Anz Group Holdings Limited · ASX:ANZ
Anz — Investor Day (September 2023)
49 slides from Anz's investor day presentation, Sep 7, 2023
Slide 1: Institutional Payments & Platforms Investor Briefing
2023 INSTITUTIONAL PAYMENTS & PLATFORMS INVESTOR BRIEFING PRESENTATION / INVESTOR DISCUSSION PACK 7 September 2023 ANZ Group Holdings Limited ABN 16 659 510 791 9/833 Collins Street Docklands Victoria 3008 Australia
Slide 2: Disclaimer & Important Notice
ANZ 2023 Institutional Payments and Platforms Investor Briefing 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 comp
Slide 3: Contents
ANZ 2023 Institutional Payments and Platforms Investor Briefing Overview (Revenue, global presence, Key terms) 3 Institutional overview - Mark Whelan 6 Performance Focus Technology investment Transaction Banking – Lisa Vasic 13 Products & services CONTENTS Market position & performance Platforms Pla
Slide 4: ANZ Revenue Composition – 1H23
ANZ 2023 Institutional Payments and Platforms Investor Briefing ANZ REVENUE COMPOSITION – 1H23 Group revenue (1H23), $m Institutional revenue (1H23), $m Transaction Banking ($1,105m) Trade: Corporate ~20% of Transaction Trade New Zealand Finance 243 Banking revenue 17% 1,196 (7%) Australia (35%) PCM
Slide 5: ANZ Global Presence
ANZ 2023 Institutional Payments and Platforms Investor Briefing ANZ GLOBAL PRESENCE Institutional has a significant international footprint which enables it to connect clients to opportunities globally Asia China Laos South Korea Hong Kong Malaysia Taiwan India Philippines Thailand Indonesia Singapo
Slide 6: Key Transaction Banking Terms
ANZ 2023 Institutional Payments and Platforms Investor Briefing KEY TRANSACTION BANKING TERMS Term Description Transaction Banking supports our customers with their working capital needs, providing a range of products, solutions, insights and services. These are delivered through two business 1. Tra
Slide 7: Institutional Overview
2023 INSTITUTIONAL PAYMENTS & PLATFORMS INVESTOR BRIEFING INSTITUTIONAL OVERVIEW Mark Whelan Group Executive, Institutional
Slide 8: Institutional Is Today a Very Different Business
ANZ 2023 Institutional Payments and Platforms Investor Briefing INSTITUTIONAL IS TODAY A VERY DIFFERENT BUSINESS Customer Deposits1 Net Loans & Advances1 Total RWA1 Return on Average RWA 1,2 Internal Expected Loss $b $b $b % bps 278 263 207 208 208 1.59 37 247 199 188 183 182 176 1.11 126 0.84 20 19
Slide 9: Diversified Business
ANZ 2023 Institutional Payments and Platforms Investor Briefing DIVERSIFIED BUSINESS Revenue by product, $m Revenue by region, $m 3,444 3,444 2,793 2,793 2,671 1,149 2,671 1,390 2,593 2,555 16 2,593 2,555 18 14 15 755 823 673 1,003 1,040 812 846 931 485 1,196 401 416 415 406 1,136 967 1,001 1,071 24
Slide 10: Institutional Focus
ANZ 2023 Institutional Payments and Platforms Investor Briefing INSTITUTIONAL FOCUS Guided by ANZ’s purpose, culture and values, we’re building the best bank for customers that move goods and capital across the region to sustainably grow their business Customers Propositions Sectors & trends Network
Slide 11: Simplified Network and Technology Supporting Our Business
ANZ 2023 Institutional Payments and Platforms Investor Briefing SIMPLIFIED NETWORK AND TECHNOLOGY SUPPORTING OUR BUSINESS 1 KYC Platform 1 Credit Limit platform 1 Cash Management platform 1 Client Services platform Creating single platforms that are globally integrated 1 Markets platform 1 Customer
Slide 12: Streamlined Network of Digital and Data Capabilities
ANZ 2023 Institutional Payments and Platforms Investor Briefing STREAMLINED NETWORK OF DIGITAL AND DATA CAPABILITIES Digital backbone: Simplifying and connecting systems and data to enhance customer experience, better decision making and automation Key principles1 Resulting in Single source of truth
Slide 13: Summary
ANZ 2023 Institutional Payments and Platforms Investor Briefing SUMMARY High quality Customers Invested in Unique network customer base value us technology & systems is a differentiator Deep, long term relationships, Our networks, our platforms, Invested >$1.2b in technology Network of 29 markets, ~
Slide 14: Transaction Banking
2023 INSTITUTIONAL PAYMENTS & PLATFORMS INVESTOR BRIEFING TRANSACTION BANKING Lisa Vasic Managing Director, Transaction Banking, Institutional
Slide 15: Transaction Banking Overview
ANZ 2023 Institutional Payments and Platforms Investor Briefing TRANSACTION BANKING OVERVIEW Transaction Banking business partners with customers around the world, delivering two business lines Payments and Cash Management (PCM) Trade and Supply Chain Helping customers manage working capital through
Slide 16: Supporting Customers' Payments and Cash Management Needs
ANZ 2023 Institutional Payments and Platforms Investor Briefing SUPPORTING CUSTOMERS’ PAYMENTS AND CASH MANAGEMENT NEEDS Domestic payments and receivables Liquidity, accounts and client monies Clearing, agency services and cross border payments Domestic payables Transaction accounts & term deposits
Slide 17: Strong Market Position
ANZ 2023 Institutional Payments and Platforms Investor Briefing STRONG MARKET POSITION Market recognition1 Correspondent Banking (Clearing Services) market share2 Australia (%) New Zealand (%) Australia (%) New Zealand (%) 60 60 #1 #1 55 58 58 55 Transaction Banking Lead Transaction Banking Lead Ban
Slide 18: Payments and Cash Management Deposits
ANZ 2023 Institutional Payments and Platforms Investor Briefing PAYMENTS AND CASH MANAGEMENT DEPOSITS Customer Deposits, $b 0.82% 0.60% 0.41% 0.39% 0.34% 153 148 142 Includes $103b in 133 operational deposits on 121 behalf of customers 1H21 2H21 1H22 2H22 1H23 Payments and Cash Management Deposits P
Slide 19: Three Elements Make ANZ Payments and Cash Management Unique
ANZ 2023 Institutional Payments and Platforms Investor Briefing THREE ELEMENTS MAKE ANZ PAYMENTS AND CASH MANAGEMENT UNIQUE Our regional network Operating at scale Our customer relationships Supports customers moving trade and Velocity unmatched by domestic peers Long term relationships capital arou
Slide 20: ANZ Platform Services Offering
ANZ 2023 Institutional Payments and Platforms Investor Briefing ANZ PLATFORM SERVICES OFFERING Our platforms business allows our customers to directly use our technology and systems to provide services to their clients PLATFORMS Powering our customers Correspondent Banking Agency Services Real Time
Slide 21: Payments and Cash Management Revenue
ANZ 2023 Institutional Payments and Platforms Investor Briefing PAYMENTS AND CASH MANAGEMENT REVENUE PCM revenue (1H23, $862m) By geography By proposition By component1 By segment2 45% 29% 79% 78% 52% 24% 15% 21% 22% 18% 15% Australia & PNG Primary propositions3 Net interest income FIG DI New Zealan
Slide 22: Platform Services – Scalable Operating Leverage, Capital Light
ANZ 2023 Institutional Payments and Platforms Investor Briefing PLATFORM SERVICES – SCALABLE OPERATING LEVERAGE, CAPITAL LIGHT Continued growth in payments and accounts, delivering 21% of PCM revenue Payments1 Direct Integration Payments1,2 Real Time Payments1,2 Client Monies m m NPP Agency, m Platf
Slide 23: Summary
ANZ 2023 Institutional Payments and Platforms Investor Briefing SUMMARY Competitive advantage Sustainable position Leadership position in Australia & New Zealand Position of trust Unique regional network Strong financial commitment Technology Strong track record Benefits of scale A globally relevant
Slide 24: Platforms
2023 INSTITUTIONAL PAYMENTS & PLATFORMS INVESTOR BRIEFING PLATFORMS Leigh Mahoney, Head of Wholesale Digital, Institutional
Slide 25: Platform Services Offering
ANZ 2023 Institutional Payments and Platforms Investor Briefing PLATFORM SERVICES OFFERING Correspondent Banking Agency Services Real Time Payments Client Monies executing and clearing offering other financial allowing our customers to use enabling our customers to set transactions in Australia and
Slide 26: How Customers Access Banking Services
ANZ 2023 Institutional Payments and Platforms Investor Briefing HOW CUSTOMERS ACCESS BANKING SERVICES Web & Mobile App Direct Integration (Transactive Global) (Fileactive) Intuitive, secure and configurable digital experiences Flexible integration of banking services directly into customer systems v
Slide 27: ANZ Success in Offering Integrated Banking Solutions
ANZ 2023 Institutional Payments and Platforms Investor Briefing ANZ SUCCESS IN OFFERING INTEGRATED BANKING SOLUTIONS Exceptional credentials and expertise Mitigating transition risk Solving business process problems Managing security and flexibility Using proprietary translation technology Through c
Slide 28: Strong Position in Integrated Banking Solutions
ANZ 2023 Institutional Payments and Platforms Investor Briefing STRONG POSITION IN INTEGRATED BANKING SOLUTIONS ANZ Direct Integration platform, Fileactive Fileactive – Translation and workflow Customer ANZ #1 ERP/TMS Encrypted bi- Banking Services directional file and #1 Market Penetration for Host
Slide 29: Real Time Payments Agency Services
ANZ 2023 Institutional Payments and Platforms Investor Briefing REAL TIME PAYMENTS AGENCY SERVICES Real Time Payments (NPP Agency example) Enables smaller or foreign banks to participate in real time payments within Australia using ANZ’s systems Lower barriers to participate Agent 3 New Payments Pla
Slide 30: Client Monies Platform Service
ANZ 2023 Institutional Payments and Platforms Investor Briefing CLIENT MONIES PLATFORM SERVICE Supports the needs of customers who manage funds on behalf of their clients Payments1 Direct Integration Payments1,2 Real Time Payments1,2 Client Monies m m NPP Agency, m Platform Cash Mgt. Accounts3 9% 26
Slide 31: Platform Offering Relies on Specialist Capabilities
ANZ 2023 Institutional Payments and Platforms Investor Briefing PLATFORM OFFERING RELIES ON SPECIALIST CAPABILITIES Robust, resilient and efficient Deep banking expertise and Quality processes supporting global technology customer relationships payment systems Culture of closely managing Responding
Slide 32: Global Payments Capability
2023 INSTITUTIONAL PAYMENTS & PLATFORMS INVESTOR BRIEFING GLOBAL PAYMENTS CAPABILITY Nigel Dobson, Banking Services Lead, Institutional
Slide 33: Enterprise-Wide Banking Services
ANZ 2023 Institutional Payments and Platforms Investor Briefing ENTERPRISE-WIDE BANKING SERVICES Governing, operating and engineering Payments Services and Payments Data enterprise platforms for the ANZ Group and the Omni-Channel digital distribution platform supporting our Institutional Bank Custom
Slide 34: Enterprise Assets Support Retail, Commercial & Institutional
ANZ 2023 Institutional Payments and Platforms Investor Briefing ENTERPRISE ASSETS SUPPORT RETAIL, COMMERCIAL & INSTITUTIONAL Securing and facilitating the movement of $164T 1 each year (operating 24 hours a day, 7 days a week) 8m+ 149 28 29 121 Customers Sending & Distribution Markets Payment receiv
Slide 35: Platforms Are Self Manufactured & Operated, Built for Scale
ANZ 2023 Institutional Payments and Platforms Investor Briefing PLATFORMS ARE SELF MANUFACTURED & OPERATED, BUILT FOR SCALE Australia & New Zealand In 29 markets Retail Commercial Institutional OFIs, Super, Stockbrokers Transaction capture Transactive Global Client Monies Direct Integration (Fileact
Slide 36: Supporting Our Customers Transition into the Digital Economy
ANZ 2023 Institutional Payments and Platforms Investor Briefing SUPPORTING OUR CUSTOMERS TRANSITION INTO THE DIGITAL ECONOMY Developing an enterprise capability for Digital Assets & Currencies and a lead participant in industry initiatives Central Bank Digital Currency (CBDC) pilot SWIFT Interoperab
Slide 37: Summary
ANZ 2023 Institutional Payments and Platforms Investor Briefing SUMMARY Consistent approach in exploring digital assets and modernising our payments system Develop expertise in-house Work closely with regulators Partner with customers 36
Slide 38: Institutional 1H23 Financial Summary
2023 INSTITUTIONAL PAYMENTS & PLATFORMS INVESTOR BRIEFING INSTITUTIONAL 1H23 FINANCIAL SUMMARY
Slide 39: ANZ Diversification
ANZ 2023 Institutional Payments and Platforms Investor Briefing ANZ DIVERSIFICATION ANZ Group structure & contribution (1H23 continuing operations)1 Aus. Retail Aus. Commercial Institutional New Zealand Pacific Loans $690b 44% 9% 30% 17% 0% Deposits $649b 24% 17% 43% 15% 1% RWA $436b 27% 11% 42% 16%
Slide 40: Institutional Diversification
ANZ 2023 Institutional Payments and Platforms Investor Briefing INSTITUTIONAL DIVERSIFICATION Institutional – coverage (1H23)1 Institutional – product (1H23)1,2 Corporate Australia & PNG New Zealand International Finance Markets Transaction Banking (TB) Total TB PCM3 Trade Loans $208b 55% 9% 37% 71%
Slide 41: Digital Platforms – Scalable Operating Leverage, Capital Light
ANZ 2023 Institutional Payments and Platforms Investor Briefing DIGITAL PLATFORMS – SCALABLE OPERATING LEVERAGE, CAPITAL LIGHT Payments1, Direct Integration Payments1,2, Real Time Payments1,2, Platform Cash Mgmt. Accounts3, m 9% m 26% NPP Agency m 31% k 32% 321 125 20 411 295 99 15 312 161 171 64 23
Slide 42: Institutional – Summary
ANZ 2023 Institutional Payments and Platforms Investor Briefing 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) Processe
Slide 43: Institutional – Financial Performance
ANZ 2023 Institutional Payments and Platforms Investor Briefing 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,
Slide 44: Institutional – Income & Asset Composition
ANZ 2023 Institutional Payments and Platforms Investor Briefing 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
Slide 45: Institutional Margins
ANZ 2023 Institutional Payments and Platforms Investor Briefing 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
Slide 46: Institutional – Credit Risk Weighted Assets (CRWA)
ANZ 2023 Institutional Payments and Platforms Investor Briefing 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 Fina
Slide 47: Institutional – Markets Income Composition
ANZ 2023 Institutional Payments and Platforms Investor Briefing 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
Slide 48: Institutional – Regional Summary
ANZ 2023 Institutional Payments and Platforms Investor Briefing 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 7
Slide 49: Shareholder Centre & Investor Relations Contacts
ANZ 2023 Institutional Payments and Platforms Investor Briefing SHAREHOLDER CENTRE & INVESTOR RELATIONS CONTACTS ANZ Shareholders Centre ANZ Debt Investors Centre Equity Investors Retail Investors Debt Investors Jill Campbell Cameron Davis Pavita Sivakumar Michelle Weerakoon David Goode Steven Aquil