Media Release
ANZ 2014 Half Year Result- good result demonstrates strategy is delivering
diversified growth and stronger returns Performance Highlights – 1H 2014 compared to 1H 2013 (PCP)1•

Statutory profit $3.4 billion up 15%; Cash profit2 $3.5 billion up 11%.

•

Fully franked Interim Dividend of 83 cents per share an increase of 14%.

•Income up 3.6% and expenses up 1.7% (FX adjusted).

•Cost to income ratio improved a further 20 basis points to 44.3%.

•Return on equity steady at 15.5% with earnings per share up 10% to128.7 cents.

•Customer deposits grew 13%, net loans and advances up 12%.

•Provision charge of $528 million, 12% lower.

ANZ Chief Executive Officer Mike Smith said: “This is a good set of results. They
demonstrate consistent progress with ANZ’s long-term strategy to grow in our corefranchises in Australia and New Zealand, to build a significant and profitablefranchise in Asia Pacific, and to establish common infrastructure and processes that
improve productivity and reduce risk.
“The diversification this strategy provides is now delivering a differentiatedproposition for our customers and improved returns for shareholders.
“Our international business, particularly Asia, is firing on all cylinders with revenueand profits again growing strongly, and a sustained improvement in returns. Profits
from International and Institutional in Asia Pacific, Europe and Americas (APEA) areup 43% based on significant growth in customer numbers and in products that
support regional trade and investment flows such as foreign exchange, cash
management and trade finance.
“Since we launched our strategy six years ago, the compound annual growth rate inearnings from Asia has been 37% and ANZ is now being consistently rated a top 4
Corporate Bank in Asia by Greenwich Associates3.
“In Australia we are seeing ongoing benefits emerge from the investment in ourBanking on Australia program which includes new digital solutions for our customers.
We have developed greater scale based on market share growth in home lending,small business lending and retail deposits. Business confidence in Australia isrecovering more slowly than expected however, and in some segments growth
remains subdued with competition placing pressure on margins. Costs were carefully
managed in this environment.

1 All comparisons are Half Year to 31 March 2014 compared to Half Year to 31 March 2013 and on a cash basis unless otherwise noted.
2 Statutory profit has been adjusted to exclude non-core items to arrive at Cash profit, the result for the ongoing activities of the Group.
3 Greenwich Associates 2013 Asian Large Corporate Banking Study

“In New Zealand after several years of hard work our business is in a winning
position. ANZ’s move to a single brand and technology platform together with New
Zealand’s economic recovery saw volume growth, improved productivity and lowerprovisions.
“Global Wealth continues to focus on improving the customer experience with wealthsolutions increasingly integrated with our banking offering and more options for self
directed customers. Our revenue performance was positive, underpinned by strong
growth in funds under management, favourable claims and lapse experience alongwith growth in Private Wealth.
“Across the Group, operational and risk outcomes continue to be strong. Operational
productivity continues to improve, we increased the volume of transactions globallyby around 8% on average while reducing operations costs 4% (FX adjusted) on theprior year.
“Management actions are driving further improvements in the quality of the lending
book. In International and Institutional Banking 77% of Institutional customers are
now rated investment grade up from 60% in 2008, and this continues to drive asignificant reductions in Group impaired assets.
“Our focus on the customer and productivity program coupled with momentum fromour diversified growth opportunities has set us up for a good performance this year,”
Mr Smith said.
PERFORMANCE BY DIVISION4
AUSTRALIA
Building on a strong performance in 2013, the Australia Division grew profit 5%,
reflecting 4% income growth, a 2% increase in expenses and a 4% increase in theprovision charge. Lending grew 6% with customer deposits up 7%.
ANZ had the strongest home loan growth of the major banks over the past year andhas grown home loans at above system for 17 consecutive quarters. Small BusinessBanking has performed particularly strongly with lending up 16%. To date ANZ haslent $1.2 billion to new Australian small businesses as part of our $2 billion pledge,
while maintaining credit quality.
Execution of the Banking on Australia program is building business momentum.
Simpler products, streamlined processes and improving distribution capability has
seen growth in customer numbers. We’ve brought 110,000 net new customers on
board across Retail and Commercial in the last year while simultaneously reducing
average monthly customer complaints by 9%.
Back office efficiency programs, increased training and iPad enablement haveincreased frontline Commercial team customer contact by 20%. ANZ is now equal
first in Commercial customer satisfaction, up from fourth and customer numbers areup 26,000 year on year.
We have strengthened our position in mobile and digital channels. More than half ourcustomers are digital users including 1.1 million active ANZ goMoney users with $78billion in goMoney transactions processed to date and we have rolled out 400 Smart
ATMs across the branch network. Commercial FastPay transactions have grown at acompound monthly rate of 43% since launch in October 2012.

4 All comparisons are Half Year to 31 March 2014 compared to Half Year to 31 March 2013 and on a cash basis unless otherwise noted.

INTERNATIONAL AND INSTITUTIONAL BANKING (IIB)5International and Institutional Banking profit grew 9% with income up 4% andexpenses up 3%, along with further credit quality improvements driving provisions
down 18%. The business continues to diversify its earnings with 52% of income now
coming from outside Australia and New Zealand and cash profit from APEA up 31%.
Ongoing focus on higher return less capital intensive flow products delivered volume
increases in Foreign Exchange turnover (up 37%), Cash Management deposits (up20%) and funded Trade and Supply Chain (up 6%).
The Global Markets business which services customers Foreign Exchange, Interest
Rate management and Commodities needs, delivered another strong result withincome up 5% primarily driven by customer sales. Income from servicing customers
in Asia increased by 34% with particularly strong sales in Foreign Exchange.
Institutional and Commercial customer numbers grew 12%. Our strong relationshipfocus is being recognised in key customer surveys, including the Greenwich
Associates 2013 Asian Large Corporate Banking Study in which ANZ has achieved thefastest growth in ranking in the study’s history and a consistent top 5 outcome overthe past 3 years, including a top 4 in the last two years.6
Targeted growth in Asia Pacific is delivering a shorter duration, lower risk balance
sheet with just under half of our Institutional lending assets in Asia Pacific being
Trade Finance related.
NEW ZEALAND (all comparisons are in NZD)The New Zealand Division grew profit 21%. Market share growth, productivity andcredit quality improvements were key features of the result with income up 3%,
expenses down 6% and the provision charge declining by $73 million. Lending grew
5% with customer deposits up 7%.
Under a single ANZ brand the business is now beginning to leverage its scale while
also improving customer experience. Brand consideration is at an all time high andleads the major banks. ANZ is now number one for new mortgages in all of thelarger New Zealand cities including Christchurch and Auckland.
Our Commercial business has grown across all regions with overall growth fasterthan system year to date. Small Business Banking has been particularly strong, up
14% driven by growth in customer numbers (up 29% on the prior year).
We are investing in digital capability to grow customer numbers and increasecustomer satisfaction and to improve our frontline capability and productivity. Active
ANZ goMoney users are up 96% with the App rated the number one Finance app in
both the Apple App store and on Google Play7. In Commercial, ANZ FastPay has hadover 4,000 downloads since its launch in December 2013. Over the countertransactions in branches have reduced by 11% over the year as customers takeadvantage of our self service technology including Smart ATMs.
GLOBAL WEALTHThe Global Wealth Division grew profit 11% with operating income up 8% andexpenses up 7%. Underlying performance was strong driven by growth in funds
under management (FUM) and inforce insurance premiums, as well as an improved

5 All figures are FX adjusted
6 Greenwich Associates 2013 Asian Large Corporate Banking Study
7 Refers to the New Zealand App Store and Google Play sites. ANZ is the top ranked free finance App.

claims and lapse experience, with retail lapse rates in Australia declining a further
120 bps across the year.
Global Wealth is focused on making it easier for customers to connect, protect andgrow their wealth using simple, direct solutions such as ANZ Smart Choice Super
which now has over 270,000 customers and continues to build momentum. Wealthsolutions are increasingly being integrated into broader customer banking options
with wealth solutions held by ANZ customers up 10% across the year.
Private Wealth grew operating income by 28%, with customer deposits up 26% andlending up 4%.
CREDIT QUALITY
The quality of the loan book continues to strengthen with the provision charge of$528 million 12% lower.
Gross impaired assets decreased 23%. Impaired assets are down 32% over the last
two years, and are lower than at any point since September 2008 despite 46%
growth in the lending book in that time8. While ANZ continues to expect that theprovision charge for FY14 will be around 10% lower than for FY139 it maintains astrong provision balance.
CAPITALANZ remains well capitalised with an APRA Common Equity Tier One ratio at 31
March of 8.33% or 10.5% on an internationally harmonised Basel 3 basis.
DIVIDEND
The fully franked dividend of 83 cps, up 14%, equates to a payment of $2.3 billion toshareholders. The increased dividend reflects our stronger performance and a
gradual rebalancing towards a more even split between the Interim and Final
Dividend amounts, maintaining a payout ratio towards the upper end of the 65 to
70% of Cash Profit range.
For media enquiries contact:
Paul Edwards
Group GM, Corporate Communications
Tel: +61-3-8654 9999 or +61-434070101
Email: Paul.Edwards@anz.com

Stephen Ries
Head of Media Relations
Tel: +61-3-8654 3659 or +61-409655551
Email: Stephen.Ries@anz.com

For investor and analyst enquiries contact:
Jill Craig
Ben HeathGroup GM, Investor Relations
Senior Manager, Investor Relations
Tel: +61-3-8654 7749 or +61-412Tel: +61-3-8654 7793 or +61-435047448
655033
Email: Jill.Craig@anz.com
Email: Ben.Heath@anz.com

8 Net lending assets increased 46% from $349.85 billion to $509.25 billion between 30 September 2008 and 31 March 2014.
9 The ANZ Group Full Year 2013 provision charge was $1.197 billion.