For personal use only

ANZ National Bank Limited
MEDIA BACKGROUND PACKTo accompany the General Disclosure Statementfor nine months ended 30 June 2008

Graham Hodges, Chief Executive Officer
28 August 2008

For personal use only

ANZ National Bank Limited – New Zealand’s largest bank
• Assets of NZ$114.9 billion as at 30June 2008 and NPAT of NZ$960m for9 months ended 30 June 2008
• 33% of total New Zealand registeredbank assets, ~38% share of revenue• Employs ~9,500 people (FTE)• Serves ~1.9 million customers

Consistent strong profit(Profit after tax)NZ$ m
1200- 24% Relationship Banking- 21% Institutional- 16% Other*General Disclosure Statement basis, June 2008

848

900960600
3000FY '05• Credit rating: AA (Standard & Poor’s),
Aa2 (Moody’s) & AA- (Fitch)- 39% Retail Banking

1168

917

• 316 branches and 746 ATMs

• Earnings well-balanced across a
spread of businesses*:

1072

FY '06
FY '07 June '07* June '08*
*for 9 months ended June

ANZ National Bank is well positioned

99999Leading share in all customer segments
Solid profit result
High quality asset book
Diversified funding sources
Strong capital ratios and liquidity

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Underlying cash profit up 10% over same period last year

For personal use only

Strong headline profit growth …
NZ$m… and solid underlying cash profit.

PBP 19%
1,527
1,285

NPAT 13%960

848

9 months ended June (NZ$m)

2007

2008

Growth(PCP)

Headline NPAT (per GDS)

848

960

13%0(85)

Sale of Esanda Fleetpartners

(76)

0

Net Hedge ineffectiveness(8)

4

Deferred Taxation Movements

27(9)

791

870

Adjusting for non-core items:
Visa IPOPBP
9 months ended June 07

NPAT
9 months ended June 08

Provisions rising from low levels ina challenging environment

NZ$ m220

Total Provision Charge
121

1874167

Underlying Cash Profit

10%Business Unit Performances:

170• Institutional: exceptionally strong performance

120
CP70

Recoveries

20

New IPs-30

Total-80
FY05

Pre-IFRS

FY06

Post-IFRS

FY07

9 months
ended June08• Relationship banking: solid performance in ruraland business sectors• Retail: deposit margin squeeze and higher
provisions impacting profit

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For personal use only

Non-performing loans and arrears up, but portfolio well secured
Non-Performing Loan balances• Non-performing loans are increasing,reflecting the more difficult economicenvironment

NZ$m% of GLA

0.5%

4000.4%300• Rise in arrears is largely in the secured
portfolio which historically has lower loss
rates

0.3%

2000.2%100• Collective provisioning of NZ$486m (0.5%of Gross Loans) provides good loss
coverage on diversified business mix

0.1%

00.0%
1H05 2H05 1H06 2H06 1H07 2H07 1H08 Jun-08
Non-Performing Loans% of Gross Lending Assets (RHS)Arrears are up but loss rates are mitigated by security

Basel II Asset Class

Gross LoansandAdvances

90 days past due

IndividualProvision
Charge*Annualised
Loss Rate*% of GLA

NZ$m

NZ$m% of GLA

NZ$m

49,574169

0.34%

120.03%5,395

460.85%76

1.88%

Corporate Exposures

41,234390.10%180.06%

Total ANZ National

96,203

254

0.26%

106

0.15%

Retail Mortgages
Other Retail(Personal &Small Business)* for nine months ended June 2008

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ANZ National Bank is strong, sound and well capitalised

For personal use only

• Solid profit result

Strong capital ratios(June 2008)12.43%
11.39%

7.71%

8.42%

8.00%

• Very strong capital position• Over NZ$6 billion of available liquidity• Diverse funding base with ongoing access toglobal funding sources

4.00%• Strong support for deposits and bond issues
from the local market
Tier 1 Capital
RBNZ
Minimum

ANZ National Bank
under RBNZ
framework

Total Capital
ANZ National Bank
under APRA framework(estimate)

ANZ Banking Group (and ANZ National Bank)
has a credit rating that puts it amongst thehighest rated banks in the world*:• ANZ Banking Group is one of only 28banking groups globally rated AA or betterby Standard & Poor’s• Standard & Poor’s rate over 2,000 banks
internationally• The four major New Zealand banks sharethe same AA rating as their Australianparent bank
*ANZ National analysis

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The economic outlook is subdued, but there are areas of support

For personal use only

The RBNZ, having raised rates between
2003 and 2007, cut the OCR in July 2008
% International Central Bank Interest Rates

10NZAU8620.9

1.00.80.90.7

UK4A weaker NZD will help exporters

EU0.6US0.5

00.8

NZD/AUD(right scale)

0.7
NZD/USD(left scale)

0.6

0.4

9901

03

05

07

0901 02 03 04 05 06 07 08 09 10

Fiscal policy will lend support to theeconomy into 2009
Fiscal impulse % of GDP

3.0
2.2
1.4
0.6
-0.2
-1.0
-1.8
-2.6

Expansionary

Budget 2008
forecast

Contractionary

96

9800

0204

06

08

10

0.5

12

Sources: Statistics NZ; Reuters; NZ Treasury; ANZ National Bank

• Prospects for growth remain subdued but
financial stabilisers have begun to work.
• Improved economic momentum expected in2009, as cyclical stabilisation measures,increased infrastructure spending, therecovering export sector, and tax cuts for thehousehold sector provide support to theeconomy.
• The global economic environment, while
uncertain, is likely to remain supportive.

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