Growing our Personal Portfolio Salomon Smith Barney Conference

1. Growing our Personal PortfolioSalomon Smith Barney Conference Australia and New Zealand Banking Group Limited 19 June 2001 Brian Hartzer Managing Director - Cards

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

3. Transforming ANZ through Perform, Grow and Breakout • Focus: long term ‘destiny’ • Benchmark: global industry/players • Looking for: transforming moves • Horizon: 5-10 years • Success: dramatic market cap increase Break out • Focus: specialisation and out-growing the market • Benchmark: competitors in each business • Looking for: breakout moves in key • businesses (eg QTV, Origin) • Horizon: 3-4 years • Success: 4-5 moves taking share and • worth ~AUD1bn+ market cap each Grow • Focus: performance • Benchmark: market expectations • Looking for: six monthly delivery • Horizon: 1-2 years • Success: meet/exceed expectations • consistently Perform

4. Personal Financial Services Peter Hawkins Accountabilities PFS 50% Group 50% Metro-banking Regional- banking Wealth Management Small Business Mortgages Cards Drive sales and efficiency Invest to grow Aggressively rebuild Maintain profitable growth Accelerate growth Theme • Advanced marketing/ segmentation • Straight through processing • Lower cost to serve • Expert advice • Open architecture • “Wrap” facility • Seamless access • Build profitable market share • Relationship based proposition • Redesign end to end process • Maintain distribution strength • Straight through processing • “Best of breed” delivery platform • Data mining • Exploit growth opportunities Priorities Systems CRM SSP Brand Risk Management Shared systems and controls are in place to protect synergies

5. Our strategy is delivering results... $m $m Personal Portfolio Profit Growth CAGR - 34%

6. We are developing a track record of 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)

7. Personal business units will continue to be key profit drivers Cards High GFX GSF Wealth Asia GCM GTS Asset Fin ANZ Investments Nominal GDP Growth Revenue Growth 01-03 CAGR Pacific Small Bus Inst Bank Mortgages Metro & Regional Cost to Income falling Corp Bank Bubble size in proportion to 2001 NPAT Illustrative Low Low High Operating Expense Growth 01-03

8. We are developing a strong CRM capability…. CAPABILITIES INFRASTRUCTURE • Enterprise Customer Data Mart (ECDM) • Tran$act database • Customer scoring and decision engine • Behavioural credit scoring systems • Campaign Management System • Front line screen delivery • Full account and customer NIACC • Segmentation markers and profiles • Propensity-to-buy scores • Application/behavioural scores • Multiple campaign management In Place In Pilot/ Develop- ment • Attrition scores by customer • Recovery scores • Automated, event-based campaigns • Automated prospect list delivery (“My Sales”) • “Optimal” strategy selection by customer (longer term) • Call centre, ATM, and SSP integration • ANZ.com integration • Multi-product decisioning

9. ...which is delivering promising results Event-based Cross-sell (Recent Case Study) Proprietary Card Cross-sell (Recent Case Study) % Index

10. Growth opportunities in Personal are substantial • System Growth • Underlying credit growth ~ 8-10% pa • Market Share • Product businesses growing customer numbers and market share • Customer #’s increasing by 1.0m - translates to $650m in additional revenue pa • Increase Wallet • Customer businesses deepening wallet share • $650m revenue gain by matching our peers • Created customer businesses • Sales programs • CRM Total potential revenue growth - $1.5b Customer #’s (m) Peer Average Increased wallet on higher share $160m 10 Potential revenue $650m 7.3 5 4 Potential revenue $650m Existing revenue $2.6b 0 40% 50%* Share of Customer Wallet * Average share of wallet for CBA, NAB, SGB, WBC - source: Roy Morgan Research

11. Personal strategy in action: Cards • Structured as a ‘monoline’ cards business • Line-of–sight focus on Card Issuing, Merchant Acquiring and Unsecured Personal Loans • #1 Visa issuer in Australia, 27% of spend • Growing share in Merchant acquiring in Australia and New Zealand Specialise • Straight-through-processing already delivering benefits • “Platform of the future” initiative underway • On-line experience enhancements currently rolling out • Best-in-class risk management initiative underway E-Transform Perform Grow & Breakout • Consistent track record of high profit/EVA growth • Investing in culture and staff recognition • Leveraging CRM capabilities to maximise cross-sell • ENZ acquisition • Asian expansion (e.g. Hong Kong) • E-Card joint venture

12. The Cards business is performing strongly FINANCIAL PERFORMANCE $NPAT (m) 70% annual growth rate Change Total revenue 276 304 335 21% Cost/Income 51% 47% 49%  2%Ratio

13. Growing share in all segments of our Cards business... Market share (Australia) Card Issuing Australia Card Acquiring Australia

14. ...assisted by selective acquisitions Eftpos NZ Acquisition - 3% + market share gain in 12 months 13.5% Market share of acquiring (NZ only)

15. …and product innovation which is recognised internationally MeetFreddy… “Best Frequent Traveller Credit or Charge Card (International)”* First Place: Qantas Telstra Visa Card (Australia) Second Place: Qantas Telstra ANZ Visa Card (NZ) Third Place: Amex * source: InsideFlyer Magazine, 2001

16. Investment in cultural change is creating a dynamic environment Cards staff satisfaction levels MeetFreddy…

17. Leveraging distinctive capabilities into international markets • Launch April 2001 • Target: Hong Kong platinum market • Niche product with unique features to attract profitable segment • Proof of concept for marketing and operational capabilities in the region

18. Summary • We are performing well • We have substantial growthopportunities • Our new strategy is creating value and better positioning us for growth • We are differentiating ourselves through our Breakout program We are on track to continue growing strongly

19. 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

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