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For personal use only 2018 FIRST HALF RESULTS RESULTS PRESENTATION & INVESTOR DISCUSSION PACK AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 1 MAY 2018 Financial information within this Results Presentation & Investor Discussion

  1. OTHER DIVESTMENT IMPACTS For personal use only FY18 CHANGE IN CONTRIBUTION FROM DIVESTED BUSINESSES (FY18 vs FY17) FY18 change in $m Asia Retail SRCB MCC UDC contribution Divested business results Previous Updated Previous Updated Previous Updated Previous Updated Previous Updated FY18 vs FY17 Cash Profit impact* ~(245) (238) (58) (58) (39) (39) ~(40) - ~(380) (335) (pre gain / (loss) on sale) Gain / (loss) on sale (post tax) ~255 1 ~262 2 Capital (CET1) benefit (bp) ~65+ ~59 Previous: Indicative change from divestments as illustrated on slide 32 of ANZ FY17 Results Presentation and Investor Discussion Pack Updated: Current earnings expectations of divested business in FY18 less actual earnings in FY17 *Indirect costs previously allocated to Asia Retail have now been reallocated to the ongoing business Further detail on profit & Loss and gain / (loss) on sale impacts are contained in the Investor Discussion Pack (slide 40) 1. Includes Asia Retail $60m, MCC $245m, UDC +$100m and ~-$150m Wealth Australia (One Path P&I costs) 2. Includes gain on sale of Asia Retail businesses (Taiwan, Vietnam & Indonesia), MCC $245m, SRCB -$86m, UDC cost recovery $18m. Excludes Wealth Australia divestments (P&I/ADG and OPL) which have been classified as discontinued operations 18

  2. OTHER DIVESTMENT IMPACTS For personal use only 1H17 & 1H18 CONTRIBUTION FROM DIVESTED BUSINESSES $m Asia Retail SRCB MCC UDC TOTAL Announced Divested business results 1H17 1H18 1H17 1H18 1H17 1H18 1H17 1H18 divestment not Revenue 370 91 58 - 15 - proceeding 443 91 Expenses – Direct* 120 35 120 35 Provisions 71 26 71 26 Cash Profit impact 145 24 58 - 15 - 218 24 (pre gain / (loss) on sale) (28) 1 18 3 ~138 4 Gain / (loss) on sale (post tax) 85 121 (58) 2 - Capital (CET1) benefit (bp) 10 40 ~4-5 ~55 *Indirect costs previously allocated to Asia Retail have now been reallocated to the ongoing business 1. Loss reflecting additional hedging and tax costs associated with the extended completion 2. Impact of equity accounted earnings of $58m (recognised in cash profit in 1H17) which increased the carrying value of the investment 19 3. UDC cost recovery with announced divestment not proceeding 4. Excludes Wealth Australia divestments (P&I/ADG and OPL) which have been classified as discontinued operations

  3. BALANCE SHEET & CAPITAL POSITION CAPITAL & LIQUIDITY For personal use only COMMON EQUITY TIER 1 CAPITAL (CET1) % 0.55 ~11.8 0.72 -0.59 0.08 11.04 -0.29 10.57 $1.1b of $1.5b buyback 10.13 completed to date 15bp above the average of 1H12 to 1H15 (prior to Institutional portfolio rebalancing) Mar-17 Sep-17 Organic capital Divestments Dividends paid Share buyback Other Mar-18 Mar-18 generation (Pro forma) 1 1. Includes expected ~80bp capital benefit from Wealth Australia divestments (P&I/ADG, OPL) and ~5bp capital benefit from the 2nd tranche of MCC subject to regulatory approval, less ~10bp impact from completion of $1.5bn share buyback. 20

  4. BALANCE SHEET REBALANCING For personal use only TOTAL RISK WEIGHTED ASSETS 1 INSTITUTIONAL RISK WEIGHTED ASSETS 1 $b $b 409 192 397 396 169 166 391 388 23 11 21 79 15 20 66 65 60 58 57 56 55 113 103 101 Mar-16 Mar-17 Mar-18 International Aus, NZ & PNG 121 147 161 150 161 AUSTRALIA & NEW ZEALAND DIVISIONS 2 Net Loans & Advances $b 451 430 410 97 95 192 93 179 14 169 15 166 159 15 340 320 302 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Mar-16 Mar-17 Mar-18 Institutional Australia New Zealand Rest of Group Home Loans Other Retail Commercial 1. Institutional RWAs are inclusive of Corporate Banking, transferred from Australia Division to Institutional in October 2017 and backdated for the purposes of chart time series. $2bn of 1H18 increase driven by FX. 2. Commercial was impacted by the Esanda divestment which occurred in FY16 21

  5. RISK ADJUSTED MARGINS & RETURNS For personal use only NII / AVERAGE CREDIT RWA 1 MOVEMENT DIVISIONAL NET INTEREST INCOME / AVG CRWA % % Australia 2 New Zealand Institutional 1 6.14 6.03 6.02 5.11 4.87 0.15 4.57 4.78 4.52 -0.04 -0.06 2.21 2.13 2.07 1H17 2H17 1H18 1H17 2H17 1H18 2H17 Impact of Impact of Portfolio 1H18 1H17 2H17 1H18 Major mortgage management Bank Levy RWA changes and improved returns 1. Excluding Markets 2. New model for Australian residential mortgages effective from June 2017 had a 17bp impact on Australia Division from 2H17 to 1H18 22

  6. NET INTEREST MARGIN For personal use only GROUP NET INTEREST MARGIN (NIM) bp NIM dilutive but ROE accretive 198 1 2 2 197 Divested NLAs $3.3b, Deposits $3.6b -1 2H18 impact on NIM expected to be ~1bp -3 -2 -3 193 -1 -1bp 2H17 Funding & Funding costs Major Deposits Assets Treasury 1H18 ex Markets Asia Retail 1H18 Asset mix Bank Levy Markets Balance Sheet exit activities 1 Balance Sheet activities & Asia Retail 1. Primarily discretionary liquids and trading securities 23

  7. AUSTRALIA DIVISIONAL PERFORMANCE For personal use only FINANCIAL SUMMARY REVENUE DRIVERS $m 1H18 Change Retail Business & Private $m vs 1H17 vs 2H17 68 51 2 4,863 168 4,651 -30 -47 Revenue 4,863 4.6% 1.7% Operating Expenses 1 1,812 8.6% 5.8% 1H17 Volume Margin Other Volume Margin Other 1H18 Income Income Profit Before Provisions 3,051 2.3% (0.7)% Provisions 312 (33.3)% (25.2)% REVENUE CONTRIBUTION Includes Major Bank Levy: 2H17 -$54m; 1H18 -$100m $m Cash Profit 1,915 8.9% 3.1% 4,863 4,602 4,651 1,568 1,545 1,588 Net Loans & Advances ($b) 339.3 4.2% 1.7% 3,295 3,106 3,014 Customer Deposits ($b) 204.2 3.3% 1.4% 1H16 1H17 1H18 Retail Business & Private Bank 1. 1H18 includes $57m of restructuring charges 24

  8. INSTITUTIONAL DIVISIONAL PERFORMANCE 1 For personal use only REVENUE CONTRIBUTION 2 FINANCIAL SUMMARY $m 1H18 Change Major Bank Levy: 3,055 2H17-$32m; 1H18 -$77m $m vs 1H17 vs 2H17 2,836 2,582 Revenue 2,544 (16.7)% (1.2)% 2,575 2,544 1,364 961 Operating Expenses 1,371 (3.6)% (1.5)% 1,074 992 920 Profit Before Provisions 1,173 (28.2)% (0.8)% 837 Provisions 49 (62.0)% 232.4% 797 818 796 789 Cash Profit 793 (25.5)% (7.7)% Net Loans & Advances ($b) 3 137.9 4.4% 4.8% 965 837 871 775 740 Avg RWA 3 161.7 (8.5)% (2.4)% 73 57 54 53 -181 1H16 2H16 1H17 2H17 1H18 Other Loans & SF Transaction Banking (Trade & Cash Mgt) Markets 1. All periods are inclusive of Corporate Banking, transferred from Australia Division to Institutional in October 2017 and backdated for the purposes of chart time series Large/notable items in 2H16 for mCVA derivative methodology change (- $237m) included in ‘Other’ 2. 25 3. On an FX Adjusted basis, HOH NLA growth is 3.2% and avg RWA growth (3.1)%

  9. INSTITUTIONAL MARKETS INCOME For personal use only INCOME CONTRIBUTION MARKETS SALES INCOME $m $m 1,364 483 162 Includes Major Bank Levy: 1,074 2H17-$13m; 1H18 -$37m -15 961 992 356 238 920 -7 451 67 152 11 -10 439 278 295 -12 361 302 363 196 175 542 542 483 451 439 -35 -67 1H17 Client Product Market 2H17 Market 1H18 exits exits conditions conditions 1H16 2H16 1H17 2H17 1H18 Sales Trading Balance Sheet Valuation adjustments 1 1. Excludes Large/Notable item in 2H16 for mCVA derivative methodology change (-$237m) 26

  10. NEW ZEALAND DIVISIONAL PERFORMANCE For personal use only REVENUE CONTRIBUTION REVENUE DRIVERS NZDm Commercial 1H18 Change Retail 16 1,765 1 15 NZDm vs 1H17 vs 2H17 17 13 4 29 1,670 Revenue 1,765 5.7% 3.2% Operating Expenses 642 0.9% 1.1% Volume Margin Other Volume Margin Other Other 1H17 1H18 Profit Before Provisions 1,123 8.6% 4.4% income income Provisions 22 (43.6%) (50.0%) REVENUE CONTRIBUTION 1 NZDm Cash Profit 793 10.6% 6.9% 1,765 1,670 1,648 488 455 456 Net Loans & Advances ($b) 118.5 3.3% 1.1% 1,252 1,206 1,174 Customer Deposits ($b) 84.4 3.9% 3.1% 25 18 9 1H16 1H17 1H18 Commercial Retail Other 1. During the March 2018 half, Business/Agri customers transferred from Retail to Commercial. Prior period numbers have not been restated 27

  11. EXPENSES DRIVERS & PRODUCTIVITY For personal use only EXPENSES FULL TIME EQUIVALENT STAFF (FTE) $m Includes Asia Retail # legacy costs ($275m annualised) 16 4,480 52 46,046 44,896 42,873 4,411 -62 -2,023 -75 -914 39,540 -2,419 Includes FTE reductions, property consolidation & other efficiencies -2% Mar-17 Sep-17 Wealth Sep-17 Ongoing Asia Mar-18 1 2H17 Divestments Restructuring Royal BAU 1H18 discontinued business Retail Continuing Commission Continuing 1. Excludes discontinued operations. Total FTE including discontinued operations as at March 18: 41,580 28

  12. INVESTMENT SPEND For personal use only INVESTMENT SPEND COMPOSITION ($m) BY DIVISION ($m) 482 482 469 469 437 437 35% 31% 368 368 31% 270 273 1% 10% 38% 306 9% 198 18% 21% 2% 22% 16% 102 81 76 46% 49 38% 38% 44% 115 110 94 82 1H15 1H16 1H17 1H18 1H15 1H16 1H17 1H18 Business Initiatives Infrastructure / Other Risk & Compliance TSO & Group Centre Other Divisions Institutional Aus & NZ 29

  13. INVESTMENT SPEND For personal use only INVESTMENT SPEND CAPITALISED SOFTWARE BALANCE EXPENSED / CAPITALISED ($m) $b 3.0 482 469 437 368 2.5 28% Average 58% 66% amortisation period 4.9 years Average amortisation 57% period 3.3 years 2.0 72% 1.5 42% 34% 43% 1.0 1H15 1H16 1H17 1H18 1H15 1H16 1H17 1H18 Capitalised investment spend Expensed investment spend 30

  14. CREDIT IMPAIRMENT CHARGES For personal use only TOTAL PROVISION CHARGE INDIVIDUAL PROVISION CHARGE $m $m -312 1,038 1,047 1,500 892 787 554 1,000 430 918 26 500 720 447 0 -500 357 1H16 2H16 1H17 2H17 1H18 Loss rate 225 14bp 479 New Increased Writebacks & Recoveries 216 203 408 196 186 28 COLLECTIVE PROVISION CHARGE 134 $m 1H16 2H16 1H17 2H17 1H18 Lending Growth 50 (62) (25) (11) 4 384 380 366 349 Change in Risk/ P’folio mix 268 (37) 59 (75) (84) 4 Eco Cycle 0 0 41 34 (24) -9 -22 -67 -75 TOTAL (ex Asia Retail) 13 (3) (59) (61) (16) -29 Asia Retail 13 (6) (8) (14) (6) 1H16 2H16 1H17 2H17 1H18 TOTAL 26 (9) (67) (75) (22) Consumer IP Commercial IP Institutional IP Collective Provision 31

  15. IMPROVING PORTFOLIO RISK PROFILE For personal use only Actions taken to improve risk profile: • Sold Asia Retail & Wealth businesses (IEL 151bp) 1 • Sold Esanda Dealer Finance business (IEL 100bp) 2 • Largely exited Emerging Corporate portfolio in Asia (IEL 41bp) 1 • Restricted growth in commercial property & unsecured personal loans • Focused housing growth to priority segments of Principal & Interest and Owner Occupier loans HIGHER LOSS RATE ASSET CLASSES LOWER LOSS RATE ASSET CLASSES EXPOSURE AT DEFAULT ($b) (<5bp loss rate) EXPOSURE AT DEFAULT ($b) (>20bp loss rate) 566.7 391.5 352.9 504.5 72.1 190.0 61.0 173.5 293.3 275.7 376.8 331.0 26.1 16.2 Sep-15 Mar-18 Sep-15 Mar-18 Banks & Sovereigns Residential Mortgage Other Retail Corporate & Specialised (Advanced) Corporates (Standardised) 1. Internal expected loss as at September 2016 2. Internal expected loss as at September 2015 32

  16. IFRS 9- ESTIMATED IMPACT For personal use only COLLECTIVE PROVISION BALANCE & COVERAGE (ESTIMATED IMPACT) IAS 39 IFRS 9 Based on September 2017 Equivalent ‘estimate’ ($m ) Sep 17 ($m) Estimated ~$235m Collective Provision 2,662 ~2,900 to ~3,200 to $535m increase in Collective CP balance / CRWA 0.79% ~0.86% to ~0.95% Provision balance COMMON EQUITY TIER 1 CAPITAL (ESTIMATED IMPACT ON NON DEFAULTED) IAS 39 Based on September 2017 Sep 17 ($m) Existing deduction from CET1 Existing capital deduction sufficient to cover the APRA Basel 3 expected loss 719* estimated impact from IFRS 9 in excess of eligible provisions * $686m as at Mar 2018 33

  17. For personal use only 2018 FIRST HALF RESULTS STRATEGY & FINANCIAL PERFORMANCE AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

  18. FOUR PRIORITIES For personal use only 1. Creating a simpler, better balanced 2. Focusing on areas where we can win bank 3. Building a superior everyday 4. Driving a purpose and experience to compete in the digital age values led transformation ASSUMPTIONS UNDERLYING THE STRATEGY 1. Constrained sector growth (High household debt, subdued business investment) 2. Changing customer preferences (More digital, more third party advice) 3. Industry transformation (Open data, new technologies) 4. Growing regulation (Capital, liquidity, compliance) 5. Intensifying competition (Incumbents, new technology entrants) 6. Changing community expectations (Greater accountability and regulation) 35

  19. STRATEGIC FOCUS For personal use only 1. Reduce operating costs and risks by removing product and management complexity 1. Creating a simpler, better 2. Exit low return and non-core businesses. balanced bank 3. Reduce reliance on low-return aspects of Institutional banking in particular. 4. Further strengthen the balance sheet by rebalancing our portfolio. 1. Make buying and owning a home or starting, running and growing a small 2. Focusing on areas business in Australia and New Zealand easy. 2. Be the best bank in the world for customers driven by the movement of goods where we can win and capital in our region. 3. Building a superior 1. Build more convenient, engaging banking solutions to simplify the lives of everyday experience to customers and our own people. compete in the digital age 4. Driving a purpose and 1. Create a stronger sense of core purpose, ethics and fairness. 2. Invest in leaders who can help sense and navigate the rapidly changing values led transformation environment. 36

  20. STRATEGIC PROGRESS 1H18 For personal use only Finalised sale of retail and wealth business in Asia along with ANZ’s stake in • Shanghai Rural Commercial Bank (SRCB) and half our stake in Metrobank Card 1. Creating a simpler, better Corporation (MCC). Announced sale of the Australian Pensions & Investments and Aligned Dealer • balanced bank Group businesses and the Australian Life Insurance business. Completed $1.1b of the $1.5b share buy back announced in December 2017. • Grew home lending in Australia by 6% PCP with strategic focus on owner-occupier • (P&I); customer deposits were up 3%. In New Zealand home lending increased 2. Focusing on areas 5% and deposits 4%. where we can win Maintained position as No. 4 Corporate Bank in Asia for sixth consecutive year • and No. 1 Lead Bank penetration in Australia and New Zealand. New ANZ mobile banking app currently most highly rated in Australian Apple • Store. 3. Building a superior Extended mobile payment leadership with the launch of both Garmin Pay and • eftpos on Android Pay. everyday experience to Preparing for Open Banking through strategic investment and partnership with • compete in the digital age Australia’s leading data company, Data Republic. Introduced agile working practices to Australian Division Head Office and • Technology Division to increase speed-to-market for key customer initiatives. Increased low carbon finance commitment from $10 billion to $15 billion by 2020, • with more than $8 billion financed since 2015. Signed the FX Global Code of Conduct, which provides a single set of global 4. Driving a purpose and • principles governing good practice in the global FX market. values led transformation Increased women in leadership to 31.9% (from 31.1% end-FY17); Employer of • the Year for LGBTI Inclusion; top private sector organisation for access and inclusion for people with disability. 37

  21. CORPORATE SUSTAINABILITY For personal use only OUR SUSTAINABILITY AGENDA PROGESS ON FY18 SUSTAINABILITY TARGETS As part of our strategic priority to drive a purpose and Funded and facilitated $8.3 billion in low carbon and values-led transformation of the bank, we are prioritising sustainable solutions, including green buildings, low our efforts on issues relating to environmental emissions transport, green bonds, renewable energy, sustainability , financial wellbeing and housing . efficient irrigation and low emissions gas power generation, since 2015 Our Corporate Sustainability Framework supports our business strategy and is aligned with the bank’s purpose. The public sustainability targets we set each year address our strategic priorities and respond to our most Over 2,000 people recruited to our Saver Plus material environmental, social and governance issues. matched savings program. Since 2004 more than 36,000 people have participated in this program. Group-wide representation of Women in Leadership has increased to 31.9% (up from 31.1% as at end of 2017) 1 Australia Retail Net Promoter Score (NPS) ranking 2 increased to 3rd (from 4th at end of 2017) Our 2018 Half Year Corporate Sustainability Update, available at www.anz.com/cs contains detailed progress against our targets, as well as case studies on our priority areas. Unless otherwise stated, the information provided covers the period 1 October 2017 – 31 March 2018 and has not been assured 1. Employee headcount is used for the basis of this disclosure. Includes all employees regardless of leave status excluding contractors (which are included in FTE) 38 Roy Morgan Single Source. Base: Australian population aged 14+, Main Financial Institution, six month rolling average to Mar’ 18. Ranking based on the four major Australian banks 2.

  22. ANZ ANNOUNCED DIVESTMENTS GAIN/LOSS ON SALE SUMMARY For personal use only 1H17 ($m) 2H17 ($m) 1H18 ($m) 2H18 ($m) TOTAL GAIN Asset Actual Actual Actual Expected / LOSS Sale of Asia Retail & Wealth businesses (Cash Profit continuing) • Reclassification of Asia Retail & Wealth to held for sale (284) • Net gain / loss on sale 1 14 85 (185) SRCB (net impact through Cash Profit continuing) Adjustments to statutory profit (full offsets) • Reclassification of SRCB to Held For Sale 2 (316) (17) • Release of reserves partly offset by net foreign exchange and tax costs 2 333 Net impact through cash profit • Equity accounted earnings 1Q17 58 • Offset to equity accounted earnings 1Q17 (via increase in carrying value) (58) • Additional hedging and tax costs (due to extended completion) (28) (28) MCC (Cash Profit continuing) • Gain on sale (first tranche) 121 • Gain on sale (second tranche, subject to exercise of put option) ~124 ~245 UDC (Cash Profit continuing) Cost recovery 18 18 P&I and ADG, OPL (Cash Profit Discontinued) Gain / Loss on sale 3 (632) (632) 1. China, Singapore, Hong Kong completed in 2H17; Taiwan, Indonesia, Vietnam completed in 1H18. 2. FY17 impacts comprise the write-down on reclassification as Held For Sale and additional tax and hedging costs consequent to the delay in completion. In the March 2018 half, the Group recognised the release of foreign currency and available for sale reserves on completion, partly offset by further hedging and tax costs 39 3. Total loss on sale expected to be ~$600m at completion

  23. OTHER DIVESTMENT IMPACTS For personal use only FY18 CHANGE IN CONTRIBUTION FROM DIVESTED BUSINESSES (FY18 vs FY17) FY18 change in $m Asia Retail SRCB MCC UDC contribution Divested business results Previous Updated Previous Updated Previous Updated Previous Updated Previous Updated FY18 vs FY17 Revenue (575) (58) (39) - (672) ~(570) (58) (39) ~(80) ~(750) Expenses – Direct* (182) - (182) ~(185) ~(25) ~(210) Provisions (98) - (98) ~(85) ~(5) ~(90) Cash Profit impact (238) (58) (39) - (335) ~(245) (58) (39) ~(40) ~(380) (pre gain / (loss) on sale) *Indirect costs previously allocated to Asia Retail have now been reallocated to the ongoing business (28) 1 18 3 ~262 5 Gain / (loss) on sale (post tax) 85 ~245 ~255 4 ~60 Nominal ~245 ~100 (58) 2 Capital (CET1) benefit (bp) 10 40 ~9 ~59 ~6+ ~40 ~9 ~10 - ~65+ Previous: Indicative change from divestments as illustrated on slide 32 of ANZ FY17 Results Presentation and Investor Discussion Pack. Updated: Current earnings expectations of divested businesses in FY18 less actual earnings in FY17. 1. Loss reflecting additional hedging and tax costs associated with the extended completion 2. Impact of equity accounted earnings of $58m (recognised in cash profit in 1H17) which increased the carrying value of the investment 3. UDC cost recovery with divestment not proceeding 4. Includes ~-$150m Wealth Australia (One Path P&I costs) 5. Excludes Wealth Australia divestments (P&I and OPL) which have been classified as discontinued operations 40

  24. DISCONTINUED & LARGE/NOTABLE ITEMS For personal use only FIRST HALF 2018 ($m) DIVESTMENT IMPACT GAIN/LOSS ON SALE 617 3,493 86 0 0 0 3,331 -121 -85 -18 -24 2,876 1H18 Cash Discontinued 1H18 MCC SRCB Asia Retail UDC MCC SRCB Asia Retail Other 1 1H18 ex Profit Continuing L/N items SECOND HALF 2017 ($m) 3,527 3,454 0 0 0 0 3,252 -73 -14 -24 -117 -47 2H17 Cash Discontinued 2H17 MCC SRCB Asia Retail UDC MCC SRCB Asia Retail Other 1 2H17 ex Profit Continuing L/N items FIRST HALF 2017 ($m) 284 0 3,411 3,355 0 0 -15 3,196 -58 -145 -56 -225 1H17 Cash Discontinued 1H17 MCC SRCB Asia Retail UDC MCC SRCB Asia Retail Other 1 1H17 ex Profit Continuing L/N items L/N: Large/Notable items 1. Other includes Derivative Valuation Adjustments & Gain on sale of 100 Queen St, Melbourne in 1H17. 41

  25. FINANCIAL PERFORMANCE CASH PROFIT (CONTINUING OPERATIONS) For personal use only 1H18 Change Change • $m (ex divested assets) 1 $m vs 1H17 vs 2H17 vs 1H17 vs 2H17 Cash Profit (continuing) 3,493 4.1% 1.1% (2.6)% 1.0% Operating Income 9,808 (1.7)% (0.3)% (3.8)% (0.3)% Operating Expenses 4,411 (1.7)% (1.5)% 0.2% (0.2)% Profit Before Provisions (1.7)% 0.7% (7.0)% (0.4)% 5,397 Provisions (43.3)% (14.8)% (41.1)% (10.3)% 408 Earnings per share (cents) 4.0% 1.3% 119.4 Return on Equity +32bp +14bp 11.9% CASH PROFIT BY DIVISION (1H18 vs 2H17) 34 $m 58 6 3,493 7 3,454 -66 +1.1% 2H17 Cash Profit Divested assets Australia New Zealand Institutional Other 1H18 Cash Profit (Continuing) (Continuing) 1. Divested assets include Asia Retail, SRCB & MCC gains/losses on sale and divested business results and UDC cost recovery 42

  26. CASH PROFIT DRIVERS CASH PROFIT (CONTINUING OPERATIONS) For personal use only CASH PROFIT - HALF ON HALF PERFORMANCE (1H18 vs 2H17) $m 34 8 3,493 44 7 3,454 7 -61 +1.1% 2H17 Cash Profit Divested business Net interest income Other income Expenses Provisions Taxation & 1H18 Cash Profit (Continuing) Minority interest (Continuing) CASH PROFIT – PRIOR COMPARATIVE PERIOD PERFORMANCE (1H18 vs 1H17) $m 127 228 30 3,493 267 3,355 -505 -9 +4.1% 1H17 Cash Profit Divested business Net interest income Other income Expenses Provisions Taxation & 1H18 Cash Profit (Continuing) Minority interest (Continuing) 43

  27. INCOME CONTRIBUTION For personal use only GROUP TOTAL AUSTRALIA DIVISION NZ DIVISION (AUD) $m $m $m 9,976 4,863 1,616 4,784 1,595 9,840 9,808 4,651 1,577 173 559 615 127 88 602 336 338 317 550 551 886 4,169 4,304 4,049 1,260 1,259 1,278 1,707 1,819 1,498 1H17 2H17 1H18 1H17 2H17 1H18 Net interest income Other op. income Net interest income Other op. income OTHER 2 INSTITUTIONAL 7,419 7,456 7,350 $m $m 886 3,055 785 2,575 2,544 693 435 1,368 998 1,028 270 533 1,687 1,577 451 1,516 423 252 1H17 2H17 1H18 1H17 2H17 1H18 1H17 2H17 1H18 Net interest income Other op. income Net interest income Other op. income Net interest income Markets other op. income Other op. income 1 Share of Assoc Profit 1. Excluding Markets other operating income and Share of Associates Profit. 2. Other includes Wealth Australia (continuing), Asia Retail & Pacific and TSO & Group Centre 44

  28. RISK ADJUSTED MARGINS & RETURNS For personal use only GROUP NET INTEREST INCOME (NII) / AVG CRWA 1 DIVISIONAL NII / AVG CRWA 1 Aus. ~185bp % change due RWA changes 2 7.71 7.12 4.59% 6.14 4.54% 4.57% 4.52% 6.02 6.03 4.39% 5.11 4.79 4.72 4.78 4.87 2.21 2.13 1.94 2.04 2.07 1H16 2H16 1H17 2H17 1H18 1H16 2H16 1H17 2H17 1H18 Aus. NZ Institutional (ex-Markets) NII / AVERAGE CREDIT RWA 1 MOVEMENT PROFIT BEFORE PROVISIONS / AVERAGE RWA % Aus. ~100bp % change due 0.15 4.57 RWA changes 2 4.52 4.94 4.55 -0.04 4.01 3.96 3.79 -0.06 3.68 3.33 3.33 3.47 3.20 1.85 1.46 1.42 1.24 1.15 2H17 Impact of Impact of Portfolio 1H18 1H16 2H16 1H17 2H17 1H18 bank levy mortgage management RWA changes and improved Aus. NZ Institutional returns 1. Excluding Markets Business Unit. 2. Australia Division includes impacts from regulatory changes to Australian housing risk weights introduced 1 July 2016 and further increases to Australian housing risk weights following APRA having completed its review of ANZ’s mortgage capital model and approved the new model for Australian residential mortga ges effective from June 2017 45 3. The new model for Australian residential mortgages effective from June 2017 and a 17bp impact on Australia Division from 2H17 to 1H18

  29. NET INTEREST MARGIN For personal use only GROUP TOTAL AUSTRALIA INSTITUTIONAL NEW ZEALAND (ex Markets) -3bp HoH impact from Major Bank Levy -4bp HoH impact from Major Bank -2.4bp HoH 2.78% Levy impact from 2.73% 2.73% Major Bank Levy 2.37% 2.30% 2.31% 2.23% 2.17% 2.14% 2.00% 1.98% 1.93% 1H17 2H17 1H18 1H17 2H17 1H18 1H17 2H17 1H18 1H17 2H17 1H18 46

  30. IMPACTS OF RATE MOVEMENTS For personal use only BILLS / OIS SPREAD 90 DAY MOVING AVERAGE bp 100 80 60 40 20 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Bill / OIS 90 Day Moving Average LOWER RETURNS ON CAPITAL AND LOW RATE DEPOSITS % 8 7 6 5 4 3 2 1 0 Mar- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Mar- 05 05 06 07 08 09 10 11 12 13 14 15 16 17 18 OCR 3 Year Swap (spot) Replicating Yield 47

  31. EXPENSES DRIVERS & PRODUCTIVITY For personal use only EXPENSES ASIA RETAIL LEGACY COST REDUCTION PROFILE $m $m 16 350 4,480 On track to meet 52 FY18 reduction 275 -75 4,411 -85 ~140 -62 -75 ~-50 Sep-16 FY17 Sep-17 FY18 FY19 Residual indirect costs (Post FY19) FULL TIME EQUIVALENT STAFF (FTE) # 46,046 44,896 42,873 39,540 -2,023 -914 -2,419 -2% -8% 2H17 Divestments Restructuring Royal BAU 1H18 Mar-18 1 Mar-17 Sep-17 Discontinued Sep-17 Ongoing Asia Retail Continuing Commission Continuing 1. Excludes discontinued operations. Total FTE including discontinued operations as at March 18: 41,580 48

  32. EXPENSES For personal use only EXPENSES BY CATEGORY EXPENSES BY DIVISION FTE BY DIVISION Continuing Operations Continuing Operations Full time equivalent staff # $m $m 4,487 4,487 4,480 50,152 4,480 4,411 4,411 Continuing operations basis 1 48,896 126 136 2,821 123 46,554 2,622 334 280 146 701 44,015 816 721 2,562 5,555 42,873 371 5,318 366 899 336 912 36 4,794 39,540 26 78 4,637 3,664 588 895 600 593 1,199 799 803 815 12,757 12,725 11,987 11,214 11,257 10,921 432 430 395 1,371 1,392 1,422 6,718 6,570 6,472 6,417 6,372 6,319 8,093 7,518 6,950 7,052 6,783 6,505 2,519 2,405 2,402 1,812 1,713 1,669 14,208 14,143 13,898 13,885 13,687 13,701 1H17 2H17 1H18 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 1H17 2H17 1H18 Other Technology Personnel Wealth Aus (Continuing) TSO & Group Centre Institutional Restructuring Premises Asia Retail & Pacific New Zealand Australia 1. Excludes FTE in discontinued operations (1H17 2,031; 2H17 2,023; 1H18 2,040) 49

  33. BALANCE SHEET For personal use only NET LOANS AND ADVANCES (BY DIVISION) $b $b 592 580 576 4 6 13 596 111 600 584 108 580 580 105 574 566 562 138 132 132 550 500 334 339 468 473 326 468 450 447 445 450 436 1H17 2H17 1H18 400 Australia Institutional NZ Other 350 300 CUSTOMER DEPOSITS (BY DIVISION) 250 $b 468 468 473 200 3 15 79 75 74 150 191 189 181 100 50 204 198 201 0 -1 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 1H17 2H17 1H18 Gross Loans & Advances Customer Deposits Funding gap Australia Institutional NZ Other 50

  34. BALANCE SHEET For personal use only Change $m Mar 17 Sep 17 Mar 18 Mar 18 vs Sep 17 Mar 18 vs Mar 17 TOTAL GROUP (Continuing Operations) Net Loans and Advances 576,304 580,293 591,948 2% 3% Customer Deposits 468,215 467,630 472,764 1% 1% Risk Weighted Assets 397,040 391,113 395,777 1% 0% CONSISTING OF Asia Retail & Wealth Divestment Net Loans and Advances 10,091 3,309 15 (100)% (100)% Customer Deposits 16,614 3,612 12 (100)% (100)% Risk Weighted Assets 8,743 2,921 221 (97)% (92)% Total Group (Continuing Operations) excluding Asia Retail & Wealth Net Loans and Advances 566,213 576,984 591,933 3% 5% Customer Deposits 451,601 464,018 472,752 2% 5% Risk Weighted Assets 388,297 388,192 395,556 2% 2% 51

  35. COST TO INCOME & RETURN ON ASSETS For personal use only RETURN ON ASSETS GROUP AUSTRALIA INSTITUTIONAL NEW ZEALAND % % % % 1.12 1.13 1.31 1.09 1.23 1.20 0.79 0.52 0.77 0.78 0.42 0.38 1H17 2H17 1H18 1H17 2H17 1H18 1H17 2H17 1H18 1H17 2H17 1H18 COST TO INCOME GROUP AUSTRALIA NEW ZEALAND INSTITUTIONAL % % % % 45.0 45.5 45.0 54.1 53.9 46.6 37.3 38.1 35.9 35.8 37.1 36.4 1H17 2H17 1H18 1H17 2H17 1H18 1H17 2H17 1H18 1H17 2H17 1H18 52

  36. For personal use only 2018 FIRST HALF RESULTS GROUP TREASURY AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

  37. REGULATORY CAPITAL For personal use only CAPITAL UPDATE APRA COMMON EQUITY TIER 1 (CET1) Capital Position %  APRA CET1 ratio of 11.0% is in excess of APRA’s ‘unquestionably strong’ benchmark 1 and well ahead of 2020 implementation. Net Organic Capital Generation +72bps Internationally Comparable 2 CET1 ratio of 16.3% – above the  Basel top quartile 3 CET1 of 14.7%. 0.86 0.55 0.08 11.04  APRA Leverage ratio of 5.4% or 6.1% on an Internationally 10.57 -0.12 -0.02 10.13 -0.29 Comparable basis. -0.59  Completed $1.1bn of the $1.5bn on-market share buy back. Completion of this tranche is expected during 2H18. Organic Capital Generation & Dividend  Interim dividend of 80 cents fully franked. Mar-17 Sep-17 Cash RWA Capital Dividends Asset Share Other Mar-18  Net organic capital generation of +72bps in 1H18 compares NPAT 4 Business Deductions 5 Divestments Buy Back Usage favourably to historical averages (+57bps ex Insto rebalancing). Capital Outlook BASEL III CET1  For the third consecutive half, ANZ intends to neutralise the 2018 Interim DRP by acquiring these shares on market. %  Adoption of IFRS 9 is not expected to have a material impact on 16.3 Capital. 15.8 15.2  Completion of announced buyback and asset sales (including sale 11.0 10.6 10.1 and reinsurance of OPL, P&I and MCC businesses) will add ~75bps to CET1.  ANZ will continue to manage its capital prudently. Further capital management initiatives will only be undertaken while ensuring sufficient capital is available to support growth as well as being Mar-17 Sep-17 Mar-18 subject to business conditions and regulatory approval after the actual receipt of the relevant sale proceeds. APRA Internationally Comparable 2 1.Based on APRA information paper “Strengthening banking system resilience - establishing unquestionably strong capital ratios” released in July 2017 2 . Internationally Comparable methodology aligns with APRA’s information paper entitled International Capital Comparison Study (13 July 2015). Basel III Internationally Comparable ratios do not include an estimate of the Basel I capital floor. 3. Based on Group 1 banks as identified by the BIS (internationally active banks with Tier 1 capital of more than €3 billion). The top quartile of this group was 14.7% as a t J une 2017. 4. Cash Earnings excludes ‘Large/notable’ items. 5. Represents the movement in retained 54 earnings in deconsolidated entities, capitalised software, EL v EP shortfall and other intangibles.

  38. REGULATORY CAPITAL GENERATION For personal use only First half Organic Capital Generation COMMON EQUITY TIER 1 average 1H18  Net organic capital generation of +72bps is +15bps stronger GENERATION (bp) 1H12 – 1H17 relative to the average of 1H12 to 1H15 (prior to Institutional Cash Profit 1 97 86 portfolio rebalancing). RWA movement (13) (12) Capital Deductions 2 (13) (2) Non-Core and Non-recurring items Net capital generation 71 72  Non-core and non-recurring items in 1H18 includes benefits from Gross dividend (68) (60) settlement of asset disposals (SRCB, Asia Retail assets and 20% Dividend Reinvestment Plan 10 1 stake in MCC) partly offset by completed $1.1bn of share buy back. Core change in CET1 capital ratio 13 13 Other non-core and non-recurring 9 34 items Net change in CET1 capital ratio 22 47 HISTORICAL NET ORGANIC CAPITAL GENERATION Avg +98bps bp Institutional 119 portfolio rebalancing 3 Avg +57bps 76 72 59 59 58 52 1H12 1H13 1H14 1H15 1H16 1H17 1H18 1. Cash profit for 1H18 excludes ‘large/notable items’ (which are included as “as capital deductions” and “other non -core and non- recurring items”). 2. Represents movement in retained earnings in deconsolidated entities, capitalised software, EL v EP shortfall and other intangibles. 55 3. Institutional RWA reduction (excluding FX impacts) of ~$9bn (+21bps) and ~$10bn (+27bps) in 1H16 and 1H17 respectively.

  39. INTERNATIONALLY COMPARABLE 1 REGULATORY CAPITAL POSITION For personal use only APRA Common Equity Tier 1 (CET1) – 31 March 2018 11.0% Corporate undrawn EAD and Australian ADI unsecured corporate lending LGDs and undrawn CCFs exceed those applied in many 1.5% unsecured LGD adjustments jurisdictions. APRA requires 100% deduction from CET1 vs. Basel framework which allows concessional threshold prior Equity Investments & DTA 1.1% to deduction. APRA requires use of 20% mortgage LGD floor vs. 10% under Basel framework. Additionally, APRA also Mortgages 1.3% requires a higher correlation factor vs 15% under Basel framework. APRA requires supervisory slotting approach which results in more conservative risk weights than under Specialised Lending 0.7% Basel framework. IRRBB RWA APRA includes in Pillar 1 RWA. This is not required under the Basel framework. 0.3% Includes impact of deductions from CET1 for capitalised expenses and deferred fee income required by Other 0.4% APRA, currency conversion threshold and other retail standardised exposures. Basel III Internationally Comparable CET1 16.3% Basel III Internationally Comparable Tier 1 Ratio 18.7% Basel III Internationally Comparable Total Capital Ratio 21.3% 1. Internationally Comparable methodology aligns with APRA’s information paper entitled International Capital Comparison Study (13 July 2015). B asel III Internationally Comparable ratios do not include an estimate of the Basel I capital floor. 56

  40. CET1 AND LEVERAGE IN A GLOBAL CONTEXT For personal use only LEVERAGE RATIOS 1,2 CET1 RATIOS 1 5% 10% 15% 20% 25% 30% 3% 4% 5% 6% 7% 8% Swedbank DBS Svenska Handelsbanken Intesa Sanpaolo Nordea UOB SEB OCBC Danske Bank BBVA ABN Amro Morgan Stanley RBS ANZ Standard Chartered RBS Erste Bank Rabobank APRA Top ANZ Groupe BPCE quartile of Raiffeisen Bank International (RBI) Intesa Sanpaolo 15.0% 3 Credit Agricole Group Swedbank ING Group Rabobank HSBC HSBC Basel Top Commerzbank quartile UniCredit Deutsche Bank 14.7% 4 SEB DBS Nordea UBS UniCredit Credit Agricole Group Standard Chartered Credit Suisse Erste Bank Commerzbank Barclays CET1 Leverage Barclays OCBC ANZ compares equally well on ANZ ranks in the top quartile Santander Credit Suisse leverage, however international of the largest internationally Raiffeisen Bank International Svenska Handelsbanken active banks 4 and equally is comparisons are more difficult Wells Fargo Group BPCE to make given the favourable ranked in the top quartile of BNP Paribas BNP Paribas internationally active G-SIBs treatment of derivatives under Citibank Danske Bank US GAAP JP Morgan and D-SIBs ING Group UOB Scotia State Street Societe Generale UBS Bank of America Societe Generale Scotia BMO Santander RBC BMO ABN Amro BBVA RBC TD Goldman Sachs Deutsche Bank Top Quartile Banks (CET1) 4 TD 1. CET1 and leverage ratios are based on ANZ estimated adjustment for accrued expected future dividends where applicable. ANZ ratios are on an Internationally Comparable basis. All data sourced from company reports and ANZ estimates based on last reported half/full year results assuming Basel III capital reforms fully implemented. 2. Includes adjustments for transitional AT1 where applicable. Exclude US banks as leverage ratio exposures are based on US GAAP accounting and therefore incomparable with other jurisdictions which are based on IFRS. 3. Based on APRA information paper “Strengthening banking system resilience - establishing unquestionably strong capital ratios” release in July 2017. 4. Based on Group 1 banks a s identified by the BIS (internationally active banks with Tier 1 capital of more 57 than €3 billion). The top quartile of this group was 14.7% as at June 2017.

  41. BALANCE SHEET STRUCTURE For personal use only FUNDED BALANCE SHEET SOURCES AND USES OF FUNDS Sep 17 to Mar 18 $814b $814b $b Term Funding<12mth, 2% Short Term Assets 1 7% SOURCES USES Short Term Program Debt 8% 9.5 Short Term Funding Liquids 23% (inc. FI / Bank Deposits and 3.2 Repo Funding), 19% 3.4 0.0 -11.4 Fixed Assets 2% -1.7 4.7 Corporate, PSE Corporate loans 2 Operational Deposits 2 17% 20% 5.8 Retail & SME Deposits 31% 2 -13.5 Retail/SME Loans 2 Net other 3 Total Loan 4 51% Retail/Corp/ Long Term Short FI/Bank Discretionary Non SHE & Operational Debt Term Debt Deposits Liquids Discretionary Hybrids Term funding>12mth Deposits & Repo Liquids 12% Funding SHE & Hybrids 8% Sources of funds Uses of funds Assets Funding 1. Includes FI lending, non-liquid asset trading securities, trade dated assets and other short-dated assets. 2. Based on NSFR Required Stable Funding (RSF) and Available Stable Funding (ASF) categories per APS 210. 3. Includes interest accruals, provisions and net tax liabilities, payables and other liabilities. 58 4. Excludes interbank, repo loans and bills of acceptances.

  42. FUNDING & LIQUIDITY METRICS For personal use only NSFR MOVEMENT NSFR COMPOSITION Sep 17 v Mar 18 Mar 2018 $492b % Wholesale $428b Funding Liquids 0.2% 114.9% 0.8% & Other 1 0.4% and 1.0% Non Financial Other Assets 2 Corporates 113.9% Other -0.2% Loans 3 -1.3% 0.0% Retail/SME Residential Mortgages 4 <35% Capital Sep-17 Retail/Corp/ Loans Capital Long Term Liquids FI Deposits Other 5 Mar-18 Available Required Operational Debt & Repo Stable Funding Stable Funding Deposits Funding Other ALA 1 $15b LCR COMPOSITION (AVERAGE) MOVEMENT IN AVERAGE LCR SURPLUS (A$b) 1H18 2H17 v 1H18 1H18 $188b LCR 134% 2H17 7 0 Other ALA 6 $15b $140b LCR 135% Internal RMBS 2 Wholesale funding 2 48 Other ALA 6 47 HQLA2 -5 -4 Customer deposits & other 7 HQLA1 CLF 8 Net Cash Outflow 2H17 Liquid Assets Retail/SME Corp/FI/Sov Wholesale Other 1H18 Liquid Assets Funding LCR Surplus LCR Surplus All figures shown on a Level 2 basis. 1. ‘Other’ includes Sovereign, and non - operational FI Deposits. 2. ‘Other Assets’ include Off Balance Sheet, Derivatives, Fixed Assets and Other Assets. 3. All lending >35% Risk weight. 4. Includes NSFR impact of self-securitised assets backing the Committed Liquidity Facility (CLF). 5. Net of other ASF and other RSF. 6. Comprised of assets qualifying as collateral for the Committed Liquidity Facility (CLF), excluding internal RMBS, up to approved facility limit; and any assets contained in the RBNZ’s liquidity Policy – Annex: Liquidity Assets – Prudent ial Supervision Department Document BS13A 7. ‘Other’ includes off -balance sheet and cash inflows. 59 8. RBA CLF increased by $3.1b from 1 January 2018 to $46.9b (2017: $43.8b, 2016: $50.3b).

  43. TERM WHOLESALE FUNDING PORTFOLIO 1 For personal use only ISSUANCE MATURITIES 32 $b 24 24 23 22 22 22 19 17 13 13 8 8 FY13 FY14 FY15 FY16 FY17 1H18 2H18 FY19 FY20 FY21 FY22 FY23 FY24+ Senior Unsecured Covered Bonds Tier 2 RMBS PORTFOLIO BY TYPE PORTFOLIO BY CURRENCY 6% 8% 1% 32% 15% 22% Senior Unsecured Domestic (AUD, NZD) Covered Bonds North America (USD, CAD) UK & Europe (£, €, CHF) Tier 2 RMBS Asia (JPY, HKD, SGD, CNY) 76% 40% 1. All figures based on historical FX and exclude AT1. Includes transactions with an original call or maturity date greater than 12 months as at the initial reporting date. Tier 2 maturity profile is based on the next callable date. 60

  44. For personal use only 2018 FIRST HALF RESULTS RISK MANAGEMENT AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

  45. RISK MANAGEMENT TOTAL & COLLECTIVE PROVISION (CP) CHARGE For personal use only TOTAL PROVISION CHARGE CP BALANCE BY DIVISION % $m $m 1,500 3,000 2,662 2,579 0.6 1,038 918 Mar18 vs Sep17 $m 1,000 720 695 0.4 2,000 Divisional mvt -102 479 510 408 500 FX impact +19 0.2 1,000 0 0.0 -500 -0.2 0 1H15 2H15 1H16 2H16 1H17 2H17 1H18 Sep 17 Mar 18 CIC as % Avg.GLA (RHS) CP Charge IP Charge AUS Insto. NZ Asia Retail & Pacific TSO Group Centre TOTAL PROVISION CHARGE COMPOSITION CRWA & CP AS % OF CRWA $m $b 1H15 2H15 1H16 2H16 1H17 2H17 1H18 350 352 CIC 340 342 343 510 695 918 1,038 720 479 408 334 337 CP Composition 0.86% 0.85% 0.86% 0.82% 0.81% 0.79% 0.75% Lending Growth 54 50 56 -59 -30 -18 0 Change in Risk/Portfolio 8 62 -30 50 -78 -91 2 Mar 15 Sep 15 Mar 16 Sep 16 Mar 17 Sep 17 Mar 18 Mix Eco Cycle 1 -7 -72 0 0 41 34 -24 Credit Risk Weighted Assets CP Bal. as % of CRWA IP: Individual Provision charge CP: Collective Provision charge CIC: Total Credit Impairment charge 1. 1H18 Eco Cycle release includes a $12m release of Retail Trade overlay and a $12m of New Zealand Agri overlay. 62

  46. RISK MANAGEMENT INDIVIDUAL PROVISION (IP) CHARGE For personal use only ANZ HISTORICAL LOSS RATES EXPECTED LOSS bp Median IP Loss 300 % Mar 16 Sep 16 Mar 17 Sep 17 Mar 18 Rate = 32 bps Australia Div. 0.35 0.33 0.33 0.33 0.31 200 New Zealand Div. 0.25 0.26 0.26 0.22 0.21 100 Institutional Div. 0.37 0.36 0.35 0.30 0.32 0 Other 1.47 1.79 1.60 1.69 1.95 Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Mar Subtotal 0.34 0.33 0.33 0.30 0.30 90 93 96 99 02 05 08 11 14 17 18 Asia Retail 1 1.50 1.51 1.51 2.75 0 IP Loss Rate Median IP Loss Rate (ex- current period) Total 0.37 0.35 0.35 0.32 0.30 IP CHARGE BY SEGMENT IP CHARGE COMPOSITION $m $m 1,500 1,500 1,047 892 787 1,047 655 554 892 1,000 1,000 455 787 430 655 554 455 430 500 500 0 0 -500 -500 1H15 2H15 1H16 2H16 1H17 2H17 1H18 1H15 2H15 1H16 2H16 1H17 2H17 1H18 Consumer Commercial Institutional New Increased Writebacks & Recoveries 1. Asia Retail portfolio size by Net loans & Advances: Mar 17=$10.1b , Sep 17=$3.3b, Mar 18=$15m . Excludes Pacific. 63

  47. RISK MANAGEMENT IMPAIRED ASSETS For personal use only CONTROL LIST GROSS IMPAIRED ASSETS BY DIVISION Index Sep 09 = 100 $m 150 4,000 3,173 2,940 2,883 2,708 2,719 3,000 2,384 100 2,034 2,000 50 1,000 0 0 Sep Sep Sep Sep Sep Sep Sep Sep Sep Mar- Mar 15 Sep 15 Mar 16 Sep 16 Mar 17 Sep 17 Mar 18 09 10 11 12 13 14 15 16 17 18 Control List by Limits Control List by No. of Groups Australia New Zealand Institutional Other 1 NEW IMPAIRED ASSETS BY DIVISION GROSS IMPAIRED ASSETS BY EXPOSURE SIZE $m $m 1,844 4,000 2,000 1,787 1,783 1,784 3,173 2,883 2,940 1,425 2,708 2,719 1,500 3,000 1,197 2,384 2,034 963 2,000 1,000 500 1,000 0 0 1H15 2H15 1H16 2H16 1H17 2H17 1H18 Mar 15 Sep 15 Mar 16 Sep 16 Mar 17 Sep 17 Mar 18 Other 1 Australia New Zealand Institutional < 10m 10m to 100m > 100m 1. Other includes Retail Asia & Pacific and Australian Wealth. 64

  48. RISK MANAGEMENT RISK WEIGHTED ASSETS For personal use only TOTAL RISK WEIGHTED ASSETS TOTAL RWA MOVEMENT $b $b 0.1 6.0 409 1.2 395.8 402 397 396 391 388 391.1 39 -2.6 38 39 37 37 38 18 14 17 16 17 16 Sep 17 Credit RWA Op RWA IRRBB RWA Mkt. RWA Mar 18 CRWA MOVEMENT 352 350 342 343 337 334 $b 3.5 342.8 3.1 -0.1 336.8 -0.5 Refer following slide for further detail Sep’17 Mar’18 FX Impact Lending Data/Meth. Risk Sep 15 Mar 16 Sep 16 Mar 17 Sep 17 Mar 18 Mvmt. Review CRWA Mkt. & IRRBB RWA Op-RWA 65

  49. RISK MANAGEMENT RISK WEIGHTED ASSETS For personal use only GROUP EAD 1 & CRWAs GROUP EAD 1 MOVEMENT $b MAR 18 v SEP 17 ($b) 930 903 903 894 899 889 21.0 930.2 10.1 903.1 -4.0 Sep 17 FX Impact Lending Mvmt. Data/Meth. Mar 18 Review GROUP EAD 1 & CRWA GROWTH 2 MOVEMENT 39.4% MAR 18 v SEP 17 ($b) 38.7% 38.0% 37.6% 37.3% 36.9% 18.1 6.0 6.0 1.8 1.6 -0.5 -0.5 -0.2 -3.4 -4.4 AUS HL AUS Non HL NZ Other Institutional Sep 15 Mar 16 Sep 16 Mar 17 Sep 17 Mar 18 CRWA/EAD % EAD EAD Gth. CRWA Gth. 1. Post CRM EAD, net of credit risk mitigation such as guarantees, credit derivatives, netting and financial collateral. Excludes amounts for ‘Securitisation’ and ‘Other Assets’ Basel asset classes. 2. Refers to lending movement, excluding FX Impact, Data/Meth Review and Risk. 66

  50. IMPROVING PORTFOLIO RISK PROFILE For personal use only INTERNAL EXPECTED LOSS (IEL) (as a % of Gross Lending Assets) Actions taken to improve risk profile: GROUP TOTAL (%) INSTITUTIONAL (%) 0.37 0.37 • Sold Asia Retail & Wealth businesses (IEL 151bp) 1 0.35 0.35 0.32 0.30 • Sold Esanda Dealer Finance business (IEL 100bp) 2 • Largely exited Emerging Corporate portfolio in Asia (IEL 41bp) 1 Mar-16 Mar-17 Mar-18 Mar-16 Mar-17 Mar-18 • Restricted growth in commercial property & unsecured personal loans • AUSTRALIA (%) NEW ZEALAND (%) Increased Institutional investment grade exposures to 84% of portfolio (from 81% 1H17) 0.35 0.33 0.31 • Focused housing growth to priority segments of 0.26 0.25 Principal & Interest and Owner Occupier loans 0.21 Mar-16 Mar-17 Mar-18 Mar-16 Mar-17 Mar-18 1. Internal expected loss as at September 2016 2. Internal expected loss as at September 2015 67

  51. RISK MANAGEMENT PORTFOLIO COMPOSITION For personal use only Portfolio % of Portfolio in Category % of Group EAD Balance in Non Non Performing Performing EXPOSURE AT DEFAULT (EAD) AS A % Sep 17 Mar 18 Sep 17 Mar 18 Mar 18 OF GROUP TOTAL Consumer Lending 41.5% 40.5% 0.1% 0.1% $425m Finance, Investment & Insurance 17.2% 18.5% 0.0% 0.0% $86m TOTAL GROUP EAD (Mar 18) Property Services 6.6% 6.6% 0.3% 0.3% $158m = $930b 1 Manufacturing 4.5% 4.5% 0.7% 0.5% $213m 5.9% 1.4% Agriculture, Forestry, Fishing 3.8% 3.8% 1.2% 1.1% $378m 1.6% 1.3% Government & Official Institutions 7.2% 7.1% 0.0% 0.0% $0m 2.1% 1.7% 2.2% Wholesale trade 3.0% 2.9% 0.5% 0.4% $107m 2.9% Retail Trade 2.3% 2.2% 0.8% 0.9% $188m 40.5% Transport & Storage 2.0% 2.1% 0.7% 0.2% $44m 7.1% Business Services 1.7% 1.7% 1.1% 0.9% $149m Resources (Mining) 1.5% 1.6% 1.2% 0.9% $131m 3.8% Electricity, Gas & Water Supply 1.3% 1.3% 0.1% 0.1% $15m 4.5% Construction 1.4% 1.4% 2.3% 1.8% $239m Other 6.0% 5.9% 0.6% 0.4% $222m 6.6% Total 100% 100% $2,355m 18.5% Total Group EAD 1 $903b $930b 1. EAD excludes amounts for ‘Securitisation’ and ‘Other Assets’ Basel classes and manual adjustments. Data provided is as at Mar 18 on a Post CRM basis, net of credit risk mitigation such as guarantees, credit derivatives, netting and financial collateral. 68

  52. PORTFOLIO TREND PERCENTAGE OF PORTFOLIO IN NON PERFORMING For personal use only CONSUMER LENDING WHOLESALE TRADE RETAIL TRADE $b $b $b % % % 400 3.5 80 3.5 80 3.5 3.0 3.0 3.0 60 300 60 2.5 2.5 2.5 2.0 2.0 2.0 200 40 40 1.5 1.5 1.5 1.0 1.0 1.0 100 20 20 0.5 0.5 0.5 0 0.0 0 0.0 0 0.0 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep 12 Mar 13 Sep 13 Mar 14 Sep 14 Mar 15 Sep 15 Mar 16 Sep 16 Mar 17 Sep 17 Mar 18 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 % of NPL (RHS) EAD % of NPL (RHS) EAD % of NPL (RHS) EAD FINANCE, INVEST. & INSURANCE BUSINESS SERVICES ELEC, GAS & WATER SUPPLY $b % % % $b $b 400 3.5 80 3.5 80 3.5 3.0 3.0 3.0 300 2.5 60 60 2.5 2.5 2.0 2.0 2.0 200 40 40 1.5 1.5 1.5 1.0 1.0 1.0 100 20 20 0.5 0.5 0.5 0 0.0 0 0.0 0 0.0 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 % of NPL (RHS) EAD % of NPL (RHS) EAD % of NPL (RHS) EAD Note: % of portfolio in non performing = % of segment non performing exposures as a % of total segment exposures. 69

  53. PORTFOLIO TREND PERCENTAGE OF PORTFOLIO IN NON PERFORMING For personal use only CONSTRUCTION AGRI, FORESTRY, FISHING MANUFACTURING $b % $b % $b % 80 3.5 80 3.5 80 3.5 3.0 3.0 3.0 60 60 60 2.5 2.5 2.5 2.0 2.0 2.0 40 40 40 1.5 1.5 1.5 1.0 1.0 1.0 20 20 20 0.5 0.5 0.5 0 0.0 0 0.0 0 0.0 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 % of NPL (RHS) EAD % of NPL (RHS) EAD % of NPL (RHS) EAD RESOURCES TRANSPORT & STORAGE PROPERTY SERVICES $b % $b % % $b 80 3.5 80 3.5 80 3.5 3.0 3.0 3.0 60 60 60 2.5 2.5 2.5 2.0 2.0 2.0 40 40 40 1.5 1.5 1.5 1.0 1.0 1.0 20 20 20 0.5 0.5 0.5 0 0.0 0 0.0 0 0.0 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 % of NPL (RHS) EAD % of NPL (RHS) EAD % of NPL (RHS) EAD Note: % of portfolio in non performing = % of segment non performing exposures as a % of total segment exposures. 70

  54. RISK MANAGEMENT GROUP RESOURCES PORTFOLIO For personal use only RESOURCES EXPOSURE BY SECTOR (%) Total EAD (Mar 18): $15.1b 9.4 As a % of Group EAD (Mar 18): 1.6% 8.3 7.6 7.2 4.6 4.5 4.4 3.7 3.0 2.6 2.4 1.8 1.4 1.4 1.2 1.1 1.1 1.0 0.9 0.9 Coal Mining Metal Ore Mining Oil & Gas Extraction Other Mining Services To Mining Mar 15 Mar 16 Mar 17 Mar 18 RESOURCES EXPOSURE CREDIT QUALITY (EAD) RESOURCES PORTFOLIO MANAGEMENT $b • AUS NZ ASIA OTHER Portfolio is skewed towards well capitalised and lower cost resource producers. 7.3 0.6 2.7 4.6 • 32% of the book is less than one year duration. 19% 21% 25% 47% • Investment grade exposures represent 68% of portfolio vs. 66% at Sep 17 and Trade business unit accounts for 18% of 81% 79% 75% the total Resources EAD. 53% • Mining services customers are subject to heightened oversight AUS NZ ASIA EA & Other given the cautious outlook for the services sector. Sub-Investment Grade Investment Grade 71

  55. RISK MANAGEMENT COMMERCIAL PROPERTY PORTFOLIO For personal use only COMMERCIAL PROPERTY OUTSTANDINGS BY COMMERCIAL PROPERTY OUSTANDINGS BY REGION 1 SECTOR 1 % $b % 100 38.4 37.9 37.7 37.6 37.5 37.5 37.4 80 8.0 3.9 2.7 2.4 3.6 3.0 4.5 4.7 60 7.5 40 9.5 9.7 8.8 9.7 9.5 8.3 8.4 20 7.0 Mar 17 Sep 17 Mar 18 Offices Retail Industrial Residential Tourism Other 6.5 PROPERTY PORTFOLIO MANAGEMENT • Overall Australian volumes decreased modestly by 2%. Decreases in the 25.7 25.5 25.4 6.0 24.9 Residential/Land Subdivision sector was due to lower market activity 24.6 24.8 24.4 together with the effects of tightening strategy and followed by repayments from some major REITs in the Offices sector. An increase witnessed in the Other sector is due to new lending to a healthcare REIT. 5.5 • New Zealand volumes remained stable. Material repayments across the Residential/Land Subdivision and Industrial sectors have been fully offset by exchange rate movement over 1H18. 5.0 Mar 15 Sep 15 Mar 16 Sep 16 Mar 17 Sep 17 Mar 18 • APEA volumes for 1H18 increased $0.6b on the back of a number of large transactions entered into in Hong Kong and Singapore. This follows % of Group GLA (RHS) New Zealand consecutive quarters of reduction arising from RWA optimization efforts. APEA 2 Australia 1. As per ARF230 disclosure. 2. APEA = Asia Pacific, Europe & America. 72

  56. RESIDENTIAL DEVELOPMENT COMMERCIAL PROPERTY EXPOSURE For personal use only OVERVIEW PROFILE (Mar 18) Total Residential Limits: $9.7b • Overall Apartment Development limits have increased modestly by $0.06bn (2%) in the first half of 2018. 30% • Growth has been subdued as appetite tightening strategies have taken 22% Apartment Development effect and market conditions slow. Other Development 1 Residential & Subdivision • Limits to Inner City Apartment Developments have reduced to 9% of Investment Total as at Mar 18 (was 20% as at Sep 17) as a result of repayment 12% from completed projects in Brisbane and Melbourne. 36% Average qualifying pre-sales 2 and LVRs were 116% and 53% • respectively for Inner City Apartment Developments. New Inner City Apartment Developments continue to be subject to tight LVR, pre-sale $0.3b inner city Apartment Development apartment and % of foreign buyer parameters. development $3.5b • Outside of Inner City, Apartment Development limits were weighted Melb 54% towards NSW and 33% towards VIC, 12% for QLD and minimal NSW 0.1 Bris exposures in other states. 1.7 0.1 Syd • 0.1 Ongoing close monitoring of development projects with regular internal management reporting, noting our facilities are continuing to be repaid on time. • Industry trends and risks are being closely monitored with appropriate $3.2b other strategies implemented. apartment 1.0 development VIC 0.4 0.1 1. Other Development comprises of Low Rise & Prestige Residential and Other Residential or Multi Project Development. QLD Other 2. Calculated as the average of the qualifying pre-sales to the debt cover ratio, as determined under Bank policy. 73

  57. RISK MANAGEMENT GROUP AGRICULTURE PORTFOLIO For personal use only NEW ZEALAND 1 DAIRY CREDIT QUALITY AGRICULTURE EXPOSURE BY SECTOR (% EAD) NZ$b FY17 PD decrease reflects subsequent impact of Total EAD (Mar 18) As a % of Group EAD milk price recovery which is continuing into 1H18. A$930b 3.8% 12.7 12.4 12.4 12.1 12.0 11.9 11.6 Dairy 10.4% Beef 2.24% 12.7% Sheep & Other 1.91% 1.76% 37.2% 1.22% Livestock 1.12% 0.88% 0.77% Grain/Wheat Horticulture/Fruit/ 16.5% Other Crops Sep 12 Sep 13 Sep 14 Sep 15 Sep 16 Sep 17 Mar 18 Forestry & Fishing/ Agriculture Services Wt. Avg. Probability of Default 2 NZ Dairy EAD 13.9% 9.3% GROUP AGRICULTURE EAD SPLITS 3 0.3% 1.6% 6.1% 3.7% 16.4% 41.7% 58.0% 73.7% 98.4% <60% Secured 80 - <100% Secured Productive Impaired Australia New Zealand Intl. Markets 60 - <80% Secured Fully Secured 1. Dairy exposures for all of ANZ New Zealand (includes Commercial and Agriculture, Institutional and Business Banking portfolios). 2. Wholesale PD model changes account for 55bps increase in FY16. 74 3. Security indicator is based on ANZ extended security valuations.

  58. RISK MANAGEMENT NEW ZEALAND For personal use only NEW ZEALAND GEOGRAPHY GROSS IMPAIRED NEW ZEALAND GEOGRAPHY TOTAL PROVISION CHARGE 1 ASSETS NZ$m NZ$m % 1,451 105 200 2.5 103 150 99 97 2.0 955 70 44 40 100 30 22 50 46 31 19 708 1.5 50 491 419 1.0 368 360 0 0.5 -50 -39 0.0 -100 Sep 12 Sep 13 Sep 14 Sep 15 Sep 16 Sep 17 Mar 18 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 GIA as % GLA GIA CP charge IP Charge MORTGAGE DYNAMIC LOAN TO VALUE RATIO 2 NEW ZEALAND DIVISION 90+DAYS DELINQUENCIES % of portfolio % 3% 1.5 2% 13% Home Loans Commercial Agri 0-60% 61-70% 1.0 71-80% 81-90% 18% 0.5 90%+ 64% 0.0 Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 08 09 10 11 12 13 14 15 16 17 18 1. Credit valuation adjustments (CVA) for customers with CCR10 are reported differently for cash profit and headline views of earnings. In the headline (statutory) view of provision reported above, changes in CVA are reported in Other Operating Income, but in the cash profit view of earnings the change in CVA is reclassified to IP. 75 2. Average dynamic LVR as at March 2018 (not weighted by balance).

  59. RISK MANAGEMENT ANZ INSTITUTIONAL PORTFOLIO (COUNTRY OF INCORPORATION 1 ) For personal use only INSTITUTIONAL PORTFOLIO SIZE & TENOR (EAD 2 ) ANZ INSTITUTIONAL INDUSTRY COMPOSITION $b EAD (Mar 18): A$393b 2 Finance (Banks and Central Banks) 400 Government Admin. 27% 31% Property Services 3 350 Services to Fin. & Ins. Basic Material Wholesaling 300 2% 49% Machinery & Equip Mnfg 3% 3% Electricity & Gas Supply 250 3% Food Beverage & Tobacco Mnfg 16% 7% Other ⁴ 8% 200 38% ANZ INSTITUTIONAL PRODUCT COMPOSITION 150 EAD (Mar 18): A$393b 2 100 51% 13% 22% Loans & Advances 62% 25% 1% Traded Securities (e.g. Bonds) 50 12% 78% Contingent Liabilities & Commitments 13% 88% Trade & Supply Chain 0 Total Institutional APEA Asia China Derivatives & Money Market Loans 9% Gold Bullion 23% Other Tenor < 1 Yr Tenor 1 Yr+ 16% 1. Country is defined by the counterparty’s Country of Incorporation. 2. Data provided is as at Mar 18 on a Post-CRM basis, net of credit risk mitigation such as guarantees, credit derivatives, netting and financial collateral. Position excludes Basel Asset Class ‘Securitisation’, ‘Other Assets’, ‘Retail’ and manual a dju stments. 3. ~88% of the ANZ Institutional “Property Services” portfolio 76 is to entities incorporated in either Australia or New Zealand. 4. Other is comprised of 47 different industries with none comprising more than 2.0% of the Institutional portfolio.

  60. RISK MANAGEMENT ANZ ASIAN INSTITUTIONAL PORTFOLIO (COUNTRY OF INCORPORATION 1 ) For personal use only COUNTRY OF INCORPORATION 1 ANZ ASIA INDUSTRY COMPOSITION EAD (Mar 18): A$92b 2 EAD (Mar 18): A$92b 2 Finance (Banks & Central Banks) 20% 7% Basic Material Wholesaling 3% Machinery & Equip Mnfg 3% Petroleum,Coal,Chem & Assoc Prod Mnfg 3% 28% 3% Property Services 4% 55% 4% Pers & Household Good Wholesaling 4% Communication Services 7% 4% Other³ 7% ANZ ASIA PRODUCT COMPOSITION 11% EAD (Mar 18): A$92b 2 Loans & Advances 20% 22% 26% Traded Securities (e.g. Bonds) 15% Contingent Liabilities & Commitments 3% Trade & Supply Chain Derivatives & Money Market Loans 11% Gold Bullion 20% Other China Singapore Taiwan India Other 5% Japan Hong Kong South Korea Indonesia 15% 1. Country is defined by the counterparty’s Country of Incorporation. 2. Data provided is as at Mar18 on a Post -CRM basis, net of credit risk mitigation such as guarantees, credit derivatives, netting and financial collateral. Position excludes Basel Asset Class ‘Securitisation’, ‘Other Assets’, ‘Retail’ and manual a dju stments. 3. “Other” within industry is comprised of 44 different 77 industries with none comprising more than 3.2% of the Asian Institutional portfolio; Other product category is predominantly exposure due from other financial institutions.

  61. For personal use only 2018 FIRST HALF RESULTS HOUSING PORTFOLIO AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

  62. AUSTRALIA HOME LOANS PORTFOLIO OVERVIEW For personal use only Portfolio 1 Flow 2 Portfolio 1 1H16 1H17 1H18 1H18 1H16 1H17 1H18 Number of Home Loan Average LVR at 79k 3 976k 992k 1,017k 71% 70% 68% accounts Origination 8,9,10 Total FUM 1 $243b $256b $270b $31b Average Dynamic LVR 9,10,11 51% 51% 51% Average Loan Size $249k $258k $266k $387k Market Share 12 15.6% 15.6% 15.8% % Owner Occupied 4 60% 62% 65% 69% % Ahead of Repayments 13 71% 71% 71% % Investor 4 36% 34% 32% 29% Offset Balances 14 $24b $26b $27b % Equity Line of Credit 4% 4% 3% 2% % First Home Buyer 7% 6% 7% % Paying Variable Rate 87% 85% 83% 82% % Low Doc 15 7% 5% 4% Loan 5 % Paying Fixed Rate Loan 5 13% 15% 17% 18% Loss Rate 16 0.01% 0.02% 0.02% % of Australia Geography % Paying Interest Only 6 37% 36% 26% 14% 7 63% 63% 64% Lending 17 % of Group Lending 17,18 % Broker originated 48% 50% 51% 56% 43% 44% 46% 1. Home Loans (excludes Non Performing Loans, excludes offset balances) 2. YTD (6 months to) unless noted 3. New accounts includes increases to existing accounts and split loans (fixed and variable components of the same loan) 4. The current classification of Investor vs Owner Occupier, as reported to regulators and the market, is based on the classification at origination (as advised by the customer) and the ongoing precision relies on the customers obligation to advise ANZ, and ANZ targeted activity to identify, any change in circumstances. 5. Excludes Equity Manager 6. Based on APRA definition ie includes Equity Manager in the total composition 7. March Half to Date 8. Originated in the respective half 9. Unweighted 10. Includes capitalised premiums 11. Valuations updated to Mar’18 where available 12. Source for Australia: APRA to Feb’18 13. % of Owner Occupied and Investment Loans that have any amount ahead of repayments. Includes Offset balances. Excludes Equity Manager. Excludes Non Performing Loans. 14. Balances of Offset accounts connected to existing Instalment Loans 15. Low Doc is comprised of less than or equal to 60% LVR mortgages primarily for self-employed without scheduled PAYG income. However, it also has ~A$400m of less than or equal to 80% LVR mortgages, primarily booked pre-2008 16. Annualised write-off net of recoveries 17. Based on Gross Loans and Advances 18. Based on Group Cash Profit basis. 79

  63. AUSTRALIA HOME LOANS PORTFOLIO GROWTH For personal use only LOAN BALANCE & LENDING FLOWS 1 HOME LOAN COMPOSITION $b $b Payment Owner Investor Equity Loan Total +6% Type Occupied 15 4 50 P&I Loan 146.2 44.0 - 190.2 270 255 Interest Only 28.3 43.2 - 71.5 -54 Equity Loan - - 8.7 8.7 Total 174.5 87.2 8.7 270.4 Mar 17 New Sales Net OFI Redraw & Repay Mar 18 exc Refi-In Refi Interest / Other PORTFOLIO 1,2 & FLOW 3 COMPOSITION By origination LVR 4 : By location: By purpose: Portfolio Flow Portfolio Flow Flow 2% 4% 4% 3% 5% 7% 7% 7% 21% 19% 7% 22% 15% 14% 13% 29% 32% 13% 34% 36% 17% 16% 16% 19% 17% 24% 36% 31% 32% 30% 69% 64% 65% 60% 62% 60% 54% 39% 31% 32% 32% Mar-16 Mar-17 Mar-18 1H18 Mar-16 Mar-17 Mar-18 1H18 1H16 1H17 1H18 Owner Occ Investor Equity <80% LVR 80% LVR >80% LVR VIC/TAS NSW/ACT QLD WA SA/NT 1. Excludes Non Performing Loans. 2. The current classification of Investor vs Owner Occupier, as reported to regulators and the market, is based on the classification at origination (as advised by the customer) and the ongoing precision relies on the customers obligation to advise ANZ, and ANZ targeted activity to identify, any change in circumstances. 3. YTD (6 months to) unless 80 noted 4. Includes capitalised premiums

  64. AUSTRALIA DIVISION PORTFOLIO DYNAMICS For personal use only HOME LOANS REPAYMENT PROFILE 1,2 HOME LOANS ON TIME & <1 MONTH AHEAD PROFILE 1,2 % composition of accounts (March 18) 71% of accounts ahead of repayments Investment : 5 Interest payments may receive negative gearing/tax benefits New Accounts : Less than 1 year old 26% 26% Structural: Loans that restrict payments in advance. E.g. interest only and fixed rate Residual: Less than 1 month repayment buffer 17% DYNAMIC LOAN TO VALUE RATIO 1,3,4 % of portfolio 50 9% 40 7% 6% 6% 30 3% 20 10 0 0-60% 61-75% 76-80% 81-90% 91-95% 95%+ Overdue On Time <1 month 1-3 3-6 6-12 1-2 years >2 years ahead months months months ahead ahead ahead ahead ahead Mar 15 Mar 16 Mar 17 Mar 18 Mar 15 Mar 16 Mar 17 Mar 18 1. Excludes Non Performing Loans 2. % of Owner Occupied and Investment Loans that have any amount ahead of repayments. Includes Offset balances. Excludes Equity Manager. Excludes Non Performing Loans 3. Includes capitalised premiums 4. Valuations updated to Mar’18 where available 5 . The current classification of Investor vs Owner Occupier, as reported to regulators and the market, is based on the classification at origination (as advised by the customer) and the ongoing precision relies on the customers obligation to advise ANZ, and ANZ targeted activity to 81 identify, any change in circumstances.

  65. AUSTRALIA DIVISION PORTFOLIO PERFORMANCE For personal use only PRODUCT 90+ DAY DELINQUENCIES 1 HOME LOAN DELINQUENCIES 1,3 % % 2.0 2.0 1.5 1.5 1.0 1.0 0.5 0.5 0.0 0.0 Sep Sep Sep Sep Sep Sep Mar Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar 12 13 14 15 16 17 18 12 12 13 13 14 14 15 15 16 16 17 17 18 Home Loans Personal Loans 30+ DPD % 90+ Investor Consumer Cards Corporate & Commercial 2 90+ Owner Occupied HOME LOANS 90+ DPD BY STATE 1 HOME LOANS - 90+ DPD (BY VINTAGE) 4 Note: FY14 vintages and prior were impacted by hardship prior to policy solutions % % put in place and therefore not comparable to FY15 vintages and onwards 2.0 2.0 1.5 1.5 1.0 1.0 0.5 0.5 0.0 0.0 VIC & TAS NSW QLD WA SA & NT Portfolio 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 & ACT Month on book Mar 12 Mar 14 Mar 16 Mar 18 FY15 FY16 FY17 Mar 13 Mar 15 Mar 17 1. Excludes Non Performing Loans 2. Comprises Small Business, Commercial Cards and Asset Finance 3. The current classification of Investor vs Owner Occupier, as reported to regulators and the market, is based on the classification at origination (as advised by the customer) and the ongoing precision relies on the customers obligation to advise ANZ, and ANZ targeted activity to 82 identify, any change in circumstances 4. Home loans 90+ dpd vintages % ratio of ever delinquent (measured by # accounts) contains at least 6 application months of that fiscal year contributing to each data point.

  66. AUSTRALIA HOME LOANS AREAS OF INTEREST For personal use only WA OUTSTANDING BALANCE • Greater focus on Acquisition & Collection management strategies have been applied $b 40 • Exposure to WA has decreased since Mar-16 driven by the economic environment and credit policy tightening (mining town lending, etc) 35 • Currently WA makes up 13% of the portfolio FUM (and decreasing), however makes up 30% of 90+ (and approximately 30 half of portfolio losses 1 ) • Tailored treatment of collection and account management 25 strategies • Conservative approach to provisions management 20 Mar 14 Sep 14 Mar 15 Sep 15 Mar 16 Sep 16 Mar 17 Sep 17 Mar 18 HOME LOANS AND WA 90+ DELINQUENCIES 2 HOME LOANS COMPOSITION OF LOSSES 1 % 2.0 1.5 48% 49% 51% 55% 57% 73% 1.0 0.5 52% 51% 49% 45% 43% 27% 0.0 Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar 2H15 1H16 2H16 1H17 2H17 1H18 13 14 14 15 15 16 16 17 17 18 WA 90+ Rate Portfolio 90+ Rate without WA WA Rest of the portfolio Portfolio 90+ Rate 1. Losses are based on New Individual Provision Charges 2. Excludes Non Performing Loans 83

  67. AUSTRALIA HOME LOANS INTEREST ONLY (IO) For personal use only INTEREST ONLY FLOW COMPOSITION 1 • Serviceability assessment is based on ability to repay principal % & interest repayments calculated over the residual term of loan • 81% of IO customers have net income >$100k pa. (portfolio APRA’s 30% limit introduced March 2017 64%) 30% • Arrears levels are lower for Interest Only vs overall portfolio • Recent policy & pricing changes have led to a reduction in IO 42 lending. ANZ has met APRA’s 30% threshold lending 38 requirement and the interest only flow composition is now at 27 14% for 1H18. 14 • Proactive contact strategies are in place to prepare customers for the change in their cash repayments ahead of Interest Only 2H16 1H17 2H17 1H18 expiry SWITCHING INTEREST ONLY TO P&I AND SCHEDULED INTEREST ONLY TERM EXPIRY 2 $b 8 4 2 11 11 10 8 8 7 7 6 6 5 4 4 3 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23+ Early conversions Contractual 1. Based on APRA definition (includes Equity Manager). 2. Includes construction loans 84

  68. AUSTRALIA HOME LOANS UNDERWRITING PRACTICES AND POLICY CHANGES 1 For personal use only Multiple checks during origination process • End-to-end home lending responsibility managed within ANZ Pre – application 2 Income & Expenses • Effective hardship & collections processes • Full recourse lending Application Know Your Customer • ANZ assessment process across all channels Quality assurance, info verification & policy reviews Income Verification Serviceability Income Shading Serviceability Expense Models Interest rate floor applied to new and existing Interest Rate Buffer Aug'15 mortgage lending introduced at 7.25% Repayment Sensitisation Introduction of an income adjusted living expense floor (HEM*) LVR Policy Collateral / LMI Policy Introduction of a 20% haircut for overtime and Valuations Apr'16 Valuations Policy commission income Increased income discount factor for residential rental income from 20% to 25% Credit Credit History Assessment Bureau Checks *The HEM benchmark is developed by the Melbourne Institute of Documentation Applied Economic and Social Research (‘the Melbourne Institute’), Fulfilment Security based on a survey of the spending habits of Australian families. 1. 2015 to 2018 material changes to lending standards and underwriting 2. Customers have the ability to assess their capacity to borrow on ANZ 85

  69. AUSTRALIA HOME LOANS UNDERWRITING PRACTICES AND POLICY CHANGES 1 For personal use only ANZ Policy changes Jun'15 LVR cap reduced to 70% in high risk mining towns Jul'15 LVR cap reduced to 90% for investment loans Aug’15 Interest rate floor applied to new and existing mortgage lending introduced at 7.25% Apr’16 Introduction of an income adjusted living expense floor (HEM) Introduction of a 20% haircut for overtime and commission income Increased income discount factor for residential rental income from 20% to 25% Sep'16 Withdrawal of lending to non-residents Limited acceptance of foreign income to demonstrate serviceability and tightened controls on verification Dec'16 Tightening of acceptances for guarantees Jan'17 Decreased maximum interest only term of owner occupied interest only loans to 5 years May'17 The maximum interest only period reduced from 10 years to 5 years for investment lending to align to owner occupier lending Reduced LVR cap of 80% for Interest Only 2 lending Interest only lending no longer available on new Simplicity PLUS loans (owner occupier and investment lending) Minimum default housing expense (rent/board) applied to all borrowers not living in their own home and seeking RILs 3 or EMAs 4 Jun’17 Oct’17 Restrict Owner Occupier and Investment Lending (New Security to ANZ) to Maximum 80% LVR for all apartments within 7 inner city Brisbane postcodes. Restrict Investment Lending (New Security to ANZ) to Maximum 80% LVR for all apartments within 4 inner city Perth postcodes Dec’17 Update to clarify that residential mortgage lending to trading companies is not acceptable. Mar’18 All Interest Only loan renewals will be Credit Critical events (requiring full income verification and serviceability test) including (i) Changing from P&I to IO and (ii) Converting to or Extending an IO term. 1. 2015 to 2018 material changes to lending standards and underwriting 2. Excludes investment lending for specific medical practitioners (eligible Medicos) where LVR cap is a maximum of 90% of lending. 3. Residential Investment Loans 4. Equity Manager Accounts 86

  70. AUSTRALIAN HOME LOANS STRESS TESTING THE AUSTRALIAN MORTGAGE PORTFOLIO For personal use only  ANZ conducts regular stress tests of its loan portfolios to Assumptions Current Year 1 Year 2 Year 3 meet risk management objectives and satisfy regulatory Unemployment requirements. 5.5% 9.0% 10.5% 11.5% rate  Stress tests are highly assumption-driven; results will depend on economic assumptions, on modelling Cash Rate 1.5% 0.25% 0.25% 0.25% assumptions, and on assumptions about actions taken in Real GDP year response to the economic scenario. 2.4 -3.8% -2.4% 4.7% ended growth  This illustrative recession scenario assumes significant Cumulative reductions in consumer spending and business investment, reduction in house - -26.8% -38.3% -32.7% which lead to eight consecutive quarters of negative GDP prices growth. This results in a significant increase in Portfolio size 1 298 297 290 281 unemployment and material nationwide falls in property (A$b) prices.  Estimated portfolio losses under these stressed conditions Outcomes Base Year 1 Year 2 Year 3 are manageable and within the Group’s capital base, with cumulative total losses at A$1.6b over three years (net of - 158 724 749 Net Losses (A$m) LMI recoveries).  The results are not materially different from the stress test Net losses (bps) - 5 25 27 six months ago. 1. Exposure at default 87

  71. LENDERS MORTGAGE INSURANCE ANZLMI HAS MAINTAINED STABLE LOSS RATIOS For personal use only MARCH HALF YEAR 2018 RESULTS LMI & REINSURANCE STRUCTURE Australian Home Loan portfolio LMI and Reinsurance Structure at 31 Mar 2018 (% New Business FUM Oct-17 to Mar-18) Gross Written Premium ($m) $81.4m LVR<80% Not LMI Insured Net Claims Paid ($m) $7.7m 87% Loss Rate (of Exposure) 2.7bps 2018 Reinsurance Arrangement LVR 80% to 90% LMI LVR > 90% LMI 8% 5% Insured Insured ANZLMI MAINTAINS LOW LOSS RATIOS 1 Quota Share 2 Arrangement 150 Aggregate Stop Loss 3 (LVR > 90%) Arrangement on Net Risk Retained 100 (LVR > 80%) 50 ANZLMI uses a diversified panel of reinsurers (10+) comprising a mix of APRA authorised reinsurers and reinsurers 0 with highly rated security -50 Reinsurance is comprised of a Quota Share arrangement 2 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 with reinsurers for mortgages 90% LVR and above and in Industry ANZ LMI Insurer 1 Insurer 2 Insurer 3 addition an Aggregate Stop Loss arrangement 3 for policies over 80% LVR 1. Negative Loss ratios are the result of reductions in outstanding claims provisions. Source: APRA general insurance statistics (loss ratio net of reinsurance) last published November 2017; 2. Quota Share arrangement - reinsurer assumes an agreed reinsured % whereby reinsurer shares all premiums and losses accordingly with ANZLMI ; 3. Aggregate Stop Loss arrangement – reinsurer indemnifies ANZLMI for an aggregate (or cumulative) amount of losses in excess of a specified aggregate amount. When the sum of the losses exceeds the pre-agreed amount, the reinsurer will 88 be liable to pay the excess up to a pre-agreed upper limit.

  72. NEW ZEALAND MORTGAGES PORTFOLIO OVERVIEW 1 For personal use only Portfolio Growth Portfolio Growth 1H18 v 1H17 1H18 1H18 v 1H17 1H17 1H18 1H17 Number of Home Loan accounts 515k 523k 1.6% Average LVR at Origination 2 59% 58% -126bps Total FUM NZ$75b NZ$79b 4.7% Average Loan Size at Origination 2 NZ$295k NZ$274k -6.9% Average Dynamic LVR 2 42% 42% -63bps Average Loan Size 2 NZ$145k NZ$150k 3.1% Market Share 3 31.1% 30.9% -16bps % of NZ Geography Lending 61% 62% 123bps 12% 13% 44bps % of Group Lending % Paying Interest Only 4 23% 21% -134bps 73% 74% 76bps % Owner Occupied 77% 79% 134bps % Paying Principal & Interest % Investor 27% 26% -76bps % Paying Variable Rate Loan 22% 20% -183bps % Low Doc 5 0.48% 0.41% -7bps % Paying Fixed Rate Loan 78% 80% 183bps Mortgage Loss Rates -0.01% 0.00% 1bps % Broker Originated 34% 35% 122bps 1. New Zealand Geography 2. Average data as of March 2018 3. Source for New Zealand: RBNZ, as of February 2018. Changes in RBNZ data reporting from February 2017 onwards has resulted in a step change in data vs prior periods 4. Excludes revolving credit facilities 5. Low Documentation (Low Doc) lending allowed customers who met certain criteria to apply for a mortgage with reduced income confirmation requirements. New Low Doc lending ceased 89 in 2007

  73. NEW ZEALAND HOME LENDING 1 For personal use only FLOW 2 PORTFOLIO PORTFOLIO 6% 5% 10% 11% 20% 22% 21% 21% 38% 41% 11% 11% 7% 7% 10% 10% 78% 80% 51% 49% 45% 46% 1H17 1H18 1H17 1H18 1H17 1H18 Auckland Christchurch Other Nth Is. Branch Broker Mobile mortgage managers Fixed Variable Wellington Other Sth Is. Other³ MARKET SHARE 4 ANZ MORTGAGE LVR PROFILE 5 31.5% 31.1% 31.1% 30.9% 3% 2% 13% 0-60% 61-70% 5.0% 71-80% 4.5% 81-90% 3.1% 18% 2.8% 2.7% 2.2% 2.0% 1.8% 90%+ 64% 2H16 1H17 2H17 Feb 18 ANZ market share ANZ growth System growth 1. New Zealand Geography 2. Retail and Small Business Banking mortgage flow. Branch includes Small Business Banking Managers 3. Other includes loans booked centrally (Business Direct, Contact Centre, Lending Services, Property Finance) 4. Source: RBNZ, changes in RBNZ data reporting from February 2017 onwards has resulted in a step change in data vs prior periods 90 5. Dynamic basis, as of March 2018

  74. For personal use only 2018 FIRST HALF RESULTS DIVISIONAL PERFORMANCE AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

  75. FINANCIALS DIVISIONAL CONTRIBUTION For personal use only Group Australia Institutional New Zealand REVENUE CONTRIBUTION 1 Total Division Division Division Other $m 9,976 9,840 9,808 693 Other -1.7% +4.6% -16.7% AUD: +2.5% +13.3% 1H18 v 1H17 886 785 NZD: +5.7% 1,577 NZ Div 1,616 1,595 Institutional 3,055 2,544 2,575 1H18 v 2H17 -0.3% +1.7% -1.2% AUD: +1.3% -11.4% NZD: +3.2% 4,784 4,863 Aus Div 4,651 1H17 2H17 1H18 EXPENSES 1 $m 4,487 4,480 4,411 1H18 v 1H17 -1.7% +8.6% -3.6% AUD: -2.0% -19.6% 796 782 640 Other NZD: +0.9% 588 600 593 NZ Div 1,371 1,392 Institutional 1,422 1H18 v 2H17 -1.5% +5.8% -1.5% AUD: -0.8% -18.2% NZD: +1.1% 1,812 1,713 Aus Div 1,669 1H17 2H17 1H18 1. Other includes Wealth Australia (continuing business), Asia Retail & Pacific and TSO & Group Centre. 92

  76. FINANCIALS DIVISIONAL CONTRIBUTION For personal use only Group Australia Institutional New Zealand PROFIT BEFORE PROVISIONS 1 Total Division Division Division Other $m 5,489 5,360 5,397 144 104 977 -1.7% +2.3% -28.2% AUD: +5.2% +239.8% NZ Div 1,002 1,028 1H18 v 1H17 NZD: +8.6% 1,633 Institutional 1,183 1,173 +0.7% -0.6% -0.8% AUD: +2.6% +38.5% NZD: +4.4% 1H18 v 2H17 2,982 3,071 3,052 Aus Div -103 Other 1H17 2H17 1H18 NET PROFIT AFTER TAX 1 $m 3,493 3,355 3,454 59 46 +4.1% +8.9% -25.5% AUD: +7.2% +140.4% NZ Div 677 726 692 1H18 v 1H17 NZD: +10.6% 793 Institutional 1,065 859 +1.1% +3.1% -7.7% AUD: +4.9% +28.3% 1H18 v 2H17 NZD: +6.9% 1,915 1,857 Aus Div 1,759 -146 Other 1H17 2H17 1H18 1. Other includes Wealth Australia (continuing business), Asia Retail & Pacific and TSO & Group Centre. 93

  77. AUSTRALIA DIVISION FINANCIAL PERFORMANCE For personal use only REVENUE EXPENSES TOTAL PROVISIONS $m $m $m 1,812 4,863 1,713 1,708 4,651 4,784 1,681 1,669 4,602 4,638 458 468 454 417 37.3% 36.5% 36.8% 35.9% 35.8% 46 60 49 312 57 344 350 335 337 325 177 192 204 62 169 126 235 213 204 191 124 1H16 2H16 1H17 2H17 1H18 1H16 2H16 1H17 2H17 1H18 1H16 2H16 1H17 2H17 1H18 Home Loans, Deposits & Payments Revenue Revenue/Avg FTE ($k) Expenses CTI Cards & Personal Loans B&PB CASH PROFIT RISK WEIGHTED ASSETS 1 STABLE RETURNS $m $b % 7.8% 1,915 161 161 1,857 150 7.2% 1,759 147 1,724 1,738 121 6.3% 6.2% 6.0% 35 34 26 26 0 2.9% 2.7% 2.4% 2.4% 2.4% 124 126 127 121 121 Mar 16 Sep 16 1H17 2H17 1H18 1H16 2H16 1H17 2H17 1H18 1H16 2H16 1H17 2H17 1H18 Additional regulatory costs Revenue/Avg RWA (annualised) BAU Return on Avg RWA (annualised) 1. Additional regulatory costs largely relate to the increased capital requirements for Australian residential mortgage exposures. 94

  78. AUSTRALIA DIVISION PRIORITIES For personal use only MOVEMENTS PRIORITIES ACTIONS METRICS FY15 FY16 FY17 1H18 Simplified products # Products decommissioned <10 <10 47 63 Optimised branch footprint # Branches 751 724 684 658 Create a simpler, better More digital branches # Digital branches 5 40 81 99 capitalised, better balanced # Over-The-Counter transactions 1 More self service 37.3m 33.8m 29.1m 27.5m and more agile bank More digital sales Digital % of retail sales 15% 16% 21% 24% More digitally active customers Digitally active customers 2.9m 3.0m 3.3m 3.4m STRATEGIC FOCUS Focus efforts on attractive # Retail Customers 5.3m 5.4m 5.6m 5.7m Attract more customers areas where we can carve Retail customers > 1 product 60.0% 60.9% 61.5% 61.6% out a winning position Commercial cross sell (% growth) 2 Deepen customer relationships 4.8% 10.8% 8.4% 11.3% Housing lending (ANZ v system) 3 1.2x 1.0x 1.2x 1.0x Grow FUM Household deposits (ANZ v system) 3 0.9x 0.6x 1.1x 0.8x Build a superior experience Launch innovative solutions to Supported wallet transactions (000's) 1,4 - 5,110 26,369 46,812 for our people and improve banker and customer Bladepay transactions (000's) 1 - n/a 62 540 customers to experience compete in the digital age Electronic verification uptake (trans / month) - 4,405 9,828 21,220 EFTPOS on Apple Pay and Android Pay - Campaign for BladePay First Home Buyer coach launched launched Oct/Nov 2017 respectively 1. Reported YTDX 2. Cross-sell as at reporting period, 1H18 on a PCP basis 3. APRA system growth numbers 95 4. Supported wallet transactions includes Apple Pay, Samsung Pay, Android Pay, Fitbit Pay, Garmin Pay and ANZ Mobile Pay

  79. AUSTRALIA DIVISION DELIVERING SUSTAINABLE RESULTS For personal use only CONSISTENT GROWTH SUSTAINABLE RETURNS $b $m 339 334 326 1,915 316 1,857 311 1,725 1,739 1,759 201 204 198 188 184 2.81% 2.78% 2.78% 2.73% 2.73% Mar 16 Sep 16 Mar 17 Sep 17 Mar 18 1H16 2H16 1H17 2H17 1H18 NLA Deposits NIM (%) Cash Profit MANAGING OUR RISK FINANCIAL OUTCOMES % % pcp 0.36% 0.35% 0.35% Growth in Home Loans FUM, biased to priority 0.33% 0.33% 6% segments of Principal & Interest and Owner Occupier loans 0.30% Improvement in credit impairment charges from 0.29% 33% 0.27% 0.26% 0.20% improving asset quality and collections strategies Increase in cash profits and delivering on our 9% strategic agenda 1H16 2H16 1H17 2H17 1H18 GIA as a % of GLA IP Loss Rate (annualised) 96

  80. AUSTRALIA DIVISION EXPENSES For personal use only 90 1,812 $m 4 49 1,669 ‘Other’ expense growth solely driven by: Group technology support Asia Retail indirect cost reallocation Investment spend 1H17 Restructuring Personnel & Inflation Other 1H18 Restructuring increase largely relating to Agile ways of working AGILE WAYS OF WORKING Speed to Value Delivering value to customers faster. for our Evidenced by: release frequency, customer • Small, multidisciplinary , teams responsible for specific, measurable outcomes Customers engagement • Iterative ways of working to deliver these outcomes faster, in smaller increments People • Transparency and accountability through visual management techniques and Engagement & Higher employee engagement & satisfaction structured team-based feedback and evaluation Talent ultimately becoming an employer of choice Attraction • Explicit alignment between company objectives and what teams work on day-to-day • Leadership , with an emphasis on personal development and coaching Simplifying our operations, products, Simplification systems & processes & Efficiency 97

  81. AUSTRALIA DIVISION RETAIL For personal use only CONSISTENT GROWTH GROWING IN OUR PRIORITY SEGMENTS $b Retail FUM ($b) , PCP growth (%) $282b NLA $121b Deposits Transact $14b 282 275 267 258 254 +7% P&I +24% $27b I/O -22% Offsets +7% $31b $271b 119 121 117 109 112 Term Deposit +4% OO +10% Inv +1% $49b Savings ~flat $11b Mar 16 Sep 16 Mar 17 Sep 17 Mar 18 Mar 18 Mar 18 NLA Deposits Home Loans Cards & Personal Loans HOME LOANS PORTFOLIO MIX 1 MANAGING RISK % % 0.19% 0.18% 0.18% 0.16% 0.14% 60% 63% 66% 71% 61% 60% 65% 62% 60% 59% 36% 34% 33% 37% 36% 31% 36% 34% 32% 26% 0.11% 0.12% 0.11% 0.10% 0.09% P&I IO OO Investor 1H16 2H16 1H17 2H17 1H18 Mar 16 Sep 16 Mar 17 Sep 17 Mar 18 GIA as a % of GLA IP Loss Rate (annualised) 1. The current classification of Investor vs Owner Occupier, as reported to regulators and the market, is based on the classification at origination (as advised by the customer) and the ongoing precision relies on the customers obligation to advise ANZ, and ANZ targeted activity to identify, any change in circumstances. 98

  82. AUSTRALIA DIVISION BUSINESS AND PRIVATE BANK For personal use only MANAGING RISK BALANCED GROWTH % $b 1.51% 1.46% 1.46% 1.42% 1.35% 83 82 80 76 75 58 58 58 58 57 0.74% 0.72% 0.64% 0.60% 0.47% Mar 16 Sep 16 Mar 17 Sep 17 Mar 18 1H16 2H16 1H17 2H17 1H18 GIA as a % of GLA IP Loss Rate (annualised) NLA Deposits IMPROVING CRWA PROFILE IMPROVING DEPOSITS MIX $b $b 5.52% 5.37% 5.31% 83 82 80 58 58 58 26.6 26.3 27.3 50 49 48 11.9 11.4 10.4 42.7 44.2 44.7 Mar 17 Sep 17 Mar 18 1H17 2H17 1H18 NLA CRWA NII/Avg cRWA (annualised) Term Deposits Transact Savings Note: Financials exclude the Esanda Dealer Finance portfolio sold in November 2015 99

  83. AUSTRALIA DIVISION DIGITAL For personal use only DELIVERING SUPERIOR EXPERIENCE FOR OUR TRANSLATING INTO BUSINESS OUTCOMES PEOPLE AND CUSTOMERS 3.6m Industry leading mobile payment services 3.3m ANZ continues to lead the banking sector with its mobile payment 3.4m services delivering more options for customers than any other major 3.0m Australian bank. digitally active customers 2.7m Support for making purchases on all the major wearable brands. Sep-16 Sep-17 Mar-18 The launch of Android PayTM for eftpos cardholders enables ANZ customers to access a complete suite of digital payment options. 24% 25% 20% Making banking easier for our customers of Australia retail sales are Launched the new ANZ App, combining the best of the Grow and completed digitally 15% goMoney apps, offering a single location for ANZ customers Sep-16 Sep-17 Mar-18 banking, super, insurance and investments. The new app supports voice ID activated payments making it easier 84% for our customers to complete high value transactions on their 85% smartphones. 80% of value transactions (deposits and withdrawals) 75% are now completed digitally 70% ANZ partnership with Data Republic Sep-16 Sep-17 Mar-18 Announced February 2018 and provides ANZ access to the Data Republic platform, a secure data sharing control centre. 19.2m Digital logons weekly 1. Digital logons include app and internet logons 100

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