Investor Presentaiton

Common Equity Tier 1 ratio, dividend timing and regulatory capital generation APRA Basel III CET1 Ratio 9.0% 8.5% 8.0% 7.5% 7.0% Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Note: shaded quarters represent declaration of dividends. Basel III basis. Common Equity Tier 1 generation (bps) First half average 1H15 1H12- 1H14 Cash profit 102 102 RWA growth (29) (22) Capital deductions (18) (21) Net capital generation 55 59 Gross dividend (70) (72) Dividend Reinvestment 14 8 Plan Core change in CET1 capital ratio (1) (5) Other non-core and non- recurring items 11 (2) Under Basel III, dividends are only deducted from regulatory capital in the quarter in which they are declared. This results in volatility in quarterly reported capital ratios. To assess the underlying regulatory capital position, dividend payments should be adjusted to accrue evenly over the year, aligned with profit generation. Net change in CET1 capital ratio 10 (7) ANZ, 29

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