1999 Annual Results Australia and New Zealand Banking Group Limited 3 November 1999

Shareholder Highlights m Earnings per ordinary share 90.6c (77.2c) up 17% m Dividend 56 cents, up 8% m Franking increased to 75% interim, 80% final (60%) m Total shareholder return 19.6% (-15.6%) m $500 million share buy-back

Financial Highlights m NPAT $1,480 million versus $1,106m ($1,175 before abnormals) m Income up 6%, costs down 4%, ELP up 5% (SP down 6%) m Return on Equity 17.2% (15.5%) m Cost income ratio 55.0% (60.9%) m ROA 1.0% (0.8%) m Risks reduced. Gross non-accruals down 7%, net down 27% m Earnings quality improved. No Abnormals. No Surprises

Significant Improvement Achieved ROE % Cost Income Ratio % ROA % Gross and Net Non-Accruals $m 1, ,662 1,543

Business Highlights m Strategic re-positioning on track in all segments m Good earnings growth in Australia and NZ m Business mix substantially improved. High risk businesses exited m Domestic market share up notwithstanding cost focus m 105,000 internet banking customers (8,000). ANZ E*TRADE launched m Major technology projects completed on time

Improving Business Mix Business Segment Profit After Tax Other International Corporate Personal Up 33% Up 17% Down 20% Business Segment Proportion Personal Corporate International Other

Leveraging Technology: anz.com Registrations Days Required to Add 10,000 Customers m Online application for all major products m ePos service for merchants m New Edify Internet Banking platform m Alliances with Excite & Yahoo m ANZ e*TRADE alliance m Esanda 10% stake in Autogroup m “Pay Anyone” open payments m eGate business payments platform m Internet Banking launched in NZ

m Achieve growth in Personal and Business Banking m Enhance focus on Premier, Small Business, Retail Funds m Improve asset mix and return in Corporate m Complete re-positioning of International, turn around sub- optimum businesses m Build anz.com market position to domestic leadership Business Strategy

m Increase ROE. Add RORWA to EVA as key measure m Target flat costs. Lower cost income ratio m Improve asset quality, particularly International m Achieve an optimal capital structure m Set stretch performance targets and linked incentives m Successfully manage the Y2K transition m Target highest increase in e-Commerce customers m No surprises Continue to Deliver in 2000

Drivers of Performance ROA ROE NII/Interest Earning Assets Net Interest Assets Other Income Assets Cost Assets Provisions Assets Leverage Risk Business Mix Cost/Income Provisions/NLA

Good Progress Across the Board ,106 Abnormal Items 69 1,175 Net Interest Income Growth 98 Lending Fee Growth 87 Other Fee Growth 93 Growth in Other Income 42 Lower Costs 83 Software Capitalisation 61 Higher Provisions (23) Increased Tax (136) 1,480 $m Post Abnormals 1998 Pre Abnormals

Margins Stable as Balance Sheet Re-positioned Net Interest Average Margins Average Interest Earning Assets % $b Australia New Zealand International

Mar-97Sep-97Mar-98Sep-98Mar-99Sep * * Sept 98 trading loss of 145m, Other income of 139m Other FX Other Fees Lending Fees Trading Non Interest Income Steady Growth, Better Quality

Costs and Cost Income Ratio Lowered Cost Income Ratios % ANZ WBC CBA NAB *NAB & WBC first half

Improving Business Mix Australia New Zealand Overseas Geographic Profit After TaxBalance Sheet Assets Overseas Other Domestic Mortgages A$m A$b

Gains in Australian Market Share Total Market Share Share of Credit Cards % ANZ NAB CBA WBC Share of Housing Lending % % Share of Business Lending % Aug-99

US$b FX Interest Reducing Risk US$b Asian Exposure Market Risk (VaR - Ave) A$m AAA-BBB+ BBB BB BB- <B+ $65b $90b Australian Lending Asset Profile % Equities

Gross Non-Accrual Loans Non-Accrual Loans Net Non-Accrual Loans As at 30 September $m Gross Net Cover Australia % New Zealand % International % $m

Provisioning: Personal & Corporate Offset International ELPSP Personal Financial Services Corporate Financial Services International $m

Specific Provisions by Region Asia Australia & NZ Middle East UK/Europe South Asia Asia Australia & NZ Middle East UK/Europe South Asia 1998 $512m 1999 $482m

Provisioning: ELP > SP at Group Level ELP - Economic Loss Provision SP - Specific Provision Sep 98Sep 99APRA Guideline ELP Charge Net SP Transfer $m FX Impact

Buyback to Reduce Capital Surplus Capital Management Philosophy: m Capital scarce resource to be managed effectively and efficiently m Maintain capital consistent with ANZ’s AA status and peer group ratings ã Tier 1 ( %) ã Inner Tier 1 (6.0% - 6.5%) aligned to Economic Capital m $500 million buyback Capital Adequacy Ratio % Tier 1 APRA minima Hybrid

Economic Value Added (EVA) Net Income5,966 Operating Expenses(3,294) ELP Charge(510) Tax(676) Franking & Other Adjustments 352 Adjust Profit1,838 Cost of 11% (1,004) EVA834 * Hurdle of 15% used in internal models $ million

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 David Ward General Manager Office of the Chief Executive ph (613) fax (613)

Sep-99 Profit & Loss A$MSep-97Sep-98 Net Interest Income 3,4373,547 Fees1,459 1,574 FX Trading Securities182 Other Net Income5,5475,646 Expenses Personnel1,9491,854 Premises Computer Other Restructuring Costs90120 Total Expenses3,5023,438 Profit Before Provisions2,0452,208 Doubtful Debts Tax NPAT BeforeAbnormal Items1,1711,175 Abnormal Items NPAT andAbnormal Items1,0241,106 3,645 1, ,966 1, ,294 2, ,480 - Non Interest Income 2,1102,0992,321

Profit Before Provisions1,0241,0211,1641,0441,302 1,370 Mar-99 Profit & Loss A$MMar-97Sep-97Mar-98Sep-98 Net Interest Income 1,7181,7191,7731,7741,811 Fees FX Trading Securities Other Net Income2,7182,8292,9012,7452,945 Expenses Personnel Premises Computer Other Sub Total1,6941,7181,6971,6211,594 Restructuring Costs Total Expenses1,6941,8081,7371,7011,643 Doubtful Debts Tax NPAT BeforeAbnormal Items Abnormal Items - - NPAT andAbnormal Items Sep-99 1, , , , Non Interest Income1,0001,1101, ,134 1,187

Strong Management Team m John McFarlaneCEOCitibank, Standard Chartered m David BoylesCIOAMEX, BOA m Roger DavisCorporateCitibank m Peter HawkinsPersonalANZ m Peter MarriottCFOANZ, KPMG m Greg CammMortgagesANZ m Larry CrawfordDistributionFirst Bank Systems, Wells Fargo m Bob EdgarBusiness BankANZ m Kathryn FaggBanking ProductsMcKinsey & Co m Brian HartzerCardsFirst Manhattan m Elmer Funke KupperInternationalMcKinsey & Co m Mark LawrenceRiskSoc Gen New York m Peter McMahonAsset FinanceANZ, Costain m Grahame MillerANZIBANZ m Elizabeth ProustPeopleVictoria Public Service m Alison WatkinsStrategyMcKinsey & Co