P U R P OS E
2016 SHAREHOLDER REVIEW

2016 SHAREHOLDER REVIEW 1

FINANCIALHIGHLIGHTS

5.9$

BILLION

Delivered a cash profitof $5.9 billion, down 18%
on 2015. Statutory
profit down 24%.

GROUP
NET PROFIT
AFTER TAX
$m

160

10.3%

CENTS PERSHARE

Return on
equity (cash)GROUP
NET PROFIT
AFTER TAX
(CASH 1)$m

GROUP PROFITBEFOREPROVISIONS(CASH 1)$m

Fully franked total
dividend for FY16 of
160 cents per share.

NET LOANSANDADVANCES 2$b

CUSTOMERDEPOSITS$b

11,15910,155

575.9
570.2

7,493

449.6

7,216

444.6
5,889

5,709

-18%

-24%

2016

2015

2016

2015

-9%

2016

2015

1%

2016

2015

1%

2016

2015

1. ANZ adjusts statutory profit for certain non-core items to calculate Cash Profit which measures the results for the ongoing activities of the Group.
2. Net loans and advances at 30 September 2015 include Esanda Dealer Finance assets divested to Macquarie Group Limited in March 2016 half.

ABOUT THIS DOCUMENTThe 2016 Shareholder Review provides an overview of ANZ’s strategic direction and financial and non-financial performance for2016. All information contained within this document is for the year ended 30 September 2016 unless otherwise stated. All figures
are in Australian dollars unless otherwise stated.

2

SUSTAINABILITYHIGHLIGHTS$2.5B

113,071

41.5%

funded and facilitated in
low carbon investments andsustainable solutions

hours volunteeredby employees

women inmanagement1

RANKED420,900+

17%people reached throughour financial education
program MoneyMinded 3

reduction inGreenhouse Gas
emissions in Australia 4

1ST

on the RelationshipStrength Index(Institutional customers)2$89.8M

169,300+336

in community
investment (includes
forgone revenue)5

customers registered
for ANZ goMoneyTM
mobile banking
in the Pacific 6

people employedfrom under
represented groups7

MEMBER OF DJSI WORLD, DJSI ASIA
PACIFIC AND DJSI AUSTRALIAWE ACHIEVED A CDP 2015 CLIMATEDISCLOSURE SCORE OF 100.

1. Includes all employees regardless of leave status but not contractors (which are included in FTE).
2. Peter Lee Associates Large Corporate & Institutional Relationship Banking Survey, Australia/NZ 2016.
3. This is the estimated number of people who have benefited from ANZ’s MoneyMinded financial education program since 2003.
4. From premises energy against a 2013 baseline.
5.	
Figure includes forgone revenue of $69.3 million, being the cost of providing low or fee-free accounts to a range of customers such as government benefit recipients,
not for profit organisations and students.
6. Cumulative total since launch in 2013.
7. Includes Aboriginal and Torres Strait Islander peoples, people with a disability and refugees.

3CHAIRMAN’S REPORTDAVID GONSKI, AC

There is no doubt that mistakes have been made within
the banking sector. At ANZ this has resulted in regulatory
investigations, concerns over the conduct of staff and legal
action involving former customers.

The 2016 financial year has been a year of transition for
ANZ with statutory profit after tax of $5.7 billion, down 24%.
Cash profit (which excludes non-core items from statutory
profit) was $5.9 billion, down 18% due to a $1,077 million
charge primarily related to reshaping the Group to position it
for improved performance in future years. Our core business
continued to perform well during the year, with solid growth
in retail and business lending in Australia and New Zealandand the strategic repositioning of our Institutional businesswell underway.

While it is easy to rationalise these issues as isolated problems
in a very large business, there is more to it than that. Clearly
we need to change.
I believe that large institutions, including major banks suchas ANZ, have been slower than we should have been to open
the windows and to be more transparent, to listen more to theviews of the community and to ensure there is greater focus
on improving the customer experience.

The final dividend of 80 cents brought the total dividend forthe year to 160 cents per share fully franked, a decrease of 12%.
This change reflects a move to gradually consolidate ANZ’s
dividend payout ratio within its historic range of 60-65%
of annual cash profit. Your Board believes this provides
a sustainable and fully franked dividend base for the future.

Realistically, genuine sustained change takes time and eventhen we will not get everything right. But at ANZ, we havebegun the process.
We have formally recognised the Board’s focus on the area ofsustainability by the renaming of the Governance Committee,
which I chair, as the Environmental, Sustainability andGovernance Committee.

The decision to cut the dividend, while difficult, has assisted
ANZ in continuing to strengthen its capital position. Our
Common Equity Tier One capital ratio ended the year at 9.6%,
well positioned ahead of expected increases in regulatory
capital required of Australian banks.

A key focus of our Corporate Sustainability Framework, revised
this year to align with our longer term strategy, is to deliver
fair and responsible banking. For example, we are identifying
specific areas where we want to do better than just meet ourbasic obligations by proactively contributing to our customers’
and the community’s well-being. On farm loans, we haveextended a drought relief package in Australia, including a
moratorium on farm foreclosures in drought declared areas.

REPUTATION
For the most part individual customers like and trust theirown bank, however this year has seen growing community
discontent with big business in Australia and with the banking
industry in particular.
There are many reasons for this discontent, for example
community concern over the impact of globalisation,
income inequality and the effect of disruption bytechnology on traditional jobs.

We also believe we need to increase our community
engagement by supporting community initiatives where webelieve the capabilities of our organisation and people canmake a positive difference and give back to the community.

However, we also need to accept that much of the fault
lies with businesses themselves.

4

ANZ has strong customer franchises in Retail andCommercial banking in Australia and New Zealand anda leading position in Institutional Banking in 34 markets
including a unique presence in Asia.

We have a role to play in enabling the social and economic
participation of people in the communities in which we operate
by improving their financial health and well-being through ourtargeted inclusion programs. For example, ANZ’s MoneyMindedfinancial education program has, since 2003, helped more than
420,000 people build their money management skills. As alarge employer, we also have the capacity to assist those fromunder-represented groups, such as people with a disability
and Indigenous Australians, to enter the workforce anddevelop new skills.

BOARD APPOINTMENTS
We were pleased to announce that Jane Halton AO would join
the ANZ Board on 21 October 2016 following a distinguishedcareer in the Australian public service. Until her recent
retirement, Jane was Secretary of the Australian Department of
Finance. Her experience in finance, insurance, risk management,
information technology, health and ageing and public policy
will be of significant benefit to the Board.
OUTLOOKANZ has strong customer franchises in Retail and Commercial
banking in Australia and New Zealand and a leading positionin Institutional Banking in 34 markets including a uniquepresence in Asia.

I want to assure you though that we do not see this pursuitof better customer and community engagement to be at
the expense of shareholders. On the contrary, we think ourshareholders will benefit because their bank has a longer term
and more sustainable view of the bottom-line benefits. To
be frank, it also makes sense for us to respond and re-build
our community standing ourselves, rather than to ignore ourcritics and invite others to attempt to improve our community
standing for us.

The environment for banking is becoming more difficult.
The sector is facing lower revenue growth and after many yearsof improving credit quality the cycle is seeing debt provisioning
returning to something closer to the long run average.
Consumer expectations are also rising in part driven bya demand for greater transparency and the uptake of newtechnology. There is greater competitive intensity as
non-banks and technology firms target the most profitablesectors of the industry. And there is increased public andregulatory scrutiny.

NEW CHIEF EXECUTIVEThis year saw Shayne Elliott succeed Mike Smith as ANZ’sChief Executive Officer on 1 January 2016. Shayne joined
ANZ in 2009 and has served as CEO of our Institutional Bankand as Chief Financial Officer.

However, your Board believes the management team at
ANZ is well equipped to achieve ANZ’s priority of rapidly
adapting to this environment supported by a strong culture ofcustomer and community service. This will position us strongly
to deliver improved growth and value to shareholders overthe medium term.

Shayne in the view of the Board epitomises the attributes
needed to achieve the goals we have set for our bank. He hasbrought a shift of priorities at ANZ with a focus on building asimpler, better capitalised, better balanced bank that delivers
stronger outcomes for shareholders and for customers.
I take this opportunity of again thanking Mike Smith mostsincerely for his service over eight years as chief executive.

David Gonski, AC
Chairman5

CEO’S REPORTSHAYNE ELLIOTT

We have also simplified our international presence with therecently announced sale of our Retail and Wealth businesses
in five Asian countries. This allows us to focus our resourceson continuing to provide a unique service to our large businessand institutional clients where we are ranked as a top four
corporate bank in Asia and equal number one forrelationship quality.

This year I was honoured to become ANZ’s Chief Executive
Officer and to begin a process of reshaping ANZ’s strategic
focus to create a simpler, better capitalised and more balancedbank that produces better outcomes for customers, forshareholders and the community.
PROGRESS IN 2016
Of course a lot of what ANZ does today is alreadyvery successful.

INDUSTRY CHALLENGES
The banking industry however faces very significant challenges.
Increasingly technology is redefining our business andcustomer expectations while political, social and regulatory
expectations of banks are also rapidly changing.

We have great Retail and Commercial businesses in Australia
and New Zealand. In 2016, we continued to deliver a strong
financial performance based on market share gains and tightcost management with our retail and small business franchises
producing particularly strong results.

Lending demand is now more subdued after a period ofhigh growth and credit costs are increasing both globallyand in Australia albeit from a cyclical low. At the same time,the industry faces stubborn cost growth related to higher
technology and compliance costs.

I am pleased to report that we helped over 168,000 peoplein Australia buy a home in 2016, which saw ANZ become thenation’s third largest home lender. We also increased our
support for small business, providing more than $2 billion in
lending to help Australians start new businesses and to growtheir existing businesses. In New Zealand, we maintained our
position as the largest lender for housing and for businesses.

Regulators are also requiring us to hold significantly more
capital and liquidity to operate our business and to beunquestionably strong.
Left unmanaged, these changes will restrict banks’ ability
to fulfil their core purpose in society - converting savings
into investment and unlocking opportunity for individuals,
families, businesses and communities. ANZ is dealing withthese challenges decisively and evolving rapidly to ensure
we succeed in the new environment that we are facing.

We stepped up the pace of innovation with new initiatives
to compete successfully in the digital age. This included thelaunch of Apple Pay™ in Australia and New Zealand and thelaunch of Android Pay™ in Australia. These market-leading
initiatives contributed to more customers choosing ANZ for
their banking with over 350,000 new customers joining us,
the highest number in many years.

STRATEGIC PRIORITIES AND LEADERSHIP
While we do have to face challenges, our aim is to build ANZ
into a bank that is known for delivering value from innovativeand convenient banking services and for being Australia’s
only truly regional bank: one that delivers consistently strong
financial results for our shareholders with a balance between
growth and return, and the short and long term.

In Institutional Banking after a period of international expansion
and a focus on revenue growth, there was good progress in
improving returns. In doing so we are reshaping Institutional
Banking to be a simpler business focused on servicing regional
trade and capital flows. This has included a significant andongoing reduction in low yielding assets, a tightening of ourtarget market and a major improvement in productivity.

6

ANZ STRATEGIC PRIORITIES
Drive a purpose and values led transformationof the Bank
Create a stronger sense of core purpose, ethics andfairness, investing in leaders who can help sense
and navigate a rapidly changing environment.

 reate a simpler, better capitalised, betterCbalanced and more agile bank
Reduce operating costs and risks by removing productand management complexity, exiting low return andnon-core businesses and reducing our reliance on lowreturning aspects of Institutional Banking in particular.

Build a superior everyday experience for our people
and customers to compete in the digital age
Build more convenient, engaging banking solutions
that simplify the lives of customers and our people.

Focus our efforts on attractive areas where wecan carve out a winning position
Make buying and owning a home or starting, running andgrowing a small business in Australia and New Zealandeasy, and to be the best bank for customers driven by
the movement of goods and capital in our region.

$90 million and we have met or made good progress towards
85% of our 2016 public sustainability targets. We celebrated our
1000th Aboriginal and Torres Strait Islander recruit in Australia
and continued to help refugees gain vital work experiencethrough our support of refugee employment programs. We
passed a milestone with 25,000 people successfully completing
our Saver Plus matched savings program, which assists low
income Australians and New Zealanders to save for their own
or their children’s education. In addition, almost 100,000 new
digital banking customers are now registered for goMoneyTM
in rural communities across the Pacific, many of whom werepreviously unable to access banking services.

To help us deliver against these goals, we made changes
to ANZ’s senior leadership team in January to improve our
focus on our Retail, Commercial and Institutional customers
and on our four strategic priorities.
The new senior team reflects a diverse mix of experienceand new talent from inside and outside ANZ. This included two
external appointments. Maile Carnegie joined us after a careerat Google and Procter & Gamble to take on a new role as Group
Executive Digital Banking, highlighting the critical importanceof technology in enabling us to compete effectively in thedigital age. Michelle Jablko joined ANZ as our Chief Financial
Officer from independent investment bank Greenhill & Co,
where she was Managing Director and Co-Head for Australia.
She was previously at UBS Australia.

OUTLOOK
There is a lot to do at ANZ. The environment is challenging andnaturally expectations are high. We are pleased with the initialprogress that has been made this year in reshaping our strategy
and setting ANZ on a path towards a continuous improvementin customer outcomes and shareholder returns.

COMMUNITY ENGAGEMENT
The current community discussion about the banking sector,
particularly in Australia, shows that we still have much more
to do to shift our culture and evolve the way we do business.

We have a consistent focus on the simplification of our businessand actively rebalancing our portfolio. Importantly, the teamat ANZ is aligned and we have a strong sense of urgency about
the work that still needs to be done. This sets us up well toincrease the pace of execution in 2017 and to deliver a betterbank for customers, for shareholders and for the community.

ANZ needs to better anticipate changing customer andcommunity expectations of banks based on a stronger senseof our core purpose, ethics and fairness. In doing so we want
to be known as an organisation that shapes a future where
people and communities thrive by striving to create a balanced,
sustainable economy in which everyone can take part andbuild a better life.

We could not have achieved this without the hard workand commitment of our people, and I thank them all for
their contribution.

While this is a lofty goal given the starting point of the banking
industry today, we are committed to change and we expect toreport significant progress in 2017.
Our new Corporate Sustainability Framework will support thedelivery of our business strategy. While acknowledging thechallenges ahead, it is worth reflecting on the contributions
ANZ has made this past year to the communities in which we
operate. Our community investment reached approximately

Shayne Elliott
Chief Executive Officer

7

AUSTRALIA1
FRED OHLSSONGROUP EXECUTIVE, AUSTRALIAThe Australia division comprises the Retail and Corporate& Commercial Banking (C&CB) business units.
STRATEGIC PRIORITIES2016 PROGRESS HIGHLIGHTS

Create a simpler, better capitalised and betterbalanced bank:• Reduce operating costs and risks by removing productand management complexity, exiting lower returningand non-core businesses.

• Completed sale of Esanda Dealer Finance.
• Increased operational efficiencies (volume growth +3%,
operations costs down 5% year on year).
• Optimised branch network and head office functions.
• Excluding specified items, cost to income improved from
36.6% to 34.6% year on year.

Focus our efforts in attractive areas:• Provide the best home buying, owning and selling experience.
• Make starting, running and growing a small business easier.

• No. 3 Market Share in Home Loans.
• Invested in streamlining Home Loan origination,
decisioning and fulfilment.
• Launched ANZ Business Ready for start-ups.
• Invested in NSW, which is outperforming other states.

Build a superior everyday experience for our people
and customers:• Build more intuitive, engaging and secure channels,
particularly mobile and digital.
• Automating and digitising to make banking easier forcustomers and staff.

• First Australian bank to launch Apple PayTM and Android PayTM.
• Rolled out a further 36 digital branches across the
network in the year.
• Invested in Banker desktop tools to simplify and reduce
processing times for customer account applications.
• Implementation of multi-channel platform for Australian
Retail banking to support improved customer experience.

FINANCIAL PERFORMANCE ($m)

2016

2015

MOVT %

Operating income

9,408

8,912

6

Operating expenses(3,389)(3,193)

6

Profit before credit impairment and income tax

6,019

5,719

5

Credit impairment charge

(920)

(852)

8

Profit before income tax

5,099

4,867

5

Income tax expense and non-controlling interest(1,526)(1,454)

5

Profit after tax

3,573

3,413

5

Net loans and advances

327,108

315,080

4

Customer deposits

187,640

177,293

6

61%

47%

Contribution to group earnings

1.	All comparisons are Financial Year ended 30 September 2016 compared to Financial Year ended 30 September 2015, not adjusted for FX and on a cash basis unlessotherwise noted.

8

NEW ZEALAND 1
DAVID HISCOGROUP EXECUTIVE AND CHIEF EXECUTIVE OFFICER, NEW ZEALAND

The New Zealand division comprises the
Retail and Commercial business units.
STRATEGIC PRIORITIES2016 PROGRESS HIGHLIGHTS

Focus our efforts in attractive areas:• Continue to grow our customer satisfaction and brandconsideration.
• Provide the best home buying experience.
• Make starting, running and growing a small business easier.
• Continue to leverage our leading position in migrant banking.

• Surpassed 2 million Retail customers for the firsttime in July with strong net customer growth in 2016(17% higher than in 2015).
• Grew our pipeline of future home and business owners
with strong consideration growth in migrants2 (+9 percentage
points) and young adult segments2 (+8 percentage points).
• Continued to invest in service training, helped drivea 9 percentage point uplift in Net Promoter Score2.
• Customers now able to view balances and transfer funds
into any of ANZ’s KiwiSaver schemes though goMoneyTM.

Build a superior everyday experience for our people
and customers:• Building a digital bank with a human touch:- Customer led digital solutions.
- Attract, develop and retain the best staff.

• Now delivering digital improvements around every
six weeks in goMoneyTM.
• First bank in NZ to launch Apple PayTM following the successof goMoneyTM Wallet (first bank in NZ to launch an Android
operating system payment solution).
• Modernised our payment processing and are now exchanging
payment files every 30 minutes from 9am to 10pm ensuring
faster payment and receipt of money for customers.
• Achieved an 83% Employee Engagement score, ourhighest score to date.

FINANCIAL PERFORMANCE (NZ$m)

2016

2015

MOVT %

Operating income

3,318

3,219

3

Operating expenses(1,315)(1,291)

2

Profit before credit impairment and income tax

2,003

1,928

4

Credit impairment charge

(129)

(59)

large

Profit before income tax

1,874

1,869

0

Income tax expense and non-controlling interest

(514)

(516)

0

Profit after tax

1,360

1,353

0

Net loans and advances

113,145

106,747

6

Customer deposits

76,361

71,395

7

22%

17%

Contribution to group earnings3

1.	All comparisons are Financial Year ended 30 September 2016 compared to Financial Year ended 30 September 2015, not adjusted for FX and on a cash basis unlessotherwise noted.
2.	
Camorra Retail Market Monitor (RMM) rolling 6 month score as at September 2016. Young adults are the population between the age 20-34.
3. Calculated on an AUD basis.

9

INSTITUTIONAL1
MARK WHELANGROUP EXECUTIVE, INSTITUTIONAL

The Institutional division services global institutional and businesscustomers across three product sets: Transaction Banking,Loans & Specialised Finance and Markets.
STRATEGIC PRIORITIES2016 PROGRESS HIGHLIGHTS

Create a simpler, better capitalised and betterbalanced bank:• Simplify and streamline the organisation’s structure
by delayering and moving decision-making closer tothe customer.
• Shift from being “everything in every country” to eachcountry having a clear mission. Align in-country service
levels and product capabilities with each market’s uniquecharacteristics.
• Reduce RWAs and lift returns by focusing on priority
customers and high returning products. Align productoffering to the needs of our target customers.

• 14% FTE reduction in 2016, 16% reduction in senior
management, as a result of organisational simplification.
• The focus of the geographic footprint has been sharpened,with differentiated roles for each country to support ourpriority customers and sectors.
• $30 billion reduction in return dilutive RWAs during 2016.

Focus our efforts in attractive areas:• Focus coverage and capital on customers in priority sectors
which are linked to regional flows and home markets where
we can carve out a winning position.

• Progress made to exit economically unprofitable clients
through a combination of asset sales and run-off.
• More efficient coverage model developed to service ourpriority clients and tailored to each country’s role.

Build a superior everyday experience for our people
and customers:• Alignment of Cash Management, Trade and Markets platforms
is underway to make it easier and faster for customers to dobusiness with us.
• Digital transformation plan in place to simplify products
and systems, focus on where we add the most value,and enhance connectivity with clients’ systems and theircustomers and suppliers.

• Enhance customer and staff experience in order to compete
in the digital age.
• Consolidate and harmonise our technology platforms.

FINANCIAL PERFORMANCE ($m)

2016

2015

MOVT %

Operating income

5,175

5,762

-10

Operating expenses(2,935)(2,806)

5

Profit before credit impairment and income tax

2,240

2,956

-24

Credit impairment charge

(741)

(198)

large

Profit before income tax

1,499

2,758

-46

Income tax expense and non-controlling interest

(442)

(791)

-44

Profit after tax

1,057

1,967

-46

Net loans and advances

125,940

142,196-11

Customer deposits

171,122

183,040

-7

18%

27%

Contribution to group earnings

1.	All comparisons are Financial Year ended 30 September 2016 compared to Financial Year ended 30 September 2015, not adjusted for FX and on a cash basis unlessotherwise noted.

10

WEALTH AUSTRALIA1
ALEXIS GEORGEMANAGING DIRECTOR

The Wealth Australia division comprises the Insurance and Funds Managementbusiness units which provide insurance, investment and superannuation solutions
to make it easier for customers to connect with, protect and grow their wealth.
STRATEGIC PRIORITIES2016 PROGRESS HIGHLIGHTS

Create a simpler, better capitalised and betterbalanced bank:• Execute our plan to transition super and investment platforms
to industry leading solutions.

• Entered into an outsource agreement for Wrap platform
administration services, enabling ANZ to launch Grow Wrapto the market, targeted at aligned and open market advisers.
• Rationalised index fund management solutions for $15 billionof Funds Under Management.

Focus our efforts in attractive areas:• Seamless integration of insurance, super and investment
solutions into our bank customers’ journeys (e.g. buying
a home or owning a business).
•R efresh ANZ’s Life Insurance proposition and leverage
scale and position in the market to drive value.

• Continued to expand the Grow by ANZ TM iPad and iPhone app
capability, enabling customers to bring Wealth and banking
together in one place.
• Launched direct life insurance on the Grow by ANZTM app,which allows customers to view, manage and buy all of theirinsurance needs in one place.
• $1.6 billion in Life Insurance in-force premiums, with a No. 3
market share in individual in-force with 13% market share2
and annual growth of 6%.

Build a superior everyday experience for our people
and customers:• Provide advisers tools and access to high quality
platforms to facilitate financial planning and improvecustomers’ experience.

• Launched Grow for Advice, a digital solution for Financial
Planners to improve productivity and automate productionof consistent, scalable insurance advice.
• Ranked No. 1 out of the big four banks for ANZ Financial
Planning productivity in annualised new sales forindividual life risk3.

FINANCIAL PERFORMANCE ($m)

2016

2015

MOVT %Net Funds management and insurance income

1,156

1,178

-2

Other operating income

98

95

3

Total operating income

1,254

1,273

-1

Operating expenses

(796)

(751)

6

Profit before income tax

458

522

-12

Income tax expense and non-controlling interest

(131)

(94)

39

Profit after tax

327

428

-24

Contribution to group earnings

6%

6%

1.	
All comparisons are Financial Year ended 30 September 2016 compared to Financial Year ended 30 September 2015, not adjusted for FX and on a cash basis unlessotherwise noted.
2.	Source: Plan for Life, Individual & Group Risk Premium Inflows, year ended 30 June 2016.
3.	
Source: NMG, Q2, 2016 Bank Channel Risk Distribution Monitor - OnePath.

11

OUR APPROACH
TO SUSTAINABILITY
This year, we revised our Sustainability Framework to ensure
it continues to support ANZ's business strategy and is alignedwith the bank’s Purpose, which is to shape a world where
people and communities thrive.
The Framework has three key areas of focus:

SUSTAINABLE
GROWTH•	Sustainable growth – create opportunities for all of ourcustomers and enable sustainable growth for individuals,
businesses and industry

FAIR ANDRESPONSIBLE
BANKINGSHAPE AWORLD WHEREPEOPLE AND
COMMUNITIESTHRIVE•	Social and economic participation – build strong
customer relationships and connect with our communities,
supporting a diverse and inclusive society in which
everyone can participate

SOCIALAND ECONOMICPARTICIPATION•	Fair and responsible banking – earn trust by keeping
pace with the changing expectations of our stakeholders,maintaining high standards of conduct and understanding
the social and environmental impacts of ourbusiness decisions.
ANZ is committed to the United Nations’ Sustainable
Development Goals, and our Sustainability Framework,
together with public sustainability targets which we set
annually, supports their achievement. This year we achieved
or made good progress against 85% of our targets.

Further detail on ANZ’s approach to sustainability
and performance against 2016 sustainability targets
will be available in the 2016 Corporate Sustainability
Review at anz.com/cs in December 2016.

C A S E S T U DY

SAVER PLUS — MAKOURA
Makoura came to Australia from Guinea where she and her fourchildren had been living in a refugee camp. She describes how
she “grew up in a poor family in Liberia where my father worked
in immigration and my mother looked after the children.
There was not much money and my parents always had to bevery careful, which also made me more careful with money.”
Despite being careful with money, Makoura found that she
would regularly transfer money into a savings account, butthen withdraw it again as new costs would always come up.
Makoura heard about the MoneyMinded financial education
program from a personal banker at her local ANZ branch.
She says, “I decided to join because I really wanted to be betterwith money — to learn how to save and keep it there!”
Makoura credits her new money habits to the MoneyMindedfinancial education workshops that were run by her local
program coordinator from The Smith Family. “The workshops
were very interesting — they really changed the way I lookedat money. I used to waste a lot of money, but now I think a
lot more about what I’m buying and if I really need it or do
I just want it.” Makoura has also passed on her learnings to
her children. “I talk to the children about how you have to becareful with money and if you really want something you haveto save up for it. I give them pocket money for doing jobs andthey know not to waste it.”

12

SUPPORTING THE
TRANSITION
TO A LOW CARBONECONOMYENABLING SOCIAL AND
ECONOMIC PARTICIPATION
THROUGH FINANCIALEDUCATION

As part of our actions to address the impacts of climatechange, we are supporting our customers to transition to a low
carbon economy. In 2015 we set a target to fund and facilitate
at least $10 billion in investment by 2020 in low carbon andsustainable solutions, including renewable energy generation,
green buildings and less emissions intensive manufacturing.
In the first year of this target, we have funded and facilitated$2.5 billion in a diverse range of projects, including efficientirrigation, sustainable residential developments and green starbuildings in Australia, geothermal energy in Indonesia, a green
bond in India and a water treatment plant in the Philippines.

One of the most significant ways in which we contribute to
the communities in which we operate is through our long-term
investment in financial education programs, assisting people
on lower incomes and with low levels of financial literacy
to build their money management skills and savings. In 2016,
we invested over $5 million in our financial inclusion programs.
MoneyMinded is delivered in many of the countries in which
we operate and in 2016 more than 60,900 people received
MoneyMinded training. In addition, over 32,000 lower income
Australians have participated in our matched savings program,
Saver Plus, since the program started in 2013. Program
participants, 86% of whom are women, have saved $17.4 million
to cover their own or their children’s education costs.

C A S E S T U DYSUPPORTING RENEWABLE
ENERGY IN REMOTE
COMMUNITIESIMPROVING CUSTOMERCONFIDENCE

We were approached to provide funding to Energy
Developments Pty Ltd (“EDL”), a clean energy company basedin Queensland. EDL provides low emission and renewableenergy though its network of distributed power generationsites and off-grid energy solutions for remote mine sites, towns
and communities not connected to a regional electricity grid.

We recognise that we have not always met the standards we
set for ourselves or those of our customers and the community.
Together with our Australian banking peers, earlier this year weannounced a range of initiatives aimed at lifting standards inorder to regain customer confidence and trust. We are working
with our industry on significant improvements regarding
remuneration, whistleblowing, complaints handling, customer
hardship and the Banking Code of Practice.

EDL is developing a renewable energy generation projectin the remote town of Coober Pedy in South Australia. The
Coober Pedy Renewable Hybrid project will supply reliable
and secure energy to the town. Power will be supplied
through a combination of wind, solar, battery and othertechnologies, integrating approximately 70% renewableenergy with the existing diesel power supply. Diesel usage
will decline by approximately 70%, with an estimated 130,000
tonnes reduction in greenhouse gas emissions over the life of
the project. The project provides opportunities for local job
creation, community investment and more reliable andsecure energy supply.

During 2016, we have improved the repayment options
available for our customers experiencing financial hardshipand trained frontline employees on empathy and identifying
issues such as family violence and elder abuse. We have also
advocated for a last resort compensation scheme, to be funded
by industry, which will assist victims of poor financial advice.
Our whistleblowing policy has also been strengthened, making
it easier for employees and contractors to raise concerns on
issues such as unethical or dishonest conduct.
We will progress these reforms in the coming year, ensuringthat our culture, systems and processes are aligned tocustomer needs and expectations.

ANZ is funding the company’s existing operations as well as
this new project, which is being co-financed by the Australian
Renewable Energy Agency. During the credit approval process,
EDL’s projects were assessed against ANZ’s Energy Policy
and screening tools to ensure best practice standards
and environmental, social and governance elements
were considered.

13

OUR INTERNATIONALPRESENCE• AUSTRALIA• NEW ZEALAND•	ASIA
Cambodia, China,
Hong Kong, India,
Indonesia, Japan, Laos,
Malaysia, Myanmar,
the Philippines, Singapore,
South Korea, Taiwan,
Thailand, Vietnam•	EUROPE
France, Germany,
United Kingdom•	PACIFIC
American Samoa, Cook
Islands, Fiji, Guam, Kiribati,
New Caledonia, Papua New
Guinea, Samoa, Solomon
Islands, Timor-Leste,
Tonga, Vanuatu• MIDDLE EAST
U.A.E. (Dubai)•	
U NITED STATESOF AMERICAC A S E S T U DY

BRINGING MOBILE BANKINGTO RURAL COMMUNITIES IN THE PACIFIC
Partnering with the Australian Government and the PacificFinancial Inclusion Program, ANZ is bringing digital banking
services to people working in the coconut industry in the
Solomon Islands. Most people in the industry live in rural
areas where it is difficult to access banking services.

According to the Acting Deputy Australian High Commissioner
and Minister Counsellor Dr. Jasmine Cernovs, “Through thisproject, thousands of rural Solomon Islanders will find it easier
to manage, save and grow their incomes better by having
access to simple, fast payments and transfers.”

The almost exclusively cash economy is creating challenges
for buyers and sellers as the coconut industry expands.
We are engaging local producers as goMoney™ cash
merchants and creating mobile banking accounts forindividuals in the community.

This partnership builds on our existing financial inclusion
initiatives in the Pacific to expand access to banking services torural communities. More than 169,300 customers in the Pacificare currently registered for goMoney™, with more than 98,000
being new ANZ customers. We have a target to register a totalof 240,000 customers in the Pacific for goMoney™ by 2017.

14

YOUR EXECUTIVECOMMITEE

SHAYNEELLIOTT
Chief Executive Officer

SUSIE
BABANI
Chief Human
Resources Officer

MAILE
CARNEGIE
Group Executive,
Digital Banking

ALISTAIRCURRIE
Chief Operating Officer

FARHANFARUQUIGroup Executive,
International

DAVID
HISCO
Group Executive andChief Executive Officer,
New Zealand

GRAHAM
HODGES
Deputy Chief
Executive Officer

MICHELLEJABLKO
Chief Financial Officer

FRED
OHLSSONGroup Executive,
Australia

MARK
WHELANGroup Executive,
Institutional

NIGEL
WILLIAMS
Chief Risk Officer

IMPORTANT DATESFOR SHAREHOLDERS 1
MAY 2017

JULY 2017

NOVEMBER 2017

DECEMBER 2017

2nd	Interim Results
Announcement

3rd	Interim Dividend
Payment Date

3rd 	 Annual Results
Announcement

18th 	Final Dividend
Payment Date

8th Interim Dividend
Ex-Date13th	Final Dividend
Ex-Date19th 	Annual General
Meeting (Sydney)

9th	
Interim DividendRecord Date

14th 	Final DividendRecord Date

10th	DRP/BOP/Foreign
Currency Election Date

15th 	DRP/BOP/Foreign
Currency Election Date

1.	
If there are any changes to these dates, the Australian Securities Exchange will be notified accordingly.

15

5 YEAR
FINANCIAL SUMMARY
15,095$MILLION

914,869

80,886$$MILLIONMILLIONNet Interest Margin

Total Assets

Market Capitalisation

Up 3%

Up 3%

Up 3%

FINANCIAL PERFORMANCE 1

2016

2015

2014

20132

2012

Net interest income ($m)

15,095

14,616

13,797

12,772

12,110

Other operating income ($m)

5,482

5,921

5,781

5,619

5,738

Operating expenses ($m)(10,422)(9,378)(8,760)(8,257)(8,519)Profit before provisions and income tax ($m)

10,155

11,15910,818

10,134

9,329

Credit impairment charge ($m)

(1,956)(1,205)(989)(1,197)(1,258)

Income tax expense and non-controlling interest ($m)(2,310)(2,738)(2,712)(2,445)(2,241)

Cash/Underlying profit1 ($m)

5,889

7,216

7,117

6,492

5,830

Adjustments to arrive at statutory profit1 ($m)

(180)

277

154

(182)

(169)

Profit attributable to shareholders of the Company ($m)

5,709

7,493

7,271

6,310

5,661

Assets ($m)

914,869

889,900

772,092

702,995

642,127

Total Shareholders1 Equity ($m)

57 ,927

57,35349,28445,603

41,220Common Equity Tier 12 (%)

9.6

9.6

8.8

8.5

8.0

Common Equity Tier 1 – InternationallyHarmonised Basel 33 (%)

14.5

13.2

12.5

12.7

11.6

Return on average ordinary equity 4, 5 (%)

10.0

14.5

15.8

15.0

14.6

Return on average assets5 (%)

0.6

0.9

1.0

0.9

0.9

Cost to income ratio (%)

50.6

45.7

44.7

44.9

47.7

9.2

(7.5)

5.9

31.5

35.4

80,88678,606

85,23584,45067,255

Dividend (cps)

160

181

178

164

145

Share price – 30 September closing price ($)

27.63

27.08

30.92

30.78

24.75

Points of representation6

1,127

1,229

1,220

1,274

1,337

Number of shareholders

545,256

546,558

498,309468,343438,958

FINANCIAL POSITION

1SHAREHOLDER VALUE - ORDINARY SHARES

Total return to shareholders (%)
Market capitalisation ($m)

OTHER INFORMATION

7

1. Since 1 October 2012, the Group has used cash profit as a measure of the result of the ongoing business activities of the Group enabling shareholders to assess Group anddivisional performance against prior periods and against peer institutions. For 2013-2016 statutory profit has been adjusted for non-core items to arrive at cash profit. Cash profit
is not audited; however, the external auditor has informed the Audit Committee that the adjustments have been determined on a consistent basis across each period presented.
2. Calculated in accordance with APRA Basel 3 requirements for 2012-2016. 3. Internationally Comparable methodology applied for 2016 and 2015 aligns with APRA’s information
paper entitled International Capital Comparison Study, (13 July 2015). Basel Internationally Comparable ratios do not include an estimate of the Basel 1 capital floor requirement.
4. Average ordinary equity excludes non-controlling interests and preference shares. 5. Return on average ordinary equity and average assets have been calculated on a statutory
basis, consistent with the last five years. 6. Includes branches, offices, representative offices and agencies. 7. Excludes employees whose only ANZ shares are held in trust under
ANZ employee share schemes.

16

REMUNERATIONOVERVIEW
The following provides a summary of the remuneration for the
Non-Executive Directors, Chief Executive Officer (CEO) andDisclosed Executives — key management personnel. A more detailed
Remuneration Report is contained in the Annual Report frompage 32 onwards. The report can be accessed via the ANZ website
anz.com/annualreport as well as in hard copy.

NON-EXECUTIVEDIRECTORS REMUNERATIONThe Board is responsible to shareholders for the governance of ANZ.
It approves the strategic direction, financial objectives and appropriate
risk appetite for the organisation and oversees ANZ’s operations andfinancial performance.

D GonskiI AtlasP Dwyer

H Lee

G Liebelt

I Macfarlane

J Macfarlane

Financial Year

NED fees and nonmonetary benefits($)

Superannuation
Guarantee Contribution
($)

Total
remuneration
($)

2016

805,615

19,385825,000

2015

791,085

18,915810,000

2016

297,115

19,385316,500

2015

270,460

18,915289,375

2016

345,615

19,385365,000

2015

336,085

18,915355,000

2016

315,615

19,385335,000

2015

306,085

18,915325,000

2016

338,615

19,385358,000

2015

331,085

18,915350,000

2016

330,115

19,385349,500

2015

323,585

18,915342,500

2016

299,115

19,385318,500

2015

293,585

18,915

312,500

17

AWARDEDREMUNERATION
The following table provides a summary of the remuneration
for the Chief Executive Officer (CEO) and Disclosed Executives.

FINANCIAL YEARS Elliott4

M Carnegie5

A Currie

D Hisco6

Chief Executive
OfficerGroup Executive,
Digital Banking

Chief Operating
OfficerGroup Executive andChief Executive Officer,
New Zealand

2016

2015

2016

2016

2015

2016

2015

1,887,500

1,250,000

260,000

1,100,000

1,100,000

1,186,570

1,181,243

17,11017,037

7,072

17,11016,537472,574

439,790

Cash ($)

775,000

1,300,000

132,000

495,000

1,000,000

725,969

1,162,631

Deferred shares/
share rights ($)

775,000

1,200,000

132,000

495,000

900,000

725,969

1,062,631

Deferred performancerights3,10 ($)

2,100,000

2,100,000

136,000

510,000

750,000

747,968

699,264

Total variable
remuneration ($)

3,650,000

4,600,000

400,000

1,500,000

2,650,000

2,199,905

2,924,526

Total ($)

5,554,610

5,867,037

667,072

2,617,110

3,766,537

3,859,049

4,545,559

Deferred as equity ($)

2,875,000

3,300,000

268,000

1,005,000

1,650,000

1,473,936

1,761,895

Received ($)

2,679,610

2,567,037

399,072

1,612,110

2,116,537

2,385,113

2,783,664

FIXED REMUNERATION

Remuneration ($)
Non monetary benefits1 ($)
VARIABLE REMUNERATION 2TOTAL REMUNERATIONPREVIOUSLY DEFERRED VARIABLE REMUNERATION

Vested during the year ($)
Lapsed/Forfeitedduring the year ($)

1,044,596

1,243,525-

652,679

1,495,732

942,219

1,095,173(3,140,238)(2,317,820)-(1,962,629)-(1,308,419)(1,782,914)

1.	Non monetary benefits generally consist of company-funded benefits such as car parking and taxation services.
2.	The possible range of Annual Variable Remuneration (AVR)/Variable Remuneration (VR) is between 0 and 1.5 times target AVR/VR. The actual AVR/VR received is dependent
on ANZ and individual performance. Anyone who received less than 100% of target forfeited the rest of their AVR/VR entitlement. The minimum value is nil and the maximum
value is what was actually paid.
3.	
Face value at 50% vesting.
4.	S Elliott — Concluded in the Chief Financial Officer role on 31 December 2015 and commenced in the Chief Executive Officer role on 1 January 2016 so 2016 remunerationreflects amounts prorated for partial year service in both roles. The 2016 performance rights relate to the proposed LTVR grant, subject to approval by shareholders at the 2016
Annual General Meeting.
5.	
M Carnegie — Commenced in a Disclosed Executive role on 27 June 2016 so 2016 remuneration reflects partial year service.
6.	D Hisco — 2015 and 2016 remuneration value in the table represents his NZD remuneration converted to AUD (and rounded) at the average exchange rate for the 2015 and2016 financial years respectively. Non monetary benefits include expenses related to his assignment to New Zealand. D Hisco also received shares to the value of $736 in
relation to the Employee Share Offer in December 2015.
7.	
M Jablko — Commenced in a Disclosed Executive role on 18 July 2016 so 2016 remuneration reflects partial year service.
8.	F Ohlsson — Commenced in a Disclosed Executive role on 1 February 2016 so 2016 remuneration reflects amounts prorated for partial year service. Non monetary benefits
include expenses related to his relocation back to Australia from assignment in New Zealand.
9.	M Whelan — Commenced in a Disclosed Executive role on 3 April 2015, and changed Disclosed Executive roles from 1 February 2016. 2015 remuneration reflects amounts
prorated to reflect 6 months service in a Disclosed Executive role.
10.	N Williams — As Chief Risk Officer, N Williams receives deferred share rights instead of performance rights as part of his VR.

18

G Hodges

M Jablko7

F Ohlsson8

M Whelan9

N Williams10

Deputy Chief
Executive Officer

Chief Financial
OfficerGroup Executive,
Australia

Group Executive,
Institutional

Chief Risk
Officer

2016

2015

2016

2016

2016

2015

2016

2015

1,050,000

1,050,000

200,000

660,000

1,166,000

500,000

1,350,000

1,350,000

17,11018,448-30,072

11,6105,625

19,707

21,441

589,050

800,000

132,000

279,873

750,750

500,000

709,500

1,000,000

589,050700,000

132,000

279,873

750,750

400,000

709,500

900,000

606,900

500,000

136,000

288,354773,500

350,000

731,000

750,000

1,785,000

2,000,000

400,000

848,100

2,275,000

1,250,000

2,150,000

2,650,000

2,852,110

3,068,448

600,000

1,538,172

3,452,610

1,755,625

3,519,707

4,021,441

1,195,950

1,200,000

268,000

568,227

1,524,250

750,000

1,440,500

1,650,000

1,656,160

1,868,448

332,000

969,945

1,928,360

1,005,625

2,079,207

2,371,441

554,817646,299--

1,058,937-

1,473,322

1,513,324(1,308,419)(1,782,914)

-

-

-

-

-

-

19

CONTACTS
REGISTERED OFFICE:ANZ Centre Melbourne
Level 9, 833 Collins Street
Docklands VIC 3008 Australia
Telephone: +61 3 9273 5555
Facsimile: +61 3 8542 5252
Company Secretary: Simon Pordage
INVESTOR RELATIONS:
Level 10, 833 Collins Street
Docklands VIC 3008 Australia
Telephone: +61 3 8654 7682
Facsimile: +61 3 8654 8886
Email: investor.relations@anz.com
www.shareholder.anz.com
Group General Manager
Investor Relations: Jill Campbell
CORPORATE AFFAIRS:
Level 10, 833 Collins Street
Docklands VIC 3008 Australia
Telephone: +61 3 8654 3276
Email: gerard.brown@anz.com
Group General Manager
Corporate Affairs: Gerard Brown

SHARE REGISTRAR:

UNITED KINGDOMAUSTRALIA

Computershare Investor Services PLC
The Pavilions Bridgwater Road
Bristol BS99 6ZZ

Computershare Investor Services Pty Ltd
GPO Box 2975
Melbourne VIC 3001
Telephone within Australia: 1800 11 33 99
International Callers: +61 3 9415 4010
Facsimile: +61 3 9473 2500
anzshareregistry@computershare.com.au
Austraclear Services Limited
20 Bridge Street
Sydney NSW 2000
Telephone: +61 8298 8476
LUXEMBOURG

Deutsche Bank Luxembourg S.A.
2, Boulevard Konrad Adenauer
L-1115 Luxembourg
Luxembourg
Telephone: +352 4 21 22 1
NEW ZEALAND

Computershare Investor Services Limited
Private Bag 92119
Auckland 1142

Telephone: +44 870 702 0000
Facsimile: +44 870 703 6101
UNITED STATESCitibank Shareholder Services
P.O. Box 43077 Providence
Rhode Island 02940-3077
Callers outside USA: +1-781-575-4555
Callers within USA (toll free):+1-877-248-4237 (+1-877-CITI-ADR)
Email: citibank@shareholders-online.com
www.citi.com/adr
The Bank of New York Mellon
101 Barclay Street, Floor 7E
New York, NY 10286
Telephone: +1 212 815 4869
Deutsche Bank Trust Company Americas
60 Wall Street, Mailstop NYC 60-2710
New York, NY 10005
Telephone: +1 212 250 2500

Telephone: 0800 174 007
Facsimile: +64 9 488 8787

MORE INFORMATION
General information on ANZ can be obtained from our website: anz.com. Shareholders can visit our
Shareholder Centre at shareholder.anz.com.
ANZ Corporate Governance: For information about ANZ’s approach to Corporate Governance and to obtaincopies of ANZ’s Constitution, Board/Board Committee Charters, Codes of Conduct and Ethics and summaries

shareholder.anz.com
Australia and New Zealand Banking Group
Limited (ANZ) ABN 11 005 357 522.
ANZ’s colour blue is a trade mark of ANZ.

20 2016 SHAREHOLDER REVIEW

of other ANZ policies of interest to shareholders and stakeholders, visit anz.com/governance.
Australia and New Zealand Banking Group Limited ABN 11 005 357 522
This Shareholder Review (Review) has been prepared for Australia and New Zealand Banking Group Limited(“the Company”) together with its subsidiaries which are variously described as: “ANZ”, “Group”, “ANZ Group”,“the Bank”, “us”, “we” or “our”.