CHAIRMAN’S REPORT
A message from David Gonski AC
Enclosed with this Shareholder Update is advice of your 2014 Interim Dividend
payment of 83 cents per share fully franked, 14% higher than the first half of 2013.
This represents a strong outcome for shareholders reflecting another good financial
performance for the half with statutory profit up 15% to $3.4 billion while cash
profit rose 11% to $3.5 billion.
Shareholders are also continuing to benefit fromcareful management of capital. In recent years wehave gradually moved to a more even split between
the half year and full year dividends to reduce capitalvolatility. We have also been in a position to maintainthe dividend payout ratio towards the upper end of
the Board’s target of 65 to 70% of Cash Profit.
This is my first communication to shareholders
having re-joined the ANZ Board earlier this year andhad the privilege to succeeded John Morschel as yourChairman on 1 May 2014.
It’s very pleasing to be back after six years. The
financial result for the first half of 2014 highlights
the enormous progress ANZ has made in this time.
That progress is based on an exciting direction
established in 2007 with our super regional strategy.
In this half, it saw good performances from our key
domestic business in Australia and in New Zealandand rapid growth from the continued expansion of
our presence in Asia Pacific.
Our financial performance is being supported bystronger outcomes for the 8 million customers weserve in 33 countries. This is seeing ANZ growmarket share in our key markets and maintain andbuild customer satisfaction.
We are also working hard to make a difference inthe community, including a focus on promoting
financial inclusion and integrating social andenvironmental considerations into our businessdecisions.

Much of the change I have observed at ANZ reflects
the quality of the management team establishedunder our Chief Executive Mike Smith’s leadership.
I also want to acknowledge John Morschel’ssignificant legacy at ANZ having been a director forthe past 10 years and as Chairman for the past four.
I know ANZ is a better bank today because of hiscontribution. This extends to a number of directors
who have retired as planned or stepped downbecause of their other commitments during the half:David Meiklejohn, Greg Clark, Alison Watkins andPeter Hay. On behalf of shareholders I want to thankthem for their service.
To support a process of board renewal, we havebeen very pleased to welcome John (J.T.) Macfarlane
to the board in May. John was formerly Chairman
and CEO of Deutsche Bank Australia and NewZealand.
Our performance in the first half demonstrates
ANZ is delivering for shareholders, for customers
and for the community and we are continuing to
make good progress toward building a regionallyconnected bank focussed on Australia, New Zealandand Asia Pacific.
This positions us well for a good 2014 and, on behalfof our shareholders, I’d like to thank our talented
and professional staff for their contribution.

DAVID GONSKI ACCHAIRMAN

2014 HALF YEAR HIGHLIGHTS
14%$3,515 million

83 cents

1H13

1H13

CASH PROFIT$3,179 million

10%128.7 cents

DIVIDEND PER SHARE

CASH EARNINGS PER ORDINARY SHARE

73 cents

1H13

116.9 cents

179700_01K85L

11%