ANZ Financial Performance Overview

SECTION 5 IFS - a strong domestic franchise, continued risk reduction offshore ANZ has a strong tradition and leading position in the domestic institutional banking market. A very strong domestic franchise* • Our core domestic Institutional Banking 80% business once again performed well in 2003, as we pursued our strategy to reduce non strategic exposures in the US and European markets, whilst placing emphasis on domestic 60% activities. 71% 69% II Total Customers Significant Customers* II Lead Customers* 63% 60% 57% 53% 54% 49% 64% 61% • • • Our Capital Markets business also produced a robust result, with increased client penetration and higher trading volumes notwithstanding an environment of low interest rate volatility and consequently reduced client hedging activity. Transaction Services produced a respectable result in a difficult external environment as a result of SARS and Australia's extended drought. Foreign Exchange earnings were flat for the year as a whole, with range bound currencies and a difficult international environment contributing to slow market conditions. Corporate Financing and Advisory services were flat in a slow external environment with limited transaction flow in the corporate advisory and project finance markets. This downturn was offset by a more robust performance in areas including private equity, infrastructure fund management and structured asset financing. Structured Finance International produced lower profits as a result of our re-weighting of the portfolio in both risk and geographic terms, and due to subdued market conditions. 54% 52% 38% 40% 47% 45% 32% 46% 39% 37% 42% 20% 31% 28% 23% 27% 23% 21% 21% 18% 15% 13% 0% 8。。。 8 ANZ Peer 1 Peer 2 *Source 2016 Peer 3 Peer 4 20% 17% - Greenwich and Associates Domestic profit growth has absorbed offshore reductions for 2003 7% 1% -1% Insitutional Capital Markets Transaction Services Foreign Exchange CFA SFI 38 -19% ANZ

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