Media Release
For release: 11 February 2014

ANZ Trading Update – 3 months to 31 December 2013
- good start to 2014, on track to deliver continued improvement in businessgrowth and financial performance ANZ today announced an unaudited cash profit1 of $1.73 billion for the three months to end December
2013, up 13% on the same period last year (PCP). Unaudited statutory net profit was $1.64 billion.
ANZ Chief Executive Officer Mike Smith said: “ANZ’s distinctive strategy based on growth in ourdomestic franchises, growth in Asia, and strong operational and productivity disciplines is continuing todeliver a consistent improvement in business growth and financial performance.
“The Australia Division again grew market share in both Retail and Corporate and Commercial during
the quarter while making further investments through the Banking on Australia program to improve
our customers’ experience. In New Zealand we consolidated our market-leading position while
producing further benefits from our simplification program. The Global Wealth Division continued toimprove business performance through productivity gains and increased sales of wealth solutions tobank customers.
“In the International and Institutional Banking (IIB) Division, Global Markets, Trade and CashManagement have performed strongly particularly in Asia where a number of our country operationsdelivered double-digit growth in revenue including Singapore, China and Hong Kong.
“ANZ’s business strategy has also led to ongoing improvements in the quality of our lending book.
Together with the outlook for continued low interest rates and low levels of corporate leverage we now
expect the total FY14 provision charge is likely to be around 10% lower than FY132.
“The bottom line is that we have made a good start to 2014. There remain a number of challenging
issues in the global economic environment however these are now largely more predictable. Our
performance in the first quarter means we are on track to deliver a solid 2014” Mr Smith said.
Group Overview•

Trading conditions have been largely consistent with the second half of FY13 with modest system
credit growth but some volatility in financial markets driving increased customer volumes in theGlobal Markets business particularly in Foreign Exchange (FX).

•The Group’s financial performance was in line with guidance provided at the time of the FY13results. Assuming no change in FX rates, annual revenue growth for FY14 would be between 4%
and 5%, expense growth around 2% and the risk profile remaining stable3.

•Actual revenue growth was above the guidance range but on a FX adjusted basis was in line withguidance. Expenses also increased above guidance but primarily due to changes in FX rates and on
a FX adjusted basis were in line. The provisions charge reflected improving credit quality.

1 The main difference between statutory and cash earnings relates to fair value changes arising from economic hedging activities
2 The total provision charge for FY13 was $1.2 billion
3 See FY13 results slides 11 and 29 for performance priorities and guidanceAustralia and New Zealand Banking Group Limited ABN 11 005 357 522

•Customer deposits increased 4%, with net loans and advances up 3% from the end of FY134.
Deposit growth has been strong across all geographies however lending demand has varied acrossthe Group.

•In the Australia Division home lending has grown above system for the past 16 quarters. In theCorporate and Commercial business while lending demand in the Small Business Banking andCorporate sectors has been reasonable, Business Banking and Regional Business Banking demandhas been softer.

•In the New Zealand Division we have continued to grow our home loan book strongly through bothBusiness Banking and Retail channels with strong performance in the under 80% loan to value
segment.

•Within IIB Transaction Banking performed well with Cash Management volumes growing and Tradevolumes remaining robust. Global Markets had a strong quarter led by customer sales which
delivered 53% of the first quarter’s markets income. FX revenues were strong particularly in Asia
Pacific and Balance Sheet trading benefited from tightening credit spreads. The first quarter Global
Markets revenue of just over $600 million was up 5.7% PCP (FX adjusted).

•Group Net Interest Margin was slightly lower. While ANZ has seen some easing in deposit pricing
this was offset by the ongoing impacts of the lower interest rate environment and some asset
pricing pressure which was broadly based.

•The APS330 released today shows ongoing portfolio quality improvement with a continued decline
in total impaired assets. The collective provision coverage ratio at 31 December was 96 bps
reflecting a 6.5% increase in credit risk weighted assets largely driven by portfolio growth andexchange rate movements.

•The provision charge for the first quarter was $191 million reflecting lower new provision
requirements, lower top-up provisions and slightly elevated levels of write-backs and recoveries.

•ANZ’s APRA Basel III CET1 ratio at 31 December is 7.9%, equating to 9.9% on an internationallyharmonised basis with the movement during the quarter principally related to the payment of theFinal Dividend in December (70 bps). ANZ today announced it intends to issue a Capital Notes offer
to raise around A$1 billion in part to refinance CPS15.

For media enquiries contact:

For investor/analyst enquiries contact:

Paul Edwards
Group GM, Corporate Communications
Tel: +61-3-8654 9999 or +61-434-070101
Email: paul.edwards@anz.com

Jill Craig
Group GM, Investor Relations
Tel: +61-3-8654 7749 or +61-412-047448
Email: jill.craig@anz.com

QUARTERLY FINANCIAL DATA

Unaudited Cash Profit
Unaudited Statutory Profit
Provision Charge

1Q13

2Q13

3Q13

4Q13

1Q14$1.53 b$1.36 b$311 m$1.67 b$1.58 b$288 m$1.64 b$1.75 b$277 m$1.68 b$1.60 b$322 m$1.73 b$1.64 b$191 m4 On an FX adjusted basis deposits grew 3% and net loans and advances grew 2%.
5 Prospectus lodged today for ANZ Capital Notes 2 seeking to raise $1 billion with the ability to raise more or less. This includes an offer to holdersof ANZ CPS1 to reinvest in ANZ Capital Notes 2. CPS1 was issued in 2008 and is scheduled to convert in June 2014.