Perform Grow and Breakout Investor Presentation Australia and

Perform Grow and Breakout Investor Presentation Australia and New Zealand Banking Group Limited May 2001 John Mc. Farlane Chief Executive Officer

ANZ - who we are • • • One of the ‘Big Four” Australian banks. Provider of full range of financial services in Australia (since 1835) and New Zealand (since 1840) Leadership in Corporate Banking, Credit Cards and Mortgage origination, a strong e. Commerce position and an offshore network in Asia and Pacific. • Assets A$181 b (US$ 95 b) • Market Cap A$20. 5 b (US$ 11 b) • Profit (half year) A$895 m (US$ 470 m) • Staff 22, 815 • Credit Ratings AA-/Aa 3 ANZ Headquarters 100 Queen Street Melbourne Page 2

ANZ is different…. . A$b Lending assets by asset type A$b Total assets by geography We were Today • Reliant on market trading earnings • Developing specialist businesses from distinctive capabilities • Higher risk asset base, particularly emerging markets • Australasian, with regional interests • Strong consumer growth engine balancing leading position in Corporate • Prone to adverse surprises * as at 31 March 2001 Page 3

Building for the future - a distinctive strategy Proposition Strategy Specialise • Entrepreneurial specialists create more value • Reconfigure ANZ as a portfolio of 16 specialist businesses • Specialist approach to customer and product businesses e-Transform • Corporations must embrace new technologies • An e-Bank with a human face • Transform the way we do business with IP technology Perform Grow & Break out • Value depends on performance, growth and breaking out • Drive results, invest in growth businesses and create new paradigms • Meet expectations, fund growth by cost reduction, transform Page 4 Implications

Implementation of our strategy is progressing well • Specialisation – 16 Business Units within 3 portfolios, plus corporate centre – Separate financial reporting for each Business Unit • e. Transformation - the e. Bank with a human face – Leading internet banking penetration – Highest profit per employee • Perform Grow and Breakout – Perform exceed market expectations – Grow higher than system revenue growth, position in high growth sectors – Breakout bold transforming moves Page 5

Evolution of Perform Grow and Breakout • Build the foundation • Deliver on the fundamentals • Earned the support of the market • Identify growth opportunities • Invest to grow Page 6 • Create a breakout mentality • Create a strong performance culture • Out execute in a different game

Transforming ANZ through Perform, Grow and Breakout • • • Break out Focus: long term ‘destiny’ Benchmark: global industry/players Looking for: transforming moves Horizon: 5 -10 years Success: dramatic market cap increase • Focus: • Benchmark: • Looking for: Page 7 3 -4 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 -2 years Success: meet/exceed expectations consistently breakout moves in key businesses (eg QTV, Origin) 4 -5 moves taking share and worth ~AUD 1 bn+ market cap each

We are performing well - interim results • NPAT from continuing operations $907 m - up 18% • EPS up 13% to 55. 8 cents • ROE of 19. 1%, up from 17. 8% • Costs flat - cost income ratio down to 49. 4% • Credit quality sound: – ELP charge down to 35 bp’s – Total non-accruals down – Specific provisions flat • Profit on sale of holding in St George $99 m ($65 m after tax), offset by write downs in investments ($84 m) • Improved disclosure - financial information provided for each business unit Note: Comparisons are against half year ended March 2000 (including Grindlays) Page 8

. . . and building a strong track record NPAT/ROE NPAT $m Cost to Income ROE % Internet banking users as % of main relationships Non-accrual loans Page 9 Source: JP Morgan & Roy Morgan Research

Revenue growth driving earnings per share % Non Interest Income Mar 00 v Mar 01 % contribution to EPS growth 15% Acquisitions Average interest earning assets Expenses 27% -6% -1% Tax -11% Provisions -1% Discontinued Operations Margin Compression 18% -5% -8% Capital Management 4% Pref Shares -1% NPAT Continuing Operations Page 10 13% 9% Earnings - Ordinary Shareholders EPS Growth

$m Good profit growth across a diversified portfolio Mar 00 v Mar 01 Personal Corporate International and subsidiaries Page 11

80% of businesses delivered revenue growth greater than expense growth revenue growth %* ROE top third middle third Mortgages 50 45 40 35 bottom third Cards 30 Institutional 25 GCM 20 GSF 15 General Banking Small Business -25 -20 -15 -10 Pacific Corporate 5 Wealth 5 10 15 20 25 30 -5 -10 -15 *based on pcp GFX GTS 10 -5 Asset Finance Asia Page 12 Investment Management expense growth %*

We are developing a track record for building growth businesses % % Share of credit card spend Mortgage market share 95 96 97 98 $m 99 00 95 01 % FM inflows (LHS) Deposit market share (RHS) Page 13 96 97 98 99 m Personal customers - Australia 00 01

Most businesses expected to grow above market over next 2 -3 years Market Growth High Wealth Management Personal Corporate Investment Management Cards Int. & Subsidiaries GTS Asia Mortgages GCM Medium GSF GFX Institutional Metro Banking Small Business Corporate Low Pacific Regional Banking Asset Finance Note: Size of bubble approximates relative profit contribution Below Market At Market Page 14 Above BU Growth Market

Substantial growth opportunities in Personal System Growth Customer #’s (m) Total potential revenue growth - $1. 5 b • Underlying credit growth ~ 8 -10% pa Market Share • Product businesses growing customer numbers and mkt share Peer Average 10 7. 3 Increased wallet on higher share $160 m Potential revenue $650 m • Customer #’s increasing by 1. 0 m - translates to $650 m in additional revenue pa Increase Wallet • Customer businesses deepening wallet share 5 4 Potential revenue $650 m Existing revenue $2. 6 b 0 40% 50%* Share of Customer Wallet * Average share of wallet for CBA, NAB, SGB, WBC - source: Roy Morgan Research Page 15 • $650 m revenue gain by matching our peers – Created customer businesses - Sales programs - CRM

Our breakout approach is differentiating us Strategy • Specialised businesses • First class execution (no surprises) Staff • 91% of managers on individual contracts • 12% rise in staff satisfaction Customers • Establishment of Customer Charter, Customer Advocate and distinctive customer and community initiatives e. Transformation • Leading cost income ratio • Highest internet banking penetration Risk • Leading financial disclosure & transparency • EVA embedded in culture Page 16

Developing a breakout performance culture Mission /aspiration where we are where we want to be Distinctive (Top 10%) Targets/goals Superior (Top 25%) Organisational approach Average BU Performance feedback Consequence management Average People Financial Operational Coordination and control + Rewards & recognition Superior Distinctive *Benchmark - 33 Australasian companies surveyed over 1999 -2000 Page 17 Opportunities Motivation Values

ANZ’s aspiration A high performing company, exceeding expectations • Revenue growth • Cost leadership • Risk mitigation • EPS • ROE Perform Grow AND Breakout More dynamic than competitors • High P/E rating • Performance culture • Lean and agile • The e-bank with a human face • A breakout mentality Page 18 Positioned in growth markets • Actively managed portfolio • Annual investment in growth ideas • Higher than peer revenue growth

We are on track to deliver on our 3 year commitments Measure 3 Year Commitment EPS growth > 10% 13% ROE > 20% 19. 1% Cost-income ratio mid 40’s 49. 4% Inner Tier 1 6% Credit rating maintain AA category • Achievement 6. 2% maintained We have also committed to improving customer satisfaction, and will publicly report our progress Page 19

Summary • We are performing well • Cost management momentum – e. Transformation has just begun… • Risk reduction continues • Our new strategy is creating value and better positioning us for growth • We are differentiating ourselves through our Breakout program Page 20 We are on track to achieve our goals

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 21 e-mail: gentryp@anz. com

Supplementary Information 2001 Interim Results and credit quality information

Strong income growth, with good progress across the board $m Abnormal/ Discontinued Items 930 104 Profit on sale of St George 65 Non. Interest Income 76 Expenses (34) Provisioning Tax (14) (12) Interest Income 84 826 2 H 2000 Write downs (84) Discontinued (12) 907 895 Eftpos NZ acquisition and GST ($26 m) 2 H 2000 Continuing 2001 1 H Continuing Page 23 2001 1 H

“Unusual” items – St George profit offset by write downs in investments • St George - $99 m profit ($65 m after tax) – regulatory issues - not critical to strategy – attractive price IDR Panin Share Price • Panin - $43 m writedown# – long term growth prospects remain positive • E*Trade - $21 m writedown# – online broking service provides core customer offering • Other - $20 m writedown# – a number of small e. Commerce related investments # - no tax relief on these writedowns Page 24 $ E*Trade Share Price

Income drivers* % Margins stabilised in first half • Benefit from differential between 90 d BBSY and cash rate • Greater focus on improving margins Other Non-interest income continues to grow Trading FX • Driven by higher non-lending fee income Other Fees • FX profits higher, reflecting AUD volatility Lending Fees * For continuing businesses Page 25

Cost-income ratio on track to meet target of mid 40’s $m Sale of Grindlays CTI • Reduction in Cost Income ratio driven by revenue growth and cost control • Approximately $65 m of restructuring provision used – two year program, with benefits principally 2002 and beyond • e. Transformation will continue to drive costs down Page 26

Personal portfolio • Mortgages and Cards reinforce value of our specialisation strategy • Clear opportunities for customer businesses to replicate success of product businesses • Significant market share growth opportunities remain $m – creation of Metrobanking and Regionalbanking – a 1% increase in market share for customer businesses worth $100 m+ revenue Page 27

Corporate portfolio – fee income driving profit growth • Five of six businesses delivered profit growth greater than 10% • “Non-traditional” income for Corporate Banking grew 40%+ on annualised basis, largely by executing Wall St to Main St strategy $m Page 28

International & Subsidiaries – risk reducing, profits up • Asset Finance reconfiguring back office platform to deliver substantial efficiencies • Negative profit growth for Investment Management due to tax changes and increased growth spend Asian Credit Quality AAA to BBB+ BBB to BBB- • Asia showing positive signs, on track to record significant profit growth for the full year BBBB+ to BB B to CCC Non-accrual Page 29

Capital management will continue $b % 7. 7 • Maintain capital consistent with ANZ’s AA status and peer group ratings – Tier 1 (6. 5 - 7. 0%) – Inner Tier 1 (6. 0%) 7. 9 7. 5 7. 4 7. 3 6. 7 6. 9 6. 5 6. 4 Capital Management Philosophy: Progress • $413 m in share buybacks in the half year • New framework for allocating capital for operating risk implemented • Capping of DRP/BOP 6. 2 Page 30

We continue to actively manage and reduce risk Lending Profile by Asset Type* • Exiting higher risk businesses • More emphasis on lower risk businesses • Corporate balance sheet deliberately constrained – focus on fee income • Risk based approach embedded through EVA business consumer * CBA as at 31/12/00, NAB & WBC as at 30/9/00 Page 31

Total non-accrual loans continue to fall, but increase in Australia Historic $m Gross Non-Accrual Loans (LHS) Geographic $m Non-Accrual Loans/ Loans & advances (RHS) Gross Non-Accrual Loans Net Non-Accrual Loans (LHS) Aust Page 32 NZ Inter

Arrears analysis indicates no systemic deterioration % % personal lending assets over 60 days in arrears % Personal Loans Business FDAs Credit Cards Housing Loans RILs* Overdrafts • Small upturn in arrears in Jan-Feb largely reversed during March • Increase in credit card arrears reflects seasonal influences • Arrears broadly in line with same period last year • Personal loan arrears continue to increase in % terms due to reducing book * Residential Investment Loans Page 33

Corporate book holding up well, despite a few one off “issues” Corporate risk grade profile Risk actively managed AAA to BBB+ • Quarterly strategy reports prepared for all high risk accounts • June to October 2000 - all BB rated accounts within Corporate reviewed in expectation of downturn BBB to BBB- • New accounts > $3 m to be referred “one level higher” BB + to BB BB>B >B = B, B-, CCC & non-accrual Page 34

Credit quality is sound in some of our larger industry exposures - Australia x Real Estate Operators & Dev. Agriculture Lending Assets (AUDm) % of Portfolio (RHS scale) % in CCR 7 D-8 G (RHS scale) % in CCR 9 -10 (RHS scale) Manufacturing Retail Trade Accomm. Cafes & Restaurants Construction Page 35

Group risk grade profile continues to improve $114. 6 bn $126. 5 bn $134. 9 bn $141. 0 bn AAA to BBB+ BBB to BBB- BB + to BB BB>B ELP (bp’s) 5. 4% 3. 9% 7. 2% 45 43 >B = B, B-, CCC & non-accrual 3. 8% 38 • Page 36 35 Risk grade profiles by division and geography in appendix

Provisioning levels remain strong $m represents 3 years expected losses ELP charge 241 FX impact 27 % GP/Lending Assets* 1460 1373 (181) Net SP transfer Surplus 448 1012 1 H 2001 2000 APRA Guidelines ELP - Economic Loss Provision SP - Specific Provision Page 37 * includes acceptances

Current provisioning in line with expectations $m Actual SP v ELP charge Personal Corporate ELP charge SP charge Int & Sub. • 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 Page 38

Economic Loss Provisioning GP % net lending assets Actual Losses are funded from the General Provision ELP Charge = Loan Amount x Probability loss x Loss Given default General Provision balance Plus Actual SP’s P&L Charge An adjustment to ensure the GP balance is sufficient to cover: • ELP charge will vary from year to year based on: • changes in lending volumes • change in risk grade profile • security levels • product and geographic mix Page 39 • • Volatility around expected loss (using statistically quantified variance) Remaining term of loan portfolio Balance sheet growth

Summary of forecasts - Australia Calendar years 1999 2000 2001 2002 Real GDP growth 4. 7 3. 7 1¾ 3¾ Inflation 1. 5 4. 0 1½ Unemployment (Dec) 6. 7 6. 2 7. 0 6¾ Current account deficit (%GDP) -5. 8 -4. 0 -2. 3 -3. 3 Housing starts (‘ 000) 157 147 123 135 90 -day bill yield (% pa, Dec) 5. 48 6. 20 4. 75 5. 1 10 -year bond yield (% pa, Dec) 6. 64 5. 50 5. 9 6. 2 A$ (US cents, Dec) 65. 8 55. 0 62. 0 Sources: ABS; RBA; Economics@ANZ. Page 40

Outlook • System credit growth forecasts* – housing 12. 4% – personal 11. 1% – business 6. 5% • Personal to exceed system credit growth • Corporate credit growth - continuing higher quality focus • Margin compression will continue • Costs flat • Challenges ahead, however we are well placed to continue to perform well, and achieve our targets over the medium term * forecast for year ending 30 September Page 41