2000 Annual Results Presentation to Fixed Interest Investors Australia and New Zealand Banking Group Limited 1 November 2000 John McFarlane Chief Executive Officer

Page Annual Result Strong result – better than expectations –$1,703m up 15% –$885m second half up 8.2% on first half We delivered on all our commitments –Financial performance –Rebalancing the portfolio –Reducing risk Restructuring program accelerates strategy –Sensible application of surplus capital –EPS accretive –Superior to buyback alternative

Page 3 Our three year commitments to shareholders Achieve superior financial performance –Deliver double-digit earnings growth –Improve return on equity –Bring down our cost income ratio to 53% Re-balance our portfolio –Increase proportion of Personal business –Enhance leadership position of Corporate –Simplify and focus our International business –Build momentum in eCommerce Reduce risk

Page 4 Financial Parameters Assets $172 billion Shareholders equity* $9.8 billion Return on average ordinary shareholders’ equity (excl. abnormals) 18.3% Credit ratings:AA - (stable) S&P’s Aa3 (stable) Moody’s *Includes $1.4b preference shares

Page 5 Financial Highlights NPAT before abnormals $1,703 million versus $1,480 million Income up 6%, cost flat Cost income ratio 51.7% (54.5%) ROA 1.03% (1.0%) $361m restructuring charge to accelerate new strategy

Page 6 We have delivered superior financial performance $m NPAT CAGR 13.3% % ROE Cost Income Ratio Total Shareholder Return

Page 7 Good progress across the board Net interest income 146 Lending fee 48 Other fee 111 Other income 47 Debt provisioning 8 Costs (14) Tax & outside interests (123) Profit before abnormals 1703 Abnormals 44 Net profit after abnormals 1747

Page 8 Cost-income ratio continues to decline Target - comfortably in the 40’s * * * estimate of market expectations for

Page 9 We didn’t get everything right – firm action taken Personal loan portfolio International provisioning from historical book Panin writedown to market Took action to put historical Grindlays issues behind us

Page 10 We have re-balanced our portfolio NPAT Loans & Advances PFS CFS International 27% 50% 23% 49% 41% 10% 56% 39% 5%5% 43% 49% 8% Includes Grindlays Excludes Group

Page 11 Portfolio breakdown - indicative International Personal Corporate Other Cards Wealth Mgmt Mortgages Funds Mgmt General Banking Small Business Corporate Foreign Exchange Asset Finance Capital Markets Institutional ANZIB Financial Services Transaction Services Asia Pacific % * Excluding Grindlays ($127m) $1,703m* 40m* $772m$647m International Customer Businesses % Personal Corporate

Page 12 We continue to reduce risk ELP Factors bp’s Market Risk (Av. VaR) A$m Beta reducing towards 1.0, in line with peer average

Page 13 Overall book continues to improve AAA to BBB+ BBB to BBB- BB + to BB BB- > B Australian Lending Asset Profile $b Australian Loans & Advances Investment grade 66% of book Diversified portfolio Minimal exposure to media/telco’s Mortgages now represent 46% of book, up from 40% in March 1999

Page 14 Non-accrual loans stable despite asset growth Gross Non-Accrual Loans (LHS) Net Non-Accrual Loans (LHS) $m Non-Accrual Loans/ Loans & advances (RHS) Historic Aust.Inter.NZ Geographic $m

Page 15 Provisioning levels strengthen (383) (51) (90) APRA Guidelines ELP charge Net SP transfer FX impact Sale of Grindlays ELP - Economic Loss Provision SP - Specific Provision General Provision ELP charge* * ex Grindlays for 2000 Times $m Surplus 406

Page 16 Accelerating our transformation program Standardisation and rationalisation of IT and processing platforms Rationalisation and upgrading of EFTPOS network Transformation of Branch Network Improving efficiency in Asia/Pacific by rationalising IT platforms and centralising back office processing Establishing new business platform for Esanda 35 Initiatives across our portfolio of businesses including: Expected cost reduction $300m

Page 17 Building for the future - recap on our strategy Proposition Specialists will win over conglomerates Corporations need to embrace new technologies Value depends on performance and growth Strategy Reconfigure ANZ as a portfolio of 21 specialist businesses An e-Bank with a human face Drive results whilst investing in growth businesses Perform and Grow e-Transform Specialise Implications Specialist approach to customer and product businesses Transform the way we do business by using IP technology Meet expectations, fund growth by cost reduction

Page 18 ANZ in the medium term Material reallocation of resources Substantial e-transformation reducing costs and focused service Performance optimised –EPS, ROE, investment –capital management Transformational cultural change Substantial portfolio shifts Narrower, more focused portfolio with leading positions Increased investment in high growth business Modern performance culture Higher stock rating ANZ in yearsANZ in years

Page 19 Capital management will continue % $b Progress $1014m of buyback Capping of DRP/BOP to reduce dilution Remaining $500m buyback in progress Restructure more EPS accretive than buyback 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 ( %) –Inner Tier 1 (6.0%)

Page 20 Goals going forward EPS growth above peer average (target 10+%) ROE over 20% Cost-income ratio comfortably in the 40’s Inner Tier 1: 6% Maintain AA category credit rating

Domestic Corporate Bond Investor Presentation 1 November 2000 Rick Sawers Group Treasurer

Page 22 Wholesale Term Funding - Anticipated 1999/2000 Term Funding Objectives –Forecast term wholesale funding requirement A$5/$6 billion –To be sourced 30% Domestic markets 60% Euro markets 10% US market –Extend ANZ domestic yield curve –Build liquid lines + A$500 million. Constraints envisaged: –S128F –Issue Size –Inconsistent pricing between AA rated banks

Page 23 Wholesale Term Funding - In Retrospect Scorecard 1999/2000 Financial Year Issued A$5.9 billion term wholesale debt Sourced 11% Domestic market (v 30%) 80% Euro markets (v 60%) 9% US markets (v 10%) Domestic Market: Increased 10/2002 series by an $300 million Added new series - $500 million 9/2004 Extended yield curve Outstandings now A$1.75 billion MTBs trading within 1bp S128F still unresolved

Page 24 Term Debt Issued 1999/2000 AUD 13% CHF 2% E 20% HKD 10% USD 54% JPY 1%

Page 25 Wholesale Term Funding - Strategy for 2000/2001 Pursue diversification - by investors and markets Maintain prudent approach to liability maturity management –spread of maturities from 1 to 5 years with an objective to achieve a weighted average term of 3 years –maintain yield curve out to a maximum of 5 years in both domestic and euro markets Funding requirement $6 billion subject to amount of securitisation undertaken Sourced 20% domestically 80% offshore

Page 26 Wholesale Term Funding Issues to Resolve: –S128F –Transparency of issuance no standardised practice established Consider US style “Pot System”

Page 27 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)