ANZ BANK Overview ANZ traces its origins to the Bank of Australasia, which opened its first office

in Sydney in 1835. The bank established a Melbourne office in 1838, where ANZ's world headquarters is located today at 833 Collins Street, Melbourne. ANZ is a publicly listed company, and was incorporated on 14 July 1977 in Australia. Australia and New Zealand Banking Group Limited is the main holding and operating company for the Group. We are one of the five largest and most successful listed companies in Australia, and we are the number one bank in New Zealand. We have assets of AU$531.74 billion (as at 30 September 2010). We operate in more than 32 countries across Australia, New Zealand, the Pacific, Europe, Dubai, USA and Asia including our technology and operations centre in Bangalore, India. We have 411,692 shareholders (excludes employees whose only ANZ shares are held in trust under ANZ Employee share schemes). ANZ shares and related securities are listed on the Australian and New Zealand exchanges. We are committed to building lasting partnerships with our customers, shareholders and communities in 32 countries in Australia, New Zealand, throughout Asia and the Pacific, and in the Middle East, Europe and America. We provide a range of banking and financial products and services to around 8 million customers. We employ 48,000 people worldwide. Business strategy We aim to become a super regional bank. This involves growing our presence in the Asia Pacific region and source 25-30% of earnings from our Asia Pacific Europe and America Division by 2017, while also being very focused on growth in our core domestic businesses in Australia and New Zealand. We have a coherent strategy to drive competitive advantage: Geographic Balanced exposure to Asia's growth Regional connectivity Growing financial services market Strong domestic markets Building super regional capabilities Bench strength/talent Technology operations hubs Global core brand Governance and risk management Building leading product capability Customer focus Deep understanding of customer needs Resources, agribusiness, infrastructure Trade and investment flows Migration/people flows/education

Corporate governance In relation to corporate governance, ANZ's Board seeks to: embrace principles and practices it considers to be best practice internationally be an 'early adopter', where appropriate, by complying before a published law or recommendation takes effect take an active role in discussions of corporate governance best practice and associated regulation in Australia and overseas. Sustainability

Codes of conduct ANZ has two main Codes of Conduct and Ethics which provide employees and Directors with a practical set of guiding principles to help them make decisions in their day to day work. The Codes embody honesty, integrity, quality and trust, and employees and Directors are required to demonstrate these behaviours and comply with the Codes whenever they are identified as representatives of ANZ. ANZ is committed to actively managing and reducing the environmental impact of our activities. We acknowledge that we have an impact on the environment: Directly, through the conduct of our business operations, e.g. the energy consumed in our corporate offices, data centres and retail branches; Indirectly, through the products and services we provide to our customers, e.g. lending money to finance our customers operations and, Indirectly, through the products and services we procure, e.g. the technology and equipment we purchase to run our business

Corporate Social Responsibility Corporate responsibility framework has three priority areas: (1) Sustainable development Integrating social and environmental considerations into business decisions, products and services to help customers achieve their sustainability ambitions and deliver long term value for stakeholders. Working with business customers in this way supports their efforts to manage their social and environmental impacts, strengthens relationships and reduces ANZs reputational and commercial risk (2) Diversity and inclusion Building the most diverse and inclusive workforce of any major bank in the region to help ANZ innovate, identify new markets, connect with customers and make better, more informed decisions. ANZ employees come from more than 200 different cultural backgrounds. In many locations the composition of employees reflects the composition of the local community, enabling a strong connection between the two and the delivery of products and services most relevant to those communities (3) Financial inclusion and capability Building the financial capability of people across the region to promote financial inclusion and progression of individuals and communities. Delivery of financial education programs to the employees of business customers strengthens relationships and builds our customers employees financial capability. Delivery to low income and excluded groups in many of the countries in which ANZ operates supports business expansion plans as financial inclusion and building financial capability is a policy aim of many governments. Financially capable retail customers also hold more financial products CSR Opportunities and challenges Building a strong and sustainable pipeline of women leaders in our organisation remains a challenge. We want gender balance to be the norm at ANZ, and continue building on the conditions and cultures that e nable men and women to thrive We have an opportunity to continue to understand and capitalise on the strong inter-cultural capability of our workforce for the benefit of our customers Increasing employment opportunities for people with disability remains a focus We are continuing to build an inclusive working environment for all employees in order to leverage opportunities for innovation, connect with customers and make better more informed business decisions

Source: http://www.anz.com/resources/6/3/63300ed7-a8fb-4d17-a0132a38eee95e30/ANZ_FY13_Environmental_Indicators.pdf?MOD=AJPERES (downloaded 9 January 2014)

ANZ again ranked lead bank globally in Dow Jones Sustainability Index ANZ today welcomed the announcement that it has again been assessed the most sustainable bank globally in the 2013 Dow Jones Sustainability Index (DJSI) for the sixth time in seven years. ANZ Chief Executive Officer Mike Smith said: "This recognition is a credit to the 47,000 people at ANZ who have worked hard to improve the sustainability of our company. "We are pleased our efforts have been once again recognised but we know we can do more and remain committed to further improvement, particularly in better understanding the risks in our supply chain," Mr Smith said. In assessing ANZ's performance, the report highlighted its work to create a diverse, inclusive and highly engaged workforce and develop and implement responsible lending practices. Key points highlighted in the report include: pursuing a comprehensive approach to talent attraction and retention, developing programs for training and recruitment of traditionally marginalized groups; and leveraging its presence in developing nations to support the growth of rural industry, and deliver financial literacy programs throughout Australia, New Zealand and Asia- Pacific. DJSI is the most widely accepted global assessment of how companies approach their social, economic and environmental responsibilities. It assesses business management practices such as corporate governance, risk management, customer relations, brand management, human resources, corporate community investment, climate change mitigation and environmental performance.
Source: www.4-traders.com/AUSTRALIA-AND-NEW-ZEALAND-6492549/news/Australia-and-New-Zealand-Banking-Group--ANZagain-ranked-lead-bank-global (downloaded 27 November 2013)

Stakeholder engagement principles

principle Congruence Consultative Collaborative commitment We engage with our stakeholders on matters that align with our agenda, priorities and the issues associated with our business. We consult widely to achieve the best outcome through consideration of a diverse range of perspectives and experiences. We aim to establish deep partnerships with organisations with which we can develop a shared vision. We balance the competing needs and interests of all stakeholders in the actions we take and decisions we make every day. We create innovative programs, initiatives and responses designed to make a significant and lasting difference. We aim to be bold and have the courage to be different. We value dialogue and open, honest and ongoing communication with all stakeholders. We lead action and share our approach and outcomes widely. We are committed and persistent in our efforts to achieve a common understanding and real outcomes on challenging issues and opportunities.

Creative Communicate Commitment

Human Resource Management "Wherever we operate, we want our customers to experience great service from us, and this means we need to attract and develop the best connected and most respected people as part of the ANZ team. We believe in the inherent strength of a vibrant, diverse and inclusive workforce where the backgrounds, perspectives and life experiences of our people help us to forge strong connections with all our customers, innovate and make better decisions for our business. Our people have the opportunity to learn and progress with us, regardless of gender, age, ethnicity, cultural background, disability, religion and sexual orientation and professional background. We expect the highest standards of customer service, ethics and integrity and in return we help our people to develop and progress their careers with us." Susie Babani, Group Managing Director, Human Resources HR approach element Attracting and engaging talent approach ANZ is attracting, engaging and retaining the best people and recognising and rewarding them for their contribution: Performance management Remuneration and benefits Recruitment and retention Employee engagement

Developing our people and progressing careers

Providing opportunities to build careers globally, and enabling our people to progress: Leadership and talent Learning and development Graduates and Generalist Bankers

Valuing diversity and promoting a culture of respect and inclusion

Building a respectful and inclusive workplace where employee differences are valued: ANZ's approach to human rights Diversity and Inclusion Flexibility

Workplace relations

Fostering a safe work environment where employee wellbeing is promoted and clear mechanisms are in place develops strong relationships with our people: Health, safety and wellbeing Workplace relations Our Hubs Strategy and offshoring

ANZ covers A-to-Z of training While many international and local banks offer training programmes that can fast-track candidates to elevated positions within the company, few of them spell out that the real objective is to identify and train future country chief executives. ANZ, with its 175 years of history, has a training programme that includes two years' structured learning and job rotations. Participants are moved around the region and placed in key development roles to ensure their suitability for senior leadership. 'Generalist bankers have the benefit of a centrally managed career, with the long-term intention being to prepare individuals for future country chief executive roles at the bank,' says Anouk de Blieck, ANZ's general manager of human resources for Asia Pacific, Europe and America. 'Success will be partly measured through retention and progress towards the end goal of readiness to take up a country chief executive role in about 15 years' time.' However, before rushing to send out an application, some serious soul searching is required to reflect on whether one is suited to the demands of the job and its implications on one's lifestyle. The roles may be in any of the 32 countries in which ANZ currently operates and participants are expected to remain globally mobile for at least 15 years, or until their first country chief executive posting. Overseas opportunities are an important part of the work experience where a large proportion is gleaned via moving across borders and sharing experiences. Generalist banker Mary Man, who is on the programme, has spent considerable time in Singapore, Malaysia and New Zealand. She advises applicants to make sure they enjoy change. 'Because of the nature of the programme, candidates do not stay in the same place or job for long. If you are looking for stability, you may want to think twice before applying. But if you are looking for challenges and lots of learning opportunities, this will be a perfect programme for you,' she says. Candidates must also be able to hurdle cultural challenges, as they need to work with people from numerous countries. The bank has about 48,000 employees and serves around eight million customers globally. 'Adjusting to new cultures probably has been the hardest part so far,' says Man. 'The best way to overcome this is to keep an open mind and have an adventurous heart.' Apart from a sense of adventure and cultural agility, applicants should be broad thinkers and have strong emotional intelligence as well as a high IQ, says De Blieck. They will have to conform to the bank's values of integrity, collaboration, accountability, respect and excellence, she adds. ANZ, headquartered in Melbourne, prefers applicants with two to five years' work experience, a university degree and a commitment to general banking. The 15 accepted trainees will then start their four six-month rotations in February, joining 26 others already undertaking training at one of the six regional centres, including Hong Kong. Training covers institutional banking, risk management, operations and either retail or commercial banking. 'We guarantee one international placement in the first two years, and after that, we expect [the applicant] will move every two to three years to different countries,' De Blieck says, adding that the placement manager uses performance benchmarks. Every rotation includes a week-long leadership forum hosted in Melbourne and run by the Melbourne Business School. This is followed by the ANZ Leadership Pathway, whose design factors in each step in the leadership ladder that participants will take. To guide them, generalist bankers have access to ANZ leaders and mentors and professional and personal development opportunities throughout their managed career. Source: South China Morning Post www.scmp.com/article/978484/anz-covers-z-training 2/3

ANZ My Voice employee survey Respecting and valuing every voice is one of our core values and essential to the growth and success of our business. We believe that motivated, engaged and knowledgeable employees will provide the best service for our customers and contribute to the long term success of our company. We listen and act on employee feedback and constantly find new ways to improve our culture and environment so that ANZ is a truly great place to work.

2013 survey results Employee Engagement

This assessment defines the extent to which employees are motivated to contribute to an organisations success. An engaged employee is satisfied, intends to stay, has pride in the organisation and is willing to act as an advocate for the organisation.

72%

Performance Excellence Index

This assessment has consistently been shown to predict business performance. Survey items include commitment to customer service, product quality, employee involvement, training and teamwork.

78% 72% 77%

Behaviour Change Index

This assessment measures perceptions of action taken to address employee feedback and its impact on engagement.

Participation

Leadership Our governance structure provides oversight from the Board down of risks and opportunities arising from our activities. Our business is exposed to a range of key interrelated risks including market, credit, operational, compliance and reputation risks. The Risk Committee oversees the management of new and emerging risks, including environmental and reputational risks. It also approves risk appetite, and carries out an oversight role with respect to ANZs risk management strategies and compliance. Our Risk Appetite Framework underpins fundamental aims in relation to strong capitalisation, a robust balance sheet and sound earnings. The Governance Committee reviews and approves governance policies and principles. It also reviews and approves our proposed Corporate Sustainability objectives annually and reviews our progress in achieving them twice a year. In addition, it has responsibility for monitoring the effectiveness of our diversity policy as it relates to the Board and approving objectives for achieving gender diversity on the Board. The Audit Committee reviews financial reporting principles and policies, controls and procedures and the effectiveness of the related internal control and risk management framework. The Human Resources Committee has formal oversight of ANZs policies and approaches with respect to diversity and health and safety, and also monitors employee engagement and culture.

eFinancial Careers Shree Ann Mathavan (AM) interviews ANZ Singapore CEO Vishnu Shahaney (VS) AM: How did you get to the CEO role? Was it a conscious decision to move across different banking sectors? VS: As with all things in life it is with a lot of planning, hard work but also luck. In the early days of my career, it was the responsibility of the HR teams to manage your career. It was therefore planned in a way that I was able to rotate between departments and move between various geographies, and I thoroughly enjoyed the experience. What it developed in me was a constant desire to learn new skills, to meet people and interact with customers, to adapt very quickly to new environments, and then to take my own career into my own hands. I knew that to be a true commercial banker I had to have knowledge across the various divisions of the bank, and I was extremely fortunate that I was able to do that. AM: Many bankers switch employers during their careers, what made you stay on for 30 years? VS: I am extremely proud of that. While it is no doubt the same organisation, it has changed substantially over the years in terms of ownership, focus, culture and management. In fact one could argue that its harder going through change of this magnitude within the firm than moving to a new organisation. A simple reason for this is that as a long-serving employee, you are well known to your employer for both your strengths and weaknesses and there are perceptions that to create change you need to inject fresh blood. I have always thrived on change. AM: As a boss, what is your philosophy on staff retention? VS: I am a strong believer in people and always treat them with respect. Treat people the way you expect to be treated, consistently demonstrate these values and the task gets easier. You must also spend a lot of time in the recruitment phase to ensure you get the right fit I believe that is as important as retention. Ensure that you continue to invest in the team, understand what people really want, communicate extensively, listen effectively, coach and mentor talent, influence organisational change in frameworks where appropriate, and importantly, push the teams to deliver their potential. AM: Whats a typical day like for you as CEO of ANZ Singapore? VS: On a typical day I am at my desk at 8am and get home after dinner most days of the week. A lot of time during the day is spent with staff and our valued customers. Being a growing organisation, the bias is more on execution of strategy than strategy formulation itself, so I see my role as leading from the front. While the days seem long on paper, the evenings are generally spent with customers at various events, and being with them is the most exciting part of the day.

Promoting responsible behaviour We have a suite of policies specifying expectations of all our employees regarding behaviour, internally and externally. They include: Anti Bribery and Anti Corruption, Bullying and Harassment, Information Security, Anti-Money Laundering and Whistleblowing. All policies are regularly reviewed to ensure they reflect any changes in legislative requirements. In 2013 we carried out two investigations into allegations of bribery, corruption and improper payments. These allegations were substantiated, resulting in the dismissal of four people concerned. All our employees and contractors are required to undertake training to ensure awareness and understanding of obligations in a range of areas such as fraud, bribery and corruption, money laundering and sanctions in order to prevent breaches. Everyone must refresh their knowledge of specific courses within the suite, annually, or every two or three years, depending on the subject. Failure to do this can lead to disciplinary action and/or remuneration consequences, in serious cases it can lead to termination of employment. All course elements have been translated into Bahasa and Traditional Chinese and are available as CDROMs for remote areas or locations with low bandwidth. ANZ, Macquarie rapped in Singapore rate probe ANZ and Macquarie have been implicated in an interest rate rigging scandal in Singapore, forcing each of them to set aside an extra $S100 million to $S300 million in reserves. Singapores monetary authority censured 20 banks from aroun d the world banks for trying to rig benchmark interest rates and ordered them to set aside as much as $S12 billion at zero interest pending steps to improve internal controls. On Friday the Monetary Authority of Singapore alleged 133 traders tried to manipulate the Singapore interbank offered rate (SIBOR), swap offered rates (SOR) and currency benchmarks. A spokesman for ANZ said the bank had identified behaviour from certain employees that was inappropriate but no one had been dismissed. Whilst the MAS Review produced no conclusive finding that SIBOR, SOR and 10/29/13 ANZ, Macquarie rapped in Singapore rate probe FX Benchmarks were successfully manipulated, they found the conduct of a number of traders at banks lacked professional ethics, the spokesman said. No-one has been dismissed, however appropriate disciplinary action has been taken with a small number of staff. In response to what the MAS judged were inadequate risk procedures, the 20 banks will required to set aside additional statutory reserves with the central bank. Both Macquarie and ANZ were part of a group of banks identified by the MAS that will have set aside between $S100 million and $S300 million with the central bank. The document said Macquarie was not a contributing bank to the setting of benchmark interest rates, which are administered by the Association of Banks in Singapore. ANZ said the requirement would not have a material impact on its Singapore operations, and it had overhauled its rate setting processes and lifted training standards. Macquarie declined to comment. Source: www.businessday.com.au/business/banking-and-finance/anz-macquarie-rapped-in-singapore-rate-probe20130615-2oaq0.html 1/2 (downloaded 12 December 2013)

Whistleblower policy The ANZ Whistleblower Protection Policy (WPP) provides a mechanism for ANZ employees and contractors to voice serious concerns or escalate serious matters, on a confidential basis, without fear of reprisal, dismissal or discriminatory treatment within the bank. Within each business, Whistleblower Champions provide employees with information about how the policy operates, where to find more information, and who to contact should they need to make a serious complaint. Employees wishing to raise a serious complaint through the WPP process may raise their matter either internally or externally. If they raise their concern internally, a Whistleblower Protection Officer assesses whether the matter should be referred to a Whistleblower Investigations Officer (WIO). If so, on completion of the investigation, the WIO recommends to the Whistleblower Protection Officer the most appropriate course of action. Alternatively, employees may make a disclosure externally, through ANZs Whistleblower hotline facility. This second option is managed at arms length by Deloitte, and provides a more private option should an employee not feel comfortable making a disclosure internally. In 2013, reports under our Whistleblower Protection Policy increased slightly due to improved data capture and improved awareness of the policy and reporting processes. The majority of reports did not uncover any significant issues. In the small number of cases where our policies were breached we took appropriate action including dismissal and in some instances referral to police. WHISTLEBLOWER DISCLOSURES 2013 Total number of disclosures 70 Disclosures carried over for further investigation 5

External accreditation and benchmarking at ANZ

Innovation and creativity

ANZ looks to mobile to leapfrog competitors ANZ chief information officer Anne Weatherston is hoping the banks new mobile platform will help it to leapfrog not copy its major competitors. Recently returned from a trip escorting the ANZ board to Silicon Valley, Weatherston today told an FST Media event the new platform was months away. She added that ANZs transaction banking capability in Asia was also helping it differentiate from competitors. In a speech discussing how banks can compete in a digital world, Weatherston made the case that the bank needed to delight and excite its customers. Banks will need to operate much more like an Amazon. There can be no distinction between assisted and unassisted channels. Indeed in the future there will be no channels, there will simply be customer touchpoints. ANZ is part way through a $1.5 billion IT transformation program. Weatherston said the banks business platforms and systems were designed for a very different bank, not one that operated in 32 countries. So our challenge therefore has been to create a new bank in the last five years, and also to build up the technology where there has previously been none. Weatherston said the bank was progressing well with its BYOD program, which included a collaboration platform that was critical to ANZs super regional strategy. She said the banks private cloud deployment was also well advanced. This is allowing us to add scale quickly and absorb cost. During the visit to Silicon Valley, Weatherston and the board met with a delegation from US bank USAA, which has 9.6 million customers and only one branch. USAA assistant vice president Eric Smith told the conference more than 50 percent of customer interactions it had were now through mobile devices. Its something we hadnt planned on seeing until probably 2015, Smith said. USAA has launched a virtual assistant called Nina that allows customers to ask their phone for transaction information. We thought what if we bought the speech capabilities of IVR to the mobile device? Smith said the bank took some of the applications that often get buried because of the number of screens involved and put voice capability on top of it. For example, he said, customers can ask: How much money did I spend on petrol last month? Nina also has the ability to actually do transactions for you. You can say things like: Nina, I want to pay my MasterCard bill on Friday for $300 out of my private chequing account. Source: http://www.itnews.com.au/News/317880,anz-rolls-out-new-customer-facing-tech.aspx

ANZ developing voice recognition for mobile banking ANZ Bank plans to use voice recognition technology when authorising large cash transfers to external accounts via mobile banking, a move it says will enhance security. Under the plan, which is still being tested, mobile banking customers would no longer be prevented from paying anyone $1000 or more through the banks smart phone application. Instead, they would be able to authorise higher-value payments by speaking into their phone, after having already provided a password. The banks computer system would then compare their voice to a digital voiceprint stored in a database. It is the latest sign banks are using biometric information in an attempt to identify customers more easily and cheaply. Lenders have also looked at using fingerprint testing to replace personal identification numbers or PINs, or attaching retina-scanners to automatic teller machines. Source: www.theage.com.au/business/banking-and-finance/anz-developing-voice-recognition-for-mobilebanking-20131127-2ya5d.html (downloaded 27 November 2013)