2008 Shareholder
Review Review 2008
Shareholder

Contents
01
02
04
06
12

ANZ Snapshot
Chairman’s Report
Chief Executive Officer’s Report
Review of Divisions
Five Year Summary

15	Director & Executive
Remuneration 2008
16 The Board of Directors 200818 2008 Corporate Responsibility
22 Information for Shareholders

Australia New Zealand Asia Cambodia China
Hong Kong India Indonesia Japan Korea Laos
Malaysia Philippines Singapore Taiwan Thailand
Vietnam Pacific American Samoa Cook Islands
East Timor Fiji Guam Kiribati New Caledonia
Papua New Guinea Samoa Solomon Islands Tonga
Vanuatu Europe Middle East United Kingdom
United States of America

Focusedon the FutureWith a proud banking heritage
spanning 170 years, ANZ is committed
to building lasting partnerships withour customers, shareholders andcommunities throughout Australia,
New Zealand and 26 key markets in
the Asia Pacific region.
Our culture thrives on delivering forour customers rather than focusing
on products and we’re committed tousing technology to bring banking
to our customers whenever andwherever they need it.

The Australian banking sector has
weathered a turbulent 2008 better
than most in the world, a testament
to a well run, well regulated financial
system. ANZ has strengthened its
balance sheet during the year, iswell capitalised and has a strong
liquidity position.
At ANZ we’re focused on the future,delivering on our strategy to build asuper regional bank and delivering
returns for our shareholders.

ANZ Snapshot
2008 assets $471,024m

A top 10 listed company on the ASX

2008 Profit after tax was $3,319m

Largest listed company in New Zealand	1,346 branches/representative offices	Largest Australian bank in Asia and aleading bank in the South Pacific36,925 employees (FTE) worldwide
We were pleased to be assessed the leading bank globallyin the Dow Jones Sustainability Index in September 2008.

1

ANZ has weathered a challenging year in 2008 and been able to maintain the dividend
for shareholders. Our underlying business performance was solid, however dislocationin global financial markets and the change in the cycle in Australia and New Zealand
impacted parts of our business. The Board and our new Chief Executive acted decisively
to address the changing environment and a number of process and control issues in the
Bank. While the economic outlook is softer, we have a clear strategy and the foundations
on which to plan positively for the future.

Chairman’s
ReportA message from Charles GoodeOur Performance
ANZ’s profit after tax for the year ended
30 September 2008 was $3,319 million,
down 21% and cash profit* was $3,029 million,
down 23%. Both reflect credit related losses.
Importantly, our business remains strong andwe maintained the dividend at 136 cents per
share fully franked.
The global economic environment softened andfinancial markets were in turmoil as a result of
the US sub-prime crisis. In this environment ANZ
experienced a significant increase in provisions
for credit impairment following the cyclical lowsin 2007. We kept shareholders informed as theseissues emerged through trading updates during
the year.
A number of deficiencies in our Institutional
Division in risk management and operational
controls were identified and remedial action
is being taken. We are addressing a backlogof expenditure in our technology and systems.
Our results were a solid achievement in a time
when many other banks in the world faced
considerable difficulty. I thank management
and staff for their contribution.

Expansion and growth
ANZ has an aspiration to become a super regionalbank through expanding in Asia. Our underlying
performance and progress across the Group in2008 reinforces that ANZ has a good foundation
on which to build and achieve this aspiration.

We have made a number of senior management
appointments to strengthen and expand ANZ.
Susie Babani joined from HSBC and was appointedGroup Managing Director Human Resources.
Christopher Page, also from HSBC, initially joined
ANZ as Head of Risk for Asia Pacific and was
subsequently appointed Chief Risk Officer.
Margaret Payn was appointed to lead Strategy
and Marketing and focus on strategic productivity
improvements across the Bank.
We are in a strong liquidity position and wellcapitalised consistent with our AA credit rating.
We took the opportunity with the Interim and
Final Dividend to improve our capital position byoffering a discount of 1.5% under our Dividend
Reinvestment Plan and having it underwritten.
ANZ’s Tier 1 capital ratio of 7.7% compares wellglobally and against domestic peers.

Board
Four new Directors will be appointed to the Board
over the next twelve months to add further
experience and expertise and to facilitate atransition with the planned retirements ofsome directors.
Margaret Jackson and Jerry Ellis will retire during
2009. Both have made a very considerable
contribution to the Board. We appointed Peter
Hay, a leading Australian corporate lawyer withexperience in investment banking, and Alison
Watkins, who has experience in small business,retailing and financial services, to our Board
in November.

Sir Rod Eddington, one of Australia’s mostrespected business leaders with extensive
international business experience, has agreed
to join the Board and succeed me as Chairman.
He will join the Board in the third quarter of 2009
when he has relinquished some of his current
commitments and will assume the Chair after atransition period at which time I will retire fromthe Board.
We aim to be a super regional bank and thisinvolves further expansion into Asia. We are very
pleased that Lee Hsien Yang, an experienced Asianbusiness leader who lives in Singapore and has
considerable knowledge of the region, has also
agreed to join our Board from 1 February 2009.

Outlook
Looking ahead, although coordinated action
by governments and regulators has helped toprovide stability to the global financial system,
economic growth will be much softer in 2009.
The underlying performance of our businessand our strategic focus on Asia however provide
the foundation for us to manage through these
uncertain times and deliver acceptable returns
for shareholders over the longer term.

Charles Goode
Chairman* Adjusted for non-core items (i.e. significant items and non-core income arising from the use of derivatives in economic hedges and fairvalue through profit and loss).

2

3

At ANZ we have taken the decision that it is time to change and set ourselves up to
become a super regional bank focused on Australia, New Zealand and Asia Pacific.
2008 has been a difficult year in banking around the world but we have demonstrated
a high level of resilience given the international turmoil. Our results show we havethe right foundation with solid underlying momentum in our business. At the sametime we need to take the necessary steps to ensure we are well managed during thechallenging economic conditions ahead.

Chief Executive
Officer’s Report
A message from Michael Smith

ANZ is positioned well in a difficult environment.
Although ANZ’s earnings fell 21% in 2008,
underlying revenue* grew 12%. Lending growth
for the year was 16% and growth in deposits
and other borrowings was 21% highlighting
an increased reliance on AA rated banks, therelative strength of the regional economy andthe quality of ANZ’s franchise.
The Personal Division and our rapidly growing
Asia Pacific Division delivered very good
performances. The Institutional Division
improved on an underlying basis but provisions
and valuation adjustments had a significant
impact on the result for the Group as a whole.
The performance in New Zealand was softer
reflecting a weaker economy.
Our results demonstrated ANZ’s ability to weather
an extremely challenging year. We have maintained
our dividend, provided security and confidence
for our customers and worked hard to meet
community expectations with responsible,
sustainable banking services.
Since I joined ANZ in October 2007, we have donemuch to put the Bank on a new footing with aclear strategy focused on creating a superregional bank. We recognised the new reality infinancial markets early and strengthened thebalance sheet, increased capital and liquidity
and systematically tackled some deficiencies
in operating processes and controls.
We have identified four areas that we will focus
on to deliver on our aspiration and we havemade good progress in bringing them alive.
These areas are:

Customer focus. Our business should bedesigned around our customers’ needs rather
than product lines. This means removing silos
and boundaries in our business and bringing
us closer together as ‘One ANZ’.
Marketing and sales. We need to shift our
thinking from selling commodity products tolooking at differentiating the way we market
ourselves, the way we segment our offeringand the way we serve our customers.

Technology. We need a different philosophy
to bring us up to the levels of technology usedby banks globally, not just in Australia or
New Zealand.

Performance. We need out performance at every
level – financial out performance, out performingin customer service and in our work ethic.
We have made good progress in 2008, however
there is much that needs to be done over the next
four years to deliver on our aspirations.

We have also built a strong management teamof bankers with over 250 years of banking
experience on our management board. I believe
there is no substitute for bankers with experienceof good times and bad, and the experience tounderstand and see difficult times through.
These actions will ensure ANZ will be a stronger,
more effective business in the future.
ANZ now has the right foundation to build upon
and there are significant opportunities emerging.
Continuing to manage in a steady decisive manner
will set ANZ up to deliver on our aspiration to
become a super regional bank. This is the key tocreating greater value and out-performance forour shareholders over the longer term.
I believe we have a clear direction and thecapacity to make ANZ a great regional company.
We are in the right place in the Asia Pacific region,at the right time with the right people to deliver
performance and value to our shareholders.

Although we expected credit costs to increasein 2008, provisions were high. In the wake ofthese losses, we have undertaken a review ofour business to ensure that everything we do iscore to our clients’ needs and our risk appetite
is managed well.
We undertook a review of our Securities Lending
business. Action was taken against a numberof employees and we committed to a 13–point
remediation plan.

Michael Smith
Chief Executive Officer

In September, we announced a new structure forour business to accelerate progress with ourstrategy and to improve financial performance.

* Adjusted for non-core items (i.e. significant items and non-core income arising from the use of derivatives in economic hedges and fairvalue through profit and loss), credit risk on derivatives and a structured trading transaction offset in tax expense.

4

5

Review of Divisions
Personal

Review of Divisions
New ZealandA message from Brian Hartzer

A message from Graham Hodges

The Personal Division delivered a strong
result in a more difficult economic
environment by building on a strategy
to provide convenient, simple andresponsible financial services.

Profit grew to $1,485 million, up 12%. This wasachieved by good revenue growth, up 11%
underpinned by investment and innovation to
make services more accessible. The aim is toensure ANZ is open 24/7 for our customers andthat we continue to lead the major banks incustomer satisfaction and staff engagement.
In 2008, a three–year program to open 80 new
branches was completed; a further 209 ATMs
were installed and 365 front line staff wereadded to serve customers. Further investments
were made in internet and mobile services withthe relaunch of anz.com, the introduction ofmobile phone banking and internet banking for
the Apple iPhone*. We also completed thesuccessful integration of Etrade Australia.
The result is that Personal has grown its customer
base by approximately 1 million customers since2006 and key products such as deposits havegrown significantly above average.
Cost growth was contained at 2% in the second
half reflecting strong cost disciplines throughout
the Division. Lean Six Sigma techniques were usedin 100 projects to deliver $60 million in annual
benefits. Expanding the use of ANZ’s technology
and operations centre in Bangalore allowed theDivision to absorb increases in volumes without
additional cost and freed up resources to invest
in growth.
The significant opportunity ahead is to manage
the Division tightly through the economic cycle,
and to invest and innovate to expand ANZ’srelationships with its 4 million customers.

The New Zealand Division faced a morechallenging economic environment in2008. Economic growth slowed sharply
as higher interest rates and rising foodand fuel prices weighed heavily on
consumers and businesses.
As a result, profit fell 12% to NZ$715 million,
although New Zealand geographic performance
was stronger because of a good performance in
New Zealand Institutional.
Revenue growth was 4%. The key relationshipbusinesses in Rural, Corporate and Commercial
performed solidly. The Retail businesses however
were impacted by higher credit provisions which
increased significantly from the low levels
experienced in 2007. Higher funding costs,
including a squeeze in deposit margins, also
impacted performance.
In this tougher environment, the Division focusedon key investment initiatives, innovation andefficiency. Investments included expanding
business opportunities in the fast growing
Auckland market and in attractive customer
segments such as private banking, migrants
and Asian banking. It has also invested in
upgrading key infrastructure (data and callcentres, telecommunications, telling platforms)
to position it for future growth. During the year
the Bank introduced innovative deposit andcredit card products and New Zealand’s firstcontactless payments card.

Costs rose 4%. A number of transformation
initiatives commenced to drive efficiency.
Tangible benefits have been delivered via Lean
Six Sigma projects, benchmarking initiatives
and procurement savings. A program to leverage
ANZ’s technology and operations centre in
Bangalore to gain greater scale and efficiency
in back office operations also commenced.
During the year, strong staff engagement scores
were maintained at 64%. Despite the impactof the weak New Zealand economy, ANZ has
maintained the strong franchise position thatwas created following the acquisition of The
National Bank of New Zealand in 2003 and iswell positioned to participate in a recovery in
the economy.

* iPhone is a trademark of Apple Inc., registered in the U.S. and other countries.

6

7

Review of Divisions
Asia Pacific

Review of Divisions
Institutional

A message from Alex Thursby

A message from Alex Thursby

ANZ is a leading bank in Asia Pacific with
branches and significant partnerships in
14 markets in Asia, and full service retailand commercial banking in 12 countries
in the Pacific.
In 2008 profit was $413 million, up 52%,highlighting the strong progress being made in
executing a strategy to transform the scale of
ANZ’s business in Asia and build a super regionalbank with Asia Pacific contributing 20% of Group
profit by 2012.
ANZ aims to be a top four foreign bank in thestrategically important markets of Greater China
and India and a top four domestic bank in thesignificant markets of Indonesia, Vietnam
and Malaysia.
ANZ has expanded its focus from Australian and
New Zealand linked customers in Asia to whom
we have traditionally provided banking, to now
include local affluent and small-to-medium
enterprise retail customers, local corporates inkey markets, Asian regional corporates, banks
and investors, and well-rated European and UnitedStates corporates trading and investing in Asia.
In 2008, revenue growth was up 46% while costs
grew 46%, reflecting continued investment inorganic growth. ANZ started building out its
businesses to support growth plans in Vietnam
and Indonesia in 2008. We opened a new flagshipbranch and headquarters for our Indonesianbusiness in Jakarta and gained a licence for local

incorporation in Vietnam which will allow us toexpand our branch network and compete equallywith local banks in this priority market.
The Institutional business in Asia has also been
built out over the past year, including significant
expansion of the dealing rooms in Singapore andHong Kong.
We continued to develop our Retail business in
Asia Pacific and during 2008, eight new branches
were opened, and 111 ATMs were installed alongwith the addition of new products and capabilities.
Work is also underway on developing our Wealthproposition in Asia Pacific.
ANZ is investing in new systems to support growthin Asia, including a new banking platform thatwas implemented in Laos and Indonesia in 2008.
Across the Asia Pacific business, 1086 newstaff were added including key leadership
appointments which have increased management
depth and built new capabilities with Asianmarket insiders.
Investments in partnerships in Asia arecontinuing to create value. In Malaysia, ANZ
reached agreement with AmBank to establish aforeign exchange, interest rate and commodities
derivatives business. In Indonesia, we assisted
PT Panin Bank to introduce new credit card andcash management products.

The result was that profit fell 65% to $526 million.
Wider credit spreads, tightened liquidity
conditions and the weaker economic environment
led to substantial increases in credit impairment
costs. In a difficult year, underlying revenue*
growth, up 16%, was a highlight, with Asia,
New Zealand, markets and working capital
products performing well. The turnaround inunderlying performance was driven by a focus ondelivering tailored solutions for Institutional’s
40,000 clients in Australia, New Zealand andAsia, at a time of significant economic dislocation.

Strong progress is being made with ANZ’s growthstrategy in the region. Stronger results are
anticipated from the investments we are making
in Asia Pacific.

The quality of this service was again recognisedin the 2008 Peter Lee Associates Large Corporate
and Institutional Banking survey. ANZ retained its
No. 1 Lead Relationship Bank status in Australia

Note: Institutional Asia Pacific is included in the Asia Pacific Division results as well as in the Institutional Results

8

On an underlying basis the Institutional
Division performed well in 2008, driven bystrong lending growth, a strategic refocus
and renewed momentum. However, thechange in the economic cycle and volatility
in global markets following the sub-prime
crisis in the United States saw strong
income growth more than offset by higher
credit related costs.

and had the highest overall relationship market
share of any bank in Australia.
In the latter part of the year, the entire business
was reviewed, and action taken to reinforce
management accountability, to exit non-coreproduct businesses and to ensure risk
management was tightened.
A strategic refocus places clients firmly at thecentre of all activity, with product cross-sell,efficient linkage of origination to distribution,
and a stong focus on transactional and valueadded products driving growth. ANZ’scompetitive advantage in Asia and excellent
customer franchise will be key planks in restoring
the Institutional Division to its traditional
strength in corporate banking.

* Adjusted for non-core items (i.e. significant items and non-core income arising from the use of derivatives in economic hedges and fairvalue through profit and loss), credit risk on derivatives and a structured trading transaction offset in tax expense.

9

Review of Divisions
Operations, Technology& Shared Services

Review of Divisions
Strategy & WealthA message from David CartwrightA message from Bob Edgar

Operations, Technology and Shared
Services (OTSS) is ANZ’s core support
division. It is responsible for the deliveryof information technology solutions andinfrastructure, the Bank’s operations
capability in India and the provision ofshared services including property,
sourcing and environmental sustainability.

Banking is one of the most heavily technology
dependant industries in the world. Technology
plays a key role in driving efficiency, creating
sources of competitive advantage and enabling
ANZ to deliver on its aspiration to become a superregional bank.
ANZ has established a new focus on technology
including prioritising the delivery of new key
systems. For example, a new low-cost, multicurrency banking platform in Asia, mobile phonebanking in Australia and the development of a
new cash management platform.
Efficiency is critical to ensure ANZ operates at low
cost and delivers timely services to customers.
For example, consolidating operations has
allowed resources to be more effectively sharedacross common business processes resulting in
a 15% improvement in productivity in Australia,
New Zealand and India. Process re-engineering
through Lean Six Sigma is also realising
significant value.
Approximately 2,700 staff now work in technology
and operations at ANZ’s facility in Bangalore,
India, providing an increasingly important sourceof talent and efficiency for the Group.
ANZ is also delivering efficient and sustainableproperty solutions. This includes new andrefurbished retail branches and ANZ’s new head
office on the Yarra River in Melbourne which willaccommodate over 6,000 staff. The building will
have a 6-star Green Star rating, one of only ahandful of commercial buildings to have the low
environmental footprint rating.

10

ANZ’s strategic planning function is
responsible for identifying the long term
forces shaping the financial services
sector to inform and drive the Group’s
future direction.
ANZ’s super regional aspiration recognisesthat economic growth in the developing world,
particularly in Asia, will be high relative toOECD countries over the next 10 years. ANZ’s
aim is to achieve sustained above-system
growth domestically and keep pace with global
growth by participating strongly in connected
emerging economies.
Domestically, market instability flowing fromthe global credit crisis has created a force forconsolidation, a pattern that conforms to a
global trend. ANZ is alert to this trend.
The high relative growth in wealth management
and personal insurance, fuelled by an aging
population and the government shifting
retirement responsibility to individuals willcontinue to have a profound impact on thefinancial system in coming years. In Asia, thefactors driving growth include the increasing
penetration of banking and higher education,
employment and urbanisation.
Achieving ANZ’s 2012 aspirations will involve asignificant acceleration in the growth of this partof ANZ’s wealth business.
Today, ANZ’s Wealth and personal protection
businesses are its 49% investment in ING

Australia and New Zealand, ANZ’s Private Bank andits specialist Investment and Insurance business.
In 2008, ANZ’s Wealth and personal protection
businesses have shown reasonable growth,albeit impacted by the sharp correction toequity markets.
ING Australia’s earnings fell by 19% with therise in operating profit of 12% being offset bylower capital investment returns. Funds undermanagement flows were driven in part byfavourable ratings and industry awards. These
include retaining its number one ranking for its
corporate superannuation product and receiving
the ‘Life Company of the Year’ award at the AFR
Smart Investor Awards.

11

Five Year
Summary
2008

2007

2006

2005

2004

$m

$m

$m

$m

$m

Previous
AGAAP

Financial Performance(4,605)(4,340)(4,005)
4,514

Profit before provisions

6,051

6,069

5,484

4,966

Provision for credit impairment(1,948)

(522)

(407)

(565)

(632)

Income tax expense & minority interest(1,074)(1,623)(1,490)(1,250)(1,151)

Cash Profit1

2,731

3,029

3,924

3,587

3,151

Non-core items1

290

256

101

24

84

Profit after tax

3,319

4,180

3,688

3,175

2,815

Assets471,024

392,773

334,640

300,885259,345

Net Assets

26,552

22,04819,906

19,53817,925Tier 1 capital ratio2

7.7%

6.7%

6.8%

6.9%

6.9%

Return on average ordinary equity

14.5%

20.9%

20.7%

18.3%

19.1%

Return on average assets

0.8%

1.2%

1.1%

1.1%

1.2%

Cost to income ratio3

47.4%

44.9%

45.6%

46.6%

45.3%

6,051

(4,953)

5,484(5,444)

4,966

3,267

Operating expenses

6,069

5,252

4,514*

2,935

3,319

6,371

3,146

4,180

6,943

3,720

3,688

7,302

3,645

3,175

7,850

Other operating income

2,815*Net interest income

Strong lending growth, partly offset by lower interest margins

07

08

Financial Position

125c

110c

101c

$26.86$24.00$19.02

05

06

3,645

136c
$29.70

Profit Before Provisions1 ($m)

3,720

136c
$18.7506

3,146

Dividend

05

2,935

34,58604

3,267*

17.0%

43,83407
08

11,495

32.6%

49,33106
07

11,022

17.1%

55,382

10,08915.6%

38,263

05
06

9,306

-33.5%

Market capitalisation

04
05

Profit After Tax ($m)

8,519*

Shareholder value – ordinary shares
Total return to shareholders(share price movement plus dividends)

Share price –30 September (closing)

03
04

Other information
Points of representation

1,346

1,327

1,265

1,223

1,190

No. of employees (full time equivalents)

36,92534,35332,25630,97628,75504

No. of shareholders

376,813327,703291,262

263,467

252,072

Total Revenue1 ($m)

4121. 	C ash Profit is profit excluding non-core items. Non-core items are disclosed separately in the income statement to remove
volatility from the underlying business result, and include significant items, ANZ National Bank incremental integration
costs and non-core income arising from the use of derivatives in economic hedges on fair value through profit and loss.
Significant items are items that have a substantial impact on profit after tax, or the earnings used in the earnings per sharecalculation. Significant items also do not arise in the normal course of business and are infrequent in nature.

07

08

04

05

06

07

08

Other Operating Income1 ($m)

2. 2008 numbers calculated using Basel II methodology; prior period numbers reflect Basel I methodology.
3. Excludes non-core items.
4. Excludes employees whose only ANZ shares are held in trust under ANZ employee share schemes.
* Previous AGAAP

13

Director & Executive
Remuneration 2008

Five Year Summary Continued

Short-term
Employee
Benefits

Post
Employment

Long Term
Employee
Benefits

Share
Based
Payments

Total

$

$

$

$

$

C GoodeIndependent Non-Executive Director, Chairman

783,000

13,283n/an/a796,283

G Clark
Independent Non-Executive Director

239,984

13,283n/an/a253,267

J EllisIndependent Non-Executive Director

252,956

13,283n/an/a266,239

M Jackson
Independent Non-Executive Director

272,984

13,283n/an/a286,267

I Macfarlane
Independent Non-Executive Director

264,974

13,283n/an/a278,257

D Meiklejohn
Independent Non-Executive Director

287,000

13,283n/an/a300,283

Director Remuneration(1,948)

05

06

(522)

04

(407)

Expenses1 ($m)

(565)

08

(632)*

07(5,444)06(4,953)05(4,605)(4,340)(4,005)*
04

07

08

Provision for Credit
Impairment ($m)

J Morschel
Independent Non-Executive Director

286,257

–

n/a

n/a

286,257

Total Non Executive Directors

2,387,155

79,698n/an/a2,466,853

M SmithChief Executive Officer – Executive Director

5,966,567–

45,788

6,951,125

12,963,480

Total of all Directors

8,353,722

79,69845,788

6,951,125

15,430,333

R EdgarSenior Managing Director

1,418,664

36,122

78,975

531,696

2,065,457

B Hartzer
Group Managing Director, Personal

2,322,540

32,24674,902

792,168

3,221,856

G Hodges
Chief Executive, ANZ National Bank Limited(New Zealand)

1,640,705–

47,450711,052

2,399,207

861,025

53,330–218,318

2,466,9551

1,390,269

64,517

20,871

720,635

2,196,292

Disclosed E xecutives
350.5

303.4

269.4

217.4*

245.9

2.01

2.19

2.31

2.40

2.49*

P Hodgson
Former Group Managing Director, Institutional
P Marriott
Chief Financial Officer

04

05

06

07

Net Interest Margin (%)

1. Excludes non-core items* Previous AGAAP

14

08

04

05

06

07

Net Loans and Advances
including Acceptances ($b)

08

A Thursby
Group Managing Director, Asia Pacific andActing Group Managing Director Institutional

2,378,456–

14,377539,705

2,932,538

Total of all Executives

10,011,659

186,215

236,575

3,513,574

15,282,3051

1. P Hodgson ceased as the Group Managing Director Institutional on 22 August 2008, and his employment with ANZ was
terminated on 29 August 2008. This figure includes a termination benefit of $1,334,282 which includes 12 months pay
in-lieu of notice, as per employment agreement, and annual and long service leave entitlements.

15

Board of Directors
2008

The Board is responsible for charting the direction, strategies andfinancial objectives for ANZ and monitoring progress in relation to
those matters.

Mr C B Goode, AC

Mr M R P Smith, OBE

Dr G J Clark

MR J K Ellis

Ms M A Jackson, AC

Mr I J Macfarlane, AC

Mr D E Meiklejohn

Mr J P MorschelBCom (Hons), MBA, Hon LLD(Melb), Hon LLD (Monash)

BSc (Hons)

BSc (Hons), PhD, FAPS, FTSE

Independent
Non-Executive Director

Independent Non-Executive
Director, Chairman of the
Human Resources Committee

BEc (Hons), MEc, Hon DSc (Syd),
Hon DSc (UNSW), Hon DCom
(Melb), Hon DLitt (Macq),
Hon LLD (Monash)

DipQS, FAIM

Independent Non-Executive
Director, Chairman of theTechnology Committee

BEc, MBA, Hon LLD (Monash),
FAICD, FCA

BCom, DipEd, FCPA, FAICD, FAIM

Chief Executive Officer,
Executive Director

MA, FAICD, Hon FIE AUST, FAus
IMM, FTSE, Hon DR ENG (CQU)

Independent Non-Executive
Director, Chairman of the
Audit Committee

Independent Non-Executive
Director, Chairman of the
Risk Committee

Non-executive director
since October 2004.
Mr Meiklejohn is amember of the GovernanceCommittee and the
Risk Committee.

Non-executive director
since October 2004.
Mr Morschel is a memberof the Human Resources
Committee.

Chairman, Independent
Non-Executive Director
Non-executive director
since July 1991. Mr Goode
was appointed Chairman
in August 1995 and is an
ex-officio member of all
Board Committees.
Skills, experienceand expertise
Mr Goode has a backgroundin the finance industry andhas been a professional
non-executive director since1989. Mr Goode brings awide range of skills andsignificant experience of thefinance industry to his roleas Chairman of the Board.
Age 70Residence Melbourne.

Skills, experienceand expertise
Mr Smith is an international
banker with 30 years
experience in banking
operations in Asia, Australia
and internationally. Until
June 2007, he was President
and Chief Executive Officer,
The Hongkong and Shanghai
Banking Corporation Limited,
Chairman, Hang Seng Bank
Limited, Global Head ofCommercial Banking for the
HSBC Group and Chairman,
HSBC Bank Malaysia Berhad.
Previously, Mr Smith was
Chief Executive Officer of
HSBC Argentina Holdings SA.
During his international
career, Mr Smith has helda wide variety of roles in
Commercial, Institutionaland Investment Banking,
Planning and Strategy,
Operations andGeneral Management.
Age 52
Residence Melbourne.

16

Non-executive director
since February 2004.
Dr Clark is a member of theGovernance Committee.
Skills, experienceand expertise
Dr Clark is Principal of
Clark Capital Partners,
a US based firm thatadvises internationallyon technology and thetechnology market place.
Previously he held senior
executive positions in IBM,News Corporation, and Loral
Space and Communications.
He brings to the Board
international businessexperience and a
distinguished careerin micro-electronics,
computing andcommunications.
Age 65Non-executive director
since October 1995.
Mr Ellis is a member of the
Audit Committee and theTechnology Committee.

Non-executive director
since March 1994.
Ms Jackson is a memberof the Audit Committee.

Age 71

Skills, experienceand expertise
A Chartered Accountant,with significant financial
expertise, Ms Jacksonhas broad industrial andcommercial experience
including her involvementin transportation, mining,the media, manufacturing
and insurance. This
expertise coupled withher work in health andeducation contribute to
her role on the Board.

Residence Melbourne.

Age 55Skills, experienceand expertise
Mr Ellis brings to theBoard his analyticalskills together with hispractical understandingof operational issues,
investments andacquisitions arising from his
involvement across a rangeof sectors including natural
resources, manufacturing,biotechnology andeducation.

Residence Melbourne.

Independent Non-Executive
Director, Chairman of theGovernance Committee
Non-executive director
since February 2007.
Mr Macfarlane is a memberof the Risk Committee andthe Technology Committee.
Skills, experienceand expertise
During his 28 year careerat the Reserve Bank ofAustralia including a
10 year term as Governor,
Mr Macfarlane made asignificant contribution toeconomic policy in Australia
and internationally. He hasa deep understanding offinancial markets as well
as a long involvementwith Asia.

Skills, experienceand expertise
Mr Meiklejohn has astrong background in
finance and accounting.
He also brings
to the Board his
experience across anumber of directorships
of major Australiancompanies spanning a
range of industries.

Skills, experienceand expertise
Mr Morschel has a strong
background in banking,financial services andproperty and brings theexperience of being a
Chairman and Directorof major Australian andinternational companies.
Age 65Residence Sydney.

Age 66
Residence Melbourne.

Age 62
Residence Sydney.

Residence Based in
New York, United Statesof America but also resides
in Sydney.

17

ANZ’s approach to corporate responsibility

Peoplefocuses on providing responsible products and services forour customers, creating a diverse and inclusive workforce, andimproving financial capability particularly among the mostdisadvantaged people in our community. This year, we wereassessed as the leading bank globally on the Dow Jones
Sustainability Index for the second consecutive year.

We are creating a diverse and inclusive workplace for our people. Being an organisationthat regards an individual’s gender, background, age, disability or sexuality as an asset
is essential if we are to attract the best people, innovate, identify new business
opportunities and grow in our region.

2008 Progress
Increased the number of women in management
positions from 36.7% in 2007 to 37.2% in 2008
Continued to reduce the pay differential between
male and female employees across our organisation
Made strong progress in implementing the 26
commitments in our Disability Action Plan to
improve the way we value and support people
with disabilities
Employed more than 106 Indigenous trainees in
our Australian branch network
Reduced our Lost Time Injury Frequency Rate (LTIFR)– a standard measure of the effectiveness of
Occupational Health and Safety programs – by 20%
in Australia, however there was a 26% increase
in New ZealandSusie Babani

60% Banking &Finance Avg. 2008
40%

62% ANZ overall 2008

25%

Destructive Zone

Group Managing
Director,
Strategy andMarketing2008 Progress
Implemented Customer Connect, a new program to better identify and assist retail customers infinancial difficulty
Achieved 86% of the 29 service commitments in our Customer Charter. In particular, 82% of customers
in our branches were served in less than 5 minutes and we achieved an 87% satisfaction rating for ourcustomer service in branches
Retained our “Number 1” Lead bank ranking in the annual survey of large corporate and institutional
clients by Peter Lee and Associates
Developed new social and environmental policies to guide Institutional lending decisions in the forestry,mining, energy and water sectors
Applied the Equator Principles to 100% of transactions in our Project Finance business

%
85
80
75
70
65
Aug 08Peer 3

May 08

Jan 08Peer 2

Sep 07Peer 1

May 07ANZ

Jan 0760

Sep 06*Based on research by Roy Morgan Finance Monitor(main financial institution: 6 months rolling*)

May 06

High performance/
best employer zone

A leader in customer satisfaction
ANZ’s retail customer satisfaction* remains thehighest of all major banks in Australia. Overall,
we experienced a slight decline in customer
satisfaction this year, from 77.2% in August 2007
to 76.4% in August 2008. This was consistent
with an industry-wide trend reflecting the global
financial crisis and the impact of interest rate
rises on consumers.

Jan 06

Serious Zone
Indifferent Zone

18

Margaret Payn

Sep 05*Based on research by Hewitt Associates

We provide our customers with simple,
convenient and responsible products
and services and ensure that our lending
and investment decisions are guided
by sound economic, social andenvironmental standards. This year,
we enhanced our measures to support
customers in financial difficulty.

ANZ Employee engagement

Group General Manager, Human Resources

ANZ has one of the more engaged workforces ofany financial services company in Australia and
New Zealand.* Our annual Employee and Culture
census revealed Employee Engagement levelsof 62%, a slight decrease from 2007.

Customers

19Community

Environment &Supply Chain

We work with our community partners to improve levels of financial literacy,
money management skills and social and financial inclusion, especially among
the most disadvantaged people in our communities.

We recognise that to be a trusted member of the community, we must be awareof how our business affects the environment and assist our customers and supply
chain to identify and manage their impacts.

2008 Progress2008 Progress

More than 1,500 low-income earners are participating in our Saver Plus matched savings and financial
literacy program. 70% of past participants are still saving the same amount or more two to three years
after completing the program
33,000 low-income earners participated in our MoneyMinded financial education program in Australia
and New ZealandWe issued more than 290 Progress Loans. These are small, safe and affordable loans for low-income
earners who traditionally have difficulty accessing mainstream credit
Our employees globally contributed nearly 80,000 hours of volunteering
15% of our employees contributed more than $600,000 in total, matched by ANZ, via our payroll
giving program
Strong progress was made in achieving the 21 initiatives in our Reconciliation Action plan. This plan
aims to increase employment opportunities, improve financial literacy and inclusion, develop better
understanding of Indigenous cultures and help build the capacity of Indigenous communities andorganisations throughout Australia

Electricity consumption per Full Time Equivalent employee (FTE) has reduced by 4% in Australia andwe expect that this will lead to an overall reduction in our greenhouse gas emissions
Water consumption is estimated to be down 8% per FTE based on data from some of our key sites
where water-efficient air-conditioning chillers have been installed in the past 12 months
Waste to landfill has increased by 5% per FTE
Overall paper consumption per FTE has declined by 6% in Australia. ANZ’s office paper decreased by
7% and there has been a 5% decrease in the print paper used in marketing materials, including
statements, forms and envelopes
We reviewed and published version two of ANZ’s Sustainable Procurement Policy and released newsocial and environmental guidelines for the procurement of IT goods and services and motor vehicles.
We also completed social and environmental screenings for a further 77 suppliers in Australia and
New ZealandInvesting in our communities*	F irst year that ANZ applied the London Benchmarking Group(LBG) model for valuing corporate community investment

20

Total Community Investment
Spend per employee$
08 07 06* 05 04

Our total community investment* in 2008 was
nearly $19 million, which included programs andinitiatives to build financial literacy and inclusionin the community and the contribution our staff
make to the causes important to them.

390
240
204

Total Community
Investment Spend
$m

490

18.9

481

17.8
13.8
8.3
6.6

Progress against two–year goals(by 30 Sept 09)

We have made a solid start in achieving our
two–year targets to reduce our environmental
footprint in Australia. We are on track to achieve a
5% reduction in electricity and water consumption
per FTE, as well as our 10% reduction in paper

Goal*	T he environmental performance figures above are pending
external verification

Reduce water usage by 5%

Progress

Reduce electricity consumption by 5%
Reduce paper purchased by 10%

Reduce waste to landfill by 10%

On track

Behind schedule21

Handy Contacts

Share Registrar

ANZAustralia
GPO Box 2975 Melbourne VIC 3001 Australia
Telephone 1800 11 33 99 / +613 9415 4010
Facsimile +613 9473 2500
anzshareregistry@computershare.com.au

Company Secretary’s Office
Level 14 100 Queen Street
Melbourne VIC 3000 Australia
Telephone +613 9273 6141
Facsimile +613 9273 6142
Company Secretary: Bob Santamaria

Investor Relations

New Zealand
Private Bag 92119 Auckland 1020 New Zealand
Telephone 0800 174 007 Facsimile +649 488 8787

Level 22 100 Queen Street
Melbourne VIC 3000 Australia
Telephone +613 9273 6466Facsimile +613 9273 4899
investor.relations@anz.com

United Kingdom
PO Box 82 The Pavilions
Bridgwater Road Bristol BS99 7NH
Telephone +44 870 702 0000
Facsimile +44 870 703 6101

Our International Presence
Australia
New Zealand
Asia Cambodia, China,
Hong Kong, India, Indonesia,
Japan, Korea, Laos, Malaysia,
Philippines, Singapore, Taiwan
Thailand, Vietnam
Pacific American Samoa, Cook
Islands, East Timor, Fiji, Guam,
Kiribati, New Caledonia,
Papua New Guinea, Samoa,
Solomon Islands, Tonga, Vanuatu
EuropeMiddle East
United Kingdom
United States of America

Important Dates For Shareholders*
Date

Event

18 December 2008	Annual General Meeting – Brisbane
18 December 2008 Final Dividend Payment
23 April 2009
Interim Results Announcement
7 May 2009
Interim Dividend Ex-Date
13 May 2009
Interim Dividend Record Date
01 July 2009
Interim Dividend Payment Date
22 October 2009
Annual Results Announcement
5 November 2009 Final Dividend Ex-Date
11 November 2009 Final Dividend Record Date
18 December 2009 Final Dividend Payment Date
18 December 2009 Annual General Meeting –Melbourne* If there are any changes to these dates, the Australian Securities
Exchange will be notified accordingly.

www.anz.com
22

Australia and New Zealand Banking Group Limited ABN 11 005 357 522