Breakout Perform Grow and Breakout Presentation to JB Were Financial Services Conference Singapore, 6 June 2001 John McFarlane Chief Executive Officer Australia and New Zealand Banking Group Limited

Page 2 ANZ - who we are One of the ‘Big Four” Australian banks. Provider of full range of financial services in Australia (since 1835) and New Zealand (since 1840) Leadership in Corporate Banking, Credit Cards and Mortgage origination, a strong eCommerce position and an offshore network in Asia and Pacific. AssetsA$181b (US$ 95b) Market CapA$20.5b (US$ 11b) Profit (half year)A$895m (US$ 470m) Staff22,815 Credit RatingsAA-/Aa3 ANZ Headquarters 100 Queen Street Melbourne Note: figures as at 31/3/01

Page 3 We are 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% 19.1% 49.4% 6.2% maintained We have also committed to improving customer satisfaction, and will publicly report our progress

Page 4 Building for the future - a distinctive strategy Proposition Entrepreneurial specialists create more value 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 5 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 6 We are performing well - interim results NPAT from continuing operations $907m - up 18% EPS up 13% to 55.8 cents ROE of 19.1%, 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)

Page 7...and building a strong track record NPAT $m NPAT/ROE ROE % Internet banking users as % of main relationships Source: JP Morgan & Roy Morgan Research Non-accrual loans Cost to Income

Page 8 Good profit growth across a diversified portfolio Mar 00 v Mar 01 Personal Corporate International and subsidiaries $m

Page 9 80% of businesses delivered revenue growth greater than expense growth General Banking Pacific Small Business Wealth GCM Corporate Mortgages Cards GSF GFX Asia Asset Finance Investment Management expense growth %* revenue growth %* top third middle third bottom third ROE Institutional GTS *based on pcp

Page 10 We continue to actively manage and reduce risk Lending Profile by Asset Type* business consumer 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 * CBA as at 31/12/00, NAB & WBC as at 30/9/00

Page 11 Total non-accrual loans continue to fall, but increase in Australia Gross Non-Accrual Loans (LHS) Net Non-Accrual Loans (LHS) $m Non-Accrual Loans/ Loans & advances (RHS) Historic AustInterNZ Geographic Gross Non-Accrual Loans $m

Page 12 Provisioning levels remain strong (181) H 2001 APRA Guidelines ELP charge Net SP transfer FX impact ELP - Economic Loss Provision SP - Specific Provision $m Surplus 448 GP/Lending Assets * % * includes acceptances represents 3 years expected losses

Page 13 We are developing a track record for building growth businesses Mortgage market share FM inflows (LHS) Deposit market share (RHS) Share of credit card spend Personal customers - Australia % % % m $m

Page 14 Most businesses’ targeting revenue growth well in excess of expense growth Plan Operating Expense Growth cagr Plan Revenue Growth cagr Note: Bubble size in proportion to 2001 Npat Mortgages GCM Metro & Reg Banking Inst. Bank Wealth ANZ Investments GSF GFX GTS Asia Pacific Corporate Small Bus Asset Fin Nominal GDP Growth Low High LowHigh Cost:Income falling Cards Corporate Personal Int. & Subsidiaries ILLUSTRATIVE

Page 15 Substantial growth opportunities in Personal 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 mkt 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 16 Our breakout approach is differentiating us Strategy Staff Customers eTransformation Risk Specialised businesses First class execution (no surprises) 91% 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

Page 17 Developing a breakout performance culture Average Superior Distinctive *Benchmark - 33 Australasian companies surveyed over Coordination and control FinancialOperational People Distinctive (Top 10%) Superior (Top 25%) Average Motivation Rewards & recognition Opport- unities Values + where we are where we want to be Targets/goals Consequence management Mission /aspiration Organisational approach BU Performance feedback

Page 18 Creating a more dynamic working environment 91% of managers have signed individual contracts tertiary qualifications for managers 130 staff have commenced eMBA comprehensive level of share ownership amongst staff %

Page 19 Economic outlook - cautiously optimistic Year ended, excluding dwellings and Olympics Real GDP Growth incl. and excl. housing and Olympics (est) % Financial conditions in Australia more expansionary than US Contractionary Expansionary Retail sales continue to rebound Housing recovery continues But unemployment is still rising Forecast GDP growth for 2001 calendar year - 2%, rising to 3¾% in 2002 Unlike the US, Australia did not experience contractionary financial conditions With domestic growth indicators strengthening, and early signs of rising inflation, interest rate cycle has likely bottomed

Page 20 ANZ’s aspiration A high performing company, exceeding expectations Revenue growth Cost leadership Risk mitigation EPS ROE Positioned in growth markets Actively managed portfolio Annual investment in growth ideas Higher than peer revenue growth More dynamic than competitors High P/E rating Performance culture Lean and agile The e-bank with a human face A breakout mentality Grow Breakout AND Perform

Page 21 Summary We are performing well Cost management momentum – eTransformation has just begun… Risk reduction continues 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 achieve our goals

Page 22 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)

Supplementary Information 2001 Interim Results and credit quality information

Page 24 Strong income growth, with good progress across the board 930 2H H 2H 2000 Continuing Abnormal/ Discontinued Items Interest Income 84 Non- Interest Income 76 Profit on sale of St George 65 Provisioning (14) Write downs (84) Expenses (34) Tax (12) Discontinued (12) H Continuing Eftpos NZ acquisition and GST ($26m) $m

Page 25 “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 - $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 Panin Share Price E*Trade Share Price # - no tax relief on these writedowns $ IDR

Page 26 Income drivers * % Lending Fees Other Fees FX Trading Other Margins stabilised in first half Non-interest income continues to grow Benefit from differential between 90d BBSY and cash rate Greater focus on improving margins Driven by higher non-lending fee income FX profits higher, reflecting AUD volatility * For continuing businesses

Page 27 Cost-income ratio on track to meet target of mid 40’s 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 $mCTI Sale of Grindlays

Page 28 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

Page 29 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

Page 30 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 AAA to BBB+ BB+ to BB BB- B to CCC Non-accrual BBB to BBB- Asian Credit Quality

Page 31 Capital management will continue % $b Progress $413m in share buybacks in the half year New framework for allocating capital for operating risk implemented Capping of DRP/BOP Capital Management Philosophy: Maintain capital consistent with ANZ’s AA status and peer group ratings –Tier 1 ( %) –Inner Tier 1 (6.0%)

Page 32 Arrears analysis indicates no systemic deterioration % personal lending assets over 60 days in arrears Business FDAs Housing Loans RILs* Overdrafts Credit Cards Personal Loans % % Small upturn in arrears in Jan-Feb largely reversed during March Arrears broadly in line with same period last year Increase in credit card arrears reflects seasonal influences Personal loan arrears continue to increase in % terms due to reducing book * Residential Investment Loans

Page 33 Corporate book holding up well, despite a few one off “issues” Risk actively managed Quarterly strategy reports prepared for all high risk accounts June to October 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 Corporate risk grade profile >B = B, B-, CCC & non-accrual

Page 34 Credit quality is sound in some of our larger industry exposures - Australia Lending Assets (AUDm) % of Portfolio (RHS scale) % in CCR 7D-8G (RHS scale) Real Estate Operators & Dev. ManufacturingRetail Trade Agriculture Accomm. Cafes & Restaurants Construction % in CCR 9-10 (RHS scale) x

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

Page 36 Current provisioning in line with expectations PersonalCorporateInt & Sub. Actual SP v ELP charge ELP charge SP charge $m 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

Page 37 ANZ is different….. Lending assets by asset type Total assets by geography We were Reliant on market trading earnings Higher risk asset base, particularly emerging markets Prone to adverse surprises Today Developing specialist businesses from distinctive capabilities Australasian, with regional interests Strong consumer growth engine balancing leading position in Corporate A$b * as at 31 March 2001

Page 38 ELP Charge = Loan Amount x Probability loss x Loss Given default Plus 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 Economic Loss Provisioning 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 GP % net lending assets General Provision balance P&L Charge Actual SP’s Actual Losses are funded from the General Provision

Page 39 Summary of forecasts - Australia Real GDP growth ¾ 3¾ Inflation ½ Unemployment (Dec) ¾ Current account deficit (%GDP) Housing starts (‘000) day bill yield (% pa, Dec) year bond yield (% pa, Dec) Calendar years Sources: ABS; RBA; A$ (US cents, Dec)

Page 40 Outlook System credit growth forecasts * –housing12.4% –personal11.1% –business6.5% 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