Performance and Growth - delivering on our commitments Australia and New Zealand Banking Group Limited November 2000 John McFarlane Chief Executive Officer

Page 2 ANZ One of the ‘Big Four” Australian banks. Provider of full range of financial services in Australia (since 1835) and New Zealand (since 1840) with leadership in Corporate Banking, Credit Cards and Mortgages, an emerging strong e-Commerce position and an offshore network in Asia and Pacific. AssetsA$172b Market CapA$21b Profit(pre abnormals)A$1,703m Staff23,134 Credit RatingsAA-/Aa3 ANZ Headquarters 100 Queen Street Melbourne

Page 3 Highlights  Earnings growth of 15% (13.3% compound)  Return on equity 18.3% (17.2%)  Cost income ratio 51.7% (54.5%)  Grindlays sold, realising net profit after tax of $404m after related provisions  Income up 6%, costs flat, ELP down 4bp’s to 39bp’s  $2bn returned to shareholders in the form of dividends and share buyback  Dividends returned to 100% franking  Restructuring charge to accelerate transformation program

Page 4 Our commitments to shareholders three years ago: Achieve superior financial performance –Deliver double-digit earnings growth –Improve return on equity –Bring down our cost income ratio to 53% Re-balance our portfolio –Increase proportion of Personal business –Enhance leadership position of Corporate –Simplify and focus our International business –Build momentum in eCommerce Reduce risk

Page 5 We have delivered superior financial performance $m NPAT CAGR 13.3% % ROE Cost Income Ratio Total Shareholder Return

Page 6 We have re-balanced our portfolio NPAT Loans & Advances PFS CFS International 27% 50% 23% 49% 41% 10% 56% 39% 5%5% 43% 49% 8% Includes Grindlays Excludes Group

Page 7 We continue to reduce risk ELP Factors bp’s Market Risk (Av. VaR) A$m Beta reducing towards 1.0, in line with peer average

Page 8 Overall book continues to improve AAA to BBB+ BBB to BBB- BB + to BB BB- > B Australian Lending Asset Profile $b Australian Loans & Advances Investment grade 66% of book Diversified portfolio Minimal exposure to media/telco’s Mortgages now represent 46% of book, up from 40% in March 1999

Page 9 Asian credit quality improves significantly despite two large specific provisions Asian Specific Provisions Risk Grade Profile Specific Provisions relate to two unusual losses ‘B’ exposures now only $130m Investment grade 68% of book Expected losses declined significantly from 1.4% to 0.5% AAA to BBB+ BB+ to BB BB- B to CCC Non-accrual BBB to BBB- $m Daewoo A single ‘B’ exit account $2.9b$4.3b

Page 10 Provisioning levels strengthen (383) (51) (90) APRA Guidelines ELP charge Net SP transfer FX impact Sale of Grindlays ELP - Economic Loss Provision SP - Specific Provision General Provision ELP charge* * ex Grindlays for 2000 Times $m Surplus 406

Page 11 Accelerating our transformation program Standardisation and rationalisation of IT and processing platforms Rationalisation and upgrading of EFTPOS network Transformation of Branch Network Improving efficiency in Asia/Pacific by rationalising IT platforms and centralising back office processing Establishing new business platform for Esanda 35 Initiatives across our portfolio of businesses including: Expected cost reduction $300m

Page 12 Building for the future - recap on our strategy Proposition Specialists will win over conglomerates Corporations need to embrace new technologies Value depends on performance and growth Strategy Reconfigure ANZ as a portfolio of 21 specialist businesses An e-Bank with a human face Drive results whilst investing in growth businesses Perform and Grow e-Transform Specialise Implications Specialist approach to customer and product businesses Transform the way we do business by using IP technology Meet expectations, fund growth by cost reduction

Page 13 Portfolio breakdown - indicative International Personal Corporate Other Cards Wealth Mgmt Mortgages Funds Mgmt General Banking Small Business Corporate Foreign Exchange Asset Finance Capital Markets Institutional ANZIB Financial Services Transaction Services Asia Pacific % * Excluding Grindlays ($127m) $1,703m* 40m* $772m$647m International Customer Businesses % Personal Corporate

Page 14 e-Payments Gen Banking Corporate FM Mortgages GSF Esanda Wealth FX Institutional Different businesses need different strategies Low High Invest for rapid growth Defend position and return Grow selectively Create new businesses Optimise performance Identify new growth products ROE Market Growth Business size by NPAT Small Bus Cap Mkts Cards e-Asia GTS

Page 15 Portfolio strategy should reflect degree of globalisation and leverage real capabilities Impact of globalisation ANZ’s capability FX Institutional Banking Mid Corporate GSF Custody Capital Markets Trade Esanda B2B General Banking Small Business Mortgages Cards B2C now Later Not yet Less developed At parLocal leader Regionally distinctive Globally distinctive Soon Wealth Management Funds Management

Page 16 We are delivering consistent growth Growth has been strong, particularly in mortgages and cards Consistently increased market share, without material acquisitions Declining profits in International offset by substantial growth in PFS Profits in PFS less volatile, giving us a strong base * * Excludes Grindlays for 2000 $m % Australian market share - assets NPAT

Page 17 Balancing the autonomy of each business with strong leadership from the centre Prime accountability for profit and value Freedom to pursue opportunities within agreed boundaries Operate using agreed set of platforms, systems and shared services Transfer pricing based on market - no cross subsidisation Drive group strategic direction and set policy Portfolio management and resource allocation Cross-Business Unit synergies Control and oversight of risk, brands and technology Business UnitCorporate Centre

Page 18 Personal Financial Services Peter Hawkins General Banking Wealth Management Small Business MortgagesCards Funds Management Drive sales and efficiency Invest to grow Aggressively rebuild Maintain profitable growth Accelerate growth Reinvigorate and grow 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 Leverage distribution channels Optimise products/ capabilities Double FUM by 2003 Theme Priorities SystemsCRMSSPBrandRisk Management Accountabilities PFS 50% Group 50% Make the numbers Achieve on-line targets Deliver new value to other Bus Strengthen ANZ e.commerce leadership

Page 19 The Group has delivered compound EVA growth of 20% pa EVA* Growth ( ) ,000 1, EVA ($m) CAGR ~ 20%pa EVA Management Philosophy mThe Group is being managed to outperform peers in terms of EVA growth over time mInternal stretch EVA performance targets are established for businesses based on peer and market expectations mBusiness units develop strategies that are expected to deliver against mid-term EVA targets mBusiness unit performance managed against stretch EVA targets mCompensation tied to performance against EVA targets * EVA = PAT adjusted for economic credit costs, the value of imputation credits, the cost of equity (at 11%) and one off items

Page 20 ANZ in the medium term Material reallocation of resources Substantial e-transformation reducing costs and focused service Performance optimised –EPS, ROE, investment –capital management Transformational cultural change Substantial portfolio shifts Narrower, more focused portfolio with leading positions Increased investment in high growth business Modern performance culture Higher stock rating ANZ in yearsANZ in years

Page 21 Goals going forward EPS growth above peer average (target 10+%) ROE over 20% Cost-income ratio comfortably in the 40’s Maintain AA category credit rating Inner Tier 1: 6%

Page 22 Active capital management a priority % $b Progress $1014m of buyback Capping of DRP/BOP to reduce dilution Remaining $500m buyback in progress Restructure more EPS accretive than buyback Capital Management Philosophy: Capital scarce resource to be managed effectively and efficiently Maintain capital consistent with ANZ’s AA status and peer group ratings –Tier 1 ( %) –Inner Tier 1 (6.0%)

Page 23 Wholesale term funding – 1999/2000 achievements Issued A$5.9 billion term wholesale debt Sourced 11% Domestic market 80% Euro markets 9% US markets Domestic Market: Increased 10/2002 series by $300 million Added new series - $500 million 9/2004 Extended yield curve Outstandings now A$1.75 billion Major Banks trading within 1bp

Page 24 Wholesale term funding - strategy for 2000/2001 Pursue diversification - by investors and markets Maintain prudent approach to liability maturity management –spread of maturities from 1 to 5 years with an objective to achieve a weighted average term of 3 years –maintain yield curve out to a maximum of 5 years in both domestic and euro markets Funding requirement $6 billion subject to amount of securitisation undertaken Sourced 20% domestically 80% offshore

Page 25 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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