1. Perform Grow and Breakout Investor Presentation
Australia and New Zealand Banking Group Limited May 2001
John McFarlane
Chief Executive Officer

2. ANZ - who we are One of the ‘Big Four” Australian banks.
Provider of full range of financial services in Australia (since 1835) and New Zealand (since 1840)
Leadership in Corporate Banking, Credit Cards and Mortgage origination, a strong eCommerce position and an offshore network in Asia and Pacific.
Assets A$181b (US$ 95b)
Market Cap A$20.5b (US$ 11b)
Profit (half year) A$895m (US$ 470m)
Staff 22,815
Credit Ratings AA-/Aa3
ANZ Headquarters
100 Queen Street
Melbourne

3. Lending assets by asset type Total assets by geography
ANZ is different…..
Lending assets by asset type
Total assets by geography
A$b
A$b
We were
Reliant on market trading earnings
Higher risk asset base, particularly emerging markets
Prone to adverse surprises
Today
Developing specialist businesses from distinctive capabilities
Australasian, with regional interests
Strong consumer growth engine balancing leading position in Corporate
* as at 31 March 2001

4. Building for the future - a distinctive strategy
Proposition
Entrepreneurial specialists create more value
Corporations must embrace new technologies
Value depends on performance, growth and breaking out
Strategy
Reconfigure ANZ as a portfolio of 16 specialist businesses
An e-Bank with a human face
Drive results, invest in growth businesses and create new paradigms
Implications
Specialist approach to customer and product businesses
Transform the way we do business with IP technology
Meet expectations, fund growth by cost reduction, transform
Specialise
e-Transform
Perform Grow
& Break out

5. Implementation of our strategy is progressing well
Specialisation
16 Business Units within 3 portfolios, plus corporate centre
Separate financial reporting for each Business Unit
eTransformation - the eBank with a human face
Leading internet banking penetration
Highest profit per employee
Perform Grow and Breakout
Perform  exceed market expectations
Grow  higher than system revenue growth, position in high growth sectors
Breakout  bold transforming moves

6. Evolution of Perform Grow and Breakout
Build the foundation
Deliver on the fundamentals
Earned the support of the market
Identify growth opportunities
Invest to grow
Create a breakout mentality
Create a strong performance culture
Out execute in a different game

7. Transforming ANZ through Perform, Grow and Breakout
Focus: long term ‘destiny’
Benchmark: global industry/players
Looking for: transforming moves
Horizon: years
Success: dramatic market cap increase
Break
out
Focus: specialisation and out-growing the market
Benchmark: competitors in each business
Looking for: breakout moves in key
businesses (eg QTV, Origin)
Horizon: 3-4 years
Success: 4-5 moves taking share and
worth ~AUD1bn+ market cap each
Grow
Focus: performance
Benchmark: market expectations
Looking for: six monthly delivery
Horizon: 1-2 years
Success: meet/exceed expectations
consistently
Perform

8. We are performing well - interim results
NPAT from continuing operations $907m - up 18%
EPS up 13% to 55.8 cents
ROE of 19.1%, up from 17.8%
Costs flat - cost income ratio down to 49.4%
Credit quality sound:
ELP charge down to 35 bp’s
Total non-accruals down
Specific provisions flat
Profit on sale of holding in St George $99m ($65m after tax), offset by write downs in investments ($84m)
Improved disclosure - financial information provided for each business unit
Note: Comparisons are against half year ended March 2000 (including Grindlays)

9. ...and building a strong track record
NPAT/ROE
Cost to Income
NPAT $m
ROE %
Internet banking users as % of main relationships
Non-accrual loans
Source: JP Morgan & Roy Morgan Research

10. Revenue growth driving earnings per share%
Non Interest Income
15%
Mar 00 v Mar 01
Acquisitions
-1%
Average interest earning assets
27%
Tax
-11%
Expenses
-6%
Provisions
-1%
Discontinued Operations
-8%
% contribution to EPS growth
Margin Compression
-5%
18%
Capital Management 4%
13%
Pref Shares
-1% 9%
NPAT Continuing Operations
Earnings - Ordinary Shareholders
EPS Growth

11. Good profit growth across a diversified portfolio Mar 00 v Mar 01
Personal
Corporate
International and subsidiaries

12. 80% of businesses delivered revenue growth greater than expense growth
ROE
revenue growth %*
Mortgages 50
top third 45
middle third 40 35
bottom third
Cards 30 25
Institutional
GCM 20
GSF
Asia 15
GFX
Pacific 10
GTS
General Banking
Corporate
expense growth %*
Small Business 5
Wealth
-25
-20
-15
-10 -5 5 10 15 20 25 30
Asset Finance -5
-10
Investment Management
-15
*based on pcp

13. We are developing a track record for building growth businesses% %
Share of credit card spend
Mortgage market share 95 96 97 98 99 00 01 95 96 97 98 99 00 01 m $m %
Personal customers - Australia
FM inflows (LHS)
Deposit market share (RHS)

14. Most businesses expected to grow above market over next 2-3 years
Market Growth
Personal
Wealth Management
High
Corporate
Investment Management
Cards
Int. & Subsidiaries
GTS
Asia
Mortgages
GCM
Medium
GSF
Small Business
GFX
Institutional
Metro Banking
Corporate
Regional Banking
Low
Pacific
Asset Finance
Note: Size of bubble
approximates
relative profit
contribution
BU Growth
Below Market
At Market
Above Market

15. Substantial growth opportunities in Personal
System Growth
Underlying credit growth ~ 8-10% pa
Market Share
Product businesses growing customer numbers and mkt share
Customer #’s increasing by 1.0m - translates to $650m in additional revenue pa
Increase Wallet
Customer businesses deepening wallet share
$650m revenue gain by matching our peers
Created customer businesses
Sales programs
CRM
Total potential revenue growth - $1.5b
Customer #’s (m)
Peer Average
Increased wallet on higher share $160m 10
Potential revenue $650m
7.3 5 4
Potential revenue $650m
Existing revenue
$2.6b
40%
50%*
Share of Customer Wallet
* Average share of wallet for CBA, NAB, SGB, WBC - source: Roy Morgan Research

16. Our breakout approach is differentiating us
Specialised businesses
First class execution (no surprises)
Strategy
Staff
Customers
eTransformation
Risk
91% of managers on individual contracts
12% rise in staff satisfaction
Establishment of Customer Charter, Customer Advocate and distinctive customer and community initiatives
Leading cost income ratio
Highest internet banking penetration
Leading financial disclosure & transparency
EVA embedded in culture

17. + Developing a breakout performance culture Coordination and control
Mission
/aspiration
where we are
where we want to be
Distinctive (Top 10%)
Targets/goals
Superior (Top 25%)
Organisational
approach
Average
BU Performance
feedback
Consequence management
Rewards & recognition
People
Opport-
unities
Financial
Operational +
Values
Coordination and control
Motivation
Average
Superior
Distinctive
* Benchmark - 33 Australasian companies surveyed over

18. Perform Grow Breakout ANZ’s aspiration
A high performing company, exceeding expectations
Revenue growth
Cost leadership
Risk mitigation
EPS
ROE
Positioned in growth markets
Actively managed portfolio
Annual investment in growth ideas
Higher than peer revenue growth
Perform
Grow
AND
Breakout
More dynamic than competitors
High P/E rating
Performance culture
Lean and agile
The e-bank with a human face
A breakout mentality

19. We are on track to deliver on our 3 year commitments
Measure
EPS growth
ROE
Cost-income ratio
Inner Tier 1
Credit rating
3 Year Commitment
> 10%
> 20%
mid 40’s 6%
maintain AA category
Achievement
13%
19.1%
49.4%
6.2%
maintained
We have also committed to improving customer satisfaction, and will publicly report our progress

20. We are on track to achieve our goals
Summary
We are performing well
Cost management momentum – eTransformation has just begun…
Risk reduction continues
Our new strategy is creating value and better positioning us for growth
We are differentiating ourselves through our Breakout program
We are on track to achieve our goals

21. 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)

22. Supplementary Information
2001 Interim Results and credit quality information

23. Strong income growth, with good progress across the board
Profit on sale of St George 65
Write downs
(84)
Non-Interest Income 76
Expenses
(34)
Abnormal/ Discontinued Items
104
Provisioning
(14)
Interest Income 84
930
Tax
(12)
Discontinued
(12)
907
895
Eftpos NZ acquisition and GST ($26m)
826
2H 2000
2H 2000 Continuing
2001 1H Continuing
2001 1H

24. # - no tax relief on these writedowns
“Unusual” items – St George profit offset by write downs in investments
St George - $99m profit ($65m after tax)
regulatory issues
- not critical to strategy
attractive price
Panin
Share Price
IDR
Panin - $43m writedown#
long term growth prospects remain positive
E*Trade - $21m writedown#
online broking service provides core customer offering
Other - $20m writedown#
a number of small eCommerce related investments $
E*Trade
Share Price
# - no tax relief on these writedowns

25. * For continuing businesses
Income drivers* %
Margins stabilised in first half
Benefit from differential between 90d BBSY and cash rate
Greater focus on improving margins
Other
Non-interest income continues to grow
Trading FX
Driven by higher non-lending fee income
FX profits higher, reflecting AUD volatility
Other Fees
Lending Fees
* For continuing businesses

26. Cost-income ratio on track to meet target of mid 40’s
CTI
Sale of Grindlays
Reduction in Cost Income ratio driven by revenue growth and cost control
Approximately $65m of restructuring provision used
two year program, with benefits principally 2002 and beyond
eTransformation will continue to drive costs down

27. Personal portfolio
Mortgages and Cards reinforce value of our specialisation strategy
Clear opportunities for customer businesses to replicate success of product businesses
Significant market share growth opportunities remain
creation of Metrobanking and Regionalbanking
a 1% increase in market share for customer businesses worth $100m+ revenue $m

28. Corporate portfolio – fee income driving profit growth
Five of six businesses delivered profit growth greater than 10%
“Non-traditional” income for Corporate Banking grew 40%+ on annualised basis, largely by executing Wall St to Main St strategy $m

29. International & Subsidiaries – risk reducing, profits up
Asset Finance reconfiguring back office platform to deliver substantial efficiencies
Negative profit growth for Investment Management due to tax changes and increased growth spend
Asia showing positive signs, on track to record significant profit growth for the full year
Asian Credit Quality
AAA to BBB+
BBB to BBB-
BB-
BB+ to BB
B to CCC
Non-accrual

30. Capital management will continue
Philosophy:
Maintain capital consistent with ANZ’s AA status and peer group ratings
Tier 1 ( %)
Inner Tier 1 (6.0%) % $b
7.9
7.7
7.5
7.4
7.3
6.7
6.9
Progress
$413m in share buybacks in the half year
New framework for allocating capital for operating risk implemented
Capping of DRP/BOP
6.5
6.4
6.2

31. We continue to actively manage and reduce risk
Lending Profile by Asset Type*
Exiting higher risk businesses
More emphasis on lower risk businesses
Corporate balance sheet deliberately constrained – focus on fee income
Risk based approach embedded through EVA
business
consumer
* CBA as at 31/12/00, NAB & WBC as at 30/9/00

32. Gross Non-Accrual Loans
Total non-accrual loans continue to fall, but increase in Australia
Historic
Geographic
Gross Non-Accrual Loans $m
Gross Non-Accrual Loans (LHS) $m
Non-Accrual Loans/
Loans & advances (RHS)
Net Non-Accrual Loans (LHS)
Aust NZ
Inter

33. Arrears analysis indicates no systemic deterioration
% personal lending assets over 60 days in arrears % %
Personal Loans
Business FDAs
Credit Cards
Housing Loans
RILs*
Overdrafts
Small upturn in arrears in Jan-Feb largely reversed during March
Arrears broadly in line with same period last year
Increase in credit card arrears reflects seasonal influences
Personal loan arrears continue to increase in % terms due to reducing book
* Residential Investment Loans

34. Corporate risk grade profile
Corporate book holding up well, despite a few one off “issues”
Corporate risk grade profile
Risk actively managed
Quarterly strategy reports prepared for all high risk accounts
June to October all BB rated accounts within Corporate reviewed in expectation of downturn
New accounts > $3m to be referred “one level higher”
AAA to BBB+
BBB to BBB-
BB + to BB
BB-
> B
>B = B, B-, CCC
& non-accrual

35. Credit quality is sound in some of our larger industry exposures - Australia
Lending Assets (AUDm)
% of Portfolio (RHS scale)
% in CCR 7D-8G (RHS scale) x
% in CCR 9-10 (RHS scale)
Real Estate Operators & Dev.
Manufacturing
Retail Trade
Accomm. Cafes & Restaurants
Construction
Agriculture

36. Group risk grade profile continues to improve
$114.6bn
$126.5bn
$134.9bn
$141.0bn
AAA to BBB+
BBB to BBB-
BB + to BB
BB-
5.4%
3.9%
> B
7.2%
3.8%
ELP (bp’s) 45 43 38 35
>B = B, B-, CCC
& non-accrual
Risk grade profiles by division and geography in appendix

37. Provisioning levels remain strong
represents
3 years
expected
losses $m
ELP charge %
GP/Lending Assets*
241
FX impact 27
1460
1373
(181)
Net SP transfer
Surplus448
1012
2000
1H 2001
APRA Guidelines
ELP - Economic Loss Provision
SP - Specific Provision
* includes acceptances

38. Current provisioning in line with expectations
Personal
Corporate
Int & Sub.
Actual SP v ELP charge
ELP charge
SP charge $m
ELP is a function of volume (on and off balance sheet), risk grade profile, and level of security
Specific Provisions tend to be less volatile in Personal businesses and track more closely to ELP

39. Actual Losses are funded from the General Provision
Economic Loss Provisioning
GP % net lending assets
Actual Losses are funded from the General Provision
ELP Charge
= Loan Amount x
Probability loss x
Loss Given default
Plus
General Provision balance
P&L Charge
Actual SP’s
An adjustment to ensure the GP balance is sufficient to cover:
Volatility around expected loss (using statistically quantified variance)
Remaining term of loan portfolio
Balance sheet growth
ELP charge will vary from year to year based on:
changes in lending volumes
change in risk grade profile
security levels
product and geographic mix

40. Summary of forecasts - Australia
Calendar years
Real GDP growth ¾ ¾
Inflation ½
Unemployment (Dec) ¾
Current account deficit (%GDP)
Housing starts (‘000)
90-day bill yield (% pa, Dec)
10-year bond yield (% pa, Dec)
A$ (US cents, Dec)
Sources: ABS; RBA;

41. * forecast for year ending 30 September
Outlook
System credit growth forecasts*
housing 12.4%
personal 11.1%
business 6.5%
Personal to exceed system credit growth
Corporate credit growth - continuing higher quality focus
Margin compression will continue
Costs flat
Challenges ahead, however we are well placed to continue to perform well, and achieve our targets over the medium term
* forecast for year ending 30 September