2001 Interim Results

1. 2001 Interim Results Australia and New Zealand Banking Group Limited 26 April 2001

2. Results highlights • NPAT from continuing operations $907m - up 18% • EPS up 13% to 55.8 cents • ROE of 19.6%, 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 $99m ($65m after tax), offset by write downs in investments ($84m) • Improved disclosure - financial information provided for each business unit Note: Comparisons are against half year ended March 2000 (including Grindlays)

3. 2001 Interim Results Australia and New Zealand Banking Group Limited 26 April 2001 Peter Marriott Chief Financial Officer

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

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

6. Income drivers* % Margins stabilised in first half • Benefit from differential between 90d 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 • FX profits higher, reflecting AUD volatility Other Fees Lending Fees * For continuing businesses

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

8. Good profit growth across most businesses Mar 00 v Mar 01 $m Personal Corporate International and subsidiaries

9. 80% of businesses delivered revenue growth greater than expense growth revenue growth %* ROE Mortgages 50 top third 45 middle third 40 35 bottom third Cards 30 Institutional 25 GCM GSF 20 Asia 15 GFX Pacific GTS 10 General Banking Corporate expense growth %* Small Business 5 Wealth -25 -20 -15 -10 -5 5 10 15 20 25 30 Asset Finance -5 Investment Management -10 -15 *based on pcp

10. 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 • creation of Metrobanking and Regionalbanking • a 1% increase in market share for customer businesses worth $100m+ revenue $m

11. 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

12. 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 • Asia showing positive signs, on track to record significant profit growth for the full year Asian Credit Quality AAA to BBB+ BBB to BBB- BB- BB+ to BB B to CCC Non-accrual

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

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

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

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

17. Group risk grade profile continues to improve $114.6bn $126.5bn $134.9bn $141.0bn AAA to BBB+ BBB to BBB- BB + to BB BB- 5.4% 3.9% > B 7.2% 3.8% 45 43 38 35 ELP (bp’s) >B = B, B-, CCC & non-accrual • Risk grade profiles by division and geography in appendix

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

19. Provisioning levels remain strong represents 3 years expected losses $m % GP/Lending Assets* ELP charge 241 FX impact 1460 27 1373 (181) Net SP transfer Surplus448 1012 1H 2001 2000 APRA Guidelines ELP - Economic Loss Provision SP - Specific Provision * includes acceptances

20. Capital management will continue • Capital Management • Philosophy: • Maintain capital consistent with ANZ’s AA status and peer group ratings • Tier 1 (6.5 - 7.0%) • Inner Tier 1 (6.0%) $b % 7.9 7.7 7.5 7.4 7.3 6.9 • Progress • $413m in share buybacks in the half year • New framework for allocating capital for operating risk implemented • Capping of DRP/BOP 6.7 6.5 6.4 6.2

21. 2001 Interim Results Australia and New Zealand Banking Group Limited 26 April 2001 John McFarlane Chief Executive Officer

22. We are performing well and on track to deliver on our 3 year commitments Measure EPS growth ROE Cost-income ratio Inner Tier 1 Credit rating 3 Year Commitment > 10% > 20% mid 40’s 6% maintain AA category Achievement 13% 19.6% 49.4% 6.2% maintained • We have also committed to improving customer satisfaction, and will publicly report our progress

23. Implementation of our strategy is progressing well • Specialisation • 16 Business Units within 3 portfolios, plus corporate centre • Separate financial reporting for each Business Unit • eTransformation - the eBank with a human face • Leading internet banking penetration • Highest profit per employee • Perform Grow andBreakout • Active resource allocation - Expenses, Capital, Balance Sheet, Talent • Investment focused on lower risk, higher growth activities

24. New strategy delivering value - majority of businesses with double digit earnings growth Change $m 54 24 21 20 16 10 8 8 8 4 3 1 -1 -4 -9 1H 2001 $m 112 58 88 31 85 191 24 40 54 65 48 47 21 11 34 1H2000 $m 58 34 67 11 69 181 16 32 46 61 45 46 22 15 43 Change % 93 71 31 181 23 6 50 25 17 7 7 2 -5 -27 -21 Business Unit Mortgages Cards Institutional Asia Structured Finance General Banking Capital Markets Foreign Exchange Transaction Services Corporate Banking Small Business Asset Finance Pacific Wealth Management Investment Management

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

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

27. Cost management delivers competitive advantage and funds to invest in growth businesses Clear leadership on Cost Income ratio lower costs/AVA higher productivity eTransformation • competitive advantage • capacity to invest in growth Target Mid 40’s

28. eTransformation - enhancing the customer experience % Internet banking users as % of main relationships Transaction activity Cheques Phone/Internet Banking Direct Entry Credit Card EFTPOS ATM Branch Deposits Branch Withdrawals Source: JP Morgan & Roy Morgan Research

29. eTransformation – examples of real, tangible benefits internally Benefits Project 95% reduction in processing costs “Manage my leave” Web enablement - rollout of IP network to all points of representation Cost neutral, but 100 times capability increase Estimated benefits ~$40m Common Administration System Provides staff with online access to training courses, including an eMBA eTrain - online training

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

31. Being the eBank with a human face • Put our customers first with an experience that delights • Focus on creating value for our shareholders • Lead and inspire our people • Breakout, be bold and have the courage to be different • Earn the trust of our people and the community

32. Our breakout approach is differentiating us • Specialised businesses • First class execution (no surprises) Strategy Staff Customers eTransformation Risk • 86% of managers on individual contracts • 12% rise in staff satisfaction • Establishment of Customer Charter, Customer Advocate and distinctive customer and community initiatives • Leading cost income ratio • Highest internet banking penetration • Leading financial disclosure & transparency • EVA embedded in culture

33. New customer and community initiatives • Fee free, over-the-counter services for older customers (aged 60+) • A new Customer Charter setting out clear service standards effective from 1 October 2001. A key feature of the Charter will be a financial donation payable by ANZ to a charity of the customer’s choice if ANZ does not meet its complaint resolution standards • Appointment of a senior Customer Advocate to ensure the satisfactory resolution of customer issues and complaints. • Improvements and greater funding for ANZ’s community relations program • Paid leave for staff who volunteer for community service

34. The economy - signals are mixed…. Real GDP Growth incl. and excl. housing and Olympics (est) % House approvals Year ended Year ended, excluding dwellings and Olympics We are starting to see a rebound in housing approvals Retail Sales Newspaper Job Ads 000’s per week Starting to show signs of life Mthly % ch. ANZ job ads series suggests unemployment levels approaching 7.5%

35. …. but we are cautiously optimistic • Sharp slowdown in H2 2000 • overstates weakness of underlying economic activity - we continue to expect a solid cyclical rebound in 2001-02 • Fundamentals remain healthy • usual preconditions for recession in Australia (rising inflation and interest rates) notably absent • Risks remain • weakened global growth, rising inventory levels, subdued business sentiment and falling job advertisements • But monetary and fiscal conditions remain supportive • after slowing to only 2% in 2000-01, growth forecast to rebound to 3.2% in 2001-02

36. 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

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

38. 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 e-mail: gentryp@anz.com

39. Copy of presentation available on www.anz.com

40. Risk grade profile by division Corporate Personal AAA to BBB+ AAA to BBB+ 38.4% 37.9% 38.9% 38.4% BBB to BBB- BBB to BBB- 26.4% 26.7% 26.9% 27.4% BB + to BB 18.2% BB + to BB 19.1% 19.4% 20.3% BB- 11.7% 12.3% 11.7% 9.3% BB- 4.1% 3.6% > B 5.3% 4.0% > B Sep-99 Mar-00 Sep-00 Mar-01 International & Subsidiaries AAA to BBB+ BBB to BBB- BB + to BB BB- >B = B, B-, CCC & non-accrual > B 6.7% 8.8% 11.2% 8.3%

41. Risk grade profile by geography* Australia New Zealand AAA to BBB+ AAA to BBB+ BBB to BBB- BBB to BBB- BB + to BB BB + to BB BB- BB- > B > B International AAA to BBB+ BBB to BBB- BB + to BB BB- >B = B, B-, CCC & non-accrual > B * Excludes housing

42. 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 Plus General Provision balance Actual SP’s P&L Charge An adjustment to ensure the GP balance is sufficient to cover: • Volatility around expected loss (using statistically quantified variance) • Remaining term of loan portfolio • Balance sheet growth • 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

43. System credit growth forecasts

44. Summary of forecasts - Australia Calendar years 1999 2000 2001 2002 Real GDP growth 4.7 3.7 2 3¾ Inflation 1.5 4.5 3¾ 1½ Unemployment (Dec) 7.0 6.6 7½ 6½ Current account deficit (%GDP) -5.8 -4.0 -2.3 -3.3 Housing starts (‘000) 157 148 116 136 90-day bill yield (% pa, Dec) 5.48 6.20 4.75 5.1 10-year bond yield (% pa, Dec) 6.64 5.50 5.4 6.1 A$ (US cents, Dec) 65.8 55.8 52.0 60.0 Sources: ABS; RBA; Economics@ANZ.