What do our customers want? - their top 3 needs are

Corporate Banking Institutional Banking

• ‘Balance Sheet’ on reasonable

terms

• Partner & trusted advisor • Smart products / customised

solutions CB to focus on:

• Wall St to Main St • Cross sell products from the

Personal businesses into our customer base:

• Corporate portal to lower cost

to serve

• Industry Knowledge • Creative ideas and solutions • High quality service proposition

IB’s focus will be:

• Leverage the success of

Industry Specialisation to our institutional customers

• Client servicing • Corporate Portal – helps

customers streamline operations

Page 1

…supported by world class customer value management systems like MARS

Key Inputs Key Outputs Transaction details Customer profitability Product & pricing details Risk profile M anagement A nalysis R eporting S ystem Product profitability “What if” scenarios Relationship expense Risk based pricing Share of overheads

Page 2

Summary

• The pre-eminent domestic

corporate banking franchise

• Our cross sell focus is

embedded in the sales network, driven to growing non-balance sheet product solutions for customers

• Optimising overall customer

value is driving new revenue opportunities

• The business will continue to

build industry specialisation

Goals

• Double digit earnings

growth

• Continue growth and

diversification of customer revenue mix

• Maintain customer

satisfaction ratings

• Performing loans

remain at 99% of total book

Page 3

Global Capital Markets

David Hornery Global Head of Capital Markets

Australia and New Zealand Banking Group Limited 20 July 2001

Leveraging capabilities for high growth segments

• What do we do? • Financial performance • Low risk profile • Realising our growth opportunities • Goals for Global Capital Markets Page 5

Capital Markets means different things to different people

• Derivatives trading and sales, interest rate & equity • Credit: – Underwriting – Trading and sales activities – Short and long dated securities – Government and non-government credit derivatives • Primary Markets activities: – Securitisation – Syndication – Origination Page 6

We are delivering strong performance

$m 85 80 75 70 65 60 55 50

Operating Income

68 Mar-00 71 80 Mar-01 18% Growth 190 185 180 180 175 170 165 Mar-00 Sep-00

FTE

183 Sep-00 176 Mar-01 Page 7 % 56 54 52 50 64 62 60 58 $m 30 25 20 15 10 5 0 16

Profit After Tax

24 18 Mar-00 Sep-00 Mar-01

Cost Income

61.8

59.2

53.8

50% Growth Mar-00 Sep-00 Mar-01

…generated from a broad-based mix of products and clients...

Corporate Sales 1996 Portfolio Debt Securities Primary Markets Group Derivatives Corporate Sales 2001 Portfolio Structured Product Debt Securities Derivatives

Page 8

Primary Markets Group

…while adopting a low risk profile

US$m 6 5 4 3

Daily Value at Risk Trends

Limit US$5.2m

2 Avg use US$1.9m

1 0 Dec 99 Source: Group Market Risk Mar 01

Market Risk Credit Risk

• Risk managed under global

books

• Market Risk (VaR) limits

and usage unchanged

• Risk limits unchanged • The majority is MTM on

Derivatives books

• Residual is typically Investment

Grade Securities Inventory

• Netting and collateral

management are important initiatives

Page 9

We are a leader in Capital Markets

League Tables

• #1 Interest Rate Products in Australia 2001 (Asia Risk) • #2 Bank Australian Equity Derivative Product (Asia Risk) • Runner Up Debt House of the Year (INSTO) • #1 Commercial Paper Australia (Asia Money) • Lead & Arranger Debt Issuer of the Year (INSTO) • Arranger & Lead Mgr Securitisation Deal of the Year (INSTO) • #1 Lead Arranger Australian Syndicated Loans (IFR) • #2 Lead Arranger New Zealand Syndicated Loans (IFR) • Lead Arranger Project Deal of the Year 1999 & 2000 (INSTO) • #1 Issuer Put Warrants, #3 Overall Equity Warrants (ASX

turnover statistics)

Page 10

Our future growth lies with complex, high margin products...

Margin & skill game High IP, complex, higher margin fee-based business Strong & sustainable market positions Volume & cost game Sell Exit e-enable Commoditised, cost & volume driven economics

• Securitisation • Credit & Equity Derivatives • Complex Hybrids • Advice & Structured Solutions • Interest Rate Derivatives • Long-Dated Aust & NZ Credit Product • Syndication, Securities, Origination • Cash, Short-Dated Securities, FRAs • AusMarkets.com

• ANZ Futures • ANZ Mees Pierson • Clearing Services Page 11

…such as securitisation...

• Principal finance/structured • investment vehicles • Corporate bonds/loans • CBO/CLO/CLN • Project finance CLO • Margin loans • Commercial loans • Insurance premium loans • Consumer loans • Future flows • Credit cards • Trade receivables • Auto loans & inventory leases • Big ticket leasing (eg aircraft) • Equipment loans/leases • CMBS/credit lease • Sub-prime mortgages • Residential mortgages Page 12 Track Record • Securitisation Deal of

the Year - Kingfisher 2000-1D (Insto Magazine)

• 1st Non-Credit Lease

CMBS

• 1st & Only Term Trade

Receivables Transaction

• 1st & Only Private Label

Credit Card Transaction

• 1st Consumer Loans

Transaction

• 1st & Only IPF Funding

Loans

• Global 1st & Only

Asset-Backed A-3 CP Program (almost 100% market share in A-2 & A-3)

…and equity derivatives

Growth Cycle Full suite of structured/customised High net worth product Corporate Investment & Stock Option Management Structured Investment Investor Services Trading Business Basic Core Competencies (people, risk, systems, reputation)

Page 13

Summary

• Our areas of strong & sustainable

competitive advantage are the Australian & New Zealand Credit & Derivative product suite

• Our growth will come from: – e-enabling, selling or exiting

those businesses subject to commoditisation and scale economics

– Growing our core businesses at

10%-15% compound, consolidating our top 3 status

– A clear focus on select, high

growth, high IP businesses, in which we have already built a strong pipeline

Page 14

Goals

• 15% +

earnings growth

• Global

leadership in Australian and NZ credit & derivative products

ANZ Corporate is a growth business

• Strongly positioned: – 30%+ of earnings come from outside Australia – The leading corporate bank – top ranked in the eyes of

customers

– Excellent financial performance • Platforms for growth – Each business has strong growth potential – Leading edge intellectual capital to drive fee income • On track to double profit by 2004 Page 15

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

or contact Philip Gentry Head of Investor Relations ph: (613) 9273 4185 fax: (613) 9273 4091 e-mail: [email protected] Page 16

Copy of presentation available on

www.anz.com

Page 17