18 December 2008

Michael Smith
Chief Executive Officer

Queensland - one of Australia’s strongest growing states
GSP & Household Disposable income
876543210

Annual change %3Population growth
Annual change %210QldNSW

Vic

AustQLD

NSW

Vic

Gross State Product10 year ave

Household disposable income

Year to Mar-08

Source: ANZ Economics

Aust3

Perspective on the current environment

Global financial crisis

Impact on our regions

Building a stronger super regional bank4

2008 has been an extraordinary year

• 25 banks in the US have failed

Cumulative global losses fromthe credit crisis$bn918Insurers & GSEs

• 230,000 job losses in banking

Banks & Brokers

983

670504• Job losses could reach 500,000282• Financial institutions have written
off close to US$1 trillion

766

Prior Sep Dec Mar Jun Sep Dec
2007
Source: ANZ Economics, Bloomberg

2008
5

Financial sector turmoil being felt in the real economy
Global economic growth (GDP)
10forecast% change from earlier year

864
20

Year

70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 0
'Advanced' economies
Source: ANZ Economics

24

6 8 10'Developing' economies
6A record year for ANZ term wholesale funding
9$bn2008 wholesale funding program
Finalisationof government
guarantee

630
Sep-07

Dec-07

Public Senior

Mar-08Jun-08

Private Placements

Sep-08Dec-08Subordinated Debt
7

Signs of significant slowing in domestic markets

Australia

New Zealand

2008

2009F

2008

2009F

GDP

3.1%

0.5%

1.7%

-1.1%

Unemployment

4.2%

5.7%

4.2%

5.7%

AUD/USD

0.8%

0.6%
1.2%

1.1%

AUD/NZD

Source: ANZ Economics, Bloomberg

China &India
forecast togrow 5 to8% in 20098Significant impacts on equities market
ANZ and major Australian peer bank average(share price movement %)110 % movement*
1009080
7060
Major Aus bank peer average
5040
Dec-07
Feb-08Apr-08Jun-08Source: Reuters*Rebased index 17/12/2007

ANZ

Aug-08

Oct-08Dec-089Benefits already being seen from ANZ’s strong position#Household deposit growth##

Traditional Banking Customers(12 month growth from Oct ‘07)

30%
25%

8%ANZ

System

20%

6%
4%

15%
10%ANZ
Peer Average*
Regional Average^

2%5%0%0%
Oct- Dec- Feb- Apr- Jun- Aug- Oct07
0708080808
08Oct- Dec- Feb- Apr- Jun- Aug- Oct07 07 08 08 08 08 08# Source: APRA statistics## Source: Roy Morgan Single Source using 12 monthly moving averages, Traditional Banking is defined as Transactions, Deposits, Mortgages, Personal/Other Loans and Credit Cards,*Peer Average includes CBA, NAB, and Westpac, ^ Regional Average includes St.George, Bendigo Bank, BankWest, Adelaide Bank, Bank of Queensland, and Suncorp

10Super Regional strategy

TRANSFORM
OUT PERFORMRESTORE• Institutional• Quality on par with
Global leaders• Increase revenue growthfaster than cost growth• Superior customerexperience• Drive Asia profit• Unlock franchise value

1 to 2 years

2 to 5 years

Create a leading
Super RegionalBank5+ years

11Changing trends recognised in 2007
Major trends changing the world for banks
and financial institutions
Globalisation of capital

Consolidation

Convergence

Technology

Sustainability
AGM 2007
12

ANZ has strengthened its balance sheet
Strengthened capital Strengthened collectiveposition (Tier 1 ratio)
provision balance

Significant increasein Liquidity ($bn)#(CP/CRWA )
7.7%
6.8%

8.4%

6.7%

1.13%
0.81%

0.73%
55.0
34.7

20.1

Sep06

Sep07

Sep
Sep08 08 Pro*FormaSep 06

Sep 07

Sep 08

Sep-07

Sep-08Current

Cash and other liquid assets
Liquidity portfolio* Including 2008 final dividend underwrite#2008 Risk Weighted Assets calculated using Basel II methodology,; prior period numbers reflect Basel I methodology

13

New business model driving the business forward
Australia

New Zealand

Asia PacificInstitutional• Retail• Retail• Retail• Institutions• Commercial• Commercial• Commercial• CorporatesWealth Management

14

Underlying business is performing well
Full year revenue growth
11.5%

4.3%

Reported revenue
Underlyinggrowthrevenue growth*

Australia• amongst best performing retail banks
Asia Pacific• 52% increase in Cash Profit in 2008
New Zealand• maintained market share
Institutional• good performance in Working Capitaland Business Banking* Adjusting for Credit Risk on Derivatives and structured transaction (matching offsetting tax credit)

15

Higher provisions impacted results
Collective provisions

Individual provisions
$m

1,130

$m
818

Economic cycle
adjustment andconcentration risk43883

FY07

FY08

FY07

FY08

16

Building our business for the future
9 reasonable result in difficult circumstances
9 maintained the dividend
9 significantly improved balance sheet strength
9 right strategy, taking the right actions

17

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 becomplete. 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 of any particular investor.
These should be considered, with or without professional advice when deciding if an investment isappropriate.
For further information visit
www.anz.com
or contact
Jill Craig
Group General Manager Investor Relations
ph: (613) 9273 4185

fax: (613) 9273 4899

e-mail: jill.craig@anz.com

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