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Preliminary Final Report

Document date:  Thu 26 Oct 2000
Published:  Thu 26 Oct 2000 11:51:24
Document No:  168995
Document part:  L
Market Flag:  Y
Classification:  Preliminary Final Report , Dividend Record Date , Dividend Pay Date , Dividend Rate

AUSTRALIA & NEW ZEALAND BANKING GROUP LI      2000-10-26  ASX-SIGNAL-G

HOMEX - Melbourne                                                     

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CHIEF FINANCIAL OFFICER'S REVIEW (CONTINUED)

ECOMMERCE

PERSONAL ECOMMERCE

ANZ has built a leading presence in the online financial services
market for consumers and small business.

As at 30 September 2000 ANZ had in excess of 360,000 registered users
in Australia and 60,000 users in New Zealand. ANZ's customer uptake
of internet banking has also been the highest of any bank as shown
below. With the launch of the "Internet Banking Blitz" in ANZ
branches and the call centre, ANZ's month-on-month growth rate in
September was also the highest of any bank.

Internet banking customers are very active users of the service.
Active usage is very high relative to phone banking and 88% of
customers are either satisfied or very satisfied with the service.
More than 35% of all ANZ BPAY transactions are done over the
internet, and we are seeing similarly strong growth in all value
transactions.

ANZ has continued to add new market leading functionality. For
instance, ANZ was the first bank to offer "Pay Anyone" functionality,
allowing customers to transfer money to any Australian bank account.

In August we launched myANZ, a customised homepage which is unique in
the market. This allows customers to view their account details and
their share portfolio in one place, as well as providing personalised
information such as news and weather. By 30 September we had exceeded
our early forecasts with over 25,000 registrations. Going forward we
will continue to add new features to differentiate our offer.

We have also built a strong sales capability, with the widest range
of online applications of any bank. Sales are building, with over 7%
of all ANZ credit card applications received over the net.

In the wider eCommerce space, ANZ's site ranking increased
dramatically. According to A C Nielsen, we were in the top 30 of all
sites visited by Australian internet users. This ranking includes
global sites such as Yahoo! and Amazon.com. At the beginning of the
year we were only in the top 100 sites.

ANZ has two main equity alliances: with E*Trade Australia for online
trading and MultiEmedia for the enablement of small business
customers.

The ANZ alliance with E*Trade Australia continues to perform very
well. ANZ customers represent more than 50% of all new E*Trade
registrations. Their trading activity has helped strengthen E*Trade's
position as one of the two dominant on-line brokers in Australia. On
30 September, ANZ received an additional 8.4% equity from E*Trade in
line with our alliance agreement.

anz.com worked closely with MultiEmedia.com over the past seven
months to develop ANZ BizSite. To allow ANZ to further develop the
relationship, ANZ and MultiEmedia.com have announced a strategic
alliance, which will see ANZ take a 15% stake in MultiEmedia.com with
the option to expand the stake during the three year term of the
alliance. As part of the alliance, ANZ committed to market ANZ
BizSite to the ANZ's SME customer base, and will have exclusive
access to MultiEmedia's technology within the Australian and New
Zealand financial services sector.

CORPORATE ECOMMERCE

ANZ is a leading provider of financial services in the business
eCommerce marketplace, due to a strong and comprehensive set of
solutions. For instance, ANZ OnLine, our PC-based electronic banking
service for companies, has over 15,000 installed base stations with
over 60,000 users, and processes over four million payments per
month. Our solutions capability is being rapidly enhanced across a
broad range of services, including - online financial transaction
systems, secure access facilities, trust and authentication services,
treasury products, and e-procurement.

With business-to-business (B2B) eCommerce forecast to grow to $200
billion in Australia by 2006, ANZ is well placed to maintain and
strengthen its market position via the following three elements:

1) WEB ENABLING EXISTING PRODUCTS

By Internet enabling existing products, ANZ's objective is to create
a rich corporate banking portal that improves customer financial
decision-making and transacting. Offerings include:

* FX Online, which provides web-based real-time pricing and execution
  of foreign exchange spot, forward, extension and non-deliverable
  transactions 

* ANZ Connect, which provides overseas banks with secure monitoring
  and equity facilities against their AUD (vostro) accounts

* New Issues Centre providing customers and staff with interactive
  access to ANZ's bond issues data

In addition, ANZ has partnered with SecureNet to provide a secure
access and authentication system (SAAS) which gives customers a
single point of access to ANZ online services via smart cart based
digital certificates and a single mechanism for managing customer
employee access privileges.

2) CREATING A NEW RANGE OF E-PRODUCTS

ANZ's strategy is to build the most innovative range of financial
e-products, including payment facilities and authentication services,
to enable and enhance customer online trading. Initiatives include:

* ANZ's Internet-based payments gateway, ANZ eGate is utilised by
customers involved in industries such as subscription services,
e-tailing, wireless applications, and freeway operation and toll
collection

* 2.3% equity investment in and Board membership of Identrus, the
world's leading provider of authentication and trust services for
global B2B internet commerce - a strategic move that will underpin
ANZ's authentication and transaction assurance capabilities 

* Selection of Baltimore Technologies to provide ANZ with digital
certificate technology
 
3) TURNKEY TRADING SOLUTIONS

ANZ is developing turnkey online trading solutions for its customers
with complementary partners where integration of financial services
and ANZ's distribution capability add value to the overall
proposition. Among the trading solutions and partnerships developed
to date, ANZ has:

* Established an indirect procurement service (anzebiz.com) in
partnership with MRO.com, to provide an online marketplace delivering
secure purchasing and lower processing costs for buyers and
suppliers. In addition, we have in principle agreement with
corProcure to link anzebiz.com with corProcure's e-marketplace
extending the reach of both services and the benefits enjoyed by
customers of both market places

* Agreed in principle to form a new Trade Services transaction
processing joint venture with AMS, Bank of Montreal and Barclays PLC.
The new company will allow the partners as well as other banks around
the world to utilise a new business model and internet based
technology to initiate and process trade services transactions. This
will create new benchmarks for processing efficiency

* Launched eauto, Esanda's online automotive and trading service,
which has more than 700 new car dealer franchises and over 19,000
used cars online

E.ASIA

In July ANZ and Overseas-Chinese Banking Corporation (OCBC) announced
an innovative e-commerce joint venture to create Asia's leading
internet bank with a regional network. The regional internet bank
will target the 40 million 'wired affluent' consumers that are
expected in Asia by 2005. The business model has been developed after
extensive study of existing pure internet banks in North America and
the United Kingdom.

The ANZ-OCBC joint venture will be branded separately to reflect the
unique proposition it will offer customers and is expected to be
earnings positive by 2003 through a combination of regional growth,
significantly reduced customer acquisition costs and scalable
technology. The joint venture will also make selective strategic
equity investments in a range of partner companies involved in
e-financial services, on-line content provision and other
internet-based services.

ANZ and OCBC Bank are planning to invest a total of US$100 million
($190 million) over three years, including investments in strategic
partner companies and start up development costs.

ECOMMERCE RESULTS                       FULL YEAR SEPTEMBER 2000 
                                     TOTAL     TOTAL    PROFIT (LOSS) 
                                     INCOME   EXPENSES  BEFORE TAX 
                                       $M       $M          $M 

Personal Financial Services            27       48         (21) 
Corporate Financial Services           36       41          (5) 
International                           -        7          (7)
                                       63       96         (33) 


A full copy of this announcement, including graph, is available for 
purchase from ASX Customer Service on 1 300 300 279. Charges apply.



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