Investor Discussion Pack
Graham Hodges
Deputy CEO
Philip Chronican
CEO Australia
AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED
March 2011

ANZ has established a strong business foundation
A clear company wide focus on our super regional strategy:• Organised our business around three key geographies and our customers

p. 2-18• Market Update - Three months to 31 December 2010

p. 19-23• Maintaining strong businesses in our home markets:• Australia

p. 24-36• New Zealandp. 47-51
p• Investing for strong organic growth in Asia

p. 37-46• A redefined and clear focus in our global institutional businessp. 52-65• Supported by a strong capital and funding positionp. 66-74• Strengthened governance and risk systems and an improving credit outlook p. 75-82• Economic updates

p. 83-102

1

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AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED
March 2011

Overview and strategy

ANZ is structured by Geography & Segment

A i P
Asia
Pacific,
ifi Europe
E& America
Ai(APEA)
Retail(including
partnerships)

Commercial

Wealth(emerging)

Institutional

Australia
Retail

WealthCommercial

Institutional

New Zealand
Retail

WealthCommercial

Institutional is a global business

Overview & Strategy

3Institutional

Super Regional - driving long term growth anddiffdifferentiatedti t d returnstForecast GDP growth1 (% p.a, 2011-14)

UK
2.3%

Denotes two way merchandise trade flow 3(2009)

FDI inward flow2 (USDb, 2009)

KR
4.0%
4
0%

EU
1.6%

6

CN
78
8.7%
Asia-Europe
Trade: US$1.0trn

IN
8.5%
TH
4.5%

Intra-Asia
Trade:$1.6trn

MLY
5.0%
SG
4.6%

35

12

TW
5.1%

3

HK
5.0%

48

VN
7.1%

8

5
PHI
4.6%

2

PNG
5.0%
5
0%

0.4

US
2.7%

Asia-US
Trade: US$0.8trn

Pacific-Asia4
Trade: US$6bn

1

17

IND
5.9%

5

Aus/NZ-Asia
Trade: US$235bn

AUS
3.2%

23

Aus/NZ-Pacific5
Trade: US$6bn
NZ
0.2
2.9%

Source: 1. Global Insight; 2. Bloomberg; 3. WTO; 4. IMF; 5. ABS and Statistics NZ.

Overview & Strategy

JP
1.6%

4

Coherent strategy
gy – driving
g competitivep
advantageg
Geographic opportunity• Footprint - exposure to Asia’s more rapid growth• Growing financial services requirements• Regional connectivity• Strong domestic markets
and businesses

Leading
Super
Regional
Bank

Building Super Regional
capabilities• Bench strength/international talent• Innovative product capability• ‘Throw and catch’ capability andculture• Enabling technology andoperations hubs

• Global core brand, regional reach• Governance and risk management
Cross-border customer focus• Regional customer insights• Resources,
Resources agribusiness,
agribusiness infrastructure• Trade and investment flows• Migration/people flows, education
Overview & Strategy

5Delivering Super Regional performance momentum
OUTPERFORM
AND TRANSFORM
OUTPERFORM
9 Move from a presence to areal business in Asia

RESTORE– 14% of Group Earnings– Beachhead in Greater China,
SE Asia, India, Mekong

9 Institutional growth

9 MaintainM ii strong ddomesticifranchises

9 Stronger risk and governanceprocesses

9 Increased management
bench strength

9 Increased internationalbanking experience

9 Create hub foundation

9 Balance sheet and capitalmanagement

2007-2009
Overview & Strategy

Realise fullpotential of Super
Regional aspiration
Capturing value:• To Asia
OUTPERFORM• Within Asia
• From Asia

9 Improving balance sheet
composition
9 Improved funding diversity

2009-20106

2011-2017

Realising the full potential of Super Regional
2017
Aspiration

APEA sourced revenue to drive
25% - 30% of Group profit

Expanded view ofopportunity in
APEA• The more mature our business, the greater our opportunities• Increasing our footprint, customers and access to trade, liquidity

Domestic
outperformance• Regional connectivity will deliver additional revenue into

Centres of
Excellence• Hubs provide a lower and more flexible cost base – access

Focussedtechnology
investments• Technology roadmap focused on customer facing (e.g. internet

Overview & Strategy

and investment flows

Australia, New Zealand, Asia and the Pacificdeeper pools of talent, provide better service with lower riskbanking, goMoney) and cross-border systems (e.g. FX, CashManagement)

7

Realising the full potential of Super Regional
2017
Aspiration

APEA sourced revenue to drive
25% - 30% of Group profit• Continue to build depth in international management andPeoplepbanking experience• Well defined succession planning• Remuneration and incentives aligned to delivery of strategy andmanagement of risk

Risk
Management• Risk management as a core competency– Increased expertise across the risk function– Comprehensive set of asset writing strategies– Product and segment expertise – focus on sectors we know
• Customer driven rather than product focused• Lower balance sheet intensity

Financial
Management• Greater balance sheet diversity• Reduced reliance on interest income• Funding flexibility

Overview & Strategy

8Growth levers - organic,organic partnerships and M&A

Continued Focus on Organic Growth
Leveraging Super Regional connectivity
Increasing productivity
Focus on core customers

Managing the value of ANZ’s
Partnerships

Selective M&A opportunities• Deliveringg access to attractive markets//
segments• Linking partnership customers to ANZ’sinternational network• Actively managing the portfolio to
optimiseti i strategict t i positioning
iti i

Overview & Strategy• Dislocation in global markets continuing
to create opportunities• Consistent M&A disciplines – on
strategy, delivers value, executable

9Building a genuinely pan regional business connectivity provides a competitive advantage
Linked through flows of trade,
capital and population

Growth in trade and capital flows between Asia
and Australia are tracking 17% to 25% pa
Surplus savings

There is approximately$60b in direct foreign
investment into Australia
f
from
the
th AsianA iregioni

Key focus is to bridge gaps acrossthe region: Asia generates surplus
liquidity Australia and NZ generateliquidity,
hard and soft commodities

Commodity
consumers

Over 50% of domestic customersddependd on AAsia
i for
f over 25% off
their business
Strategy extends beyond banking
Australia / NZ customers into Asia,
we are actively facilitating intra-Asia
cash management, trade andmarkets transactions for Asiancustomers
Overview & Strategy

Migration &Investment

Commodity
producers

Natural resources account for $80b or 30%
of Australian and New Zealand exports
Soft commodities account for $40b or 15%
of Australian and New Zealand exports

10Strategy is supported by a disciplined approach to M&A– RBS Asia
A i acquisitioni iti•

Acquired RBS¹ businesses in six countries,aligned with current strategy:¾ Retail,l wealthl h & commerciall
businesses in Taiwan, Singapore
Indonesia² and Hong Kong;¾ Institutional businesses in Taiwan, thePhilippines and Vietnam

•

•

1.
2.
3.
4.

Purchase price US$50m (˜A$60m)
premium to fully provided recapitalised net
tangible book value³. Equates to ˜1.1 x
net tangible book value
Transaction includes ˜US$7bn (A$9bn)
deposits, ˜US$3bn (A$4bn) loans,˜2maffluent and emerging affluent customers,
49 branches

Country

Business

TaiwanRetailCommercial
Institutional21& 16
licenses~1.3m~US $2.5b

Hong Kong

RetailCommercial

5

~30k

~US$1.4b

Singapore

RetailCommercial

5

~350k

~US$1.8b

Indonesia

RetailCommercial

18

~450k

~US$700m

VietnamInstitutional-~60~US$20m

Philippines

Institutional

-

~100

~US4m

Transaction is largely a sale of assets and liabilities, not companies, of businesses held by ABNAMRO mainly through branches, RBS will retain a presence in some countries.
The Indonesian retail, wealth and commercial businesses will be acquired through ANZ’s 99%
owned subsidiary ANZ Panin.
Based on RWA calculated by ANZ under a Basel II standardised approach as at 31 May 2009.
On a fully provided recapitalised basis

Overview & Strategy

11

Branches Customers DepositsStrategy is supported by a disciplined approach to M&A- ING Australia
A t li andd New
NZealandZ l d Joint
J i t Ventures
V t•Acquired ING Groep’s (ING) 51% interest in ING
Australia and ING NZ (the JVs) for $1,760m1¾~11x
11x multiple of normalised 2008 earnings2¾

1.2x multiple of embedded value (EV)3•

Cash EPS accretive in FY104•

Delivered immediate scale – FUM, In-force
premiums, and distribution

Australia
Acquiredd ING'sG' 51%% in ING
G Australialmanufacturing and distribution of investment
life & GI products, the Equity owned advisor
networks and administration platforms
Australia FUM: $39b

¾ ~$42b of FUM, $1.3b of in-force premiums

Oasis Wrap 13%

M
Mezzaninei4%Wholesale1%¾ ~1,700 aligned dealer group advisers (Aus)¾ Historically around 2/3rd of operating income
from wealth management,g, one third from risk

OneAnswer Mastertrust 40%
Employer Super 27%¾ Australia – No. 3 in life insurance5, No. 5 inretail funds mgt, largest aligned adviser force

Other Retail15%¾ New Zealand – No. 5 in life insurance5 largest
KiwiSaver provider, No. 2 funds manager

New Zealand•Funded from existing resources, capital impact~(70)bps, pro forma Tier 1 post acquisition 9.5%6•

Transaction completed 30th November 2009•

Announced OnePath branding August 2010

Acquired ING
ING's
s 51% in ING New Zealand:
Wealth Management and Retail, Wholesale
and Property Investment Management

1 Purchase price. Separately ANZ made a payment of $55m to acquire ING’s share of the NZ Diversified Yield Fund (DYF) & Regular Income Fund (RIF)
redeemable preference shares 2 Earnings for the year to 30 September 2008 incorporating normalised long term expectations 3 As at 31 December
2008 4 Based on current share price 5 By in-force premium share 6 As at 30 June 2009 adjusted for $2.2b SPP and impact of RBS acquisition

Overview & Strategy

12Strategy is supported by a disciplined approach to M&A- Landmark
L dkL
Loan anddD
Depositit bbookkOverview of transaction

Overview of Landmark• Acquisition of Landmark Financial Services(LFS) loan and deposit book fromf
AWB’s rural
service business Landmark:• Leading Australian agribusiness company,
offering
ff
merchandise, fertiliser,f
farm
f
services,wool, livestock, finance, insurance and realestate• Largest distributor of merchandise andfertiliser, with ~2,000 employees servicing
100 000 clientsli t across over 400 outlets
tl t~100,000• Net book value on fully provided, nil premiumbasis• ~$2.2b lending assets & ~$0.4b deposits• ~10,000 banking customers• ~100 Relationship Management Staff

Acquired the LFS loan and deposit books,
the lending and deposit taking divisions ofLandmark• ~45 Support staff• ANZ / Landmark to enter exclusive customer
referral agreement:

FinanceInsurance

Fertiliser• Access to ~100,000
100 000 Landmark rural service
customers (~85% of Australian farming
entities)

Landmark
Livestock
Merchandise• Access through extensive network

Farm
Services

Overview & Strategy

13

Wool

Real
EstateANZ has continued to invest for growth notwithstanding
recentt ttougherheconomic
i conditions
diti
Revenue and Expenses

8%

6%

FY06

Net Profit by region

P
Pro
Forma
F
17%
Basis1
12%
12%
10%
9%
8%
7% 8%

FY07
Revenue

FY08

FY09

FY10

Expenses

Net Profit after tax2

Provision charges

1.
2.

Pro forma basis assumes ING Australia and New Zealand, Landmark and Royal bank of Scotland Asia acquisitions took effect from 1 October 2008
and also adjusts for exchange rate movements which have impacted the FY10 results.
FY06-07 presented on a cash basis, FY08-10 presented on an underlying basis adjusted to reflect the ongoing operations of the Group.

Overview & Strategy

14

Group loans and deposits
Group Customer Deposits (A$b)

Group Net Loans and Advances(including acceptances) (A$b)
Loan to Deposit Ratio Sep
S
2010
20 0 – 140%0%Loan to Deposit Ratio Sep 2006 – 171%1

1

1. Includes Wealth and Other

Overview & Strategy

15

Net loans and advances1 by geography
Australia

GrowthNew Zealand (NZD)

APEA (USD)

FY07

FY08

FY09

FY10

FY07

FY08

FY09

FY10

FY07

FY08

FY09

FY10

13%

15%

(1%)

6%

13%

11%

(1%)

(1%)

31%

99%

(14%)

45%

A$b

2
1. NLAs include acceptances 2. Retail includes Wealth and Group Centre

Overview & Strategy

16

Customer deposits by geography
Australia

GrowthNew Zealand (NZD)

APEA (USD)

FY07

FY08

FY09

FY10

FY07

FY08

FY09

FY10

FY07

FY08

FY09

FY10

20%

12%

14%

7%

7%

5%

2%

0%

26%

69%

31%

72%

A$b

1
1. Retail includes Wealth and Other

Overview & Strategy

17Diversified lending portfolio, weighted to secured
mortgage portfolio
Net Loans and Advances (including acceptances) by product line
361

(A$b)
$
1

(A$b)

172
1

47

(A$b)

90
52

1. Includes Wealth.

Overview & Strategy

18

I
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AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED
March 2011Market Update
Three months to 31 December 2010Market update – Three months to 31 December 2010
P fit & Loss
ProfitL• Unaudited underlying profit after tax1 for the three months to 31 December 2010
of approximately $1.4 billion, 27% above the prior corresponding period (PCP)• Profit before provisions (PBP) grew 7% PCP to $2.3 billion - up 1% on the lastquarter of FY2010 (QOQ). Adjusting for foreign exchange (FX) andacquisitions, PBP grew 6% PCP and 2.6% QOQ• Continued strength
g in the Australian Dollar meant that income,, at $4.2$

billion, increased over 2% FX adjusted QOQ with growth in all divisions except New
Zealand. FX impacts produced a 2% negative impact on underlying profit after tax
both PCP and QOQ• ANZ has continued to invest for growth, particularly in Institutional and in Asia.
Revenue/expense jaws were neutral QOQ on an FX adjusted basis• Group margins (excluding Global Markets) showed a small increase across thequarter but the rate of growth has slowed. Higher average funding costs andintense competition,competition especially for deposits
deposits, largely offset the flow-throughflow through of rerepricing in New Zealand and product mix impacts• The provision charge of $294 million is 48% lower PCP and 22% lower QOQ.
1 Profit has been adjusted to exclude non cash and significant items to arrive at underlying profit, the result for the ongoing operations of the Group

20

Market update – Three months to 31 December 2010
B l
BalanceSh
Sheett & A
Assett Q
Qualitylit• Group lending grew 2% QOQ (2% FX adjusted) driven by growth in Australia, inboth Retail and Institutional, and in APEA across all business lines• Group deposit volumes rose 3% QOQ (4% FX adjusted) primarily driven by
Australia and APEA

• Total gross impaired assets declined by $209 million QOQ reflecting a decrease in

new impairedploans and NPCCDs1 and the sale of $$720 million of Centro debt. The
inclusion of Oswal in restructured items led to an increase in new impaired assets;
however ANZ continues to expect a full recovery in relation to this exposure• Provision coverage remains high with the total provision coverage ratio at 2.11%
and the collective provision coverage ratio at 1.35%• An economic overlay of $35 million was added at the end of the first quartercovering the flooding in December. The Group is still assessing the impact of themore recent severe weather events; however the total provision charge for FY11 is
expected to still be broadly in line with the average of consensus estimates.
estimates

1 Non Performing Commitments, Contingencies and Derivatives

21

Market update – Three months to 31 December 2010
B i
Business
UpdateU d t 1
Australia• Retail deposits grew above system (up 3% versus system growth of 2.3%)• Lending growth was dominated by Retail (up 2.5%) and Institutional (up 3.5%)
with Commercial lending flat

• Mortgage lending grew at around 1.5 times system during the period• Margins are tracking broadly in line with the average for 2010.
Asia Pacific, Europe & America (APEA)• RetailR
il anddW
Wealthl h businessesb i
are beginningb i i
to build
b ild momentum post thehintegration of the RBS businesses during 2010 and the Institutional business buildout is also progressing well

• The balance sheet has continued to expand with lending up over 11% to US$27
billion and customer deposits up 6.5% to US$49 billion.

1 All comparisons are QoQ unless otherwise noted22Market update – Three months to 31 December 2010
B i
Business
UpdateU d t 1New Zealand• Lending was flat while deposits grew 4.2%2• Pricing benefits from the roll
roll-off
off of fixed rate loans and switching to variable rateloans continues to flow through, however the margin benefit has been largely
offset by strong deposit competition• Variable loans comprised 49% of the mortgage portfolio at the end of December
2010 compared to 26% at the end of 2009
• ANZ New Zealand has begun to put in place plans to improve operational efficiency
across the business and better leverage the Group’s super regional strategy• It is expected that a one-off charge of approximately $120 million will be incurredin the first half 2011 to fund the integration of IT systems and related costs which
will
ill b
be excluded
l d d ffrom Underlying
U d l i
P
Profit.
fit
Institutional• Lending increased around 6% (FX adjusted) with over half of the growth from Asiaand the remainder largely in Australia.
Australia Deposits increased 3% (FX adjusted)• Underlying margins were marginally lower excluding Global Markets• Global Markets revenue grew around 7% QOQ• Global Markets business is driving greater diversification across revenue streams;
consequently there was an uplift in the proportion of revenues from both the FX
consequently,
and Commodities businesses during the quarter. The Capital Markets businessexperienced increased deal flow particularly from Asia.
1 All comparisons are QoQ unless otherwise noted
2 In NZD

23

I
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Discussion
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AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED
March 2011

Australia Division

Australia Division – high value strategy has delivered
Pro Forma Basis2

Profit Before
Provisions g
growthAustralia Division Revenue & Expense growth1

Pro Forma
Basis2

Provisions

Net Profit after tax

1.
2.

2005 to 2008 based on “Personal Division” structure, 2009 and 2010 based on “Australia Division” structure,
Pro forma basis assumes ING Australia and New Zealand and Landmark a acquisitions took effect from 1 October 2008.

Australia

25Clear principles - focus,
focus alignment and discipline
1

Future-proof businessarchitecture• Build for the long-term

2

Investment selection,prioritisation and governancepg• Invest in strategies, not projects

3

4

5

• Combine people, process, data andCustomer proposition andexperience

technology to deliver ‘Uncomplicatedandd People-shaped’Plhd’ experiencei• Embed stability and innovate from theTechnology development‘front-end’front end

• Manage change through ‘bite-sized’

Business execution

Australia

initiatives to reduce delivery risk

26

Retail – positioned for continued growthAward winning distribution
network1 …

… driving customer preference(%) Future trial intention, non-bank customers

814 Branches
2,528 ATMs

20

6 types of specialists acrossour network16

24/7 Contact Centre
Innovative digital andmobile channels2

12Peer 18… with market leading productsPeer 3

YoY Growth 09-10
Market shareymultiplepSystemDeposits

13.2%

1.0x

Mortgages

12.3%

1.3x

Consumer finance

18.9%

1.1x

1.
2.

0
Dec-0909

Canstar Cannex, Australia’s number one for Customer Satisfaction with distribution
Winner FIIA 2011 Asia Pacific Innovation Award (Mobile Innovation)

Australia

Peer 2

4

27

Jan-1010

Dec-10Customer experience and regional networks underpin
competitive advantage
Strategic priorities• Continue to acquireqmore affluent customers via
1

Target higher-value
customers

2

Deliver a distinctive
Retail customer
proposition

3

Become the bank ofchoice for migrants

4

Continuously manage
costs and p
productivityyAustralia

targeted, relevant propositions (e.g. Visa Signature;
A-Z Reviews)• Affluent market share +0.9% 12 mths to Dec 2010

• Deliver
D li‘U‘Uncomplicatedlid & People-shaped’
P
l
h
d’

proposition – easy and empowering• Continue investment in brand and delivery• Differentiate through customer service and insight• Leverage Super Regional network to capture Asian
migrant and student flows• Pan-regional migrants make up ~20% of all new
to market customers• Continue migration to lower cost online channels• Invest in increased automation (e.g. Retail
Lending Automation initiative)

28

Success will deliver consistent profitable market share
growth over the long term
Sustained organic share growth …

… through peer leading customer advocacy

Traditional banking market share (Index, Jan 2008=100)

Net promoter score

120
115
110
105
100
95
90
2008

2009

2010

2008

… and above weight trial intention

2009

2010

… with significant upside potential(%) transactional account trial intention(% of FUM) traditional banking share of wallet
60

30
25

56

20
52

15
10

48

5
0

44
2008

Australia

2009
Peer 1
Peer 2

2010
Peer 3

2008
29

2009

2010

Case study: Leveraging regional retail connectivityththroughh ANZ MigrantMitBBankingkichannelhl
By 2015 15% of the Australian population will be of Asian origin
and represent over 22% of the acquirable pool of new to bank customers• Significant acquisition opportunities exist in pre-arrival and new-arrival migrant segments• ANZ’s pan-regional network ensures we are well placed to identify and assist clients ahead of their planned
migration• A specialist Migrant Banking channel developed to ensure and seamless referral process across regions• Offering supported by a new ‘Moving to Australia’ online portal and account opening tool
• Currently have 18 specialist migrant branches and an additional 340 branches with targeted language
capabilities, initiatives underway to increase the number of specialist branches during 2011.

ExampleShanghaig• ANZ Relationship Manager

identifies referral opportunity fora client relocating to Australia
for work.

ANZ Migrant Banking
Referral provided to the ANZ migrantbanking team.
ANZ Migrant Banking specialist:• Determines specific language andfinancial needs of client• Commences account opening andother necessary processes• Identifies appropriate branch to be

primary relationship point for client.

Australia

30

Chinatown branch
Haymarket, Sydney• Asian banking manager isintroduced to client pre departure.

• Meeting is arranged to occur

upon arrival to finalise banking
arrangements and address anyother needs.

Wealth – Integrating the portfolio
Over 2.5m customers
Over 2,200
O
2 200 Financial
Fi
i l PlPlanners
nationwide, through owned andaligned dealer group network

Insurance
Superannuation & Investments

10 Private Banking suites

Private Bank

Market share position 2010
Individual Risk Insurance#3

S
Superannuationi&I
Investments#5

Private Bank

#3

Investment Lending#5

Online/Direct Broking#2

Strategy is to combine all existing
wealth businesses to deliver
differentiated, tiered offerings to key
customer segments

Australia

AlignedDealerGroups31

Large upside and diversified income streams
ANZ has the second largest adviser
footprint …

… with strong momentum in key
business lines

Financial Planner Footprint(% share of Planners)

Individual Risk Inflows(%; New Annual Premiums / Inforce Premiums)

30

30

25

25

28

20

16

16

15

13

10

11

10

ANZ

26
P
Peer
4

24

9

5

22

0

20
Peer 1 ANZ Peer 2 Peer 3 Peer 4 Peer 5 Others

Peer 5Peer 3Peer 6Peer 1

Dec-09Mar-10Jun-10

Sep-10… with ANZ penetration a key
opportunity

Superannuation and Managed
Investments to provide growth …
Super & Investments Inflows(%; Inflow / FUM)

12Peer 3108Peer 5Peer 4Peer 16
4Peer 6ANZ

2
Dec-09Australia

Mar-10Jun-10

Sep-10
32

89%
89 %

11%

WealthOpportunity

ANZ customers with an ANZ Wealth productSetting the foundations for future growth
Strategic priorities• Embed wealth offerings into ANZ customer

1

Step
p changeg in ANZ
customer basepenetration• Continue to capture Superannuation Guarantee (SG)2

Capitalise onopportunities presented
by regulatory andmarket changes• Deliver a fully integrated wealth business to realise3

Leverage combined
wealth business toenhance revenue anddecrease costs

4

Enhance corecapabilities for future
growthAustralia

propositions and channels• Develop simple superannuation and insurance
productsflows (with potential increase from 9% - 12% for SG)• Enhance limited scope advice offering• Leverage our aligned dealer group distribution network

revenue and cost synergies between business units• Invest in increasing automation and online self-service
capabilities to improve efficiency and cost-to-serve• Deliver future wealth platform solution• Deliver tiered offerings to customer segments• Build our capabilities to support possible extension into
Asia

33

A differentiated Commercial Banking proposition
Customer segments range fromtransactional to high-touch …

… regional presence enables‘easy’ connection for customers
Pan-Asianas a countries
cou t es witht an
a ANZ Commercial
Coe c a presencep ese ce

Customer segments
Turnover
$0

$5m

Small
Business$40m

Business
BankingSpecialist business
Agribusiness

Auto Finance

Australia

Commercial Australia is thecornerstone of an integrated
regional offering, providing
customers with access to expert
advice and solutions in 15 markets
across Asia and NZ

34

Consistent customer growth and advocacy
Customer Satisfaction1

Trial Intention(%)(‘000s; Main Bank consideration)

7.5

32
30
Peer 37

ANZ

Dec-0928

Peer 126

Peer 224

6.5

Peer 1ANZ

Peer 2Peer 322
Mar-10Jun-10

Sep-10

Dec-09Dec-10Mar-10Jun-10

Sep-10Dec-10

Customer Acquistion1

FY11 momentum(000 Main(000s;M i Bank
B k Relationships)
R l i
hi )

C
Commercial
i l Bank
B k

30• Customer numbers up 6%2• Lending growth of 2.5% vs. system of 1.0%3

25

Small Business Segment

20• Number of new applications approved up 29%4

ANZ

Business Banking Segment

15

Peer 1
Peer 2Peer 3

10• New Lending FUM approvals up 34%4
• Trade finance sales calls up 30%4
Agribusiness Segment5
Dec-09Mar-10Jun-10

Sep-10• Increased the number of accounts opened by acquired

Dec-10Landmark customers by 16%5

1. Source: DBM; 2. 12 months to Dec-10; 3. Source: APRA Monthly Banking Statistics, Bank Lending to Non-Financial
Institutions, Sep-10 to Dec-10; 4. Sep-09 to Dec-09 vs. Sep-10 to Dec-10; 5. Feb-10 to Dec-10

Australia

35

Case study: Building regional connectivity
ANZ’s regional capability connects customers and creates revenue opportunities.
The following is one example out of the 169 referrals made in the first quarter:
An Indonesian customer contacts
their ANZ Indonesia Commercial
Relationship Manager to talk about
additional banking requirements they
have in Australia.

CustomerIndonesia RM

ANZ Commercial Asia Presence
ANZ Commercial presence in 14
Asian markets with access to 281
Commercial frontline staff

•
•
•
•
•

China
Hong Kong
South Korea
Japan
Singapore

•
•
•
•
•

Australia

Indonesia
Malaysia
ThailandIndia
Cambodia••••

VietnamTaiwanPhilippinesLaos

ANZ Indonesia refers connects
clientli t with
ith a RelationshipR l tihi
Manager in ANZ BusinessBanking Australia.
A suite of banking facilities
including $1.2m in term debt
are established.

Business
B
i
Banking
B ki
RelationshipR l tihi
Manager also identifies traderequirements and connects
client with a Trade FinanceSpecialist who arranges afurther $5.5m in facilities.

Australia RM

Trade Finance Specialist

ANZ Commercial Australia

ANZ Institutional Expertise

Access to 1.5k frontline staff across:• 814 branches• 202 business centres
Specialists in:• Agribusiness• Property• Asset Finance

Leverage ANZ Institutional’s Asian
Trade Finance and Markets expertise

Trade Finance House of
the Year ((’08,, ’09,, ’10))

36

Best Trade Bank inAustralia & thePacific (2009)

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AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED
March 2011

The Asia Pacific Europe & America
DivisionDeep onshore presence and strong network model
delivers connectivity to clientsFranchiseFranchise Markets

Network

Core markets for Institutional,
Institutional Commercial,Commercial Retail & Wealth• Greater China• Greater Mekong1• India• Indonesia• Malaysia• Pacific

Regional Business Hubs
• Singapore

Greater China(33)• Hong Kong

India (1)
Malaysia
Singapore(6)
Si
Network markets are crucial to delivering pan-regional
integrated solutions to clientsIndonesia (28)
• Korea• UAE• Japan• Europe() - Number of branches and• Philippines• America
Ame ica
representative offices in each country• Thailand

Institutional Network markets

1. Focus on Vietnam

APEA

Hubs

38

Greater Mekong(31)
Pacific (60)Since 2008, we have prioritised our build out, enablingt becomebdibl competitor
tit
us to
a credible
1H 2008• Institutional network• Formed partnership with
South andSouth East Asia

North East
Asia, Europe &Americas

AmBank•••••Pan regional Institutional/commercial businessPan-regional
Top 4 foreign bank in Indonesia
Largest foreign bank franchise in Greater Mekong
Pre-approval for Indian banking licence
AmBank an outperformer• Limited Institutional business• Two branches in China• Stand alone Europe & America• Pan-regional institutional banking network and• Limited institutional business• Deep on shore Institutional capability• Full Retail and Wealth, Private Bank and Commercial

business

with few customers

Hubs

Today

• Ex-pat focused Private Bank

customer base• Taiwan –full franchise• China – Branches in top 4 cities + rural bank
• Europe & America - Interconnectivity

businesses• Full banking license in both Hubs

APEA

39

APEA: Balance sheet momentum1
2010 loan and deposit growth byregionAPEA loans & deposits (US$b)
RBS2

Dep.

Loans

2H10

50
5.0

28
2.8

1H10

1.5

0.4

APEA

APEA Current & Saving accounts

Asia

Pacific

Europe &America2010 loan & deposit growth by segment(CASA) (US$b)

Includes accounts from
RBS acquisition

Retaill Asia

Retaill Pacificf

1. All figures based on USD financial information. 2. loans and deposits (in US$b) for the RBS acquisition, includes
Vietnam, Philippines & Hong Kong in 1H10, Taiwan, Singapore & Indonesia in 2H10

APEA

40

Instit.

WealthlhBusiness strategy allows for efficient use of APEA'sli idit surpluslliquidity• Focus on affluent and emerging affluent client segments
Business
Strategy• Building a substantive DCM and Cash Management
capability and investor client baseThis focus allows us to:• Fund our own regional growth in a less expensive andsustainablesusta
ab e wayay• Take Australian and New Zealand clients to the Asian debt
markets

Efficient use of APEA
Liquidity surplus• Opportunity to provide Australian and New Zealand clientswithstructures,
through
ith diversifieddi
ifi d ffunding
di
t
t
th
h assets
t written
itt
in Asia• Access deep pools of liquidity throughout the region inparticular in North East Asia (e.g. Japan, Taiwan)• Contribute positively to the Group balance sheet
APEA

41

Becoming a top four Institutional bank in Asia Pacific
Value Proposition

Customer Segments• Be a core wholesale bank to our clients
Institutional

MNC / Regional Corporate• Leveraging our strengths:– Regional network and connectivity– AA rating

Commercial

Emerging Corporate / SME– Deep insights – geographic, industry, client– Experienced Asian bankers

Financial Institution& Public Sector

APEA• Out-deliver on service and speed• FocusedFd andd deepd
product
d t capabilities
biliti – Cash,
C h Trade,
T d Rates
R t andd
FX, Commodities and Debt Capital Markets

42

We are delivering for Institutional and our clientsA i andd th
P ifi
across Asia
the PacificRegional Connectivity

ExamplesEuropean and US Multinational
companies accessing Asia

• Mandated Lead Arrangers with BNP and
HSBC• US$411m (2.7x launch size)-maiden Asian
syndication bond

Asia Funding for Australian and
New Zealand institutional
clients• Raised
R i d US$1,100m
US$1 100 (3.7x(3 7 launchlh size),i ) mostt
investors new to client• Demand driven by companies with strong
Asian business links• Lead arranged the 33-yearyear club syndication

Asian
A
i
migrationiti
into
i t Australia
A t liand New Zealand –trade, investment and people

refinancing facility for LaSalle Investment
Management Asia's 50% stake in Westfield
Doncaster Retail Mall.

Intra-AsiaI t
A i ttraded andd investment
i
t
t
flows

• Joint lead managers for NZD225m Kauri
bond issuance• Demand from New Zealand (59%) and Asia
(37%)

Intra Pacific and Asia deals• Lead arranger of US$14b financing for PNG
LNG project• Largest debt raising in Asia Pacific

APEA

43

Our Retail & Wealth and Private Bank will deliver local
d regionalil banking
b ki
t the
th affluent
ffl
t iin eachh marketk t
andto• HNW, Affluent & Emerging Affluent
Customer segments• Owners,
Owners management and staff of our institutional andcommercial clients

Position and Value Proposition• Three critical value proposition themes – “Understands andrecognises me”
Retail and Wealth• Based upon relationships, customer advice not product led• Accessible across the region – Pan regional Signature
Priority Banking branches• Banking the family• Meeting the holistic financial needs – savings, protection tocreditPrivate Bank

• A trusted advisor with an understanding of
personal, professional and business needs• Leveraging ANZ’s Institutional and Commercial business to
attract customers

APEA

44

Five key partnerships expand our organic agenda
9 Double play in high growth, high returnmarketPartnership Model

9 Focus on our key segments (Commercial,
Affluent & Emerging Affluent)• Significant influence

9 Scale (Number 5 by assets & deposits) ina closed market• Exposure to growth markets
and segments we cancan’ttcurrently access

9 ANZ significant driver of leap in
performance (market cap increase
56.4% 2008 – 2010)• ANZ adds value through9 Exposure to Shanghai – Top Commercial/ Wealth City in China- leadership & management,- product development,
development- technical expertise and- two way customer flows

9 Focus in Commercial & Retail segmentscomplements our organic focus
9 Play on fourth largest city Commercial
Centre in China
9 Provides exposure in a market in which
we do not have a branch presence• Solid financial returns for ANZ

9 Fourth largest credit card issuer• Potential for long term
strategic positioning

APEA

9 Provides access to profitable segment ofretail market

45

Organic growth a key driver of strategy
2008

2009

2010

2011

2012+

Develop strategy andbuild business modelContinue organic
growth with bolt-ons• Build substantive Institutional• Organic growth anchored by
Institutional / Commercial• Deepen organic growth inhubs and franchise countries• Build Singapore and Hong

• Rapid build out of Retail and
Wealth and Private Bank

• Build South East Asia business• Complete RBS acquisition andintegration• Commence build-out offranchise in second wave
marketsbusinessKong hubs• Created business model for

Retail and Wealth and Private
Bank – scaled up with RBS• Continue to focus on liability
growth• Build risk and governance• Deepen influence in five key
partnerships• Obtained licences• Continue to build out
technology and operational
platforms

model

APEA

46

Extend and deepen
franchise• Seek inorganic opportunities
to build scale

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AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED
March 2011

The New Zealand DivisionOur strategy is to fully leverage ANZ’s leading market
position to deliver superior growth and returns
Leveraging leading market sharepositions1

Two strong banking brands with apowerful market presenceMarket share1
39%

39%

33%

Well diversified portfolio, weighted
to Residential Property
Net Loans & Advances including Acceptances
March 2010

1.

RBNZ and TNS New Zealand Ltd Business Finance Monitor 2. Commercial Main Bank Share

New Zealand48

New Zealand - Retail & Wealth
Retail

Wealth• Asset growth flat, system growth
rates subdued• Income impacted by removal of
exception fees, margins improving,costs impacted by marketingphasing• Share of new mortgage
g g businessincreasing in the <80% LVR market
and overall mortgage growth in thelater part of 2010

• Wealth profitability favourably
impactedpbyy ING NZ full ownershipp

Retail Net Profit after Tax

Wealth growth rates

Pro Forma Basis2

Revenue growth

Expense growth

Provision growth

NPAT growth1.
2.

• $1.5 billion KiwiSaver FUM withover 360,000 customers, #1 withgrowing market share (24.1%)• 19.4% growth in ING Life
Businesses InForce book
• ANZ Private Bank named BestPrivate Bank in New Zealand1
FY10

NZD m

2H10

2010 Euromoney Private Banking Survey
Pro forma basis assumes ING Australia and New Zealand, Landmark and Royal bank of Scotland Asia acquisitions tookeffect from 1 October 2008 and also adjusts for exchange rate movements which have impacted the FY10 results.
49
New Zealand

New Zealand - Commercial
Pro Forma Basis1

Revenue growth

Expense growthCommercial• Leveraged Shanghai Expo as anopportunity to connect customers toAsia and demonstrate regional
capabilities• Privately Owned Business Barometerconsolidates thought leadership andcustomer connections as market leader• Strong
g UDC pperformance takinggadvantage of relative strength infinance company sector• Clear improvements in customer
satisfaction, with ANZ score increasingfrom 58% to 69%

P
Provision
i igrowthhCommercial NPAT
NZD m(excl. Rural)

Rural• Higher Rural incomes with Fonterra
forecasting the third highest dairy payout
on record• ANZ continues to support customers
through this period of increased volatility
in product prices• Greater focus by borrowers on cash
returns and liquidity with many using
increasedd incomes to reduce
d
d
debt
b
• Provisions are expected to improve as
farmers de-leverage• Seminars conducted across the industry
covering topics such as governance, large
business management and financial
understanding for young farmers

Rural NPAT
NZD m

NPAT growth1.

Pro forma basis assumes ING Australia and New Zealand, Landmark and Royal bank of Scotland Asia acquisitions tookeffect from 1 October 2008 and also adjusts for exchange rate movements which have impacted the FY10 results.

New Zealand50

New Zealand - Institutional
Pro Forma Basis2

Revenue growth

Expense growth• ANZ continues to dominate theNZ institutional segment• Second half expense growthddrivenb investment inbypayments systems

Customer revenue
down 14m

Strongg Customer Relationshipsp
New Zealand Relationship Market Penetration1 (%)• Extending its position as clear
market leader with customers(outstanding results across 5Peter Lee Associate surveys)• Leadership of Debt CapitalMarkets and Syndication loan
league tables• Market leading innovative client
solutions e.g.
solutions,e g 1st HKD bondissue, ECA financing

1.
2.

Trading revenue
down 161m• Connecting customers to Asiaand demonstrating ANZ regional
capability with Shanghai World
Expo and Kiwi Day roadshows in
Asia• Awarded INFINZ bank of theyear for focus on customers anddeveloping growth opportunities
for NZNPAT growthInstitutional NZ
2010 Financial Performance

ANZ

Peer 1

Source: Peter Lee Associates Relationship Banking survey, New Zealand, 2010. Sample size 2009 N=132, 2010 N=135
Pro forma basis assumes ING Australia and New Zealand, Landmark and Royal bank of Scotland Asia acquisitions took effectfrom 1 October 2008 and also adjusts for exchange rate movements which have impacted the FY10 results.
51
New ZealandPeer 2Peer 3

I
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AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED
March 2011

The Institutional BusinessGlobal Institutional business focus redefinedFoundations laid

Revenue Contribution by Product• Strengthened the Institutional Leadership
Team, additional team members withTeam
international experience• Starting to execute the technology andoperations roadmap• Improvingp
g capitalpdisciplinep• Exiting non-core businesses• Delivering record pre provision profits• Substantive progress in remediation
completion

Clear goals set• To become the bank of choice for Resources
and Infrastructure in the region

Global Markets
Lending
Trade & Transaction
Banking• Building leading cash, trade and markets
platforms with capabilities acrossAustralia, NZ and Asia

• Targeting significant growth in customer
relationships• Generating well balanced and sustainableearnings across geographies and segments

Global Institutional

53

Increased focus on core customers and geographies
Over 3,500 active Institutional and Corporate
customers supported by over 5,000 staff

A single global team services customer
needs across the network• CorporateCt bbankingkicustomers:tt/overt/$40-400m$40 400• Global representation supports customers
based in Australia, New Zealand, Asia
Pacific, Europe and America geographies• Institutional customers: t/over >$400m• Domestic presence in Australia and New
Zealand for over 170 years

Customer relationship sectors• Banking a full range of customers• Building dominance in a limited number ofsegments• Asian representation commenced over 40
years ago and we now have a presence in 15
Asian markets

Global lines• Natural resources
Priority segments• Infrastructure• Agribusiness• Financial institutions & public sector• Institutional regional hub established in HongKongg ((centralised support
ppfunctions for APEA
institutional business)• Branches in Europe and North America
ensure global network coverage

Other lines• Property
Pt• Diversified industrials• Consumer and services• Telco’s, media, entertainment and technology• Corporatep
Bankingg

Global Institutional

54

Regional networks, superior insights & service
underpin the competitive advantage
Competing globally requires
superior insights and service

Regionallyg
Networked Model• A lead regional bank servicing
clients with pan regional needs• A strong regional branchfootprint• Single platforms for Cash, Trade
Offeringand Markets offering fully
networked seamless platforms
across the region• Deliver insight through industry
sector and regional specialisation
Why?

• Have a sound network throughAsia Pacific to build upon
• Uniquely placed to offer better
insight to region
egion

How?

• Invest in technology and productdevelopment• Grow relationship teams in key
geographies• Focus on lead sectors andproducts

Global Institutional• Building platforms offers viable alternatives• Offering a global service proposition andsettingiclear
lservicei expectationsi• Research and innovation at the coreprovides a competitive advantage overscaled and standardised models• Drawing on insights into customer
industries, the region and the financial
markets adds significant value

55

Global Institutional – a focus on growing core customer
relationships
l tihi
supportingti
incomeiperformancef
Customer Growth>1,100 new relationship managed
customers ex-acquisitions

Customer Income1

Cross Border Income

Super Regional strategy increasingly
capturing cross border revenue flows

14% CAGR

Domestic
BookedStrong Customer Relationships

21%

Debt Capital Markets a key strength• Peter Lee Associates survey of corporate andinstitutional clients in Australia ranked ANZ:

• #1 Bookrunner in Australia/NZ for Q1-Q3 2010 interms of volume and number of transactions¾ First, or equal first, on 14 of the 26 qualitative
relationship categories (up from 8 in FY09)• #1 Mandated Lead Arranger in Asia-Pacific (ex Japan)
for Q1-Q3 2010 in terms of number of transactions¾ First in "overall penetration" (domestic plus
offshore)• #1 Arranger of syndicated loans in Asia
Asia-PacificPacific (exJapan) over the last five years in terms of total loan
volume on a cumulative basis• Peter Lee Associates survey of corporate andinstitutional clients in New Zealand ranked ANZ
first on overall satisfaction, relationship strength,
penetration and a further 17 measures• #1 on the A$ Corporate Bond League Table (INSTO)• #1 in the utilities & infrastructure sector - ANZ hasl d over h
led
half
lf off allll AustralianA t liutilitytilit andd infrastructurei ftttransactions and raised over A$2.3bn in this sector• These results reflect the strength and quality of ourclient relationships
1.

Cross
BorderTotal income adjusted for Global Markets trading income.

Global Institutional

56

Global Markets
Product Contribution

Global Markets Income% Total Income

Sales & Trading Mix (A$m)1
2,062
1,225
857

43%

36%

29%
71%

49%

1,816

64%

51%

57%

Whilst lower than 2009,2009 market
volatility evident in 2010

• Capital Markets growth underlines the benefits ofAsian network expansion, ensuring we are wellplaced to connect our institutional customers with
Asian liquidity pools.
co e diversificationd e s cat o by geographygeog ap y anda d productp oduct• Incomeline helping to offset revenue normalisation as
volatility recedes.
• 2H10 investment in Global Markets management
team to deliver scalable growth in coming years.

1.

FX Adjusted.

Global Institutional

57

Global Institutional P&L drivers
Underlying Performance1

Business Segment Performance1

YOY Movement (FY10 vs. FY09) A$m

YOY Movement (FY10 vs. FY09) A$m

large

14%

(22%)

large
2

2%

14%

(46%)

23%

Geographic Performance1
YOY Movement (FY10 vs. FY09) A$m

Up 29%

2H10 vs
1H10
1.
2.

3%

10%

((29%))

2%

13%

Pro forma basis assumes Royal bank of Scotland Asia acquisition took effect from 1 October 2008 and also adjusts for exchange
rate movements which have impacted the FY10 results. .
Increase largely due to provisions in FY09 related to divested custody business.
58
Global Institutional

Investing across the business in systems and people
Expense Growth1
YOY

HOH

Asia Pacific, Europe & America• Continued investment in growing the Asia franchiseand driving customer acquisition• Investment in support infrastructure to underpin
revenue growth

31% 13%Australia• Investment in frontline capability - people and CRM
tools - to drive revenue uplift• Rollout of cash management platform (Transactive) with in excess of 2,500 Institutional clients now onboarded.

10% 8%• InvestmentItt ini systemsttot enhancehprocess automationtti
and integrated work flow management and inenablement staff to ensure an efficient, well controlledenvironment

New Zealand• Strong cost management led to a YoY reduction in
expenses• HoH increase reflects investment in payments systems
(1%)
(
) 16%
6%
1.

(including settlement before interchange) and in cash
management platform

Pro forma basis assumes Royal bank of Scotland Asia acquisition took effect from 1 October 2008 and also adjusts for exchange
rate movements which have impacted the FY10 results.

Global Institutional

59

Predicated on disciplined execution
Significant growth opportunities

Implementation priorities

Estimated addressable Cash Management
R
RevenuepoolslSustained customer growth• Deepening relationships with existing 3500
active clients• Targeting a significant number of new
customer relationships already identified:o Over 50% of customer growth expectedfrom APEA, 25% from Corporate

($b)
17%
of pool

Process redesign• Simplifying operating platforms andstandardising procedures
Risk management• Effectively partnering with risk and introducing
industry specialists in priority markets
Equipping the team
• Building a high performance culture• Recruiting and training acrossAsia, Operations, Relationships, Cash, Markets
and Trade• Investing heavily in institutional banking
executive leadership and product expertise• Significantlygy expandingpg research capabilitiesp
within priority segments* Korea, Thailand, Vietnam

Global Institutional60

Priority segments – Natural resources & Agriculture
Natural resources

Agriculture• Well positioned to develop a super regional
natural resources business linkinggAustralian producers with Asian processors
and consumers• Growing soft commodity demand from Asia
• Well positioned for Australian and NZ
Corporate and Institutional agricultureclients> Clients and representation in all majordomestic cities, major financial centres
globally and 15 Asian markets• Primary emphasis on providing Markets,
Working Capital and supply-chain
supply chain solutions
to clients• Strong Australian natural resources clientbase and an established and growing
network in Asia

• Revenue streams centred on trade and FX
which are already core competencies• Revenues
R
exceedd thath off theh otherh 3 major
jdomestic banks combined• An organic growth strategy with increasing
wallet penetration of existing clients as wellas capturing identified targets.

• Specialists mineral mining, oil & gas,mineral and oil and gas processing,commodity trading, primary services
segments

Global Institutional• Markets include cereals & sugar, protein
cotton Dairy and Oil Seeds
cotton,61

Priority segments – Infrastructure
Addressable revenue in APAC
Infrastructure market set to grow to
$5 5b
$5.5b

• Goal to become a leading commercial
Infrastructure Bank in the Asia Pacific
R i
Region• Maintain dominant position in Australia and
NZ and invest selectively in Asia

(A$m)

• Infrastructure specialists, by adding
Advisory, Equity placement, underwriting
and DCM to lending and markets
capabilities.
• Focus on power and utilities corresponding
with Asia demand in this category• ROE enhancing by reduced requirement ofbalance sheet• Segments include Power &UtilitiUtilities,
E
Economici IInfrastructureftt(roads, airports etc) and Availability
Infrastructure• The New Zealand Government has announcedgNational Infrastructure Plan anda significant
we are uniquely positioned to assist

Global Institutional

62

Debt
Txn. Banking
AdviceMarkets
Debt Capital Mkts.
EquityPriority products – Cash Management & Trade
Cash Management

Trade• Support trade flows between our core
operating geographies• Vision to be a lead provider of pan-regional cash
managementt solutions
l ti
via
i a single
i l ttransactionaltilinterface• Build on strong market position in Australia
and established presence and reputation as atrade bank in Asia

• Estimate the Asia Pacific wallet for cash
management services at $20b
cross-sell
sell revenue• A significant driver of crossEstimated market share of AustralianInstitutional Trade Business• Investment agenda centred around people andtechnology and designed to accommodate
substantial growth in customer numbers andtransaction volume• RollingR llioutt ANZ T
Transactive,tia web-basedb b
d cashhmanagement platform purpose-built for
institutional, corporate and large businessclients

Global Institutional

Internationall Peer
Domestic Peer

63

Priority products – Regional Rates and FX; Commodities
and Debt Capital Markets
Commodities

Regional Rates and FX• Commodity revenue split:¾ Hedging exposures of commodity producers
and consumers ~ 60% of revenue¾ Trading for customers ~ 40%• Growth opportunities include capturing hedging
opportunities in domestic agri/ middle market
and commodity
y consumers in Asia

• Largest domestic markets business• FX revenues growing at 40% pa since 2007,
2007• Aus/NZ/Pacific Niche, opportunity to expand into
Asian currencies & clients(to become Asian USD specialist)• Rates revenues growing at 75% pa since 2006
• 5 key rates components, natural growth
opportunity as Institutional expands:¾ Hedging client interest rates¾ Hedging client currency futures and swaps(as driven by rate differentials)¾ Selling
S lli
iinvestorst
Gvt.
G t anddS
Semii G
Gvt.
t b
bonds
d
¾ Rates and credit trading¾ Managing ANZ’s balance sheet

Debt Capital Markets• Uniquely positioned with Super Regional

strategy, with significant Asian Capital Market
revenue pools• Borrower / investor multiplier effect• We raise more debt capital in Asia forAustralian and New Zealand borrowers thananyone else
ANZ
Borrowers
Seeking accessto low costcapital andrelated hedging• Corporatesp• Financial
Institutions• Public sector

•
•
•
•
•

GlobalCapitalpMarkets
Team
Research,
adviceLoan
syndication
Bonds
Securitisation
HedgingGlobal Institutional

Investors
Seeking diverseand quality
credit exposure• Wholesale(funds• insurers)• Public sector
64Customercentricity is delivering businessoutcomes in Institutional
Debt Capital Markets

Project, Asset & Export Financing

USD 600mn

SGD 1bn

AUD 1.75bn

USD 600mn

USD 263.7mn

AUD 1.179bn

Senior Unsecured Bonds

Senior Unsecured Bonds

Melco Crown Entertainment

Temasek
Joint Lead Manager andBookrunner

Acquisition of CSR Limited’s
sugar and renewable energy
business, Sucrogen Limited
Wilmar International

Finance for deliveries from
Nokia Siemens Network
ECA: Finnvera
Telkomsel

Financial Advisor

Term Facilities to refinance Hope
Downs 1 & fund development of
Hope Downs 4 iron ore projects
in Western Australia
Hope Downs Iron Ore Pty Ltd
Mandated Lead Arranger

Lender2010

Finance of the acquisition of
Port of Brisbane by Q Port
Holdings Consortium
Mandated Lead Arranger,
Facility Agent and Security
TrusteeNovember 2010

2010

November 2010

AUD 478mn

NZD 150mn

Construction and Term Facilities
for the 206MW Collgar Wind
Farm in Western Australia

Finance for Meridian’s purchaseof Siemens wind turbines for the
Te Uku wind farm
ECA: ELO/EKF
Meridian Wind Farm
Arranger & ECA Agent

Joint Lead Manager andBookrunner

2010

2010

PHP 2bn

SGD 500mn

AUD 3.1bn

AUD 475mn

Senior Unsecured Bonds

Senior Unsecured Bonds

5 Bank Syndicated Inventory
Finance Facility

Metrobank Card Corporation

Singapore Airlines

Joint Lead Manager andBookrunner

Joint Lead Manager andBookrunner2010

June 2010

Structuring and arranging for
expansion of coal export
terminal to 53Mtpa
Newcastle Coal
Infrastructure Group
Financial Advisor

Syndication

Sole Arranger,
Security Trustee & Agent

November 20102010

AUD 2.3mn &USD 200mn

INTEGRATED AUD
65mn SOLUTION

Syndicated Term Loan Facility

Syndicated Term Facility

Cash & transaction
management FX/Interest rate
management,
hedging and secured financing
Starhill Global REIT

Woodside Petroleum Ltd

Origin Energy

Mandated Lead Arranger andBookrunner

Mandated Lead Arranger andBookrunner

2010

2010

AUD 430mn
430

USD 1
1.0bn
0bn

Syndicated Term Loan Facility

Syndicated Term Facility
Sinochem Hong Kong
(Group) Company Limited
guarranteed by Sinochem
Group
Term Loan Facility Mandated
Lead Arranger & Bookrunner

Qantas Airways Limited

2010

March 2010

Transaction Banking

USD 1.1bn

Mandated Lead Arranger,
Underwriter and Bookrunner

Mandated Lead Arranger, ECA
Arranger and Agent, Facility
Agent and Security Trustee

August 2010

USD 200mn
Financing and working capitalfor palm oil plantation interests
New Britain Palm Oil

Acquisition of David Jones
Building in PerthGBP 75mn
USD 150mn
Bi-lateral Letter of Credit
Facility to meet regulatory
requirements in UK and US
QBE Group

Mandated Lead Arranger

Letter of Credit Facility

2010

2010

November 2010

TRANSACTIONBANKINGC SCASHMANAGEMENT

SGD 223mn

Internet banking platform forregional hub

Sole Provider of Transaction
Banking and Merchant Services
in Australia

CMC Markets Singapore

Vodafone Hutchison
Australia

December 2010

2010

65

Securitisation warehouse –credit card receivables
Card Centre Asset Purchase
Company

September 2010

April 2010

I
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AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED
March 2011

TreasuryANZ’s strong capital ratios are fully reflected whenmeasuredd consistently
i t tl across variousijurisdictions
j i di ti
Sep 09Sep 10Dec 10FSA Dec 10

Core Tier 1(1)

9.0%

8.0%

8.3%

11.3%

Tier 1

10.6%

10.1%

10.3%

13.6%

Total Capital

13.7%

11.9%

11.9%

14.9%

p
Update:pCapitalCapital Agenda:• ANZ’s capital strength reflects ongoing economic
and regulatory uncertainty and the Group’s aim
to maintain flexibility• FY10 net organic Tier-1 generation was +22bps:• Underlying earnings net of dividend +119bps;• RWA growth -48bps, principally market risk;• Profit retention by Insurance and Banking
Associates (-23bps) and software capitalised(-11bps).
• Dec-10,
Dec 10 net Tier-1
Tier 1 generation +20bps:¾ Underlying earnings net of dividend;¾ Decline in RWA mainly in market risk;¾ Offset by increase investment in Chinesebanking associates.

• Continue to be well capitalised and consistent with
“AA” long term credit rating category.
• Manage Basel 3 implementation:¾ Final Basel 3 regulations on capital deductions,minimums and buffers, and Tier-1
Tier 1 and Tier
Tier-2
2
regulations were released in Dec-10.
¾ Engage APRA throughout FY11 on interpretationand implementation of these changes.
¾ Full alignment to proposed Basel 3 guidelines
would result in an increase in Core Tier
Tier-1
1 ratiofrom current levels.
¾ However, APRA have indicated the Basel 3 rules
are likely to be viewed as a minimum standard.

1. ‘Core Tier 1’ = Tier 1 excluding hybrid Tier 1 instruments

Treasury

67

Core Tier
Tier-1
1 level remains strong and well positioned
Capital Position (Core Tier-1 Ratio)
11.30

1 99
1.99
0.80

8.96

0.39

Portfolio growth & mix

19bp decrease

Risk migration

3bp increase

Portfolio data review

4bp increase

Non credit RWA

27bp decrease

0.46

8.05

8.30

1.25

ING

79bp

decrease

RBS

20bp

decrease

Landmark

7bp

decrease

Integration Costs

10bp

decrease

ING Debt Funding

9bp

decrease

Net organic up 34bp
Down 91bp
Sep-09NPAT 1Dividend /
DRP

RWA
2
movement

Other 3

3
Acquisitions

Sep-10Dec-101. Underlying NPAT. 2. Includes impact of movement in Expected Loss versus Collective Provision shortfall, 3. Includes OnePath
Insurance Business, Asian Banking Associates, Capitalised Costs and Software, FX, Net Deferred Tax Assets, Pensions, MTM
gains on own name included in profit

Treasury68

Dec-10 FSA

Tier-1 position reduced during FY10 due to acquisitions
partiallyti ll offset
ff t byb Hybrid
H b id issuanceiCapital Position (Tier-1 Ratio)
13.6
1.99
0.80

10.56

Portfolio growth & mix

0.63
0.48

10.10

0 49
0.49

10.3

1.31

23bp decrease

Risk migration

4bp increase

Portfolio data review

5bp increase

Non credit RWA

34bp decrease

Net organic up 22bp

ING

79bp

RBS

24bp

decreasedecrease

Landmark

9bp

decrease

Integration Costs

10bp

decrease

ING Debt Funding

9bp

decrease

Down 46bp

Sep-09NPAT

1Dividend /
DRP

RWA
2
movement

Other

3

Hybrids

Acquisitions

Sep-10Dec-10Dec-10 FSA

1. Underlying NPAT. 2. Includes impact of movement in Expected Loss versus Collective Provision shortfall. 3. Includes OnePath Insurance
Business, Asian Banking Associates, Capitalised Costs and Software, FX, Net Deferred Tax Assets, Pensions, MTM gains on own name included in
profitTreasury69

Reconciliation of ANZ’s capital position to FSA
Basel 2 guidelines
APRA regulations are more conservative than current FSA regulations, in that APRA requires:• A 20% Loss Given Default floor for mortgages (FSA: 10% floor)• Interest Rate Risk in the Banking Book (IRRBB) included in Pillar I risks (FSA: Pillar II)• Capital deductions for investments in funds management subsidiaries (FSA: RWA assets)• Insurance subsidiaries to be a mixture of Tier 1 and Tier 2 deductions (FSA: transitional regulations permit
Total Capital deductions under certain circumstances)• Expected dividend payments (net of dividend reinvestments) to be deducted from Tier-1 (FSA: no deduction)• Collective Provision to be net of tax when calculating EL v CP deduction (FSA: tax effect difference between EL
and CP on gross basis)• Associates to be a mixture of Tier-1 and Tier-2 deductions (FSA: permits proportional consolidation undercertain circumstances)
Core Tier-1

Tier-1

Total CapitalDec-10 under APRA standards

8.3%

10.3%

11.9%

RWA (Mortgages, IRRBB, etc)

1.2%

1.5%

1.6%

OnePath Funds Management and Life Co. businesses

0.9%

0.9%

0.3%

Interim dividend accrued net of DRP & BOP

0.2%

0.2%

0.2%

Expected Losses v Collective Provision

0.2%

0.2%

0.3%

Insurance subsidiaries (excluding OnePath businesses)

0.2%

0.2%

0.0%

Investment in associates

0.2%

0.2%

0.4%

Other1

0.1%

0.1%

0.2%

Total adjustments

3.0%

3.3%

3.0%

D
Dec-1010 FSA equivalent
i l
ratio
i

11 3%
11.3%

13 6%
13.6%

14 9%
14.9%

1. Other includes Net Deferred Tax Assets, Capitalised Expenses, Deferred Income and roundings.

Treasury70Basel 3 & APRA Regulatory reform - CapitalBasel Committee Announcements

What remains outstanding under B3?

To date, the Basel Committee has announced:• New capital targets and buffers• Timetable and transition rules for implementation ofBasel 3 from 2013 – 2019
• Higher Core Tier-1 capital deductions: insurance
businesses, banking associates, and shortfall of EL v
CP, partly offset by 10/15% threshold allowance for
insurance/banking associates and deferred tax assets• Higher
Hi h RWA chargeshffor market
k t & credit
dit risksi k anddsecuritisation assets• Leverage ratio based on Tier-1 capital

•
•
•
•

Methodology for determining countercyclical buffer
Final requirements for Tier-1 & 2 instruments
Contingent and ‘bailbail-inin’ capital requirements
Capital overlays for systematically important banks

ANZ position under B3 rules:• ANZ’s estimated Core Tier-1 position under full B3 rules isabove the proposed 7.0% min.
• Position will remain uncertain until APRA finalises domestic
rules and re-calibration. Recent indications are that local
rules will at least meet the proposed new global standards• Leverage ratio unlikely to be a binding constraint
Core Tier-1 surplus
over 7.00%

8.0%

9.5%

~9.2%1
7.0%Counter
cyclicalbuffer2
0-2.5%

CapitalBuffer:2.5%

Additional Basel 3
requirements~ -140bps

Full alignment to Basel~ +260bps

Minimumtarget:4.5%

2

1. Subject to change pending final form of regulations
2. Counter-cyclical buffer expected to be comprised of Core Tier-1, Tier-1 Hybrids and contingent capital.

Treasury

71Improved funding profile achieved, stable term debt
iissuance
Stable term funding profile

Funding Composition Improved

Subordinated Debt

Short Term Wholesale
Funding

G
GovernmentG
GuaranteeddTerm Debt < 1 year
Residual Maturity

Senior Debt

30.0

Term Debt > 1 year
Residual Maturity

Issuance

Maturities

25.0
20.0
15.0
10.0
5.0

FY15+

FY14

FY13

FY12

FY 11

FY10

FY11 YTD

Treasury

FY09

FY08

0.0

72

ANZ’s sources of term funding have been furtherdidiversified
ifi d over recentt years
FY07

Domestic
AUD / NZD

26%

30%

Proposed

10%

North America
USD / CAD
UK & Europe
EUR / GBP / CHF

25%
20%

5%
Japan
JPY

39%

PrivatePlacements
Multi-currency

5%

20%
20%

APEA Deposit
Repatriation
Multi-currency
Offshore public benchmarks account forless than half of ANZ’s annual term debt
issuance

Treasury73

Strong Liquidity Position leading into proposed B3changeshBasel III Liquidity Developments

Maintaining post GFC liquidity
position ($b)• Reduction in required core funding of mortgages
from 100% to 65%• Improved treatment of ‘Retail’ and ‘SME’ deposits• Allowance for high grade corporate and coveredbonds as liquid assets• Recognition of jurisdictions (incl. Australia) thathave insufficient qualifying liquid assets.
Allowance for a committed liquidity facility from acentral bank to be used – at a fee• Extended transition period

Impacts

Composition of liquid asset portfolio($66.7b)Class 1

Class 2

Class 3$28.9b$7.3b$30.5bGovernment/ Semi Govt. / Govt.
Guaranteed bank ppaper,
p , NZ cashwith RBNZ, supranational paper

Bank or Corporatepaperpp rated AA or
betterInternal RMBS

Priority of use
Treasury74• Liquidity Coverage Ratio will require additionalliquid assets (where available) to be held resulting
in higher core funding requirements (remaining
deficit meet via central bank facility)• This is primarily driven by non-operational
deposits from Corporates and Financial
Institutions,st tut o s, a
and
ds
short
o t teterm wholesaleo esa e debt
• Australian bank’s no longer discouraged fromholding mortgages on-balance sheet• Given the lack of eligible liquid assets inAustralia, APRA will allow banks to meet their LCR
requirements through a committed liquidity
facilityy at the RBA backed byy repop eligiblegstock• The banks will pay a fee for this facility in linewith cost of holding BIII eligible liquid assets

I
Investort
Discussion
Di
i
Pack
P k

AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED
March 2011

Risk Management

Credit Risk Weighted Assets
Credit RWA Movement FY10 vs. FY09

Total Credit Risk Weighted Assets
A$b

A$b
$b

Acquisitions Impact:

Risk

76

RBS

$4.6b

Landmark$2.3b

Impaired Asset balance has reduced ex
ex-acquisitionsacquisitions
Gross Impaired Assets

Gross Impaired Assets

By typeA$m

By size of exposure

A$m

New Impairedp
Assets
A$m

NPCCD – Non Performing Credit Commitments and Contingencies

Risk

77

By Segment

Watch & Control Lists and Risk Grade Profiles
Watch & Control List by limits(Mar 2009 Watch List index =100)

Group Risk Grade profile byExposure at Default

Index

Top 5 Watch List Industries
By Exposure

By No. Groups

Agriculture Forestry & Fishing
Agriculture,

Agriculture Forestry & Fishing
Agriculture,

MiningProperty Services

Finance & Insurance

Manufacturing

Property Services

Wholesale Trade

Manufacturing

Construction

Watch List - An alert report of customers with characteristics identified which
could result in requirement for closer credit attention
Control List - A report of high risk accounts which may or may not have defaulted

Risk

78

90+ days past due Australia
Australia Cards

Australia Mortgages

90+ day delinquencies

90+ day delinquencies

Australia Commercial
90+ day delinquencies

Risk

79

Australia Mortgages
Dynamic Loan to Valuation Ratio

Portfolio Statistics• All lending is on a full recourse basis

Sep 2010 - 84%

12%

4%

• Approvals require demonstrated
serviceability• ~830,000
830 000 loanslon bookb k• 65% of portfolio owner occupied lending• Average loan size at origination ~$226k
A li ti
Application
Quality
Q lit• Average LVR at origination - 63%

Average Score New Applications• Average dynamic LVR – 46%pmortgages
g g• No subprime• LoDoc 80 loans (80% LVR) make up lessthan circa 1.3% of portfolio and closed to
new flows

Risk

80

New Zealand – Risk Performance
Total Provision Charge

Total Impaired Assets and as % Gross
Lending Assets(NZ$m)(NZ$m)

Risk

90+ Days Arrears

81Commercial Property Credit Exposure
Commercial Property Exposure
by Sector

Commercial Property Exposure
GLA by Region (A$b)
7.5% of Group GLA’s

27.2

Risk

28.2

29.6
26.1

26.7 27.7

82

I
Investort
Discussion
Di
i
Pack
P k

AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED
March 2011

Economics

Exceptionally strong investment outlook over next few
years
ea s
80

$bn
Communication sub-total
Water & sewerage Sub-total
Manufacturing Sub
Sub-total
total
Gas Pipeline sub-total
Electricity Sub-total
Mining Sub-total
Energy Sub-total
Airports Sub-total
Rail sub-total
P t sub-total
Ports
b t t lRoads Sub-total

Uncertainty
U
a y

70
60
50
40
30
20
10
0
2008

2009

2010

2011

2012

2013

2014

Sources: Access Economics and ANZ

Economics

84

2015

2016

2017

2018

2019

2020

The outlook for mining investment has rarely beenstrongert
ABARE Advanced Mining Projects, June 2010

Sources: ABARE

Economics

85

Building activity will slump in 2011 – despite Qld flood
rebuildb ild
New residential
11

Non-residential building(excl. eng. con.)$bn/qtr (real)

14
work done$bn/qtr (real)

13

10

12
11

9

work done

10
9

8

8
7

Approvals

7

6
5

6

Approvals

4
3

5

2

9900 01 02 03 04 05 06 07 08 09 10 119900 01 02 03 04 05 06 07 08 09 10

Sources: ABS, ANZ Economics and Markets Research

Economics

86

Australia heading towards above trend growth andunemployment will continue to fall
Unemployment rate

GDP growth9ann. % change

8potential
economic
6
growth511Grossdomestic
income%Forecasts

10

7

9
8

4

7

3
2

Gross
domestic
product

1
0

6
5

-1

4

-2
-3
3

3
01 02 03 04 05 06 07 08 09 10 11 12 1392

Sources: ABS and ANZ Economics and Markets Research

Economics

87

95

98

01

04

07

10

Record population growth coupled with undersupply
Population growth vs. dwelling completions
450 000
450,000
Annual population
gain (lhs)

400,000

225,000

200,000

350,000
175,000
300,000
250,000

150,000

200,000
125,000
150,000

Annual dwelling completions(rhs)

100,000,

100,000,
76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10

Sources: ABS, ANZ Economics and Markets Research

Economics

88

The housing shortage has already reachedunprecedented levels – and will get much worse!
Housing market balance
400

‘000

360
320
280
240

Underlying demand

200
160

Completions

120
80

Shortage40
0-40Surplus
Su
p us

-80
80

86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
Sources: ABS, ANZ Economics and Markets Research

Economics

89

Recovery in dwelling prices has been broadly-based
125

Price Index

Australian dwelling prices

Bottom 20%
Middle 60%
Top 20%

120

115

110

105

100

95
Jan-09

May-09Sep-09Jan-10Source: RP Data Rismark

Economics

90

May-10

Sep-10Jan-11

Most of the growth in house prices since mid-1980s is
accounted
t d forfbyb rising
i iiincomes & lowerlinterest
i tt rates
t
600

$'000

Actual house prices

$559k

500

$483k

Simulated house
prices if only
incomes growth andinterest rates
mattered

400

300

48%
$289k

200

Simulated house
prices if onlyi
incomes
growththmattered

100

0
86

88

90

92

94

96

98

00

Sources: ABS, RBA, ANZ Economics and Global Markets Research

Economics

91

13%

02

04

06

08

10

Changing composition in those seeking finance approvals
Housing finance approvals (trend value)120$Bn - Annual Rolling Sum
First Home Buyers
Upgraders
Investors

100
80
60
40
20
-

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
Sources: ABS, RBA, ANZ Economics and Markets Research

Economics

92

Distribution of debt rather than the aggregate debt is a
key factor…
factorIncreased household debt has been
directed towards residential
property, not personal consumption

And has been taken up by higher
income households with the capacity
to service

Source: RBA paper “Aspects of Australia’s finances” 15 June 2010

Economics

93Complexion of household debt
• Household debt up but also total
assets held byy households• Debt largely used to acquire assets• Financial assets (i.e. ex housing)
now equivalent to 2
2.75
75 years ofincome up from 1.75 years ofincome in the early 1990’s• Increased debt mostly taken on byhouseholds in the strongest position
to service it (high income quintile)• Households in the top two quintiles
account for 75% of all outstandingdebt• Bottom two income quintiles accountfor 10% of household debt

Source: RBA paper “Aspects of Australia’s finances” 15 June 2010

Economics

94

Vacancies tight (despite FHOB) and will tighten further
i years ahead
in
h d
6

Residential vacancy rate

%

Melb.

5

Long-term
average

4

3

2

Adel

Syd
Syd.

1

Temporary risedue to FHOB
and GFC086 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
Source: REIA, ANZ

Economics

95

Australian house prices
Fundamentals are sound• Nominal house prices and ratio to income elevated• House price to income ratio ignores interest rates / debt servicing• Fundamentals are currently very supportive• Housing shortage worsening• Cyclical upturn underpinned by resources boom and authorities well placed to respondto any future crisis

Household sector well placed• Economy/labour market solid, unemployment falling – few forced sales (historically a••

pre-requisite forf significant
fprice falls)
f ll )
Low delinquencies reflect comfortable debt servicing
Lending standards critical to sustainability

Financial system solid

•
•
•
•

On balance sheet lending = incentives re. sustainable serviceability
Conservative lending = low delinquencies
Fullu recourse
ou s lendingd g cf. US = lessss incentive too defaultd au
Variable interest rate policy works

Economics

96

Conservative lending, supportive policy and strong
economy hashmeantt a very resilient
ili t housinghimarketk t

Source: RBA

Economics

97

Australian house prices have broadly tracked incomessincei2004 (incomes(irisingi istrongly
t
l due
d
to
t termst
off trade)t d )House price to income ratio
7

Index
Australia
USUK
New Zealand

6
5
4
3
2
1
0
81

83

85

87

89

91

93

95

97

Sources: RP Data-Rismark, RBA, ANZ Economics and Markets Research

Economics

98

99

01

03

05

07

09

A structural lowering (halving) of mortgage rates has
significantly improved debt serviceability
Mortgage interest rates
20

%

18
16

Australia

US

UK

NZ

14
12
10
8
6
4

On average, mortgage rates have halved
justifying a near doubling of house price to

2
0
81

83

85

87

89

91

93

95

Sources: ABS, Datastream, ANZ Economics and Markets Research

Economics

99

97

99

01

03

05

07

09

Increase in house price to income ratio almost fully
accounted
t d forfbby th
the halving
h l i
off mortgagetratetMedian house Average household
priceincomeMortgage rate

House price toincome$000's$000
s$000's
$000
s

%

600

120

16

ratio
6

500

100

14

5

12
400

80

300

60

200

40

4

10
8

3

6

2

4
100

20

0

0
1985

2010

0
1985

2010

0
1985

Sources: ABS, RBA, ANZ Economics and Markets Research

Economics

1

2

100

2010

1985

2010

Household incomes and consumption
12

Household disposable income & consumption%

Gross disposable income

Consumption spending

Savings rate

10
8
6
4
2
0
90

92

94

96

98

00

-2
2

04

06

08

10
Forecasts

Source: ANZ, RBA, ABS

Economics

02

101

12

Australia has run a current account deficit for most of thepast 150 years
Current account deficit

Sources: ABS, RBA, Butlin

Economics

102●

The current account deficit is the gap between
national saving and national investment●

That Australia has run a deficit for such a long
period suggests the country has moreinvestment opportunities than it can fund outof domestic saving●

By running such deficits and capitalising onthese investment opportunities, Australia has
been able to grow its economy and labour
market at a much faster rate than if it had
relied solely on domestic saving.
saving Our living
standard will have been considerably lower on
domestic saving alone.

●

A natural consequence of running continual
current account deficits (flow) is a build up in
net foreign liabilities (stock) – from 40% of
GDP in 1989 to 60% of GDP in 2009.

The material in this presentation is general background information about the Bank’s activities current at thedate 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 theinvestment objectives, financial situation or needs of any particular investor. These should beconsidered, with or without professional advice when deciding if an investment is appropriateThis presentation may contain forward-looking statements including statements regarding our intent, belief
or current expectations with respect to ANZ’s business and operations, market conditions, results ofoperations and financial condition, capital adequacy, specific provisions and risk management practices.
When used in this presentation, the words“estimate”, “project”, “intend”, “anticipate”, “believe”, “expect”, “should” and similar expressions, as they
relate to ANZ and its management, are intended to identify forward-looking statements. Readers are
cautioned not to place undue reliance on these forward-looking statements, which speak only as of the datehereof. Such statements constitute “forward-looking statements” for the purposes of the United Statesg
Reform Act of 1995. ANZ does not undertake any
y obligationg
to publiclypy release
Private Securities Litigation
the result of any revisions to these forward-looking statements to reflect events or circumstances after thedate hereof to reflect the occurrence of unanticipated events.
For further information visit

www.anz.com
or contact
Jill Craig
Group General Manager Investor Relations
ph: (613) 8654 7749 fax: (613) 8654 9977

e-mail: jill.craig@anz.com