TOGETHER

2014 SHAREHOLDER REVIEWTOGETHER

2014 SHAREHOLDER REVIEWMOBILE
Wherever you see this icon, it’s one of our many mobile
solutions, bringing banking to wherever customers are.
TABLET
Taking business, banking and transactions away from thedesk with more control than ever before.
ONLINEAll of our online services, making sure our community has
access to the information it needs, whenever it’s needed.
EFTPOSElectronic retail transactions are now more convenient
than ever before.
SPECIALISTOur mobile lending force understands the importance of
face-to-face communication and the value of convenience.

ACKNOWLEDGMENTS

ABOUT THIS DOCUMENT

Thanks to all the ANZ staff who
volunteered to take part in thephotoshoots for this review. Their
cooperation and willingness to takepart (especially considering the very
early mornings) are great examplesof the commitment our team has tothe spirit of collaboration.
Those who came together were:
Sharma de Abrew, Adam Atawneh,
Phoebe Bao, Doung Bui, John Cha,
Em Coy, Selasi Dorcoo, Ashish Jeena,
Dhavinder Jeet Sidhu, Darren Lim,
Elsa Yim, Lynn Lim, Nicole Kelly,
Nicole Kuol, Nasrin Laila,
Elisa Li-causi, Bob Liu, Marg McKay,
Cheryl Miller, Sarah Ng,
Darien Nurhadi, Beth Patino,
Yolande Powrie, Ueidiane Reis,
Natalie Robbins, Gus Robertson,
Mei Ling Sampson, Kevin Sharkie,
Chris Slade, Didar Singh,
Reg Starling, Julie Toop, Melanie
Treloar, Rost Vashevnik.
Also thanks to John Kakavelis at
Aix Cafe, 24 Centre Place, Melbourne.

The 2014 Shareholder Review provides an overview of ANZ’s strategic
direction and financial and non-financial performance for 2014. Our work
promoting money management skills among disadvantaged groups
remains our priority community investment focus.
All information contained within this document is for the year ended
30 September 2014 unless otherwise stated. All figures are in Australian
dollars unless otherwise stated.

2 2014 SHAREHOLDER REVIEWMORE 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 obtain copies of ANZ’s Constitution, Board/
Board Committee Charters, Shareholder Charter, Codes of Conduct andEthics and summaries 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”.

9%

DIVIDEND INCREASE

178c PER SHARE
Total dividend of 178c per share,
up 9% on FY2013.

CONTENTS
THE YEAR
IN REVIEW

BOARD
REPORTS

4	Supporting
Anzac
Centenary
Fund

10	Board of
Directors &Chairman’s
Report5	Together

12	Management
Board &
CEO’s Report6	Strategy &Performance8	Financial &Non-Financial
Highlights

DIVISIONREPORTS
14 Australia
16	International& Institutional
Banking
18 New Zealand
20 Global Wealth22	Global
Technology,
Services &Operations

CORPORATESUSTAINABILITYFINANCIAL
PAGES

24	Sustainable
Development

32	Five-Year
Summary

26	Diversity& Inclusion

34	Non-Executive
Directors
Remuneration

28	Financial
Inclusion &Capability

CONTACTS& DATES38	Contacts& Important
Dates

36	Non-Statutory
Remuneration

30	Licence
to Operate

CONTENTS 3OUR SHARED HISTORY
During World War I, ANZ understood theimportance of supporting Anzac and what has
become known as the Anzac Spirit.
ANZ made sure that staff who volunteered forthe military did not take on afinancial burden in addition
to risking their lives. The bankadded to former employees’
military income to match thatof their employment underthe bank.
Women were first employedby the bank during this period,
filling the gaps left by the men
who enlisted.
WWI remains a big part of ANZ’s history.
Honour boards commemorating the dead areon continuous display at our flagship Collins

Street branch, reminding us of the sacrifices
made to protect the region.
We are very proud that ANZ is in a position tokeep the past and present together over theperiod of the Anzac Centenary.
ANZ will be providing $10 million
to the Anzac Centenary Public
Fund commemorating 100
years of Anzac and supporting
a number of national Anzac
Centenary projects, amongst
which is the refurbishment of
the Shrine of Remembrance
in Melbourne.
These links to our heritage connect us to who
we are and shape the way we progress.

These links to ourheritage connect
us to who we are
and shape theway we progress.

4 2014 SHAREHOLDER REVIEW» ANZ will havedisplays andinformation available
for our shareholders
to view at our Annual
General Meetingvenue (Melbourne
Convention Centre)
prior to and following
the meeting on 18
December 2014.
Photographs of the
day will be available
on shareholder.anz.
com. The displays willbe travelling aroundthe country in 2015.

TOGETHER

2014 IN REVIEW"Together" is a word that means a lot more to
us than simply a partnership. It’s more than justworking with our customers to help them save,build their businesses and embark on
new ventures.

To us, "together" means
the support that we provide
to make that work easier.
To us, "together" means the support that we
provide to make that work easier. It’s about
being part of the team that the people andorganisations we work with can rely on to provide
better ways to save, build or innovate. It’s helping

them to be more efficient and spend more timeon what’s important to them.
This year we focused on the roles ANZ plays as
facilitators, connectors and expediters. In thisreview we’re developing a social perspectiveon the bank’s actions and the flow-on effects
to individuals, businesses and governments
throughout the region.
The improvements might have come fromour new Smart ATMs – saving people time at a
branch – or our international transfer systems,
which are designed to make sure money getswhere it needs to be faster than ever before.
ANZ’s vision of social banking is to makedistance more manageable and put more timein the hands of people who need it most.

THE YEAR IN REVIEW 5

ANZ IS EXECUTING
A FOCUSED STRATEGYTO BUILD THE BESTCONNECTED, MOSTRESPECTED BANK ACROSS
THE ASIA PACIFIC REGION.
GOAL

ACHIEVEMENTS

ANZ is executing a focused strategy to build
the best connected, most respected bankacross the Asia Pacific region. This goal isbased on our belief that the future of ourhome markets of Australia and New Zealandare increasingly linked to the fast growing
region of Asia through trade, capital andwealth flows. We also believe that people
want a bank that understands their specificneeds, and increasingly can meet these needs
in more than one market through a variety ofmeans. By building a Super Regional bank, ANZ

We continue to build stronger positions
in our home markets of Australia and New
Zealand. This year another 106,000 retail andcommercial clients joined our bank in Australia,
contributing to solid market share gains,while our focus on serving ANZ customers
sees us protecting more customers thanever through our Wealth business. Customer
satisfaction improved in all our segments,
including Institutional where we regained thenumber one Lead Bank position as measured
by the Peter Lee survey1. In New Zealand, we
saw further productivity benefits from our
Simplification program, along with market
share gains in key cities and an improvementin customer satisfaction.
Our Institutional business in Asia continues
to grow quickly, focused on the fast-growing
cross-border trade and capital flows, and istoday ranked as the fourth largest regional
Institutional bank by the Greenwich Asia
survey2. Revenue has consistently grown atdouble-digit rates, with a compound annual
growth rate of 23% over the past five years.
Cross-border revenues grew at 9% for theyear, and profit was up 25%. The Division’s
revenue mix has diversified substantially, with

By building a Super Regional bank,
ANZ can better serve our customers
and achieve superior financial returns
over the longer term.
can better serve our customers and achieve
superior financial returns over the longer term.
ANZ’s aspiration is to have 25 to 30% of ANZGroup profit after tax sourced from Asia Pacific,
Europe and America revenues by 2017. ANZ has
made good progress towards this goal.
1
2

6 2014 SHAREHOLDER REVIEWPeter Lee Associates 2014 Large Corporate and Institutional Relationship Banking survey, Australia
Greenwich Associates 2013 Asian Large Corporate Banking StudySTRATEGY &PERFORMANCEPROGRESSING
more significant contributions from Foreign
Exchange, Trade and Cash Management andDebt Capital Markets.
Our operations strategy is delivering economies
of scale, speed to market and a stronger control
environment, resulting in better quality, lower
unit costs, and lower risk. As a consequenceof our approach, this year we again delivered
positive ‘operating jaws’, with Operations costs
down 3% while absorbing an 8% increase intransaction volumes.
More generally, our business risk profile
continues to improve as we shift to investmentgrade clients and shorter tenor Trade Finance,and greater earnings diversification acrossproducts and geographies. Combined with abenign risk environment, these improvements
saw a further fall in provision charges and theloan loss rate across the Bank.
Finally, we focused on strengthening thealignment between business, operations,
support and technology through the creationof our Global Operations and Technology
business, and invested over $46.3 million intraining and development for our staff.

We are committed to delivering above
peer earnings growth with strong capitaland expense disciplines, targeting further
productivity improvements over the next
three years while increasing return on equity

Our operations strategy isdelivering economies of scale,speed to market and a stronger
control environment.
from current levels. This will be achieved bystrengthening our position in Australia and
New Zealand, growing profitably in Asia andsharing common technology, processes,
products and services that are designed withour customers in mind.

THE YEAR IN REVIEW 7

39.2

%1

FINANCIALHIGHLIGHTS

7.
1
BILLIONWOMEN IN
MANAGEMENT

$
6,310
2013

7,271
2014

6,492
2013

15%
Group net profit
after tax $m

7,117
2014

521.8
2014
483.3
2013

7%

Group net profit
after tax (cash#) $m

6

 elivered a record cash profitDof $7.1 billion, up 10% on 2013
Statutory profit also up 15%

10,8182014
10,134
2013

10%

TOTAL
SHAREHOLDER
RETURN OF%

RECORD
CASH PROFITGroup profit before
provisions and tax(cash#) $m

RETURNON EQUITY(CASH#)
%

15.4

403.7
2014
368.8
2013

8%
Net loans andadvances $b

178

9%Customer
deposits $b

CENTS PER SHAREFULLY FRANKED TOTAL DIVIDENDFOR FY14 TO 178 CENTS PER SHAREANZ adjusts statutory profit for certain non-core items to calculate Cash Profit which measures the result for the ongoing activities of the Group.

#

8 2014 SHAREHOLDER REVIEW
6 | 2014 SHAREHOLDER REVIEWHIGHLIGHTSSUMMARY

NON-FINANCIALHIGHLIGHTS

50,32873

MORE THAN

294,000
PEOPLE REACHEDTHROUGH OUR
FINANCIAL EDUCATIONPROGRAMMONEYMINDED2%EMPLOYEES3

EMPLOYEEENGAGEMENT
SCORE

75.6 $835 101,801 5%
HOURS

MILLIONMILLIONIN COMMUNITYINVESTMENT4

IN CURRENTHOURSPROJECT FINANCE VOLUNTEEREDCOMMITMENTS
BY EMPLOYEESIN RENEWABLE
ENERGY PROJECTS5

Member of DJSIWorld, DJSI Asia
Pacific and
DJSI Australia

8.7

%

$

REDUCTION
IN GLOBAL
GREENHOUSEGAS EMISSIONSREDUCTIONIN CUSTOMERCOMPLAINTS6

We achieved a CDP 2014
climate disclosure scoreof 98 out of 100.

Includes all employees regardless of leave status and includes casuals but not contractors (which are included in FTE).
This is the approximate number of people who have benefited from ANZ’s MoneyMinded financial education program since 2003.
Full time equivalent employees.
4Figure includes foregone revenue of $58 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.
5
Project Finance commitments refers to ANZ's lending commitments as at 30 September 2014 to renewable energy projects made only on a non or limited
recourse basis to the ultimate sponsors. This figure does not include ANZ lending made to renewable energy projects that may be funded under corporate
debt facilities or through other lending products.
6
In Australia, Retail and Commercial complaints.
1
2
3

THE YEAR IN REVIEW 92014 SHAREHOLDER REVIEW | 7

4.9
BILLION$TO OURSHAREHOLDERSA MESSAGE FROMDAVID GONSKI, AC
I am pleased to report that ANZ’s statutory profit after tax
for the 2014 financial year was $7.3 billion, up 15%. Excluding
non-core items, cash profit was $7.1 billion, up 10%.
The final dividend of 95 cents was up 14% on the Interim
Dividend bringing the total dividend for the year to 178 cents
per share fully franked, an increase of 9%. This will see us pay
out a record $4.9 billion to shareholders for this year.
ANZ remains strongly capitalised and the quality of ourbalance sheet continues to improve. Our common equity
tier one capital ratio ended the year at 8.8% well positioned
ahead of the new capital levels currently required of Domestic
Systemically Important Banks.
REGULATIONThe Financial System Inquiry in Australia has created avigorous discussion about regulation and in particular about
capital and loss absorbency. Significant steps have alreadybeen taken to strengthen banking since the global financial
crisis and this has built on what was already a very sound, well
regulated and well-supervised financial system in Australia.
While outcomes from the inquiry are not yet clear, we
believe recommendations that combine strong regulatory
and supervisory frameworks and market-based disciplines
will deliver the best balance between financial stability andeconomic efficiency.
Everyone benefits from a well-capitalised, well-managedbanking system – consumers, shareholders and taxpayers.
There is however a real cost to the economy of regulationand policy settings that are too conservative and it is not inAustralia's best interests for the financial system to become
globally uncompetitive.
BOARD CHANGES
Two long standing directors David Meiklejohn and Greg Clark
retired at the Annual General Meeting in December 2013 aspart of a succession plan that previously saw Paula Dwyer
and Graeme Liebelt join the board. Both David and Greg gavesignificant service to ANZ over many years and I thank themfor their contribution.
I was pleased to re-join the ANZ board this year and to succeed
John Morshel as your Chairman in May. John made an enormous
contribution to ANZ as a director and as Chairman, and on

10 2014 SHAREHOLDER REVIEW

behalf of shareholders and all at ANZ,
I thank him for his outstanding service.
We also made two other appointments tothe board as part of our succession process.
John (JT) Macfarlane, a former corporatebanker, joined the board following Peter
Hay’s retirement. Ilana Atlas, an experienced
company director and banking executive, alsojoined the board following Alison Watkins’decision to step down having accepted a new
executive role. Both Peter and Alison also madesignificant contributions to our board andto ANZ, and on behalf of shareholders I also
acknowledge their service.
CORPORATE SUSTAINABILITY
ANZ has an important role to play within
the communities in which we operate. Our
longstanding investment in building the money
management skills and savings capabilities ofpeople across our region is an integral part of
ANZ’s Corporate Sustainability Framework.
More than 294,000 people have participatedin our flagship financial literacy program
MoneyMinded since 2003 and this year
we extended the reach of this program bylaunching MoneyMinded online. We have also
made banking more accessible in rural andremote areas of the Pacific, with our mobilebanking application ANZ goMoneyTM.
At a time when governments around theworld are examining the most effective ways
to mitigate climate change, some of our
stakeholders view our financing of fossil fuelindustries as a key risk. While ANZ is not a major
emitter of greenhouse gases, many of our large
corporate customers are and we are therefore
committed to supporting our customers totransition to a lower-carbon economy. I would
encourage shareholders to read our forthcoming
Corporate Sustainability Review in which weoutline our position on climate change and our
response to these issues in more detail.

CHAIRMAN’SREPORTOUTLOOK
We expect 2015 to present similar opportunities
for ANZ to those in 2014 with a continuation ofa stable credit environment.
In Australia and New Zealand the consumer
sector remains relatively buoyant and we expect
a gradual transition to business led growth.
Asia’s economies are set to maintain theirposition as the world’s best performing region.

We believe the environment, ANZ’s strategy
and the strength of its customer franchisemean the bank is well positioned to maintain its
momentum and to deliver growth and value toshareholders over the medium term.

David Gonski, Chairman

BOARD OF DIRECTORS
Details of Directors in office as of
30 September 2014 are set out below.
Full biography details can be foundon our website: shareholder.anz.com/
our-company/board-of-directors
LEFT TO RIGHT SEATED:David Gonski, AC
Chairman
BCom, LLB, FAICD(Life), FCPA
Ian Macfarlane, AC
BEc (Hons), MEc, Hon DSc Syd., Hon DSc UNSW, Hon
DCom Melb., Hon DLitt Macq., Hon LLD Monash
LEFT TO RIGHT STANDING:
Lee Hsien Yang
MSc, BA
Graeme Liebelt
BEc (Hons), FAICD, FTSE, FAIM
Ilana Atlas
BJuris (Hons), LLB (Hons), LLM
Michael Smith, OBE
BSc (Hons) City Lond., Hon LLD Monash
Chief Executive Officer and Executive Director
Paula Dwyer
BCom, FCA, SF Fin, FAICDJohn Macfarlane
BCom, MCom (Hons)CHAIRMAN’S REPORT 11

6

%

TOTAL
SHAREHOLDER
RETURNA MESSAGE FROMMICHAEL SMITH, OBE
ANZ’s performance in 2014
demonstrates consistent executionof our super regional strategy withstrong growth in Australia, New
Zealand and Asia Pacific. This iscontinuing to create a better bankfor customers – whether big, small,retail or corporate – and a betterbank for shareholders.
In the six years since the GFC, we
have transformed ANZ into a bankthat’s more customer focused,
more regionally diversified, more
efficient and more sustainable.
STRONGER IN AUSTRALIAAND NEW ZEALAND
We have strengthened our positionin our major domestic markets inAustralia and New Zealand throughconsistent market share gains.
A key measure of our successcontinues to be our growthin customer numbers. During
2014 we have added 106,000
net new customers across Retailand Commercial in Australia. We
have also achieved the number
two position in Retail customer
satisfaction in Australia1 and in
New Zealand our brandconsideration is at a historic high.
We are also investing heavily ingrowth in Australia and New Zealand.
This includes digital and mobiletransformation, the broader Banking
on Australia program and our New
Zealand transformation program.
1
2

HIGH QUALITY GROWTH IN ASIA

CORPORATE SUSTAINABILITY

We have invested strongly in ourbusiness in Asia Pacific throughprofitable expansion of an integrated
network that connects customers
with Asia’s faster growing regional
capital, trade and wealth flows.
This has established a uniquecompetitive position in Asia and thatbusiness is now at a stage of maturity
that we can deliver both high quality
growth and improved returns.
Our regional connectivity isdelivering significant outcomes forour customers. We are gaining agreater share of our clients’ financial
institutions wallet and growing
numbers of multi-country clients.
Once again we were ranked in the
Top Four Corporate Banks in Asia asrecognised by Greenwich Associates2.

Each year we set publicsustainability targets which reflect
the commitments made in our
Corporate Sustainability Frameworkand support the delivery of ourbusiness strategy. We have threesustainability priority areas:sustainable development, diversity
and inclusion and financial inclusionand capability.
We have made good progressagainst the majority of our 2014sustainability targets. Some targets
however, such as representation of
women in management, remain achallenge. In the coming year we arefocusing on a range of initiatives tosupport our commitment to achieve
gender balance, including increasing
opportunities for flexible working.
Sustainability will continue to bea key focus as we drive performance
improvements across the businessto ensure we are effectively
managing our most material, socialand environmental opportunities
and risks.

PRODUCTIVITY
We now have a well-established
enterprise approach to delivering
more control and greater efficiency
through standardised processes andsystems, consolidating like teams,
more straight-through processing andmore convenient online self-service.
This has seen us deliver double digit
productivity growth in operations
and a more consistent, higher
quality customer experience. Thissaw the ANZ’s cost to income ratio
fall to 44.7% during 2014.

REACHING A TIPPING POINT
We continue to operate in a tough,highly competitive environment
where banking faces a number ofchallenges. There are also big shifts
redefining the global economy andcustomer expectations are changing
as they embrace the convenienceof digital and mobile financial

Roy Morgan Research. Base: ANZ Main Financial Institution Customers, aged 14+, based on 6 months to September for each year.
Top 4 Corporate Bank in Asia (as recognised by Greenwich Associates 2013 Asia Large Corporate Banking Study).

12 2014 SHAREHOLDER REVIEWCEO’SREPORT

solutions. We have to be ahead of
the curve by ensuring ANZ is future
ready in every part of our business.
I believe however we are now at atipping point where our strategy,
the transformation of our businesssince the financial crisis and theenergy of our people can create aneven more successful future for ANZ.

MANAGEMENT BOARD
Details of Management Board Members in office as of 30 September
2014 are set out below. Full biography details can be found on our
website: shareholder.anz.com/our-company/management-board
RIGHT TO LEFT SEATED:
Michael Smith, OBE
Chief Executive Officer and Executive
Director since 1 October 2007
Andrew Géczy
Chief Executive Officer, International& Institutional Banking
RIGHT TO LEFT FRONT ROW:

Michael Smith, OBE
Chief Executive Officer

Gilles Planté
CEO Asia Pacific
Graham Hodges
Deputy Chief Executive Officer
Susie Babani
Chief Human Resources Offiicer

Joyce Phillips
CEO Global Wealth & GroupManaging Director, Marketing,Innovation and Digital
Philip Chronican
Chief Executive Officer, Australia
David Hisco
Chief Executive Officer, New Zealand
RIGHT TO LEFT BACK ROW:
Shayne Elliott
Chief Financial Officer
Alistair Currie
Chief Operating Officer
Nigel Williams
Chief Risk Officer

CEO’S REPORT 13

Launched the Real Time Customer
Feedback program providing a‘closed loop’ feedback programfor home loan customers.

PHILIP CHRONICAN
CEO, AUSTRALIA
BUSINESS PROFILEANZ services more than five million Australian customers
across our retail and commercial businesses. We
focus on understanding our customers’ goals andmaking banking easier to put them firmly in controlof their finances.

1.5$

BILLION

REDEYE APPSCASE STUDY
RedEye Apps is a technology company digitising
engineering blue-prints for large infrastructure projects
globally. The first company of its kind, RedEye Apps
provides a cloud based engineering drawing management
solution that enables easy and secure access to files anddata, anywhere and at any time.

INVESTMENTBANKING ON AUSTRALIA

Two years into our Banking on Australia strategy
and five-year $1.5 billion investment, we continue totransform our business to meet an increasing demand
for mobile and digital banking.
Our range of award-winning online and mobilebanking applications, along with our Smart ATMs, giveour customers more options for convenient banking.
We also continue to deliver an improved customer
experience through extensive staff training and thetransformation of our distribution channels, including
760 branches, 200 business centres and seven-day-aweek contact centres. This is backed by the international
connectivity and capability of ANZ’s network.

Headquartered in Brisbane, RedEye Apps has grownsignificantly since its inception in 2012. Recently RedEye
Apps established offices in Houston (USA) and is attracting
strong interest from global mining, oil and gas, power andwater industries.
RedEye Apps CEO and Co-founder Wayne Gerard: “Ina world of changing technologies and digital innovation,
RedEye is providing our clients with a unique service
which has given us the opportunity to quickly expand
internationally. Having an Australian-based bank withspecialist knowledge and existing global operations has
greatly helped ease our transition into a global market.”

BUSINESS HIGHLIGHTS1
PROFIT
INCREASE

ABOVE
SYSTEM GROWTH

IMPROVED COST
MANAGEMENTREDUCED CUSTOMERCOMPLAINTS

INCREASEDCUSTOMER BASE

Delivered a strong
financial performance,with NPAT up 7%.

Grown Home
Lending at above
system levels for 19
consecutive quarters2.

Helping morecustomers with
their needs while
delivering a lower
cost to serve withimproved Cost to
Income (CTI) at 37.2%.

Reduced customer
complaints by 8.7%3
and improved Retailcustomer satisfaction,
obtaining a scoreof 82.6%4.

Acquired 27,000 net
new Corporate &Commercial Banking
customers anddoubled our lending
pledge for small
business customers
to $2 billion.

All figures on a cash basis unless noted otherwise.
Source: APRA Monthly Banking Statistics 12 months to 30 September 2014.
Retail and Commercial complaints.
4
Source: Roy Morgan Research. Base: ANZ Main Financial Institution Customers aged 14+, six months to September 2014.
5
Based on final quarter FY14 transactions.
1
2
3

14 2014 SHAREHOLDER REVIEWAUSTRALIA

Since 2013 we have introduced
772 ANZ Smart ATMs offering
24-hour access to a greater
range of banking services.

$4 million annual investment infinancial literacy. In FY14, morethan 36,500 people participatedin MoneyMinded and more than
5,400 in Saver Plus.

Our ANZ goMoneyTM mobilebanking application attracts anaverage of 1 million customers
daily 5, with transactions exceeding$100 billion since launch.

Our award winning ANZ FastPayTM merchantapplication is now available for small businesscustomers to complete credit and debit
transactions on Android and IOS.

» PICTURED: Wayne Gerard CEO& Co-founder RedEye Apps

Revised our Customer Charter,
setting out the standards andexperience our retail customers
can expect from ANZ.

FINANCIAL PERFORMANCE ($M)

2014

2013

MOVT %

Operating income

8,228

7,860

5

Operating expenses(3,057)(2,967)

3

Profit before credit impairment and income tax

5,171

4,893

6

Credit impairment charge

(819)

(820)

Profit before income tax

4,352

4,073

7

Income tax expense and non-controlling interest(1,304)(1,215)

7

Profit after tax

3,048

2,858

7

Total assets

290,726

274,325

6

43%

44%

Contribution to group earnings

AUSTRALIA 15

ANDREW GÉCZYCEO, INTERNATIONAL &INSTITUTIONAL BANKING

No.1

BUSINESS PROFILE
ANZ’s goal to build a Super Regional bankby growing our business across the APEA
region, while maintaining our market leading
position in our home markets of Australia and
NZ, is spearheaded by the International andInstitutional Banking (IIB) division.
ANZ aims to be the best bank for customers
that have trade or capital flows in Asia Pacific,
Australia, New Zealand and beyond. IIB
provides borderless solutions for our businessand retail customers across the region.
IIB is the only ANZ business division
represented in all 33 markets. Following a
growth agenda for the past five years, IIB
now services more than two million retail andinstitutional customers with 138 branches,
580 ATMs and 8,000 staff.
Our goal is to help deliver on ANZ’s aspiration
to have APEA sourced revenue drive 25 to 30%
of group profit by 2017, and to continue togrow our Institutional business in Australia
and New Zealand.

ON THE RELATIONSHIPSTRENGTH INDEX (RSI)A LEADING REGIONAL BANK
The most Australian of the international banks andthe most international of the Australian banks.
This unique position was recognised when ANZ
was named a Top 4 Corporate Bank in Asia in theGreenwich Large Corporate Banking Study1.
In addition a No.1 ranking was achieved in thePeter Lee Associates Large Corporate RelationshipBanking Surveys in Australia and New Zealand2,3
where ANZ was rated No.1 for both Lead Bank
penetration and for the Relationship Strength Index(RSI). Our 595 score in the Australian program is thehighest score recorded.

FINANCIAL PERFORMANCE ($M)

2014

2013

MOVT %

Operating income

7,015

6,580

7

Operating expenses(3,215)(2,985)

8

Profit before credit impairment and income tax

3,800

3,595

6

Credit impairment charge

(215)

(317)

-32

Profit before income tax

3,585

3,278

9

Income tax expense and non-controlling interest

(894)

(846)

6

Profit after tax

2,691

2,432

11

Total assets

342,880

296,122

16

38%

37%

Contribution to group earnings

Greenwich Associates 2013 Asian Large Corporate Banking Study.
Peter Lee Associates 2014 Large Corporate and Institutional Relationship Banking Survey, Australia.
Peter Lee Associates 2014 Large Corporate and Institutional Relationship Banking Survey, New Zealand.
4
All figures on a cash basis unless noted otherwise.
5
Euromoney 2014 FX Survey.
12
3

16 2014 SHAREHOLDER REVIEWMaking banking more accessible:
more than 102,000 customers
registered for ANZ goMoneyTM
in the Pacific.

INTERNATIONAL& INSTITUTIONALBANKING

BUSINESSHIGHLIGHTS4
24%
GROWTH

7%
GROWTH14%
GROWTH

11%
CASH PROFITINCREASEDFINANCIAL LITERACY

Expansion into Asia
continues to deliver
superior growth,with 15% growth inlending driving a
24% increase in APEA
cash profit.

ANZ has achieved
7% growth in foreignexchange (FX) andwas placed second5
overall for services in
Asian currencies andFX services during the
Asian time zone.

Strong Global Loan
lending growthof 14% together
with benign credit
conditions delivered
cash profit growth in
Global Loans of 14%.

Delivered a strong
financial performancein tough trading
conditions, with cash
profit up 11%.

7,310 participantsin our MoneyMinded
program acrossAsia Pacific.

DRIVINGGREATERFINANCIAL &OPERATIONAL
EFFICIENCYCASE STUDYANZ was recognised as bestin class by customers forforeign exchange (FX) in the2014 Asiamoney FX Poll.

International and Institutional
Banking concluded its first
Bank Payment Obligation (BPO)
transaction on behalf of Chinese
agricultural giant customer COFCO
International. COFCO is one of
the largest agriculture, food andbeverage groups in China withannual turnover of $US12.12 billion.
Speaking about the newdevelopment ANZ's IIB CEO Andrew
Géczy said, “BPO is arguably themost promising innovation in tradefinance in the last decade. We areproactively engaging clients instrategic conversations on how
BPO can help them drive greater
financial and operational efficiency
in dealing with their counterparties,
with their banks and within theirown organisation.”
BPO makes it faster, more reliable
and more convenient for customers
to trade using data set matching

against a baseline to establish
a BPO, instead of the manual
checking and verification for paper
documents for example under
Letters of Credit.
BPO benefits both the customer
and the Bank. COFCO’s tradetransaction was turned aroundmuch faster than it would havebeen using paper documentation,bringing forward cash flows andreducing processing costs and alsosaving our customer time.
ANZ continues to outpace thecompetition in offering customers
innovative new products,
cementing our place as the leading
Trade Bank. Our ability to take adifferentiated value proposition
to COFCO has enhanced our
reputation in an ever-morecompetitive banking landscape.

INTERNATIONAL & INSTITUTIONAL BANKING 17

Financial literacy: continued to progress
our partnership with the SolomonGroup Education and Training Academy
to deliver MoneyMinded to more than
500 participants.

DAVID HISCO
CEO, NEW ZEALAND
BUSINESS PROFILE

BUSINESS HIGHLIGHTS1

ANZ New Zealand is the largest bank in New
Zealand with a financial relationship witharound one in two New Zealanders. Customers
are served through our market-leading networkof full-service branches (coverage has increased
to 85% – the largest of all banks), our multichannel contact centre and more ATMs thanany other bank, along with New Zealand’s
largest internet and mobile banking services.
Following the successful merger of ANZ and
The National Bank in 2012, we have continued
to reduce costs and build a simpler, moreproductive business. By leveraging our strong
financial position and scale, we have grownmarket share in home loans, credit cards,
KiwiSaver and commercial lending, and are
advancing strongly towards our ultimate goalof creating New Zealand’s best bank.

10%
PROFIT INCREASE

ROE
UP 1.6%

Delivered a strong financial
performance with cash profit up
10% and CTI down 2.4% to 41.1%.

Continued to create shareholder
value with return on equity up
by 1.6% to 15.9%.

GROWTH OF SHAREIN KEY MARKETSCOMMUNITYINVESTMENT

Delivered market share growthfor five consecutive halvesin home loans (up 23 basis
points in FY14 to 30.71% as at
September) and above market
growth in cards, life insurance
and KiwiSaver. Our commercial
book has also significantly
outperformed the market (up 137
basis points in FY14 to 30.91%
market share, as at September).

Invested more than $A2.7
million through our community
investment program including
employee volunteering,
workplace giving and donations.
A further $A26 million wasprovided in the form of
foregone revenue2.

No.1
BRAND
CONSIDERATION3

Streamlining of products and simplificationof customer processes have pushed brandconsideration to number one among the
major banks.

FINANCIALPERFORMANCE (NZ$M)

2014

2013

MOVT %

Operating income

2,744

2,679

2

Operating expenses(1,129)(1,166)-3

Profit before credit impairment and income tax

1,615

1,513

7

Credit impairment charge

9

(46)

Large

Profit before income tax

1,624

1,467

11

Income tax expense and non-controlling interest

(454)

(407)

12

Profit after tax

1,170

1,060

10

100,346

95,465

5

15%

14%

Total assets
Contribution to group earnings

4 ll figures on a cash basis unless noted otherwise.
A
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.
McCulley Research (major banks only). As at 30 September 2014, respondents saying they would choose or seriously consider ANZ for their next banking service.
4
Calculated on an AUD basis.
1
2
3

18 2014 SHAREHOLDER REVIEWSupported the rebuild of quake-hit Christchurchwith the announcement of plans to locate
hundreds of staff in a new Canterbury Corporate
Office in the heart of the CBD. ANZ was the firstbank to reopen in the Christchurch rebuild zone
following the earthquake.

NEW ZEALAND

Built further on our industry-leading support
for the agri sector, launching a new FarmDevelopment Package, Pasture Productivity Loan
and an assistance package for flood-hit Northland
farmers. This support was recognised when ANZ
won CANSTAR Agribusiness Bank of the Year for athird consecutive year.

» PICTURED: Zahabia Barot,
ANZ customer

SIMPLIFYINGBANKINGFOR FOREIGNSTUDENTSCASE STUDY

Education is New Zealand’s fifthlargest export, worth NZ$2.6 billion.
ANZ is supporting the government’s
aim to double this by 2025,
introducing payment innovations
and using its Super Regionalpresence to help institutions attract
foreign students.
Under its unique Funds Transfer
Scheme collaboration with
Immigration New Zealand, ANZ
helps Chinese, Indian, Sri Lankan
and Filipino students to prove they
have funds for New Zealand living
expenses, making it simpler to get
a visa and transfer money.

In India students can pay tuition
fees in Rupees from local accounts
through ANZ. Since FY13 these
innovations have contributed to adoubling in the number of Indian
students opening ANZ accounts
before moving to New Zealand.
Zahabia Barot said, “it took justone phone call and an email to
ANZ to open my accounts andtransfer money to New Zealand fora year’s living expenses, all fromthe comfort of home before
leaving India. I can’t imagine howdifficult this would be without
ANZ’s support.”

NEW ZEALAND 19

JOYCE PHILLIPS,
CEO, GLOBAL WEALTH
BUSINESS PROFILEANZ MANAGES

61

Global Wealth provides a range of innovative solutions forcustomers across the region to make it easier for them toconnect, protect and grow their wealth.
Global Wealth serves over 2.3 million customers andmanages $61 billion in investment and retirement savings.
Customers can access ANZ’s wealth solutions throughteams of highly qualified financial planners and advisers,
innovative digital platforms, ANZ Private Bankers and ANZ
branches and direct channels.
Global Wealth is focusing on initiatives to help customers
engage with their wealth. This includes delivering new
digital solutions and physical environments, new options
for the self-directed customer and transforming advice.

$

BILLIONIN INVESTMENT AND
RETIREMENT SAVINGSFINANCIAL PERFORMANCE ($M)

2014

2013

MOVT %

Operating income

1,744

1,526

14

Operating expenses(1,026)

(955)

7

718

571

26

Credit impairment charge

2

(4)

Large

Profit before income tax

720

567

27

Income tax expense and non-controlling interest

(195)

(96)

Large

Profit after tax

525

471

11

Contribution to group earnings

7%

7%

Profit before credit impairment and income tax

BUSINESS HIGHLIGHTS1
STRONG FINANCIALPERFORMANCEUNDERLYING
BUSINESS GROWTH

DELIVERINGINNOVATIONSTRATEGICPARTNERSHIPS

Global Wealth profit
grew by 11% withrevenue increasing
by 14%.

We have experienced underlying
growth across all business lines:
10% growth in Retail and Direct
Life inforce premiums, 12%growth in average Funds Under
Management, while Private Bank
customer deposits grew by 20%.

Innovations designed to help ourcustomers better connect with
their financial futures have beendelivered during the year. These
include the ANZ Grow Centre
and the Grow by ANZ digital app(see case study for more detail).

A new partnership
was formed with
Swiss Private Bank
Vontobel, extending
our suite of global
investment solutions.

1

All figures on a cash basis unless noted otherwise.

20 2014 SHAREHOLDER REVIEWGLOBAL WEALTHHELPINGCUSTOMERSCONNECT,PROTECTAND GROW
THEIR WEALTH
CASE STUDY

Global Wealth is passionate about helping people connect, protect andgrow their wealth and we’ve developed Grow – a series of innovations
across the physical, digital and advice space to help our customers better
connect with their financial future.
The ANZ Grow Centre is a new destination which blends digital tools withthe physical wealth specialist, so we can help customers with everythingfrom their mobile device to financial advice. In the Centre, customers
can download apps, learn how to manage their wealth online, accessspecialist support and advice, and attend free daily seminars on topics
ranging from maximising savings, to investing in property to pension
changes and the global economic outlook.
Grow by ANZ, our new digital app, allows customers to connect with
their wealth and banking all in one place. Using Grow by ANZ customers
can consolidate their superannuation into ANZ Smart Choice Super,
trade shares online, manage their banking and access information
about insurance. Launched in July 2014, Grow by ANZ is one of the top
five financial apps in the Apple iTunes store with a 4+ star rating andwas recently named the Best Mobile Trading App at the 2014 Australian
Mobile & App Design Awards.
Through Grow innovations, Global Wealth is helping customers build
their confidence and knowledge to make better financial choices for their
future wellbeing.

ANZ Smart Choice Superhas been awarded
5 stars by Canstar in every
superannuation category

ANZ is the No.1 KiwiSaver
provider in New Zealandwith 24% share of Funds
Under Management.

GLOBAL WEALTH 21

95% of home loan
applications assessedin less than 24 hours

ALISTAIR CURRIECHIEF OPERATING OFFICER
BUSINESS PROFILE
Global Technology, Services &Operations is the delivery division forthe bank, responsible for the deliveryof technology, shared services andoperations and processing eight
million transactions daily across ourglobal footprint. The division is also
responsible for major transformation
projects and ANZ’s commercial andbranch property portfolio.

We are delivering the next generationof enterprise platforms that will
underpin further growth and improvebanking for our customers globally.
Our Regional Delivery Network withkey locations in Melbourne, Wellington,
Bangalore, Manila, Chengdu andSuva, plus integrated operations indozens of other countries, provides us
with unmatched scale, flexibility andbusiness continuity.

We have continued to drive
productivity across ANZ and to
focus on improving quality in allareas, which has delivered a better
customer experience and has
translated into strong, sustainablebottom line improvements.
» PICTURED: Nigel Adams,
Global Head of Payments
and Cash Operations

BUILDING A WORLD-CLASS,CUSTOMER-FOCUSED PAYMENTSCAPABILITY CASE STUDYANZ has accelerated deployment of a Global
Payments capability focused on driving
greater resilience and standardisation acrossour regional network. As part of our ongoingenterprise transformation plans, our global
payments platform is delivering improvements
in process automation and straight-throughprocessing. This, combined with proactive
business activity monitoring for payments, isenabling better load balancing and visibilityof payments processing across our Regional
Delivery Network.
Our global payments platform has been
activated in 10 countries across Asia adding
significant processing scale to support
anticipated future business growth. This provenability to absorb future customer growth acrossour network, at progressively lower unit cost, isa key objective of our enterprise plan.
Our real time business activity monitoring
capability also allows our skilled staff across

22 2014 SHAREHOLDER REVIEW

our Regional Delivery Network to gain criticalinsights into the minute-by-minute customer
flows within our global payments environment.
This greatly enhances our ability to respondrapidly to any localised business disruption
by alerting staff to immediately re-balance
work around the Regional Delivery Network
seamlessly, with no impact to our customers.
Our global payments platform has also earned
ANZ the 2014 Asian Banker Technology
Implementation award for Regional Payments
Solutions, recognising best practices fortechnology implementation as well as
commending the delivery of regional
connectivity for our customers.
This example of our enterprise approach isdelivering more resilient operational processes,
higher levels of operational productivity
leading to lower support costs and thesimplification of our global payments systems
across the group.

GLOBAL TECHNOLOGY,SERVICES & OPERATIONSBUSINESS HIGHLIGHTS1
TECHNOLOGYSERVICES174
BILLION$PAYMENTERRORS DOWN

No.20 WORLD RANKING

HOURS OF BRANCHCAPACITY FREED

30k

64

%

IN TRANSACTIONS$174b in transactions were
processed through ANZ Transactive,
our global cash and trade platform
for Corporate and Institutional
clients now available in 17 countries.

OPERATIONS

64% reduction in payment errors
and faster processing of crossborder payments resulted from ourworld class payments commandcentre and new enterprise platform
for global payments and cash
management, now in 10 countries.

Global FX business is now ranked
No.20 in the world for transaction
processing by volume.

Standardising reconciliations
processes freed 30,000 hours ofbranch capacity.
12% PRODUCTIVITY GAINS
Productivity gains of 12% camefrom process improvements andcost management.

SUSTAINABILITY HIGHLIGHTS» We exceeded
our group-wide
greenhouse gas
emissions-reduction
target, bringing
emissions associatedwith our global
premises electricity
use down by 5%from 2013 levels2.

» Our greenhousegas emissions from
air travel reducedby 15% 3.

» We set six newenvironmental
targets for 20152017, covering
our most material
environmental
impact areas
group-wide.

» To improve
the social andenvironmental
performance of our
supply chain, we
screened 343 of ourriskiest suppliers
against our
Supplier Code ofPractice (SCOP)4.

All figures on a cash basis unless noted otherwise.
In accordance with the Australian Government regulatory reporting year the period covered is 1 July 2013 to 30 June 2014.
As compared to our 2011 environmental target baseline.
4
Screening is focused on the five ANZ risk categories (Governance and Compliance; Ethical Business Practices; Environment Management;
Occupational Health and Safety and Workplace Relations).
1
2
3

GLOBAL TECHNOLOGY, SERVICES & OPERATIONS 23

SUSTAINABLE DEVELOPMENT

2014 NON-FINANCIAL PERFORMANCE OVERVIEWA SUMMARY OF OUR PERFORMANCE AGAINST OUR
2014 SUSTAINABILITY TARGETS

PILOTING SUSTAINABILITY
WORKSHOPS FOR OUR
CUSTOMERS IN VIETNAM
CASE STUDYANZ is committed to supporting our customers to manage theirenvironmental, social and governance risks and opportunities. With
this goal in mind, International and Institutional Banking delivered its
first customer sustainability workshops in Ho Chi Minh City, Vietnam
in September 2014. The workshops, hosted by ANZ’s local banking
team, brought together current and prospective customers, nongovernment organisations (NGOs) and ANZ bankers to talk about whatsustainability means in a Vietnam business context. Challenges in thelocal market include environmental impacts from the manufacturingand hydropower sectors and labour rights issues concerning fair pay,working hours and health and safety.
Independently facilitated, the workshops enabled participants toshare the challenges and opportunities that arise when managing
social and environmental impacts in their business. The first workshop
brought together customers from the textiles and apparel industry,
and the second involved customers in the agricultural industry,including rubber and coffee producers who supply to well-known
international companies. Participants shared examples of bestpractice in topics such as water efficiency, employee health and safety,
employee engagement and forestry management.

24 2014 SHAREHOLDER REVIEW

Customers took away some practical steps
to improve their sustainability performance,
including the benefits of improved disclosureof their social and environmental performanceto their employees and external stakeholders.
During the workshops, NGOs were also able
to share their view with our customers of what
‘good performance’ means.
The workshops helped to raise awareness ofthe connection between good managementof social and environmental impacts andbusiness performance. Reflecting ourcommitment to building lasting partnerships
with our customers, the workshops also helped
to build closer relationships with a number ofprospective customers.

COMMITMENT
INTEGRATE SOCIAL AND ENVIRONMENTAL CONSIDERATIONS INTOOUR BUSINESS DECISIONS, PRODUCTS AND SERVICES TO HELP OUR
CUSTOMERS ACHIEVE THEIR SUSTAINABILITY OBJECTIVES.

Pilot Sustainability workshops
in one ‘developed’ and one‘emerging’ Asian market to better
understand and support mid-size
corporate customers managing
social and environmental risks
and opportunities.
Two workshops were held in HongKong: the first covering a range ofsustainability topics and the second
focused on "Energy efficiency andcarbon footprint manufacturing".
Two workshops were held in
Vietnam: the first focused onsustainability issues in the Textile &Apparel sector and the second on
sustainability issues in Agriculture.

Increase employee awarenessof our Sustainability agenda tobetter equip key banking staff toengage with clients on social andenvironmental issues.
a) The Corporate Sustainability
Framework was included in the
ANZ Essentials Induction programfrom 1 April 2014.
b) 1,333 online completions of theSocial and Environmental Risk
training course. c) 263 employees have completed theSustainability Leadership Program.
PERFORMANCE KEY:

Drive ongoing improvement in ourdecision making by undertaking
a comprehensive review of oursensitive sector policies.
Two sensitive sector policies, Energy
and Extractives Industries, have beenreviewed. This commitment will be
carried over into FY15.

ACHIEVED

To help mitigate climate change
we will increase the proportion oflower-carbon (gas and renewables)
power generation lending in our
Project Finance business by 15-20%
by 2020.
This is a long-term target and weremain on-track at 67%, against a
2011 baseline of 59%.
Portfolio summary: gas fired 23%,
coal fired 33%, renewables 44%.

PARTIALLY ACHIEVED OR IN PROGRESSDID NOT ACHIEVE

More details on specific performance are included in ANZ’s 2014 Corporate Sustainability Review.

CORPORATE RESPONSIBILITY 25

DIVERSITY & INCLUSION

2014 NON-FINANCIAL PERFORMANCE OVERVIEWA SUMMARY OF OUR PERFORMANCE AGAINST OUR
2014 SUSTAINABILITY TARGETS

CREATING AN INCLUSIVE& ACCESSIBLE WORKPLACE
CASE STUDYBuilding a more accessible andinclusive workplace has benefits
beyond reflecting the diversityof the communities in which we
operate – it can also help us tothink about customer service froma wider variety of perspectives.
Emily, an Esanda Customer Service
Consultant, has an acquired brain
injury, the side effects of which
include epilepsy and difficulty
making complex decisions.
“Having an acquired brain
injury and working through therehabilitation process really knocks
your confidence,” said Emily. “It
was a huge comfort to know that
I could start a recruitment process
at ANZ with my disability on thetable and openly accepted.”“Since being at ANZ I havefound all my managers havebeen very understanding andaccommodating in terms of myparticular needs. My workstation
has been specifically tailored andappropriate tools and resources
have been made available to me.”26 2014 SHAREHOLDER REVIEW

Another side effect of Emily’s
injury is slower than averagethought processing, which she
was conscious could impact onher call handling times. In an effort
to counteract this, Emily created‘cheat sheets’ with system shortcuts that she posted next to her
workstation. This enabled her tofocus on her conversation withthe customer, while not being
distracted by having to remember
complex system and process
details. So useful were these ‘cheat
sheets’ that her colleagues havealso started using them and they
have been rolled out in training
sessions for collections employees
in New Zealand. Emily’s efforts toimprove the customer experience
have been recognised within
ANZ and she has won several‘customer-centricity’ awards.
“My confidence has gone throughthe roof,” explains Emily. “Now I
know that the extra work that I do
– thinking about and examining
processes to find ways to makethem as simple as possible for me
personally – has translated into
real value for ANZ’s customers.”

COMMITMENTBUILD THE MOST DIVERSE AND INCLUSIVE WORKFORCE OF ANY MAJOR
BANK IN OUR REGION TO HELP US INNOVATE, IDENTIFY NEW MARKETS,
CONNECT WITH CUSTOMERS AND MAKE MORE INFORMED DECISIONSFOR OUR BUSINESS.

My
confidence
has gonethroughthe roof.
Emily, ANZ employee

Employ 230 people through ourtraineeships, graduate programand permanent employment
from disadvantaged andunder-represented groups toenhance diversity and support
economic and social inclusion
in our communities.
ANZ employed 253 people
from disadvantaged and underrepresented groups. While we
exceeded goals for employment ofpeople with a disability and refugee
opportunities through our Given the
Chance program, we fell short of ourindigenous recruitment goals.

Ensure key products and services andcommunication provided via our internet,
mobile phone banking and telephonebanking services are developed withreference to best practice accessibility
standards (Australia1).
ANZ is working through this requirement, withmobile phone banking and telephone banking
services satisfying accessibility requirements;
ANZ goMoneyTM, GROW, FastPayTM and
ANZ Shield have been developed in linewith accessibility standards. Scope exists for
improvement of accessibility of anz.com.

Achieve 80% favourable
perceptions of ‘Involvement andEmpowerment’ in our staff survey
as a measure of our progress inbuilding a diverse
and inclusive workforce.
Favourable perceptions of‘Involvement and Empowerment’remained steady year-on-year at 78%.

Increase the representation of women in
management by 1% compared to FY13
and achieve gender balance in our key
recruitment, talent and leadership programs.
ANZ fell short of our goal, with representationof women in management increasing from
38.7% to 39.2%. All key recruitment, talent andleadership programs were gender balanced.

PERFORMANCE KEY:

ACHIEVEDPARTIALLY ACHIEVED OR IN PROGRESSDID NOT ACHIEVE

More details on specific performance are included in ANZ’s 2014 Corporate Sustainability Review.
1Web Content Accessibility Guidelines (WCAG 2.0).

CORPORATE RESPONSIBILITY 27

FINANCIAL INCLUSION& CAPABILITY

2014 NON-FINANCIAL PERFORMANCE OVERVIEWA SUMMARY OF OUR PERFORMANCE AGAINST OUR
2014 SUSTAINABILITY TARGETS

Continue to build the money
management skills of an estimated
45,000 people through delivery of
MoneyMinded across the Region.
We estimate our flagship Group
program MoneyMinded reachedover 54,000 people across theregion in FY14.

Incorporate MoneyMinded training
into induction programs for new
recruits across our Bangalore,
Manila and Suva hubs to equip our
staff with essential life skills.
MoneyMinded training wasincorporated into induction
programs and 2,242 people
were trained.

Train retail customer-facing staff
in Australia to ensure they areable to show our customers how
to simplify their banking utilising
digital channels such as Internet
Banking, ANZ goMoneyTM, Smart
ATMs, EFTPOS and BPAY.
Retail customer-facing employees
in Australia have completed theEasy Ways to Bank training module.
The Easy Ways to Bank program has
now become business as usual.

Continue to promote financial
inclusion and innovative services
by delivering Mobile Phone
Banking to at least 200,000
customers in the Pacific.
A cumulative total of 102,000
customers have registered for
ANZ goMoneyTM in the Pacific sincelaunch (more than 58,000 are new
to bank). Below target due to a highturnover of sales agents; a strategy
is being implemented to rebuild
the sales force.

Build the money management
skills and savings capabilities ofpeople, by enrolling at least 4,750
people in our Saver Plus matchedsavings program in Australia.
5,461 new participants wererecruited to Saver Plus in FY14.

Simple changes to my life helped
me to manage my finances on a
day to day basis.
Reona, MoneyMinded participant

28 2014 SHAREHOLDER REVIEWCOMMITMENTBUILD THE FINANCIAL CAPABILITY OF PEOPLE ACROSS OURREGION TO PROMOTE FINANCIAL INCLUSION AND PROGRESSION
OF INDIVIDUALS AND COMMUNITIES.

HELPING FAMILIES TO
SAVE IN FIJI CASE STUDY
Reona and her husband
wanted to buy a home for their
young family but were nervous
about whether they could
afford a mortgage.
"We had a lot of doubts andquestions racing through our
minds," said Reona.
MoneyMinded helped point
Reona in the right direction.
She learnt how to manage
her personal finances more
effectively and recognisedthat her family’s spending andsaving habits had to change.
"The hardest part of my journeyafter participating in the
MoneyMinded program was
accepting that changes needed
to be made – it was tough!" said
Reona. "As we pressed on, thehole in our ‘money bucket’
got smaller and we became
more confident.""I’m not ashamed to walkaround the supermarket withPERFORMANCE KEY:

ACHIEVED

my calculator at hand to ensurethat I don’t exceed my family
budget for the week!"
Seven months after attending
MoneyMinded, Reona’s family
were the proud owners of theirvery first home.
"Simple changes to my life
helped me to manage myfinances on a day to day basis
and also secure a financial
future for myself and my loved
ones," said Reona.
Reona is more committed thanever to setting budgets for her
family and sticking to it.
"The saving goals I developed
when I started MoneyMinded,
which I still keep with me, are aconstant reminder to keep myfuture plans in sight."
ANZ introduced the MoneyMinded
program to Fiji in 2010. Since thattime, more than 3,929 Fijians havebeen through the program.

PARTIALLY ACHIEVED OR IN PROGRESSDID NOT ACHIEVE

More details on specific performance are included in ANZ’s 2014 Corporate Sustainability Review.

CORPORATE RESPONSIBILITY 29

PERFORMANCE KEY:

LICENCE TO OPERATE
2014 NON-FINANCIAL PERFORMANCE OVERVIEWA SUMMARY OF OUR PERFORMANCE AGAINST OUR
2014 SUSTAINABILITY TARGETS

ACHIEVEDPARTIALLY ACHIEVED
OR IN PROGRESSDID NOT ACHIEVE

More details
on specificperformance areincluded in ANZ’s2014 Corporate
Sustainability
Review.

OUR PEOPLE
WE ARE BUILDING A VALUES-LED,
VIBRANT, DIVERSE AND INCLUSIVEWORKFORCE WHERE OUR PEOPLE HAVETHE OPPORTUNITY TO LEARN AND
PROGRESS THEIR CAREERS WITH US.

Monitor our employees’
perceptions of Values-led
leadership, targeting a score of
73% in our annual My Voice Survey.
Favourable perceptions of ‘valuesbased leadership’ remained steadyyear-on-year at 71%.

Achieve 74% employee
engagement in our annual My
Voice survey, as a measure of ourprogress in creating an inspired
and energised workforce.
Employee engagement improved
to 73% from 72% in 2013.

Continue our long term
commitment to reducing Lost
Time Injury Frequency Rate (LTIFR)
in Australia and New Zealand(targeting 5-10% per annum), andstay under an LTIFR of 1.0 in India
and APEA countries.
Australia’s LTIFR1 is 1.97, up 9% (target
not achieved). However, Australian
Lost Time Injuries (LTI2) are down by
6% to 72. Over the last 9 years there
has been a year on year average
reduction in LTIFR of 6.7% against the2005 baseline. Over the same period
we have seen an ongoing reduction
in LTI from 182 to 72. All other regions
have achieved the target: New
Zealand’s LTIFR is 1.77, down 29%.
India’s LTIFR is 0.10 (under 1.0).
APEA countries are 0.88 (under 1.0).

OUR CUSTOMERSWE PROVIDE OUR CUSTOMERS WITH
BANKING THAT IS SIMPLE TO UNDERSTAND,
DELIVERED IN A RESPONSIBLE MANNER BYOUR PEOPLE, IN ACCORDANCE WITH THE
HIGHEST STANDARDS OF INTEGRITY.

Review our suite of assistance
options for customers facing
hardship, with a focus on
alleviating those facing long-term
hardship (Australia).
Review of assistance options has been
completed. New long-term assistance
option (>12 months) has been rolled
out for unsecured lending.

Resolve 90% of Retail customer
complaints within five businessdays. (Australia & New Zealand)
Australia: As at 30 September
2014, 90% of Retail customer
complaints were resolved within
five business days3.
New Zealand: As at 30 September
2014, 86% of Retail complaints wereresolved within five business days.

Increase customer satisfaction in the Commercial, Institutional and Retail Divisions.
Commercial (Aus): Marginal reduction from previous year; ranked equal third amongst the four major banks4. Retail(Aus): Increased to 82.6% in 2014 from 80.2% in 20135; ranked second among the four major banks. Institutional (Aus):
ANZ ranked No.1 for overall satisfaction with products and services6. Commercial (NZ): No change from previous year(87%); ranked 4th overall6. Retail (NZ): Increased to 85%; ranked 5th overall7. Institutional (NZ): ANZ ranked No.1 for overallsatisfaction with products and services8 and has occupied this position for the last two years.

30 2014 SHAREHOLDER REVIEWOUR COMMUNITY
WE ACTIVELY ENGAGE WITH AND INVEST INCOMMUNITIES WHERE WE OPERATE TO HELPBUILD OPPORTUNITY AND PROSPERITY.

Further support the communities in which we
operate, by volunteering 100,000 hours Group-wide.
ANZ staff contributed 101,801 hours to community
volunteering activities across the Group.

OUR SUPPLIERSWE MANAGE THE SOCIAL AND
ENVIRONMENTAL IMPACTS OF OURPROCUREMENT DECISIONS AND WORK INPARTNERSHIP TO INFLUENCE THE SOCIAL,ENVIRONMENTAL AND GOVERNANCEPERFORMANCE OF OUR SUPPLY CHAIN.

Screen our most material suppliers
as identified by our spend andsuppliers’ potential risk.
Suppliers have undergone an initial
screen9 and risk profiling against
requirement of ANZ’s SCOP. 343
riskiest suppliers have been identified
and further screened10 against public
databases for any known violations
relevant to our SCOP.

Evaluate the screening findings
and suppliers’ stated compliancewith our Supplier Code of Practice.
Following screening, five suppliers
were identified as highest risk.
47 suppliers were found to be higher
than normal risk in at least one of
our SCOP categories.

Where our screening and its
evaluation identifies suppliers
not operating in line with the
SCOP, we will enable suppliers
reasonable time to develop
credible remediation plans prior
to reviewing the relationship andreport on our progress.
Operational risk assessments
and treatment plans have been
completed for our five highest risk
suppliers. Progress will be tracked
via a new on-line SCOP attestationand monitoring solution in FY15.

OUR ENVIRONMENTWE HAVE A DIRECT IMPACT ON THE
ENVIRONMENT THROUGH OUR OPERATIONS
AND ARE COMMITTED TO MANAGING AND
REDUCING THE CONSEQUENCES OF OUR
BUSINESS DECISIONS.

Achieve a Group-wide absolutegreenhouse gas (GHG) reduction
target of 3% for emissions
associated with our premises
electricity use.
Our global GHG emissions (scope
2 – electricity) target (2013-2014) was
achieved. GHG emissions reduced
by 5% in 201411 compared to theprior year, exceeding our target ofa 3% reduction.

Deliver on our three year GHG, premises energy, commercial waste, water,
paper and air travel targets in Australia and New Zealand.
10 of 13 targets for 2011-2014 have been achieved. NZ has achieved all targets
and the Global Travel target has been achieved. In Australia, three targets havenot been met:
Australian GHG emissions: We achieved a reduction of 10.4% (-26,000 tCO2)
against our target of a reduction of 12% over 2011-2014. This is primarily due tohigher than forecast growth in data centre emissions that has accompanied the
sharp increase in use of mobile banking applications.
Australian Energy: We achieved a reduction of 1% against our target of
12% over 2011-2014. Energy usage reductions in commercial buildings andretail branches were offset by increases in data centres.
Australian Customer Paper: We achieved a reduction of 5% against our targetof 10% over 2011-2014. Customer paper usage fell in 2012 and 2013 but rosein 2014 by around 400 tonnes due to once-off printing of information forcustomers for legislative purposes.

Lost Time Injury Frequency Rate (LTIFR) is the number of Lost Time Injuries (LTIs) per million hours worked. 2 A Lost Time Injury (LTI) is where an ANZ employee
is kept from attending a complete normal work day following the day in which a work-related incident occurred, or a cumulative condition is reported. 3 Retailand Commercial complaints. 4 DBM Business Financial Services Monitor. Base: ANZ Main Financial Institution Customers, Commercial Banking (most businesses<$100m annual turnover), based on 6 months to September for each year. 5 Roy Morgan Research. Base: ANZ Main Financial Institution Customers, aged 14+,based on 6 months to September for each year. 6 Peter Lee Associates 2014 Large Corporate and Institutional Relationship Banking Survey, Australia. 7 Camorra
Research Retail Market Monitor (2014). The Nielsen Company Consumer Finance Monitor (excludes National Bank brand from 2009). Base: ANZ main bankcustomers aged 15+, rolling 6 months moving average to September. Based on responses of excellent, very good and good. 8 Peter Lee Associates 2014 Large
Corporate and Institutional Relationship Banking Survey, Australia/New Zealand. 9 External screening is conducted by Briefcase Analytics. 10 ‘Further screening’ isfocused on the five ANZ risk categories (Governance and Compliance; Ethical Business Practices; Environment Management; Occupational Health and Safety andWorkplace Relations). 11 FY14 refers to the GHG data for the year ended 30 June 2014.
1

CORPORATE RESPONSIBILITY 31

FINANCIAL
FIVE-YEAR SUMMARY 2010 – 2014

2014

20132

2012

2011

2010

Net interest income ($m)

13,797

12,772

12,11011,50010,862MILLION

Other operating income ($m)

5,781

5,619

5,738

5,385

4,920

NET INTEREST
INCOME

Operating expenses ($m)(8,760)(8,257)(8,519)(8,023)(6,971)

Profit before provisions and income tax ($m)

10,818

10,134

9,329

8,862

8,811

Credit impairment charge ($m)(989)

(1,197)(1,258)(1,220)(1,820)

Income tax expense and non-controlling interest ($m)

(2,712)(2,445)(2,241)(2,175)(1,966)

Cash / Underlying profit1 ($m)

7,117

6,492

5,830

5,467

5,025

Adjustments to arrive at statutory profit1 ($m)

154

(182)

169

112

524

Profit attributable to shareholders of theCompany ($m)

7,271

6,310

5,661

5,355

4,501

Assets ($m)

772,092

702,995

642,127604,213531,703MILLIONNet Assets ($m)

49,28445,603

41,22037,954

34,155NET ASSETS

Common Equity Tier 13 (%)

8.8

8.5

8.0

8.5

8.0

Common Equity Tier 1 – Internationally
Comparable Basel 3 (%)4

12.7

12.7

11.6

n/a

n/a

Return on average ordinary equity 5 (%)

15.8

15.0

14.6

15.3

13.9

Return on average assets (%)

1.0

0.9

0.9

0.9

0.9

Cost to income ratio1 (%)

44.7

44.9

47.7

47.5

44.2

FINANCIAL PERFORMANCE1

5.9

31.5

35.4

(12.6)

1.9

85,23584,45067,25551,31960,614

178

164

145

140

126

30.92

30.78

24.75

19.52

23.68

Points of representation6

1,220

1,274

1,337

1,381

1,394

Number of shareholders7498,309468,343438,958

442,943

411,692

Dividend (cps)
Share price – 30 September closing price ($)

Our expanded net
asset value resultsfrom dynamic
growth in Asia.

$85,235SHAREHOLDER VALUE - ORDINARY SHARES

Market capitalisation ($m)

The 27% increaseover five years
represents our strong
investment strategy.

$49,284

FINANCIAL POSITION

Total return to shareholders (%)$13,797

OTHER INFORMATIONMILLION
MARKETCAPITILISATION
Our strong market
position locates us
perfectly for our
medium to longterm goals.

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 and divisional performance against prior periods and against peer institutions. For 2012-2014 statutory profit has been adjusted for non-core items to arriveat cash profit. For 2010 and 2011 statutory profit has been adjusted for non-core items to arrive at underlying profit, which like cash profit, is a measure of theongoing business performance of the Group but used somewhat different criteria for the adjusting items. Neither cash profit nor underlying profit are 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
During the year the Group adopted certain new Accounting Standards and 2013 comparative information has been restated in line with the requirements ofthe standards. 3 Calculated in accordance with APRA Basel 3 requirements for 2012-2014. Comparatives for 2010-2011 are calculated on a Basel 2 basis. 4 Previously
disclosed International Harmonised capital ratios (Internationally Harmonised Basel 3) have been replaced with Internationally Comparable capital ratios as per the
methodology in the “Australian Bankers’ Association: International comparability of capital ratios of Australia’s major banks” (August 2014) report prepared by PWC
Australia. The 2012 and 2013 ratios have been restated for change in methodology to Internationally Comparable capital ratios. 5 Average ordinary equity excludes
non-controlling interests and preference shares. 6 Includes branches, offices, representative offices and agencies. 7 Excludes employees whose only ANZ shares areheld in trust under ANZ employee share schemes.
1

32 2014 SHAREHOLDER REVIEWNON-FINANCIAL
FIVE-YEAR PERFORMANCESUMMARY 2010 – 2014

FIVE-YEAR SUMMARY
2014

2013

2012

2011

2010

» Australia1 (%)

82.6

80.2

76.0

79.8

79.9

» New Zealand2 (%)

85

84

89

88

86

» Australia

1

2

2

1

1 (equal)» New Zealand

1

1

1

1

1

50,32849,8664

48,23950,29747,099

Employee engagement survey results (%)

73

72

70

70

64

Total women in management (%)5

39.2

38.7

37.8

38.2

38.4

Investment in learning and development ($m)

46.3

46.0

46.2

59.4

51.0

» Australia

1.97

1.8

1.5

2.1

2.2

Australia

0.95

0.7

1.2

1.5

1.7

» New Zealand

1.77

2.5

0.9

1.8

2.2

» APEA8

0.88

0.7

0.3

–

–

» India

0.1

0.1

0.3

0.0

0.0

101,801

89,28986,75891,41090,651» Australia

154,922

163,206

163,912

166,717170,299» New Zealand

10,008

11,95511

13,363

11,843

12,429» Asia Pacific, Europe and America

47,34712

44,98430,95730,18922,725» Australia

0.184

0.163

0.163

0.167

0.211

» New Zealand

0.107

0.12914

0.155

0.125

0.148

OUR CUSTOMERSRetail customer satisfaction

Institutional Relationship Strength Index ranking3

OUR PEOPLE
Total employees (FTE)

Lost Time Injury Frequency Rate6

7

OUR COMMUNITIESVolunteer hours
OUR ENVIRONMENT9
GHG emissions (tonnes CO2-e)10

Paper consumption (tonnes per FTE)13

Roy Morgan Research. Base: ANZ Main Financial Institution Customers, aged 14+, based on 6 months to September for each year. 2 Camorra Research RetailMarket Monitor (2014). The Nielsen Company Consumer Finance Monitor (excludes National Bank brand from 2009). Base: ANZ main bank customers aged
15+ rolling 6 months moving average to September. Based on responses of excellent, very good and good. 3 Peter Lee Associates 2014 Large Corporate andInstitutional Banking Relationship Survey, Australia/New Zealand. 4 During 2014 the Group migrated onto a single global HR platform. In doing so, the Grouprevised and standardised the measure of FTE and this resulted in an incease in FTE. Comparative information has been restated. 5 Includes all employees
regardless of leave status and includes casuals but not contractors (which are included in FTE). 6 Lost time injury frequency rate, the number of lost time injuries
per million hours worked. 7 LTIFR claims: an Australian financial industry benchmarking measure which includes LTIs that result in claims. This measure is notapplicable in other countries. 8 APEA started to calulate LTIFR in 2011. 9 In 2013 we changed our environmental reporting year to 1 July - 30 June to align toenvironmental regulatory reporting requirements. Prior years' data is reported in the previous 1 October - 30 September year. 10 Scope 1 & 2. A full GHG profile(scope 1, 2 & 3) will be available on anz.com. 11 Figure restated from what was reported last year due to updating of estimated data to actual data and finalisationof emission factors. 12 From 2013 onwards we have included India in our reported emissions from Asia Pacific, Europe and America. Comparative information
has been restated for FY13. 13 Includes paper consumed in offices and for customer printing. 14 Reported number relates to business as usual paper and does notinclude paper associated with a one off rebranding initiative completed in 2013.
1

FIVE-YEAR SUMMARY 33

The Board is responsible to shareholders for the governance of ANZ. It approves
the strategic direction, financial objectives and appropriate risk appetite for theorganisation and oversees ANZ’s operations and financial performance.
CURRENT NON-EXECUTIVE DIRECTORSD Gonski

1

Financial Year2014

NED fees and nonmonetary Benefits ($)

383,559

Superannuation
Guarantee Contribution
($)
Total
Remuneration ($)

2013

I Atlas
2014

2

2013

P Dwyer

HY LeeG Liebelt3

I Macfarlane

2014

2013

2014

2013

2014

2013

2014

2013

3,995

320,524

297,500

296,973

280,000

300,764

70,000319,473314,500

11,837380

18,027

16,79618,027

16,79618,027

4,444

18,027

16,796395,396

4,375

338,551

314,296

315,000

296,796318,791

74,444

337,500

331,296 Gonski commenced as a Non-Executive Director on 27 February 2014 and as Chairman on 1 May 2014 so 2014 remuneration reflects amounts received for the partial service
D
for the 2014 year.
I Atlas commenced as a Non-Executive Director on 24 September 2014 so 2014 remuneration reflects amounts received for the partial service for the 2014 year.
3
G Liebelt commenced as a Non-Executive Director on 1 July 2013 so 2013 remuneration reflects amounts received for the partial service for the 2013 year.
4
J Macfarlane commenced as a Non-Executive Director on 22 May 2014 so 2014 remuneration reflects amounts received for the partial service for the 2014 year.
5
J Morschel retired as Chairman on 30 April 2014 so 2014 remuneration reflects amounts received for the partial service for the 2014 year. Non monetary benefits relate to car parking
and gifts on retirement. $90,959 was paid to J Morschel on retirement in relation to his entitlements accrued in prior years under the closed ANZ Directors' Retirement Scheme.
6G Clark retired as a Non-Executive Director on 18 December 2013 so 2014 remuneration reflects amounts received for the partial service for the 2014 year. Non monetary
benefits relate to gifts on retirement. $123,990 was paid to G Clark on retirement in relation to his entitlements accrued in prior years under the closed ANZ Directors'
Retirement Scheme.
1
2

REMUNERATIONOVERVIEW
THE FOLLOWING PROVIDES A SUMMARY OF
THE REMUNERATION FOR THE CHIEF EXECUTIVEOFFICER (CEO) AND DISCLOSED EXECUTIVES –KEY MANAGEMENT PERSONNEL*.
A MORE DETAILED REMUNERATION REPORTIS CONTAINED IN THE ANNUAL REPORT FROM
PAGE 28 ONWARDS. THE REPORT CAN BE
ACCESSED VIA THE ANZ WEBSITE ANZ.COM/
ANNUALREPORT AS WELL AS IN HARD COPY.

34 2014 SHAREHOLDER REVIEWNON-EXECUTIVE DIRECTORSREMUNERATIONFORMER NON-EXECUTIVE DIRECTORSJ Macfarlane4
2014

2013

J Morschel5

G Clark6

P Hay7

D Meiklejohn8

A Watkins9

TOTAL OF ALL
NON-EXECUTIVEDIRECTORS

2014

2013

2014

2013

2014

2013

2014

2013

2014

2013

2014

2013

103,109476,955

780,336

68,704300,000

179,757

302,500

77,725

321,485

186,261

312,500

2,717,799 2,978,821

7,557

13,331

16,796

4,444

16,796

11,138

16,796

4,444

16,796

11,208

16,796

136,447

110,666

490,286

797,132

73,148316,796

190,895

319,296

82,169338,281

197,469

329,296

138,8122,854,246 3,117,633

 Hay retired as a Non-Executive Director on 30 April 2014 so 2014 remuneration reflects amounts received for the partial service for the 2014 year. Non monetary benefitsP
relate to gifts on retirement.
D Meiklejohn retired as a Non-Executive Director on 18 December 2013 so 2014 remuneration reflects amounts received for the partial service for the 2014 year. Non monetary
benefits relate to office space, car parking and gifts on retirement. $96,545 was paid to D Meiklejohn on retirement in relation to his entitlements accrued in prior years under
the closed ANZ Directors' Retirement Scheme.
9A Watkins retired as a Non-Executive Director on 30 April 2014 so 2014 remuneration reflects amounts received for the partial service for the 2014 year. Non monetary benefits
relate to gifts on retirement.
7
8

ANZ’s remuneration framework is designed to focus
our people on creating and enhancing value for ourshareholders and other stakeholders. We aim to ensure
there is a strong alignment between the short andlong term interests of both our shareholders and theexecutive team.
There are three components to remuneration –Fixed Remuneration, Short Term Incentive (STI) andLong Term Incentive (LTI). In the case of the CEO, his
remuneration opportunity is split evenly between thethree components. In the case of Disclosed Executives,a significant portion of their remuneration is at risk withthe outcomes differing from executive to executive.
Refer to the Annual Report, page 32, for a detailed
description of the ‘Composition of Remuneration at ANZ’.

The following summary has been prepared to provide
shareholders with a view of remuneration structure andhow remuneration was paid or communicated to the CEO
and Disclosed Executives for 2013 and 2014 and includes:» the actual amounts of grants made in respect of theyears 2013 and 2014;» any amounts which had to be deferred in respect of
the years 2013 and 2014; and» the actual amounts received in respect of the years
2013 and 2014.
* The term Key Management Personnel is defined under the Corporations Act.

NON-EXECUTIVE DIRECTORS REMUNERATION 35

The following table provides a summaryof the remuneration for the Chief Executive
Officer (CEO) and Disclosed Executives.
CEO AND CURRENTDISCLOSED EXECUTIVES

M Smith3

P Chronican4

A Currie5

Chief Executive Officer

Chief Executive Officer,
Australia

Chief Operating Officer

2014

2013

2014

2013

2014

Remuneration1 ($)

3,150,000

3,150,000

1,300,000

1,300,000

Non monetary benefits ($)

170,019

145,681

15,938Cash ($)

2,050,000

2,050,000

Deferred as equity ($)

1,950,000

Total ($)

Chief Financial Officer

2014

2013

1,000,000

1,250,000

1,250,000

15,66915,93820,663

15,669925,000

1,050,000

950,000

1,300,000

1,300,000

1,950,000

825,000

950,000

850,000

1,200,000

1,200,000

4,000,000

4,000,000

1,750,000

2,000,000

1,800,000

2,500,000

2,500,000

As of target (%)

127

127

112

128

150

167

167

As of maximum opportunity2 (%)

63

75

83

Financial Year2013

S Elliott6

FIXED

SHORT TERM INCENTIVE

56

LONG TERM INCENTIVE

Total (deferred as equity) ($)

3,400,000

3,150,000

700,000

700,000

750,000

800,000

1,000,000

Received ($)

5,370,319

5,345,681

2,240,938

2,365,669

1,965,938

2,570,663

2,565,669

Deferred as equity ($)

5,350,000

5,100,000

1,525,000

1,650,000

1,600,000

2,000,000

2,200,000

Total ($)

10,720,019

10,445,681

3,765,938

4,015,669

3,565,938

4,570,663

4,765,669

TOTAL REMUNERATIONF ixed Remuneration was unchanged year on year for Disclosed Executives, with the exception of D Hisco, G Hodges and N Williams. The difference for A Géczy year on year
reflects partial service as a Disclosed Executive in 2013.
The possible range of STI is between 0 and 2 times target STI. The actual STI received is dependent on ANZ and individual performance. Anyone who received less than 100% of
target forfeited the rest of their STI entitlement. The minimum value is nil and the maximum value is what was actually paid.
3M Smith - Non monetary benefits include car parking, life insurance and taxation services. In 2014 equity to the value of $2,335,900 vested in respect of previously disclosed deferred
STI granted in November 2011 and November 2012. Deferred LTI which was granted in December 2010 and previously disclosed, lapsed in December 2013. The 2014 LTI relates to the
proposed LTI grant, subject to approval by shareholders at the 2014 Annual General Meeting. LTI of $3,150,000 for FY13 equated to 201,086 performance rights which based on the
1 week VWAP at the start of the performance period (22 November 2013) had a face value of $6,383,495 as approved by shareholders at the 2013 Annual General Meeting.
4
P Chronican - Non monetary benefits include car parking and taxation services. In 2014 equity to the value of $1,014,170 vested in respect of previously disclosed deferred STI
granted in November 2011 and November 2012. Deferred LTI which was granted in November 2010 and previously disclosed, lapsed in November 2013. LTI of $700,000 for FY13
equated to 48,275 performance rights which based on the 1 week VWAP at the start of the performance period (22 November 2013) had a face value of $1,532,495.
5
A Currie - The Chief Operating Officer role is a Disclosed Executive role for the first time effective 1 October 2013 as it meets the definition of Key Management Personnel. Nonmonetary benefits include car parking and taxation services. In 2014 equity to the value of $933,222 vested in respect of deferred STI granted in November 2011 and November
2012, and equity to the value of $1,082,546 vested in respect of deferred LTI granted in November 2010.
6
S Elliott - Non monetary benefits include car parking and taxation services. In 2014 equity to the value of $952,637 vested in respect of previously disclosed deferred STI granted
in November 2011 and November 2012. Deferred LTI which was granted in November 2010 and previously disclosed, lapsed in November 2013. LTI of $1,000,000 for FY13
equated to 68,965 performance rights which based on the 1 week VWAP at the start of the performance period (22 November 2013) had a face value of $2,189,301.
12

36 2014 SHAREHOLDER REVIEWNON-STATUTORYREMUNERATIONA Géczy7

D Hisco8

G Hodges9

J Phillips10

N Williams11

Chief Executive Officer,
International & Institutional
Banking

Chief Executive Officer,
New Zealand

Deputy Chief Executive
Officer

CEO, Global Wealth, GroupManaging Director, Marketing,Innovation & Digital

Chief Risk Officer

2014

2013

2014

2013

2014

2013

2014

2013

2014

2013

1,250,000

50,0001,165,493

1,000,000

1,050,000

1,000,000

1,000,000

1,000,000

1,250,000

1,000,000

337,718–

430,342

411,398

19,166

27,404

5,500

5,500

18,551

248,328900,000–

1,150,083

1,050,000

800,000

675,000

900,000

700,000

950,000

850,000

800,000–

1,050,082

950,000

700,000

575,000

800,000

600,000

850,000

750,000

1,700,000–

2,200,165

2,000,000

1,500,000

1,250,000

1,700,000

1,300,000

1,800,000

1,600,000

113

–

157

167

119

104

142

108

120

133

57

79

60

71

80

800,000

625,000

699,260

699,200

500,000

500,000

700,000

500,000

750,000

750,000

2,487,718

50,0002,745,918

2,461,398

1,869,166

1,702,404

1,905,500

1,705,500

2,218,551

2,098,328

1,600,000

625,000

1,749,342

1,649,200

1,200,000

1,075,000

1,500,000

1,100,000

1,600,000

1,500,000

4,087,718

675,000

4,495,260

4,110,598

3,069,166

2,777,404

3,405,500

2,805,500

3,818,551

3,598,328

 Géczy - Commenced in role 16 September 2013 so fixed remuneration reflects amounts received for the partial service for the 2013 year. Non monetary benefits include
A
relocation expenses and car parking. LTI of $625,000 for FY13 equated to 43,102 performance rights which based on the 1 week VWAP at the start of the performance
period (22 November 2013) had a face value of $1,368,277.
8
D Hisco - Effective 2014, D Hisco received a 5% AUD increment and his remuneration was then fixed in NZD using the average exchange rate for FY13. His 2014
remuneration value in the table represents his NZD remuneration converted to AUD at the average exchange rate for FY14. Non monetary benefits includes expenses
related to his relocation to New Zealand, car parking and taxation services. In 2014 equity to the value of $1,203,589 vested in respect of previously disclosed deferred STI
granted in November 2011 and November 2012. Deferred LTI which was granted in November 2010 and previously disclosed, lapsed in November 2013. LTI of $699,200 for
FY13 equated to 48,220 performance rights which based on the 1 week VWAP at the start of the performance period (22 November 2013) had a face value of $1,530,749. D
Hisco was also eligible to receive shares to the value of $800 in relation to the Employee Share Offer in December 2013.
9
G Hodges - Non monetary benefits include car parking and taxation services. In 2014 equity to the value of $733,666 vested in respect of previously disclosed deferred STI
granted in November 2011 and November 2012. Deferred LTI which was granted in November 2010 and previously disclosed, lapsed in November 2013. LTI of $500,000 for
FY13 equated to 34,482 performance rights which based on the 1 week VWAP at the start of the performance period (22 November 2013) had a face value of $1,094,635.
10
J Phillips - Non monetary benefits include taxation services. In 2014 equity to the value of $643,058 vested in respect of previously disclosed deferred STI granted in
November 2011 and November 2012. Deferred LTI which was granted in 2010 and previously disclosed, lapsed in November 2013. LTI of $500,000 for FY13 equated to
34,482 performance rights which based on the 1 week VWAP at the start of the performance period (22 November 2013) had a face value of $1,094,635.
11
N Williams - Fixed remuneration was increased in October 2013 in light of market competitive remuneration levels for this role, and in recognition of his more seasoned
contribution. This has been the only adjustment to his fixed remuneration since his appointment to the role in December 2011. Non monetary benefits include car parking
and taxation services. In 2014 equity to the value of $806,482 vested in respect of deferred STI granted in November 2011 and November 2012 and equity to the value of$676,587 vested in respect of deferred LTI granted in November 2010. LTI of $750,000 for FY13 equated to 27,603 deferred share rights which based on the 1 week VWAP at
the start of the performance period (22 November 2013) had a face value of $876,260.																					7NON-STATUTORY REMUNERATION 37

CONTACTS & DATESHANDY CONTACTSREGISTERED OFFICESHARE REGISTRARANZ Centre Melbourne
Level 9, 833 Collins Street
Docklands VIC 3008 Australia
Telephone: +61 3 9273 5555
Facsimile: +61 3 8542 5252
Company Secretary: John Priestley

AUSTRALIA
Computershare Investor Services Pty Ltd
GPO Box 2975 Melbourne
VIC 3001 Australia
Telephone: 1800 11 33 99 (Within Australia)+61 3 9415 4010 (International Callers)
Facsimile: +61 3 9473 2500
anzshareregistry@computershare.com.au

INVESTOR RELATIONS
Level 10, 833 Collins Street
Docklands VIC 3008 Australia
Telephone: +61 3 8654 7682
Facsimile: +61 3 8654 8886
investor.relations@anz.com
www.shareholder.anz.com
Group General Manager
Investor Relations: Jill Craig
CORPORATE AFFAIRSLevel 10, 833 Collins Street
Docklands VIC 3008 Australia
Telephone: +61 3 8654 3276
gerard.brown@anz.com
Group General Manager
Corporate Affairs: Gerard Brown

NEW ZEALAND
Computershare Investor Services Limited
Private Bag 92119 Auckland 1142
New Zealand
Telephone: 0800 174 007
Facsimile: +64 9 488 8787
UNITED KINGDOM
Computershare Investor Services PLC
The Pavilions
Bridgwater Road Bristol BS99 6ZZ
United Kingdom
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)
citibank@shareholders-online.com
www.citi.com/adr

OUR INTERNATIONAL PRESENCE:» Australia» New Zealand» Asia – Cambodia, China, Hong Kong, India, Indonesia, Japan, Korea, Laos,
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38 2014 SHAREHOLDER REVIEWIMPORTANTDATES FORSHAREHOLDERS1
MAY 2015

5th

Interim Results
Announcement

8th

Interim Dividend
Ex-Date12th

Interim DividendRecord Date

13th

DRP/BOP/Foreign
Currency Election DateJULY 2015

1st

Interim Dividend
Payment Date

OCTOBER 2015

29th

Annual Results
Announcement

NOVEMBER 2015

6th

Final Dividend
Ex-Date10th

Final DividendRecord Date

11th

DRP/BOP/Foreign
Currency Election Date

DECEMBER 2015

16th

Final Dividend
Payment Date

17th

Annual General
Meeting (Adelaide)
1

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

CONTACTS & DATES 39

Australia and New Zealand Banking Group Limited ABN 11 005 357 522