Corporate Affairs
100 Queen Street
Melbourne Vic 3000
www.anz.com

For Release: 27 April 2005

ANZ interim cash earnings per share up 8.9%
Australia and New Zealand Banking Group Limited (ANZ) today announced an operating profit
after tax of $1,492 million for the half-year ended 31 March 2005, and cash earnings per share of
85.9 cents, up 8.9%*. (All excluding non-core items*.)
The Interim Dividend was increased by 8.5% to 51 cents in line with ANZ’s policy to increase
dividends at the rate of cash earnings per share growth. Total Shareholder return over the year to31 March 2005 was 15%.
ANZ Chief Executive Officer Mr John McFarlane said: “This is a respectable result in a rising rateenvironment and a highly competitive market. We are ahead of market expectations but there ismore to do on the revenue side.
“Eight years ago we set out to change the face of ANZ. The results are now clear. We arecontinuing to move forward with commitment, energy and a sense of confidence in our future.
“In the half, asset and liability growth were very strong across the Group but this was substantially
offset by a decline in margins.
“Advances grew by 14%. Net interest margins fell 13 basis points, as a result of a higher
concentration of lower risk, lower yielding assets, together with intense competition in Institutional
and in New Zealand mortgages, lower Treasury earnings, and a greater reliance on wholesalefunding as a result of higher than expected asset levels.
“The highlight was Australia with earnings up 15% (excluding non-core items) and lending also up
15%. Personal Banking was particularly strong, reflecting the benefits of a distinctive strategy andstrong execution over a number of years. ING Australia also performed well. Institutional,Corporate and Esanda performed broadly in line with plan.
“New Zealand was flat overall but this should be seen in the context of the need to prioritise themajor integration and a very tight-deadline for the regulatory compliance program. The Asia
Pacific business did not have the benefit of one-off earnings in Panin in 2004.
“We continued to invest in our people and in building our franchise, particularly in retail banking inAustralia and New Zealand. Staff numbers rose by 6.7% or 1,861, and this contributed to expense
growth of 8.0%. Our cost to income ratio rose slightly in the half but we would expect this tocontinue to trend downwards.
“Risks were reduced substantially and portfolio quality improved over the year resulting in amodestly lower Economic Loss Provision and a substantially lower Specific Provision”, Mr
McFarlane said.

*Comparisons with first half 2004. Non-core items are significant items and NBNZ incremental integration
costs.
Australia and New Zealand Banking Group Limited ABN 11 005 357 522

Business Commentary
Commenting on each of ANZ’s business divisions, Mr McFarlane said:“In Personal Banking Australia our Mortgages and Deposit Products business each recorded
market share gains. Strong growth was also seen in Regional Australia and in Consumer Finance
where our low rate card product has been very successful.
“During the half, ANZ opened six new retail points of representation including new style retail
outlets, and completed 42 refurbishments. Staff numbers grew by 4%. We would have liked tohave expanded faster but were constrained by the availability of quality branch sites and skilled
staff. Ten retail openings are planned in the second half with a pipeline of openings established
for 2006.
“We have come a long way in Personal Banking and are now among the best performing retailbanks in Australia with market leading products and the highest customer satisfaction of the majorbanks. This gives us the platform to take this business to a new level.
“In Institutional, very strong loan growth was offset by margin pressure, partly reflecting a cyclicalcontraction in global credit spreads. During the half, we restructured our Markets business bymerging the Capital Markets and Foreign Exchange business units, which will deliver improved
efficiency and an enhanced customer proposition. Trade and Transaction Services continued toperform well.
“Corporate performed well financially, despite a modest slowdown in system loan growth in theSME segment. In Small Business, we have employed 54 new relationship managers, as weleverage the success NBNZ has achieved in this segment in New Zealand.
“In New Zealand, a subdued overall result masked stronger performance in NBNZ Retail,Corporate and Rural, offset by subdued performance in ANZ Retail, where fees were reduced tobuild longer term market share, in Institutional and in UDC. Price competition was particularlyintense.
“It was also a period where the priority was on completing integration, and on the major technology
and operational changes required by the Reserve Bank of New Zealand. We are well advancedwith integration and with the demanding regulatory agenda, and are confident they will becompleted in 2005. This will enable management to refocus on building the business andenhancing financial performance, rather than on integration and regulatory matters, and we expect
New Zealand to improve in the second half.
Sustainability“At ANZ, we are committed to improve the sustainability of returns and of building a base for longer
term growth and return. Central to this, are our responsibilities to our broader stakeholder group,
including customers, government, the community, and staff, as well as shareholders.
“In Australia, we have systematically increased market share and are the best regarded majorbank in retail banking. We continue to consolidate our strong position in corporate banking. We
are now the largest bank in New Zealand and in the South-Pacific, and probably have the largest
Australian direct investment into Asia-Pacific.
“We have focussed on advancing our cultural change agenda and the development of enlightenedvalues among our people. ANZ is becoming recognised globally for our achievements in this area.
Staff satisfaction is at 85% and staff engagement improved from 53% to 60%. This is ahead of all
major Australian companies similarly surveyed, and ahead of other major banks. We have also
made good progress on staff safety. We measure ANZ values annually and are pleased that ourtop values across the Group are now ‘customer focus’ and ‘community involvement’.

“Our people are increasingly involved in community activities which was evidenced in theadmirable response by staff to the Boxing Day Tsunami Appeal. This, together with our innovative
Group programs to create greater financial inclusion particularly for low-income earners andindigenous Australians have helped raise the regard in which we are held.
Outlook“The economic environment in Australia, New Zealand and internationally remains supportive ofgood earnings growth in the medium term future. We are likely to see some softening as interest
rates continue to rise and the economic cycle comes off its peak. System credit growth isnevertheless likely to remain double digit for the year, including housing, but it would be prudent toremain cautious about margins.
“Our respectable performance in the first half and a favourable outlook will help underpin a solid
result for the year as a whole,” Mr McFarlane said.

For media enquiries, contact:

For analyst enquiries, contact:

Paul Edwards
Head of Group Media Relations
Tel: 03-9273 6955 or 0409-655 550Email: paul.edwards@anz.com

Stephen Higgins
Head of Investor Relations
Tel: 03-9273 4185 or 0417-379 170
Email: higgins@anz.com