239

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1Q12 provision charge annualised

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114

Key points from the ANZ Q1 Trading Update:

ANZ is growing and diversifying its customer and revenue base in line with its Super Regional Strategy.

In Australia , deposit growth remained strong , asset growth was driven largely by mortgages and delinquency trends in the mortgage portfolio continued to improve

In APEA , quality & diversity of earnings streams continue to improve, deposit growth exceeded loan growth, there were positive income/expense jaws as income benefited from rebound in Global Markets income as well as growth in Trade income while expenses benefited from the RBS integration program

In NZ , while economic growth is subdued our business momentum remains positive, the business simplification program is underway delivering some early cost improvements, credit quality has continued to improve as has the business margin

The Balance sheet remains strong with a diversified funding profile (range of domestic and offshore sources as well as in both senior unsecured and covered bond format):

The 2012 term wholesale funding task is in line with 2011 around $20b of which ~$9b has already been raised year to date
The capital position at the end of the first quarter remained strong with a Tier One ratio of 11.03% and a Core Tier One ratio of 8.7%

Asset quality has improved:

Total impaired assets were down $65m to $5,516m, reflecting further slowdown in new impaired assets
Q1 provision charge of $239m
’
• Provision coverage remains high (total provisions to Credit RWA s: 1 . 86%)

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115

Global Markets income recovered somewhat in 1Q12

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Global Markets Income (FX Adjusted)
$m
600 Total Income Sales Income Trading & Balance Sheet Income
500
400
300
200
100
0
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
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116

Global Markets customer sales income at record highs

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Trading & Balance Sheet Income
Sales Income (FX Adjusted)
(FX Adjusted)
$ m Quarterly Sales Income $ m Quarterly Trading & Balance Sheet Income
400 Quarterly Average 2008 400 Quarterly Average 2008
Quarterly Average 2009 Quarterly Average 2009
Quarterly Average 2010 Quarterly Average 2010
Quarterly Average 2011 Quarterly Average 2011
300 300
200 200
100 100
0 0
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
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117

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Investor Discussion acP k
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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

2011 Financial Result

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Overview of financial performance

	2011 $m %	2011 $m %
	2011
	$m %
	Underlying Profit 5,652 +12%
	Operating Income 16,812 +7%
	E xpenses 7,718 +11% Provisions 1,211 -33%
	Statutory Net Profit After Tax 5,355 +19%

	EPS (cents) 218.4 +10%
	Dividend per Share (cents) 140 +11%
	Net Interest Margin 2.46% -1bps
	Customer deposits 296,753 16% Net loans and advances1 397,285 8%

All figures other than Statutory Net Profit after Tax and Dividend are presented on an underlying basis. 1. Including acceptances

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119

2011 Full Year

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Performance FY11 v FY10
3% 33%
Up 12%
Up 19%
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Performance 2H11 v 1H11

1H11 Statutory Profit Non-Core Items 1H11 Underlying Profit Profit Before Provisions Provisions Tax & OEI 2H11 Underlying Profit Non-Core Items 2H11 Statutory Profit 2,664 154 2,818 (124) 109 31 2,834 143 2,691	1H11 Statutory Profit Non-Core Items 1H11 Underlying Profit Profit Before Provisions Provisions Tax & OEI 2H11 Underlying Profit Non-Core Items 2H11 Statutory Profit 2,664 154 2,818 (124) 109 31 2,834 143 2,691	1H11 Statutory Profit Non-Core Items 1H11 Underlying Profit Profit Before Provisions Provisions Tax & OEI 2H11 Underlying Profit Non-Core Items 2H11 Statutory Profit 2,664 154 2,818 (124) 109 31 2,834 143 2,691	1H11 Statutory Profit Non-Core Items 1H11 Underlying Profit Profit Before Provisions Provisions Tax & OEI 2H11 Underlying Profit Non-Core Items 2H11 Statutory Profit 2,664 154 2,818 (124) 109 31 2,834 143 2,691	1H11 Statutory Profit Non-Core Items 1H11 Underlying Profit Profit Before Provisions Provisions Tax & OEI 2H11 Underlying Profit Non-Core Items 2H11 Statutory Profit 2,664 154 2,818 (124) 109 31 2,834 143 2,691	1H11 Statutory Profit Non-Core Items 1H11 Underlying Profit Profit Before Provisions Provisions Tax & OEI 2H11 Underlying Profit Non-Core Items 2H11 Statutory Profit 2,664 154 2,818 (124) 109 31 2,834 143 2,691	1H11 Statutory Profit Non-Core Items 1H11 Underlying Profit Profit Before Provisions Provisions Tax & OEI 2H11 Underlying Profit Non-Core Items 2H11 Statutory Profit 2,664 154 2,818 (124) 109 31 2,834 143 2,691	1H11 Statutory Profit Non-Core Items 1H11 Underlying Profit Profit Before Provisions Provisions Tax & OEI 2H11 Underlying Profit Non-Core Items 2H11 Statutory Profit 2,664 154 2,818 (124) 109 31 2,834 143 2,691
Non-Core Items	1H11 Underlying Profit	Profit Before Provisions	Provisions	Tax & OEI	2H11 Underlying Profit	Non-Core Items
154	2,818	(124)	109	31	2,834	143

		Down 3%	Down 17%		Up 1%		Up 1%

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120

Impact of trading income and provision trends 2H11

Impact of trading income and provision trends 2H11	Impact of trading income and provision trends 2H11	Impact of trading income and provision trends 2H11	Impact of trading income and provision trends 2H11	Impact of trading income and provision trends 2H11	Impact of trading income and provision trends 2H11	Impact of trading income and provision trends 2H11
Performance 2H11 v 1H11

Down 70% Up 3% Up 2% Down 17% Down 3% Up 1%
Performance FY10 v FY11 FY10 Ti I FY11
FY10	Ti	I
Underlying Profit	radng Income	ncome ex-Trading	Expenses	Provisions	Tax & OEI	Underlying Profit 5,652 Up 12%
5,025	(337)	1,367	(747)	609	(265)
	Down 36%	Up 9%	Up 11%	Down 33%	Up 13%

			U 8% p Pro Forma

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121

Trends September Quarter 2011

Trading Income weaker than expected Lower provision charge Higher recoveries & write-backs driven by Release of collective flood provision taken Institutional division in 1H11

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122

Adjust for acquisitions & FX – The Pro Forma Numbers

Revenue Expenses Profit before Net Profit after Tax Growth FY11 v FY10 – Underlying & Pro forma	Revenue Expenses Profit before Net Profit after Tax Growth FY11 v FY10 – Underlying & Pro forma	Revenue Expenses Profit before Net Profit after Tax Growth FY11 v FY10 – Underlying & Pro forma	Revenue Expenses Profit before Net Profit after Tax Growth FY11 v FY10 – Underlying & Pro forma
P i i rov s ons Ex-Trading Ex-Trading
7.6% 7.0%
Growth 2H11 v 1H11 – Underlying & Pro forma
Revenue	Expenses	Profit before Provisions	Net Profit after Tax
Underlying Pro forma	Underlying Pro forma	Underlying Pro forma	Underlying Pro forma
(0.6%) (0.8%)	2.0% 2.4%	(2.7%) (3.4%)	0.6% (0.1)%
Ex-Trading 2.9%		Ex-Trading 3.3%

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123

Divisional overview

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Net Profit after Tax (Pro Forma)
2H11 v 1H11 2H11 HOH FY11 YOY
1,445 8% 2,777 2%
353 (9%) 739 20%
867 (15%) 1,895 9%
451 0% 904 55%
Profit Before Provisions (Pro forma)
2H11 v 1H11 2H11 HOH FY11 YOY
2,361 2% 4,673 5%
491 (9%) 1,030 17%
1,314 (17%) 2,905 (8%)
755 2% 1,493 13%
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124

Net Interest Margin

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Movement 2H11 v 1H11 (bps)
280.9 Down 0.6 bps ex-markets 280.3
Down 3.0 bps
Movement FY11 v FY10 (bps)
F un di ng &
FY10 Funding Costs Deposits Assets Other Markets FY11
Asset Mix
247.4 2.8 (3.4) (7.8) 16.3 (1.1) (8.5) 245.7
Down 1.8 bps
273.9 Up 6.7 bps ex-markets 280.6
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125

Net Interest Margin

Net Interest Margin 2H11 v 1H11

Net Interest Margin

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Institutional
Australia Division
ex-Markets
Down 2bps Down 17bps
New Zealand APEA Division
Businesses (NZD) ex-Markets (USD)
Up 6bps Down 36 bps
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126

Operating Expenses

Operating Expense Growth Pro Forma HOH

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Group Operating Expense growth
Australia New Zealand
Group
5.5% Division Businesses
4.1%
2.4%
APEA APEA
Institutional
Institutional ex-Institutional
127
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Continue to invest for future growth and productivity

Operating Expense Growth Pro Forma FY11 v FY10

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Risk management systems
Payments & IT infrastructure
Back & middle office FTE
Frontline FTE in Institutional & APEA • Institutional cash management platform rollout, Global Markets systems
- Investment in regional support hubs
- Operational process transformation
- Super Regional Sourcing program
  - Regional support hubs
  - New Zealand simplification
  - RBS, One Path and Landmark integration synergies

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128

Credit quality is improving

Total Provision Charge

New Impaired Assets

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1,621 3,600
1,435
3,126
3,035
1,098 2,319 [2,437]
1,842
722
660
551
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129

Collective Provision Charge & Management Overlay

Economic Cycle & Concentration (Management) Overlay Balance

Collective Provision Charge

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Additional natural disaster overlay Total charge $8m

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130

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

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

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_2012-03-20_e0c8f065-c9d8-4c93-ae25-2bc651cc8692.pdf

ANZ has established a strong business foundation

A clear company wide focus on our super regional strategy:

ANZ is structured by Geography & Segment

Australia

Coherent strategy – driving competitive advantage

Geographic opportunity

Cross-border customer focus

Delivering Super Regional performance momentum

OUTPERFORM AND TRANSFORM

OUTPERFORM

RESTORE

Super Regional - driving long term growth and differentiated returns

Super Regional strategy is based on three core stren ths g

1. Strategy aligned to Asian growth

2. Leveraging regional customer flows

Merchandise export values by country

3. Strengthens balance sheet and earnings diversity

Super Regional connectivity provides a competitive advantage

Realising the full potential of Super Regional

Realising the full potential of Super Regional

Growth levers - organic, partnerships and M&A

The Super Regional Strategy improves ANZ’s overall Balance Sheet profile

APEA Loan to deposit ratio is 60%

Emerging differentiation

ANZ well capitalised and positioned to transition to Basel III

Common Equity Tier 1 Hybrids Tier-2

Still subject to discussion paper feedback

Solid organic capital generation continues to underpin the strong Common Equity Tier 1 position

Tier 1 position strengthened significantly with recent CPS3 issuance and solid organic capital generation

Reconciliation of ANZ’s capital position under Basel III

ANZ capital ratios under a Basel III fully harmonised approach :

ANZ has a well diversified funding profile with an increasing weighting to customer funding

Strong Funding Composition

Stable term debt issuance, portfolio costs increasing

Mortgage pricing

Criteria used to assess Interest Rates

Total liquid assets exceed TOTAL offshore wholesale debt portfolio

Composition of prime liquid asset portfolio ($71.4b)

Hedging has lessened the impact on earnings of the stronger $A

Provision Charge and Impaired Assets

Individual Provision Charge

Collective Provision Charge

Collective Provision Charge by Source

Collective Provision Charge

Collective Provision Charge by Source

Credit Risk Weighted Assets

Credit Risk Weighted Assets

Credit Risk Weighted Assets by Basel Asset Class

Risk Weighted Assets

Impaired Assets

Watch & Control Lists and Risk Grade Profiles

Watch & Control List

Group Risk Grade profile by Exposure at Default

Commercial Industry Exposures

Australia 90+ Day Delinquencies

Australia Mortgages

Dynamic Loan to Valuation Ratio

Australia Commercial

Australia Commercial 90+ day delinquencies

New Zealand businesses

Total Impaired Assets

Total Provision Charge

The Australian mortgage market

Australian house price growth since the mid 1980s - income growth + structural decline in interest rates

Australian house price vs. purchasing power

Global House Price Trends

Australian House Price Trends

Median House Prices

Australian House Price Trends

Australian Housing Loan Approvals

Debt is concentrated in higher income households

Group loans and deposits

Customer deposits by geography

Customer deposit composition by segment

Net loans and advances by geography

Lending composition by segment

Australia Division – Consistent customer focus and wellestablished market positioning driving solid results

Australia and New Zealand Banking Group Ltd. Investor Presentation 2012