CONNECTED
2013 SHAREHOLDER REVIEW» K ate CamerlengoMarketing Manager
Unsecured Lending
Melbourne, Australia» P atrick Zhu

Market Manager North Asia,
Transaction Banking
Shanghai, ChinaABOUT THISDOCUMENTThe 2013 Shareholder Review provides an
overview of ANZ’s strategic direction andfinancial and non-financial performancefor 2013.
Our work promoting money
management skills among disadvantaged
groups remains our priority community
investment focus.
All information contained within thisdocument is for the year ended
30 September 2013 unless otherwise stated.
All figures are in Australian dollars unlessotherwise stated.

MORE INFORMATION
General information on ANZ can beobtained from our website: anz.com.
Shareholders can visit our Shareholder
Centre at shareholder.anz.com.
ANZ Corporate Governance – Policies,
Charters, Codes of Conduct and Ethics:
Information regarding ANZ Corporate
Governance – including information
about the Board, Board-related charters,
the Group Codes of Conduct and Ethics,
the Conduct and Ethics Policy Framework(including Fraud Policy, Anti-Bribery andAnti-Corruption Policy, Whistle-blower
Protection Policy, Equal Opportunity,
Bullying and Harassment Policy, Healthand Safety Policy), the ANZ Constitution,
ANZ Shareholder Charter and otherrelated items – can be accessed on the
ANZ website: anz.com/governance.

2 | 2013 SHAREHOLDER REVIEWCONNECTED
2013 SHAREHOLDER REVIEW

A TOP

FOUR
LISTED COMPANY

A top four listed company
on ASX with over 468,000
shareholders.

DIVIDEND
INCREASED BY

13%

Total dividend of 164c
per share, up 13% on 2012.

ANZ has been named as
the global banking sector
leader in the 2013 Dow Jones
Sustainability Index (DJSI) for
the sixth time in seven years.

CONTENTS
ANZ’s Global Brand ..................................................................................... 4

Global Wealth .............................................................................................. 18

Strategy & Performance ............................................................................ 5

Global Technology, Services & Operations ..................................... 20

Financial & Non-Financial Performance .............................................. 62013 Non-Financial Performance Overview ................................... 22

Chairman’s Message.................................................................................... 8

Five Year Summary ................................................................................... 24

CEO’s Message............................................................................................. 10

Non-Executive Directors Remuneration .......................................... 26

Australia ......................................................................................................... 12

Remuneration Overview ......................................................................... 27

International & Institutional Banking.................................................. 14

Non-Statutory Remuneration .............................................................. 28

New Zealand ................................................................................................ 16

Contacts & Important Dates ................................................................. 30

CONTENTS | 3

CONTINUINGTO BUILD ANZ’SGLOBAL BRAND

Over the past three years, ANZ has
built one of the region’s leading brands
reflected in ANZ’s brand value increasing
by 72% to US$5.8 billion (Brand FinanceBanking Top 500) and ANZ being named
the most valued banking brand inAustralia in 2013.
This has been achieved through theintroduction of an integrated andconsistent brand communication platform
across the region, the continued
success of ANZ’s distinctive advertisingprogram featuring Patrick Jane (Simon
Baker) from the Mentalist and a renewed
focus on leveraging major sponsorships
such as the Australian Open and Shanghai
Rolex Masters.
In 2013, ANZ’s association with tennis saw
it reach 300 million viewers worldwide
during the Australian Open – the

4 | 2013 SHAREHOLDER REVIEWGrand Slam of the Asia Pacific region –and a further 70 million viewers at the
Shanghai Rolex Masters, of which ANZ
is a Diamond Partner as part of a new
five year partnership.
ANZ’s sponsorship of the Shanghai
Rolex Masters also extends to the ANZ
Junior Tennis Program, a community
program which has enabled hundredsof local children in Shanghai to learn
the great sport of tennis.
As we look to 2014, ANZ will continue
to develop its global brand campaign
and we remain committed to deliveringon our brand promise of helping
our customers, staff, shareholders andcommunities progress. £» A BOVE: Shanghai Masters Junior Tennis Clinics

STRATEGY ANDPERFORMANCEGOAL
ANZ is executing a focused strategy tobuild the best connected, most respectedbank across the Asia Pacific region.
This goal is based on our belief that the
future of our home markets of Australia
and New Zealand are increasingly
linked to the fast growing region of Asia
through trade, capital and wealth flows.
We also believe that people want a bankthat understands their specific needs,
and increasingly can meet these needs inmore than one market through a variety
of means.
By building a 'super-regional' bank,
ANZ can better serve our customers andachieve superior financial returns overthe longer term.
ANZ’s aspiration is to have 25 to 30% of
ANZ Group profit after tax sourced from
Asia Pacific, Europe and America, revenues
by 2017. ANZ has made good progress
towards this goal.

Our aim is tobe the best
connected,
mostrespected
bank acrossthe Asia
Pacific region.

ACHIEVEMENTS
In 2013, management continued to focus
on balancing the need for investment
to meet the needs of our customers anddrive longer-term growth, and the needto generate attractive returns for ourshareholders in the near-term.
We are building stronger positions in
our home markets of Australia and
New Zealand, led by solid market sharegains in Australian Retail and Commercial,emerging productivity benefits fromour program of simplification in New
Zealand, and improved penetrationof Wealth products into our existingcustomer base.
Our Institutional business in Asia is growing
quickly, focused on the fast-growing
cross-border trade and capital flows, withparticular emphasis on regional treasury
centres like Hong Kong and Singapore,and products like Cash Management,
Trade, Foreign Exchange and Debt

Capital Market. Returns in our Asian retailbusiness are improving, with a focus
on productivity, and building our deposit
base and our brand across the region.
Our operations strategy is delivering
economies of scale, speed to market anda stronger control environment, resulting
in lower unit costs, better quality andlower risk. More generally, our businessrisk profile improved, with a continuing
shift to investment-grade clients andshorter tenor Trade Finance, and greater
earnings diversification across products
and geographies.
Finally, we focused on strengthening
management depth and the alignment
between business, operations, support
and technology.

PROGRESSING
We are committed to delivering abovepeer earnings growth with strong capitaland expense disciplines, targeting further
productivity improvements over the
next three years while increasing returnon equity from current levels.
This will be achieved by strengthening
our position in Australia and New
Zealand, growing in Asia and sharing
common technology, processes,
products and services that are designedwith our customers in mind. £» ANZ Your World blog – yourworld.anz.com

OUR VISION, OUR STRATEGY | 5

FINANCIALHIGHLIGHTS
11%

INCREASE

11%

6,272
5,661

2012

9%

INCREASE

INCREASE

6,498

10,142

5,830

2013

Group net profit
after tax $m

2012

9,329

2013

20

ONE OF THE

LARGEST BANKSGLOBALLY

One of the 20 largest
banks globally bymarket capitalisation.

2012Group net profit
after tax (cash#) $m

ACHIEVEMENTS»D elivered a record
cash profit of $6.5 billion,
up 11% on 2012. Statutory
profit also up 11%.
» Fully Franked total
dividend for FY13 to
164 cents per share.
» T otal Shareholder Returnof 31.5%.

2013

Group profit before
provisions and tax(cash#) $m»R eturn on Equity(cash#) 15.3%.
»N amed the global banking
sector leader in the 2013
Dow Jones Sustainability
Index for the sixth time inseven years.

STRONGCAPITAL

12%

INCREASE

469.3
427.8

2012

368.8
327.9

2013

Net loans
and advances $b

2012

We are a member of:

POSITION

Common Equity
Tier 1 ratio of 8.5%*

provided to assist readers to understand the results for the ongoing business activities of the Group.
^ CDP was formerly known as the Carbon Disclosure Project.
* Measured under APRA Basel 3 prudential capital standards.

2013

Customer
deposits $b»W e achieved a disclosure
score of 92 out of 100
for our 2013 CDP^ climatechange disclosure.
» Since 2010, we havebeen carbon neutral across
our operations.
		# Statutory profit has been adjusted to exclude non-core items to arrive at cash profit and has been

6 | 2013 SHAREHOLDER REVIEW

10%INCREASE

We actively
participate in:NON-FINANCIALHIGHLIGHTS» Employee engagement
increased to 72%, from 70%.
» 3 8.7% women in
management.
»O ver 89,000 hours
volunteered by employees,
up from almost 87,000
in 2012.

» $ 65.1 million contributed
to communities($15.1 million in directcommunity investment
and at least $501 million
through foregone revenue).
»O ver 47,000 employees
across 33 countries.

»A n estimated 240,000
people have now
benefitted from ANZ’sfinancial education
program, MoneyMinded.

ECONOMICCONTRIBUTION
The economic contributions wemake to society is greater thanfinancial profits. We create jobs,
pay salaries and invest in theskills of our people. We also pay
taxes in the countries where we
operate, support businesses inour supply chain and provide
products that satisfy the needsof our customers.

6.7%

19.3%

INCREASE

2,600

2012

INCREASE

2,775

5,196
4,355

2013

Taxes borne2 $m

2012

2013

Taxes collected3 $m

ECONOMIC VALUE GENERATED:
Revenues ($m)

ECONOMIC
INDICATORS$M 201334,315ECONOMIC VALUE DISTRIBUTED:
Operating costs (excluding employment) ($m)

3,479

Employee wages and benefits ($m)

4,757

Payments to providers of funding4 ($m)

22,130

1 The cost of providing low or fee free accounts to government benefit recipients and waiving fees in response to emergencies and hardship.

2 Taxesborne: immediate cost to ANZ; impact to the profit and loss account and includes income tax, GST/VAT and employment taxes (excluding superannuation contributions).
3 Taxes collected: No cost to ANZ. Collected from customers, suppliers and employees etc. on behalf of the revenue authorities.

4 Payment to providers of funding includes all amounts pertaining to dividends paid to shareholders, interest payments made to depositors, interest on all forms

of debt and borrowings as well as dividends due to preferred shareholders.

FINANCIAL & NON-FINANCIAL HIGHLIGHTS | 7

We continue to operate from a strong
financial position. ANZ is one of the best
capitalised banks in the world with anincreasingly high-quality balance sheet.
A measure of this financial strength isthat ANZ remains one of a small numberof banks with a AA credit rating from all
three ratings agencies.

DELIVERING OUR STRATEGY
There continue to be significant growth
opportunities for ANZ in our homemarkets of Australia and New Zealand.

CHAIRMAN’SREPORTA MESSAGE FROMJOHN MORSCHELI am pleased to report that ANZ’s statutory
profit after tax for the 2013 financial year
was $6.3 billion up 11%. This is a strong
performance, the result of a distinctive
long-term strategy focused on growthin our domestic franchises in Australia,
New Zealand and the Pacific, and targeted
expansion in Asia.
The final dividend of 91 cents brings thetotal dividend for the year to 164 cents
per share fully franked, an increase of 13%.
This will see us pay out $4.5 billion toshareholders, largely retail shareholders
and superannuation funds.
ANZ is also delivering for shareholders overthe medium term. Our total shareholder
return for the past five years was 121%.
This compares to 110% for the S&P/ASX 200
Banks Accumulation Index and 13% for the
S&P/ASX200 Index as a whole.

8 | 2013 SHAREHOLDER REVIEWAt the same time, Asia is now the key
driver of global economic growth and thekey driver of Australia and New Zealand’s
growth. Our strategy involves a focus on
profitable expansion in Asia through an
integrated network connecting customers
with faster growing trade, capital andwealth flows into and across the region.
ANZ is the only Australian bank positioned
to fully benefit from Asia’s growth.
The growth of our business in Australia,
New Zealand and Asia Pacific is being
supported by an enterprise approachto building the business on common
platforms and processes to reduce unit
costs, complexity and risk, and to improve
our customer’s experience.
ANZ’s performance and the progress wemade in delivering our strategy in 2013 aredetailed in this Shareholder Review.
Notably, ANZ was again assessed theglobal banking sector leader in the Dow
Jones Sustainability Index (DJSI). Thisis the sixth year in the past seven that wehave received this assessment. Building
sustainability into the way we do businesssupports delivery of our strategy.

BOARD CHANGES
During the year, we completed a board
transition with two directors, David
Meiklejohn and Greg Clark, due to retireat the 2013 Annual General Meeting.
Paula Dwyer joined the board in2012 as part of a succession plan for David
Meiklejohn and this year Graeme Liebelt
joined to succeed Greg Clark. Graeme waspreviously Chief Executive Officer at Orica,
a leading global mining services company.

On behalf of shareholders I would like toexpress our thanks to David and Greg fortheir enormous contribution to the board
over the past nine years.

OUTLOOKAs we enter the 2014 financial year,
the major economies in the UnitedStates, Europe and Japan are graduallystrengthening. In emerging Asia growth
rates are expected to remain above
those in the major developed economies.
China is well positioned with growth
expected to be around 7.5% in 2014.
However, there continues to be volatility
in global markets. In recent months
this has been seen in response to an
expectation that the US will begin totighten monetary policy and the politicalimpasse over the US fiscal position.
Australia and New Zealand remain ina strong position with improving
consumer and business confidence andstrong trade and investment links with
Asia. The Australian and New Zealandeconomies are both expected to expandby around 2.5% in 2014.
ANZ’s super regional strategy means
we are well-placed to benefit from theresilience of our home markets and thegrowth in Asia. Together with the expenseand capital management disciplines wehave in place, it means we are positioned
to continue to deliver growth andperformance to our shareholders in 2014.
Finally, I would like to acknowledge
the hard work and dedication of ourmanagement and staff who achieved somuch in 2013. I would also like to express
my thanks to my fellow Directors for theircommitment and support during the year.

John Morschel, Chairman

BOARD OF DIRECTORSThis information sets out Board
Committee memberships as at
30 September 2013. Full biography
details can be found on our website:
anz.com/about-us/our-company/
executive/board-of-directors

John MorschelPaula Dwyer

Greg Clark

Chairman
DipQS, FAICD
Director since October 2004.
Chairman since March 2010.
Ex officio member of all committees.

Chair of Technology Committee
BSc (Hons), PhD, FAPS, FTSE
Director since February 2004.
Member of the Risk and Human
Resources Committees.

Peter Hay

Lee Hsien Yang

BCom, FCA, SF Fin, FAICD
Director since April 2012.
Member of the Audit, Human Resources
and Risk Committees.

Chair of Governance Committee
LLB (Melb), FAICD
Director since November 2008.
Member of the Audit and Human
Resources Committees.

MSc, BA
Director since February 2009.
Member of the Risk, Human
Resources and Technology Committees.

Graeme Liebelt

Ian Macfarlane, ACDavid Meiklejohn, AM

BEc (Hons), FAICD, FTSE, FAIM
Director since July 2013.
Member of the Risk, Human Resources
and Technology Committees.

Michael Smith, OBE

Chief Executive Officer, Executive Director
BSc (Hons) (City Lond), Hon LLD (Monash)
Chief Executive Officer since 1 October 2007.

Chair of Risk Committee
BEc (Hons), MEc, Hon DSc (Syd), Hon DSc (UNSW), Hon
DCom (Melb), Hon DLitt (Macq), Hon LLD (Monash)
Director since February 2007.
Member of the Governance and Audit Committees.

Chair of Audit Committee
BCom, DipEd, FCPA, FAICD, FAIM
Director since October 2004.
Member of the Technology and Risk Committees.

Alison Watkins

Chair of Human Resources Committee
BCom, FCA, SF Fin, FAICD
Director since November 2008.
Member of the Audit and Governance Committees.

CHAIRMAN’S REPORT | 9

CEO’S REPORTA MESSAGE FROMMICHAEL SMITH
ANZ delivered a strong, high quality
performance in 2013 demonstrating that
our super regional strategy is creating abetter bank for customers and a betterbank for shareholders. Total shareholder
return in 2013 was 32%.
Some highlights include the market share
growth we achieved in key customer
segments, particularly in Australia andAsia. Good progress was made with our
focus on productivity which saw a further
improvement in the cost-to-income ratio.
We also invested $1.3 billion in Australia,
New Zealand and Asia Pacific to produce
growth and returns for the longer-term.

DIVISIONAL PERFORMANCE*
Looking at our Divisional performance,
we continued to grow the already large
franchises we have in our home markets
of Australia and New Zealand.

In the Australia Division profit was up
11% with the strongest overall growthof the major Australian banks acrosshome lending, deposits and credit cards.
We also gained market share in commercial
banking. Customer acquisition and loyalty
is being driven through new digitalapplications such as ANZ goMoney,TM
Australia’s most popular banking app with
one million active users.

the greatest benefits for our customers,
shareholders, people and communities.
We have three areas of particular focus:

In the New Zealand Division profit in NZD
was up 29% reflecting progress in
simplifying the business, improving
productivity and building share in coremarkets. The result also saw a significant
improvement in provisions.

»D iversity and inclusion. Building themost diverse and inclusive workforce ofany major bank in our region to help us
innovate, identify new markets, connect
with customers and make better, more
informed decisions.

In the Global Wealth Division we arefocused on cross-sell, simplification anddigital innovation. Cash profit was up 36%
with a highlight being an 11% increase in
Wealth solutions held by ANZ customers.

»F inancial inclusion and capability.
Building the financial capability ofpeople across our region to promote
financial inclusion and progression ofindividuals and communities.

We also continued our profitable
expansion in Asia through an integrated
network that connects customers withfaster growing regional capital, trade
and wealth flows. Our International andInstitutional Banking Division grew profit
15%, and Institutional Asia grew profit 28%
driven by strong performances in Trade,
Markets and Cash Management.
ANZ’s balance sheet strengthened in2013 supported by management actions
to create more diversity by product,
by customer and by geography; and toprovide greater quality and predictability
through more exposure to investment
grade and multi-national customers.
Significant progress was made with
our operations and technology strategy.
The outcome was lower unit costs,
better management of risk throughstandardisation, and stronger
enterprise standards and controls.
Notably, in 2013 we absorbed businessvolume increases of up to 12% while
reducing operations expenses by 10%.

CORPORATE SUSTAINABILITY
In 2013 we also made progress with ourapproach to Corporate Sustainability.
By building sustainability into ourbusiness we can ensure that we achieve* All figures on a cash basis unless noted otherwise.

10 | 2013 SHAREHOLDER REVIEW»S ustainable development. Integratingsocial and environmental considerations
into our business decisions, products
and services to help our customers
achieve their sustainability ambitions
and deliver long term value for all
our stakeholders.

BUILDING ON OUR MOMENTUM
Our super regional strategy is a long term
strategy and our momentum in 2013means we are confident ANZ can continue
to perform well in the coming years.
We have set clear priorities within thebank to improve the customer experience,
to diversify revenues, to drive productivity
and to increase shareholder returns. As aresult, we have set new targets to reducethe cost-to-income ratio from 44.8% tobelow 43% by the end of 2016 and toachieve a return on equity of above 16%
over the same period.
These targets reflect the confidence wehave that our super regional strategy candeliver on its promise to achieve marketleading outcomes for our shareholders,our customers and for the community.

Michael Smith, CEOMANAGEMENT BOARD
Full biography details can be foundon our website:
anz.com/about-us/our-company/
executive/management

Michael Smith

Susie Babani

Chief Executive Officer
and Executive Director since
1 October 2007.

Group Managing Director,
Human Resources

Phil Chronican

Alistair Currie

Shayne Elliott

Chief Executive Officer,
Australia

Chief Operating Officer

Chief Financial Officer

Andrew Géczy

David Hisco

Graham Hodges

Joyce Phillips

Chief Executive Officer,
International &Institutional Banking

Chief Executive Officer,
New Zealand

Deputy Chief Executive Officer

CEO Global Wealthand Group Managing Director,
Marketing, Innovation and Digital

Gilles Planté

Anne Weatherston

Nigel Williams

CEO Asia PacificChief Information Officer

Chief Risk Officer

CEO’S REPORT | 11

BUSINESS PROFILE

AUSTRALIA
PHILIP CHRONICAN
CEO, AUSTRALIA

Australia is ANZ’s largest market and weserve approximately six million retailand commercial customers through our
network of around 800 branches, 193
business centres, our 24-hour contact
centre, 2,700 ATMs and leading online andmobile banking platforms. We are making
good progress on Banking on Australia,
our five-year $1.5 billion investment
program to make banking easier and put
our customers in control. This includes
building capabilities to help us deliver amore insightful and connected experiencefor our customers and our people, as
well as leveraging the local andinternational connectivity of ANZ’s Super
Regional network.

BUSINESS HIGHLIGHTS*

1.1 million
customers
now
registered
to use ANZ’s
popularmobilebanking
application
ANZ
goMoney.
TM

12 | 2013 SHAREHOLDER REVIEW»D elivered a strong financial performance,with profit before provisions up 13% andcash profit up 11%.
»A chieved above system growth1 in
Housing Lending, Household Deposits
and Consumer Cards and grew
Traditional Banking market share from
12.4%2 to 14.4%3 over the three years toAugust 20132.
» Reduced customer complaints by
10%4 and returned Retail MFI5 Customer
Satisfaction to above 80% levels6.
» Acquired 30,000 net new Corporate& Commercial Banking customers andgrew Corporate & Commercial Banking
Lending by 7% and Deposits by 4%.
» Good progress on our Banking onAustralia program:• 1.1 million customers now registered
to use ANZ’s popular mobile banking
application, ANZ goMoneyTM with53 million transactions valued at morethan $29 billion conducted this year.
• Transformed 74 branches with our new
open plan design and technologies androlled out 201 ANZ Smart ATMs.
•D eployed 1,200 iPads to Corporate& Commercial frontline bankers
to improve productivity and bring
the whole of ANZ’s Super Regional
capabilities to our customers.
• L aunched the award winning ANZ
FastpayTM merchant facility application,
allowing small business customers
to complete credit and debit cardtransactions on the go, with around
7,000 active users.
•P rovided over 170,000 hours of training
to our frontline staff, enabling insightled conversations with our customers
and better service.
• L aunched the ANZ Financial Hardshipmicrosite, enabling customers to apply
for financial hardship assistance online.
»A NZ’s progress with our customers andthe community was recognised throughawards including:• Money magazine Business Bankof the Year 2013.
• CANSTAR Best Value Australia
Agribusiness Award.
• MoneySmart Week Outstanding
Achievement award for our
MoneyMinded adult financial
literacy program. £FINANCIAL PERFORMANCE ($M)

2013

2012

MOVT %

Operating income

7,867

7,356

7%

Operating expenses(2,951)(3,002)-2%

Profit before credit impairment and income tax

4,916

4,354

13%

Provision for credit impairment

(820)

(642)

28%

Profit before income tax

4,096

3,712

10%

Income tax expense and non-controlling interest(1,223)(1,114)

10%

Profit after tax

2,873

2,598

11%

Total assets

274,533

256,805

7%

44%

45%

Contribution to group earnings* All figures on a cash basis unless noted otherwise. 1 Based on APRA statistics excluding the impact of the saleof Origin Mortgage Management Services. 2 Source: Roy Morgan Research. Base: Australia population aged 14+,
traditional banking consumer market (Deposits, Mortgages, Credit Cards & Loans), 12 months to August 2010.
3 Source: Roy Morgan Research. Base: Australia population aged 14+, traditional banking consumer market (Deposits,
Mortgages, Credit Cards & Loans), 12 months to August 2013.) 4 Monthly average of customer complaints
recorded, reduced by 10% in FY13 against second half of FY12. 5 Main Finanacial Institution 6 Source: Roy Morgan
Research. Base: ANZ Main Financial Institution Customers, aged 14+, 6 months to September 2013.

BUILDING MONEY MANAGEMENTSKILLS AND SAVINGSCASE STUDY
For 10 years we have invested significantly
in financial inclusion research,
partnerships and programs to support
people to build their money management
skills and savings. This aligns with ourbrand promise “helping people progress”.
Shafan, who moved to Australia three
years ago, had never saved. Aftercompleting our Saver Plus program,
Shafan has been steadily putting asidesavings towards his home deposit.
Saver Plus is one of the longest running,largest matched savings programs in
the world. Participants receive financial
education, personal coaching and matchedsavings up to $500. Over 5,000 people
have participated in Saver Plus this year.
“I feel a great sense of achievement
and am very proud and confident,” said
Shafan. “Without Saver Plus, I am not sure
I could have achieved this.”
Our other two financial education
programs are MoneyMinded, Australia’s
most widely-used adult financial literacy

program and MoneyBusiness, which isdesigned to build money management
skills, confidence and a savings culture
among Indigenous Australians.
As part of ANZ’s “Banking on Australia”$1.5 billion investment program, we havecommitted $20 million to help further build
money management skills and savings forvulnerable Australians and support our local
communities to progress. £» S hafan Monsoor, Saver Plus Participant

AUSTRALIA | 13

BUSINESS PROFILE
International and Institutional Banking (IIB) has a global focus on large multi-national
companies and institutions with sophisticated needs, along with a fast-growing
Commercial business and a Retail business serving affluent and emerging affluent
customers in Asia Pacific.

INTERNATIONAL &INSTITUTIONALBANKING
ANDREW GÉCZYCEO, INTERNATIONAL &INSTITUTIONAL BANKING

EQUAL
No.1
EQUAL
No.1

The division is spearheading ANZ’s super regional banking strategy, with a growing
presence and capability across Australia, New Zealand and 31 markets in Asia Pacific,
Europe and America (APEA). We now serve more than 2.07 million Institutional,
Commercial and Retail customers.
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 to grow our Institutional businessin Australia and New Zealand.

BUSINESS HIGHLIGHTS*» Delivered a strong financial performancewith cash profit up 15%.
» FX turnover grew 35% helping drive 11%
growth in the Global Markets division inline with a strong customer demand.
»A dded local loan syndications
capability in Indonesia and Japan, andenhanced USD Debt Capital Markets
credentials in Asia leading to a 300%
increase in volume.
» Short-dated trade lending grew 27%,
underpinning 6% growth in profit inTransaction Banking.

No.2» Delivering super-regional to clients,
cross border income is now 35% of
Institutional customer revenue.

2012» Recognised as a top four bank in Asia
through the Greenwich Large Corporate
Banking Survey 2013.

2013

Overall Market
Penetration1

No.2

No.2

2012

2013

RelationshipStrength Index1
1 Source:Peter Lee Associates: 2013 Large Corporate

and Institutional Relationship Banking survey for theAustralian market.

14 | 2013 SHAREHOLDER REVIEW» ANZ China obtained an A+ long term
credit rating with a stable outlook fromStandard & Poor’s, acknowledging thebusiness’ strategic importance to theGroup’s expansion plans.
» In December 2012, ANZ became the firstAustralian bank to receive approval toestablish a presence in Myanmar and in
April 2013 obtained the necessary licenceto open a representative office. The
expansion takes the number of markets
in which ANZ operates to 33 globally.
»D emonstrated our commitment
to being the best connected, mostrespected bank in the region – with
ANZ voted the No.1 provider of FX
services in Asia Pacific by financial

institutions as well as the best FX
provider in Australia by both financial
institutions and corporate treasurers,
according to Asiamoney’s 2013 FX Poll.
» Ranked the No.1 bookrunner forsyndicated loans in G3 currencies in Asia
Pacific (excluding Japan) according toThomson Reuters.
» Moved to equal No.1 position for overallmarket penetration and maintained
the No.2 rank for the RelationshipStrength Index in the 2013 Large
Corporate and Institutional RelationshipBanking survey1.
» Introduced ANZ goMoney™ to increasebanking opportunities to people in
Papua New Guinea, Samoa and theSolomon Islands.
» Piloted ANZ’s flagship financial education
program MoneyMinded to communitiesin Singapore, Philippines and Taiwan.
» Trained 392 IIB staff in Hong Kong,
Singapore, Brisbane, Sydney, Melbourne,
Perth and Auckland in social andenvironmental opportunities and risk
management, through the Sustainability
Leadership Program delivered inpartnership with WWF Australia. £* All figures on a cash basis unless noted otherwise.

INCREASING BANKINGOPPORTUNITIES FOR
CUSTOMERS IN THE PACIFIC
CASE STUDY

Up to 75% of people in the region don’t
have access to traditional banking
services, but around 85% of people aged
15 to 60 own a mobile phone.

Customers in Papua New Guinea,
Samoa and the Solomon Islands are
now able to do their banking using
their mobile phones, accessing cash
services through accredited and trained
ANZ goMoney™ merchants.

Glenda Kenga in Port Moresby, Papua New
Guinea, was one of the first customers toregister with ANZ goMoney.™ Previously“unbanked,” she now pays for goods anddeposits and withdraws money at the
ANZ goMoney™ merchant just across theroad from her market stall. Customers canalso buy mobile phone credit, transfer
money and check their account balance
and transaction history.
Promoting financial inclusion in the
Pacific is a priority for ANZ, particularly
for customers in remote and rural areas.
Since launching ANZ goMoney™ in theregion in June 2013, 36,748 customers
have registered. £» ABOVE: John Camble and Jacobeth Tomeme
with a customer.

FINANCIAL PERFORMANCE ($M)

2013

2012

MOVT %

Operating income

6,564

6,427

2%

Operating expenses(2,970)(3,069)-3%

Profit before credit impairment and income tax

3,594

3,358

7%

Provision for credit impairment

(317)

(451)

-30%

Profit before income tax

3,277

2,907

13%

Income tax expense and non-controlling interest

(847)

(796)

6%

Profit after tax

2,430

2,111

15%

Total assets

296,524

267,467

11%

37%

36%

Contribution to group earnings

INTERNATIONAL & INSTITUTIONAL BANKING | 15

BUSINESS PROFILEIn New Zealand, ANZ has been throughthe biggest change in its more than 170
years in the country.

NEW ZEALANDDAVID HISCO
CEO, NEW ZEALAND

In October 2012 the bank completed
its merger of ANZ and The National Bank by
putting all customers onto one computer
platform – probably New Zealand’s largest
business technology project.
Since then the "new" ANZ has moved
rapidly to take advantage of the one
brand and system for all its customers.
Market share in key areas such asmortgages and small business banking
has increased, customer consideration
has lifted, staff engagement is at a record
high and the cost to income ratio of thebusiness has dropped.
Customers are now seeing faster andsmoother approvals processes and service
and have access to more specialists thanever before.

Customers
are nowseeingfaster andsmootherapprovals
processes.

In the community ANZ continued tomake a difference to the lives of many
New Zealanders – from the drought relief
package for farmers and the sponsorshipof many initiatives across economy-criticalindustries, to the donations and support
given to hundreds of charities and nongovernment organisations nationwide.
All of this means that ANZ is performing
better than it ever has in a financial andnon-financial sense, with still more tocome in future.

BUSINESS HIGHLIGHTS*»C reated over 250 full service branches– the most of any bank – servicing
about 82% of New Zealand with apresence in eight more communities
nationwide. ANZ now also has themost ATMs, 706, and the most mobile
mortgage managers, 75. There are now
31 Insurance Specialists and 14 WealthSpecialists supporting frontline teams.
» S ome 53% of ANZ branches now havea Business Banking Manager, adding
5,500 new business banking customers
and opening 10,000 start-up accounts.
» S ale of EFTPOS New Zealand.
»U pgraded our market leading
mobile banking app ANZ goMoneyTM
to over 1 million customers.

16 | 2013 SHAREHOLDER REVIEW»A s leaders in the agri sector we’vecreated an in-depth online information
hub for customers that highlights
products, insights and local people tosupport their businesses. Thanks to ANZ
some 360 people established their firstfarming business during the year. As aresult of all this, ANZ has won CANSTARAgribusiness of the Year for a second
consecutive year.
»P ublished industry leading and award
winning plain English investment
statements so customers can more easily
understand what is happening with theirinvestments. An ANZ retirement hub –FutureWise – has been set up online tohelp customers plan for their retirement
and customers can check their KiwiSaver
accounts online.
» L aunched an online ANZ insurance
hub to help customers better
understand recent changes to how
insurances are calculated.
» S upported the government’s migrant
investor scheme to help investors apply
for entry to New Zealand.
» L aunched ANZ Transactive Mobile forAndroid and iPhone devices allowing
customers to remotely monitor realtime account balances, view current
and prior-day transactions, approve andrelease payments, and obtain dynamic
FX rates.
»P artnered with the Solomon Group
Education and Training Academy
to deliver MoneyMinded, ANZ’s flagshipfinancial education programme.
»R eleased our third “ANZ Financial
Knowledge and Behaviour Survey” with
the Commission for Financial Literacy
and Retirement Income following
previous research in 2005 and 2009. £* All figures on a cash basis unless noted otherwise.

IDENTIFYING GROWTH OPPORTUNITIESFOR OUR CUSTOMERSCASE STUDYAn ANZ New Zealand project has identified a combination offarming practices that successfully generate high performing,
environmentally sustainable and profitable dairy farms. These
farms employ a formal decision making process, clear objectives,a focus on profit and costs, maximum growth, minimal waste
and a risk mitigation strategy.
The findings are helping our dairy customers understand how
to increase profitability and address economic and environmental
challenges through applying intensive farming technologies.
Commercial & Agri employee Edwina Askew commented “Theproject has helped us better understand the industry and look at
how we can provide services relevant to future demand.”
New Zealand’s agricultural exports are predicted to increase by
NZ$550 billion over the next 40 years. Dairy, New Zealand’s biggest
industry, faces economic and environmental challenges impacting
on continued growth. Many of New Zealand’s 8,000 dairy farms are
considering ways to intensify their production methods.

FINANCIALPERFORMANCE ($NZD)

2013

2012

MOVT
%

Operating income

2,678

2,699

-1%

Operating expenses(1,155)(1,366)-15%

Profit before credit impairment
and income tax

1,523

1,333

14%

Provision for credit impairment

(46)

(191)

-76%

Profit before income tax

1,477

1,142

29%

Income tax expense andnon-controlling interest

(409)

(315)

30%

Profit after tax

1,068

827

29%

Total assets

95,771

92,475

4%

14%

11%

Contribution to group earnings

The “High profit low footprint” project supports our sustainable
development framework– integrating social and environmental
considerations into business decisions, products and services tohelp customers achieve their sustainability ambitions anddeliver long term value for stakeholders. Following the research
we have amended staff training and are now looking at productdevelopments to assist dairy farmers to maximise opportunities
for business growth. £NEW ZEALAND | 17

BUSINESS PROFILEANZ Global Wealth is focused on helping
our customers across the region progressby delivering innovative and compelling
financial solutions that enable them toactively engage in growing and protecting
their wealth.

GLOBALWEALTHJOYCE PHILLIPS
CEO, GLOBAL WEALTHANZ Global Wealth serves over two million
customers and manages $59 billion in
investment and retirement savings (FUM)
in Australia and New Zealand. Customers
can access ANZ’s Wealth solutions throughteams of highly qualified financial
planners and advisers, innovative online
and mobile platforms, ANZ Private Bankers
and ANZ’s branch network.

BUSINESS HIGHLIGHTS*» S olid financial performance: Global
Wealth grew profit 36%, with income
up 5% and costs down 2%.

We protect
people today
and help
them build
a bettertomorrow.

18 | 2013 SHAREHOLDER REVIEW»U nderlying business growth: Overall
FUM has grown 13% with retail life
insurance in-force premiums up
10%. These results were driven bystrong productivity improvements in
ANZ and aligned planner channels.
Retail Insurance lapse rates have also
responded to retention initiatives andlapse rates in the Australian businessremain lower than the industry average.
» I nnovative solutions growing ourcustomer base: During the year, we
introduced ANZ Smart Choice Super,
an innovative superannuation solutionthat was awarded Outstanding Value inall life stages by Canstar. There are now
more than 50,000 ANZ Smart Choice
Super customers.
»M arket leader in New Zealand:
ANZ is market leader in the provisionof retirement solutions via Kiwi Saver,growing FUM in 2013 by 51%.

»R
 esponding to regulatory reforms:
ANZ Global Wealth invested significant
resource and time responding togovernment regulatory reform in
wealth management including FoFa andStronger Super reforms. A significant
milestone was APRA’s approval of
ANZ’s MySuper licence in September for
ANZ Smart Choice Super.
» Delivery of our FY13 Accessibility
Inclusion Plan target.
Industry Awards:»2
 013 CANSTAR Outstanding Value
Awards for ANZ Smart Choice Super.
»2
 013 CANSTAR Outstanding Value
Awards for:•A NZ Home Insurance for the fifth
consecutive year.
•A NZ Direct Life Insurance.
•O neCare for Life Insurance for the sixth
consecutive year.
•A NZ Smart Choice Pension for thesecond consecutive year.
»2 013 Money Management/DEXX&R
Adviser Choice Risk Awards:
Risk Company of the Year for the fourthyear running.
»M oney magazine’s 2013 ‘Best Featured
Pension Product’ for OneAnswer Frontier.
»N ew Zealand Morningstar Award 2013
in the International Equity Category. £* All figures on a cash basis unless noted otherwise.

REDEFINING THE WAY AUSTRALIANS PLAN
AND SAVE FOR THEIR RETIREMENTCASE STUDYIn November 2012, ANZ launched an innovative
superannuation solution – ANZ Smart Choice Super –which provides an easy, convenient, low cost way
for Australians to make the most of their superannuationand manage and build their wealth.
ANZ Smart Choice Super allows customers to view theirsuperannuation on their mobile devices and features
Australia’s lowest retail fees,1 allowing customers to savemore for their retirement.
Since its launch, around 50,000 Australians have opened an
ANZ Smart Choice Super account, with 90 per cent ofthese customers now viewing their superannuation balance
online at least once a month. Over 60 per cent of ANZ Smart
Choice Super customers are under the age of 35.
Annual statements are online – avoiding traditional paperbased statements and quarterly member updates aredelivered via an innovative e-book – allowing members toaccess interactive content, education and tools.
From late 2013, ANZ’s employer clients will also be able tooffer ANZ Smart Choice Super, enabling more Australians
to benefit from ANZ’s innovative, low cost superannuation
solution and save more for their retirement. £FINANCIAL PERFORMANCE ($M)

2013

2012

MOVT %

Operating income

1,510

1,440

5%

Operating expenses

(944)

(967)

-2%

Profit before credit impairment and income tax

566

473

20%

Provision for credit impairment

(4)

(4)

0%

Profit before income tax

562

469

20%

Income tax expense and non-controlling interest

(93)

(123)

-24%

Profit after tax

469

346

36%

Contribution to group earnings

7%

6%

1 Research conducted by SuperRatings Pty Ltd, holder of Australian Financial Services Licence No. 311880. Analysis current as at July 2013, and limited to the member,administration and investment management fees of 314 retail, industry and government super funds. In conducting the analysis, the ANZ Smart Choice Super – 1960’s
diversified investment option has been compared against the main Balanced option of products contained within the SuperRatings database. Data used in the research fromsources considered reliable. It is not guaranteed to be accurate or complete. For a copy of the SuperRatings research call 13 12 87 or go to www.anz.com/superfeesgraph.

GLOBAL WEALTH | 19

BUSINESS PROFILEGLOBALTECHNOLOGY,SERVICES &OPERATIONSALISTAIR CURRIECHIEF OPERATING
OFFICER

Global Technology, Services & Operations
is ANZ’s delivery division responsible forthe delivery of technology, shared services
and operations throughout our global
footprint, including from our major delivery
hubs in Melbourne, Wellington, Bangalore,
Manila, Chengdu and Suva. The division is
also responsible for major transformation
projects and ANZ’s commercial and branchproperty portfolio.

» L aunched FastPay enabling Australiansmall businesses to process same day
settlement of card payments via an
iPhone or iPad.

Over the past year the division has
continued to drive forward its agenda
of simplification and standardisation,
accelerating achievement of the Group’s
super regional strategy. This includes
a focus on high quality, reliable andcost effective delivery of services andoperations, and establishing the next
generation of digital platforms totransform customer and staff experience.

Services

BUSINESS HIGHLIGHTS*
Technology

Establishing
the next
generationof digitalplatforms
to transformcustomerand staff
experience.

» S uccessfully completed New Zealand’s
biggest technology project with
the integration of our in-country corebanking systems.
»A NZ Transactive – our digital cash,
trade and liquidity solution – rolled out
to more customers and made available
on smartphones and tablets in 2013.
Advanced features were also deployedto Singapore, Hong Kong, Vietnam
and Cambodia, with further markets
scheduled for 2014.
» L aunched ANZ goMoneyTM in morecountries across the Asia-Pacific,
demonstrating our strong commitment
to financial inclusion for isolated
communities across the region while
also driving business growth.
»P ayment outages decreased significantly,
down 60% during 2013, as we continued
our focus on reliable, robust and securetechnology infrastructure.

»C ommenced the Australian rollout ofadvanced branch technology, including
Smart ATMs supporting instant creditingof cash, automated Teller Cash Recyclers,and video conferencing to better
connect our customers with specialists.
»A NZ continued to review sustainability
in our supply chain, screening around
300 suppliers on their social, ethical,
and environmental issues management
performance in line with our Supplier
Code of Practice.
»R enegotiation of key supplier contracts
across technology, telecommunications,banking and professional services
delivered over $180 million in savings
during FY13.
»P artnered with ANZ suppliers to identify
energy reduction opportunities as partof our focus on sustainable supply chain
management for the bank. For example,
we expanded our strategic partnershipwith print suppliers through thepurchase of carbon neutral paper.
»O pened ANZ Tower in Sydney, witha 6 Star Green Star design rating1
making it a world leader inenvironmental sustainability - adding
to our global portfolio of leading
sustainability properties.
»C ommitted $1.2 million in energy
efficient lighting across four commercial
offices, with 30% savings in lighting
energy worth around $0.3 million
per annum. This has contributed to abroader reduction in energy and gas
consumption across our offices andbranch network in Australia and
New Zealand delivering $1.5 million
per annum in energy cost savings from2011 levels.
* All figures on a cash basis unless noted otherwise.

20 | 2013 SHAREHOLDER REVIEWOperations»O perations productivity increased
18%, with transaction volumes
increasing and overall operationsdelivery cost decreasing.
» Further strengthened our business
continuity capabilities with multiple
outage simulations across our network ofdelivery hubs. Further demonstrated ourresilience during the Manila floods andWellington earthquakes by maintaining
high levels of service throughout.

IMPROVING CUSTOMEREXPERIENCE,
REDUCING COST AND
ENVIRONMENTAL
IMPACT THROUGHOFFICE CONSOLIDATIONCASE STUDY»D
 elivered ANZ’s MoneyMinded financial
education program to over 800 people
across the hubs community, with plans
to train a further 1,200 people in FY14.
This program better equips individuals
to manage their personal finances andalso builds the commercial and financial
acumen of staff by instilling a coreunderstanding of money management,planning and budgeting.
» I mproved processes and initiatives tolower print usage, reducing business as
usual paper consumption in Australia
and New Zealand by 900 tonnes;
roughly 180 million sheets of A4 paper
per annum.
»C ontinued to build on our diverse
workforce in the hubs by embracing
diversity in our recruitment approach,work environments and employee
value propositions. £In Sydney, five of our CBD locations were consolidated into two, providing
new customer-facing facilities to a higher standard, achieving productivity
efficiencies and improving our environmental performance.
The new ANZ Tower, housing the majority of our Sydney based staff, has been
designed to a 6 Star Green Star rating1 from the Green Building Council ofAustralia and offers modern, open plan, flexible workspace for staff to interact
and collaborate, as well as providing a range of customer suites.
The building design applies new technologies to deliver operational andenvironmental benefits, such as:» The building features solar panels, light sensors, extensive LED lighting andhas a tri-generation power system designed to lower overall carbon footprint.
» Sustainable materials have been used throughout the fit-out, for example,
carpeting from recycled material.
ANZ Tower is the latest of our sustainability-designed properties, complementing
our 6 Star Green Star rated1 global headquarters, ANZ Centre in Melbourne, andour regional headquarters at Ocean Financial Centre Singapore – one of thefirst buildings in Southeast Asia to receive a Platinum level LEED certification2. £1 Green Building Council of Australia base building rating.
2 LEED Core & Shell certification v2.0 as awarded by the U.S. Green Building Council.

GLOBAL TECHNOLOGY, SERVICES & OPERATIONS | 21

2013 NON-FINANCIAL PERFORMANCE OVERVIEW
THE TABLE BELOW SHOWS OUR PERFORMANCE AGAINST OUR 2013 TARGETS
TARGET

COMMENTARY ON PERFORMANCERESPONSIBLE PRACTICES
Implement across Australia our hardship awareness tools,
which will help customers in distress by enabling our staff
to identify at risk customers, and offer them targeted
advice and support.
Application: AustraliaüVAustralia: Satisfaction improved in our Retail and Commercial businesses.
Retail satisfaction1 growth was the strongest of the major banks; however,
we did not achieve our target. Institutional moved to (equal) No.1
position for overall market penetration and maintained the No.2 rank
for the Relationship Strength Index (RSI) in the 2013 Large Corporate andInstitutional Relationship Banking survey.2
New Zealand: Retail3 performance declined from 89% in 2012 to 84%,
due to changes related to merging the ANZ and National Bank Brands.
Maintained Commercial4 performance and No. 1 position for market
penetration and RSI in Institutional.

X

Australia: Target achieved
New Zealand: Resolution rate 78%

Improve customer satisfaction and achieve the No.1
or 2 position amongst major banks in our core markets for
our Retail, Commercial and Institutional businesses.
Application: Australia and New Zealand

Resolve 90% of customer complaints within five business days.
Application: Australia5 and New Zealand
Increase the propotion of lower-carbon (gas andrenewables) power generation lending in our Project
Finance book by 15-20% by 2020.
Application: Project and Structured FinanceImprove our ability to manage social & environmental risks by
specialised training for a further 1,000 lending staff and train
200 senior staff in our Sustainability Leadership Program.
Application: Group
Protect the health and safety of our staff by reducing
Lost Time Injury Frequency Rate (LTIFR) by 10% in Australia,
5-10% in New Zealand, and maintaining LTIFR of below
1 per million hours worked in our International business.
Application: Group
Screen and report on the agreement of our key supplierswith ANZ’s Supplier Code of Practice, and report on
engagement and remediation activities.
Application: Institutional Business

Almost 700 frontline staff trained and multiple initiatives launched tosupport customers, including the introduction of an online application
process and dedicated financial hardship website.

üX

This is a long term target and we are ‘on track’. Gas-fired 27%,
Coal-fired 34%, Renewables 39%.

Social & Environmental Risk Training: 997
2013 Sustainability Leadership Program: 392

X

Australia: Lost Time Injury Frequency Rate (LTIFR) rose 16%, however, forthe last 8 years, ANZ has achieved a year on year average reduction of 9%,
against the 2005 baseline (see table page 25).
New Zealand: LTIFR rose 48%. This is partly due to increased awarenessof the need to report incidences (see table page 25).
International business: Target met.

ü

Approximately 300 suppliers across IT, HR and Travel categories screened
against ANZ’s Supplier Code of Practice, with 41 identified as potential
higher risk. Work is now underway to review their polices and agree
actionable remediation plans.

BUILDING FINANCIAL CAPABILITY
Increase reach of Australia’s largest financial educationand savings program, MoneyMinded, by a further
40,000 participants.
Application: Groupü

Enrol at least 4,750 people in our Saver Plus program inAustralia to achieve our 2014 target of 14,250.
Application: Australiaü

We have reached more than an estimated 40,000 participants this year.

We have enrolled more than 5,000 participants in Saver Plus.

BRIDGING URBAN AND RURAL DIVIDES
Help increase financial inclusion by introducing mobile phonebanking in Papua New Guinea, Vanuatu, Samoa and Solomon
Islands with a view to reaching 50,000 customers in 2013.
Application: Pacific

V

Reduce the cost of remittances by increasing customer
usage of our lower cost Pacific Money Transfer Card.
Application: PacificV

Further support for the communities we operate in byvolunteering 100,000 hours globally.
Application: Group22 | 2013 SHAREHOLDER REVIEWX

We have launched mobile phone banking in Papua New Guinea, Samoa
and Solomon Islands resulting in more than 36,000 mobile phone banking
customers. Below target due to a delayed launch in Vanuatu.
We have not met this target; actions have been implemented to increasecustomer usage.
We achieved 89,289 hours volunteered, approximately 90% of target.

TARGETCOMMENTARY ON PERFORMANCEEDUCATION & EMPLOYMENT OPPORTUNITIES
Improve employee engagement to a target rate of 73% in
2013, with a long term target of 83%.
Application: GroupX

Our Engagement index assessment increased from 70% in 2012 to 72% in
2013. Employees are more satisfied, proud of ANZ, more likely to refer theorganisation to others, and more of our people intend to stay with ANZ.

Improve perceptions of “values-based leadership” to 70%,
with a long term target of 80%.
Application: Groupü

We exceeded our target of 70% on perceptions of values-based leadershipas measured in the employee "My Voice" survey, reporting a 4% increase from
67% in 2012 to 71% in 2013.

V

The overall percentage of women in management is at 38.7% 6. We
did not meet our 1% improvement target (38.8%). A low employment
growth environment, a skew towards male external recruits particularly
at entry level management, together with challenges accessing balanced
candidate pools in some business areas and some geographies, hasslowed our progress. Improvements in particular occurred at senior
management from 28.1% to 30.6%.

Achieve a 1% increase in the representation of women in
management in 2013, with a medium term goal of 40% anda long term target of 45% representation.
Application: Group

Help increase the social and economic inclusionof traditionally excluded groups and those fromdisadvantaged backgrounds, by offering 230 roles
through traineeships, graduate program andpermanent employment.
Application: Group
Play a leadership role in advancing women in society andimproving cultural diversity in business through highprofile business, government and community partnerships.
Application: Groupü

We employed 231 staff including: 68 additional employees with disability,
13 employees via the "Given the Chance" refugee employment program,
160 Indigenous people of which 92 were trainees.

ü

ANZ participates in the Male Champions of Change (MCOC) initiative
convened by the Australian Sex Discrimination Commissioner, Chief
Executive Women and Melbourne Business School’s Gender Equality
Project. We are a founding member of the annual Sustaining Women in
Business conference and the Diversity Council of Australia.
In 2013 we launched the Plus One Pledge, Supplier Multiplier andenhanced external reporting as part of our involvement in MCOC.
We remain an Employer of Choice with the Workplace Gender Equality
Agency and our external reporting is recognised as best practice by
Women on Boards.

ü

FY14 target endorsed as an absolute Group-wide Greenhouse Gas (GHG)
reduction target of 3% for emissions associated with our premises’
electricity usage.

X

Australia Energy: A 7% reduction in energy from our Retail andCommercial sites has been offset by 23% increase in Data Centres. Energy
Audits are underway in the Data Centres to mitigate future increases.
Australian GHG emissions: The 9% reduction across retail and commercial
properties has been offset by increases in Travel and Data Centres year-on-year.
NZ Customer Paper: Customer paper increased by 29% associatedwith the one-off rebranding exercise. Excluding the rebranding exercise,
customer paper decreased 15% against the base line.

X

New Zealand: Paper statements reduced by approximately 4.8 million.
Australia: Online statements progressing through systems testing,pilot launch date in Nov 13, with a full roll-out to Retail and Commercial
customers in early 2014.

SUPPORTING URBAN SUSTAINABILITY
Establish performance baseline and set a global energy
reduction target.
Application: Group
Achieve our 2013 environmental target7 in Australia
and New Zealand: greenhouse gas, premises energy,
commercial waste, water, paper and air travel.
Application: Australia and New Zealand

Reduce customer paper use by making electronic
statements and communications available to Retail andCommercial customers in Australia and New Zealand.
Application: Australia and New Zealand

PERFORMANCE KEY: ü ACHIEVED X PARTIALLY ACHIEVED OR IN PROGRESS V DID NOT ACHIEVE
1 Source: Roy Morgan Research. Base: ANZ Main Financial Institution customers, aged 14+, 6 months to September 2013 compared to 6 months to September 2012. 2 Source:Peter Lee Associates: 2013 Large Corporate and Institutional Relationship Banking survey, Australia and New Zealand.3 Source: Camorra Research Retail Market Monitor. Base:ANZ main bank customers aged 15+, rolling 6 months moving average to September. Based on responses of excellent, very good and good. 4 Source: TNS, Business FinanceMonitor. Base: ANZ main bank customers with $5m - $150m turnover, rolling 12 months moving average to September. Based on responses of excellent, very good and good.
5 Retail & Commercial complaints recorded, excluding those made to the Financial Ombudsman. 6 This is an adjustment from the prior reporting years and now includes
people on parental leave. 7 Against 30 September 2011 base line.

2013 NON-FINANCIAL PERFORMANCE OVERVIEW | 23

FIVE-YEAR SUMMARYFINANCIAL

FIVE-YEAR SUMMARY 2009–2013

2013

2012

2011

2010

2009

Net interest income2 ($m)

12,772

12,11011,50010,862

9,890

Other operating income2 ($m)

5,606

5,738

5,385

4,920

4,477

Operating expenses ($m)(8,236)(8,519)(8,023)(6,971)(6,068)

Profit before provisions and income tax ($m)

10,142

9,329

8,862

8,811

8,299

Provision for credit impairment ($m)

(1,197)(1,258)(1,220)(1,820)(3,056)

Income tax expense and non-controlling interest ($m)(2,447)(2,241)(2,175)(1,966)(1,471)

Cash / Underlying profit1 ($m)

6,498

5,830

5,467

5,025

3,772

Adjustments to arrive at statutory profit1 ($m)

(226)

(169)

(112)

(524)

(829)

Profit attributable to shareholders of the Company ($m)

6,272

5,661

5,355

4,501

2,943

Assets2,3 ($m)

702,991

642,127604,213531,703476,987

Net Assets ($m)

45,61541,22037,954

34,15532,429Common Equity Tier 14 (%)

8.5

8.0

8.5

8.0

9.0

Common Equity Tier 1 – Internationally Harmonised Basel 35 (%)

10.8

10.0

n/a

n/a

n/a

Return on average ordinary equity 6 (%)

14.9

14.6

15.3

13.9

10.3

Return on average assets2,3 (%)

0.9

0.9

0.9

0.9

0.6

Cost to income ratio1 (%)

44.8

47.7

47.5

44.2

42.2

31.5

35.4

-12.6

1.9

40.3

84,45067,25551,31960,61461,085

164

145

140

126

102

30.78

24.75

19.52

23.68

24.39

Points of representation7

1,274

1,337

1,381

1,394

1,352

Number of shareholders8

468,343438,958

442,943

411,692

396,181

FINANCIAL PERFORMANCE1FINANCIAL POSITIONSHAREHOLDER VALUE – ORDINARY SHARES
Total return to shareholders (%)
Market capitalisation ($m)
Dividend (cps)
Share price – 30 September closing price ($)

OTHER INFORMATION

1 Since 1 October 2012, the Group has used Cash Profit as a measure of the result of the ongoing business activities of the Group enabling shareholders to assess Group anddivisional performance against prior periods and against peer institutions. For 2013 and 2012 statutory profit has been adjusted for non-core items to arrive at Cash Profit.
For 2009 – 2011 statutory profit has been adjusted for non-core items to arrive at Underlying Profit, which like Cash Profit, is a measure of the ongoing business performanceof 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 The reporting treatment of derivative related
collateral posted/received and the associated interest income/expense changed in 2012 and 2011 comparatives were restated. The 2009 and 2010 comparative information
has not been restated. 3 The 2010 year onwards includes assets resulting from the acquisition of ANZ Wealth Australia, OnePath NZ, Landmark Financial Services and certain
assets from the Royal Bank of Scotland. 4 Calculated in accordance with APRA Basel 3 requirements for 2013 and 2012. Comparatives for 2009 to 2011 are calculated on an
APRA Basel 2 basis. 5 ANZ’s interpretation of the regulations documented in the Basel Committee publications “Basel III: A global regulatory framework for more resilientbanks and banking systems” (June 2011) and “International Convergence of Capital Measurement and Capital Standards” (June 2006). 6 Average ordinary equity excludes
non-controlling interests and preference shares. 7 Includes branches, offices, representative offices and agencies. 8 Excludes employees whose only ANZ shares are held in
trust under ANZ employee share scheme.

24 | 2013 SHAREHOLDER REVIEWNON-FINANCIAL

FIVE-YEAR PERFORMANCE SUMMARY 2009–2013

2013

2012

2011

2010

2009

80.2

76.0

79.8

79.9

76.5

84

89

88

86

86

» Australia

2

2

1

1 (equal)

2» New Zealand

1

1

1

1

3

47,512

48,23950,2974

47,09937,687

72

70

70

64

665

Total women in management (%) 6

38.7

37.8

38.2

38.4

36.8

Investment in learning and development ($m)

46.0

46.2

59.4

51.0

46.5

» Australia

1.8

1.5

2.1

2.2

1.9

Australia7

0.7

1.2

1.5

1.7

1.4

» New Zealand

2.5

0.9

1.8

2.2

1.5

» APEA8

0.7

0.3

–

–

–

» India9

0.1

0.3

0.0

0.0

0.60

89,28986,75891,41090,65158,097

163,20616

163,91212,16

166,71712

170,299

161,985

OUR CUSTOMERSRetail customer satisfaction» Australia1 (%)» New Zealand2 (%)
Institutional Relationship Strength Index ranking3

OUR PEOPLE
Total employees (FTE)
Employee engagement survey results (%)

Lost Time Injury Frequency Rate

OUR COMMUNITIESVolunteer hours

OUR ENVIRONMENT
GHG emissions (tonnes CO2 -e)10» Australia11» New Zealand

11,82813,16

13,36312,16

11,84312

12,42913,700» Asia Pacific, Europe and America

26,62713,16

30,95712,16

30,18922,725–» Australia

0.163160.16316

0.167

0.211

0.178

» New Zealand

0.12915,16

0.15516

0.125

0.148

0.146

Paper consumption (tonnes per FTE)14

1 Source: 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 (2013). The Nielsen Company Consumer Finance Monitor (2012, 2011, 2010, 2009). 2009 – 2012 excludes National Bank brand. Base: ANZ main bankcustomers aged 15+, rolling 6 months moving average to September. Based on responses of excellent, very good and good. 3 Source: Peter Lee Associates 2013 Large
Corporate and Institutional Relationship Banking Survey, Australia & New Zealand. 4 2011 FTE numbers adjusted to include APEA contractors. 5 Interim survey andchange in provider; 2009 results onwards are not comparable with previous years. 6 This is an adjustment from the prior reporting years and now includes people onparental leave. 7 LTIFR only includes LTIs that result in claims. 8 APEA started to calculate LTIFR in 2011. 9 India started to calculate LTIFR in 2009. 10 Scope 1 & 2 only. A
full GHG profile (scope 1, 2 & 3) will be available on anz.com. 11 Australia 2013 GHG emissions have been assured by KPMG. 2013 GHG data for NZ and APEA is pending
external verification. A full, verified environmental report will be available on anz.com. 12 Figure updated based on actual reported data and updated emission factors
for New Zealand. 13 2013 GHG data for NZ and APEA is pending external verification. A full, verified environmental report will be available on anz.com. 14 Includes bothoffice and print (customer) paper. 15 Reported number relates to business as usual paper and does not include paper associated with a one-off rebranding initiativecompleted in 2013. 16 The reporting year for 2012 and 2013 GHG and Paper per FTE is 1 June – 31 July. This is an adjustment from the prior reporting years period of 1 Oct
to 30 Sept to align to environmental regulatory reporting requirements.

FIVE-YEAR SUMMARY | 25

NON-EXECUTIVEDIRECTORS’REMUNERATIONCURRENT NON-EXECUTIVEDIRECTORSJ Morschel

G Clark

P Dwyer1

P Hay

H Lee

THE BOARD IS RESPONSIBLE TO SHAREHOLDERS FOR THE GOVERNANCE
OF ANZ. IT APPROVES THE STRATEGIC DIRECTION, FINANCIALOBJECTIVES AND APPROPRIATE RISK APPETITE FOR THE ORGANISATIONAND OVERSEES ANZ’S OPERATIONS AND FINANCIAL PERFORMANCE.

FINANCIALYEARSHORT-TERM
NED BENEFITS ($)

POSTEMPLOYMENT ($)

TOTALREMUNERATION ($)

2013

780,336

16,796797,132

2012

775,000

15,949790,9492013

300,000

16,796

316,7962012

300,000

15,949315,9492013

297,500

16,796314,2962012

136,250

8,061

144,3112013

302,500

16,796319,2962012

302,500

15,949318,449

2013

280,000

16,796

296,7962012

280,000

15,949295,949

2013

70,0004,444

74,444

2013

314,500

16,796331,2962012

314,500

15,949330,449

2013

321,485

16,796338,2812012

321,322

15,949337,2712013

312,500

16,796329,2962012

312,500

15,949328,4492013

2,978,821

138,8123,117,633

2012

2,742,072

119,704

2,861,776

G Liebelt2

I Macfarlane

D Meiklejohn

A Watkins

TOTAL OF ALL
NON-EXECUTIVEDIRECTORS

1 P Dwyer commenced as a Non-Executive Director on 1 April 2012 so remuneration reflects amounts received for the partial service for the 2012 year.
2 G Liebelt commenced as a Non-Executive Director on 1 July 2013 so remuneration reflects amounts received for the partial service for the 2013 year.

26 | 2013 SHAREHOLDER REVIEWREMUNERATIONOVERVIEW
THE FOLLOWING PROVIDES A
SUMMARY OF THE REMUNERATIONFOR THE CHIEF EXECUTIVE OFFICER(CEO) AND DISCLOSED EXECUTIVES– KEY MANAGEMENT PERSONNEL.*A MORE DETAILED REMUNERATIONREPORT IS 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.

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

The following summary has been
prepared to provide shareholders with aview of remuneration structure and how
remuneration was paid or communicatedto the CEO and Disclosed Executives for2012 and 2013 and includes:» T he actual amounts of grants made in
respect of the years 2012 and 2013;»A ny amounts which had to be deferredin respect of the years 2012 and 2013;
and» T he actual amounts received in respectof the years 2012 and 2013.
* The term Key Management Personnel is defined
under the Corporations Act.

» Ivan Lendl, ANZ Tennis Ambassador.

REMUNERATION OVERVIEW | 27

NON-STATUTORYREMUNERATION TABLE
CEO AND CURRENTDISCLOSED EXECUTIVES
M Smith3
Chief Executive Officer

P Chronican4
Chief Executive Officer, Australia

S Elliott5
Chief Financial Officer

A Géczy6
Chief Executive Officer,
International & Institutional Banking

D Hisco7
Chief Executive Officer, New Zealand

G Hodges8
Deputy Chief Executive Officer

J Phillips9
Chief Executive Officer, Global Wealth andGroup Managing Director, Marketing, Innovation and Digital

N Williams10
Chief Risk Officer

FIXED

FINANCIALYEARREMUNERATION1 ($)

NON MONETARYBENEFITS ($)

CASH ($)

2013

3,150,000

145,6812,050,000

2012

3,150,000

121,900

1,900,000

2013

1,300,000

15,6691,050,000

2012

1,300,000

7,590

850,0002013

1,250,000

15,6691,300,000

2012

1,187,000

40,853

1,100,000

2013

50,000––2013

1,000,000

411,398

1,050,000

2012

1,000,000

309,757

900,000

2013

1,000,000

27,404

675,000

2012

1,000,000

13,789650,000

2013

1,000,000

5,500

700,000

2012

580,000

5,500

377,000

2013

1,000,000

248,328

850,000

2012

790,000

32,675533,250

1 Fixed remuneration was unchanged for Disclosed Executives year on year. The difference for S Elliott year on year reflects his promotion in 2012 where remuneration wasincreased to reflect expanded responsibilities. The differences for J Phillips and N Williams year on year reflects partial service as a Disclosed Executive in 2012.

2 The possible range of STI is between 0 and 2 times target STI. The actual STI received is dependent on ANZ and individual performance (refer to Section 6.2.1, Short Term

Incentive (STI) of the 2013 Remuneration Report for more details). 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.
3M Smith - The 2013 LTI relates to the LTI grant that is proposed for 2013, subject to approval by shareholders at the 2013 Annual General Meeting. The 2012 LTI relates
to the LTI grant approved by shareholders at the 2012 Annual General Meeting. Non monetary benefits include car parking, life insurance and taxation services. In 2013
equity to the value of $2,054,542 vested in respect of previously disclosed deferred STI granted in 2010 and 2011. In addition, equity to the value of $6,419,352 vested in
respect of previously disclosed deferred LTI granted in 2007, as approved by shareholders.
4P
 Chronican - Non monetary benefits include car parking and taxation services. In 2013 equity to the value of $712,255 vested in respect of previously disclosed deferred
STI granted in 2010 and 2011. In addition, equity to the value of $1,440,697 vested in respect of deferred LTI granted in 2009.
5S
 Elliott - 2012 fixed remuneration represents what was paid during the year (an increase to $1,250,000 occurred at date of promotion, 1 March 2012 - this figure has
been referenced to calculate 2012 STI as a % of target). Non monetary benefits include car parking and taxation services. In 2013 equity to the value of $588,926 vested in

28 | 2013 SHAREHOLDER REVIEW

STI

LTI

TOTAL REMUNERATIONTOTAL ($)

AS % OFTARGET

AS % OFMAXIMUM
OPPORTUNITY2TOTAL(DEFERRED AS
EQUITY) ($)

RECEIVED ($)

DEFERREDAS EQUITY ($)

TOTAL ($)

1,950,000

4,000,000

127

63

3,150,000

5,345,681

5,100,000

10,445,681

1,800,000

3,700,000

117

3,150,000

5,171,900

4,950,000

10,121,900

950,000

2,000,000

128

700,000

2,365,669

1,650,000

4,015,669

750,000

1,600,000

103

650,000

2,157,590

1,400,000

3,557,590

1,200,000

2,500,000

167

1,000,000

2,565,669

2,200,000

4,765,669

1,000,000

2,100,000

140

1,200,000

2,327,853

2,200,000

4,527,853

–

–

–

–

625,000

50,000625,000

675,000

950,000

2,000,000

167

83

699,200

2,461,398

1,649,200

4,110,598

800,000

1,700,000

142

500,000

2,209,757

1,300,000

3,509,757

575,000

1,250,000

104

500,000

1,702,404

1,075,000

2,777,404

550,000

1,200,000

100

500,000

1,663,789

1,050,000

2,713,789

600,000

1,300,000

108

500,000

1,705,500

1,100,000

2,805,500

319,000

696,000

100

290,000

962,500

609,000

1,571,500

750,000

1,600,000

133

750,000

2,098,328

1,500,000

3,598,328

454,250

987,500

104

474,000

1,355,925

928,250

2,284,175

DEFERREDAS EQUITY ($)

64

83

52

54

89

respect of previously disclosed deferred STI granted in 2010 and 2011. In addtion, equity to the value of $995,424 vested in respect of deferred LTI granted in 2009.

6A
 Géczy - A Géczy commenced in role 16 September 2013 so fixed remuneration reflects amounts received for the partial service for the 2013 year.

7D
 Hisco - Non monetary benefits includes expenses related to his relocation to New Zealand, car parking and taxation services. In 2013 equity to the value of $680,264

vested in respect of deferred STI granted in 2010 and 2011. In addition, equity to the value of $796,335 vested in respect of deferred LTI granted in 2009.

8G
 Hodges - Non monetary benefits include car parking and taxation services. In 2013 equity to the value of $530,208 vested in respect of previously disclosed deferred STI

granted in 2010 and 2011. In addition, equity to the value of $995,424 vested in respect of previously disclosed deferred LTI granted in 2009.

9J
 Phillips - J Phillips commenced in role on 1 March 2012 so 2012 remuneration (fixed, STI and LTI) reflects amounts received for partial service for that year. Non monetary

benefits include taxation services. In 2013 equity to the value of $461,408 vested in respect of previously disclosed deferred STI granted in 2010 and 2011. In addition,
equity to the value of $895,892 vested in respect of previously disclosed LTI granted in 2009.
10 N
 Williams - N Williams commenced in role on 17 December 2011 so 2012 remuneration (fixed, STI and LTI) reflects amounts received for the partial service for that year.
Non monetary benefits include relocation expenses, car parking and taxation services. In 2013 equity to the value of $731,254 vested in respect of previously disclosed
deferred STI granted in 2010 and 2011. In addition, equity to the value of $531,318 vested in respect of previously disclosed LTI granted in 2009.				
											NON-STATUTORY REMUNERATION | 29

HANDY 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

AUSTRALIAINVESTOR 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

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

30 | 2013 SHAREHOLDER REVIEW

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

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 STATESBNY Mellon Depositary Receipts
P.O. Box 43006
Providence, RI 02940-3006
Callers outside USA: +1-201-680-6825
Callers within USA: 1-888-269-2377
shrrelations@bnymellon.com
www.bnymellon.com/shareowner

OUR INTERNATIONALPRESENCE:» Australia» New Zealand» Asia - Cambodia, China, Hong Kong,
India, Indonesia, Japan, Korea, Laos,
Malaysia, Myanmar, the Philippines,
Singapore, Taiwan, Thailand, Vietnam» Europe» Pacific - American Samoa, Cook Islands,
East Timor, Fiji, Guam, Kiribati, New
Caledonia, Papua New Guinea, Samoa,
Solomon Islands, Tonga, Vanuatu» Middle East
» United Kingdom» United States of America

DATE

EVENT

1 May 2014

Interim Results Announcement

8 May 2014

Interim Dividend Ex-Date

14 May 2014

Interim Dividend Record Date

1 July 2014

Interim Dividend Payment Date

31 October 2014

Annual Results Announcement

6 November 2014

Final Dividend Ex-Date

12 November 2014

Final Dividend Record Date

16 December 2014

Final Dividend Payment Date

18 December 2014

Annual General Meeting (Melbourne)»G roup CEO, Mike Smith, CEO Global Wealth,

Joyce Phillips and CEO China, Charles Li areare joined by ANZ Tennis Ambassador,
Rod Laver and participants of the ANZ JuniorTennis program in Shanghai.

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