www.anz.com

Contact 06
Shareholder Update

Shareholders

Chairman's report

Dear Shareholders
Enclosed with this edition of Shareholder Contact is the advice of your 2006 Interim Dividend. Your
Directors were pleased to increase the interim dividend by 10% to 56 cents per share fully franked.
The increase in the dividend reflects a good underlying business performance in the half driven bycontinuing asset growth, careful management of costs, and a prudent approach to risk and capital.
For the half year ended 31 March 2006, ANZ recorded a record profit after tax of $1,811 million,
up 16%. The headline result included a number of one-off gains including the National Housing
Bank (NHB) insurance settlement and, adjusting for these, cash earnings per share was 94.0 cents,
up 10%.
Again, the performance of Our Personal Division in Australia was a highlight with earnings up 16%.
I have reported to you previously that we have been investing in our retail franchise. The benefits of thishard work are now showing through in good levels of customer satisfaction, high staff engagement andthe Division’s strong financial performance.
Other pleasing features of the result were our Institutional Division where earnings were up 8% over thesame period last year and our New Zealand Businesses, which are showing promising momentum.
We also advanced our strategic agenda in Asia, with the planned acquisition of a 20% stake in
Tianjin City Commercial Bank in China. Discussions on other expansion options in China and Asia
Pacific are progressing.

Our cost-to-income ratio was 45.8% and is again trending down reinforcing our place among the mostcost-efficient banks in the world.
Our consistent financial performance over the last 8 years has seen ANZ move to be Australia’s fifthlargest listed company with a market capitalisation of $48.5 billion as at 31 March 2006.
Importantly, we are increasingly building reputational capital. At the heart of ANZ’s transformation is
a commitment to take the hard steps to show customers, the community, shareholders and staff that
ANZ is a bank of which they can be proud.
Steps to build reputational capital included issuing ANZ’s first Corporate Responsibility Report andcommitting $3 million over the next three years on community partnerships to help those in most needwith financial literacy and savings.
We also continued to work on creating a more vibrant, engaging and flexible culture. Our focus on
culture is not simply about making ANZ a good place to work. Attracting and retaining the most talented
staff and building a successful culture is critical to our future. In 2006, our level of staff engagement was
the highest of any major Australian company.
Looking ahead, with a strong first half and good momentum going into the second half, we are confidentof a good result for the year as a whole.

Charles Goode

Shareholders 02

CEO’s review

When we announced ANZ’s Interim Results on 27 April, I told investors that this was a good result basedon a strong underlying business performance.
What was particularly pleasing was that revenue growth at 8% was the highest it has been in recent
years and solidly within our target range of 7-9%. We also managed costs carefully in the period withthe cost to income ratio down 1% and expenses contained within our target range.
At the same time, credit quality remained at its best level in more than a decade and at a cyclical low.
While we remain vigilant to potential risks, we are yet to see any material credit issues emerging.
Our three largest divisions performed well during the half.
Personal continued to deliver very strong growth, with earnings up 16%. Personal also saw continued
improvements in staff engagement and in customer satisfaction, where we now have a distinct leadover our peer banks.
Institutional grew 8% over the same period last year, adjusting for discontinued businesses exited toreduce risk. Institutional has invested in its businesses throughout the year, through the retention andrecruitment of high quality staff, and has restructured its business model to recognise the changing
requirements of our customer base.
New Zealand Businesses were up 14% on the same period last year in NZ dollar terms. The business isshowing promising momentum, with robust credit growth and improved credit quality. Interest margin
decline moderated and we are starting to see cost synergies flow from integration of The National Bankof New Zealand.

As well as focussing on our short-term financial performance, we have also set out to make ANZ a very
different bank over recent years. Our agenda has been to ensure we perform today but that we are also
positioned to perform and grow sustainably, and to deliver value to shareholders over the longer term.
Against the trend we have been investing in our business to create a real difference that our competitors
will find hard to replicate.
We also began a journey in 2000 to create a distinctive culture and this has helped us to achieve
high levels of staff engagement. More recently, we have added around 4,000 people while others were
cutting staff. We opened new branches, refurbished others and restaffed our branches while others
were closing. We invested in Asia at a time the market considered it unfashionable.
This has been the right agenda but it has been tougher than we anticipated. Only now is the difference
starting to be tangible, and beginning to change the face of banking in Australia and New Zealand.
I expect that 2006 will be a good year for ANZ.
We are now seeing returns from the investments we made in recent years and this is likely to result inrevenue growth above the mid-point of our medium term 7-9% target range in 2006. Expense growthis under control and likely to be towards the bottom end of our 5-7% target range for the year. While thecredit environment remains benign, we envisage a modest increase in credit costs in the second half of
this year from a very low base.
Our agenda is to make ANZ a very different bank. This is now showing through in our relationships withour customers, our people, the community and the value we are delivering for shareholders over the
short and longer term.

John McFarlane

Shareholders 04

Results summary
ANZ interim cash earnings per share up 10%
Profit after tax• Statutory profit $1,811 million - up 16%• Cash* profit $1,731 million - up 10%
Shareholder Return• EPS 98.4 cents – up 18%• Cash* EPS 94.0 cents – up 10%• Interim dividend 56 cents – up 10%
Business comment• Strong performance in Personal Banking, record
lead in customer satisfaction• Good momentum in New Zealand andInstitutional• Continued frontline investment with 1,231
additional staff• Provision for bad and doubtful debts# at
cyclical low• Growth and Transformation program on track

Key Dates
Annual General Meeting and Live Webcast,Sydney Convention Centre at 10:00 am (AEST)
Friday 15 December 2006.
Announcement of Annual Results
Year ended 30 September 2006
Thursday, 26 October 2006
Ordinary shares
Final Dividend (2006) Payable
Friday, 15 December 2006
-E
 x Dividend Date 9 November 2006*- Record Date 15 November 2006**Proposed dates

StEPS payment dates:- 15 September 2006
- 15 December 2006
- 15 March 2007
- 15 June 2007

- Revenue* growth 8% (target range 7% - 9%)- Cost-Income* ratio 45.8%(1.0% improvement)* adjusted for AIFRS 2005 adjustments and non-core items(including significant items, ANZ National Bank incremental
integration costs and AIFRS mark to market of certain hedge
gains/losses).
# Now called provision for credit impairment in our
financial statements.

Contact Details
Investor Relations
Level 22
100 Queen Street
Melbourne Vic 3000 Australia
Telephone: +61 3 9273 6466Facsimile: +61 3 9273 4899
Email: investor.relations@anz.com
Share Registry
Australia
GPO Box 2975
Melbourne Vic 3001 Australia
Telephone: 1800 11 33 99+61 3 9415 4010
Facsimile: +61 3 9473 2500
Email:
anzshareregistry@computershare.com.au
New Zealand
Private Bag 92119
Auckland 1020 New Zealand
Telephone: 0800 174 007
Facsimile: +64 9 488 8787
United Kingdom
PO Box 82
The Pavilions
Bridgewater Road Bristol BS99 7NH
Telephone: +44 870 702 0000
Facsimile: +44 870 703 6101

Shareholder Information

Annual General Meeting – Sydney
Date: Friday, 15 December 2006
Venue: 	Sydney Convention Centre Darling Harbour
Time: 	10:00am AESTANZ Staff will be available outside the meeting room should you wish to
discuss banking services, Investment products or Shareholder matters.

Sydney Convention Centre

Dividend Alternatives

Is accessible by train [nearest public train stationis Town Hall Station] and light rail [locatedoutside the Convention Centre entrance – lightrail operates from Central or Lilyfield stations],
bus and ferry services [both public and private]– Sydney Aquarium is a 5 minute walk from theConvention Centre. Car parking is also available
underneath the Exhibition Centre on Darling Drive.

There are a number of ways in which you canreceive your ANZ dividends, which are normally
paid in July and December.

For more comprehensive information pleaselog onto the Sydney Convention Centre Website:www.scec.com.au.

E-Communications
As an ANZ shareholder, you can choose to receive
your shareholder communications electronicallyand help save the Australian environment.
With every registration through eTree, a donationof $2 will be made to Landcare Australia to
go toward specified reforestation projects thatwill help restore degraded plant, animal andwater resources.

Your dividend can be directly credited to your bankaccount, reinvested into further ANZ shares under
the Dividend Reinvestment Plan or forgone if you
wish to participate in the Bonus Option Plan.
Shareholders may at any time change the way
they receive their dividend by completing andreturning a Plan Election Form available fromthe ANZ Share Registry.
For more information about how to receive yourdividends, please contact the ANZ Share Registry(details on the left hand column).

To register, please visit www.etree.com.au
www.anz.com/shareholder/shareholder services/eTreeProgram/Shareholders 06

Now opening our Call Centre 24/7
We were the first to open our Call Centre 24 hours
a day 7 days a week, back in April 2005.
ANZ has now established itself as the mostconvenient bank in Australia.
Our customers bank with us for our convenient,
friendly service and simple product solutions.
Now with the highest customer satisfaction ofany major top 5 bank
Our customers are the most satisfied of any
major bank customers, and the least likely toswitch banks.
Customer Satisfaction#with Main Financial Institution
80

Now the first major bank with a Visa
Debit card75
70

Everyday Visa Debit is a transaction account withthe convenience of access to Visa’s worldwide
network. It means you can shop online, overseas
or over the phone using your savings instead of acredit card.

6560

Apr 06

Apr 05

Apr 04

Apr 03

Apr 02

Apr 01

Apr 00

Apr 9950

Apr 9855

Apr 97

Customers

More convenient banking

ANZ
Peer Banks

Closest major peer

*Source: Roy Morgan Research – Main Financial Institution Satisfaction#% Satisfied (very or fairly satisfied), 6 monthly moving average

Now setting the standards for service excellence
ANZ has been recognised by the Customer Service
Institute of Australia and Money Magazine’s
readers for our service excellence.

Now opening more branches across Australia

Now opening more ATMs at convenient locations

We have opened 11 new branches over the past
6 months, and extended our opening hours.

We have installed 160 new ATMs over the
past 6 months in convenient locations suchas Woolworths and Caltex, and plan to open
hundreds more.

ANZ still Home Loan Lender of the YearANZ has won Home Loan Lender of the Year forthe eighth time* at the 2006 Money Consumer
Finance Awards.

*Money magazine’s Home Loan Lender of the Year 2005 and 2006.
Personal Investor magazine’s Home Lender of the Year 1999-2002, 2004 and 2005.

Customers 08

PeopleLeading and inspiring our people
Employee engagement and culture
At ANZ, we track the engagement levels of ourpeople and the progress on transforming ourculture via an annual Engagement & Culture
Survey, conducted in partnership with Hewitt &Associates and by using Cultural Transformation
Tools. Organisations with high engagementlevels typically achieve higher levels of financial
performance and customer satisfaction thanthose with fewer engaged people.
In 2006, our employee engagement remained
steady at 60%, maintaining our position in the
Hewitt “high-performance zone” (see graph).
Our engagement score remains the highest of all
major corporations in Australia and New Zealandand is ahead of the banking and financial services
sector benchmark. Within these results, the levelof engagement in our Personal Division increased
from 64% to 66%.

This includes 2,025 participants in the six months
to March 2006, with more than 150 additional
workshops scheduled throughout the remainderof the year.
Gender diversity
In 2005, we achieved our goal to have 20%
female representation in executive positions
and completed our first organisation-wide
Diversity Survey. New internal targets for female
representation at all levels of management for the
next three years were also introduced including atarget of 25% at senior executive level by 2008.
Health, Safety & Wellbeing
Our Lost Time Injury Frequency Rate (LTIFR) has
declined from 4.2 in October 2005 to 4.0 and
employee turnover remains steady at 11.6%.
Staff Engagement

In 2006, our progress towards transforming ourculture continued in line with our aspirations:“customer” and “community” were consideredby staff to be in the top five current culture values
present in the organisation.
Our cultural transformation program, ‘Breakout’,
has been in place for six years now as part of ourlong-term commitment to creating a values-driven
culture. This year, a major focus for the programis involving our people who serve our customers.
Almost 3,000 employees from our Personal
Division have completed the “Breakout tothe Frontline” program since it commenced
in June 2005.

Four generations: Jo (left) with her daughter Jackie, granddaughter Sam and great grandson Evan.

Jo Portlock works four days a week
and was one of the first people to takeadvantage of ANZ’s policy guaranteeing
part-time roles for people over 55.
“In mid 2005, I was approached to come into
my current role as Business Continuity PlanningManager. I asked whether it could be done in fourdays, not five, and after some discussions, mymanager and I agreed it could work.

I’m also a new great-grandmother so working
part-time also gives me more opportunity tospend time with my family.
The over 55's policy allows me to take a more
gradual approach to retirement. Next year it would
be nice to think I could go down to three days aweek and then consider retiring in 2008.”

It is magnificent! I’ve been so busy raising six
kids, working full time in reasonably senior roles
and finishing my house renovations that I’ve
never had the opportunity to stop to think about
what hobbies I might take up when I do retire!
Now I’ve got time to think about those thingsand start planning for them.

People 10

Community

Earning community trust
ANZ is committed to enhancing the well-being andprosperity of the communities where our people
live and work, and where our business operates.

Additionally, we support our people to get
involved in their local communities through arange of donation and volunteering programs.

Our research has identified Financial Literacy
and Inclusion as significant issues affecting
Australians. As such, we are using our resourcesand expertise to build the financial knowledge,
skills and confidence of all Australians,
particularly amongst the most vulnerable.

Recently ANZ was recognised by the Corporate
Responsibility Index for our leadership in:• Community management practice• Performance and impact of community programs

Building Financial Literacy and Inclusion
New small loans program for people on
low-incomes
Accessing low-cost, fair and safe financial
products and services can be difficult anddistressing for some Australians. Our researchshows that around six per cent of adults haveminimal access to financial services. This includes
people who are on low incomes or unemployed,
people with disabilities and those from
Indigenous communities. These people may feel
too intimidated to enter a bank branch, let alone
apply for a loan to cover unexpected costs.
In some cases, they borrow from ‘loan sharks’or payday lenders at interest rates of up to
1000%, simply because they believe they
have no other options.
Our products and services help many Australians
to build their assets and create a secure future.
But the policies and practices of our industry
have also - in part - contributed to financial
exclusion. We know there are some basic things
we can and should do to make a difference forpeople struggling to understand their finances
or facing financial hardship.

To help address some of these problems, ANZ and
the Brotherhood of St Laurence have teamed up
to launch our “Progress Loans” pilot, a small loans
program providing low-income earners with accessto mainstream credit. Progress Loans offers eligible
customers loans of between $500 to $3,000,
at an interest rate of 12.7%, to pay for essential
household items like fridges and washingmachines, education and medical expenses.
Progress Loans is the culmination of more than
18 months of consultation and development work.
It brings together ANZ’s resources and expertisein financial services with the Brotherhood’s
knowledge and experience in providing personalloans to meet the needs of people on low incomes.
Progress Loans recognises the role we can playin enhancing the lives of Australians, particularly
some of the most vulnerable groups in ourcommunity by improving access to mainstream
financial services.

In 2005 more than 7,230 people participated in
MoneyMinded. In 2006 we are aiming for 15,000
people to undertake the program.
Our Saver Plus matched savings and financial
literacy program is continuing to assist low income
families reach a savings goal and establish a longterm savings habit. We are expanding the program
to at least 18 communities in partnership with avariety of community organisations over the next
two years.
Independent research shows that Saver Plus
helps participants increase their sense of control
over their finances and improve their self-esteem
and family networks. The program is also proving
successful in helping families establish long-termsavings habits, with 71 per cent of participantsfrom 2004 continuing to save the same amountor more, 12 months after completing the program.
Saver Plus was developed by the Brotherhoodof St Laurence and ANZ and is being delivered
with The Smith Family, Berry Street Victoria,
The Benevolent Society and the Victorian
State Government.

MoneyMinded is an adult financial education
program developed to help people, particularly
the more vulnerable members of the community,
make informed decisions about the use andmanagement of their money. Financial counsellors,
community educators and ANZ’s community
partners deliver the program across Australia.
It provides unbiased consumer education andis not ANZ branded.

In late 2005 we also launched MoneyMinded
Online – an interactive financial education
website for our staff, customers and thecommunity (www.moneyminded.com.au).
The National Financial Literacy Foundation
has endorsed both MoneyMinded andMoneyMinded Online.

MoneyBusiness is a program designed to build
the money management skills and confidenceof Indigenous people and their families, while
helping to establish a stronger savings culture
in Indigenous communities.
ANZ is working in partnership with Indigenous
communities and the Australian Government’s
Department of Family and Community Services
and Indigenous Affairs (FaCSIA) to deliver the
MoneyBusiness initiative.
The program is currently running in the Northern
Territory communities of Katherine, Galiwin’ku(Elcho Island), Nguiu (Bathurst Island) and
Tennant Creek, and in Kununurra and Geraldton
Creek in Western Australia.

Community 12

Community

Opportunities for ANZ people to engage with their communities
We also provide our people with opportunities to lead and support local community programs and thecauses that are important to them.

Community Giving for Staff
ANZ staff can choose to donate to charity in a
number of ways (Payroll Giving or Team Giving
options). ANZ has committed to match
contributions up to a total of $1 million or$1000 per staff member per year.
Community Giving for Customers
ANZ’s Customer Donations Program wasdeveloped to enhance our support for ourcustomers and their choices in community
involvement. The program offers customers
an easy and convenient way to donate to theircharity of choice. This initiative is accessible via
ANZ Internet Banking, with registered customers
able to donate to a charity of their choice using
the Pay Anyone function.
Community Giving for Shareholders

ANZ provides one day paid volunteer leave toevery employee each year so that they can makea difference by participating, as individuals or
teams, in causes that are important to them.
More than 1,955 staff have volunteered over
12,400 hours in the past six months, working withmany different local charities, including World
Vision, RSPCA and The Smith Family. In 2006 we
aim to contribute 40,000 hours in volunteer time
to our local communities.
ANZ Community Fund
The ANZ Community Fund enables our people in
ANZ branches throughout Australia to identify,
fund and support projects or initiatives that areimportant to their local communities. In 2006 wehope to support projects to the value of $350,000
through this scheme.

ANZ has also announced a new addition to its
Community Giving program – the Dividend Charity
Donation Program. ANZ shareholders who receive
AUS$ dividend payments can elect to donate partof those dividends to selected charity partners.
ANZ will match up to $250,000 of these donationsin the first 12 months.

Environment

Reducing our environmental footprint
A range of initiatives have commenced to reduce
our overall environmental footprint including
specific work at key commercial sites andbranches to improve energy and operational
efficiencies.
For example The Great Paper Chase, an ANZ-wide
paper-saving initiative, was launched in 2005
and continues in 2006. The initiative encourages
individual business units to compete against
each other to save the most paper.
We are also implementing our Environmental
Management System, which will improve
efficiency in the way we gather and report
our environmental data.

Environment and social issues screening
ANZ has been implementing a process to enhance
the assessment of environmental and social risks
and opportunities in its Corporate and Institutional
Banking divisions.
A new screening model has been developed toassess the potential environmental and social
impacts of an individual transaction, a specificclient or an entire portfolio/industry. This model
enables us to more consistently identify key risk
exposures, such as land contamination, throughthe credit review process.

ANZ applies sustainable policy
to suppliers
ANZ has also introduced a new sustainableprocurement policy to encourage our suppliers
to improve the social and environmental
performance of their businesses.
Under the policy, new guidelines are being
developed for suppliers on the use of energy,
information technology, waste and transport.
As a starting point, all new suppliers are required
to provide information on their social andenvironmental performance by completing a‘sustainable procurement self-assessment form’.
The policy is being integrated into new andexisting supplier contracts in Australia during
2006. We will then progressively expand the policy
to New Zealand and other international operations
from 2007.
For more information on ANZ’s environmental
initiatives visit www.anz.com/environment

At 31 March 2006, 25% of Institutional division’s
new transactions and annual reviews have been
screened, along with 100% of the Corporate
division’s lending portfolio. As a result, we
specify conditions for financing approval toensure our clients are able to reduce or mitigate
the identified risks.

Environment 14