HIGHLIGHTSFor Release: 26 April 2007

ANZ 2007 Interim Profit $2,102 million
Profit after tax

Profit $2,102 million

up 16.1%

Cash* profit $1,936 million

up 11.8%

Cash* profit before provisions $2,995 million

up 12.1%

Earnings per share

EPS 113.2 centsup 15.0%

Cash* EPS 104.2 centsup 10.9%

Shareholder return

Interim dividend 62 centsup 10.7%

Total Shareholder Return

17.1%*Cash Return on equity

19.7%

Business highlights*
Strong revenue momentum and continued investment with 2,120 new FTEs
Strong result in Personal – revenue up 14.4%, profit up 21.6%
Institutional profit up 10.6%. Profit before provisions more modest at 4.2%
Good underlying momentum in New Zealand Businesses up 13.5% but offset by provisioning
Continued growth in customer acquisition in Australia and a successful turnaround in New ZealandAchieved targeted revenue and productivity:
Revenue growth 9.1% (10.4% FX adjusted)
Cost-Income ratio 44.3% (down 1.5% from 45.8%, medium-term target 40%)
Credit quality remains strong, better than expected provisions due to recoveries late in the half
Adjusted Common Equity ratio middle of target range at 4.4%

* Adjusted for non-core items (including significant items, ANZ National Bank incremental integration costs and AIFRS markto market of certain hedge gains/losses)
All figures compared to March 2006 half year unless otherwise indicated1

HIGHLIGHTS (continued)

For Release: 26 April 2007

ANZ 2007 Interim Profit $2,102 million
Australia and New Zealand Banking Group Limited (ANZ) today announced a record profit after tax of$2,102 million for the half year ended 31 March 2007, up 16.1%. Earnings per share were 113.2 cents,up 15.0%.
The headline result included a one-off gain on the Fleetpartners sale. Adjusting for non-core items, cash*
profit was $1,936 million, up 11.8% and cash* EPS was up 10.9%. The proposed Interim dividend of
62 cents is up 10.7% on last year.
ANZ Chief Executive Officer Mr John McFarlane said: “This is a good result in a highly competitive market.
It builds on seven years of systematic investment in our customers and our people.
“We achieved strong revenue growth of 9.1%*, or adjusting for exchange rates at 10.4%, which is above
the top end of our target range. Good cost management enabled us to maintain a gap between revenue
and expense growth of 3.5%, which brought down our cost income ratio by 1.5% to 44.3%. Althoughprovisioning rose, it ended below our expectations as a result of large recoveries late in the half. Returnon equity remained broadly stable at 19.7%*.
“We had particularly strong results in Personal, which was the highlight. INGA, Asia and Private Banking
also delivered strong performances. New Zealand Businesses came in with their best underlying result inrecent years, but was impacted by provisions increasing from unsustainably low levels. Institutional
NPAT growth was double-digit, benefiting from net provision recoveries but was weaker in revenue andprofit before provisions.
“We are continuing to invest in the future. Over the past year, we added a further 2,120 people, andopened 26 new branches in Australia and New Zealand. We announced our intention to expand ourinternational franchise in Malaysia, China, Guam and Laos. At the same time we managed to achieve
good revenue/expense productivity. There is also a greater focus on efficiency, partly to help fundinvestment initiatives, but also to enhance bottom line results.
“Net interest margin decline was better than historical experience, falling just 5 basis points. Credit
quality remains strong. Although provisions rose, they were significantly lower than we expected, due tolarge recoveries late in the half. We continue to expect a substantial increase in provisions in the second
half, with no material recoveries expected.
“We continued to advance the foundation and capability of the organisation. Staff engagement again
improved to 64% from 60%, and we have a culture that others would find difficult to replicate. We also
have strong customer, community and shareholder recognition. Although there is still much more to do,
ANZ is now clearly seen as a very different bank.
Outlook
Commenting on the outlook for ANZ, Mr McFarlane said: “Conditions remain supportive of good growth.
Personal should continue to do well, but may find it difficult to sustain such unusually high levels ofgrowth. We expect to see continued momentum in New Zealand, and Institutional has taken action to
improve revenue and expense performance in the second half. Looking ahead, the growth we are now
seeing from Asia will become more material to the Group.
“For the 2007 year, ANZ’s revenue and expenses are expected to be in line with previous guidance of
7%-10% revenue growth and 5%-7% cost growth. While the credit environment is benign, we expect
provisions to be significantly higher in the second half, with the first half unusually low due to recoveries.
“All in all, this is a good result. It sets us up well for the year as a whole and positions us well for theyears ahead”, Mr McFarlane said.
* Adjusted for non-core items (including significant items, ANZ National Bank incremental integration costs and AIFRS mark to market of certain hedgegains/losses)
All figures compared to March 2006 half year unless otherwise indicated2

HIGHLIGHTS (continued)

Divisional Performance
Personal delivered another outstanding result with a clear strategy that was well executed. Profitgrowth was 21.6% on revenue growth of 14.4%. All businesses delivered double-digit earnings growth,with the exception of Mortgages, which was adversely impacted by the expectations of rising rates andstrong price competition. Investment and Insurance Products (up 47%), Esanda (up 36%), ConsumerFinance (up 39%) assisted by the sale of MasterCard shares, Pacific (up 20%), and Banking Products (up22%), were all particularly strong.
Revenue growth was double the 7% expense growth. Staff numbers were up 8%, and we opened 9 newbranches in the first half, with a further 31 openings planned in the second half. Credit costs increased inline with expectations at 18%, due to portfolio growth and the seasoning of our credit card and personalloan portfolios.
Institutional delivered net profit growth of 10.6%. However, revenue growth was more subdued at 5%with average interest earning asset growth of 9% and deposit growth of 14%, offset by contracting credit
margins. Staff numbers grew 11% and resultant expense growth was 7%, reducing Profit Before
Provisions to 4%. Provisioning showed a net recovery of $6 million with large recoveries late in the half,
offsetting modest new provisions. Over recent years, we have sought to curtail low margin asset growthand to reduce our reliance on lending over time. This naturally reduces revenue. Encouragingly, Returnon Risk Weighted Assets improved accordingly. Strong revenue growth in Markets and Corporate &Structured Financing was offset by weaker performance from the other units.
New Zealand Businesses profit after tax was up 8.1% in New Zealand dollars, with good revenue
growth of 8%. Profit before provisions was strong at 13%, offset by a large increase in credit costs,
which bounced from unsustainably low levels. Expense growth was well contained at 4%. Corporate andCommercial Banking, ANZ Retail, The National Bank Retail, Rural Banking, and UDC all delivered
double-digit Profit Before Provisions growth. Despite higher credit costs they are still well below cycle
average, and credit quality remains strong, with the level of net non-performing loans (0.08%) andindividual provision charges (0.07%) well below that seen in Australia.
Partnerships delivered very strong growth, with revenue up 38% and profit after tax up 30%. ING
Australia is now delivering good momentum, with profit up 29%, and is well placed to deliver even better
returns as it moves beyond the legacy issues that have constrained performance until now. InternationalPartnerships profit after tax grew 57% assisted by a full six month return from Bank of Tianjin. Growthin Partnership earnings should accelerate in the second half, with the expected inclusion of earnings fromAMMB Holdings Berhad (AMMB).

For media enquiries, contact:

For analyst enquiries, contact:

Paul Edwards
Head of Corporate Communications
Tel: 03-9273 6955 or 0409-655 550
Email: paul.edwards@anz.com

Stephen Higgins
Head of Investor Relations
Tel: 03-9273 4185 or 0417-379 170
Email: stephen.higgins@anz.com

3HIGHLIGHTS (continued)

Group
1

Key Business Drivers

Personal

Half year
Mar 2007

Change2

Change2

Institutional
Continuing
ChangeNew ZealandBusinesses(NZD)

2

Change2

Total assets$m

351,724

9%

11%

7%

13%

Deposits & other borrowings$m

210,585

7%

10%

16%

2%

Average interest earning assets$m

323,510

10%

12%

9%

13%

Net interest marginbps

2.24(5bps)(2bps)(11bps)(10bps)

Net interest income

$m

3,611

7%

11%

2%

9%

Other operating income

$m

1,770

13%

24%

10%

7%

Total income

$m

5,381

9%14%

5%

8%

FTE

No.

33,183

7%

8%

11%

4%

Operating expenses

$m

2,386

6%

7%

7%

4%

$m

2,995

12%

21%

4%

13%

Profit before provisions

3

Individual provision charge

$m

188

0%

45%

(114%)

136%

Collective provision charge

$m

52

44%

(38%)

(133%)

large

Total provision for credit impairment

$m

240

7%

18%

(112%)

large

Cash profit

$m

1,936

12%

22%

11%

8%

EVA

$m

1,119

10%

24%

-1%

22%

ActualActualActual(0.07)

1

Other Measures
Individual provision (charge)/credit
as a % of average net advances%

0.14(1bps)(0.23)

0.02

Return on average assets

%

1.11

1bps

1.01

1.17

1.06

Return on average RWAs

%

1.59

6bps

1.72

1.41

1.36

Cost to income ratio

%

44.3

(150bps)

47.0

38.9

48.1

Cost to average assets

%

1.37

(7bps)

1.53

1.06

1.55

1.

All numbers adjusted for non-core items

2.

Compared to half year ended 31 March 2006

3.

Profit before credit impairment and income tax

4