Media Release

For release: 18 August, 2015

ANZ Trading Update – 9 months to 30 June 2015
- good performance in a lower growth environment ANZ’s unaudited cash profit1 for the 9 months to 30 June 2015 was $5.4 billion up 4% and unaudited
statutory net profit was $5.58 billion up 11%.
ANZ Chief Executive Officer Mike Smith said: “ANZ’s customer franchises in Australia, New Zealand andAsia Pacific are continuing to put in good performances.
“The third quarter operating environment has remained similar to that of the first half. Economies in ourkey markets have slowed a little compared to previous years and global conditions remain challenging.
In these circumstances we are continuing to sharpen our focus on the management of capital and on
the control of expenses. Our super regional strategy continues to provide us with differentiated sourcesof revenue and future growth options and it is underpinning our performance in every part of thebusiness.
“Our Australian Retail and Commercial businesses are continuing to outperform peers particularly inmortgages and are delivering consistently strong performance. We have shifted gears in our New
Zealand business over the past few years and are seeing further benefits in terms of both market share
growth and productivity. Performance in our Global Wealth Division remains positive.
“International and Institutional Banking (IIB) is performing well and is managing its exposure to thecomplex macro conditions. Factors such as the global liquidity surplus and low commodity prices areproviding headwinds to business performance while others, such as market volatility and currency
movements, are providing tailwinds. We are continuing to simplify the business and increase the focus
on improving returns.
“The recent capital raising has allowed ANZ to deal with known regulatory change, such as the higher
capital adequacy requirements for Australian Mortgages and positions ANZ’s capital ratios within the top
quartile of international peers,” Mr Smith said.
GROUP OVERVIEW
Comparisons are the nine months to 30 June FY2015 relative to the same period FY2014 unless otherwise stated(PCP) and are unaudited.

 Cash Profit of $5.4 billion increased 4.3% PCP. Profit before Provisions over the same period grew
5.1% (+3.4% on a constant Foreign Exchange (FX adjusted) basis)2.
 Revenue expense jaws3 were tracking broadly neutral on a constant FX basis. Revenue and expense
growth trends compared to PCP were broadly similar to the first half 2015 experience, thoughrevenue growth was a little stronger and expense trends improved slightly4.
Customer deposits grew 9.5% (+5% FX adjusted) with net loans and advances up 7.7% (+5.4% FXadjusted).

1 Statutory profit is adjusted to exclude non-core items to arrive at Cash Profit, the result for the ongoing activities of the Group. The difference
between cash and statutory profit is primarily due to the mark to market revaluation of revenue and funding-related hedges.
2 FX adjusted – comparative data has been adjusted to remove the impact of foreign exchange movements by retranslating the prior period
comparatives at the current period foreign exchange rates.
3 Revenue expense jaws refers to the % increase in revenue growth less the % increase in expense growth.
4 1H15 revenue growth on a constant FX basis was 3.2% with cost growth on the same basis 4.4%, see page 13 of the March 2015 Consolidated
Financial Report & Dividend Announcement.
Australia and New Zealand Banking Group Limited ABN 11 005 357 522

The Group Net Interest Margin at the end of the third quarter was broadly stable on the end of thefirst half 5 assisted somewhat by slower growth in lower margin liquid asset holdings and positive
trends in funding costs which offset asset price competition.

DIVISIONAL HIGHLIGHTS
Comparisons are the nine months to 30 June FY2015 relative to the same period FY2014 unless otherwise stated(PCP) and are unaudited.

The Australia Division’s strong performance from the first half has continued with ongoing
momentum in lending and deposit flows, margins well managed and customer numbers increasingby circa 5% in both the Retail and Commercial businesses. The Retail business has delivered strong
growth in both home lending and credit cards and the Commercial business is also seeing good
lending growth, especially in Small Business Banking, with improved trends in the Corporate andBusiness Banking segments.

The New Zealand Division is delivering strong balance sheet growth with above market
performance in Mortgages, Business Lending and Deposits. Revenue growth was underpinned bycontinued high levels of customer acquisition and brand consideration and an improved digitaloffering.

Positive underlying performance continued across the key businesses in the Global Wealth
Division with strong in-force premiums growth, stable claims and lapse experience plus growth inFunds Under Management. Global Wealth innovations – in physical, digital and personal – continue
to deliver simple accessible wealth solutions improving how customers think about their financial
wellbeing.

International and Institutional Banking continues to perform well in difficult operating conditions
arising from macro-economic factors such as the ongoing global liquidity surplus and weakcommodity prices. Income in the Global Markets Business was up 6% to $1.8 billion. Customer
sales grew 9% led by strong results in Asia and customer facing revenue remains at over 75% of
the total Global Markets income. The Trade and Supply Chain business margin stabilised in the thirdquarter having been impacted by falling commodity prices. Cash Management revenue increased,with good volume growth across the region, particularly in Asia.

CREDIT QUALITY
Comparisons are the nine months to 30 June FY2015 relative to the same period FY2014 unless otherwise stated(PCP) and are unaudited.

Gross Impaired Assets have decreased 3% over the nine months to 30 June 2015. The total provision
charge of $877 million or 21 bps increased 13%. While loss rates are expected to remain well under thelong term average, ANZ estimates that the total impairment charge for FY15 will be ~$1.2bn, or 21 bps
compared to 19 bps in FY14.
The Individual Provision Charge declined 12.5% to $750m and while the Collective Provision Charge
increased it remained at a relatively low level in absolute terms at $127m. The Financial Year to datehas seen a normalisation of the risk profile component of the Collective Provision Charge with amoderate number of credit downgrades being recorded whereas the prior corresponding period in 2014
saw a higher level of upgrades.
The movement in the risk profile component of the Collective Provision Charge in 2015 reflects ongoingmacro-economic stress including in the resources and agriculture sectors. The contribution to thecollective provision from portfolio growth was broadly steady period on period6.

5 Group net interest margin for the six months ending 31 March 2015 was 2.04%.
6 The Collective Credit Impairment Charge by source for 1H14, 2H14 and 1H15 is disclosed on page 30 of the March 2015 Consolidated Financial
Report & Dividend Announcement.

Page | 2

CAPITALAt 30 June 2015 ANZ’s reported APRA Common Equity Tier-1 (CET1) ratio was 8.6%. Following thecompletion of the $2.5bn Institutional placement, the June 2015 pro-forma APRA CET 1 ratio was 9.2%.
On the basis that $500 million is raised under the Share Purchase Plan, on the same pro-forma basis
this would add a further 13 bps increasing the CET1 Ratio to 9.3%. ANZ has no plans to underwrite theFY15 Dividend Re-investment Plan.
ANZ has one tranche of ~$400m of ANZ Wealth Australia Limited debt remaining which matures inMarch 2016. This tranche will not be refinanced. The 10 bps impact is expected to be offset throughcapital management efficiencies.
The recent capital raising has allowed ANZ to deal with the known regulatory changes and position
ANZ’s capital position within the top quartile of international peers. ANZ is liaising with APRA in regards
to detailing its internationally comparable capital position, on the basis of current information, weexpect our internationally comparable CET1 ratio to be around 13%.
ANZ’s Liquidity Coverage Ratio improved from 119% to 121% during the third quarter ending 30 June2015.
For media enquiries contact:

For investor/analyst enquiries contact:

Paul Edwards
Group GM, Corporate Communications
Tel: +61-3-8654 9999 or +61-434-070101

Jill Craig
Group GM, Investor Relations
Tel: +61-3-8654 7749 or +61-412-047448

Quarterly results
3Q15

9 month results
Period to 30 June
Period to 30 June
20142015

3Q14

4Q14

1Q15

2Q15

Unaudited Cash Profit$1.67b

$1.93b

$1.79b

$1.89b $1.73b$5.18b$5.40b

Unaudited Statutory Profit$1.65b

$2.23b

$1.65b

$1.86b $2.07b$5.04b

$5.58b

Provision Charge

$246m

$215m

$232m

$278m $366m

$775m

$877m

Page | 3