Australia and New Zealand Banking Group Limited Investor

Australia and New Zealand Banking Group Limited Investor Presentation February 2001 Peter Marriott, Chief Financial Officer Rick Sawers, Group Treasurer Bruce Mathrick, Executive Treasurer, Group Funding Ross Glasscock, Treasurer, Strategic Funding

1. Group Overview 2. Business and Strategic Overview 3. Financial/Operating Performance Overview 4. Debt Funding Strategy 5. Summary Page 2

ANZ Group Overview One of the ‘Big Four” Australian banks. Provider of full range of financial services in Australia (since 1835) and New Zealand (since 1840) with leadership in Corporate Banking, Credit Cards and Mortgage origination, a strong e-Commerce position and an offshore network in Asia and Pacific. ð Assets A$172 bn 1 (US$96 bn) ð Market Cap A$22 bn 2 (US$12 bn) ð Profit (pre abnormals) A$1, 703 mm 3 ð Tier 1 Capital Ratio 7. 4%3 ð Employees 23, 1341 ð Credit Ratings AA - (stable) S&P 2 Aa 3 (stable) Moody’s 1. Company Annual 30 September 2000 2. As at 7 January 2001 3. SSB Research 27 October 2000 Page 3 (US$954 mm)

Highlights ð Earnings growth of 15. 0% (13. 3% compound since 1997) ð Return on equity 18. 3% (17. 2% - 1999) ð Cost income ratio 51. 7% (54. 5% - 1999) ð Grindlays sold, realising net profit after tax of $404 m after related provisions and lowering risk profile ð Income up 6%, costs flat, Economic Loss Provision (ELP) down 4 bp’s to 39 bp’s ð Restructuring charge (A$361 m) to accelerate transformation program Page 4

Leading market position ð 7 th largest company in Australia by Market Capitalisation (A$22 bn) ð One of the 4 Major Banks in Australia, who represent over 66% of total Australian banking assets ð Leading mortgage originator bank in Australia for the last 2 years ð 4 million retail customers - 3 million in Australia, 1 million in New Zealand ð 1, 021 points of representation throughout Australia and New Zealand ð Leading banker to Australian and New Zealand corporations (81, 000 customers) Page 5

Market Share Australian market share - assets % ð Growth has been strong, particularly in mortgages and cards 18 17 16 15 ANZ 14 CBA 13 NAB WBC 12 Sep 97 ð Consistently increased market share, without material acquisitions Mar 98 Sep 98 Mar 99 Sep 99 Mar 00 Cards % turnover Mortgages % outstanding Page 6

1. Group Overview 2. Business and Strategic Overview 3. Financial/Operating Performance Overview 4. Debt Funding Strategy 5. Summary Page 7

Australian Financial Services Landscape ð Financial services industry in Australia currently undergoing a phase of consolidation and convergence ð Banks seeking to diversify revenue streams away from interest income into fee income ð Increased focus on efficiency through application of web based technology ð Government “Four Pillars Policy” currently prohibits mergers between the 4 major banks Page 8

Building for the Future: Outline of ANZ Strategy Proposition Strategy Implications Specialise ð Specialists will win over conglomerates ð Reconfigure ANZ as a portfolio of specialist businesses ð Specialist approach to customer and product businesses e-Transform ð Corporations need to embrace new technologies ð An e-Bank with a human face ð Transform the way we do business by using IP technology Perform and Grow ð Value depends on performance and growth ð Drive results whilst investing in growth businesses ð Meet expectations, fund growth by cost reduction Page 9

Our Portfolio of Specialist Businesses Products Customer Segments Personal ð Wealth ð Mortgages ð Credit cards ð ANZFM ð B 2 C e. Commerce Corporate ð Institutional ð Foreign Exchange ð Asset Finance ð Corporate ð Capital Markets ð GTS Management ð Small Business ð General Banking ð Structured Finance Int’l e. Commerce ð Asia Internal ð Utility ð B 2 B e. Commerce ð e. Portfolio ð Pacific ð Asia ð Australia/NZ ð Payments ð Group Treasury Page 10 ð Technology

Financial Goals to 2003 ð EPS growth that exceeds peer group average ð ROE over 20% ð Maintain AA category credit rating ð Active capital management: ð Tier 1 of 6. 5%-7. 0% ð Inner Tier 1 of 6. 0% ð Cost-income ratio comfortably in the 40 s Page 11

1. Group Overview 2. Business and Strategic Overview 3. Financial/Operating Performance Overview 4. Debt Funding Strategy 5. Summary Page 12

Financial Summary Sep 98 Sep 99 Sep 00 Market Capitalisation (A$bn) 13. 9 16. 0 20. 0 Total Capital Adequacy Ratio 10. 7% 10. 2% 7. 9% 7. 4% Tier 1 Ratio Total Assets (A$bn) 153. 2 152. 8 172. 5 Net Impaired Assets as % of RWA 0. 8% 0. 6% Net Profit After Tax (A$bn) 1. 1 1. 5 1. 7 60. 9% 54. 5% 51. 7% 0. 7% 1. 0% 1. 1% 14. 6% 17. 2% 18. 8% Cost to Income Ratio Return on Average Assets Return on Average Ordinary Equity ð Earnings growth of 15% in 2000 (CAGR 13. 3% since 1997) ð Income up 6% pa, costs flat ð Grindlays sold realising NPAT of A$404 m after related provisions but gain offset by restructuring and other provisions Page 13

Superior Financial Performance Delivered A$m NPAT % ROE CAGR 13. 3% Excluding abnormals % Cost Income Ratio A$m Historic Non-Accrual Loans Gross Non-Accrual Loans (LHS) Net Non-Accrual Loans (LHS) Page 14 Non-Accrual Loans/ Loans & advances (RHS)

Good Progress in All Areas Other fee 111 Lending fee Net interest 48 income 146 Other income 47 Costs (14) Debt provisioning 8 Profit before abnormals 1703 Net profit after abnormals 1747 Abnormals 44 Tax and outside equityinterests (123) 1480 2000 1999 Page 15 2000

Continued improvement in Cost to Income Ratio 63. 1 % 51. 7 Target comfortably in the 40’s ð Operating expenses have remained flat despite revenue growth 1. UK Banks are a weighted average of Abbey National, Alliance and Leicester, Bank of Scotland, Barclays, Halifax, HSBC, Lloyds TSB, Northern Rock, Royal Bank of Scotland Standard Chartered Page 16

With Diversified and Improving Credit Risk Distribution of Gross Loans & Advances NPAT 149 647 23% 251 10% 8% 41% 7, 966 5, 930 5% 45, 684 39% 46, 861 49% 50% 547 65, 264 772 49% 27% 41, 577 302 1997 56% 43% 1997 2000 Personal Financial Services Corporate Financial Services Page 17 2000 International

Composition and Quality of the book continued to improve Australian Loans & Advances Australian Lending Asset Profile AAA to BBB+ BBB to BBBA$b BB + to BB BB>B ð Investment grade 66% of book ð Mortgages now represent 46% of book, up from 40% in March 1999 ð Diversified portfolio ð Minimal exposure to media/telcos ð ANZ risk gradings correlated to S&P Page 18

We Have Diversified Credit Risk Total Assets: Geographic Distribution Net Loans and Advances: Industry Diversification Page 19

Major Risk Transformation via Sale of Grindlays ELP (bps) Percentage of Grindlays Exposure to Countries Rated below ‘Single A’ % Of Group Exposure<A Group 2000 Grindlays Of Total Grindlays Exposure Comparable ROE and leverage yet much lower risk Continuing Page 20

Sound Asset Quality and Provisioning Net Impaired Assets A$m % Aggregate Provisions A$m General Provision ELP charge* times * As at September 2000, ANZ had a provision surplus of A$406 m relative to APRA guidelines Page 21

Strong Capital Position % Capital Management Philosophy: $b 7. 7 ð Valuable resource to be managed effectively and efficiently ð Maintain capital consistent with ANZ’s AA status and peer group ratings – Tier 1 (6. 5 - 7. 0%) – Inner Tier 1 (6. 0%) 7. 9 7. 5 7. 4 6. 7 6. 9 6. 5 6. 4 Progress: ð A$1. 1 bn of buyback completed ð Remaining A$400 mn buyback will be completed in the first half Page 22

1. Group Overview 2. Business and Strategic Overview 3. Financial/Operating Performance Overview 4. Debt Funding Strategy 5. Summary Page 23

Debt Funding Strategy 1. Ensure continued access to all international capital markets 2. Pursue diversification - Investors - Markets - Structures (implications of FASB 133) 1. Ensure market recognition of ANZ credit credentials through debt investor presentations 2. Periodic Benchmark Issuance Page 24

Review of Term Funding for 1999/2000 ð Term lending > than 1 year funded to 15% by term wholesale debt > than 1 year ð 1999/2000 fiscal year - Issued A$5. 9 billion term wholesale debt w 11% domestic market (Issuer of the year/Deal of the year) w 80% euro market AUD 13% w 9% US market CHF 2% E 20% USD 54% JPY 1% Page 25 HKD 10%

Wholesale Funding Objectives ð Between 10% and 15% of term lending greater than 1 year is to be funded by term wholesale funding greater than 1 year ð 2000/2001 fiscal year - Funding requirement of A$6 bn dependant on securitisation issuance - Anticipate sourcing: 20% domestic market 80% offshore markets ð Prudent liability management - spread of term maturities from 1 to 5 years, with a weighted average term of 3 years Page 26

1. Group Overview 2. Business and Strategic Overview 3. Financial/Operating Performance Overview 4. Debt Funding Strategy 5. Summary Page 27

Summary ð Commitment to AA category credit rating ð Responsible capital management philosophy ð Defined strategy to re-configure ANZ into a portfolio of specialist businesses ð Sound asset quality with lowered risk ð Cost to income very low by global standards, and continuing to trend downward ð Commitment to regular and disciplined wholesale debt issuance Page 28

Appendix

Australia’s Strong Economic Fundamentals Gross Domestic Product Inflation % % % Page 30 A$’ 000

Australia’s Strong Economic Fundamentals Current Account ‘ 000 s A$b % Page 31 Employment %

The material in this presentation is general background information about the Bank’s activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate. For further information visit www. anz. com Page 32