Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — FY2009 Earnings Presentation
87 slides from Anz's earnings presentation, Oct 29, 2009
Slide 1: Full Year Results 2009 - Results Presentations & Investor Pack
For personal use only 09 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 29 OCTOBER 2009 RESULTS PRESENTATIONS & INVESTOR PACK
Slide 2: Mike Smith, Chief Executive Officer
For personal use only 09 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED MIKE SMITH CHIEF EXECUTIVE OFFICER
Slide 3: ANZ, well positioned and delivering on our strategic commitments
ANZ, well positioned and delivering on our strategic commitments ● Strong operating result despite Global Tier-1 Capital Position (%) For personal use only Financial Crisis ● Business has reached a turning point o momentum maintained throughout remediation program o two strategic acquisitions - inte
Slide 4: Overview of the 2009 result
Overview of the 2009 result For personal use only Full Year 2009 Growth ($m) 2009 vs 2008 Underlying Profit1 3,772 10% Revenue1 14,367 17% Expenses1 (6,068) 12% Provisions1 (3,056) 46% Statutory Net Profit After Tax 2,943 (11%) EPS1 168.3 (4%) Full Year Franked Dividend 102 cents (25%) (interim 46cp
Slide 5: Geographic performance - Highlights
Geographic performance - Highlights Underlying Profit by geography2 ($m) For personal use only Australia 2,560 ● Strong contributions from both Retail and Australia Up 13% Institutional Asia Pacific, Europe & America 1 699 ● Partnerships and the Institutional APEA Up 81% business the major contribut
Slide 6: Progress report on our journey to becoming a Super Regional bank
Progress report on “Our journey to becoming a Super Regional bank” For personal use only TRANSFORM OUT PERFORM RESTORE • Quality on par with • Institutional back global leaders in our to system Create • Restore “jaws” – • Best of breed customer markets a leading Super increase revenue Regional ban
Slide 7: Peter Marriott, Chief Financial Officer
For personal use only 09 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED PETER MARRIOTT CHIEF FINANCIAL OFFICER
Slide 8: Solid underlying business performance, timing of costs and higher provisions impacting second half
Solid underlying business performance, timing of costs and higher provisions impacting second half Group Underlying Profit FY09 vs FY08 ($m) For personal use only 1,955 117 (662) (966) (98) 3,772 (829) 3,319 107 3,426 2,943 17% 12% 46% 7% Underlying profit up 10% Sep 2008 Non Core Sep 2008 NII Other
Slide 9: Statutory profit reconciliation
Statutory profit reconciliation For personal use only YOY 2H09 1H09 FY09 FY08 Growth Profit ($m) 1,526 1,417 2,943 3,319 (11%) Adjustments to Statutory Profit - Top up of NZ conduits tax provision (196) - (196) - - Economic Hedging – fair value gains/losses (709) 461 (248) 243 - Other 2 2 4 47 Cash
Slide 10: Geographic businesses delivering solid performance in Australia and significant growth in Asia Pacific
Geographic businesses delivering solid performance in Australia and significant growth in Asia Pacific, NZ impacted by difficult conditions 2009 Pre Provisions Profit ($m) 2009 Net Profit After Tax ($m) For personal use only 5,728 2,560 Australia up 18% Australia Up 13% 1 1,115 1 699 2008 profit APE
Slide 11: Global Markets and Asia Pacific key contributors to increase in total income
Global Markets and Asia Pacific key contributors to increase in total income Total Income ($m) Markets Income (including NII) For personal use only ($m) 14,367 1,066 1,125 17% FY09 growth: 77% 12,295 7,327 7,040 46% of 581 660 6,315 1,125 FY09 5,980 1,066 growth 414 442 1,658 Excluding 1,645 markets
Slide 12: Asia Partnerships a key contributor to growth in other income
Asia Partnerships a key contributor to growth in other income Underlying other income ($m) Composition of “Other” For personal use only 4,557 $m 4,440 $m 2500 2,339 350 2,199 2,241 2,218 300 2000 Refer Markets 250 1500 comments 200 1000 150 71% Flat increase growth 100 2009 vs 500 2009 vs 2008 2008
Slide 13: Margins moving back to pre crisis levels
Margins moving back to pre crisis levels Net Interest Margin (NIM) Full Year 2009 (bp) For personal use only 4.5 (1.4) 229.5 5.0 44.8 NIM excluding 3.5 (12.2) 12.3 213.2 “Accounting noise” (27.9) 200.9 280 Basis points 260 240 Asset & funding mix 220 Accounting noise 200 16bp 180 Funding costs 160 E
Slide 14: Strong deposit growth and subdued lending position
Strong deposit growth and subdued lending position a result of environmental drivers, strategic and portfolio initiatives Customer deposit and lending growth Institutional Lending growth returning For personal use only (2009 vs 2008) (%) to more normalised levels (NLA incl Acceptances $b) Total 14%
Slide 15: Expense growth directed to growth markets and to drive superior returns
Expense growth directed to growth markets and to drive superior returns, costs contained in New Zealand and Australia division For personal use only Contribution to 2009 cost growth 12.3% Revenue Cost “Jaws” growth growth FX Adjusted APEA1 3.8% Investment in network, support functions 32% 30% 2% and
Slide 16: Provision charge composition changing with the credit cycle
Provision charge composition changing with the credit cycle - moved towards middle market, significant increase in New Zealand Total Provision Charge ($m) Individual Provision Charge ($m) For personal use only 77% 119% 88% 5% 13% Wholesale > 100m Wholesale < 100m 1,531 1,621 Commercial 1,435 154 Con
Slide 17: Balance sheet well positioned for the current economic environment
Balance sheet well positioned for the current economic environment Collective Provision Balance / Collective Provision Charge returning For personal use only Credit RWAs (%) towards a more normalised level ($m) 1.31% 818 1.13% 1.06% No net 0.94% release from Concentration / 0.73% Economic Cycle prov
Slide 18: Rate of growth in impaired loans reducing; consumer arrears stabilising
Rate of growth in impaired loans reducing, trending towards middle market portfolios. Consumer arrears stabilising Gross Non Performing Loans1 to Institutional Non Performing Loans For personal use only Net Lending Assets (%) concentration by top 5 industries (4%) 41% 61% 106% 23% Property Finance &
Slide 19: Strong Tier-1 position, ANZ well placed for growth opportunities
Strong Tier-1 position, ANZ well placed for growth opportunities Capital Position (Tier-1 Ratio) For personal use only 11.9 Portfolio growth & mix: 36bp increase 0.29 (0.22) Risk migration: 34bp reduction 2.07 10.56 (0.34) Portfolio data review: 52bp increase (0.76) 9.46 1.06 (0.59) 0.54 (0.30) 7.71
Slide 20: Key factors for 2010
Key factors for 2010 Margin momentum, ex Markets (%) Credit provision charge stabilising ($m) For personal use only 2.43 2.57 1,435 1,621 2.35 2.35 1,364 726 1H08 2H08 1H09 2H09 1H08 2H08 1H09 2H09 Balance sheet momentum modest ($b) Investment in franchise will continue Cost growth (%) 351.9 345.8 5
Slide 21: Mike Smith, Chief Executive Officer
For personal use only 09 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED MIKE SMITH CHIEF EXECUTIVE OFFICER
Slide 22: Summary
SUMMARY For personal use only ● Global economic environment to remain volatile ● Cycle continues to play out to expectations – credit stress has moved from big end of town to the middle market and higher risk personal ● Despite resilience in the Australian economy, prudent to remain cautious ● New Z
Slide 23: Corporate Responsibility
For personal use only 09 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED CORPORATE RESPONSIBILITY
Slide 24: Continued global leadership in managing economic, social and environmental issues
Continued global leadership in managing economic, social and environmental issues and opportunities Sustainability can outperform For personal use only • $13.5m of Federal Government funding to help ANZ and community partners expand the successful Saver Plus matched savings program nationally ANZ as
Slide 25: Credit Intermediation Trades
For personal use only 09 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED CREDIT INTERMEDIATION TRADES
Slide 26: Similar market dynamics impact credit intermediation trades and economic hedging
Similar market dynamics impact both the mark to market on Credit Intermediation Trades and economic hedging Credit Intermediation Trades Reduced CDS spreads and stronger AUD For personal use only CVA P&L charges (A$m) driving MTM reversal 2H09 595 300 1.20 250 1.00 (158) (213) 200 0.80 (664) 1H08 2H
Slide 27: Credit Intermediation Trades charge improved in the second half
Credit Intermediation Trades charge improved in the second half driven largely by improved credit spreads For personal use only Counterparty No. Notional Mark to Market Credit Risk on Credit Risk Rating Principal (US$m) Derivatives^ on Amount (US$m) Derivatives^ (US$m) (A$m) AAA/Aa2, Aa3 2 2,946 273
Slide 28: Net Interest Margins
For personal use only 09 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED NET INTEREST MARGINS (For Group NIM refer slide 12)
Slide 29: NIM: Australia Division
NIM: Australia Division Deposits NIM impacted by strong For personal use only competition and demand shift Australia NIM movements FY09 v FY08 towards low margin products Deposits Competition 59.1 (2.0) 252.1 (0.3) Esanda Debentures (20.1) 240.5 (8.7) (36.5) Deposit Mix (2.6) (2.8) Replicating and (
Slide 30: NIM: New Zealand businesses
NIM: New Zealand businesses Offshore funding pressures have For personal use only New Zealand NIM movements FY09 v FY08 eased, banks continue to chase 2 % domestic funds Senior 1.5 Term Debt2 1 239.8 3.3 (26.7) 0.5 65.1 (13.4) (54.8) 0 213.3 Term -0.5 Deposits1 -1 Mar-07 Mar-08 Mar-09 Significant pr
Slide 31: NIM: Institutional
NIM: Institutional Institutional NIM movements FY09 v FY08 For personal use only 13.1 1.2 205.4 23.1 9.0 (7.0) 171.9 (5.9) 35.4 136.5 33.5 bps 68.9 bps FY08 A/C Noise FY08 adj Asset & Funding Deposits Assets Markets Other FY09 for A/C noise Funding Mix Costs 30
Slide 32: Treasury
For personal use only 09 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED TREASURY
Slide 33: Strong Balance Sheet
Strong Balance Sheet • Tier 1 Capital ratio increased to 10.6% (pro forma post RBS assets and ING is 9.5%) Strong capital position For personal use only • Pro forma Core Tier-1 capital ratio increased to 7.9% 11.9% (10.3% FSA) 10.6% 9.5% 1.6% • Total Provision coverage of 1.97% of Credit RWAs 7.7% 8
Slide 34: Capital position significantly strengthened throughout the year
Capital position has been significantly strengthened throughout the year notwithstanding recent M&A activities For personal use only Target Sep-08 Mar-09 Sep-09 Sep-09 FSA Sep- OSFI Sep- operating pro 09 pro 09 pro range forma1 forma1 forma1 Core Tier 12 6.0% - 6.5% 5.9% 6.4% 9.0% 7.9% 10.3% 10.1% T
Slide 35: Core Tier-1 position strong
Core Tier-1 position strong Capital Position (Core Tier-1 Ratio) For personal use only 10.3 Portfolio growth & mix: 31bp increase 0.29 8.96 (0.29) 2.07 (0.76) Risk migration: 30bp reduction Portfolio data review: 44bp increase 7.91 1.06 (0.59) 0.45 (0.23) 5.91 Core Tier-1 operating range between 6.0
Slide 36: Reconciliation of ANZ's capital position to FSA Basel II guidelines
Reconciliation of ANZ‟s capital position to FSA Basel II guidelines (based upon INGJV as a subsidiary) APRA regulations are more conservative than current FSA regulations, in that APRA requires: For personal use only • A 20% Loss Given Default floor for mortgages (FSA: 10% floor) • Interest Rate Ris
Slide 37: Leverage Ratio
Leverage Ratio 1 Leverage Ratio For personal use only • Some market commentary around possible introduction of a Leverage Ratio target • No current common definition of Leverage 5.8% Ratio, each definition has significant limitations (i.e. maintains regulatory 5.0% inconsistencies, treatment of fund
Slide 38: Improved funding metrics although term funding costs remain elevated
Improved funding metrics although term funding costs remain elevated Funding composition improved ● Reliance on short term wholesale funding For personal use only further reduced to 17% Short-term 18% 17% ● Funding from equity, customer and wholesale 22% wholesale 6% 5% Only 3% funding 7% of total d
Slide 39: Liquidity position strengthened further
Liquidity position strengthened further Liquid asset position remains strong ($bn) Portfolio diversified by geography For personal use only Mar 09 & Sep 09 positions support >12 months offshore Australia wholesale funding maturities 7.4 7.8 41% Internal RMBS (Aus) 31% New Zealand 3.2 60.1 60.2 0.8 3
Slide 40: Managing the Group's earnings denominated in non-AUD currencies
Managing the Group‟s earnings denominated in non-AUD currencies FY09 reported profit before tax by For personal use only ● NZD is currently the most significant single currency currency revenue exposure ● USD and Asian local currency revenues are increasing as a proportion of total group 17% 68% rev
Slide 41: Credit Quality
For personal use only 09 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED CREDIT QUALITY
Slide 42: RWA reduction from reducing EAD and portfolio refinement
RWA reduction from reducing EAD1 and portfolio refinement, partly offset by portfolio deterioration, significantly impacting EL Movement in Credit Risk Weighted Assets Regulatory Expected Loss movements For personal use only ($b) ($m) Thousands 250.8 (9.4) 121 (19) 4529 6.3 (13.7) 746 714 (4.2) 3,05
Slide 43: EAD reduction impacted by derivatives, off balance sheet exposures and exchange rates
EAD reduction impacted by derivatives, reduction in off balance sheet exposures, portfolio management, exchange rates and data refinement EAD($bn) EAD Basel II Asset class movements For personal use only Sep 09 vs Sep 08 (5.5%) 8% $bn (7.7%) 4% 600 582.6 567.8 (2.6%) 555.0 -3% 538.4 -4% 524.3 500 -1
Slide 44: Credit Risk Weighted Asset reduction from declining asset volumes
Credit Risk Weighted Asset reduction primarily from declining asset volumes, exchange rate movements and data refinement Credit Risk Weighted Assets ($bn) Credit RWA Basel II Asset class movements For personal use only (8.4%) Sep 09 vs Sep 08 $bn 300 (10.9%) 9% 5% 4% 260.7 257.8 (4.8%) 250.8 241.3 2
Slide 45: IP charge by Region and Segment
IP charge by Region and Segment: Increased impact from New Zealand and Middle Market Total IP Charge Segment IP charge by region1 For personal use only By Region Commercial IP by region 1,531 1,283 289 894 201 137 378 81 267 63 2H07 1H08 2H08 1H09 2H09 2H07 1H08 2H08 1H09 2H09 Australia New Zealand
Slide 46: Breakdown of FY09 collective provision charge
Breakdown of FY09 collective provision charge $m Lending Risk Cycle & Mix Impacts Concentration For personal use only Group Total (2) 251 (1) (13) $235m Group Centre 17 APEA 62 150 (ex Insto.) 100 36 50 11 1 0 -50 (3) Australia 146 Division 150 83 100 59 30 50 0 -50 (26) New Zealand 150 124 171 100
Slide 47: Collective Provision: Group remains well provisioned
Collective Provision: Group remains well provisioned Collective Provision balance / Credit Total Provision balance ($m) For personal use only RWA‟s (%) 4,526 4,083 1.40% 1.31% 3,496 1,526 675 1,341 1.13% 2,656 1.20% 2,262 1.06% 316 270 1.00% 0.94% 2,821 2,742 3,000 1,992 2,340 0.80% 0.72% Sep 07 Mar
Slide 48: Days Past Due: Rate of growth has slowed
90 Days Past Due: Rate of growth has slowed 90 Days Past Due as a % of Gross Australian Consumer Portfolio For personal use only Lending Assets less Non Performing 90 days past due / GLA (%) Loans 2.00% 0.50% 0.46% 1.50% 0.44% 0.45% 1.00% 0.40% 0.50% Well Secured 0.35% Not well secured 0.00% 0.30% S
Slide 49: Impaired facilities: moving through the cycle
Impaired facilities: moving through the cycle, Institutional slowing, greater impact in middle market and NZ consumer Institutional impaired facilities by Region Non Performing Loans (by single names) For personal use only 4000 ($m) 3000 <$5m 2000 > $100m 1000 $5m - $9m 0 $10m - 1H08 2H08 1H09 2H09
Slide 50: Watch & Control lists
Watch & Control lists: Control list stabilising, new names onto the watch list slowing in second half Watch1 & Control List by limits (indexed) Watch list by industry For personal use only Number of Groups (%) Sep 08 Other Agriculture, Oct 08 Business 17% Forestry & Services Fishing Nov 08 4% 30% De
Slide 51: Commercial industry exposures
Commercial industry exposures Exposure at default EAD (LHS) % of Group portfolio (RHS) % in non performing (RHS)1 % in high risk (RHS)1 For personal use only Agriculture, Forestry & Fishing $b Mining $b 40 15% 40 15% 30 30 10% 10% 20 20 5% 5% 10 10 0 0% 0 0% Sep-08 Mar-09 Sep-09 Sep-08 Mar-09 Sep-09
Slide 52: Commercial industry exposures
Commercial industry exposures Exposure at default EAD (LHS) % of Group portfolio (RHS) % in non performing (RHS)1 % in high risk (RHS)1 For personal use only Commercial property $b Property and business services2 $b 40 15% 40 15% 30 30 10% 10% 20 20 5% 5% 10 10 0 0% 0 0% Sep-08 Mar-09 Sep-09 Sep-08
Slide 53: Risk Grade Profiles and large industry exposures
Risk Grade Profiles and large industry exposures Group risk grade profile by Exposure at Institutional risk grade profile by For personal use only Default Exposure at Default 23% 5% 5% 4.4% 5.7% 6.3% 6% 5% 5% 12% 12% 12% 9.0% 8.9% 8.8% 16% 17% 17% 13.5% 13.0% 12.6% 64% 61% 61% 13.6% 13.8% 13.4% Sep
Slide 54: Australia Retail - secured portfolio remains well positioned
Australia Retail – secured portfolio remains well positioned Australia Mortgages 90 day delinquencies Mortgages Australia (Retail) For personal use only by State (% of GLA) 1.00% 50% LVR @ Origination - Sep08 LVR @ Origination - Sep09 40% LVR @ Current - Sep08 30% LVR @ Current - Sep09 0.80% 20% 10%
Slide 55: Australia Retail - unsecured portfolio tracking in line with prior year trends
Australia Retail – unsecured portfolio tracking in line with prior year trends Consumer Cards 90+ day arrears to Consumer Cards Utilisation (% of limit) For personal use only outstandings 60.00% 1.80% 40.00% 1.60% 20.00% 1.40% 1.20% 0.00% Mar-06 Dec-06 Sep-07 Jun-08 Mar-09 1.00% Low Rate Commercial
Slide 56: New Zealand: Provisioning levels increasing
New Zealand: Provisioning levels increasing as the impacts of recession percolate through the economy Provisions have grown from low levels Contribution to Collective Provision For personal use only NZ Geography (NZDm) Charge (NZ$m) 800 271 300 Scenario 600 250 Volume 400 200 Risk 150 200 112 100 0
Slide 57: New Zealand: Impaired assets increased, arrears reduced
New Zealand: Impaired Assets have increased however arrears have reduced 90 Days Past Due largely secured Non-performing loans For personal use only 2.00% NZ$445m 1200 Personal Housing 1000 1.50% Business 800 600 1.00% Rural 92% has security 400 0.50% coverage 200 SME 0 0.00% Unsecured 1H07 2H07 1H0
Slide 58: New Zealand: Commercial credit quality holding up, Rural deterioration
New Zealand: Commercial credit quality holding up but Rural showing deterioration. Rural portfolio remains very well secured. Commercial credit quality maintained Rural portfolio remains well secured For personal use only despite poor economic conditions 92% of portfolio Average Commercial Customer
Slide 59: Regional Performance
For personal use only 09 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED REGIONAL PERFORMANCE
Slide 60: Australia Region: Positive growth in the core Australian business
Australia Region: Positive growth in the core Australian business Reported NPAT impacted by statutory Significant contribution to Group For personal use only adjustments and higher provisions ($m) earnings 2,107 2,084 (1%) 1,416 Australia 1,244 68% Region 863 668 32% NZ, Asia Pacific, Europe & Ameri
Slide 61: Australia Region: Reported profit impacted by non core items
Australia Region: Reported profit impacted by a number of non core items Australia Region – Underlying NPAT ($m) 2009 $m For personal use only Reported NPAT 2,084 Economic hedging 229 Other (Revenue hedges and (7) 1,408 (172) organisational transformation) (357) Cash profit 2,306 (6%) (390) Credit i
Slide 62: Australia Region: Improved lending coverage through strong deposit growth
Australia Region: Improved lending coverage through strong deposit growth, while managing diversified portfolios 1 Customer Deposits ($b) YOY Diversified deposit mix For personal use only 153 16% Retail Deposits 8% 6% 3% 11% 147 4% 1% 133 48 49 (8%) Institutional 42 29 27 16% 30 Business Banking 77
Slide 63: Australia Division: Strong franchise, continuing to perform
Australia Division: Strong franchise, continuing to perform Maintained strongest customer Deepened customer relationships For personal use only % satisfaction1 of the major banks % (share of wallet2) 90 60 80 70 55 60 50 50 Aug-05 Aug-06 Aug-07 Aug-08 Aug-09 ANZ Peer 1 Peer 2 Peer 3 45 Points of con
Slide 64: Australia Division: Standout growth in Retail
Australia Division: Standout growth in Retail, Commercial performing in a difficult market, equity market impacting Wealth Australia Division – NPAT ($m) 2009 full year performance by segment For personal use only Profit Before Provisions ($m) 633 (75) (114) (366) Australia 3,744 13% (4%) 4% (41) Di
Slide 65: Australia Retail: Higher revenue growth and prudent balance sheet management
Australia Retail: Delivering higher revenue growth and prudent management of balance sheet Solid revenue growth with composition Measured mortgages and cards growth For personal use only impacted by higher funding costs ($m) Consumer Cards and Retail Mortgages ($b) 9% unsecured lending ($b) 7% 3% 10
Slide 66: Australia Wealth: Performance impacted by market conditions
Australia Wealth: Performance impacted by market conditions Increased scale in Wealth Management Investment and Insurance products Increase in E*Trade volumes 4% Year on Year For personal use only through the acquisition of ING JVs ● 40% Half on Half Structure ING Australia Other wealth businesses ●
Slide 67: Australia Commercial: Delivering 17% pre provision profit
Australia Commercial: Delivering 17% pre provision profit, NPAT impacted by difficult economic conditions for the middle market NPAT ($m) Comments: For personal use only 618 2% 631 ● Increase in margins from re-pricing for higher funding costs and risk 329 ● 7% Jaws in FY09 while continuing to inves
Slide 68: APEA: Strategically building our presence in the region
APEA : Strategically building our presence in the region 1 Banking in Asia since 1969 For personal use only Europe & America North East Asia Banking in the Pacific since 1880 • Region focussed on the • Institutional and NEA hub servicing of global established in Hong investment grade customers Kong,
Slide 69: APEA: Increasing contribution to Group earnings
APEA: Increasing contribution to Group earnings from a diversified portfolio, while continuing to invest in the region Strong NPAT growth (A$m) Diversified source of income For personal use only Significant (Earnings by segments %) Markets 702 62% income in Asia 1H09 Partnerships Institutional 433 1
Slide 70: APEA: Significant growth despite challenging economic conditions
APEA: Significant growth despite challenging economic conditions APEA region NPAT (A$m) ● NII growth underpinned by significant growth in our For personal use only 81% Markets business IP down ● NIM increased from 1.23% to 1.70% 385 (298) $6m, CP up $106m 373 (100) (47) 699 ● Positive jaws of 9% yea
Slide 71: APEA: Continued strategic investment in Retail and Wealth
APEA: Continued strategic investment in Retail and Wealth funded by strong Institutional and Partnerships performance FY09 NPAT full year growth (A$m) YoY NPAT For personal use only growth Geographic Segments Asia Partnerships Asia ● Continued strong growth in 143 378 61% contribution, particularly
Slide 72: APEA: Deposit led strategy delivering strong growth
APEA: Deposit led strategy delivering strong growth and funding the region‟s lending activities APEA Customer Deposits by geography Customer Deposits by business For personal use only (A$b) at Sep 09 (A$b) 36% 40 Transaction 29.6 30.5 Banking Markets 30 7.6 22.5 13.4 19.4 20 Wealth 10 3.4 0 Mar-08 S
Slide 73: APEA: Retail & Wealth businesses continue to invest in key markets
APEA: Retail & Wealth businesses continue to invest in key strategic markets to position for longer-term growth Revenue and expenses by region (A$m) Retail NLAs and customer deposits (A$b) For personal use only Revenue 25% YOY Expenses 36% YOY 502 50.2% 51.3% 47.3% LDR% 402 388 300 265 9.9 9.0 237 1
Slide 74: APEA: Institutional delivering significant earnings growth
APEA: Institutional delivering significant earnings growth from core customer banking relationships Income by Institutional business (A$m) Institutional NLAs and customer deposits For personal use only 69% 1,172 (A$b) 123.5% 88.9% 68.4% LDR% 800 693 684 600 488 25 21.4 325 368 19.7 20 16.9 17.5 400
Slide 75: APEA: Continued strong contribution from Asia Partnerships
APEA: Continued strong contribution from Asia Partnerships AMMB, BoT, Panin and SRCB NPAT contribution ($m) 331 Other Partnerships For personal use only 60 186 186 140 (60) 65 145 (30) 117 115 21 105 Acquisition adj. Actual reported Actual reported 1H09 v relating to BoT 2H09 adjusted Exchange - 69
Slide 76: New Zealand Region: faces some short-term performance headwinds
New Zealand Region: faces some short-term performance headwinds Strengths Short-term performance headwinds For personal use only New Zealand longer term economic performance Economy fragile in the near term GDP Growth Australia New Zealand • Recovering from five quarters of domestic recession 1998-2
Slide 77: New Zealand region: leveraging our market leadership
New Zealand region: leveraging our market leadership ANZ National has dominant market share Leading main bank customer share For personal use only ● Leads all key customer segments (Personal) ● Diversified business reflecting makeup of economy 17% 18% ● Strong franchise 17% 15% ANZ National market s
Slide 78: New Zealand Region: underlying revenue growth offset by higher provisions
New Zealand Region: growth in underlying revenues offset by significant increase in provisions and large non-core items New Zealand – Underlying NPAT (NZ$m) NPAT 2009 2008 For personal use only Statutory Profit 194 990 271 (90) Visa shares/tax conduit (240) 86 (50) MTM (24) 13 (589) ING NZ Settlemen
Slide 79: NZ region: lending and deposit growth reflect rebalancing of the economy
NZ region: lending and deposit growth reflect rebalancing of the New Zealand economy Customer Deposits (NZ$b) Market lending growth slowed in a move For personal use only 58 59 59 59 towards the required rebalancing in the economy 11 11 10 11 20 Annual % change Deposits 11 11 11 10 15 36 37 38 39 10
Slide 80: New Zealand Division: margin pressures and higher provisions
New Zealand Division (ex Institutional): margin pressures and significantly higher provisions driving profit decline across segments Underlying NPAT (NZ$m) Segment Profit Before Provisions For personal use only FY09 vs FY08 (NZ$m) 786 (124) NZ Division (Businesses) 8 (21) (492) 1,308 (6%) 1% 2% (9%)
Slide 81: New Zealand Retail & Wealth: dominant market share, short term headwinds
New Zealand Retail & Wealth: dominant market share, with some short term headwinds A family of strong brands For personal use only ● Acquisition of ING(NZ) delivers momentum to Wealth strategy: o Largest Kiwisaver market share o Second fastest growing life insurer ● Customer service successes: o ANZ
Slide 82: New Zealand Corporate: Solid franchise well positioned for growth
New Zealand Corporate: Solid franchise that is well positioned for future growth Revenue growth (NZ$m) Disciplined focus on key For personal use only strategic areas 4% (4%) ● Revenue impacted by margin pressure from ● Intensive risk management through deposit competition proactive, close, engagemen
Slide 83: New Zealand Rural: Medium term outlook remains steady
New Zealand Rural: Medium term outlook for Rural sector remains steady Rural Industry exposure Dairy and lamb prices have started to For personal use only recover $ per kg milk solids Lamb $ per head 10.0 Average lamb 100.0 70% 2% 8.0 schedule (RHS) 80.0 6% 6.0 60.0 3% 19% 4.0 40.0 Dairy payout (LHS
Slide 84: New Zealand Institutional: strong market positioning
New Zealand Institutional: strong market positioning supporting sound financial performance Strong revenue from core businesses Leveraging strong market positioning For personal use only supported by trading • Strong financial result as the business benefited NZ$m from global market volatility and f
Slide 85: Economic Forecasts
For personal use only 09 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED ECONOMIC FORECASTS
Slide 86: Summary of forecasts: Australia and New Zealand
Summary of forecasts: Australia and New Zealand Australia New Zealand For personal use only 2008 2009 2010 2011 2008 2009 2010 2011 GDP 3.2 0.6 2.6 3.1 1.5 -2.0 1.9 2.9 Inflation 4.2 2.1 2.21 2.32 5.1 1.7 2.1 3.1 Unemployment 4.2 5.8 6.6 5.4 4.3 6.3 7.0 6.7 Current A/C (% GDP) -5.7 -3.4 -4.4 -4.4 -8
Slide 87: Disclaimer
Disclaimer For personal use only The material in this presentation is general background information about the Bank‟s activities current 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 relied upon as advice to inv
Australia and New Zealand Banking Group — FY2009 Earnings Presentation on 6ix