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PO Box 540, Wellington
New Zealand

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For Immediate Release (3pp)
Monday 25 February 2008

ANZ National posts strong performance in first threemonths
ANZ National Bank today announced an after tax profit of $310 million for the three months
ended 31 December 2007. After adjusting the headline profit for non-core items1 such as thegain from selling Fleetpartners in 2006, net profit after tax grew 12% on the same period lastyear.

December 2007 Three Month Performance Summary• Headline NPAT of $310 million was down from the $350 million earned in the December
2006 quarter, with the prior period benefiting from the $79 million post tax gain from thesale of the FleetPartners business.
• NPAT adjusting for non-core items1 of $300 million, a 12% increase over the December
2006 period ($269 million).
• Underlying Profit Before Provisions of $471 million, an 11% increase over the December
2006 period ($426 million).
• The Provision for credit impairment charge of $32 million remains at very low levels, andoverall credit quality remains strong across all segments.
• Underlying cost-to-income ratio decreased to 42.6% compared to 44.0% in the December
2006 period.
• Net loans and advances were up NZ$10,232 million (13% for the period) on December
2006. Total customer deposits were up NZ$3,797 million (9% for the period) on December
2006.

There were strong performances by the Rural, Corporate and UDC businesses and solid
performances by the Retail and Institutional businesses. Market share is holding up well acrossthe board, with market share gains achieved in mortgages, consumer finance, rural and in thebusiness markets.

1 Non-core items are: the results of discontinued structured finance transactions, discontinued Truck Leasing Limited

operations, the $79 million post-tax gain from the sale of FleetPartners, ineffective hedge fair value gains/losses.
ANZ National Bank Limited

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Growth of underlying net operating income of 8% was driven by contributions across all
businesses. Net interest income growth was driven by strong lending and deposit growth. Netloans and advances increased by $10.2 billion or 13% over December 2006, to $89.9 billion(mortgages grew by 14% to $51.4 billion). Total deposits increased by 11% over December
2006, with customer deposits increasing by 9% to $45.8 billion. Net interest income wasimpacted by a reduction in income from derivatives positions which was offset by an increase in
net trading gains.
Expenses were 4% higher in the December 2007 period, driven mainly by an increase inpersonnel costs due to annual increases in salaries, an increase in the number of customerfacing staff and investment in business initiatives which have been partly offset by control ofdiscretionary expenditure.
The Provision for credit impairment charge of $32 million remains at very low levels, and overall
credit quality remains strong across all segments. Customer arrears remain at very low levels,
despite a modest upward trend in arrears in the quarter.

ANZ National Bank Chief Executive Graham Hodges said: “The Bank has continued to gain

market share in core business segments despite very competitive market conditions. Overall,financial performance has been very solid in the face of slowing activity in the housing andconsumer finance markets and the rising cost of funding due to turmoil in the global credit
markets.”“In 2008 our focus remains on strengthening and growing our core customer businesses,
improving our efficiency and maintaining strength in our balance sheet and liquiditymanagement.”“With higher interest rates still flowing through to borrowers and depositors, we expect acontinued slowing in economic activity over the course of 2008.”

For media enquiries contact:

For analyst enquiries contact:

Virginia Stracey-Clitherow

Cameron Davis

Senior Manager External Communications

Senior Manager Investor Relations

Tel: +64 9 374 4051or 027 561 8995

Tel: +61 3 9273 5629

Email: straceyv@anz.com

mail: cameron.davis@anz.com

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MEDIA RELEASE (3 of 3)
APPENDIX – KEY CALCULATIONS OF UNDERLYING RESULT
3 MTH

3 MTH

DEC 07

DEC 06$m$m

Headline net operating income

836

763

Adjusted for: Mark to market of ineffective hedges

(15)

(2)

Underlying net operating income

821761

Operating expenses

350

335

Underlying profit before provisioning

471

426

Provision for credit impairment

3225Profit after income tax from continuing operations

310271(10)(2)

300

269

Continuing operations
Net operating income

Mark to market of hedges
Underlying profit after income tax

ANZ National Bank Limited