2000 Interim Results
Australia and New Zealand Banking Group Limited
1 May 2000

ANZ Delivers on Financial Commitments
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

Financial Performance
EPS¢

Tier 1 Ratio

%
10120

100

2080

15%

8ROE

64201060
1997

1998

1999

1997

Mar-00

1998

1999

Mar-00540Lending Mix%

1997

1998

1999

Mar-00%

Cost Income Ratio

7035

Mortgages

30

65

2560

2015

Emerging Markets

10WBC55

NAB

55001998

1999

Mar-00

ProForma

1997

1998

1999

CBAANZ
Mar-00Drivers of Performance
ROA 
0.98

1.02

99

ROE 
17.2

2.41

Net Interest
X
Assets

1h00

Other Income
Assets

17.8

1.57

99

“Leverage”
17.6

3.05

2.93

99

1h00

1.69 / 1.61*

1h00
99

1999

2.34

NII/Interest Earning
X
Assets17.5

2.17

Cost/Income 

1h00

Cost
Assets

2.07

54.5

51.4/ 52.4*

99

1h00

1h00
99

1h00

Provisions
Assets 99

Risk*/ 52.4 excludes abnormal incomeProvisions/NLA 

0.34

0.32

0.43

0.40

991h00991h001h00

Business Mix

Business Unit PerformanceGroup 8%International 9%A$

Personal 45%

400
350

Corporate 38%300
250200150100500
PersonalCorporate
1H99

International
2H99

1H00

Other

Change in Profit
Sale of
Strategic
Investments
33
Property

Other
Other Fee Income
17
Growth$m

850

Lending Fee
20
Net Interest
Income
34

800
764

750

30

Doubtful
Debts(4)

Revaluation
30
Costs
(9)

817
Tax
(34)

Restatement ofDeferred Tax
Balance(64)

Significant one off items
(1)

700
650
600

Second Half
1999

First Half
2000

Improving Asset Quality
Provisioning: ELP v SP

Non Accrual Loans$m$m
140120762
886

Personal
Financial
Services

Corporate
FinancialServices

International

100871806044440900657

4285542001997

1998

Net Non Accrual Loans

1999

1H00
Specific Provisions

Mar-99Mar-00 Mar-99
ELP

Mar-00 Mar-99
SPMar-00

Transformation from the Sale of Grindlays
Net
Lending
AssetsELP%

Percentage of Grindlays Exposure toCountries Rated below ‘Single A’

1.1%

820.4

Grindlays

48GroupOf Group
Exposure <A

Proforma ROE March 00 Post Grindlays
Sale17.8%

-1.9%
-1.4%

15.9%

Excludes warranties and indemnities

Buyback
17.3%

Of Total Grindlays
ExposureComparable ROE and leverage yet much
lower risk
Scope for further capital management
Proforma includes re-investment of sales
price excluding “free funds” effect ofsales provisions

Transformation from the Sale of Grindlays
Tier 1 Ratios
Sale

Buyback

Other Influences

RWA

0.50.8

Profit0.3

EPS - Proforma March 2000 (Annualised)
Sale

Buyback

Other Influences
5-6¢

2-3¢ Buyback

Lower risk implies move tolower end of 6.0 - 6.5% range
NZ Tracking Stock
É 0.4% Tier 1
É 60/40 2000 & 2001

Significantly lower risk
Higher quality income streams
More consistent businessBuyback to Reduce Capital Surplus
12%

Capital Adequacy
Capital Management Philosophy:

108

642


01997

1998

Inner Tier 11999

1H00 Target

Hybrid Tier 1

Net Tier 2

Capital scarce resource to be
managed effectively and efficiently
Maintain capital consistent with
ANZ’s AA status and peer groupratings
É Tier 1 (6.5 - 7.0%)
É Inner Tier 1 (6.0% - 6.5%)
aligned to Economic Capital$500 million buyback completed$1B buyback announcedGood Progress on Business Strategies
Business Strategy
Accelerate growth in Personal



Build on strength in CorporateSimplify and focus International

Build leadership in e-Commerce

Outcomes
Mortgage & cards share up
Personal 45% of groupprofit FM challenging, new team
Leadership position enhanced
ROA 0.9% (0.7%)
Non accruals 0.4% (0.9%)
Grindlays sale
Latin America Offices closed
Asia-Pacific e-Commerce focus
Approaching leadership B2CStrong portfolio B2B
Web enabled internal processes
Numerous venture investments

Delivering via the Web
B2C

B2B
FX On-line E-Procurement(ANZ On-Line)

Identrus

eisa
Transformation
operations.com
Employee PCs

Directors on line

ERP

Sales & Service Enterprise Resource
PlanningPlatformClear Strategic Direction
Imperatives
 Improve sustainability of core franchise Radically transform the business Accelerate growth program Develop strategic international positions

Clear Strategic Direction
ImperativeResponse

Improve sustainability of core franchise

Accelerate growth of up-scale segments in Personal
Address retail funds management strategic position
Seek value enhancing infill acquisitions in PersonalContinue to build leadership in Corporate

Radically transform the business

Revolutionise cost base with web-based technology
Rapidly enable ANZ customers on anz.com
Become a more customer-centric company
Build culture and talent to compete in the new economy

Accelerate growth program

Accelerate pace of investment in growth segments
Build substantial portfolio of e-products and businesses
Accelerate medium-term search for transforming acquisitions
Improve our capacity longer term to participate in industry
consolidation on our terms

Develop strategic international positions

Build semi-global niche positions in trade, FX, structured
finance, cards and e-Commerce
Rapidly roll-out e-Commerce investments in Asia

Financial Goals Going forward
 EPS growth that outperforms the average of our peerbanks
 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

Personal Momentum
14%

Share of Housing Lending
30%

Share of Credit Card Spend1325

12112010
Jun-9415
Jun-94May-96

Apr-98

Feb-00May-96

Apr-98Internet Banking Users as % of Main Relationships
14.3

1110.3

10.2
4.9

ANZWBCSt George

NAB

CBA

Source Ord Minnett and Roy Morgan Research

Feb-00