1. Cards and ePayments Brian Hartzer Managing Director Australia and New Zealand Banking Group Limited 24 August 2001

2. Page 2 Building the leading cards business in Australasia Strong financial performance Growing market share Leveraging our core capabilities into new areas Attractive growth opportunities and goals

3. Page 3 Cards and ePayments – An overview Merchant acquiringUnsecured personal lending Australia Customer acquisition Portfolio management Commercial cards Loyalty management Alliances COMMON TECHNOLOGY & OPERATIONS PLATFORM Card issuing NZOffshoreAustralia NZ Credit and debit transaction processing e-Acquiring Terminal sales & rentals Chip development and value added services Branch sales Direct sales

4. Page 4 Mar-00 Sep-00 Mar-01 Operating IncomeProfit After Tax Mar-00 Sep-00 Mar-01 Delivering substantial growth Mar-00 Sep-00 Mar-01 Mar-00 Sep-00 Mar-01 FTECost Income $m %

5. Page 5 Co-branded cards drive customer numbers and scale Relative profitability of Australian issuing & acquiring* Note: Co-brand accounts increased 70% between Sep-98 and Mar-01

6. Page 6 Growing share in both issuing and acquiring Share of Issuing - Outstandings Share of Acquiring* * Excludes $1 billion+ p.a. in Coles Myer volume, commenced this month

7. Page 7 … with a strong risk management focus Credit losses - credit cards Fraud losses – credit cards Application and behavioural scorecards in use Vision Plus and Triad to further enhance capabilities (3/02) Falcon and Eagle systems installed (neural networking tools) 24 hour analysis and detection team Industry average (7 bp) Rolling 12 mth loss rate 90/210 days delinquent Bp of turnover

8. Page 8 Proprietary Card Cross-sell (Recent Case Study) Cross-sell is delivering promising results Index Capabilities Full account and customer EVA Segmentation markers and profiles Propensity-to-buy scores Application/behavioural scores Multiple campaign management Attrition scores by customer Recovery scores Automated, event-based campaigns Automated prospect list delivery (“My Sales”) “Optimal” strategy selection by customer (longer term) In Pilot/ Develop- ment In Pilot/ Develop- ment In Place

9. Page 9 Despite 27% share of card spend, we still have significant potential for profitable growth Share of total Personal Consumer Expenditure Share of Consumer Non-Mortgage Debt* Total Personal Consumer Expenditure = $360bn Total Consumer Non-Mortgage Debt = $50.6bn * includes personal loans ANZ cards 6.5% Other banks cards ~17.5% ANZ cards 7.9%

10. Page 10 The merchant business offers significant growth: MultiPOS terminal will lead market in functionality and price Chip capabilities open up new opportunities for merchants Offshore banks are expressing interest in our capabilities

11. Page 11 Leveraging our distinctive capabilities internationally First Place: Qantas Telstra Visa Card “Best Frequent Traveller Credit or Charge Card (International)” * * source: InsideFlyer Magazine, 2001 Target: Hong Kong platinum market Niche product with unique features to attract profitable segment Proof of concept for marketing and operational capabilities in the region

12. Page 12 Specialisation and “monoline” focus High quality people and dynamic culture Strong team experience in –Loyalty management: QTV, Westfield –Terminal/chip: Eftpos New Zealand –International markets: India, Asia Investment in technology: –Platform of the future: Vision Plus, Falcon/Eagle, Triad –CRM –Chip Execution will be key to our success Staff Satisfaction

13. Page 13 Summary Focus & specialisation has driven strong financial performance We will continue to grow market share We are leveraging our distinctive capabilities into new growth opportunities Cultural change has been significant, and will continue Goals 20%+ pa earnings growth to 2005 Consolidate position as the leading cards business in Australasia Become a meaningful player in Asia