Half Year Results Presentation to Media David Murray 12 February

Half Year Results 12 February Economic environment Challenging operational environment Global:  Political and economic uncertainty  Continued declines in equity markets Domestic:  Drought consequences affect economy  Housing cool-down likely to halt wealth effect  Subdued business credit demand continues

Half Year Results 12 February The Bank’s key objectives in this environment Respond to customer and shareholder demands and preserve combination of quality, security and stability Customers:  Access: reliability  Service: improving quality standards Shareholders:  Security: prudent capital and credit quality management  Income: cash results enable continued high dividend pay-out ratio

Half Year Results 12 February Providing shareholder income: Slight increase in cash profit… Statutory Net Profit After Tax Net Profit After Tax (cash basis)* Earnings per Share Dec 2002 $622m $1,208m 95cps Dec 2001 $1,204m $1,192m 94cps % Change (48%) 1% * ie excluding appraisal value uplift/reduction and goodwill amortisation. Unless otherwise stated the numbers in this presentation refer to the net profit after tax (cash basis) and all comparisons are to the prior comparative period.

Half Year Results 12 February Resulting in the highest dividend payout ratio among major banks Dividends per Share Dividend Payout Ratio Dec cps 72.7% Dec cps 72.6% Change 1% -

Half Year Results 12 February Banking Funds Management Life Insurance 31 Dec 02 $1,079m $135m ($6m) 31 Dec 01 $975m $182m $35m Change YoY% 11% (26%) (117%) Divisional breakdown: Sound growth in Banking offset by weaker Wealth Management Net Profit After Tax 30 Jun 02 $1,092m $186m $31m Retail banking strong, business and corporate subdued Difficult global investment markets affecting wealth management businesses Net retail funds flow positive

Half Year Results 12 February Providing shareholder security: Capital Adequacy Regulatory Target Capital: Tier 1:6.5% - 7% Total Capital: 9% - 11% Actual Capital: Tier 1 Tier 2 Less Deductions Total Capital  Capital position remains strong  Hybrid note issue and share buyback on hold 31/12/02 30/6/02 31/12/ % 6.78% 6.75% 4.08% 4.28% 4.27% 1.33% 1.26% 1.71% 9.81% 9.80% 9.31%

Half Year Results 12 February Colonial merger – a situation update Growth in asset value: Maintained value of life insurance Added value to funds management Banking: Integration synergies achieved ahead of schedule Higher risk / lower quality assets divested: United Kingdom - life insurance and private client business Thailand, Malaysia, Philippines - life insurance Underlying strategy sound: Business mix enhanced Customers benefit from wider range of services

Half Year Results 12 February Conservative approach, based on external market conditions: Market volatility and uncertainty Lower industry funds flows Result: Reduction in underlying appraisal value of $426 million Lower by $780 million than independent valuation Consistent with valuation in June 2002 But: No impact on capital adequacy or dividends Credit ratings confirm adequate capitalisation Capital position strengthened Appraisal value

Half Year Results 12 February Results flow from Bank strengths Higher profits despite continued weakness of environment made possible by: Disciplined adherence to service improvement Experience in managing difficult conditions Active implementation of sound strategy

Half Year Results 12 February Outlook - General Global situation remains uncertain: Political tension Economic weakness Fragile equity markets Domestic situation less supportive: Economy holding up well, but likely to slow Competitive industry pressures

Half Year Results 12 February Outlook - Bank Continued focus on service, income and security Commitment to sustainable business growth, strong credit quality standards and high dividend pay-out ratio through growth in cash earnings Strategic positioning to benefit from any improvement in external conditions Continued efficiency gains to underpin value of customer service