Slide 1: 2007 Annual General Meeting
BEING DIFFERENT w7anteam 2007 Annual General Meeting POMperooial use On
Slide 2: Charles Goode, Chairman
For personal use only Charles Goode Chairman
Slide 3: WA is a very important part of ANZ
WA is a very important part of ANZ For personal use only • First branch opened in 1841 • More than 31,000 shareholders • Over 1,400 staff • 84 branches • Largest ATM network
Slide 4: 2007 Annual General Meeting
For personal use only 2007 Annual General Meeting
Slide 5: John McFarlane
For personal use only John McFarlane
Slide 6: 2007 Annual General Meeting
For personal use only 2007 Annual General Meeting
Slide 7: Fourteen successive years of increased dividends
Fourteen successive years of increased dividends For personal use only Dividend per share (cents) 136 125 110 101 95 85 73 64 56 48 52 42 33 20 25 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Slide 8: Highest growth in Profit Before Provisions since 2001
Highest growth in Profit Before Provisions since 2001 For personal use only Profit Before Provisions ($m) 11% 6,114 5,484 4,966 4,514 3,661 3,891 3,314 2001 2002 2003 2004 2005 2006 2007
Slide 9: Individual provisions still below average
Individual provisions still below average For personal use only 900 810 800 691 700 611 631 600 580 526 484 500 444 400 357 338 300 200 100 0 FY03 FY04 FY05 FY06 FY07 Individual Provision Charge Individual Provision Expected Loss
Slide 10: Asset quality remains strong
Asset quality remains strong For personal use only Net non-accrual loans as a % of net advances 8% 7% 6% 5% 4% 3% 2% 1% 0% 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007
Slide 11: Basel II capital accord
Basel II capital accord For personal use only • Awarded advanced accreditation • Operating some of the most advanced risk management systems globally • Some reduction in ANZ’s minimum regulatory capital anticipated
Slide 12: Personal Division: Another outstanding year
Personal Division Another outstanding year For personal use only Revenue ($m) Earnings ($m) 12% 16% 1,442 4,693 4,183 1,239 2006 2007 2006 2007
Slide 13: Personal Division: Recognition of success
Personal Division Recognition of success For personal use only • Money Magazine Bank of the Year • Home Loan Lender of the year • Online Lender of the year Home • CSIA Best of the Best award • National Large Business award
Slide 14: Institutional Division: Performed below expectations
Institutional Division Performed below expectations For personal use only Profit Before Provision growth 14% 11% 6% 6% Total Australia New Europe & Asia Pacific Zealand US -13% -17%
Slide 15: Institutional Division: Strong franchise
Institutional Division Strong franchise For personal use only Relationship Bank Market Penetration (%) 70 68 No. 1 64 60 54 50 Relationship Bank 45 44 37 37 19 13 ANZ Peer Peer Peer 1 2 3 Lead customers Significant customers Peter Lee Associates, 2007 Total customers
Slide 16: New Zealand performing well
New Zealand performing well For personal use only 2007 Financial performance Impacted by very low 13% provisions in • New Zealand Bank 2006 of the Year • No 1 bank for 6% rural agribusiness customers Profit before Net Profit Provisions after Tax
Slide 17: Asian investments - important step in ANZ's growth strategy
Asian investments - important step in ANZ’s growth strategy For personal use only Asian investments ($m) 2007 investments 847 492 323 12 30 102 Asian AMMB Vientiane Shanghi Saigon Citizens investments Commercial Rural Securities Security prior to Bank Commercial Inc. Bank 2007 Bank
Slide 18: Asia GDP growth forecast to be times higher than OECD
Asia GDP growth forecast to be 3 times higher than OECD For personal use only Global economic growth 10% OECD Developing economies 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 1996 1998 2000 2002 2004 2006 2008f Sources: IMF and Economics@ANZ . Note: GDP is measured in US$ at purchasing power parities
Slide 19: Investing in ANZ branches in Asia
Investing in ANZ branches in Asia For personal use only
Slide 20: Australian Banks need greater scale
Australian Banks need greater scale For personal use only • To successfully compete for investments • Provide sufficient balance sheet scale to support our clients The banking environment has changed
Slide 21: The Australian banking and financial services sector is competitive
The Australian banking and financial services sector is competitive For personal use only Major Australian Banks 12 competitors International Regional in every Banks Banks segment of the market Specialist Financial Providers
Slide 22: Staff and Customers
Staff and Customers For personal use only 30 Sept 1997 30 Sept 2007 Significant Staff Engagement Improvement Retail Customer Satisfaction* ANZ 69.2% 77.2% Ave of other 3 major Australian 68.3% 71.4% Banks *Source: Roy Morgan Research – Australian MFI Population aged 14 or older, % satisfied (“very”
Slide 23: Geographical representation
Geographical representation For personal use only Countries entered since 1997 American Samoa, Cambodia, East Timor, Guam, Kiribati, Laos Countries left since 1997 Argentina, Bahrain, Bangladesh, Brazil, Chile, France, Greece, Guernsey, Iran, Israel, Jersey, Jordan, Mexico, Nepal, Pakistan, Qatar, S
Slide 24: Financial measures
Financial measures For personal use only 30 Sept 1997 30 Sept 2007 No. of Shareholders 132,450 327,703 Total Assets ($m.) $138,241 $392,613 Shareholder Funds ($m) $6,993 $22,048 Net Profit After Tax ($m) $1,024 $4,180 Earnings per Share 78.4 cents 224.1 cents Dividend per Share 48 cents 136 cents Co
Slide 25: Significant opportunities
Significant opportunities For personal use only • Extending focus on medium-to-long term • Realising the full value from our culture • Greater investment in technology • Reducing complexity across the Group • Wealth management opportunities • Asia Pacific focus through new division
Slide 26: Our approach to the environment
Our approach to the environment For personal use only
Slide 27: ANZ's largest office building will have a star green rating
ANZ’s largest office building will have a 6 star green rating For personal use only
Slide 28: ANZ has relocated to the most energy efficient building in Adelaide
ANZ has relocated to the most energy efficient building in Adelaide For personal use only • ANZ’s office fit-out has a 5 star green rating • Significantly improved working environment
Slide 29: Cash EPS Growth 2005-2007
Cash EPS Growth 2005-2007 For personal use only Cash Earnings Per Share Growth (%) ANZ Average of other 3 major trading banks 14.7% 13.2% 13.6% 8.8% 8.1% 8.1% 2005 2006 2007
Slide 30: New management board appointments
New management board appointments For personal use only Chief Executive Officer Operations, Michael Smith Technology & Shared Senior Managing Services Director David Cartwright Bob Edgar Human Resources Susan Babani Chief Financial Officer Chief Risk Officer Peter Marriott David Stephen New Zealand
Slide 31: Effect of the sub-prime lending crisis
Effect of the sub-prime lending crisis For personal use only • Mainly focused in the US • Some customers have exposure to the turmoil • ANZ has no direct exposure to US sub-prime • Sound liquidity policies, diversified funding sources
Slide 32: 2008 expected to be a good year in terms of economic growth
2008 expected to be a good year in terms of economic growth For personal use only GDP Growth Business Credit Growth (2008 forecasts) (2008 forecasts) ~13.2% ~ 3.8% ~9.1% ~ 2.0% Australia New Zealand Australia New Zealand
Slide 33: 2007 Annual General Meeting
For personal use only 2007 Annual General Meeting
Slide 34: 2007 Annual General Meeting
BEING DIFFERENT w7anteam 2007 Annual General Meeting POMperooial use On