Corporate & Institutional Banking Dr Bob Edgar Managing Director Australia and New Zealand Banking Group Limited 20 July 2001

Page 2 The relationship gateway to our corporate customer base Financial performance Strong customer focus Conservative risk management Growth focused on fee-based investment banking style products Goals for Corporate & Institutional Banking

Page 3 Corporate & Institutional Banking Institutional Banking Middle market companies with $10 - $100m turnover 5500 customers & targets Geographic relationship management model with 21 regions across Australia & New Zealand Regional Credit Executives located with relationship Management of overall customer relationship & profitability Balance sheet management Navigation, co-ordination & solutions development between product areas for our customers Corporate Banking Key Responsibilities Top end corporates in with $100m plus turnover Has ~1000 customers & targets, in Australia and New Zealand 9 Specialised Industry Segments Supported by Credit Products Group

Page 4 Institutional Banking continues to perform strongly Mar Mar-00 Sep-00 FTE Profit After Tax Mar-00 Sep-00 Mar-01 31% Growth Mar-00 Sep-00 Mar-01 Operating Income 22% Growth $m Mar Mar-00 Sep-00 Cost Income %

Page 5 Corporate Banking performance has been more subdued Mar-00Sep-00Mar-01 Cost Income % Mar-01 Mar-00Sep-00Mar-01 FTE Mar-00Sep-00 Operating Income 3% Growth $m Profit After Tax Mar-00Sep-00Mar-01 7% Growth $m

Page 6 CIB relationship management is the gateway to our corporate customers The value of the CIB customer franchise is much larger than the reported ‘balance sheet’ driven numbers Over 40% of revenue from CIB customer base is booked in other business units Over 60% of NIACC (Net Income After Capital Charge*) is booked in other business units Taking a complete customer view ensures cross-selling opportunities are optimised * NIACC is an EVA based profitability measure used within ANZ at the customer level RevenueNIACC Source of Customer Revenue & NIACC CIB Australia & NZ

Page 7 CIB drives for continuous change to be a high performing customer business Distribution Strategy  Role clarity  Process improvement Customer Profitability tool Product specialists in regions e-Transformation Outsourcing / centralisation - CTSC - Securities Industry specialisation in IB NIACC$130m CTI36% ELP53bp NIACC$460m CTI28% ELP37bp Corporate Banking portal  CARBe  Impact

Page 8 We are a leader in customer relationship management Overall Satisfaction with Bank (Corporate Bank) ANZNABCBAWBC Source: Roberts Research Group Satisfaction with Relationship Manager (Corporate Bank) Total customers Significant Bank R’ships Lead bank customers Market Position (Institutional Bank) Relationship Management (Institutional Bank) Overall satisfaction Quality of account management Level of ideas & initiatives Understanding and knowledge of business Prompt follow-up Source: Greenwich Associates

Page 9 Risk profile and management stance remain conservative Risk grades 7D-10 [ie B to D external credit ratings agency equivalents] are less than 4% of total book This reflects a substantial improvement in book quality Risk grades 5-7C [ie BB+ to well secured B] improved from 54.3% to 43% of book. Risk Profile CCR Assets (%)

Page 10 For key asset quality indicators, CIB has a solid record - no systemic credit issues Risks actively managed Enhanced credit management processes reducing expected loss rates in the business, (eg ‘one-up’ reviews) Whilst net specific provisions have increased during the first half year, the loss rate is still well below ELP rate At this stage of the credit cycle, we expect specific provisions to increase towards ELP ELP Rate SP Rate % of Lending Assets ELP is a key measure of portfolio quality

Page 11 Growth is increasingly being driven by investment banking style products… Traditional Income – lending, transaction, deposit & trade products Other - principally products from the Personal portfolio Institutional Corporate Traditional Income Inv. Bank products Other Mar-00Mar-01 Traditional Income Wall St to Main St Other Mar-00Mar-01 Index

Page 12 What do our customers want? - their top 3 needs are CB to focus on: Wall St to Main St Cross sell products from the Personal businesses into our customer base: Corporate portal to lower cost to serve Corporate Banking ‘Balance Sheet’ on reasonable terms Partner & trusted advisor Smart products / customised solutions Institutional Banking Industry Knowledge Creative ideas and solutions High quality service proposition IB’s focus will be: Leverage the success of Industry Specialisation to our institutional customers Client servicing Corporate Portal – helps customers streamline operations

Page 13 …supported by world class customer value management systems like MARS Management Analysis Reporting System Relationship expense Transaction details Product & pricing details Risk profile Key InputsKey Outputs Customer profitability “What if” scenarios Product profitability Risk based pricing Share of overheads

Page 14 Summary The pre-eminent domestic corporate banking franchise Our cross sell focus is embedded in the sales network, driven to growing non-balance sheet product solutions for customers Optimising overall customer value is driving new revenue opportunities The business will continue to build industry specialisation Goals Double digit earnings growth Continue growth and diversification of customer revenue mix Maintain customer satisfaction ratings Performing loans remain at 99% of total book

Page 15 Copy of presentation available on