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Preliminary Final Report

Document date:  Thu 24 Oct 2002
Published:  Thu 24 Oct 2002 10:00:27
Document No:  196680
Document part:  B
Market Flag:  Y
Classification:  Preliminary Final Report , Periodic Reports - Other , Dividend Record Date , Dividend Pay Date , Dividend Rate

AUSTRALIA AND NEW ZEALAND BANKING GROUP       2002-10-24  ASX-SIGNAL-G

HOMEX - Melbourne                                                     

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MEDIA RELEASE

ANZ DELIVERS CONSISTENT EARNINGS GROWTH

Australia and New Zealand Banking Group Limited (ANZ) today announced
a record operating profit after tax and excluding significant
transactions of $2,168 million for the year ended September 2002, up
16% on 2001 (FY2001 $1,870 million).

RESULTS SUMMARY (EXCLUDING SIGNIFICANT TRANSACTIONS)

* 2002 Full year operating profit after tax of $2,168 million, up 16%

* Earnings per ordinary share up 17% to $1.37 per share

* Return on ordinary shareholders' equity of 21.6% up from 20.2%

* Final dividend 46 cents. Full year dividend 85 cents, up 16%

* Cost income ratio 46% down from 48%

All comparisons with Full Year 2001. 

Earnings including significant transactions were $2,322 million up
24%. Significant transactions after tax involved: profit of $170
million on sale of businesses to ING Australia JV; recovery of $159
million on settlement of National Housing Bank litigation; and
special provision of $175 million to increase the general provision
for doubtful debts.

ANZ Chairman, Mr Charles Goode said: "This is a strong result that
highlights the consistency of ANZ's earnings growth, achieved at the
same time as lowering our risk profile. Management and staff are to
be congratulated."

"During the year we took steps to further strengthen corporate
governance. This included a new policy in respect to the relationship
with our auditor and having ANZ's internal audit function report to
the Chairman of the Board Audit Committee.

"We have better aligned the use of executive options with
shareholders' interests by linking the exercise price to movements in
the S&P/ASX 200 Banks Accumulation Index (excluding ANZ). This
ensures executives are rewarded only when ANZ out-performs its peers
and the reward is only the value of the out-performance.

"We have also shown the impact of expensing options issued to
employees and expect to formally change our accounting to reflect
this following necessary changes to accounting standards and taxation
laws," Mr Goode said.

Chief Executive Officer, Mr John McFarlane said: "Our specialisation
strategy and the consistency of our performance is creating a very
different bank. We have delivered on our promises."

"ANZ's specialised businesses continue to produce good results with
14 out of 16 increasing their profits during the year, the majority
with double-digit earnings growth.

"For five years we have been working towards creating a
high-performance organisation with sustainable growth at low risk.

"The challenge ahead is to build on our foundation of consistent
performance to take ANZ to a new level for shareholders, staff,
customers and the community. We will do this by reinventing the
business and creating an organization based to a far greater extent
on growing our revenue and customer base, at low-risk.

"This will require us to continue to improve productivity to allow us
to invest in future growth, while maintaining good earnings
performance.

"Our 2003 financial targets are unchanged. Looking further ahead
however the environment is likely to be more challenging with fewer
opportunities to achieve double-digit earnings growth in our
specialist businesses. However, by creating a very different bank we
have substantially improved our capacity to succeed and deliver
against market expectations over the next three years," Mr McFarlane
said.

For media enquiries, contact:       For analyst enquiries, contact:
Paul Edwards                        Philip Gentry
HEAD OF GROUP MEDIA RELATIONS       HEAD OF INVESTOR RELATIONS
Tel: 03 9273 6955 or 0409 655 550   Tel: 03 9273 4185 or 0411 125 474
Email: edwardp12@anz.com            Email: gentryp@anz.com

ANZ's 2002 Annual Results are available on www.anz.com

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