Anz Group Holdings Limited · ASX:ANZ
Anz — H1 2023 Earnings Presentation
137 slides from Anz's earnings presentation, May 5, 2023
Slide 1: 2023 Half Year Results
2023 HALF YEAR RESULTS HALF YEAR ENDED 31 MARCH 2023 RESULTS PRESENTATION AND INVESTOR DISCUSSION PACK 5 MAY 2023 Approved for distribution by ANZ’s Continuous Disclosure Committee ANZ Group Holdings Limited ABN 16 659 510 791 9/833 Collins Street Docklands Victoria 3008 Australia
Slide 2: Disclaimer & Important Notice
ANZ 2023 Half Year Results DISCLAIMER & IMPORTANT NOTICE The material in this presentation is general background information about ANZ’s activities current as at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be and sh
Slide 3: Contents
ANZ 2023 Half Year Results Results Presentations 3 Chief Executive Officer (CEO) 3 Chief Financial Officer (CFO) 22 Investor Discussion Pack 40 Corporate Overview 41 CONTENTS Environment, Social & Governance (ESG) 49 Group Performance 57 Divisional Performance 76 Treasury 97 Risk Management 109 Hous
Slide 4: 2023 Half Year Results – CEO
2023 HALF YEAR RESULTS SHAYNE ELLIOTT CHIEF EXECUTIVE OFFICER
Slide 5: ANZ: The Bank We're Building
ANZ 2023 Half Year Results ANZ: THE BANK WE’RE BUILDING Giving our customers access to ‘We are the Bank for those in Australia & New Zealand who want to buy and own a home or start, run, and grow a small business and for those larger businesses trading and investing in Asia Pacific’ Propositions Pur
Slide 6: Performance Overview
ANZ 2023 Half Year Results PERFORMANCE OVERVIEW Returns Tangible Assets Capital Strength Risk Profile Return on Equity, % NTA / Share, $ APRA Level 2 CET1 Ratio1, % Internal Expected Loss2, bps 11.4 21.66 13.2 20 10.8 19 10.0 12.3 20.75 17 20.64 11.5 1H22 2H22 1H23 Mar 22 Sep 22 Mar 23 Mar 22 Sep 22
Slide 7: 1H23 Group Financial Results
ANZ 2023 Half Year Results 1H23 GROUP FINANCIAL RESULTS 1H23 vs 2H22 vs 1H22 Statutory profit, $ million 3,547 -1% 0% Continuing operations Cash Profit, $ million 3,821 +12% +23% Return on equity, % 11.4% +60bps +140bps Earnings per share - basic, cents 127.6 +7% +16% Dividend per share – fully fran
Slide 8: Four Priorities Established Years Ago
ANZ 2023 Half Year Results FOUR PRIORITIES ESTABLISHED 7 YEARS AGO 1. Creating a simpler, 2. Focusing on areas better balanced bank where we can win 3. Building a superior everyday 4. Driving a purpose and values led experience to compete in the digital age transformation 7
Slide 9: Divisional Performance – 1H23 vs 1H22 (pcp)
ANZ 2023 Half Year Results DIVISIONAL PERFORMANCE – 1H23 VS 1H22 (PCP) Cash continuing operations Aus. Retail Aus. Commercial2 Institutional New Zealand Total Group (1H23 vs 1H22) (NZD) Capital allocated1 ~30% ~10% ~40% ~20% Revenue +11% +30% +35% +14% +18% Expenses 0% +7% +4% -1% +4% Profit before
Slide 10: Australia Retail
ANZ 2023 Half Year Results AUSTRALIA RETAIL 1H23 vs 1H22 Customer Deposits, $b Net Loans and Advances, $b Housing portfolio LVR profile2 Origination LVR 301 Revenue growth 285 290 6 100% 6 6 80% 11% 147 150 156 60% 40% 44 20% 41 43 0% 1H21 1H22 1H23 Risk adj. margins1 14 16 28 <80% 80% >80% 284 295
Slide 11: Australia Retail – ANZ Plus
ANZ 2023 Half Year Results AUSTRALIA RETAIL – ANZ PLUS ANZ Plus customers and deposits, cumulative A more digital and efficient experience, Mar 23 Digitally verified1 Onboarding effort2 Customers, ‘000s Deposits, $b 90% -9x 72% 300 6 250 5 ANZ ANZ Plus ANZ ANZ Plus 200 4 Onboarding NPS score Custome
Slide 12: ANZ Plus Engagement and Operational Metrics
ANZ 2023 Half Year Results ANZ PLUS ENGAGEMENT AND OPERATIONAL METRICS More attractive, more engaging, more efficient, more secure How we measure success, Mar 23 (Growth Mar 23 vs Sep 22) Average balance per customer +51% +52 Onboarding NPS episode +16% % customers contributing to save +7% +46 Coach
Slide 13: Australia Commercial
ANZ 2023 Half Year Results AUSTRALIA COMMERCIAL 1H23 vs 1H22 Revenue contribution1, $b Self funded balance sheet, $b Well secured portfolio, ~25% contribution Exposure at Default, $b to Group revenue 2.56 Revenue growth1 113 2.34 30% 2.19 0.75 14% 8% 11% 0.74 86 14% 0.80 Risk adj. margins2 60 58 272
Slide 14: Institutional
ANZ 2023 Half Year Results INSTITUTIONAL 1H23 vs 1H22 Revenue2, $b Credit RWA, $b Lending risk adj. margins1,3, bps 3.05 164 172 175 250 150 Revenue growth 2.61 200 35% 2.33 47% 150 100 52% Mar 22 Sep 22 Mar 23 Mar 233 1H22 2H22 1H23 excl. Lending risk adj. margin 55% capital Risk adj. margins1 excl
Slide 15: Institutional – Payments & Currency Processing
ANZ 2023 Half Year Results INSTITUTIONAL – PAYMENTS & CURRENCY PROCESSING Payments, #m NPP1 Agency payments, #m Platform Cash Mgt Accounts2, Markets FX, #’000s Turnover volume Index 1H19 =100 +9% +31% +32% +14% 321 20 411 156 295 137 15 312 108 113 100 171 231 161 148 8 4 76 52 <1 1H19 1H20 1H21 1H2
Slide 16: New Zealand
ANZ 2023 Half Year Results NEW ZEALAND1 1H23 vs 1H22 (NZD) Customer Deposits, NZDb Net Loans and Advances, NZDb Market share and ranking3 Revenue growth #1 #1 129 #1 #2 125 128 14% 104 104 105 24 26 25 30.1% 34 38 42 24.8% Risk adj. margins2 21.8% 53bps 22 22 22 102 103 103 19.3% (to 6.16%) 48 44 41
Slide 17: The World Is Being Shaped by Major Trends
ANZ 2023 Half Year Results THE WORLD IS BEING SHAPED BY MAJOR TRENDS Major trends Challenges arising • Greater demands on government, more government debt • Heightened community expectations of business and government • Resilient corporate balance sheets • Government fiscal prioritisation • Changing
Slide 18: Economic Conditions – Excess Aggregate Demand
ANZ 2023 Half Year Results ECONOMIC CONDITIONS – “EXCESS AGGREGATE DEMAND” 12.5 Inflation Employment to population ratio 10.5 Capacity utilisation Household consumption per person 8.5 Job ads as a share of the labour force Terms of Trade 6.5 Business conditions Inflation expectations 4.5 Home lendin
Slide 19: Improving the Availability and Affordability of Homes
ANZ 2023 Half Year Results IMPROVING THE AVAILABILITY AND AFFORDABILITY OF HOMES AUSTRALIA >$4.4b Assemble – Homes for change End-to-end ‘build-to-rent’ BTR developer and operations manager Building “build-to-rent-to-own” and secure social and affordable funded and facilitated to “build-to-rent” apa
Slide 20: Continued Proactive Portfolio Rebalancing
ANZ 2023 Half Year Results CONTINUED PROACTIVE PORTFOLIO REBALANCING Capital allocation across ANZ divisions1 Run for performance Transform for long term differentiation & growth Institutional Australia Retail Australia Commercial New Zealand Retail & Commercial 1. Subset of total ANZ capital. Exclu
Slide 21: Group Strategic Achievements
ANZ 2023 Half Year Results GROUP STRATEGIC ACHIEVEMENTS Group Australia Retail & Australia Commercial 1. Suncorp acquisition on track 1. ANZ Plus reached 259k in customers & $6.1b in FUM1 2. NOHC structure approved by shareholders and in place 2. ANZ Plus Home Loan moved to Beta testing 3. Employee
Slide 22: Positioning for Long Term Success
ANZ 2023 Half Year Results POSITIONING FOR LONG TERM SUCCESS PREPARING INVESTING GROWING MAINTAINING INCREASING for a successful approval & further in the Commercial Banking risk disciplines & focus on productivity while integration of Suncorp differentiation of our Sustainable Finance continuing to
Slide 23: 2023 Half Year Results – CFO
2023 HALF YEAR RESULTS FARHAN FARUQUI CHIEF FINANCIAL OFFICER
Slide 24: Overview – Delivering Value Through Diversification
ANZ 2023 Half Year Results OVERVIEW – DELIVERING VALUE THROUGH DIVERSIFICATION Strong financial • All 4 businesses contributing to revenue growth Revenue contribution by division1, $b performance • Revenue uplift from volume and margin • Solid cost outcome, further productivity benefits 1.78 New Zea
Slide 25: 1H23 Financial Performance
ANZ 2023 Half Year Results 1H23 FINANCIAL PERFORMANCE Operating income, $m Operating expenses, $m Profit before provisions, $m +10% +4% +15% 10,528 4,791 4,788 4,997 5,531 8,948 9,599 4,811 4,157 +18% +4% +33% 1H22 2H22 1H23 1H22 2H22 1H23 1H22 2H22 1H23 Cash NPAT, $m Cash EPS, cents 135 cents adj.
Slide 26: Operating Income
ANZ 2023 Half Year Results OPERATING INCOME Total operating income, $m Income growth, 1H23 vs 2H22 394 10% 23% 13% 10,528 4% 555 1% -321 Aus. Retail Aus. Comm Institutional NZ (NZD) 301 9,599 Risk adjusted margins1,2, % 6.18 6.28 6.43 8.06 8.37 7.05 Aus. Retail Aus. Comm 2.78 2.94 6.30 6.47 6.16 2.4
Slide 27: Volumes
ANZ 2023 Half Year Results VOLUMES Net loans & advances, $b +4% +1% excluding 284.6 290.3 300.6 +1% Asset Finance Total Group reductions 0% 188.2 207.2 208.3 3% 0% 125.2 128.6 128.4 57.6 59.7 59.9 Mar 23 vs Sep 22 Australia Retail Australia Commercial Institutional New Zealand (NZD) Mar 22 Sep 22 Ma
Slide 28: 1H23 Net Interest Margin – Customer Deposits
ANZ 2023 Half Year Results 1H23 NET INTEREST MARGIN (NIM) – CUSTOMER DEPOSITS Customer deposit portfolio contribution to 1H23 NIM (excl. replicating balances)1, $b 571 Group NIM movement contributions in 1H23 2 535 Term Deposits AUD +2bps Non- Term AUD 37% 44% Deposits Total Group +20bps Business At
Slide 29: 1H23 Net Interest Margin – Movement
ANZ 2023 Half Year Results 1H23 NET INTEREST MARGIN (NIM) – MOVEMENT Group NIM, bps 7 183 20 -2 175 -3 -6 168 -9 Higher funding costs relating to revenue recorded in Other Aus housing -6 Aus Retail +6 Operating NZ housing -2 NZ Retail +2 Income. Overall Other -1 Corp/Inst. +12 accretive ROE 2H22 Ass
Slide 30: Net Interest Margin & Risk Adjusted Margin
ANZ 2023 Half Year Results NET INTEREST MARGIN (NIM) & RISK ADJUSTED MARGIN Indexed data, FY16 = 100 115 Risk Adjusted Margin excl. Markets1 110 1H23: 65bps above FY16, mainly reflects the 105 benefits from ongoing portfolio de-risking and risk management 100 discipline 95 Group NIM excl. 90 Markets
Slide 31: Markets Income
ANZ 2023 Half Year Results MARKETS INCOME Total Markets income, $m Customer franchise income, $m 1,149 36 757 1,013 26 112 678 356 812 590 103 755 309 575 80 32 53 53 49 223 206 30 158 111 195 181 757 678 590 575 > 407 381 324 331 -1 -26 1H22 2H22 1H23 Half Year avg 1H22 2H22 1H23 Half Year avg (1H1
Slide 32: Markets Franchise Income by Geography
ANZ 2023 Half Year Results MARKETS FRANCHISE INCOME BY GEOGRAPHY ~60% of 1H23 Total Markets Franchise income, $m International, $m Markets 901 891 Franchise 757 526 income 700 604 592 617 590 575 608 431 431 554 478 315 312 323 249 275 282 223 235 178 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21 1H22 2H2
Slide 33: Operating Expenses
ANZ 2023 Half Year Results OPERATING EXPENSES Total operating expenses, $m 3.7% 131 231 91 4,997 4,906 FY23 expense 4,788 30 4,818 -274 expectations It remains likely that total expenses will increase by circa 5% in FY23 (off FY22 base of $9.17b) on a constant currency basis 1.8% Adjusting for FX mo
Slide 34: Provision Charge
ANZ 2023 Half Year Results PROVISION CHARGE Composition of Individual Provision (IP) charge / (release), $m Collective provision (CP) movement, $m 626 1H23 CP charge 163 80 4,040 395 100 807 187 24 500 69 3,853 87 -17 375 -8 -30 266 247 168 201 175 103 93 80 54 51 36 -274 -280 -268 -214 -227 -267 -3
Slide 35: Provision Balance
ANZ 2023 Half Year Results PROVISION BALANCE Collective Provision balance, $m Expected Credit Loss (ECL) scenarios, $m 7,314 4,040 3,853 Additional 817 Australia peak impact of economic scenarios1 727 overlays 3,272 Base case Downside Severe Unemployment 4.4% 6.9% 10.5% Scenario 1,407 Peak next 2 ye
Slide 36: Credit Quality
ANZ 2023 Half Year Results CREDIT QUALITY Individual Provision Charge / Avg. Gross Loans & Advances1, % Substantially reshaped our portfolio since 2016 0.35 • Sold or exited >30 businesses 0.30 • Grown in “lower loss” portfolios: 0.25 • Sovereign • Mortgage 0.20 • Bank • Investment grade corporates
Slide 37: Capital
ANZ 2023 Half Year Results CAPITAL APRA Level 2 CET1 ratio, % 0.88 -0.28 1.00 13.18 -0.47 -0.06 -0.18 12.29 0.06 12.10 -1.14 Sep 22 Capital Cash Profit Underlying FY22 final NOHC Other Mar 23 Suncorp Bank NOHC Mar 23 Reform1 RWA dividend surplus acq/n surplus pro forma usage capital capital 1. Capit
Slide 38: Capital
ANZ 2023 Half Year Results CAPITAL APRA CET1 capital ratio – Basel III Capital Reforms Unquestionably strong ANZ position Equivalent to 5.8% reduction in RWA 7.6% reduction in RWA +100bps 16bps Op RWA1 At reporting date 11.25% +75bps Regulatory min. 11.0% 71bps Credit RWA: Institutional 75bps Prior
Slide 39: Capital, Liquidity & Funding
ANZ 2023 Half Year Results CAPITAL, LIQUIDITY & FUNDING Capital, APRA CET1 ratio, Mar 23 Funding Liquidity Wholesale Deposit NSFR HQLA LCR funding diversification 13.2% ~12.1% ~12.3% $26b 100% 119% $285b 128% Aus. 100% Retail 24% 100% Aus. Comm. 17% Cash 182 NZ / Pacific 16% Instit. excluding 23% Ma
Slide 40: CFO Focus to Support Group Priorities
ANZ 2023 Half Year Results CFO FOCUS TO SUPPORT GROUP PRIORITIES Indexed data, FY16 = 100 + Net interest margin & Risk adjusted margin Individual Provision Charge / Avg. GLA3, % Manage capital Indexed data, FY16 = 100 0.35 allocation dynamically 115 0.30 110 0.25 Continue to relentlessly 105 pursue
Slide 41: Investor Discussion Pack
2023 HALF YEAR RESULTS INVESTOR DISCUSSION PACK Note on reconciliation between the Consolidated Financial Report Dividend Announcement and Appendix 4E, Results Presentation and the Results Presentation & Investor Discussion Pack: During the September 2022 half, the Group revised its treatment of ong
Slide 42: Corporate Overview
2023 HALF YEAR RESULTS INVESTOR DISCUSSION PACK CORPORATE OVERVIEW
Slide 43: Our Purpose & Strategy
ANZ 2023 Half Year Results OUR PURPOSE & STRATEGY Our purpose is to shape a world where people and communities thrive It explains ‘why’ we exist and drives everything we do at ANZ, including the choices we make each day about those we serve and how we operate. We bring our purpose to life through ou
Slide 44: The Bank We're Building
ANZ 2023 Half Year Results THE BANK WE’RE BUILDING Eight goals aligned with our business model 1. We support a higher share of customers in our target segments Value Creation Model 2. Our customers have greater financial wellbeing over their lifetime, and Better access to capital Better customer imp
Slide 45: ANZ Plus – Tailored to Customers' Needs
ANZ 2023 Half Year Results ANZ PLUS – TAILORED TO CUSTOMERS’ NEEDS Delivering better propositions… …with targeted features customers love Transact & Save features already driving ANZ Plus customer engagement: customer propositions Know where my money is going: Expense Insights & Prediction | see reg
Slide 46: ANZ Plus Home Loans Beta Launched in December
ANZ 2023 Half Year Results ANZ PLUS HOME LOANS BETA LAUNCHED IN DECEMBER Leveraging ~70% reusable business services with a focus on process automation ANZPlus reusable cloud-based technology Enabling focused build on the Home Loans Home Loans MVP to stack is delivering proposition and beta release l
Slide 47: ANZ Plus – Drive Customer Growth, Engagement and Financial Health
ANZ 2023 Half Year Results ANZ PLUS - MORE EFFICIENTLY DRIVE HIGHER CUSTOMER GROWTH, GREATER ENGAGEMENT AND BETTER FINANCIAL HEALTH How we measure success More Greater propensity to Brand consideration # New customers attractive join % Main Bank customers Relative app store rating # ANZ customers mi
Slide 48: Building | Investing | Partnering
ANZ 2023 Half Year Results BUILDING | INVESTING | PARTNERING BUSINESSES INNOVATING OWNERS FINANCIAL SERVICES AI-based business intelligence Global financial infrastructure platform for SMBs Open Banking As ANZ’s external innovation and Business loan marketplace infrastructure layer venture capital p
Slide 49: Investing in Sustainability
ANZ 2023 Half Year Results INVESTING IN SUSTAINABILITY Where we support our customers Sustainable Bond League Tables ANZ Sustainable Finance deals3 Aus. Sustainable Bond Cumulative League Table1 Supporting sustainability in Bookrunner Number of deals Number of deals Volume No. of deals Market share
Slide 50: Environment, Social & Governance (ESG)
2023 HALF YEAR RESULTS INVESTOR DISCUSSION PACK ENVIRONMENT, SOCIAL & GOVERNANCE (ESG)
Slide 51: Accelerating Our Approach for the Transition to Net Zero
ANZ 2023 Half Year Results ACCELERATING OUR APPROACH FOR THE TRANSITION TO NET ZERO New social and environmental Progress against our sectoral Our Climate Change sustainability target decarbonisation targets Commitment • We were the first Australian bank to join the Net- • Our pathways set our strat
Slide 52: Finance to Back Customers on the Right Path
ANZ 2023 Half Year Results FINANCE TO BACK CUSTOMERS ON THE RIGHT PATH Targets set for six carbon intensive sectors in line with our Net-Zero Banking Alliance commitments (as at 30 September 2022) Power generation Commercial Real Estate – Office Buildings Commercial Real Estate – Shopping Centres GH
Slide 53: Finance to Back Customers on the Right Path
ANZ 2023 Half Year Results FINANCE TO BACK CUSTOMERS ON THE RIGHT PATH Targets set for six carbon intensive sectors in line with our Net-Zero Banking Alliance commitments (as at 30 September 2022) Oil and Gas Aluminium Absolute Emissions (Mt CO2-e) GHG1 Intensity (tCO2-e/t aluminium) Cement Steel GH
Slide 54: Our Resources Portfolio
ANZ 2023 Half Year Results OUR RESOURCES PORTFOLIO Resources Portfolio, EAD1 $b Thermal Coal Mining, EAD1 $b 2.0 20.0 1.5 1.7 1.0 0.6 17.3 17.0 0.5 1.3 16.2 0.8 0.5 15.3 0.7 0.8 0.0 1.2 1.0 0.9 14.5 Sep Sep Sep Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar 2.9 0.4 14.0 0.7 15 16 17 18 19 19 20 20 21 21 22
Slide 55: Customer Engagement to Support Emissions Reductions
ANZ 2023 Half Year Results CUSTOMER ENGAGEMENT TO SUPPORT EMISSIONS REDUCTIONS 100 of our largest emitting business customers (progress at 30 September) 100 of our largest emitting business customers We have been discussing transition plans with 100 of our largest emitting business by transition pla
Slide 56: Snapshot of Half Year ESG Target Performance
ANZ 2023 Half Year Results SNAPSHOT OF HALF YEAR ESG TARGET PERFORMANCE ESG target Progress Relevant SDGs Environmental Sustainability Fund and facilitate at least AU$50 billion by 2025 towards sustainable Since October 2019, we have funded and facilitated AU$47.09 billion to solutions for our custo
Slide 57: Snapshot of Half Year ESG Target Performance (cont.)
ANZ 2023 Half Year Results SNAPSHOT OF HALF YEAR ESG TARGET PERFORMANCE (CONT.) ESG target Progress Relevant SDGs Housing Fund and facilitate AU$10 billion of investment by 2030 to deliver more Since October 2018, we have funded and facilitated over AU$4.4 billion affordable, accessible and sustaina
Slide 58: Group Performance
2023 HALF YEAR RESULTS INVESTOR DISCUSSION PACK GROUP PERFORMANCE
Slide 59: Shareholder Returns
ANZ 2023 Half Year Results SHAREHOLDER RETURNS Dividend Per Share (DPS), cents Share price, $ 28.5 28.2 160 22.8 22.9 17.2 146 142 2019 2020 2021 2022 1H23 Share price close (last trading day in September of the financial year) 80 Share price close (last trading day in March of the financial year) 7
Slide 60: Balance Sheet Composition
ANZ 2023 Half Year Results BALANCE SHEET COMPOSITION Exposure at default1, EOP $b Risk weighted assets, EOP $b Net loans & advances, EOP $b Customer deposits, EOP $b 1,193 455 690 649 672 620 1,152 438 2% 436 651 0% 611 1% 1,103 8% 0% 1% 2% 4% 1% 1% 7% 13% 17% 15% 8% 14% 17% 15% 12% 16% 18% 16% 12%
Slide 61: Net Loans and Advances
ANZ 2023 Half Year Results NET LOANS AND ADVANCES Australia Retail, $b Australia Commercial, $b New Zealand, NZDb Institutional, $b +4% 0% +1% 0% 301 60 60 207 208 285 290 58 125 129 128 6 2 1 6 6 1 188 26 25 41 41 24 18 20 20 34 1 2 1 284 295 278 145 149 101 102 136 100 39 39 39 19 21 19 Mar 22 Sep
Slide 62: Customer Deposits
ANZ 2023 Half Year Results CUSTOMER DEPOSITS Australia Retail, $b Australia Commercial, $b New Zealand, NZDb Institutional, $b +4% 0% +6% +1% 156 116 105 278 112 113 104 104 263 147 150 1 247 2 19 44 21 2 27 41 43 34 38 42 106 128 102 14 16 28 67 22 61 22 57 22 38 29 46 66 65 62 48 44 114 117 41 103
Slide 63: Customer Deposits – Retail & Commercial Long Term Trend
ANZ 2023 Half Year Results CUSTOMER DEPOSITS – RETAIL & COMMERCIAL LONG TERM TREND Australia Retail, $b Australia Commercial, $b New Zealand, NZDb 156 116 104 104 105 150 111 112 113 147 97 97 99 141 107 101 16% 92 134 135 19% 24% 89 28% 19% 88 123 28% 29% 23% 33% 37% 121 90 40% 117 27% 86 87 33% 25
Slide 64: Financial Performance
ANZ 2023 Half Year Results FINANCIAL PERFORMANCE $m 929 -209 -81 3,821 -220 3,402 2H22 NPAT Revenue Expenses Provisions Tax & NCI 1H23 NPAT Cash continuing +10% +4% +156% +16% +12% Performance excluding +11% +5% +156% +17% +13% large / notable items Large / notable items included customer remediatio
Slide 65: Total Operating Income
ANZ 2023 Half Year Results TOTAL OPERATING INCOME Total income, $b Net interest income, $b Other operating income, $b 10.5 8.5 2.0 0.2 0.2 0.1 9.6 7.8 1.8 1.8 0.0 8.9 0.3 1.8 0.1 0.1 7.1 1.6 0.1 0.2 0.1 1.7 1.5 1.6 0.4 0.3 1.4 0.9 3.4 2.1 1.9 2.8 2.6 1.8 1.6 1.0 1.4 1.0 1.6 1.8 1.2 1.6 1.0 3.3 2.7 2
Slide 66: Reported Group Net Interest Margin Trend
ANZ 2023 Half Year Results REPORTED GROUP NET INTEREST MARGIN TREND1 Group NIM, bps Outlook considerations 240 220 200 Tailwinds 180 • Higher capital & replicated 160 deposit earnings 140 • Potential for further rate tightening across geographies 120 100 80 Headwinds 60 • Lending & deposit 40 compet
Slide 67: Recent NIM Trajectory Not Uniform Across the Group
ANZ 2023 Half Year Results THE RECENT TRAJECTORY ON NIM IS NOT UNIFORM ACROSS THE GROUP Quarterly Net Interest Margin trends – Group ex Markets and Treasury Diversified portfolio of businesses and access to opportunities in overseas markets offers a degree of relative margin stability outside of Aus
Slide 68: Ongoing Margin Tailwinds from Capital and Replicated Portfolio
ANZ 2023 Half Year Results ONGOING MARGIN TAILWINDS FROM OUR CAPITAL AND REPLICATED PORTFOLIO Portfolio balance, $b Portfolio interest earning rates impact 3 Illustrative potential NII benefit 142 141 Prospective benefit4 from higher 134 3.8% Further benefits are interest earning rates dependent on
Slide 69: Interest Rate Sensitivity
ANZ 2023 Half Year Results INTEREST RATE SENSITIVITY Illustrative path & magnitude of movements Short term interest rate outlook – based on ANZ research forecasts1 Interest Rate Forecasts (%) Jun 23 Sep 23 Dec 23 Mar 24 Jun 24 Sep 24 Dec 24 RBA Cash Rate 3.85 4.10 4.10 4.10 4.10 4.10 3.85 NZ OCR 5.5
Slide 70: Other Operating Income
ANZ 2023 Half Year Results OTHER OPERATING INCOME Total other operating income (excluding Markets), $m Net fee & commission income (excluding Markets), $m 1,452 1,358 1,360 953 53 272 890 75 136 84 11 166 72 168 1,040 Includes Lower cards income & funds seasonality 199 48 213 management fees 66 165
Slide 71: Operating Expenses
ANZ 2023 Half Year Results OPERATING EXPENSES Total operating expenses, $m 3.7% 131 231 91 4,997 4,906 4,788 30 4,818 -274 +1.8% 2H22 FX 2H22 FX Adj. Inflation1 Digitisation2 Productivity & 1H23 before the Impacts of 1H23 regulatory impact of M&A M&A actvity investment activity & NOHC & NOHC3 1H23 p
Slide 72: Operating Expenses
ANZ 2023 Half Year Results OPERATING EXPENSES Investment Spend Composition, 1H23 Capitalised Software Balance1, $b Continued spend on ANZ Plus & Cloud, reduced spend on Regulatory & Compliance following the completion of some key initiatives 3.0 7% (2H22 6%) 2.5 29% (2H22 25%) 2.0 30% (2H22 40%) 1.5
Slide 73: Operating Expenses
ANZ 2023 Half Year Results OPERATING EXPENSES Total expenses1, $b Total expenses by category, $b Full time equivalent staff1,2,‘000s 5.0 5.0 39.7 39.2 39.8 4.8 4.8 4.8 4.8 1.1 1.0 1.1 0.6 0.5 0.6 0.9 0.9 0.9 0.1 10.3 10.3 10.8 0.7 0.6 0.6 0.0 0.1 0.8 0.8 0.8 1.3 1.3 0.3 6.9 6.8 6.8 1.3 0.3 0.4 6.3 6
Slide 74: Risk Adjusted Performance
ANZ 2023 Half Year Results RISK ADJUSTED PERFORMANCE Group1 Australia Retail Australia Commercial Institutional1 New Zealand, NZD Net interest income / average Credit Risk Weighted Assets (CRWA), % 8.06 6.28 8.37 6.47 5.05 6.30 6.16 6.43 7.05 2.78 6.16 5.98 6.18 5.64 5.63 5.19 4.64 5.51 5.65 2.94 4.
Slide 75: Risk Adjusted Return
ANZ 2023 Half Year Results RISK ADJUSTED RETURN Group Australia Retail Australia Commercial Institutional New Zealand, NZD Profit before provisions / average total Risk Weighted Assets (RWA), % 4.12 4.30 3.82 3.73 3.80 3.59 2.40 3.07 3.55 3.20 2.44 3.19 2.02 2.46 2.49 2.53 2.16 2.15 2.71 2.11 1.95 2
Slide 76: Large / Notable Items
ANZ 2023 Half Year Results LARGE / NOTABLE ITEMS Customer Remediation, $m Large / Notable items, $m Continuing Operations Pre-Tax 1H22 2H22 1H23 1H23 movement vs 2H22 vs 1H22 485 (HoH) $m (PcP) $m Cash Profit impact (41) (113) (161) (48) (120) 119 Business divestments/closures 249 (6) - 6 (249) Cust
Slide 77: Divisional Performance
2023 HALF YEAR RESULTS INVESTOR DISCUSSION PACK DIVISIONAL PERFORMANCE
Slide 78: Australia Retail – Financial Performance
ANZ 2023 Half Year Results AUSTRALIA RETAIL – FINANCIAL PERFORMANCE Balance Sheet Income Expenses / FTE Credit Quality / RWAs Profit & Returns NLAs, $b NII/OOI Contribution, $m Expenses, $m Total Provision Charge, $m Cash Profit, $m 301 3,174 3,299 1,741 1,745 82 1,072 1,026 2,975 1,656 290 353 281
Slide 79: Australia Retail – Contribution and Profit Drivers
ANZ 2023 Half Year Results AUSTRALIA RETAIL – CONTRIBUTION AND PROFIT DRIVERS Contribution (Mar 23), $b Cash Profit drivers (Mar 23), $m 301 Net Interest Income 6 156 +$197m 0 102 44 95 1,072 16 1,026 -72 -89 295 3.3 -98 0.3 112 3.0 Net Loans & Advances Customer Deposits Total Income (1H23) 2H22 Vol
Slide 80: Australia Retail – Loans & Deposits
ANZ 2023 Half Year Results AUSTRALIA RETAIL – LOANS & DEPOSITS Lending composition, $b Deposit composition, $b 301 150 156 141 147 290 6 23 284 285 23 26 26 6 6 6 44 39 41 43 278 278 284 295 16 14 16 28 63 66 65 62 Sep 21 Mar 22 Sep 22 Mar 23 Sep 21 Mar 22 Sep 22 Mar 23 Home Loans Cards, Personal Lo
Slide 81: Australia Commercial – Financial Performance
ANZ 2023 Half Year Results AUSTRALIA COMMERCIAL – FINANCIAL PERFORMANCE Balance Sheet Income Expenses / FTE Credit Quality / RWAs Profit & Returns NLAs1, $b NII/OOI Contribution, $m Expenses, $m Total Provision Charge, $m Cash Profit, $m 59 59 1,807 685 66 883 56 1,635 1,595 649 652 9 175 739 185 43
Slide 82: Australia Commercial – Contribution and Profit Drivers
ANZ 2023 Half Year Results AUSTRALIA COMMERCIAL – CONTRIBUTION AND PROFIT DRIVERS Contribution (Mar 23), $b Cash Profit drivers (Mar 23), $m 113 Net Interest Income 0 +$222m 36 248 59 1 -10 739 668 -33 20 -77 -31 1.8 -26 77 0.2 39 1.6 Net Loans & Advances1 Customer Deposits Total Income (1H23) 2H22
Slide 83: Australia Commercial – Loans & Deposits
ANZ 2023 Half Year Results AUSTRALIA COMMERCIAL – LOANS & DEPOSITS Lending composition1, $b Deposit composition, $b 59 111 116 112 113 56 56 59 1 1 1 1 28 30 30 29 17 18 20 20 21 19 21 27 38 38 39 39 62 67 61 57 Sep 21 Mar 22 Sep 22 Mar 23 Sep 21 Mar 22 Sep 22 Mar 23 SME Banking Specialist Business
Slide 84: Australia Commercial – Book Composition & Risk Weight Intensity
ANZ 2023 Half Year Results AUSTRALIA COMMERCIAL – BOOK COMPOSITION & RISK WEIGHT INTENSITY Diversified portfolio – Geographical view Security profile Mar 23 % of Exposure at Default (EAD)1 % of Exposure at Default (EAD)2,3 5% 5% 3% 5% 3% 5% 3% 5% 13% 13% 13% 12% 11% 8% 29% VIC/TAS WA 77% 79% 80% 81%
Slide 85: New Zealand Division – Financial Performance
ANZ 2023 Half Year Results NEW ZEALAND DIVISION – FINANCIAL PERFORMANCE Balance Sheet1 Income1 Expenses / FTE Credit Quality / RWAs Profit & Returns NLAs2 & NIM, NZDb NII/OOI Contribution, NZDm Expenses, NZDm Total Provision Charge, NZDm Cash Profit, NZDm 1,912 1,937 689 688 685 81 82 822 842 125 12
Slide 86: New Zealand Division – Contribution & Profit Drivers
ANZ 2023 Half Year Results NEW ZEALAND DIVISION – CONTRIBUTION & PROFIT DRIVERS Contribution (Mar 23), NZDb Cash Profit drivers (Mar 23), NZDm Net Interest Income 128 +$47m 25 105 37 19 3 842 10 -1 1.9 822 -22 -7 103 0.2 86 1.7 Net Loans & Advances Customer Deposits Total Income (1H23) 2H22 Volume M
Slide 87: New Zealand Division – Balance Sheet
ANZ 2023 Half Year Results NEW ZEALAND DIVISION – BALANCE SHEET Housing 1 Business2 Agri ANZ Performance (NZDb) ANZ Performance (NZDb) ANZ Performance (NZDb) 150 15 30 103.1 104.2 104.6 100 10 6.9 7.3 7.3 20 15.7 15.4 15.1 50 5 10 0 0 0 Mar 22 Sep 22 Mar 23 Mar 22 Sep 22 Mar 23 Mar 22 Sep 22 Mar 23
Slide 88: Australia & New Zealand 90+ Days Past Due
ANZ 2023 Half Year Results AUSTRALIA & NEW ZEALAND 90+ DAYS PAST DUE (DPD) Consumer portfolio1 90+ DPD as a % of total portfolio balances 1.50 1.25 1.00 0.75 0.50 0.25 0.00 Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar 18 18 19 19 19 19 20 20 20 20 21 21 21 21 22 22 22
Slide 89: Digital Platforms – Scalable Operating Leverage, Capital Light
ANZ 2023 Half Year Results DIGITAL PLATFORMS – SCALABLE OPERATING LEVERAGE, CAPITAL LIGHT Payments1, m Direct Integration Payments1,2, m NPP Agency Payments1,2, m Platform Cash Mgmt. Accounts3, k 9% 26% 31% 32% 321 125 20 411 295 99 15 312 161 171 64 231 148 58 8 32 76 4 52 0 1H19 1H20 1H21 1H22 1H2
Slide 90: Institutional – Summary
ANZ 2023 Half Year Results INSTITUTIONAL – SUMMARY Customer Franchise Revenue1, $m Risk Adjusted NIM2,3, bps Transactional Deposits & Payments 3,052 Operational / At-Call Deposit NIM # of Digital Payments 2,613 194 219 152 168 173 171 Deposits ($b) (bps) Processed (m) 2,400 2,333 2,141 334 +45% 1,61
Slide 91: Institutional – Financial Performance
ANZ 2023 Half Year Results INSTITUTIONAL – FINANCIAL PERFORMANCE Balance Sheet Income Expenses & FTE Credit Quality & RWA Profit & Returns NLAs1, $b & Margins, % Product Composition3, $m Expenses, $m Total Provision Charge, $m Cash Profit, $m 1,597 3,444 1,273 1,293 1,328 2,793 1 13 5 1,128 598 207
Slide 92: Institutional – Income & Asset Composition
ANZ 2023 Half Year Results INSTITUTIONAL – INCOME & ASSET COMPOSITION Income composition by product1, $m Net loans and advances, $b 3,444 207 208 2,671 2,793 188 2,593 2,555 1,149 171 41 41 160 34 755 27 21 19 1,040 931 812 16 28 17 19 15 672 862 14 18 14 452 Ex Markets 457 460 214 243 189 187 205 1
Slide 93: Institutional Margins
ANZ 2023 Half Year Results INSTITUTIONAL MARGINS1 Risk Adjusted NIM drivers, bps Risk Adjusted NIM – by geography, bps Regulatory Change Institutional Australia & PNG 334 292 13 16 294 294 253 26 246 240 240 224 222 230 222 207 190 202 208 208 -1 271 278 278 278 16 21 56 1H20 2H20 1H21 2H21 1H22 2H2
Slide 94: Institutional – Credit Risk Weighted Assets
ANZ 2023 Half Year Results INSTITUTIONAL – CREDIT RISK WEIGHTED ASSETS (CRWA) CRWA average1, $b CRWA movement HoH, EOP $b 159 160 167 165 172 153 4 5 3 3 4 29 31 35 0 35 30 15 18 19 19 18 105 101 108 114 108 7 150 -2 1H21 2H21 1H22 2H22 1H23 -2 -25 Corporate Finance Trade Markets Other CRWA intensit
Slide 95: Institutional – Markets Income Composition
ANZ 2023 Half Year Results INSTITUTIONAL – MARKETS INCOME COMPOSITION Markets Income composition, $m Markets avg. Value at Risk (99% VaR), $m 1,490 Both Traded and Non-Traded VaR increased reflecting periods of higher 131 market volatility driven by market shocks and revised rate hike 100 expectatio
Slide 96: Consistency of Markets Income
ANZ 2023 Half Year Results CONSISTENCY OF MARKETS INCOME Markets historical monthly income, $m Characteristics of monthly income distribution Historical monthly revenue distribution (FY15-FY22) • Over the last 8 years, monthly revenue has followed close to a normal distribution. 400 Average monthly
Slide 97: Institutional – Regional Summary
ANZ 2023 Half Year Results INSTITUTIONAL - REGIONAL SUMMARY Australia & PNG New Zealand International Customer Franchise Revenue¹, $m Customer Franchise Revenue¹, $m Customer Franchise Revenue¹, $m 1,170 1,326 1,315 1,419 412 425 463 1,212 1,214 355 387 873 653 719 707 689 668 529 504 561 174 201 22
Slide 98: Treasury
2023 HALF YEAR RESULTS INVESTOR DISCUSSION PACK TREASURY
Slide 99: ANZ Group Capital
ANZ 2023 Half Year Results ANZ GROUP CAPITAL ANZ Group Capital Composition, $b ANZ Bank Group Key Capital Ratios (%) Mar 22 Sep 22 Mar 231 Level 2 CET1 capital ratio 11.5 12.3 13.2 90.6 CET1 Composition 82.8 Level 2 CET1 HoH mvmt -81 bps +76 bps +89 bps 0.7 72.8 Additional Tier 1 capital ratio 1.7 1
Slide 100: Regulatory Capital – 1H23 Update
ANZ 2023 Half Year Results REGULATORY CAPITAL – 1H23 UPDATE ANZ Bank Group Capital update ANZ Group Dividend ● Level 2 CET1 ratio of 13.2% (18.9% on an Internationally Comparable basis1) or ~12.1% on a ● Interim Dividend of 81 cents fully franked, ~64% DPOR on 1H23 Cash profit from continuing pro fo
Slide 101: Basel III CET1 Reforms and TLAC Finalisation
ANZ 2023 Half Year Results BASEL III CET1 REFORMS AND TLAC FINALISATION APRA CET1 reforms Updated minimum capital requirements, % • APRA Capital Reforms took effect from 1 January 2023 with benefits from reduction in RWA partially offset by increased capital buffers 19.25% • Enhancing risk sensitivi
Slide 102: Regulatory Capital – Risk Weighted Assets
ANZ 2023 Half Year Results REGULATORY CAPITAL – RISK WEIGHTED ASSETS Risk weighted assets – Level 2, $b Total Credit RWA increase $14.3b (excluding Capital Reform impact) Total Capital Reform 8.8 1.3 1.5 0.4 Impacts 454.7 2.7 457.4 -3.7 -6.0 4.3 435.5 -28.5 Sep 22 FX impacts Sep 22 FX Divisional Ris
Slide 103: Internationally Comparable Regulatory Capital Position
ANZ 2023 Half Year Results INTERNATIONALLY COMPARABLE1 REGULATORY CAPITAL POSITION Level 2 capital ratio (APRA vs internationally comparable)2, % 29.0 27.3 24.9 5.8 7.4 4.6 20.6 16.6 2.5 18.2 2.3 2.6 5.5 3.4 4.2 1.7 1.9 1.7 18.0 19.2 18.9 11.5 12.3 13.2 APRA Int. Comparable APRA Int. Comparable APRA
Slide 104: Balance Sheet Structure
ANZ 2023 Half Year Results BALANCE SHEET STRUCTURE1 Pro forma NSFR is ~116.3% once RSF benefit NSFR movement, % associated with TFF is removed Balance sheet composition, Mar 23 1.9 119.1 2.0 118.6 0.5 -0.8 -4.1 Offshore Short Term W’sale Debt 4% Domestic Short Term Wholesale Debt and Liquid and Othe
Slide 105: Liquidity Coverage Ratio (LCR) Summary
ANZ 2023 Half Year Results LIQUIDITY COVERAGE RATIO (LCR) SUMMARY1 Movement in average LCR surplus2, $b LCR composition, Average 1H23 $b 2H22 1H23 Offshore short-dated Financial Avg LCR 129% 3 Avg LCR 128% 28 Institution (FI) deposits are typically placed with Central Banks. Whilst this has no effec
Slide 106: Term Wholesale Funding Portfolio
ANZ 2023 Half Year Results TERM WHOLESALE FUNDING PORTFOLIO1 Issuance, $b 1H23 maturities of $12b. Maturities, $b Excludes $2.4b Covered Bond trade 32 settled on 4 April 2023 (matures FY25) 28 24 25 24 22 22 21 21 17 19 16 8 8 9 2 FY16 FY17 FY18 FY19 FY20 FY21 FY22 1H23 2H23 FY24 FY25 FY26 FY27 FY28
Slide 107: ANZ's Tier 2 Capital Profile
ANZ 2023 Half Year Results ANZ’S TIER 2 CAPITAL PROFILE1 ANZ’s Tier 2 capital requirement to progressively Tier 2 capital, Notional amount % increase to meet TLAC requirement • ANZBGL has issued $19.7b since July 2019 across AUD, EUR, GBP, JPY, SGD and USD • APRA announced a finalised Tier 2 capital
Slide 108: Capital & Replicating Deposits Portfolio
ANZ 2023 Half Year Results CAPITAL & REPLICATING DEPOSITS PORTFOLIO Australia, % Portfolio earnings rate, Average % 4 Portfolio Earnings Rate is a combination of term swap rates (hedged component) and Australia New Zealand 3 3mth BBSW (unhedged) 1H20 1.64% 1.88% 2 2H20 1.20% 1.40% 1H21 0.92% 1.09% 1
Slide 109: Capital & Liquidity Framework
ANZ 2023 Half Year Results CAPITAL & LIQUIDITY FRAMEWORK1 First Half CY2023 Second Half CY2023 CY2024 Implementation Date RBNZ Capital Framework Transition 2028 Fundamental Review of the Trading Book (incl. Consultation 2026 Counterparty Credit Risk) Interest Rate Risk in the Banking Book Consultati
Slide 110: Risk Management
2023 HALF YEAR RESULTS INVESTOR DISCUSSION PACK RISK MANAGEMENT
Slide 111: Long Run Provisions & Loss Rates
ANZ 2023 Half Year Results LONG RUN PROVISIONS & LOSS RATES Total credit impairment charge, $m 2,000 1,500 1,000 500 0 -500 -1,000 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23 Consumer IP Co
Slide 112: Portfolio Rebalancing Supports Lower Future Loss Profile
ANZ 2023 Half Year Results PORTFOLIO REBALANCING SUPPORTS LOWER FUTURE LOSS PROFILE Exposure at Default2 (% portfolio) • Sold or exited >30 businesses Asset class & historical IP1 Lower Sep 16 Mar 23 • Growth in “low loss” portfolios while decreasing loss rates exposure to “higher loss” portfolios a
Slide 113: Individual Provision (IP) Charge
ANZ 2023 Half Year Results INDIVIDUAL PROVISION (IP) CHARGE IP charge, $m IP charge by division1, $m 626 626 1 398 395 380 272 380 398 395 807 187 7 0 3 6 592 35 40 49 500 69 35 532 87 62 375 -8 -30 155 170 266 162 187 247 123 168 201 3 158 175 55 93 93 80 103 54 51 87 36 59 69 -8 195 185 156 155 3
Slide 114: Collective Provision (CP) Balance & Charge
ANZ 2023 Half Year Results COLLECTIVE PROVISION (CP) BALANCE & CHARGE CP charge, $m CP balance, $m 1.39% 1.25% 1.22% 1.17% 1.17% 1H19 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23 1.08% 1.07% 0.98% 0.94% 5,008 CP charge 13 4 1,048 669 -678 -145 -371 60 163 4,501 696 11 4,285 4,195 4,040 3,757 3,853 746 76
Slide 115: Collective Provision (CP) Balance
ANZ 2023 Half Year Results COLLECTIVE PROVISION (CP) BALANCE CP balance by division, $b Provision balance by stage, $b Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 Mar 22 Sep 22 Mar 23 31 March 2022 31 March 2023 Aus. Retail 0.93 0.91 1.18 1.42 1.11 1.07 0.91 0.90 0.95 Aus. Commercial 0.90 0.89 1.14 1.
Slide 116: Portfolio Composition and Coverage Ratios
ANZ 2023 Half Year Results PORTFOLIO COMPOSITION AND COVERAGE RATIOS Gross Loans & Advances Credit RWA Exposure at Default1 Exposure at Default1 Expected Credit Loss (ex Sovereign & Bank) (Collective Provision Balance) $1,193b $4.04b 3% 1% 7% $857b 2% 21% $694b 36% 4% 3% 2% 20% 51% $345b 25% Soverei
Slide 117: Expected Credit Loss – Economic Scenarios: Modelled Outcomes
ANZ 2023 Half Year Results EXPECTED CREDIT LOSS – ECONOMIC SCENARIOS: MODELLED OUTCOMES (COLLECTIVE PROVISION BALANCE SCENARIOS)¹ Mar 23, $m Economic scenarios Actual Base case 2 31 March 2023 CY2021A CY2022A CY2023F CY2024F Australia GDP change3 4.5% 3.6% 2.0% 1.2% Weightings to scenarios to determ
Slide 118: Impaired Assets
ANZ 2023 Half Year Results IMPAIRED ASSETS Control list, Index Sep 16=100 New impaired assets by division, $m 150 2,000 1,570 100 1,500 1,121 1,000 890 639 599 538 50 500 0 0 Mar Sep Mar Sep Mar Sep Mar Sep Mar Mar 19 Mar 20 Mar 21 Mar 22 Sep 22 Mar 23 19 19 20 20 21 21 22 22 23 Australia Retail New
Slide 119: Risk Weighted Assets (RWA)
ANZ 2023 Half Year Results RISK WEIGHTED ASSETS (RWA) Total RWAs, $b Credit RWA drivers, $b 449 455 1.3 438 436 10.0 48 48 4 408 48 396 42 15 47 38 47 2.7 41 44 13 19 359.4 178 144 142 153 163 150 0.5 345.3 -28.5 -0.1 8 8 7 7 7 8 53 62 57 59 56 58 47 46 43 39 40 36 94 91 92 91 93 94 Mar 19 Mar 20 Ma
Slide 120: Risk Weighted Assets & Exposure at Default Composition
ANZ 2023 Half Year Results RISK WEIGHTED ASSETS & EXPOSURE AT DEFAULT COMPOSITION1 EAD composition, $b EAD & CRWA movement, HoH FX adjusted $b 1,193 18.3 1,152 16 1,103 8 40 38 14.7 1,075 47 1,045 7 42 49 10 9.2 968 51 10 47 48 45 13 44 251 4.4 56 3.6 43 333 0.9 0.7 1.1 1.0 305 0.3 324 277 Aus. Reta
Slide 121: Total Portfolio Composition
ANZ 2023 Half Year Results TOTAL PORTFOLIO COMPOSITION Exposure at Default (EAD) distribution % of Impaired Assets Gross Impaired Category % of Group EAD1 to EAD1 Assets2 Mar 22 Sep 22 Mar 23 Mar 22 Sep 22 Mar 23 Mar 23 5.5% Consumer Lending 39.3% 37.8% 38.3% 0.1% 0.1% 0.1% $449m 1.5% Finance, Inves
Slide 122: Commercial Property – Segments of Interest
ANZ 2023 Half Year Results COMMERCIAL PROPERTY – SEGMENTS OF INTEREST Outstandings by region, GLA $b Outstandings by sector, % 6% 9% 7% 6% 7% 7% 3% 2% 2% 2% 2% 2% 7.6% 7.6% 7.3% 7.3% 19% 6.9% 7.0% 18% 18% 18% 21% 20% 52.8 50.9 2.2 47.7 2.3 46.5 45.2 2.1 28% 29% 29% 2.4 11.2 30% 42.4 2.1 10.9 28% 27%
Slide 123: Commercial Property – Segments of Interest
ANZ 2023 Half Year Results COMMERCIAL PROPERTY – SEGMENTS OF INTEREST Commercial property collateral1,2, % Portfolio growth, Mar 23 v Mar 22 79% of portfolio well secured • Predominantly Australian region across a diversified portfolio of lending segments 45% Portfolio quality, Mar 23 • ~ 80% of exp
Slide 124: ANZ Institutional Portfolio
ANZ 2023 Half Year Results ANZ INSTITUTIONAL PORTFOLIO Size & tenor by market of incorporation, $b Industry composition Finance EAD Mar 231 Government Administration & Defence 16% 541 Property & Business Services 3% 31% Services To Finance & Insurance 3% A$541b¹ 4% Manufacturing (Mar 23) Wholesale T
Slide 125: ANZ Asian Institutional Portfolio
ANZ 2023 Half Year Results ANZ ASIAN INSTITUTIONAL PORTFOLIO Market of incorporation ANZ Asia industry composition Finance 3% 6% 4% Manufacturing 19% 3% 10% 2% 3% Wholesale Trade China South Korea 3% 3% 6% A$127b¹ 7% Services to Finance & Insurance Japan India A$127b¹ Property & Business Services 9%
Slide 126: Housing Portfolio
2023 HALF YEAR RESULTS INVESTOR DISCUSSION PACK HOUSING PORTFOLIO
Slide 127: Australia Home Loans – Portfolio Overview
ANZ 2023 Half Year Results AUSTRALIA HOME LOANS – PORTFOLIO OVERVIEW Portfolio1 Flow2 Portfolio1 1H21 1H22 1H23 1H22 1H23 1H21 1H22 1H23 Number of Home Loan accounts 1,019k 984k 969k 82k3 95k3 Average LVR at Origination9,10 71% 70% 65% Total FUM $281b $278b $293b $35b $43b Average Dynamic LVR (excl.
Slide 128: Australia Home Loans – Portfolio Composition
ANZ 2023 Half Year Results AUSTRALIA HOME LOANS – PORTFOLIO COMPOSITION Home Loan flows (Gross Loans & Advances1), $b Loan balance & lending flows1, $b 10 11 5 18 6 50 12 10 7 0 293 7 8 278 7 7 -65 3 9 13 6 8 7 8 1 25 26 27 23 23 Mar 22 New Sales Net OFI Refi. Redraw & Repay / Other Mar 23 16 17 19
Slide 129: Australia Home Loans – Portfolio Composition & Flow
ANZ 2023 Half Year Results AUSTRALIA HOME LOANS – PORTFOLIO COMPOSITION & FLOW By Purpose, % of total balances By Origination LVR4,5, % of total balances Portfolio 1,2 Flow3 Flow3 2% 2% 1% 0% 11% 31% 22% 19% 30% 30% 33% 17% 21% 21% 68% 68% 68% 67% 60% 72% 57% Mar 21 Mar 22 Mar 23 1H23 1H21 1H22 1H23
Slide 130: Australia Home Loans – Portfolio Resilience
ANZ 2023 Half Year Results AUSTRALIA HOME LOANS – PORTFOLIO RESILIENCE Home Loans repayment profile1,2 Home Loans on time and <1 month ahead profile2,3 % of accounts ahead of repayments % composition of accounts 40 Investment: Interest payments may 30 receive negative gearing/tax benefits 35% 36% 20
Slide 131: Australia Home Loans – Portfolio Resilience
ANZ 2023 Half Year Results AUSTRALIA HOME LOANS – PORTFOLIO RESILIENCE Fixed rate Home Loan expiry profile, $b ANZ flow borrowing capacity1, 1H23 27 24 9% 2% 20 18 Surplus Capacity Minimal Capacity 14 At Capacity 11 9 89% 30+ DPD at Mar 23 by fixed rate expiry month 1H22 2H22 1H23 2H23 1H24 2H24 >2H
Slide 132: Australia Home Loans – Book Originated and Attributes
ANZ 2023 Half Year Results AUSTRALIA HOME LOANS – BOOK ORIGINATED AND ATTRIBUTES ANZ has limited exposure Home Loans portfolio, Mar 23 to recently originated lending at high LVRs with no LMI, and much of this Time on Book ($b) cohort has savings buffers in excess of 3 months of 293 repayments: • $4b
Slide 133: Australia Home Loans – Outcome of Rate Rises
ANZ 2023 Half Year Results AUSTRALIA HOME LOANS – OUTCOME OF RATE RISES ANZ interest rate buffer & floor ANZ Home Loan Portfolio, Mar 23 Home loan applications are assessed at the greater of the customer interest rate plus the interest rate buffer or an interest rate floor Total Portfolio ($b) With
Slide 134: Australia Home Loans – Portfolio Performance
ANZ 2023 Half Year Results AUSTRALIA HOME LOANS – PORTFOLIO PERFORMANCE Home Loans 90+ DPD (by State)1,2 Home Loans delinquencies1,2,3,4 % of Portfolio Segment Balances % of Portfolio Segment Balances 2.5 2.5 2.0 1.5 1.0 2.0 0.5 0.0 Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar 18 18 19 19 20 20 21 21
Slide 135: New Zealand Home Loans – Portfolio Overview
ANZ 2023 Half Year Results NEW ZEALAND HOME LOANS – PORTFOLIO OVERVIEW Portfolio Flow Portfolio 1H21 1H22 1H23 1H22 1H23 1H21 1H22 1H23 Number of Home Loan Accounts 533k 540k 538k 31k 23k Average LVR at Origination 58% 56% 54% Total FUM NZD95b NZD103b NZD105b NZD14b NZD8b Average Dynamic LVR 37% 35%
Slide 136: New Zealand Loans – Home Lending & Arrears Trends
ANZ 2023 Half Year Results NEW ZEALAND LOANS – HOME LENDING & ARREARS TRENDS Home Loan LVR profile1 Housing flows Housing portfolio 1% 1% 2% 2% 5% 11% 11% 11% 7% 7% 45% 7% 55% 57% 15% 12% 11% 89% 89% 89% 55% 45% 43% 15% 1H21 1H22 1H23 Mar 21 Mar 22 Mar 23 Proprietary Broker Fixed Variable 76% 77% Ho
Slide 137: Shareholder Centre & Investor Relations Contacts
ANZ 2023 Half Year Results SHAREHOLDER CENTRE & INVESTOR RELATIONS CONTACTS ANZ Shareholders Centre ANZ Debt Investors Centre Equity Investors Retail Investors Debt Investors Jill Campbell Cameron Davis Harsh Vardhan Michelle Weerakoon David Goode Steven Aquilina Group General Manager Executive Mana