2000 Interim Results

Australia and New Zealand Banking Group Limited

1 May 2000

Double-digit earnings growth 14%. EPS 10%

Increase ROE towards 20% 17.8% (17.3%)

53% cost income ratio 51.4% Costs flat

Reduce risk Matches peers ex Grindlays

Achieve an optimal capital structure $500m buyback completed $1bn buyback announced

ANZ Delivers on Financial Commitments

Financial Performance

60

80

100

120

1997 1998 1999 Mar-00

0

2

4

6

8

10

1997 1998 1999 Mar-00

EPS Tier 1 Ratio

5

10

15

20

1997 1998 1999 Mar-00

ROE

0

5

10

15

20

25

30

35

40

1998 1999 Mar-00 ProForma

Lending Mix

50

55

60

65

70

1997 1998 1999 Mar-00

Cost Income Ratio%

WBC

CBAANZNAB

%

Emerging Markets

Mortgages

¢

%

%

17.2 17.8

1999 1h00

0.98 1.02

99 1h00

2.41 2.34

99 1h00

1.57 1.69

99 1h00

2.17 2.07

99 1h00

0.34 0.32

99 1h00

3.05 2.93

99 1h00

99 1h00

0.43 0.40

99 1h00

NII/Interest Earning Assets

Net InterestAssets

Other IncomeAssets

CostAssets

ProvisionsAssets

Business Mix

Cost/Income

Provisions/NLA

ROA

ROE

“Leverage”

Risk

Drivers of Performance

17.6 17.5

99 1h00

X X

51.4/ 52.4*

/ 1.61*

*/ 52.4 excludes abnormal income

54.5

Business Unit Performance

0

50

100

150

200

250

300

350

400

Personal Corporate International Other

1H99 2H99 1H00

A$ Personal 45%

Corporate 38%

International 9%Group 8%

Change in Profit

600

700

750

800

850

$m

650

Second Half1999

First Half2000

Net InterestIncome

34

Lending Fee20

Other Fee Growth

30

Other Income

17

Doubtful Debts

(4)Costs

(9)Tax(34)

PropertyRevaluation

30

Sale ofStrategic

Investments33

Restatement ofDeferred Tax

Balance(64)

764

817

Significant one off items(1)

Improving Asset Quality

Provisioning: ELP v SP

0

20

40

60

80

100

120

140Personal Financial Services

Corporate Financial Services

International$m

Non Accrual Loans

ELP SP

Mar-99 Mar-00 Mar-99 Mar-00 Mar-99 Mar-00

Specific ProvisionsNet Non Accrual Loans

1997 1998 1999 1H00

428

444

900

762

657

886

554

871

$m

Percentage of Grindlays Exposure toCountries Rated below ‘Single A’

Transformation from the Sale of Grindlays

Proforma ROE March 00 Post Grindlays

BuybackSale

-1.9%

-1.4%

15.9%

17.8%17.3%

1.1

0.4

Grindlays Group

%ELP

48

82%

Excludes warranties and indemnities

Comparable ROE and leverage yet much lower risk

Scope for further capital management Proforma includes re-investment of sales

price excluding “free funds” effect of sales provisions

Of GroupExposure <A

Of Total Grindlays Exposure

NetLendingAssets

Transformation from the Sale of Grindlays

EPS - Proforma March 2000 (Annualised)BuybackSale

5-6¢

Other Influences Significantly lower risk Higher quality income streams More consistent business

BuybackSale

0.8

0.3

2-3¢

Tier 1 Ratios

0.5RWA

Profit

Other Influences Lower risk implies move to

lower end of 6.0 - 6.5% range NZ Tracking Stock

0.4% Tier 1 60/40 2000 & 2001

Buyback

0

2

4

6

8

10

12

1997 1998 1999 1H00 Target

Capital Management Philosophy: Capital scarce resource to be

managed effectively and efficiently Maintain capital consistent with

ANZ’s AA status and peer group ratings Tier 1 (6.5 - 7.0%) Inner Tier 1 (6.0% - 6.5%)

aligned to Economic Capital $500 million buyback completed

$1B buyback announced

Buyback to Reduce Capital Surplus

Capital Adequacy

Hybrid Tier 1Inner Tier 1 Net Tier 2

%

Outcomes

Mortgage & cards share upPersonal 45% of group profit FM challenging, new team

Leadership position enhancedROA 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

Accelerate growth in Personal

Build on strength in Corporate

Simplify and focus International

Build leadership in e-Commerce

Good Progress on Business Strategies

Delivering via the Web

B2B

B2C

Employee PCsEmployee PCs

operations.com

Sales & Sales & Service Service

PlatformPlatform

Directors on lineDirectors on line

ERPERPTransformation

IdentrusFX On-line(ANZ On-Line)

FX On-line(ANZ On-Line)

E-ProcurementE-Procurement

eisaeisa

Enterprise Resource Planning

Clear Strategic Direction

Improve sustainability of core franchise

Radically transform the business

Accelerate growth program

Develop strategic international positions

Imperatives

Imperative

Improve sustainability of core franchise

Radically transform the business

Accelerate growth program

Develop strategic international positions

Response

Accelerate growth of up-scale segments in PersonalAddress retail funds management strategic positionSeek value enhancing infill acquisitions in PersonalContinue to build leadership in Corporate

Revolutionise cost base with web-based technologyRapidly enable ANZ customers on anz.comBecome a more customer-centric companyBuild culture and talent to compete in the new economy

Accelerate pace of investment in growth segmentsBuild substantial portfolio of e-products and businessesAccelerate medium-term search for transforming acquisitionsImprove our capacity longer term to participate in industry

consolidation on our terms

Build semi-global niche positions in trade, FX, structured finance, cards and e-Commerce

Rapidly roll-out e-Commerce investments in Asia

Clear Strategic Direction

Financial Goals Going forward

EPS growth that outperforms the average of our peer banks

Increasing Return on Equity: Target 20%

A cost income ratio comfortably below 50%

An Inner Tier 1 ratio approaching 6%

Maintenance of credit rating in AA category

14.3

11 10.3 10.2

4.9

ANZ WBC St George NAB CBA

Share of Credit Card Spend

10

11

12

13

14

Jun-94 May-96 Apr-98

Share of Housing Lending% %

15

20

25

30

Jun-94 May-96 Apr-98 Feb-00Feb-00

Personal Momentum

Internet Banking Users as % of Main Relationships

Source Ord Minnett and Roy Morgan Research