Sale of Grindlays to Standard Chartered Australia and

Sale of Grindlays to Standard Chartered Australia and New Zealand Banking Group Limited 27 April 2000

Announcement key points m Sale price of US$1. 3 ($A 2. 2) billion in cash m In addition, ANZ receives dividends of $US 0. 5 (A$0. 9) billion from Grindlays retained earnings m Sale (excluding dividends) equals 2. 3 times book value and 14. 2 times annualised first half 2000 earnings m Cooperation Agreement with Standard Chartered to service ANZ customers m Buyback of A$1 billion - one of the largest in Australia m ANZ to focus on growth in Australia, New Zealand Asia Pacific, with increased emphasis on e-commerce

Strategy - what we said May ‘ 99 m Re-balance business mix largely organically m Focus on four strategic businesses – accelerate growth in personal – build on strong position in corporate – simplify and focus International on Asia and the Pacific – build leading presence in e-commerce m Transform management process to ensure execution and delivery

Strategic logic m Sale of Grindlays simplifies and focuses international in one move m Strategically attractive for both organisations m Advances strategic repositioning of International – focus on Asia-Pacific m ANZ continues to service core customers – cooperation agreement with Standard Chartered on trade finance, project finance and corporate advisory in Middle East and South Asia – global businesses in FX, capital markets, trade and project finance m Rationale for Standard Chartered – focus on emerging markets - now the leading international bank

Transaction outcomes - countries m m Country representations included in the Standard Chartered transaction – Bangladesh, India, Sri Lanka, Nepal, Pakistan, UAE, Qatar, Bahrain, Iran, Jordan, Israel, Greece – Grindlays Private Banking operations in London, Jersey, Switzerland ANZ ongoing international presence – 23 countries in Asia (11), Pacific (8), Europe (3) and America (1)

Key terms m Sale price of US$1. 3 (A$2. 2) billion comprising – Net Asset Value US$590 (A$990) million – Goodwill US$750 ($A 1, 250) million m m Dividends of $US 0. 5 (A$0. 9) billion from Grindlays retained earnings Key price multiples (excluding dividend) – 2. 3 times net asset value, 14. 2 times annualised first half 2000 earnings m Final consideration subject to Net Asset Value at completion m Customary representations and warranties and indemnity regarding litigation matters including NHB m Completion expected by 3 Q 2000 subject to regulatory

ANZ - a relentless focus on value Turning point for banks? Clear direction for ANZ m m Pressure to consolidate m Funds Management focus ¦ Unprecedented change driven by new economy • real risks for those who don’t change fast m Core business portfolio repositioned, now strong Disciplined management • value orientated • radical transformation to release and build value • capital management

Appendix: Financial details m Customers/Clients 870, 000 m Employees 5, 400 m Branches (inc. Grindlays Private Bank) 114 m NPAT Year ended 30 September 1999 A$149 million Half Year ended 31 March 2000 A$79 million m Assets* billion Total External Assets Risk Weighted A$8 billion * As at 31 March 2000 Assets A$10

Summary m Good outcome for shareholders m Generates immediate value m Simplifies and focuses international in one move m “Win-Win” for both companies