ANZ Financial Performance Overview

SECTION 5 Consumer Finance: profitable market leadership 44% Good underlying momentum in the Australian business NPAT# • ANZ is the Australian market leader in the credit card business, with approximately 20% market share driven by the scale and variety of our product offerings. • The Consumer Finance business enjoyed strong underlying business growth during the year including: . • An increase in net interest income of 15%, largely driven by an increase in credit card outstandings. • Merchant turnover grew 18%, driven by the ongoing shift to card-based payments and growth in market share. Since 2000 we have increased the number of merchant outlets by 85% and annual turnover has increased in excess of 90%. • Other operating income was impacted by a first half charge of $38m pre tax, relating to an under accrual of loyalty points dating back to 1999. After adjusting for the under accrual write back, NPAT grew 28% half on half and 26% for the year. The Reserve Bank interchange fee reduction has resulted in a decrease in interchange revenue of between 40- 50%. We have endeavored to reduce the net impact to the business through the restructuring of our rewards program and the strategic alliance formed with Diners Card International. A comprehensive communications and retention program has been established following the program restructuring announcement. To date, customer retention levels have been significantly better than expected. Issuing 1H03 12H03 13% 9% Acquiring Personal Loans Strong market share in all aspects of cards market* 18% 16% 28% 21% 19% # of Accounts 41 Cash Advances Purchases Outstandings Limits # - NPAT for Australian businesses only - *Source RBA July 2003 ANZ

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