Transcript No Slide Title

2000 Interim Results
Australia and New Zealand Banking Group Limited
1 May 2000
ANZ Delivers on Financial Commitments

Double-digit earnings growth
14%. EPS 10%

Increase ROE towards 20%
17.8% (17.3%)

53% cost income ratio
51.4% Costs flat

Reduce risk
Matches peers ex Grindlays

Achieve an optimal capital structure
$500m buyback completed
$1bn buyback announced
Financial Performance
EPS
¢
Tier 1 Ratio
%
10
120
100
20
80
15
%
8
ROE
6
4
2
1997
40
0
10
60
1998
1999
1997
1998
1999
Mar-00
%
Mortgages
30
1999
Mar-00
Cost Income Ratio
70
35
1998
5
Lending Mix
%
1997
Mar-00
65
25
60
20
15
Emerging Markets
10
WBC
55
NAB
5
50
0
1998
1999
Mar-00
ProForma
1997
1998
1999
CBA
ANZ
Mar-00
Drivers of Performance
Net Interest
Assets
ROA 
0.98
ROE
17.2
1.02

2.41
2.34
99
1h00
Other Income
Assets
17.8
1.57
99
X
NII/Interest Earning
Assets
3.05
2.93
99
1h00

1.69 / 1.61*
1h00
Cost/Income
99
“Leverage”
17.6
1999
X
17.5
2.17
1h00
Cost
Assets
2.07


54.5
51.4/ 52.4*
99
1h00
1h00
99
1h00
Provisions
Assets 
99
Risk
*/ 52.4 excludes abnormal income
Provisions/NLA
0.34
0.32
0.43
0.40
99
1h00
99
1h00
1h00
Business Mix

Business Unit Performance
Group 8%
International 9%
A$
Personal 45%
400
350
Corporate 38%
300
250
200
150
100
50
0
Personal
International
Corporate
1H99
2H99
1H00
Other
Change in Profit
Other
Income
Other Fee
17
Growth
30
Doubtful
Lending Fee
Debts
20
Net Interest
(4)
Income
34
$m
850
800
764
750
Sale of
Strategic
Investments
33
Property
Revaluation
30
Costs
(9)
817
Tax
(34)
Restatement of
Deferred Tax
Balance
(64)
Significant one off items
(1)
700
650
600
Second Half
1999
First Half
2000
Improving Asset Quality
Provisioning: ELP v SP
Non Accrual Loans
$m
$m
140
120
762
886
Personal
Financial
Services
Corporate
Financial
Services
International
100
871
80
60
444
40
900
657
428
554
20
0
1997
1998
Net Non Accrual Loans
1999
1H00
Specific Provisions
Mar-99
Mar-00 Mar-99
ELP
Mar-00 Mar-99
SP
Mar-00
Transformation from the Sale of Grindlays
Net
Lending
Assets
ELP
%
Percentage of Grindlays Exposure to
Countries Rated below ‘Single A’
1.1
%
82
0.4
Grindlays
48
Group
Of Group
Exposure <A
Proforma ROE March 00 Post Grindlays
Sale
17.8%


-1.9%
-1.4%
15.9%
Excludes warranties and indemnities
Buyback
17.3%
Of Total Grindlays
Exposure

Comparable ROE and leverage yet much
lower risk
Scope for further capital management
Proforma includes re-investment of sales
price excluding “free funds” effect of
sales provisions
Transformation from the Sale of Grindlays
Tier 1 Ratios
Sale
Buyback
Other Influences

RWA
0.5
0.8

Profit
0.3
EPS - Proforma March 2000 (Annualised)
Sale
Buyback
Other Influences


5-6¢

2-3¢ Buyback
Lower risk implies move to
lower end of 6.0 - 6.5% range
NZ Tracking Stock
 0.4% Tier 1
 60/40 2000 & 2001
Significantly lower risk
Higher quality income streams
More consistent business
Buyback to Reduce Capital Surplus
12
%
Capital Adequacy
Capital Management Philosophy:
10

8

6
4
2

0
1997
1998
Inner Tier 1
1999
1H00 Target
Hybrid Tier 1
Net Tier 2
Capital scarce 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% - 6.5%)
aligned to Economic Capital
$500 million buyback completed
$1B buyback announced
Good Progress on Business Strategies
Business Strategy

Accelerate growth in Personal

Build on strength in Corporate

Simplify and focus International

Build leadership in e-Commerce
Outcomes
Mortgage & cards share up
Personal 45% of group
profit FM challenging, new team
Leadership position enhanced
ROA 0.9% (0.7%)
Non accruals 0.4% (0.9%)
Grindlays sale
Latin America Offices closed
Asia-Pacific e-Commerce focus
Approaching leadership B2C
Strong portfolio B2B
Web enabled internal processes
Numerous venture investments
Delivering via the Web
B2C
B2B
FX On-line
(ANZ On-Line)
Identrus
E-Procurement
eisa
Transformation
Directors on line
operations.com
Employee PCs
Sales & Service
Platform
ERP
Enterprise Resource
Planning
Clear Strategic Direction
Imperatives

Improve sustainability of core franchise

Radically transform the business

Accelerate growth program

Develop strategic international positions
Clear Strategic Direction
Imperative
Response
Improve sustainability of core franchise
Accelerate growth of up-scale segments in Personal
Address retail funds management strategic position
Seek value enhancing infill acquisitions in Personal
Continue to build leadership in Corporate
Radically transform the business
Revolutionise cost base with web-based technology
Rapidly enable ANZ customers on anz.com
Become a more customer-centric company
Build culture and talent to compete in the new economy
Accelerate growth program
Develop strategic international positions
Accelerate pace of investment in growth segments
Build substantial portfolio of e-products and businesses
Accelerate medium-term search for transforming acquisitions
Improve our capacity longer term to participate in industry
consolidation on our terms
Build semi-global niche positions in trade, FX, structured
finance, cards and e-Commerce
Rapidly roll-out e-Commerce investments in Asia
Financial Goals Going forward

EPS growth that outperforms the average of our peer
banks

Increasing Return on Equity: Target 20%

A cost income ratio comfortably below 50%

An Inner Tier 1 ratio approaching 6%

Maintenance of credit rating in AA category
Personal Momentum
14
%
Share of Housing Lending
%
Share of Credit Card Spend
30
13
25
12
11
20
10
Jun-94
15
Jun-94
May-96
Apr-98
Feb-00
May-96
Apr-98
Internet Banking Users as % of Main Relationships
14.3
11
10.3
10.2
4.9
ANZ
WBC
St George
NAB
CBA
Source Ord Minnett and Roy Morgan Research
Feb-00