Investor Presentation

February 2001

Australia and New Zealand Banking Group Limited

Peter Marriott, Chief Financial OfficerRick Sawers, Group Treasurer

Bruce Mathrick, Executive Treasurer, Group FundingRoss Glasscock, Treasurer, Strategic Funding

Page 2

1. Group Overview

2. Business and Strategic Overview

3. Financial/Operating Performance Overview

4. Debt Funding Strategy

5. Summary

Page 3

ANZ

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.

Assets A$172bn1 (US$96bn)

Market Cap A$22bn2 (US$12bn)

Profit (pre abnormals) A$1,703mm3 (US$954mm)

Tier 1 Capital Ratio 7.4%3

Employees 23,1341

Credit Ratings AA - (stable) S&P2

Aa3 (stable) Moody’s1. Company Annual 30 September 2000

2. As at 7 January 2001

3. SSB Research 27 October 2000

ANZ Group Overview

Page 4

Highlights

Earnings growth of 15.0% (13.3% compound since 1997)

Return on equity 18.3% (17.2% - 1999)

Cost income ratio 51.7% (54.5% - 1999)

Grindlays sold, realising net profit after tax of $404m after related provisions and lowering risk profile

Income up 6%, costs flat, Economic Loss Provision (ELP) down 4bp’s to 39bp’s

Restructuring charge (A$361m) to accelerate transformation program

Page 5

Leading market position

7th largest company in Australia by Market Capitalisation (A$22bn)

One of the 4 Major Banks in Australia, who represent over 66% of total Australian banking assets

Leading mortgage originator bank in Australia for the last 2 years

4 million retail customers - 3 million in Australia, 1 million in New Zealand

1,021 points of representation throughout Australia and New Zealand

Leading banker to Australian and New Zealand corporations (81,000 customers)

Page 6

Market Share

Growth has been strong, particularly in mortgages and cards

Consistently increased market share, without material acquisitions

15

17

19

21

23

25

27

29

Sep-95

May-96

J an-97

Sep-97

May-98

J an-99

Sep-99

May-00

10.0

10.5

11.0

11.5

12.0

12.5

13.0

13.5

14.0

14.5

15.0

Sep-95

May-96

J an-97

Sep-97

May-98

J an-99

Sep-99

May-00

Mortgages % outstandingCards % turnover

Australian market share - assets %

12

13

14

15

16

17

18

Sep-97

ANZ

CBA

NAB

WBC

Mar-98

Sep-98

Mar-99

Sep-99

Mar-00

Page 7

1. Group Overview

2. Business and Strategic Overview

3. Financial/Operating Performance Overview

4. Debt Funding Strategy

5. Summary

Page 8

Australian Financial Services Landscape

Financial services industry in Australia currently undergoing a

phase of consolidation and convergence

Banks seeking to diversify revenue streams away from

interest income into fee income

Increased focus on efficiency through application of web

based technology

Government “Four Pillars Policy” currently prohibits mergers

between the 4 major banks

Page 9

Building for the Future: Outline of ANZ Strategy

Specialise

Performand Grow

e-Transform

Proposition

Specialists will win over conglomerates

Corporations need to embrace new technologies

Value depends on performance and growth

Strategy

Reconfigure ANZ as a portfolio of specialist businesses

An e-Bank with a human face

Drive results whilst investing in growth businesses

Implications

Specialist approach to customer and product businesses

Transform the way we do business by using IP technology

Meet expectations, fund growth by cost reduction

Page 10

Mortgages Credit cards

Personal Wealth Management

Small Business General Banking

Corporate Foreign Exchange Capital Markets Structured Finance

Institutional Corporate

Asset Finance

GTS B2B eCommerce

Customer Segments

Products

Int’leCommerce

Asia Pacific

ePortfolio Asia Australia/NZ

ANZFM B2C eCommerce

Internal Utility Payments Group

Treasury

Technology

Our Portfolio of Specialist Businesses

Page 11

Financial Goals to 2003

EPS growth that exceeds peer group average

ROE over 20%

Maintain AA category credit rating

Active capital management:

Tier 1 of 6.5%-7.0%

Inner Tier 1 of 6.0%

Cost-income ratio comfortably in the 40s

Page 12

1. Group Overview

2. Business and Strategic Overview

3. Financial/Operating Performance Overview

4. Debt Funding Strategy

5. Summary

Page 13

Financial Summary

Sep 98 Sep 99 Sep 00

Market Capitalisation (A$bn) 13.9 16.0 20.0

Total Capital Adequacy Ratio 10.7% 10.7% 10.2%

Tier 1 Ratio 7.2% 7.9% 7.4%

Total Assets (A$bn) 153.2 152.8 172.5

Net Impaired Assets as % of RWA 0.8% 0.6% 0.6%

Net Profit After Tax (A$bn) 1.1 1.5 1.7

Cost to Income Ratio 60.9% 54.5% 51.7%

Return on Average Assets 0.7% 1.0% 1.1%

Return on Average Ordinary Equity 14.6% 17.2% 18.8%

Earnings growth of 15% in 2000 (CAGR 13.3% since 1997)

Income up 6% pa, costs flat

Grindlays sold realising NPAT of A$404m after related provisions but gain offset by restructuring and other provisions

Page 14

Superior Financial Performance Delivered

1171 1175

1480

1703

400

800

1200

1600

2000

1997 1998 1999 2000

NPAT

CAGR 13.3%

18.3

16.915.5

17.2

10

12

14

16

18

20

1997 1998 1999 2000

%ROE

51.7

54.5

60.963.1

45

50

55

60

65

1997 1998 1999 2000

Cost Income Ratio%

0

400

800

1200

1600

2000

1997 1998 1999 2000

0.0%

0.5%

1.0%

1.5%

2.0%

Historic Non-Accrual Loans

Net Non-Accrual Loans (LHS)

Gross Non-Accrual Loans (LHS)

Non-Accrual Loans/Loans & advances (RHS)

A$m

A$m

Excluding abnormals

Page 15

Good Progress in All Areas

1999 2000

A$1,200

A$1,300

A$1,400

A$1,500

A$1,600

A$1,700

A$1,800

A$1,900

1480

Net interest income

146

Lending fee 48

Other fee 111

Other income

47

Debt provisioning

8

Costs (14)

Tax and outside equityinterests

(123)

Profit before abnormals

1703

Abnormals44

Net profit after abnormals

1747

2000

Page 16

Continued improvement in Cost to Income Ratio

45

50

55

60

65

70

1997 1998 1999 2000

NABCBAWBCANZUK BANKS

Target - comfortably in the 40’s

51.7

63.1

Operating expenses have remained flat despite revenue growth1. 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 and Standard Chartered

%

Page 17

With Diversified and Improving Credit Risk

302

772

547

647

251

149

1997 2000

NPAT Distribution of Gross Loans & Advances

41,577

65,264

46,861

45,6847,966

5,930

1997 2000

27%

50%

23%

49%

41%

10%

56%

39%

5%

43%

49%

8%

Personal Financial Services Corporate Financial Services International

Page 18

Composition and Quality of the book continued to improve

18 16

1615

49 53

14 13

3 30%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1999 2000

AAA to BBB+

BBB to BBB-

BB + to BB

BB-

> B

Australian Lending Asset Profile

28.4 31.7 36.2 40.6

41.843.6

45.548.4

0

10

20

30

40

50

60

70

80

90

100

Mar-99 Sep-99 Mar-00 Sep-00

Other

Mortgages

A$b

Australian Loans & Advances

Investment grade 66% of book

Diversified portfolio

Minimal exposure to media/telcos

ANZ risk gradings correlated to S&P

Mortgages now represent 46% of book, up from 40% in March 1999

Page 19

We Have Diversified Credit Risk

Americas4%

UK / Europe5%

New Zealand12%

Australia74%

Asia Pacific5%

Total Assets: Geographic Distribution

Net Loans and Advances: Industry DiversificationLease Finance

3%

Other7%

Manufacturing8%

Agriculture, Forestry, Fishing,

Mining6%Business Service

2%

Entertainment, Leisure and

Tourism2%

Government and Official I nstitutions

1%

Financial, I nvestment and

I nsurance6%

Real Estate - Construction

2%

Personal10%

Real Estate - Mortgage

47%

Retail and Wholesale Trade

6%

Page 20

Percentage of Grindlays Exposure toCountries Rated below ‘Single A’

Major Risk Transformation via Sale of Grindlays

48

82

%

Comparable ROE and leverage yet much lower risk

Of GroupExposure<A

Of Total Grindlays Exposure

39

113

36

ELP (bps)

Continuing

Group 2000

Grindlays

Page 21

0

300

600

900

1200

1996 1997 1998 1999 2000

0

3

6

9

12

15

Other Countries

Australia

Net Impaired assets as % of Total Shareholder Equity (RHS)

Net Impaired Assets

Sound Asset Quality and Provisioning

Aggregate Provisions

0

500

1000

1500

2000

2500

1996 1997 1998 1999 2000

0

50

100

150

200

250

General Provision

Specific Provision

Provisions as % of Gross Impaired Assets

A$m

%A$m

times

* As at September 2000, ANZ had a provision surplus of A$406m relative to APRA guidelines

2.7

3.1

1.5

1.7

1.9

2.1

2.3

2.5

2.7

2.9

3.1

3.3

1999 2000

General ProvisionELP charge*

Page 22

Strong Capital Position

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

Mar-99 Sep-99 Mar-00 Sep-00100

105

110

115

120

125

130

135

140

Tier 1

Inner Tier 1

RWA's

% $b

7.77.9

7.5

7.4

6.76.9

6.56.4

Progress: A$1.1bn of buyback completed Remaining A$400mn buyback

will be completed in the first half

Capital ManagementPhilosophy: Valuable resource to be managed

effectively and efficiently Maintain capital consistent with

ANZ’s AA status and peer group ratings

– Tier 1 (6.5 - 7.0%)– Inner Tier 1 (6.0%)

Page 23

1. Group Overview

2. Business and Strategic Overview

3. Financial/Operating Performance Overview

4. Debt Funding Strategy

5. Summary

Page 24

Debt Funding Strategy

Ensure continued access to all international capital markets

Pursue diversification

- Investors

- Markets

- Structures (implications of FASB 133)

Ensure market recognition of ANZ credit credentials through debt investor presentations

Periodic Benchmark Issuance

Page 25

Review of Term Funding for 1999/2000

AUD13% CHF

2%

E20%

HKD10%

USD54%

JPY1%

Term lending > than 1 year funded to 15% by term wholesale debt > than 1 year

1999/2000 fiscal year

- Issued A$5.9 billion term wholesale debt

11% domestic market (Issuer of the year/Deal of the year)

80% euro market

9% US market

Page 26

Wholesale Funding Objectives

Between 10% and 15% of term lending greater than 1 year is to be funded by term wholesale funding greater than 1 year

2000/2001 fiscal year

- Funding requirement of A$6bn dependant on securitisation issuance

- Anticipate sourcing:

20% domestic market

80% offshore markets

Prudent liability management - spread of term maturities from 1 to 5 years, with a weighted average term of 3 years

Page 27

1. Group Overview

2. Business and Strategic Overview

3. Financial/Operating Performance Overview

4. Debt Funding Strategy

5. Summary

Page 28

Summary

Commitment to AA category credit rating

Responsible capital management philosophy

Defined strategy to re-configure ANZ into a portfolio of

specialist businesses

Sound asset quality with lowered risk

Cost to income very low by global standards, and continuing to

trend downward

Commitment to regular and disciplined wholesale debt issuance

Appendix

Page 30

Australia’s Strong Economic Fundamentals

0

1

2

3

Jun-

97

Dec

-97

Jun-

98

Dec

-98

Jun-

99

Dec

-99

Jun-

00

29

30

31

32

33

Quarterly GDP Growth (LHS)

LTM GDP Per Capita (RHS)

A$’000%

0

0.2

0.4

0.6

0.8

1

Jun-

97

Dec

-97

Jun-

98

Dec

-98

Jun-

99

Dec

-99

Jun-

00

0

1

2

3

Qtr on Qtr (LHS)

Yr on Yr (RHS)

%%

Inflation Gross Domestic Product

Page 31

0

2

4

6

8

10

Jun

-97

Dec

-97

Jun

-98

Dec

-98

Jun

-99

Dec

-99

Jun

-00

0

2

4

6

8

Current A/C Deficit (LHS)

CAD/GDP (RHS)

%%

A$bA$b

8.0

8.2

8.4

8.6

8.8

9.0

Jun

-97

Dec

-97

Jun

-98

Dec

-98

Jun

-99

Dec

-99

Jun

-00

5

6

7

8

9

Employed Persons (LHS)

Unemployment Rate (RHS)

%%‘‘000s000s

Australia’s Strong Economic Fundamentals

Current Account Employment

Page 32

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