ANZ Delivering for Shareholders Presentation to CLSA Investors’ Forum 2000 John McFarlane, Chief Executive Officer 16 May 2000

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 Trade, an emerging strong e-Commerce position and an offshore network in Asia and Pacific (Grindlays sale announced 27 April). m Assets$167b m Market Cap$17.5b m Profit(first half 00)$817m m Staff28,940 m Credit RatingAA-/Aa3 ANZ Headquarters 100 Queen Street Melbourne

March 2000 Results m Double-digit earnings growth14%. EPS 10% m Increase ROE towards 20% 17.8% (17.3%) m 53% cost income ratio 51.4% Costs flat m Reduce risk Matches peers ex Grindlays m Achieve an optimal capital structure$500m buyback completed $1bn buyback announced ANZ Delivers on Financial Commitments

Financial Performance EPSTier 1 Ratio ROE Lending Mix Cost Income Ratio % WBC CBA ANZ NAB % Emerging Markets Mortgages ¢ % %

Business Unit Performance A$ Personal 45% Corporate 38% International 9% Other 8%

Change in Profit $m 650 Second Half 1999 First Half 2000 Net Interest Income 34 Lending Fee 20 Other Fee Growth 30 Other Income 17 Doubtful Debts (4) Costs (9) Tax (34) Property Revaluation 30 Sale of Strategic Investments 33 Restatement of Deferred Tax Balance (64) Significant one off items (1)

Improving Asset Quality General Provision Foreign Exchange Impact (18) Surplus $m Non Accrual Loans Sep 99Mar 00APRA Guidelines Minimum Specific ProvisionsNet Non Accrual Loans H $m Net Transfer to Specific Provision (197) ELP Charge

m Capital management objective ã Increase ROE ã Maintain AA status m Targets ã Tier % ã Inner Tier 1 6.0% - 6.5% m Reducing excess ã $500m buyback completed ã $1bn buyback in process Capital Management a Priority Ratios Hybrid Tier 1Inner Tier 1Net Tier 2 %

Outcomes Mortgage & cards share up Personal 45% of group profit FM challenging, new team Leadership position enhanced ROA 0.9% (0.7%) Non accruals 0.4% (0.9%) Grindlays sale Latin America Offices closed Asia-Pacific e-Commerce focus Approaching leadership B2C Strong portfolio B2B Web enabled internal processes Numerous venture investments Business Strategy m Accelerate growth in Personal m Build on strength in Corporate m Simplify and focus International m Build leadership in e-Commerce Good Progress on Business Strategies

Share of Credit Card Spend Share of Housing Lending % % Momentum in Personal Internet Banking Users as % of Main Relationships Source: Ord Minnett and Roy Morgan Research Internet Banking Registrations

Leadership in Corporate m Pre-eminent Corporate Bank in Australia and New Zealand in terms of relationships and customer satisfaction m Leader in Treasury Products (FX, Risk Management) m Esanda/UDC No1 Finance Company in Australia and New Zealand m Leading Structured Finance Specialist in Asia m No 1 in Trade in Australia Business Banking Relationships Australian Market Share 1999 (%) Customer Perception of Service Delivery 1999 (out of 10)

Sale of Grindlays m Price US$1.3 (A$2.2)bn – Net Asset Value US$590 (A$990)m – Goodwill US$750 ($A1,250)m m Dividends $US0.5 (A$0.9) billion from Grindlays retained earnings m Price multiples (excluding dividend) – 2.3 times net asset value, 14.2 times annualised first half 2000 earnings m Cooperation Agreement with SCB to service ANZ customers m Final consideration subject to Net Asset Value at completion m Customary representations and warranties m Indemnity regarding litigation matters including NHB m Completion expected 3Q subject to regulatory approval

ANZ Profile GroupGrowthGrindlays m Assets$167b$14b$10b m Profit$817m$53m$79m m Staff28, m Representation3914 ANZ Headquarters 100 Queen Street Melbourne

Delivering via the Web B2C B2B Identrus FX On-line (ANZ On-Line) E-Procurement Employee PCs operations.com Sales & Service Platform Directors on line ERP Transformation Enterprise Resource Planning

Improve sustainability of core franchises Strategic Imperatives Accelerate the growth program across 3 horizons Radical transformation of the business

m Reallocate investment towards current traditional growth opportunities m Build substantial portfolio of e-products and businesses m Build semi-global niche positions in trade, FX, structured finance, cards and e-Commerce m Rapidly roll-out e-Commerce investments in Asia Strategic Imperatives Accelerate the growth program across 3 horizons

Radical transformation of the business Strategic Imperatives Accelerate the growth program across 3 horizons m Revolutionise cost base to compete with new economy competitors m Embrace web technology to achieve seamless integration m Become a customer-centric company by organising around different customer segments m Build culture and talent to compete in the new economy

Improve sustainability of core franchises Strategic Imperatives Accelerate the growth program across 3 horizons Radical transformation of the business m Continue to expand leadership in Corporate m Complete domestic Personal footprint – organically – infill acquisitions m Address retail funds management strategic position m Medium-term search for transformational moves m Improve capacity to participate in industry consolidation on our terms

Financial Goals Going forward m Earnings per share growth that outperforms the average of our peer banks m Increase Return on Equity: Target 20% m Cost income ratio comfortably below 50% m Inner Tier 1 ratio approaching 6% m Maintenance of credit rating in AA category

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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)