Media Release

For release: 17 February, 2015

ANZ Trading Update – 3 months to 31 December 2014
- solid start to 2015 in a tougher environment ANZ today announced an unaudited cash profit1 of $1.79 billion and an unaudited statutory net profit of$1.65 billion for the 3 months to 31 December 2014.
ANZ Chief Executive Officer Mike Smith said: “ANZ has made a solid start to 2015 with our customer
franchises in Australia, New Zealand and Asia continuing to perform strongly.
“As we anticipated, 2015 is proving to be a slightly tougher, more volatile environment. We have seensome tailwinds associated with the lower Australian dollar in the first quarter however these have been
partially offset as a result of global economic conditions including lower commodity prices. Marketconditions have also created a challenging environment for the Global Markets business although we
expect this to improve throughout the year.
“Overall ANZ is performing broadly in line with our expectations. Our super regional strategy continues
to provide us with growth options and we will also ensure our cloth is cut to suit the conditions.
“Looking at our businesses, Australian Retail and Commercial have delivered another excellent
performance with further market share gains in home lending and growth in small business lending
although the corporate sector remains subdued. In New Zealand our market position is seeing us
benefit from the economic upturn supported by further productivity outcomes. Global Wealth has again
performed well.
“In International and Institutional Banking the effect of the macro environment has been more apparent
including the impact of central bank monetary policy on margins. Monetary policy however is continuing
to support a stable outlook for credit quality across all our businesses,” he said.
GROUP OVERVIEW2
Profit before Provisions grew 5.2% versus the prior comparable period and rose 3.6% on a constantForeign Exchange (FX) basis.

Revenue was above the quarterly average3 for FY14 with benefits from the decline in the Australian
dollar exchange rate4 partially offset by lower Global Markets trading income. Expenses were also
higher than the FY14 quarterly average reflecting exchange rate impacts along with several key
business enhancement projects becoming operational. This included a new digital platform for theAustralian business which provides better product speed to market and customer interface. ANZ
continues to invest in growth opportunities and enablement capability.

Customer deposits grew 9% with net loans and advances up 8%. Deposit growth was strong acrossall geographies with lending demand varied across the Group and customer pay-down levels
remaining elevated.

Group Net Interest Margin declined 6bps compared with the end of the second half FY14, 2bps ofwhich related to foreign exchange translation impacts. The remainder was largely attributable toGlobal Markets and the impact of higher liquidity requirements.

1 Statutory profit is adjusted to exclude non-core items to arrive at Cash Profit, the result for the ongoing activities of the Group.
2 Comparisons referenced are 1Q15 (period to 31 December 14) relative to 1Q14 (period to 31 December 13) and are not FX adjusted unlessotherwise noted.
3 Comparison is against quarterly average revenue for FY14 of $4.89 billion and quarterly average expenses for FY14 of $2.19 billion.
4 Refers to the AUD exchange rate against the USD and NZD predominantly.
Australia and New Zealand Banking Group Limited ABN 11 005 357 522

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The APS330 released today shows continued portfolio quality improvement, with further reductionsin impaired assets. The provision charge of $232m was slightly lower than the FY14 quarterly
average with no reduction in the management overlay balance during the period.

Excluding the impact of the FY14 final dividend payment, CET1 capital improved by around 20 bps.
At 31 December the capital ratio on an APRA CET1 basis was 8.4% (11.9% Basel 3 Internationally
Comparable basis). Risk Weighted Assets increased $17.4 billion of which $8.2 billion wasattributable to FX translation which has a negligible impact on Group CET1.

While the lower AUD exchange rate benefits ANZ in aggregate as per disclosures made at the FY14
results5, there is a range of impacts across various metrics.

DIVISIONAL HIGHLIGHTSThe Australia Division is performing strongly, with all core segments contributing. Home lending has
continued to grow at above system rates, with the fastest growth occurring in New South Wales.
Targeted campaigns, leveraging our digital sales capabilities, have seen the Credit Cards businessrebound, posting the highest market share gains of the major banks in the past 6 months.
Commercial lending momentum has been maintained following the trend in the second half of FY14,
particularly in Small Business Banking. Deposit growth trends were also positive, especially in
Commercial, and ANZ has maintained market share in Household Deposits.

The New Zealand Division is also performing strongly delivering balance sheet growth with market
share steady in the competitive mortgages market and deposit growth also strong. Ongoing
benefits from the brand and systems merge continue to contribute to positive income expense jaws
and the credit environment remains benign.

Global Wealth continues to build momentum, delivering strong in-force premiums growth, stableclaims and lapse experience together with further growth in Funds under Management. Innovations
including ANZ Smart Choice Super, the GROW by ANZ digital platform and the ANZ Grow Centre
are driving greater adoption of Wealth products by both new to bank and existing ANZ customers.

International and Institutional Banking had a mixed start to the year. Trade volumes have beenconsistent; however significant reductions in commodity prices are impacting the value of shipments
and providing a revenue headwind. Cash Management saw significant growth in volumes,
particularly in Asia, with margins slightly improved. The Global Markets business delivered its
strongest quarterly customer sales result in two years; however total Markets revenues (1Q15$555 million) were down on the quarterly average for last year reflecting lower trading income.
The business settings remain conservative with the value at risk (VaR) tracking below 2014 levels.

OUTLOOK
ANZ’s super regional strategy focussed on Australia, New Zealand and Asia Pacific supported by ahealthy level of organic capital generation, will continue to provide the Group with opportunities toinvest in the business and deliver for shareholders. It is expected that the dividend payout ratio willremain at the upper end of the target range for FY156.
For media enquiries contact:
Paul Edwards
Group GM, Corporate Communications
Tel: +61-3-8654 9999 or +61-434-070101

For investor/analyst enquiries contact:
Jill Craig
Group GM, Investor Relations
Tel: +61-3-8654 7749 or +61-412-047448

Video interviews with ANZ’s Chief Executive Officer Mike Smith and Chief Financial Officer Shayne Elliott regarding
today’s trading update can be found at ANZ BlueNotes www.bluenotes.anz.com
Unaudited Cash Profit
Unaudited Statutory Profit
Provision Charge

1Q14

2Q14

3Q14

4Q14

1Q15

$1.73 b$1.65 b$191 m$1.79 b$1.74 b$337m

$1.67 b$1.65 b$246m

$1.93 b$2.23 b$215m

$1.79 b$1.65 b$232m

5 Slide 51 ANZ Full Year 2014 Results Presentation & Investor Pack “FX Sensitivity – illustrating the impact of FX”.
6 ANZ’s target dividend payout ratio previously advised is between 65% and 70% of Cash Profit.