Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — UBS Conference June 2005
12 slides from Anz's conference presentation, Jul 5, 2005
Slide 1: Contact 05 Shareholder Update
% eovsoedh ae ey Tier 1 Capital Ratios* Domestic banks PLP OEE
Slide 2: Basel II implications for capital ratios
Based on current calculations, implies capital ratios would effectively double under Basel II Reality About right! (but bordering on conservative) Of only ~30 banks globally with AA category credit rating, 4 are in Australia (1) Source – Deutsche (2) RWA calculations were performed using the capital
Slide 3: Hybrids and measuring performance under IFRS
• Eligibility of hybrids (types, levels) • IFRS impacts (Collective Provisions, EMVONA, pensions) • Tier 1 capital measurement rules Non-innovative Hybrids Offshore position UK – allow up to 50% non-innovative hybrids US – allow up to 50% non-innovative hybrids Cost* 7.5% 8.4% 7.9% (or 7.6% if non-i
Slide 4: IFRS provisioning and performance measures
• ELP will be replaced by a charge for: • Movements in Specific Provisions (SP), • Plus/minus a charge for movements in the Collective Provisions • SP’s determined individually for large loans and on portfolio basis for ‘retail’ loans • SP’s reflect the loan carrying amount less PV of expected futur
Slide 5: Commercial property, rural and consumer lending watch areas
# Commercial property refers to lending to Real Estate Operators and Developers – ie excludes lending to consumers * For Corporate and Institutional Banking in Australia Why are we watching? Current position Rural Lending Impact of drought • Recent rains have helped significantly • Agri represents ~
Slide 6: Summary
After increasing up to April 05, consumer arrears began to decline again in May 05 Summary • Solid first half, no change in FY05 guidance • Changes to APRA capital requirements could have a substantial impact on Australian banks • Introduction of IFRS will add volatility to reported earnings, with n
Slide 7: Capital ratio and RWA growth; IFRS and Basel II implementation
Capital ratio RWA growth ACE mid point 4.75% 15% hybrids 6.09% 0% hybrids 7.00% 7% 0.33 % 0.43 % 0.49 % 8% 0.38 % 0.49 % 0.56 % 9% 0.43 % 0.55 % 0.63 % 10% 0.48 % 0.61 % 0.70 % 11% 0.52 % 0.67 % 0.77 % 12% 0.57 % 0.73 % 0.84 % 13% 0.62 % 0.79 % 0.91 % Options available for capital generation • Non i
Slide 8: IFRS provisioning components
• ELP will be replaced by a charge for: • Movements in Specific Provisions (SP), • Plus/minus a charge for movements in the Collective Provisions • SP’s determined individually for large loans and on portfolio basis for ‘retail’ loans • SP’s reflect the loan carrying amount less PV of expected futur
Slide 9: Slide 9
Slide 10: Interim dividend reflects a solid first half
“ The Interim Dividend of 51 cents reflects a solid first half ”
Slide 11: Total shareholder return was 15% in the past year
“ Total shareholder return was 15% in the past year”
Slide 12: Environmental citizenship and awareness
ANZ relationship manager Bruce Plasto (right) with WWF Australia CEO Greg Bourne, and friend. “companies can make a difference by encouraging environmental citizenship & awareness amongst their staff” There can be no assurance that actual outcomes will not differ materially from the forward-looking
Australia and New Zealand Banking Group — UBS Conference June 2005 on 6ix