1. Growing International Services, Trade and Investment Wayne Stevenson Group General Manager Strategy, ANZ

2. ANZ in Asia Pacific ANZ has a long-standing substantial presence in the region Our network puts us among the top 5 banks in Asia Our Super-Regional strategy is based around priority markets and an expanded presence: Top 4 bank in Indonesia Largest foreign bank franchise in the Greater Mekong Some of Australia’s largest investments in Greater China, Indonesia, Malaysia, Vietnam Leading bank in the Pacific

3. Several key changes are occurring Pre Global Financial CrisisPost Global Financial Crisis High growth Unsustainable credit growth De-regulation Plentiful inexpensive capital Centre of economic gravity – Developed economies Multi speed growth Deleveraging, lower credit growth Re-regulation Capital and funding scarcer, more expensive Economic power shift – Developing economies

4. Australia’s economic and trade engagement with Asia – the opportunity Australia’s economic and strategic interests are tied to Asia Pacific It is in our interests to ensure we are part of the evolving economic architecture Asia’s economies are stronger and better placed to become even more important to Australia’s future Trade between Australia, New Zealand and Asia has doubled over the past five years to $300 billion and intra Asia trade is now over $4 trillion Australia is increasingly seen as a safe and attractive place to invest with over $60 billion in direct foreign investment

5. Australia’s economic and trade engagement with Asia – the opportunity (ctd) Our customers are increasingly focused on Asia – 50% of our domestic Corporate and Institutional clients depend on Asia for more than 25% of their business and over 80% have some connection with the region Urbanisation will increase demand for services and accelerate transformation from manufacturing to services led economies Business services exports from India and China have grown by 10% each year for the last decade Over $13 trillion will be spent on infrastructure across Asia over the next 10 years

6. Addressing Barriers in Financial Services While opportunities exist there are barriers which restrict expansion: Equity limits on investments in local banks Single presence policies Two Bank rule Transparency disciplines Limits on numbers of branches and ATMs Restrictions on entry of temporary staff

7. Conclusion For an advanced, predominantly services based economy such as Australia, delivering outcomes on services as part of Australia’s trade negotiations is crucial Potential to significantly expand and diversify Australia’s export base We need agreements which ensure foreign service providers are treated no less favourably than their local counterparts To make the most of this opportunity we need to Foster industries which are regionally relevant and competitive Be innovative and look for new ways of doing business and thinking about our relationship with Asia