Strategy Seminar Personal Financial Services Australia and New Zealand Banking Group Limited 24 August 2001

Page 2 Agenda 9.30 – 9.35Welcome/AgendaPhilip Gentry 9.35 – 10.00Personal Portfolio OverviewPeter Hawkins – 10.25MortgagesGreg Camm – 10.45MetrobankingElizabeth Proust – 11.05RegionalbankingAlison Watkins – 11.20Morning Tea – 11.55Wealth ManagementCraig Coleman – 12.20Small BusinessGraham Hodges – 12.45CardsBrian Hartzer – 1.15Conclusion/Final QuestionsPeter Hawkins 1.15Lunch

Personal Financial Services Realising a unique growth opportunity Peter Hawkins Group Managing Director Australia and New Zealand Banking Group Limited 24 August 2001

Page 4 Joined ANZ April 1989 Commenced current position February 1998 Greg Camm - Mortgages

Page 5 Joined ANZ January 1998 Commenced current position March 2001 Elizabeth Proust - Metrobanking

Page 6 Joined ANZ February 1999 Commenced current position March 2001 Alison Watkins - Regionalbanking

Page 7 Joined ANZ in 1994 Commenced current position October 2000 Craig Coleman – Wealth Management

Page 8 Joined ANZ in 1991 Commenced current position September 2000 Graham Hodges – Small to Medium Business

Page 9 Joined ANZ September 1999 Commenced current position September 1999 Brian Hartzer – Cards & ePayments

Page 10 Personal Financial Services Greg Camm Mortgages Elizabeth Proust Metrobanking Alison Watkins Regionalbanking Craig Coleman Wealth Management Graham Hodges Small to Medium Business Brian Hartzer Cards & ePayments

Page 11 The Personal Portfolio – today’s themes A Portfolio of specialist Customer and Product Businesses with important interdependencies Specialisation works Now applying specialisation to the rest of the Personal portfolio Significant customer and bottom line benefits Realising a unique growth opportunity

Page 12 Considerable momentum developing Personal Corporate Int & Subs NPATCustomer Numbers 27% 50% 23% 46% 39% 15% m *Mar 2001 annualised

Page 13 Specialisation has driven the success of our product businesses % Source: ANZ Market Share (Mortgages) Break in series % Market Share (Card Spend)* * 3 month moving average

Page 14 Drivers of value creation – not just a cost story Specialisation Award winning products Sales capability - driving revenue gains Dramatic productivity gains Specialisation Award winning products Sales capability - driving revenue gains Dramatic productivity gains Substantial value creation Revenue Cost Income $m CAGR 6.5%

Page 15 Our strategy is delivering strong results Small Business Wealth Mgmt Regionalbanking Metrobanking Cards Mortgages 26% NPAT Increase CAGR - 34% $m Personal Portfolio - NPAT

Page 16 We are now applying the power of this specialisation focus to our core franchise Metrobanking * Regionalbanking * Wealth ^ Small Business # source: * Roy Morgan – share customer spend on traditional banking; ^ Roy Morgan – share of customer spend on financial services #Greenwich – share of small business lending 50%39% 49% 106% % % % %

Page 17 Existing revenue $2.6b The growth opportunities in Personal are substantial 10 0 Customer #’s (m) ~40%~50%** Peer Average Share of Customer Wallet ** Average share of wallet for CBA, NAB, WBC - source: Roy Morgan Research 4 5 Total potential revenue growth - $1.5b* Increased wallet on higher share $160m 7.3 Increase Market Share 1m new customers Potential revenue - $650m Increase Wallet Share Meet peer average Potential revenue - $650m * Australia only

Page 18 Personal Financial Services Peter Hawkins Regional- banking A Watkins Wealth Management C Coleman Small Business G Hodges Mortgages G Camm Cards & ePayments B Hartzer Creating the stand-out regional bank Taking a specialist approach to wealth management Revitalizing the business to create significant upside Developing the leading mortgage business Building the leading Cards business in Australasia SystemsCRMCultureBrandLeadershipRisk Metro- banking E Proust The specialist business model Putting the customer first – branch network is a strategic asset The glue

Page 19 “Putting customers first” is critical to the next phase of our specialisation strategy Four customer businesses created More accurate and appropriate segmentation of customer base The branch network as a strategic asset All customer facing processes being redesigned and automated Earning the trust of the community Cultural change program Technology being implemented: –Integrated front-end across all channels and products –Straight through processing –CRM and behaviour scoring CRM Marketing (Recent Case Study demonstrating effectiveness of predictive models)

Page 20 Our targets Increase NPAT by 15%+ CAGR to 2005 Continue above market growth momentum of product businesses Develop above market growth momentum in customer businesses Continue to drive productivity to fund growth investments Grow customers faster than our peers –1 million new customers by 2005 Double customer and staff advocacy by 2004 –Publicly report results

Page 21 Summary Personal is performing well – specialisation works – above market growth We have substantial growth opportunities Now applying specialist focus to our customer businesses We are differentiating ourselves through our specialist strategy Realising a unique growth opportunity