A Clear, Differentiated Strategy Delivering Consistent Returns

Philip Chronican

CEO Australia

6 May 2011

Australia region - 70% of Group profit

2

Pro Forma Net Profit After Tax 1H11 revenue by business1

1H11 NPAT by business1

1. Excludes Group Centre and Other

Aus. Division$1,329m

Retail

Wealth

Commercial

Institutional

Group Centre

1,7331,927 1,962

709

186

434

671

-50

150

350

550

750

950

1,150

1,350

1,550

1,750

1,950

2,150

1H10 2H10 1H11 1H11 by segment

$m

38%

22%

10%

29%Retail

Commercial

Wealth

Institutional

35%

22%

9%

34% Retail

Commercial

Wealth

Institutional

Retail – pre provision profit up 7% with interest income up 8%, strong growth in deposits

1H11 v 2H10

1H11 v 1H10

Profit before credit impairment and income tax 7% 5%

Net profit after tax 2% 3%

1H11 Growth v System HOH1 PBP growth (HOH)

1. Source: APRA Statistics

3

5%

14%

-2% -2%

7%

-5%

0%

5%

10%

15%

1H09 2H09 1H10 2H10 1H11

1.2x

1.6x

Mortgages Household Deposits

Wealth – integration progressing well, strong insurance result

Insurance in-force premiums

• Integration of former INGA business on track including OnePath new brand launch

• New ANZ Wealth business created (including OnePath, Private Bank and Investment and Insurance) and management bench-strength improved

• Wealth NPAT down $41m primarily due to reduced net interest income (repayment of loans)

• Other operating income higher due to insurance book growth and favourable claims experience offsetting higher funding costs and brokerage margin tightening

• Operating expenses flat HOH

• Strong growth across the insurance segments particularly in individual life

• Funds management growth subdued in difficult market conditions coupled with business transformation

• $11m gross impact in General Insurance due to natural disasters (includes ex-gratia payments to policy holders).

Funds Under Management

Up 2%Up 12%

44,608 44,493 45,456

1H10 2H10 1H11

ANZ Trustees Ppty & Infra'ure. Cash and FI

Global Equities Aus. Equities

$m

1,230 1,320 1,381

1H10 2H10 1H11

General Insurance Individual Group

$m

4

-

5

10

15

20

Jan-10 Apr-10 Jul-10 Oct-10 Jan-11

Peer 1 Peer 2 Peer 3 ANZ

2,581

2,836 2,806

1H10 2H10 1H11

524 550 580

-

200

400

600

1H10 2H10 1H11

SBB Business Banking$m

44.5 45.7 46.2

33.2 33.737.2

-

10.0

20.0

30.0

40.0

50.0

1H10 2H10 1H11

NLA Deposit$b

Good outcomes for Business Bank & Small Business, tougher conditions in Regional Commercial

5

Customer growth(„000s; Main Bank Relationship)2,3,4

Net interest income SBB & BB Net loans and advances incl. acceptances & customer deposits

8642

1. Small Business Banking (SBB), Business Banking (BB), Regional Commercial Banking (RCB); 2. Source: DBM Business Financial Services Monitor; 3. Based on rolling 12 months average and includes businesses that have changed MFI during the last 12 months; 4. Includes customers who did not have a MFI 12 months ago (start up businesses)

Investment in frontline FTE staff in 2H10

Mortgage market observations

Credit Quality

• Increase in 90 day delinquencies

South East Queensland – higher than national average unemployment, impacted by stronger AUD (tourism), natural disasters

2008 vintage greater propensity for stress

Credit underwriting tightened considerably at the end of 2008 and ANZ took a

more cautious approach to volume than some peers in 2009

Competition will increase with volume reduction

• ANZ traditional strategy remains in place – seek to be at median on price and focus on quality

Unique opportunities arise from leveraging Super Regional strategy

• 20% of new-to-bank customers are new arrivals

• Relationship prior to leaving home country

• Capability to conduct credit applications and verifications offshore for these customers

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Regional Australia

• Normal seasonality impact on lending more pronounced due to weather conditions

• Stress not homogenous, some areas impacted positively, crop yield improvement

• Commodity prices are trending up and demand is strong. Expect a good season for broad acre

Business Performance

• Deposits up 12% HOH, 20% PCP

• Lending down 3% HOH, flat PCP

• Revenue down 1% HOH, expenses flat

Credit Quality

• Long-term stress coupled with more recent extreme weather events such as flooding. Delinquency trends higher in Western Australia (prolonged drought) while full effect of Queensland (Cyclone Yasi and flooding) is yet to emerge

• Majority of collective provision overlay for Commercial is related to RCB

Regional Commercial Banking – impacted by higher provisioning

7

Significant pay down of debt occurring after high agri cash inflows

Productive Loans v. Deposit FUM

Pay down of debt

6.0

7.0

8.0

9.0

10.0

11.0

12.0

13.0

14.0

11.0

12.0

13.0

14.0

Oct-08 Jul-09 Apr-10 Jan-11

Productive Loans Deposit FUM

Productive Loans

($b)

$0.6b

Deposit FUM

($b)

ANZ Australia has a clear growth agenda

• Growth in target segments

Service led delivery and innovation

Acquire high quality customers and increase SOW

Drive value from brand equity and customer advocacy

• Integrate and grow wealth

• Grow commercial

Drive value1

• Bank of choice for pan-regional migrants

• Maximise cross-regional commercial opportunitiesLeverage Super Regional strategy

2

• Productivity agenda

• Improve staff engagement

• IT investment focused on enhancing customer experience

Invest in sustainability

3

Priorities

8

Super Regional capabilities providing differentiated sources of growth across the bank

• More than $200b in trade flows between Aust/NZ and Asia

• Experts in cash-flow

• Specialist industry expertise

• Enhanced online payments

• Expertise in Renminbi markets

• Stakeholder relationships across the region

• From Asia Pacific:

20% of new-to-bank customers

Biggest Australian bank in Asia Pacific

1,000 customer referrals per month

Offshore account openings

• To Australia:

Specialist migrant branches

Language capabilities

Multi-lingual ATMS

Multi-lingual marketing

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Retail Banking across Asia Pacific:

Commercial Banking across Asia Pacific:

Affluent segment represents a major growth opportunity for ANZ

• Affluent market in Australia of c.900,000

• Contributes 20% of Retail banking profit, 50% of Wealth profit & 25% of market NPAT

• ANZ FUM growing at 20% CAGR since 2002

• ANZ underweight in market share and SOW relative to peers

ANZ aspires to be the financial provider of choice for affluent customers for their banking and wealth needs

• Affluent Program launched 2 May

Dedicated customer manager

Priority access to leading specialists and products

Premium service

• “Whole of bank” approach to customer

• FY14 Target

Market share at 12%

SOW at 37%

1010

Personalised service and Super Regional presence provides clear differentiator in small business

1111

ANZ and small business

• 358,000 customers

• 13% market share (FUM)

• 53% share of wallet

• Shared lead on customer satisfaction

A targeted proposition for small business

• 250 dedicated small business specialists

• Needs-based assessments with A-Z Reviews

• Small Business Hub online

• Small Business Insights online

• Trade opportunities with Asia Pacific region

FY14 Target

• 15-16% market share (FUM)

Executing a coherent plan

• Good result for 1H 2011 despite challenging environment

On track to deliver full year result

Long-term objective – to be a Super Regional bank with a market leadership position in Australia

Executing on a coherent plan

Grow in key customer segments

Bring whole-of-bank to customers: easy to do business with

Clear targets and strategies for Retail, Wealth and Commercial businesses

Capture new sources of growth through Super Regional capabilities

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