2000 Annual Results Presentation to Fixed Interest Investors

1. 2000 Annual ResultsPresentation to Fixed Interest Investors Australia and New Zealand Banking Group Limited 1 November 2000 John McFarlane Chief Executive Officer

2. 2000 Annual Result • Strong result – better than expectations • $1,703m up 15% • $885m second half up 8.2% on first half • We delivered on all our commitments • Financial performance • Rebalancing the portfolio • Reducing risk • Restructuring program accelerates strategy • Sensible application of surplus capital • EPS accretive • Superior to buyback alternative

3. Our three year commitments to shareholders • Achieve superior financial performance • Deliver double-digit earnings growth • Improve return on equity • Bring down our cost income ratio to 53% • Re-balance our portfolio • Increase proportion of Personal business • Enhance leadership position of Corporate • Simplify and focus our International business • Build momentum in eCommerce • Reduce risk

4. Financial Parameters • Assets $172 billion • Shareholders equity* $9.8 billion • Return on average ordinary shareholders’ equity (excl. abnormals) 18.3% • Credit ratings: AA - (stable) S&P’s Aa3 (stable) Moody’s *Includes $1.4b preference shares

5. Financial Highlights • NPAT before abnormals $1,703 million versus $1,480 million • Income up 6%, cost flat • Cost income ratio 51.7% (54.5%) • ROA 1.03% (1.0%) • $361m restructuring charge to accelerate new strategy

6. We have delivered superior financial performance % ROE $m NPAT CAGR 13.3% Total Shareholder Return Cost Income Ratio

7. Good progress across the board Other income 47 Costs (14) Tax & outside interests (123) Other fee 111 Net profit after abnormals 1747 Debt provisioning 8 Lending fee 48 Profit before abnormals 1703 Net interest income 146 Abnormals 44 1480 2000 2000 1999

8. Cost-income ratio continues to decline 63.1 * * 51.7 Target - comfortably in the 40’s * estimate of market expectations for 2000

9. We didn’t get everything right – firm action taken • Personal loan portfolio • International provisioning from historical book • Panin writedown to market • Took action to put historical Grindlays issues behind us

10. We have re-balanced our portfolio Loans & Advances NPAT 10% 5% 8% 39% 41% 23% 49% 50% 56% 49% 43% 27% PFS CFS International • Includes Grindlays • Excludes Group

11. Portfolio breakdown - indicative $772m $647m $1,703m* % % 100 Small Business Other Institutional Corporate Corporate General Banking Personal Transaction Services Asset Finance Wealth Mgmt Capital Markets International Mortgages Foreign Exchange Funds Mgmt ANZIB Financial Services Cards 40m* 0 Personal Corporate Pacific Asia * Excluding Grindlays ($127m) International Customer Businesses

12. We continue to reduce risk ELP Factors Market Risk (Av. VaR) bp’s A$m 23 23 5.4 4.4 • Beta reducing towards 1.0, in line with peer average

13. Overall book continues to improve Australian Loans & Advances Australian Lending Asset Profile $b AAA to BBB+ BBB to BBB- BB + to BB BB- > B • Mortgages now represent 46% of book, up from 40% in March 1999 • Investment grade 66% of book • Diversified portfolio • Minimal exposure to media/telco’s

14. Geographic $m Aust. NZ Inter. Non-accrual loans stable despite asset growth Historic $m Gross Non-Accrual Loans (LHS) Non-Accrual Loans/ Loans & advances (RHS) Net Non-Accrual Loans (LHS)

15. Provisioning levels strengthen General Provision ELP charge* $m Times (383) 502 FX impact (51) (90) 1373 1395 Net SP transfer Sale of Grindlays ELP charge Surplus406 967 2000 1999 APRA Guidelines ELP - Economic Loss Provision SP - Specific Provision * ex Grindlays for 2000

16. Accelerating our transformation program 35 Initiatives across our portfolio of businesses including: • Standardisation and rationalisation of IT and processing platforms • Rationalisation and upgrading of EFTPOS network • Transformation of Branch Network • Improving efficiency in Asia/Pacific by rationalising IT platforms and centralising back office processing • Establishing new business platform for Esanda Expected cost reduction $300m

17. Building for the future - recap on our strategy • Proposition • Specialists will win over conglomerates • Corporations need to embrace new technologies • Value depends on performance and growth • Strategy • Reconfigure ANZ as a portfolio of 21 specialist businesses • An e-Bank with a human face • Drive results whilst investing in growth businesses • Implications • Specialist approach to customer and product businesses • Transform the way we do business by using IP technology • Meet expectations, fund growth by cost reduction Specialise e-Transform Perform and Grow

18. Material reallocation of resources Substantial e-transformation reducing costs and focused service Performance optimised EPS, ROE, investment capital management Transformational cultural change Substantial portfolio shifts Narrower, more focused portfolio with leading positions Increased investment in high growth business Modern performance culture Higher stock rating ANZ in the medium term ANZ in 1 - 2 years ANZ in 3 - 7 years

19. Capital management will continue • Capital Management • Philosophy: • Capital scarce resource to be managed effectively and efficiently • 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 6.9 6.5 6.7 6.4 • Progress • $1014m of buyback • Capping of DRP/BOP to reduce dilution • Remaining $500m buyback in progress • Restructure more EPS accretive than buyback

20. Goals going forward • EPS growth above peer average (target 10+%) • ROE over 20% • Cost-income ratio comfortably in the 40’s • Inner Tier 1: 6% • Maintain AA category credit rating

21. Domestic Corporate Bond Investor Presentation 1 November 2000 Rick Sawers Group Treasurer

22. Wholesale Term Funding - Anticipated 1999/2000 Term Funding Objectives • Forecast term wholesale funding requirement A$5/$6 billion • To be sourced 30% Domestic markets 60% Euro markets 10% US market • Extend ANZ domestic yield curve • Build liquid lines + A$500 million. Constraints envisaged: • S128F • Issue Size • Inconsistent pricing between AA rated banks

23. Wholesale Term Funding - In Retrospect Scorecard 1999/2000 Financial Year • Issued A$5.9 billion term wholesale debt • Sourced 11% Domestic market (v 30%) 80% Euro markets (v 60%) 9% US markets (v 10%) • Domestic Market: Increased 10/2002 series by an $300 million Added new series - $500 million 9/2004 Extended yield curve Outstandings now A$1.75 billion MTBs trading within 1bp • S128F still unresolved

24. AUD 13% CHF 2% E USD 20% 54% HKD JPY 10% 1% Term Debt Issued 1999/2000

25. Wholesale Term Funding - Strategy for 2000/2001 • Pursue diversification - by investors and markets • Maintain prudent approach to liability maturity management • spread of maturities from 1 to 5 years with an objective to achieve a weighted average term of 3 years • maintain yield curve out to a maximum of 5 years in both domestic and euro markets • Funding requirement $6 billion subject to amount of securitisation undertaken • Sourced 20% domestically 80% offshore

26. Wholesale Term Funding Issues to Resolve: • S128F • Transparency of issuance • no standardised practice established • Consider US style “Pot System”

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 Philip Gentry Head of Investor Relations ph: (613) 9273 4185 fax: (613) 9273 4091 email: gentryp@anz.com