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

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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

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

• 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

• IBs focus will be
• Leverage the success of Industry Specialisation
  to our institutional customers
• Client servicing
• Corporate Portal helps customers streamline
  operations

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supported by world class customer value
management systems like MARS
Key Inputs
Key Outputs
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Summary

• 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

• 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

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Global Capital Markets

• David Hornery
• Global Head of Capital Markets
• Australia and New Zealand Banking Group Limited
  20 July 2001

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Leveraging capabilities for high growth segments

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

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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

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We are delivering strong performance
m
Operating Income
Profit After Tax
m
50 Growth
18 Growth
Mar-01
Sep-00
Mar-01
Mar-00
Mar-00
Sep-00

FTE
Cost Income
Mar-01
Mar-01
Sep-00
Mar-00
Sep-00
Mar-00
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generated from a broad-based mix of products and
clients...
1996 Portfolio
2001 Portfolio
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while adopting a low risk profile
Daily Value at Risk Trends
USm
Limit US5.2m
Avg use US1.9m
Source Group Market Risk
Dec 99 Mar 01

• Credit Risk
• Risk limits unchanged
• The majority is MTM on Derivatives books
• Residual is typically Investment Grade Securities
  Inventory
• Netting and collateral management are important
  initiatives

• Market Risk
• Risk managed under global books
• Market Risk (VaR) limits and usage unchanged

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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)

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

• Securitisation
• Credit Equity Derivatives
• Complex Hybrids
• Advice Structured Solutions

High IP, complex, higher margin fee-based
business
Margin skill game

• Interest Rate Derivatives
• Long-Dated Aust NZ Credit Product
• Syndication, Securities, Origination

Strong sustainable market positions

• Cash, Short-Dated Securities, FRAs
• AusMarkets.com
• ANZ Futures
• ANZ Mees Pierson
• Clearing Services

Commoditised, cost volume-driven economics
Volume cost game
Sell Exit e-enable
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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

Increasing complexity

• 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)

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and equity derivatives
Full suite of structured/customised High net
worth product
Growth Cycle
Corporate Investment Stock Option Management
Structured Investment
Investor Services

• Higher complexity
• Increased value
• Greater franchise leverage

Trading Business
Basic Core Competencies (people, risk, systems,
reputation)
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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

• Goals
• 15 earnings growth
• Global leadership in Australian and NZ credit
  derivative products

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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

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The material in this presentation is general
background information about the Banks
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 [phone] e-mail
gentryp_at_anz.com
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Copy of presentation available on www.anz.com