CONTACT

09

Shareholder UpdateContents

1 CHAIRMAN’S REPORT
2 CHIEF EXECUTIVE OFFICER’S REPORT
3 FINANCIAL AND OTHER INFORMATION
4 CORPORATE RESPONSIBILITY
5 OUR NEW BRAND

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Working with Our Customers and the Community

CASE STUDYFINANCIAL LITERACY AND INCLUSIONMONEYMINDEDANZ in Action – Our Responseto the Victorian Bushfires

ANZ is using its resources and expertise to build thefinancial knowledge, skills and confidence of ourcommunities, particularly among the most vulnerable.

• MoneyMinded is ANZ’s adult Financial Literacy program.

When the Victorian bushfires struck in February
2009 we knew our customers needed us to act
quickly and compassionately.

SAVER PLUS
• More than 4600 participants have enrolled in Saver Plus

since the program began in 2004.

ANZ was the first bank to set up an onsite facility in the
bushfire affected area, an initiative generated by local ANZ
staff. Our Whittlesea Bushfire Relief Centre was mobilisedon Wednesday 11 February and was fully operational
throughout the weekend, with normal branch operations
resuming soon after.

• Participants have saved over A$4m in that time.

Whittlesea staff on the ground provided internet facilities
and supported our customers through advice and assistanceregarding applications for ANZ grants and any issues aroundother products including loans. The team also helped customers
with identification needed for Centrelink services and via
immediate cashing of DHS cheques.

• More than 70% of participants continue to save the same

• ANZ issued around 160 grants to impacted home loan

and agribusiness customers valued at around A$1.2 million.
• Our staff donated A$190,000 to the Red Cross via ANZ’s

Payroll Giving program with their donations matched dollar
for dollar by the company.
• A$11.5 million was collected over the counter from

customers and the general public in Australia, while ANZ(New Zealand) raised a further A$48,000 and a further
A$630,000 was donated to the Red Cross via our website.

It is a comprehensive suite of educational resources forpeople most in need of financial education.
• MoneyMinded is delivered through eight community

partnerships across Australia and New Zealand.
• We are on track to reach our target of 30,000 people

participating in MoneyMinded across Australia and
New Zealand.

• Items saved for include: computers, school camps,

textbooks, uniforms, music and sports lessons.
• 96% of participants who complete the program met

or exceeded their savings goal.
amount or more 2–3 years after completing the program.
• We have enrolled 543 new participants in Saver Plusso far this year.
• We have extended Saver Plus in Victoria with the launchof a new site in partnership with community organisation
Jewish Care.

MONEYBUSINESS• MoneyBusiness is ANZ’s flagship Indigenous Financial

Literacy education program. MoneyBusiness was developedin partnership with the Australian Government Department
of Families, Housing, Community Services and Indigenous
Affairs (FaHCSIA) in 2005.

INTERNET BANKING SECURITY AND NEW
ONLINE PRODUCTS
A major upgrade of Internet Banking security is underway to
be implemented in October. A recent security enhancement
allows ANZ to recall internet banking payments notified to
us by customers as potentially fraudulent.
Over 15,000 customers have registered with our new ANZ
MoneyManager service, providing customers with a single
online view of their financial information together with
automated budgeting and reporting tools.
We launched SmartyPig, Australia’s first online savings
account which uses social networking sites to help
customers save for specific goals. Customers can track
their progress via sites such as Facebook and MySpace,and family and friends can securely contribute to theperson’s savings goal online.

• MoneyBusiness is being used in remote communities

across Western Australia, the Northern Territory andQueensland.

RETAIL CUSTOMER SATISFACTION IN AUSTRALIAAND NEW ZEALAND• ANZ retail customer satisfaction in Australia has increased

from 77.1% in September 2008 to 77.6% in March 2009.
We remain ahead of all major banks and second overall.
• ANZ New Zealand retail customer satisfaction is 62%, down

2% on the previous quarter. National Bank (NZ) is at 69%,
a 2% increase on the previous quarter.

• Our Australian Call Centre was set up to assist the Red Cross

through the donation of 600 volunteer hours.
• ANZ donated A$1M to the Red Cross Bushfire Appeal.

page 2

page 3

CHAIRMAN’S REPORT

1 Charles Goode
Dear Shareholders
A NZ ISS CON
O TINUINGTOO MAKAKEE PROGGRE
R SS IN
SY
YSTEM
M AT
ATICALLY
LY REDU
UCING
RISSK PARTT ICULAA RL
R Y IN OURINSS TITUTUTIO
T IO
ONAL DIVISIONDIVISION
ON
N.

Enclosed with this edition of Shareholder Contact is theadvice of your 2009 Interim Dividend of 46 cents per share
fully franked.
Our net profit after tax of $1,417 million for the half year ended
31 March 2009, was up 4% on the preceding half, although
down 28% compared to the first half of last year. Reflecting
the continuation of difficult conditions in global financial
markets and the world economy, provisions for credit costs
were significant and cash earnings per share for the half year
were down 35% compared to the first half of last year.
We kept shareholders informed of ANZ’s trading performance
during the half. This included a decision by the Board to adopt
a more appropriate dividend policy for the current conditions
which saw the Interim Dividend reduced by 26%. We know
reducing dividends impacts all shareholders particularly
individuals however the decision to move to a moresustainable dividend pay-out ratio is in the best long terminterests of all our shareholders.
The economic environment continued to deteriorate in thefirst half of 2009 as reduced confidence weighed on activity
around the world. The New Zealand economy is in recession
and in Australia the economy is suffering a significant
weakening. Economies in Asia, particularly China, continue
to perform more strongly than the rest of the world.
In addition we are managing a number of issues which are
specific to ANZ such as our exposure to structured credit
intermediation trades.

page 4

ANZ is continuing to make progress in systematicallyreducing risk particularly in our Institutional Division.
Looking at our divisional and geographic performance,
there were reasonable results from our Australian region with
underlying profit after tax growth of 1% on the preceding half.
Our New Zealand businesses worked hard in a difficult economic
environment. There were good revenue performances from theMarkets and Rural businesses offset by a large increase in
the provisions and a NZ$116 million post-tax charge for the
ING NZ settlement. This saw underlying profit after tax fall
3% on the preceding half.
The result in the Asia Pacific, Europe and America regions
was a highlight – with underlying profit after tax up 115% –demonstrating strong progress in our super regional strategy.
In the Institutional Division, the core business is performing
well with underlying profit after tax up significantly on thepreceding half. However, the headline result was down
$83m post tax, impacted by a sharp increase in provisions,a further increase in credit risk charges required for credit
intermediation trades and impairment losses in the noncontinuing private equity and alternative asset portfolios.
We made a number of senior appointments that further
strengthened our banking experience and supported ourstrategy. Shayne Elliott was appointed as Group Managing
Director Institutional, joining ANZ following an internationalbanking career with EFG-Hermes and Citigroup.

David Hisco was promoted to the role of Group Managing
Director Commercial. It was announced that Graham Hodges
would take up the role of Deputy Chief Executive and he was
succeeded as Chief Executive of ANZ National Bank in
New Zealand by Jenny Fagg.
ANZ’s capital planning has anticipated the difficult economic
conditions we are currently experiencing. From the end of
2007, the Group has moved to increase provisioning, liquidity
and capital to levels appropriate for the new economic andmarket circumstances. ANZ’s Tier 1 capital ratio was 8.2%
at the end of March 2009, up from 6.9% a year ago which
continues to compare favourably globally and against
domestic peer banks.
While we anticipate the current difficult economic conditions
will be with us in the second half of 2009 and early 2010, ANZ
has the financial strength and in our opinion the right strategy
to continue to deliver acceptable returns for shareholders.

Charles Goode

page 5

CHIEF EXECUTIVE OFFICER’S REVIEW

2 Mike Smith

Dear Fellow Shareholder,
OVER THE NEXT TWO DE
DECADES ECONNOMIC GROWTH
IN MANYY PARTS OF ASIA,
A, PARTICULARLR Y IN CHINAA
AND INDIA
A , WILL OUTPAC
CE THE REST OF TH
T E WORLLD
BY A FFAC
A TOR
R OF THREE OR FOUR.
FO

In my report to you last year, I said that ANZ was undergoinga period of renewal and change focused on our strategy to
become a super regional bank that delivers out performancefor shareholders.
Since that time, ANZ has weathered an extraordinary year.
Global financial markets have been in turmoil and world
economic activity has slowed dramatically impacting many
aspects of our business, including our customers and thefinancial markets we rely on to raise funds.
Despite the challenges, it is clear from our performance inthe first half of the year that ANZ has a diversified set ofbusinesses which are continuing to perform well with strong
revenue trends. Importantly, we are also delivering against
the milestones we set for the first two years in our strategy.
• We are turning around the Institutional Division, restoring

it to system performance and setting up a foundation for
the future.
• Across the Group, we have established a strategic approachto cost management. This includes the introduction of asimpler customer focused business model with fewer
management layers.
• We are selectively investing in organic growth anddelivering a substantial increase in profit in Asia which
is now over 15% of ANZ’s earnings.

page 6• And finally, we are capturing existing opportunities bymaintaining our high quality domestic franchises inAustralia and New Zealand.
At the same time, we have taken a realistic view of the
impact of the global financial crisis and the economic
slowdown on ANZ.
We have faced up to a number of legacy issues in thebusiness and have been preparing the balance sheet for
the global recession and the weakening credit environmentthat has come with it.
In this situation, we are continuing to focus on four key
drivers for the bank: maintaining a strong capital andliquidity position; anticipating the impacts of the economic
environment by ensuring we have adequate provisions;systematically completing the remediation in parts of thebusiness; and driving our strategic growth agenda to
become a super regional bank in the Asia Pacific region.
Our focus on Asia is driven by the reality that over the
next two decades, economic growth in many parts of Asia –particularly in China and India – will outpace the rest of theworld by a factor of three or four. At the same time, the tradeand investment links between Australia and New Zealandand Asia are continuing to deepen.

The aspiration we set, however, is not simply about Asia –it is also about building and investing in our presence inAustralia and maintaining our leading position in New Zealand.
Globally, banks are operating in an extraordinarily difficult
environment. However, these results demonstrate ANZ
is making good progress with its strategy and is uniquely
positioned to take advantage of the opportunities now
emerging in our region.
There is still much to be done at ANZ, but we are now on amuch stronger footing than a year ago. Importantly, we havethe right strategy to come through this period as one of thestrongest, best positioned and most successful banks in
the Asia Pacific region.

Michael Smith

page 7

3 Financial and Other Information

ANZ IS A WELL ESTABLISHED BANK WITH ITS WORLD HEADQUARTERS IN MELBOURNE,
AUSTRALIA AND AN IMPRESSIVE HISTORY DATING BACK OVER 170 YEARS.

GROUP PERFORMANCE HIGHLIGHTS
1H09

1H09 v. 2H08 (HoH)

1H09 v. 1H08 (PCP)Net Profit after Tax$1,417m

Up 4%

Down 28%^$1,908m

Up 20%

Up 4%$7,040m

Up 11%

Up 18%$2,944m

Up 7%

Up 11%

Provisions$1,435m

Up 5%

Up 98%

EPS^

89.7 cents

Up 12%

Down 6%

Underlying Profit^

Revenue

Expenses^^

Interim Dividend

46 cents

Down 26%

Customer Deposits$226bnUp 11%Up 16%Net Loans and Advances including Acceptances$357bn

Up 2%

Up 7%

Shareholders Equity

$28bn

Up 7%

Up 18%

Tier 1 Capital

8.2%

Up 46bps

Up 133bps

BPS – Basis points. A basis point is 1/100 th of a percent or 0.01 percent. Underlying profit is defined as NPAT adjusting for one-off and non-core items^

All figures other than NPAT, provisions and dividend are underlying

NPAT – Net Profit after Tax

HoH – Half on Half

PCP – Prior comparison period

NEW DIRECTORSKEY DATES*MR LEE HSIEN YANG, MSC, BA
A
New Non-Executive Director
Board Appointment
Non-executive director
since February 2009.

Announcement of Annual Results[year ended 30 September 2009]• Thursday, 29 October 2009

Mr Lee is a member of theTechnology Committee.

• Friday, 18 December 2009 in Melbourne

Annual General Meeting
Final Dividend Ordinary Shares• Ex Dividend Date: 5 November 2009

Skills, experience and expertise
Mr Lee is one of Asia’s most respected business leaders
who lives in Singapore and has considerable knowledgeof the region.
He has a background in engineering and brings to the Board
his international business and management experience
across a wide range of sectors including food and beverages,
properties, publishing and printing, telecommunications,financial services, education, civil aviation and land transport.
Age 51 Residence Singapore• Record Date: 11 November 2009
• Payment Date: 18 December 2009

Australia• One of the top 4 banks• A Top 10 listed company• Staff engagement score compares favourably to

global benchmark for financial services companies• Leader in customer satisfaction among the major

Australian Banks

TIMELINE
1837

1852

Union Bank
of Australia

The English,
Scottish & Australian
Bank Limited

New Zealand

ANZ – ONE OF THE
LEADING BANKS IN
THE REGION• Over 150 years in New Zealand• Acquired the National Bank of New Zealand in

2004, becoming the largest bank in New Zealand• ~50% of the New Zealand banking population has

a relationship with ANZ
The Bank ofAustralasia

1951
Merged toform ANZ

Pacific expansion
under ANZ entity(Solomon Islands)

First Asia presence(Japan)Amalgamation
to form Australia
and New Zealand
Banking GroupFirst partnershipin Asia

Wealth management
joint venture 49% in
ING Australia Group

Purchase National
Bank of New Zealand

Expanded Asia
partnerships

Internationally• Largest company in New Zealand• Largest Australian bank presence in Asia
• Leading bank in the South Pacific1835

page 8

1852

1966

1969

1970

1993

2002

2004

2005–2008* If there are any changes to these dates, the Australian Securities Exchange will be
notified accordingly.

page 9

WE HAVE A LONG-TERM COMMITMENT TO RESPONSIBLE BUSINESS PRACTICE. WE FOCUS ON THE ECONOMIC,
SOCIAL AND ENVIRONMENTAL ISSUES AND OPPORTUNITIES MOST RELEVANT TO OUR BUSINESS AND EXPERTISE,
WHERE WE CAN LEAD AND DELIVER REAL AND POSITIVE CHANGE.

4 Corporate Responsibility
Supporting our customers experiencing financial difficulty

Investing in economic, social and financial inclusion in our region

ANZ HAS INVESTED TO IMPROVE SUPPORT FOR OUR CUSTOMERS EXPERIENCINGTEMPORARY FINANCIAL DIFFICULTY.

ANZ IS USING OUR RESOURCES AND EXPERTISE IN BANKING AND FINANCIAL LITERACY TO CONTRIBUTE TO ECONOMIC
DEVELOPMENT IN THE ASIA PACIFIC REGION.

At a glance:• Greater levels of support for our customers facing

financial difficulty• National ‘check-in’ with business customers to better

understand the pressures they are facing• $8 billion in lending available to help small businesses

manage in this tough economic environment

In Australia, our dedicated Customer Connect team(1800 252 845) is on hand to offer flexible relief packages
for our home loan, credit card, personal loan or small
business loan customers who are finding it difficult tomeet repayments.
Temporary relief packages have been developed based onwhat our customers can afford to pay while they get back on
their feet. For home loan customers, reduced or deferred
repayments for 3 months is the most common form ofrelief taken up.
We check back with customers regularly to see how they
are coping and whether they are able to return to theirnormal repayment schedules. Extended relief periods of
up to 12 months are available for customers who needmore time.

page 10

Supporting our business customers becomes even more vitalin the current economic climate. We contacted over 18,000
business customers in February to understand how they were
coping and whether any specific assistance was required tostabilise their financial situation.
Relationship Managers were able to identify potential
problems early and put in place appropriate responses.
Support measures range from credit extensions to boost
cash flow to loan restructures so customers can manage
repayments while continuing to invest sufficiently intheir business.
“CUSTOMERS WANT TO KNOW THEIR BANK IS BEHIND THEM
IN UNCERTAIN TIMES. CONVERSATIONS SUCH AS THESE
CAN HELP TURN AROUND SEEMINGLY INSURMOUNTABLE
PROBLEMS VERY QUICKLY.”DAVID HISCO, GROUP MANAGING DIRECTOR,COMMERCIAL BANKING.

ANZ also committed A$8 billion to new and existing small
and medium business customers in 2009. The lending will
provide the working capital they need to maintain cash flow,
support new investments and facilitate international trade.

At a glance:• Expertise in financial literacy is being adapted to support

development in Asia and the Pacific• WING mobile payment services is facilitating inclusion by

providing basic financial services to more rural communities
in Cambodia• ANZ announces plans to establish a rural bank in Western

China that will help support the Chinese Government’s rural
reform program

Our flagship Australian community programs, Saver Plus,
MoneyMinded and Progress Loans, have shown us first-hand
how increasing money management capabilities and accessto basic banking services can help bridge financial andsocial divides for the vulnerable.
Now in Asia Pacific, initiatives like WING in Cambodia arealso demonstrating that, coupled with the expansion of ourservices, financial literacy and capacity building programs
contribute to even greater economic, social and financial
inclusion in developing markets.

Cambodia is largely a cash economy and banking is largely
targeted at the urban middle class. Around 95% of the
population has limited access to formal financial services,
yet mobile phone ownership is growing by around 50%
per year.
WING gives individuals and businesses a safe, convenientand inexpensive way to store and transfer money throughany mobile phone, dramatically improving access to basic
financial services at a lower cost than traditional branchbased models.
More than 10,000 customers have signed up to WING since
the launch in Cambodia in January 2009. Seventy-five percent of these customers are from under-banked rural areas.
“PEOPLE IN RURAL AREAS OF CAMBODIA TEND TO SUFFER
FROM A ‘POVERTY PREMIUM’, MEANING THEY PAY MORE
FOR BASIC SERVICES, (SUCH AS MONEY TRANSFERSERVICES) THAN THOSE IN URBAN CENTRES, THEREBYCOMPOUNDING THEIR SITUATION,”
SAYS WING’S MANAGING DIRECTOR, BRAD JONES.

“Because it is accessible through any mobile phone, WING can
reduce the cost and time of managing money, stimulating
savings and creating a pathway to other financial aspirations.”

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4 Corporate Responsibility
Our Performance

RESPONSIBLE PRODUCTS, SERVICES AND DECISIONS

We are committed to providing simple,
uncomplicated products and services tailoredto our customers’ needs and making responsible
business decisions that balance economic,
social and environmental considerations.

We are identifying new opportunities tocontribute to economically, socially andenvironmentally responsible development.

SOCIAL AND FINANCIAL INCLUSION

We aim to improve the social andfinancial inclusion of disadvantaged andunder-represented groups in our community.

OUR PROGRESS IN 2009

OUR PROGRESS IN 2009

OUR PROGRESS IN 2009

• Release of ANZ values – Integrity, Collaboration,• More than 10,000 customers have signed up for our WING

• Introduced new initiatives to tailor products andAccountability, Respect and Excellence – to help guideour decisions and ensure we pursue our objectives inan ethical and sustainable manner• Launched the Code of Conduct & Ethics, a new training

course for staff that has been completed by 96% of
employees• Implemented the Group-wide Reputation Risk Policy andgovernance framework• Implemented new flexible relief options for consumer

credit and small business customers impacted by job loss,
including repayment holidays for up to 12 months• Announced new hardship relief options for consumer

credit and small business customers impacted by job loss,
including repayment holidays for up to 12 months

page 12SUSTAINABLE DEVELOPMENT

mobile phone payments service in Cambodia, providing
businesses and individuals with a safe, convenient andlow cost way to store and transfer money (see page 11 formore information)• Announced plans to establish a new rural bank in

Liangpang; near the city of Chongqing in Western China.
ANZ will use experience in agri-business banking to expand
further in rural China and in so doing, support the Chinese
Government’s rural reform program• On track to meet our 2007–2009 environmental footprint

targets for electricity, water and paper consumption

services to a diverse range of customers, including• specialist retirement banking advice in ANZ branches
around Australia• cultural training to help staff provide better service
to Chinese customers• Intake of Indigenous trainees in 2009 is behind schedule,

however improvements to our recruitment process has
increased the retention rate to 93%, compared to 65%
this time last year
• Increased women in senior management roles by 1%,

however more progress is required at manager level toachieve our goal to increase women in management
positions by 2–3% across all major geographies• Working with community partners to improve recruitment

rates for our financial literacy and inclusion programs,
including launching a new Victorian site for our Saver Plus
matched savings program with community organisation
Jewish Carepage 13

5 Our New Brand
Late last year, as part of our aspiration to become a superregional bank, we announced a new brand and logo for theGroup to be rolled out progressively over the next two years.
Our strategy is for the Asia Pacific division to contributeabout 20% NPAT of our earnings by 2012. As part of thisgrowth agenda, we need our brand to translate across a vast
region that covers diverse audiences and geographies,
including those with non-English speaking backgrounds.
An important component of achieving our super regionalbank ambition is going to be a consistent, highly-valued
and relevant brand across the region. Our new logo will
create a common visual identity for ANZ that is easily
recognisable to customers, shareholders and staff,
across all of our regions and segments.
In developing the new brand, we commissioned Millward
Brown to conduct research across the Asia-Pacific region
which covered six countries and 12 cities, 50 ANZ staff,
and 1200 customers and non-customers.

THERE WERE TWO COMMON THEMES:PEOPLE WANTED THEIR BANK TO BE “PEOPLE-SHAPED”
AND THEY WANTED TO HAVE A BANKING EXPERIENCE
THAT WAS “UNCOMPLICATED”.

From these insights we developed our new brand, which
includes the following features:• The reduction of ANZ word-mark lines from three to one– representing ‘One ANZ’. The line also represents theequator which runs through our region.
• The addition of a new symbol to accompany the word-

mark called ‘The Lotus’ which will represent ANZ in all
our markets regardless of language. The three petals of
the lotus represent our region; Australia, New Zealandand Asia Pacific. The central shape represents the bank’s
customers and people who are the driving force behind
ANZ’s business.

Despite these challenging economic times, it is importantfor us to continue to invest in our brand and reputation so
we will be better placed for the eventual upturn. A bank’s
reputation is what carries it through the highs and lows of
the business cycle.
We remain committed to extending our point of difference
over the next few years with an even stronger focus on making
banking uncomplicated and simple, and ensuring we are
more focused on people and empathetic to the needs ofour customers.

ANZ chose Indonesia, one of ANZ’s highest priority markets
in Asia, as the first market to officially launch the new brandto the world at the opening of two new branches in April.
The brand will then be rolled out across our Asia Pacificgeographies country-by-country in line with our expansion
strategy, new developments and upgrades.
ANZ’s Institutional division will follow in August 2009 andin late 2009, we will begin rolling out the new brand acrossAustralia and New Zealand and ANZ Private Bank.

Given the current economic climate, there is the need to
be prudent and mindful of costs across the Group. The new
brand will be rolled out in stages across our businesses andgeographies over the next 24 months as part of business-asusual upgrades and refurbishments.

MIKE SMITH, CEO, IN TONGA TO OPEN
ANZ’S NEW ADMINISTRATION OFFICEANZ TOWER, JAKARTA, INDONESIA

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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 (Within Australia)+61 3 9415 4010 (International Callers)
Facsimile: +61 3 9473 2500
Email: anzshareregistry@computershare.com.au
New Zealand
Private Bag 92119
Auckland 1142 New Zealand
Telephone: 0800 174 007
Facsimile: +64 9 488 8787
United Kingdom
PO Box 82, The Pavilions
Bridgwater Road Bristol BS99 7NH
Telephone: +44 870 702 0000
Facsimile: +44 870 703 6101