Investor Presentation February 2001 Australia and New Zealand Banking Group Limited Peter Marriott, Chief Financial Officer Rick Sawers, Group Treasurer Bruce Mathrick, Executive Treasurer, Group Funding Ross Glasscock, Treasurer, Strategic Funding

Page 2 1.Group Overview 2.Business and Strategic Overview 3.Financial/Operating Performance Overview 4.Debt Funding Strategy 5.Summary

Page 3 ANZ One of the ‘Big Four” Australian banks. Provider of full range of financial services in Australia (since 1835) and New Zealand (since 1840) with leadership in Corporate Banking, Credit Cards and Mortgage origination, a strong e-Commerce position and an offshore network in Asia and Pacific.  AssetsA$172bn 1 (US$96bn)  Market CapA$22bn 2 (US$12bn)  Profit (pre abnormals) A$1,703mm 3 (US$954mm)  Tier 1 Capital Ratio7.4% 3  Employees23,134 1  Credit RatingsAA - (stable) S&P 2 Aa3 (stable) Moody’s 1. Company Annual 30 September As at 7 January SSB Research 27 October 2000 ANZ Group Overview

Page 4 Highlights  Earnings growth of 15.0% (13.3% compound since 1997)  Return on equity 18.3% (17.2% )  Cost income ratio 51.7% (54.5% )  Grindlays sold, realising net profit after tax of $404m after related provisions and lowering risk profile  Income up 6%, costs flat, Economic Loss Provision (ELP) down 4bp’s to 39bp’s  Restructuring charge (A$361m) to accelerate transformation program

Page 5 Leading market position  7th largest company in Australia by Market Capitalisation (A$22bn)  One of the 4 Major Banks in Australia, who represent over 66% of total Australian banking assets  Leading mortgage originator bank in Australia for the last 2 years  4 million retail customers - 3 million in Australia, 1 million in New Zealand  1,021 points of representation throughout Australia and New Zealand  Leading banker to Australian and New Zealand corporations (81,000 customers)

Page 6 Market Share  Growth has been strong, particularly in mortgages and cards  Consistently increased market share, without material acquisitions Mortgages % outstanding Cards % turnover Australian market share - assets %

Page 7 1.Group Overview 2.Business and Strategic Overview 3.Financial/Operating Performance Overview 4.Debt Funding Strategy 5.Summary

Page 8 Australian Financial Services Landscape  Financial services industry in Australia currently undergoing a phase of consolidation and convergence  Banks seeking to diversify revenue streams away from interest income into fee income  Increased focus on efficiency through application of web based technology  Government “Four Pillars Policy” currently prohibits mergers between the 4 major banks

Page 9 Building for the Future: Outline of ANZ Strategy Specialise Perform and Grow e-Transform 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 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

Page 10  Mortgages  Credit cards Personal  Wealth Management  Small Business  General Banking Corporate  Foreign Exchange  Capital Markets  Structured Finance  Institutional  Corporate  Asset Finance  GTS  B2B eCommerce Customer Segments Products Int’l eCommerce  Asia  Pacific  ePortfolio  Asia  Australia/NZ  ANZFM  B2C eCommerce Internal  Utility  Payments  Group Treasury  Technology Our Portfolio of Specialist Businesses

Page 11 Financial Goals to 2003  EPS growth that exceeds peer group average  ROE over 20%  Maintain AA category credit rating  Active capital management:  Tier 1 of 6.5%-7.0%  Inner Tier 1 of 6.0%  Cost-income ratio comfortably in the 40s

Page 12 1.Group Overview 2.Business and Strategic Overview 3.Financial/Operating Performance Overview 4.Debt Funding Strategy 5.Summary

Page 13 Financial Summary Sep 98 Sep 99 Sep 00 Market Capitalisation (A$bn) Total Capital Adequacy Ratio 10.7% 10.2% Tier 1 Ratio 7.2% 7.9% 7.4% Total Assets (A$bn) Net Impaired Assets as % of RWA 0.8% 0.6% Net Profit After Tax (A$bn) Cost to Income Ratio 60.9% 54.5% 51.7% Return on Average Assets 0.7% 1.0% 1.1% Return on Average Ordinary Equity 14.6% 17.2% 18.8%  Earnings growth of 15% in 2000 (CAGR 13.3% since 1997)  Income up 6% pa, costs flat  Grindlays sold realising NPAT of A$404m after related provisions but gain offset by restructuring and other provisions

Page 14 Superior Financial Performance Delivered NPAT CAGR 13.3% % ROE Cost Income Ratio % Historic Non-Accrual Loans Net Non-Accrual Loans (LHS) Gross Non-Accrual Loans (LHS) Non-Accrual Loans/ Loans & advances (RHS) A$m Excluding abnormals

Page 15 Good Progress in All Areas Net interest income 146 Lending fee 48 Other fee 111 Other income 47 Debt provisioning 8 Costs (14) Tax and outside equityinterests (123) Profit before abnormals 1703 Abnormals 44 Net profit after abnormals

Page 16 Continued improvement in Cost to Income Ratio Target - comfortably in the 40’s  Operating expenses have remained flat despite revenue growth 1. UK Banks are a weighted average of Abbey National, Alliance and Leicester, Bank of Scotland, Barclays, Halifax, HSBC, Lloyds TSB, Northern Rock, Royal Bank of Scotland and Standard Chartered %

Page 17 With Diversified and Improving Credit Risk NPAT Distribution of Gross Loans & Advances 41,577 65,264 46,861 45,684 7,966 5, % 50% 23% 49% 41% 10% 56% 39% 5% 43% 49% 8% Personal Financial ServicesCorporate Financial Services International

Page 18 Composition and Quality of the book continued to improve AAA to BBB+ BBB to BBB- BB + to BB BB- > B Australian Lending Asset Profile A$b Australian Loans & Advances  Investment grade 66% of book  Diversified portfolio  Minimal exposure to media/telcos  ANZ risk gradings correlated to S&P  Mortgages now represent 46% of book, up from 40% in March 1999

Page 19 We Have Diversified Credit Risk Total Assets: Geographic Distribution Net Loans and Advances: Industry Diversification

Page 20 Percentage of Grindlays Exposure to Countries Rated below ‘Single A’ Major Risk Transformation via Sale of Grindlays % Comparable ROE and leverage yet much lower risk Of Group Exposure<A Of Total Grindlays Exposure ELP (bps) Continuing Group 2000 Grindlays

Page 21 Net Impaired Assets Sound Asset Quality and Provisioning Aggregate Provisions A$ m % times *As at September 2000, ANZ had a provision surplus of A$406m relative to APRA guidelines General Provision ELP charge*

Page 22 Strong Capital Position % $b Progress:  A$1.1bn of buyback completed  Remaining A$400mn buyback will be completed in the first half Capital Management Philosophy:  Valuable resource to be managed effectively and efficiently  Maintain capital consistent with ANZ’s AA status and peer group ratings –Tier 1 ( %) –Inner Tier 1 (6.0%)

Page 23 1.Group Overview 2.Business and Strategic Overview 3.Financial/Operating Performance Overview 4.Debt Funding Strategy 5.Summary

Page 24 Debt Funding Strategy  Ensure continued access to all international capital markets  Pursue diversification - Investors - Markets - Structures (implications of FASB 133)  Ensure market recognition of ANZ credit credentials through debt investor presentations  Periodic Benchmark Issuance

Page 25 Review of Term Funding for 1999/2000 AUD 13% CHF 2% E 20% HKD 10% USD 54% JPY 1%  Term lending > than 1 year funded to 15% by term wholesale debt > than 1 year  1999/2000 fiscal year - Issued A$5.9 billion term wholesale debt  11% domestic market (Issuer of the year/Deal of the year)  80% euro market  9% US market

Page 26 Wholesale Funding Objectives  Between 10% and 15% of term lending greater than 1 year is to be funded by term wholesale funding greater than 1 year  2000/2001 fiscal year - Funding requirement of A$6bn dependant on securitisation issuance - Anticipate sourcing: 20% domestic market 80% offshore markets  Prudent liability management - spread of term maturities from 1 to 5 years, with a weighted average term of 3 years

Page 27 1.Group Overview 2.Business and Strategic Overview 3.Financial/Operating Performance Overview 4.Debt Funding Strategy 5.Summary

Page 28 Summary  Commitment to AA category credit rating  Responsible capital management philosophy  Defined strategy to re-configure ANZ into a portfolio of specialist businesses  Sound asset quality with lowered risk  Cost to income very low by global standards, and continuing to trend downward  Commitment to regular and disciplined wholesale debt issuance

Appendix

Page 30 Australia’s Strong Economic Fundamentals A$’000 % % Inflation Gross Domestic Product

Page 31 % A$b % ‘000s Australia’s Strong Economic Fundamentals Current AccountEmployment

Page 32 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