UBS FINANCIALSCONFERENCE 2014
AUSTRALIA AND NEW ZEALAND
BANKING GROUP LIMITED25 June 2014Mark Whelan
MD Corporate & Commercial Bank,Australia

ANZ Corporate & Commercial Banking Overview
Corporate & Commercial Bankbusinesses
CorporateBanking

Large private, small listed andmulti-national corporations

Business Banking

Small to medium companies
with turnover $5m-$125m

Regional Business Non-metropolitan and Agri
Bankingcustomers
Small BusinessBanking

Small businesses with turnover<$5m and lending <$1m

Direct revenue
$m

3,000
2,500
2,000
1,500
1,000500

Motor vehicle & equipment
financeEsanda12%

3,5000FY10FY11

Net loans and advances
17%$b$bMar 1014%

Corporate Banking

18%

Small Business Banking

18%

Regional Business Banking

25%

Esanda25%

Business Banking

Mar 14

FY131H14Deposits
45%

6556

FY1232

Mar 104711%

Regional Business Banking

28%

Business Banking

61%

Small Business Banking

Mar 142The current environment is challenging with subdued
lending conditions
Business confidence has
improved recently…

… however this is yet totranslate into demand forbusiness credit.

Despite this we haveincreased our customer
numbers…

System Lending Growth2 &System Undrawn Limits3# Customers

Business Confidence1
Average
125120%

System Lending Growth (LHS)

5System Undrawn Limits (RHS)

52504846444240431152110

10105
Mar Sep Mar Sep Mar Apr May
12 12 13 13 14 14 14Sep Dec Mar Jun Sep Dec Mar
12 12 13 13 13 13 14… achieved strong sales in a challenging
environment…
Net Loans and Advances$b63.2

Sales

Feb 13

Feb 14… and grown in our target segments
Net Loans and Advances$b22.8Mar 1326k$b12.97.7

0.2

PartialPaydowns

FullPaydowns

InstoUp-Tier

65.2

63.2

Mar 14Mar 131.60.1

0.6

65.2
0.2

0.1

SmallBus.
Reg.
Corp. Esanda Mar 14
Bus. Banking Bus. Banking
BankingBanking

Note: 1. Roy Morgan Business Single Source, Business Confidence, average for the preceding 12 months as at May 2014; 2. RBA Financial Aggregates,Total Business Credit, Seasonally Adjusted, September 2012 to March 2014; 3. ABS Lending Finance, Australia, 5671.0, Commercial FinanceCommitments not drawn at end of month, September 2012 to March 2014

3Our strategy will deliver a sustainable capability-ledcustomer proposition that positions ANZ for growth• Reshaping banker roles to increase customer

access and the amount of time bankers spend withcustomers

Enhance
CustomerExperience• Developing our people’s capabilities andknowledge, with emphasis on embedding a moreinsights-based sales approach• Building on our lead in mobile and digital toprovide greater access to market leading products andfurther enable self-service

Improve
BankerCapabilities• Simplifying our products and processes toimprove the customer experience and drive
productivity• Leveraging ANZ’s connectivity and footprint toprovide seamless access to super regional
opportunities4

We have made significant progress executing this strategy
through our Banking on Australia transformation agenda
20%

Increase in time frontline C&CB Banker‟sspend with customers1

24/7

Servicing availability via Business Response
Team (BRT) with 100k requests actioned2

35k

Training hours completed with specific focus
on credit, sales and super regional

32%

Frontline C&CB staff with experience in key
Asian markets

43%

ANZ FastPayTM transactions3

Reshaping banker roles

Developing our people’s
capabilities

Building on our lead in mobile anddigital

Simplifying our products andprocesses

Leveraging ANZ’s connectivity andfootprint

36k

Digital C&CB A-Z Reviews2 conducted via iPad17

Products offered on OneSwitch4

13Products decommissioned

120%#1Growth in Cross Border Referrals fromAustralia to Asia5
Can service my business needs in Australia,
NZ & Asia6

Note: 1. Estimated time being freed up in the frontline by removing activities and streamlining processes, compared to October 2012 baseline; 2. Eightmonths to May 2014; 3. Represents compound monthly growth in the number of transactions processed on ANZ FastPay TM since launch in October
2012; 4. OneSwitch is a process that enables customers to open accounts with one signature and one form within one week; 5. Five months toFebruary 2014 vs. PCP; 6. DBM Business Financial Services Monitor, ranked against other „Big 4‟ banks, data sourced from majority of businesses withturnover of $1-40m in the three months to February 2014

5

C&CB has delivered good outcomes while driving crosssell revenue and FUM growth
Customer share1

Cross sell revenue3

C&CB has maintained its customer share in a
subdued environment
Peer 1
Peer 2Peer 3
ANZ
101.0

C&CB has delivered further value by focusing oncustomer’s holistic needs
$m33%
1,500

97.0

1,00093.0

50089.0
Sep 12Jan 13May 13

Sep 13

Jan 140FY10FY11FY12FY13

1H14Customer satisfaction2Cross sell FUM3

C&CB’s customer value proposition has delivered aleading outcome
Peer 1
Peer 2Peer 3
ANZ

C&CB manages the whole customer relationship
29%

60

108

40

104

2010096
Sep 12$b0Mar 13

Sep 13

Mar 14Mar 10Mar 14

Note: 1. DBM Business Financial Services Monitor, rolling 12 month average. Results based on most businesses with annual turnover <$100m with any businessproduct. Indexed Customer Share ranked against other „Big 4‟ banks, where September 2012 is designated as 100; 2. DBM Business Financial Services Monitor,rolling 6 month average. Customer Satisfaction based on MFI (main financial institution) customers. Results based on most businesses with annual turnover<$100m. Indexed MFI Customer Satisfaction ranked against other „Big 4‟ banks, where September 2012 is designated as 100 3. Cross Sell Revenues and FUM
consists of Retail, Institutional and Wealth revenue/FUM generated by C&CB Bankers. Not all products (e.g. Merchants) may have associated FUM

6Early investment in Small Business is now paying
dividends for C&CB
$1.2b

Lent to new Australian small
business as part of our $2 billion
pledge16%

Small Business lending

10%

Small Business customer deposits

SBB lending book composition by sector
Exposure at Default by industry sector (%)(as at Mar 14)

Net loans and advances & deposits

SBB a key driver of cross sell

Net loans and advances incl. acceptances
Customer deposits

$b

7%

Small Business deposit sales
through the branch
9.8



28.8

27.8

26.1
10.6

11.3

SBB a key source of liquidity –Funding ratio2 (Mar 14) of 267%
Mar 13

Sep 13Mar 14

Note: 1. All figures March 2014 vs March 2013, unless otherwise stated; 2. Funding ratio is the ratio of customer deposits to loans7We continue to invest in high growth opportunities
across our business to drive future outperformance
Small Business

New South Wales

Continued investment in this attractive,
higher growth segment

Investing to build further scale in a large
and growing market• Strong levels of lending and deposit growth• Largest Australian state by Gross State
Product1• Higher return with significant ANZ wide
„whole of wallet‟ opportunities• Historically under-penetrated, relative toother States

Emerging Corporate

Priority Industries

Enhancing our offering in this key market
segment

Building capability across higher growthindustries• Significant cross-over segment between
Business Banking and Corporate• Increases exposure to higher growthindustries (e.g., Health & Professionals)• Leverages existing strength in Corporate
and pre-eminent Institutional productcapabilities• Builds on specialist knowledge and insights
capability

Note: 1. ABS 5220.0 - Australian National Accounts: State Accounts, 2012-13, Gross State product (GSP) at June 2013; NSW GSP makes up 31% of
the National GSP

8C&CB oversees a diversified and well managed portfoliowith improving loan quality
Diversified by business mix

Improved portfolio performance

Net Lending Assets ($b, %)Net Impaired Assets and Gross Lending Assets$bCorporate Banking

14%

18%

Gross Lending Assets (RHS)
Net Impaired Assets as % GLA (LHS)

70

1.80%

65

1.30%

Business Banking

600.80%

Small Business Banking55

Esanda25%$65b25%18%

Regional Business Banking

0.30%

Mar 12

Continued improvement in loan quality
Customer Credit Rating (CCR)1
Existing portfolio
New to bank customer

Weaker

10.0
6.0

Sep 12

Mar 13

Sep 13

Mar 14

Prudent risk controls• Loan sizes of <$1m approved via provenautomated credit scoring technology• Prudent lending limits set for sole sign-off• Sole sign-off subject to hindsight review
5.5• Dual sign-off required, for higher value or
non-standard lending

Mar 13

Sep 13

Mar 145.00 Stronger• Quality Assurance testing on completed files

Note: 1. New to Bank Customers identified as new lending customers in the 6 months prior, Customer Credit Rating (CCR) based on customer limits inC&CB excluding Esanda

9The material in this presentation is general background information about the Bank‟s activities
current at the date 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 the investment objectives, financial situation or needs ofany particular investor. These should be considered, with or without professional advice whendeciding if an investment is appropriateThis presentation may contain forward-looking statements including statements regarding ourintent, belief or current expectations with respect to ANZ‟s business and operations, marketconditions, results of operations and financial condition, capital adequacy, specific provisions andrisk 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 UnitedStates Private Securities Litigation Reform Act of 1995. ANZ does not undertake any obligation to
publicly release the result of any revisions to these forward-looking statements to reflect events orcircumstances after the date 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 8886

e-mail: jill.craig@anz.com