Delivering for Shareholders Australia and New Zealand Banking Group Limited

1. Delivering for Shareholders Australia and New Zealand Banking Group Limited Peter Marriott Chief Financial Officer February 2000

2. Briefing Outline • Review of ANZ’s 1999 Results - Financial Perspective - Business Perspective • Outline Group Strategy with particular focus on Personal Financial Services strategy.

3. 1999 - A Good Year for ANZ • EPS 90.6c up 17%. TSR up 19.6% • NPAT $1,480 million up underlying 18% • Return on Equity up to 17.2% (15.5%). ROA 1.0% (0.8%) • Costs down 4%. Cost income ratio down to 55.0% (60.9%) • Risks reduced. Gross non-accruals down 7%, net down 27% • $500 million share buyback • No abnormals. No Surprises.

4. Significant Improvement Achieved Cost Income Ratio % ROE % Gross and Net Non-Accruals $m ROA % 1,662 1,543 1,225 872

5. Good Progress Across the Board $m Software Capitalisation 61 1700 Increased Tax (136) 1600 Growth in Other Income 42 Higher Provisions (23) 1500 1,480 Lending Fee Growth 87 Lower Costs 83 1400 Other Fee Growth 93 1300 Abnormal Items 69 1,175 1200 1,106 Net Interest Income Growth 98 1100 1000 900 Post Abnormals 1998 Pre Abnormals 1998 1999

6. Drivers of Performance NII/Interest Earning Assets Net Interest Assets ROA ROE Other Income Assets Cost/Income Cost Assets Provisions/NLA Leverage Provisions Assets Risk Business Mix

7. Delivering on Cost Reduction Cost Income Ratios % WBC CBA ANZ NAB

8. Reducing Risk Asian Exposure US$b Australian Lending Asset Profile 11.5 % $65b $90b 6.1 5.6 AAA-BBB+ BBB BB BB- <B+ Market Risk (VaR - Ave) A$m 23 23 Equities Interest 7 FX

9. Non-Accrual Loans $m Gross Non-Accrual Loans As at 30 September $m Gross Net Cover Australia 623 345 44% New Zealand 50 30 40% International 870 282 65% Net Non-Accrual Loans

10. Provisioning: ELP > SP at Group Level $m 2100 482 510 FX Impact 1800 1395 1401 1500 Surplus over APRA Guideline ELP Charge Net SP Transfer 1200 967 900 600 300 0 Sep 98 Sep 99 APRA Guideline ELP - Economic Loss Provision SP - Specific Provision

11. Capital Strategy Capital Adequacy Ratio % 12 10.7 • Active capital management • Maintain AA status and peer ratings • Tier 1 (6.5 - 7.0%) • Inner Tier 1 (6.0% - 6.5%) • $500 million on-market buyback • Major international acquisitions unlikely • NZ Tracking Stock Issue in May 10 8 7.9 6 4 2 0 1996 1997 1998 1999 Inner Tier 1 Hybrid

12. Economic Value Added (EVA) Net Income 5,966 Operating Expenses (3,294) ELP Charge (510) Tax (676) Franking & Other Adjustments 352 Adjust Profit 1,838 Cost of Capital* @ 11% (1,004) EVA 834 $ million * Hurdle of 15% used in internal models

13. Business on Track • Strategic re-positioning on track in all segments • Good earnings growth in Australia and New Zealand • Business mix substantially improved. High risk businesses exited • Domestic market share up notwithstanding cost focus • 140,000 Internet banking customers (8000). ANZ E*Trade launched • Major technology projects completed on time, on budget

14. Business Mix Improved Business Segment Profit After Tax $m Business Segment Proportion Other Down 20% International Other Personal International Corporate Up 17% Corporate Personal Up 33%

15. Gains in Australian Market Share Total Market Share Share of Housing Lending % % NAB CBA WBC ANZ 1988 1993 1998 Nov-99 Share of Business Lending Share of Credit Cards % % Nov-99 Nov-99

16. Overall Strategic Direction in Place • Balance business mix towards consumer and low risk • Personal offers greatest growth and earnings potential • Leading position in corporate to be leveraged • International to be simplified and focused • A leading presence in e-Commerce to be established • Transform management process to deliver EVA • Withdraw from high-risk and non core segments • Improve performance in suboptimal businesses • Invest in high growth revenue streams • Hold costs flat • Optimise capital efficiency

17. Strategy for Personal • Aggressively build market position in all consumer segments • An intergrated financial services approach • Special focus on insurance and retail funds management • Differentiated service propositions by customer segment • Build strong product businesses • Continue intense focus on cost management • Build a leading consumer e-Commerce capability

18. Integrated Personal Financial Services Estimated Value of An Australian Retail Customer (A$ Present Value) Household Financial Assets $b $6000 - 7000 General Insurance & Traditional Life 3000 Risk/Wealth Protection Managed Funds Investment 2000 1000 Traditional Banking Banks/NFI 1989 1997 2005

19. ANZ Has a High Quality Personal Customer Base Wealth Bands $(000) 20 60 100 200 500 1000 ANZ Other Industry Ave 0 10 20 30 40 50 60 70 80 90 100 Total Relationships (%) Source: Roy Morgan Research 1998

20. All ANZ Customers High Value to ANZ High Value to Industry but limited ANZ business True Retail Market The Opportunity with Australian Consumers Customer Base 2.7m Source: Roy Morgan Research 1998

21. A New Dedicated Business for Premier Customers • Premier Financial Package • Dedicated Managers • Premier Suites • Dedicated Service Officers

22. Segmented Customer Service Propositions will now Drive Delivery Segmented Customer Service Approach Customer Revenue curve New Segmented approach Traditional uniform cost to serve High Value Customers Low Value Customers A fundamental shift to a customer-centric strategy

23. Leveraging Technology: anz.com Market share (% of Australian internet banking users) Customer takeup rate * (% of customer base) * Number of internet banking users (Ord Minnett 12/99) / number of main banking relationships(based on Ray Morgan 8/99 data) Source: Ord Minnett, Roy Morgan Research

24. International - Simplify and Focus • Re-balance business mix towards consumer • Reduce cross border risk New Lending Policies Continue to Reduce Risk • Target Top 2-3 foreign or Top 5 local position • Leverage strong positions/ global capabilities • Deal with minor positions Target Fewer, Deeper Positions Latin American Offices Closed Create Future Growth Platforms 25% Interest in Panin, Cards acquisition • Develop Asia-Pacific, e.g. Indonesia • Pursue acquisitions only where it creates a desired position - likelihood of our making a major international acquisition this year is low

25. Continue to Deliver in 2000 • Increase ROE towards 20% target • Target flat costs. Achieve 53% cost income ratio • Improve asset quality, particularly International • Progress towards target capital range • Set stretch performance targets and linked incentives • Target highest increase in e-Commerce customers • No surprises

26. Outlook • Positive view on world economy • Australian economy strong but slowing slightly • Business tracking close to our expectations, comfortable with “Street” expectations • Abnormal writedown of FITB of $60m from tax changes – will be partially offset by abnormal gains

27. 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 David Ward General Manager Office of the Chief Executive ph (613) 9273 4185 fax (613)9273 4091 email david.ward@anz.com

28. Profit & Loss Sep-99 A$M Sep-97 Sep-98 3,645 Net Interest Income 3,437 3,547 1,754 Fees 1,459 1,574 340 FX 237 373 89 Trading Securities 182 <83> 138 Other 232 235 2,110 2,099 2,321 Non Interest Income 5,966 Net Income 5,547 5,646 1,732 Personnel 1,949 1,854 Expenses 314 Premises 362 347 344 Computer 330 341 813 Other 771 776 91 Restructuring Costs 90 120 3,294 Total Expenses 3,502 3,438 2,672 Profit Before Provisions 2,045 2,208 510 Doubtful Debts 400 487 676 Tax 466 537 1,480 NPAT Before Abnormal Items 1,171 1,175 - Abnormal Items <147> <69> 1,480 NPAT and Abnormal Items 1,024 1,106

29. Profit & Loss Sep-99 A$M Mar-97 Sep-97 Mar-98 Sep-98 Mar-99 1,834 Net Interest Income 1,718 1,719 1,773 1,774 1,811 904 Fees 693 766 774 800 850 160 FX 111 126 196 177 180 45 Trading Securities 80 102 62 <145> 44 78 Other 116 116 96 139 60 1,187 Non Interest Income 1,000 1,110 1,128 971 1,134 3,021 Net Income 2,718 2,829 2,901 2,745 2,945 872 Personnel 954 995 972 882 860 Expenses 157 Premises 184 178 172 175 157 158 Computer 173 157 168 173 186 422 Other 383 388 385 391 391 1,609 Sub Total 1,694 1,718 1,697 1,621 1,594 42 Restructuring Costs - 90 40 80 49 1,651 Total Expenses 1,694 1,808 1,737 1,701 1,643 1,370 Profit Before Provisions 1,024 1,021 1,164 1,044 1,302 252 Doubtful Debts 197 203 237 250 258 352 Tax 243 223 298 239 324 764 NPAT Before Abnormal Items 580 591 625 550 716 - Abnormal Items <31> <116> - <69> - 764 NPAT and Abnormal Items 549 475 625 481 716

30. John McFarlane CEO Citibank, Standard Chartered David Boyles CIO AMEX, BOA Roger Davis Corporate Citibank Peter Hawkins Personal ANZ Peter Marriott CFO ANZ, KPMG Greg Camm Mortgages ANZ Larry Crawford Distribution First Bank Systems, Wells Fargo Bob Edgar Business Bank ANZ Kathryn Fagg Banking Products McKinsey & Co Brian Hartzer Cards First Manhattan Elmer Funke Kupper International McKinsey & Co Mark Lawrence Risk Soc Gen New York Peter McMahon Asset Finance ANZ, Costain Grahame Miller ANZIB ANZ Elizabeth Proust People Victoria Public Service Alison Watkins Strategy McKinsey & Co Management Team