A Strategic Overview Presentation to CSFB Australian Financial

A Strategic Overview Presentation to CSFB Australian Financial Services Conference Melbourne, 27 September 2001 John Mc. Farlane Chief Executive Officer Australia and New Zealand Banking Group Limited

Five key factors are driving ANZ’s current and future performance 1. Improving sustainability of earnings Improved financial outcomes: 2. Revenue growth • Return on Equity – target 20%+ 3. Productivity enhancements • Earnings per share – target 10%+ 4. Risk reduction 5. Perform Grow Breakout program Page 2

1. Sustainability of earnings continues to improve Lending Profile Focus on lower risk, more sustainable activities • Investment and emphasis on Personal Financial Services – lower risk – more sustainable – higher growth • Corporate balance sheet growth restricted – Focus on fee income – Higher quality corporate book Business Consumer Page 3

2. Significant revenue growth over five years $m Revenue growth • Revenue CAGR for CAGR ~ 6. 7% H 2 estimate • PFS ~ 8. 8%, • CFS ~ 10. 7%, • International and subsidiaries ~ 0. 2% • Interest income CAGR over the five year period is ~ 5. 7% and ~ 8. 2% for non interest income Page 4

3. Productivity improvement is providin scope to invest for growth % Clear leadership on Cost Income ratio Return on Assets % Target Mid 40’s Page 5

4. We have a continuing focus on reducing risk Exited higher risk activities • emerging markets trading • retail stockbroking Implementation of a range of measures which have reduced risk • greater portfolio diversification • commercial property down from 24% in early 90’s to 8% today • Latin America • Grindlays • Emerging markets corporate lending • early introduction of EVA/NIACC methodologies • significantly enhanced sophistication of credit, market and operating risk management • more open/transparent disclosure Page 6

Risk profile of the corporate book is within expectations and remains sound Corporate risk grade profile Risk actively managed • Quarterly strategy reports prepared for all high risk accounts AAA to BBB+ • All BB rated & high risk accounts reviewed regularly BBB to BBB- • Single customer concentration limits lowered BB + to BB BB>B >B = B, B-, CCC & non-accrual Page 7

Consumer portfolio has improved % Arrears > 60 days Delinquency levels have improved, driven by: • improved collections activity • low interest rates and • stable employment conditions (up to August) Closely monitoring in light of recent events Page 8

Provisioning is in line with expectations $m Actual SP v ELP charge - Corporate Financial Services • Slowing domestic economy will increase specific provisions for 2 H 01 • ELP is a function of volume (on and off balance sheet), risk grade profile, and level of security • Specific Provisions tend to be less volatile in Personal businesses and track more closely to ELP charge SP charge Page 9

Group’s capital adequacy ratio is strong at 10. 4% % Capital Ratios • Inner Tier 1 and Tier 1 ratios for September 2001 expected to be broadly in line with September 2000 • Ratios were managed down in first half by $1 bn buy back (completed in May) • No AASB 1038 Appraisal Value accounting • Target Inner Tier 1 is 6. 0% Page 10

5. Building for the future - a distinctive strategy Proposition Specialise e-Transform Perform Grow & Breakout Strategy Implications • Entrepreneurial specialists create more value • ANZ as a portfolio of 16 specialist businesses • Specialist approach to customer and product businesses • Corporations must embrace new technologies • An e-Bank with a human face • Transform the way we do business with IP technology • Value depends on performance, growth and breaking out • Drive results, invest in growth businesses and create new paradigms/culture • Meet expectations, fund growth by cost reduction, transform Page 11

Transforming ANZ through Perform, Grow and Breakout • • • Break out Focus: corporate transformation Benchmark: global industry/players Looking for: dramatic change Horizon: 3 -10 years Success: dramatic market cap increase • Focus: • Benchmark: • Looking for: Page 12 2 -5 years • • • Perform competitors in each business • Horizon: • Success: Grow specialisation and out-growing the market Focus: performance Benchmark: market expectations Looking for: six monthly delivery Horizon: 1 -3 years Success: meet/exceed expectations consistently breakout moves in key businesses (eg QTV, TPMO’s) 4 -5 moves taking share and worth ~AUD 1 bn+ market cap each

Looking forward we are targeting further improvement in each key factor Improving earnings sustainability • asset growth biased towards consumer and small business • corporate focus on increasing ROA Revenue growth • annual investment in growth businesses • revenue growth at least equal to nominal GDP growth Lower cost-income • targeting mid 40’s by 2003 • consistent improvement half on half Risk reduction • reductions in single customer limits • portfolio risk management approach Perform Grow Breakout program • breakout cultural change program • values based leadership Page 13

We are performing well and on track to deliver on our commitments Measure 2003 Commitments As at Mar-01 EPS growth > 10% 13% ROE > 20% 19. 6% Cost-income ratio mid 40’s 49. 4% Inner Tier 1 6% Credit rating maintain AA category 6. 2% maintained Outlook – 2001 • Specific provisions should be marginally above ELP • Earnings expected to be towards the top end of analyst forecasts Page 14

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. For further information visit www. anz. com or contact Philip Gentry Head of Investor Relations ph: (613) 9273 4185 fax: (613) 9273 4091 Page 15 e-mail: gentryp@anz. com