ANZ Financial Performance Overview

SECTION 3 Australian banks: A decade of efficiency gains and credit expansion 65% • The Australian banking sector has enjoyed a decade of efficiency gains which has seen material reductions in Cost to Income ratios. 60% 55% . ANZ has outstripped its competitors and has achieved world class efficiency. 50% • A study of the world's top 100 banks by Boston Consulting Group earlier this year found that ANZ was in the top five banks in the world in terms of efficiency, total shareholder return and risk-adjusted relative shareholder return over the previous five years. • Solid credit growth during the past decade has also contributed to the out performance of Australian banks. A significant driver of recent credit growth has been the consumer sector, in particular via home lending. Our forecast is for a weakening in housing growth, which in part is forecast to be offset by increasing demand for business credit. Overall system credit growth is forecast to weaken but to remain at positive levels. Cost to Income^ NAB CBA WBC ANZ ANZ Target 45% 40% 1998 1999 2000 2001 2002 2003 Annual Growth 20% 15% 10% 5% 0% Australian Credit Growth# Forecast* Sep-89 Sep 91 Sep-93 Sep-95 Sep-97 Sep-99 Sep-01 Sep-03 Sep-05 -5% 14 Sources: #RBA, *Economics@ANZ, ^Citigroup Analyst Forecasts, CBA 2003 Results ANZ

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