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

Page 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 Perform Grow & Break out e-Transform Specialise 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

Page 3 Transforming ANZ through Perform, Grow and Breakout Break out Grow Perform Focus: long term ‘destiny’ Benchmark:global industry/players Looking for:transforming moves Horizon: 5-10 years Success:dramatic market cap increase 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 Focus: performance Benchmark:market expectations Looking for:six monthly delivery Horizon: 1-2 years Success:meet/exceed expectations consistently

Page 4 Personal Financial Services Peter Hawkins Regional- banking Wealth Management Small Business MortgagesCards Drive sales and efficiency Invest to grow Aggressively rebuild Maintain profitable growth Accelerate growth 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 Theme Priorities SystemsCRMSSPBrandRisk Management Accountabilities PFS 50% Group 50% Metro- banking Shared systems and controls are in place to protect synergies

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

Page 6 We are developing a track record of building growth businesses Mortgage market share FM inflows (LHS) Deposit market share (RHS) Share of credit card spend Personal customers - Australia % % % m $m

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

Page 8 We are developing a strong CRM capability…. INFRASTRUCTURE CAPABILITIES 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 Call centre, ATM, and SSP integration ANZ.com integration Multi-product decisioning Attrition scores by customer Recovery scores Automated, event-based campaigns Automated prospect list delivery (“My Sales”) “Optimal” strategy selection by customer (longer term) In Pilot/ Develop- ment In Pilot/ Develop- ment In Place

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

Page 10 Growth opportunities in Personal are substantial Existing revenue $2.6b 10 0 Customer #’s (m) 40%50%* Peer Average Share of Customer Wallet Potential revenue $650m * Average share of wallet for CBA, NAB, SGB, WBC - source: Roy Morgan Research 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 4 5 Potential revenue $650m Total potential revenue growth - $1.5b 7.3 Increased wallet on higher share $160m

Page 11 Personal strategy in action: Cards Specialise E-Transform 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 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 Perform Grow & Breakout 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

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

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

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

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

Page 16 Meet Freddy … Cards staff satisfaction levels Investment in cultural change is creating a dynamic environment

Page 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

Page 18 Summary We are performing well We have substantial growth opportunities 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

Page 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 or contact Philip Gentry Head of Investor Relations ph: (613) fax: (613)

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