Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Debt Investor Presentation (May 2022)
93 slides from Anz's debt investor presentation, May 25, 2022
Slide 1: 2022 Half Year Results – Debt Investor Update
2022 HALF YEAR RESULTS HALF YEAR ENDED 31 MARCH 2022 DEBT INVESTOR UPDATE 25 MAY 2022 Approved for distribution by ANZ’s Continuous Disclosure Committee Australia and New Zealand Banking Group Limited 9/833 Collins Street Docklands Victoria 3008 Australia ABN 11 005 357 522
Slide 2: Contents
CEO and CFO Results Presentations Environment, Social & Governance (ESG) and Corporate Overview Divisional Performance CONTENTS Tea Risk Management Housing Portfolio Economics Key Contacts
Slide 3: Disclaimer & Important Notice
ANZ 2022 Half Year Results DISCLAIMER & IMPORTANT NOTICE Background information only The information set out in this document and any accompanying verbal presentation including any question and answer session and any documents or other materials distributed with the presentation (together, the "Pres
Slide 4: Disclaimer & Important Notice
ANZ 2022 Half Year Results DISCLAIMER & IMPORTANT NOTICE European Economic Area This document is not directed at, and no Securities will be offered, sold or otherwise made available to, any retail investor in the European Economic Area (the "EEA"). For these purposes, a "retail investor” means a per
Slide 5: Disclaimer & Important Notice
ANZ 2022 Half Year Results DISCLAIMER & IMPORTANT NOTICE Document subject to change The information contained in this document is provided as at the date of this document and is subject to change without notice. Neither the Bank, nor any of its affiliates, agents, employees or advisors intends or ha
Slide 6: Shayne Elliott, Chief Executive Officer
2022 HALF YEAR RESULTS SHAYNE ELLIOTT CHIEF EXECUTIVE OFFICER
Slide 7: Financial Performance Overview
ANZ 2022 Half Year Results FINANCIAL PERFORMANCE OVERVIEW 1H22 vs 2H21 vs 1H21 Statutory Profit ($m) 3,530 +10% +20% Cash Profit (continuing operations)! ($m) 3,113 -3% +4% Return on Equity (%) 10.0 -18bps +33bps Earnings Per Share - Basic (cents) 110.8 -2% +5% Dividend Per Share - 100% fully franke
Slide 8: Continued to Simplify the Bank, Resulting in Lower Run Costs
‘ANZ 2022 Half Year Results CONTINUED TO SIMPLIFY THE BANK, RESULTING IN LOWER RUN COSTS TOTAL EXPENSES ($b) 8.8 = 5.6 PRODUCTIVITY FOCUS . 1.3 {8 More digital customer sales Increased self service 45 46 77 73 0.8 0.9 Higher STP? rates Increased use of Cloud 3.7 3.7 Property rationalisation 1 + FY15
Slide 9: Investment Directed to Future Growth Opportunities
ANZ 2022 Half Year Results INVESTMENT DIRECTED TO FUTURE GROWTH OPPORTUNITIES TOTAL INVESTMENT SPEND ($m) INVESTMENT EXAMPLES * New retail platform ANZ Plus * Sustainable financing capabilities * New Retail FX proposition * Migration of apps to Cloud * Single customer service tool 1H20 1H22 HB Growt
Slide 10: Improved Australia Home Loan Performance
‘ANZ 2022 Half Year Results IMPROVED AUSTRALIA HOME LOAN PERFORMANCE HOME LOAN GROSS LOANS & ADVANCES! ($b) MEDIAN TIME TO FIRST DECISION? 269 265 264 275 281 278 278 3 days 7 days Simple applications Complex applications AUTO CREDIT PROCESSING DECISIONED CAPACITY 77% +30% ANZ branch applications? A
Slide 11: Exiting Non-Core Activities
ANZ 2022 Half Year Results EXITING NON-CORE ACTIVITIES MAR 2016 MAR 2022 Hl Non-core! ~] 8% ~5% |_| attra Hl Retail & Commercial of capital in non-core activities of capital in non-core activities Agreed the sale of 29 businesses, and reshaped the Institutional business, releasing over $13b in capit
Slide 12: Launched ANZ Plus
ANZ 2022 Half Year Results LAUNCHED ANZ PLUS oat as Congratulations Its official, welcome to ANZ Plus! Now, let’s set you up with a card. \ eee oat so Total sed © $18,622.38 Savings Jar Rainy Day $3,672.38 Home Deposit = \ ee FEATURES & CAPABILITIES ROLLED OUT Cumulative ~140 ~90 ~50 5 L Launch End
Slide 13: Intention to Implement a Non-Operating Holding Company (NOHC)
ANZ 2022 Half Year Results .) Ve INTENTION TO IMPLEMENT A NON-OPERATING HOLDING COMPANY (NOHC) * Intention to lodge a formal application with APRA, the Federal Treasurer & other applicable regulators to establish a NOHC * Should proposed restructure proceed a new listed parent holding company will b
Slide 14: Farhan Faruqui, Chief Financial Officer
2022 HALF YEAR RESULTS FARHAN FARUQUI CHIEF FINANCIAL OFFICER
Slide 15: Financial Performance
‘ANZ 2022 Half Year Results FINANCIAL PERFORMANCE CASH PROFIT (HoH) a $m 3,208 — Lv 3 0% L] 93 3,113 0 2,990 "204 | 212 || 1H22 vs 2H21 118 a | || + -98 CASH PROFIT (PCP) Flat BAU costs FX adj. & excluding * 4 % Cashrewards 2H21 | 1H22 1H22 vs 1H21 1H21 2H21 Large/ Income Markets BAU Investment — Pr
Slide 16: Sep 21 month: Mar 22
Sep 21 month: 159 Mar 22 month: 158
Slide 17: NIM Considerations
ANZ 2022 Half Year Results NIM CONSIDERATIONS 1 POSITIVES NEGATIVES Higher earnings on capital and replicated Competitive pressures deposit portfolio from rising interest rates = Oo] 2 s @ Zz Impact of higher swap rates on fixed rate Flexibility in a rising rate environment . mortgages (lag impact)
Slide 18: Capital & Replicated Deposit Portfolio
‘ANZ 2022 Half Year Results CAPITAL & REPLICATED DEPOSIT PORTFOLIO SENSITIVITY OF NII ON CAPITAL AND REPLICATING PORTFOLIO - BASED ON ANZ RESEARCH FORECAST? 2:3 MAR 2022 PORTFOLIO ($b) 142 Sensitive to short 37 term interest rates! " Sensitive to longer term interest rates (mainly 3-5 Years)? Mar 22
Slide 19: Australia Housing
‘ANZ 2022 Half Year Results AUSTRALIA HOUSING HOME LOAN BALANCE AND FLOWS ($b) HOME LOAN APPLICATIONS & PROCESSING CAPACITY Indexed data! 8 — 150 5 7) = LJ “i 7 278.0 278.4 130 -32 120 110 100 90 + 80 Sep 21 New Refi.In Redraw Refi.Out Repay Mar 22 Sep 20 Mar 21 Sep 21 Mar 22 Sales & Interest / Othe
Slide 20: Sustainability-Led Value Creation in Institutional
‘ANZ 2022 Half Year Results SUSTAINABILITY-LED VALUE CREATION IN INSTITUTIONAL A MAJOR REPONSIBILITY A MAJOR OPPORTUNITY ANZ DIFFERENTIATION 1st Australian bank to join the Net- Zero Banking Alliance of banks committed to aligning their portfolio with net zero by 2050 62% of $50b sustainable funding
Slide 21: Expenses
‘ANZ 2022 Half Year Results EXPENSES TOTAL (FX ADJ) t 2% 1H22 vs 2H21 BAU (FX ADJ) 0% 1H22 vs 2H21 Basis: Cash Profit, Continuing Operations excluding Large / Notable items Flat‘Run the bank’ costs (ex. Cashrewards) sm 67 14 97 4,423 22 4,445 10 7 | -95 { ms 760 t Investment Inline with expensed rat
Slide 22: Investment
ANZ 2022 Half Year Results INVESTMENT TOTAL INVESTMENT SPEND ($m) 1,058 811 752 15% 19% 20% 1,043 CAPITALISED SOFTWARE BALANCE ($m) 2,893 25% 46% 5% 1H20 2H20 1H21 2H21 72% expensed 79% expensed Hl Asset Lifecycle Mgmt Ml Regulatory, Compliance & Risk Basis: Continuing Operations 1H22 88% expensed S
Slide 23: Benefits of Our Investments
ANZ 2022 Half Year Results BENEFITS OF OUR INVESTMENTS VALUE DRIVER KEY INITIATIVES (EXAMPLES) SOS ©@ © © MODERN DIGITAL EXPERIENCES Better customer & employee experience and engagement 18351 Digital CX Banker experience Markets digitisation ACTIONABLE Better business decisions & customer insight Da
Slide 24: ESG & Corporate Overview
2022 HALF YEAR RESULTS ENVIRONMENT, SOCIAL & GOVERNANCE (ESG) & CORPORATE OVERVIEW DEBT INVESTOR UPDATE
Slide 25: Our ESG Related Disclosures
ANZ 2022 Half Year Results OUR ESG RELATED DISCLOSURES Business Institutional ‘ommun patticipation and diversity About us / ESG / Our approach @ Find ANZ 2 Support Centre SG Investor date on information & Ea “e ssewasonwane | Annual event to Climate Our ESG approach roms bre nvestorson Change Each y
Slide 26: Snapshot of Half Year ESG Target Performance
ANZ 2022 Half Year Results SNAPSHOT OF HALF YEAR ESG TARGET PERFORMANCE ESG target ENVIRONMENTAL SUSTAINABILITY Fund and facilitate at least AUSSO billion by 2025 towards sustainable solutions for our customers, including initiatives that help improve environmental sustainability, support disaster r
Slide 27: Help our customers & support transitioning industries
• • • • Help our customers & support • transitioning • industries Engage • Disclosing how we identify, assess and manage climate-related financial risks and opportunities using the Financial Stability constructively & Board Task Force on Climate-related Financial Disclosures (TCFD) recommendations t
Slide 28: Our Resources Portfolio
ANZ 2022 Half Year Results OUR RESOURCES PORTFOLIO RESOURCES PORTFOLIO (EAD! $b) THERMAL COAL MINING (EAD! $b) 2.0 15 1.0 05 0.0 Sep 15Sep 16Sep 17Sep 18 Mar Sep 19 Mar Sep20 Mar Sep 21 Mar 19 20 21 22 * Since 2015 our exposure to thermal coal mining reduced by ~75% + ANZ’s exposure to thermal coal
Slide 29: ESG Ratings
In 2021, ANZ received a rating of In 2021, ANZ received Prime status In 2021 received SAM Silver Class In 2021, ANZ received an ESG Risk Rating A (on a scale of AAA-CCC) in the with a rating of C (on a scale of A+ to distinction with a score of 85 (out of 100) in of 24.2 (out of 100, lower = better)
Slide 30: Corporate Profile
‘ANZ 2022 Half Year Results CORPORATE PROFILE 9 Founded in 1835 and headquartered in Melbourne Top 7 listed corporate in Australia and the largest bank in New Zealand by bank market share Consumer and corporate offerings in our core markets, and regional trade and capital flows across the region Mar
Slide 31: Balance Sheet Composition
‘ANZ 2022 Half Year Results BALANCE SHEET COMPOSITION EXPOSURE AT DEFAULT! EOP $b 1,103 103s eo = ce Mar 21 Sep 21 Mar 22 Basis: Continuing Operations 1. EADexcludes amounts for ‘Securitisation’ and ‘Other Assets’ Basel classes, as per APS330. Data providedis on a Post CRM basis, net of credit risk
Slide 32: Expense Management
‘ANZ 2022 Half Year Results EXPENSE MANAGEMENT TOTAL EXPENSES BY DIVISION ($b) 45 46 07 1H21 2H21 1H22 HM Australia R&C [Ml New Zealand Hl institutional Ml Other Basis: Continuing Operations TOTAL EXPENSES BY CATEGORY ($b) FULL TIME EQUIVALENT STAFF (000s) 1H21 2H21 1H22 Mar 21 Sep 21 Mar 22 Hl Pers
Slide 33: Effective as at 28 April 2022 Upper limit
1. Effective as at 28 April 2022 2. Upper limit
Slide 34: Large / Notable Items
ANZ 2022 Half Year Results LARGE / NOTABLE ITEMS CUSTOMER REMEDIATION Continuing Operations Pre-Tax $m 485 352 $853m provisions 86 ‘on Balance Sheet 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21 1H22 Net Interest Income [ll Other Operating Income Ill Expenses LARGE / NOTABLE ITEMS sm Cash Profit Divestmen
Slide 35: Divisional Performance
2022 HALF YEAR RESULTS DIVISIONAL PERFORMANCE DEBT INVESTOR UPDATE
Slide 36: Australia & New Zealand
ANZ 2022 Half Year Results AUSTRALIA & NEW ZEALAND USTRALIA GROSS NEW HOME LOAN ACCOUNTS - AUS! REGISTERED ANZ APP CUSTOMERS DIGITAL SALES - AUS. 000s m % of total retail sales 170 179 4.0 49% 51% 35 119 87 31 40% FY19 FY20 FY21 1H22 Mar 20 Mar 21 Mar 22 FY19 FY20 FY21 1H22 Min 2H NEW ZEALAND GROSS
Slide 37: Australia Retail & Commercial - Financial Performance
ANZ 2022 Half Year Results AUSTRALIA RETAIL & COMMERCIAL - FINANCIAL PERFORMANCE Balance Sheet Expenses / FTE Credit Quality / RWAs Profit and Returns NLAst (Sb) & NIM NI/OOI Contribution ($m) Total Provision Charge ($m) Cash Profit ($m) 342 340 341 4,553 4,607 4319 1,857 1,918 1,974 2,155 1911 1,80
Slide 38: Australia Retail
ANZ 2022 Half Year Results AUSTRALIA RETAIL CONTRIBUTION (MAR 22 $b) 341 263 116 285 147 30 Net Loans & Advances! Customer Deposits Total Income (1 commercial & Private Bank Ill Retail Income 8% 8% Expenses +11% +6% Profit Before Provisions “19% 16% Cash Profit 22% “10% Net Loans & Advances (NLA) “1
Slide 39: Australia Commercial & Private Bank (C&PB)
ANZ 2022 Half Year Results AUSTRALIA COMMERCIAL & PRIVATE BANK (C&PB) CONTRIBUTION (MAR 22 $b) CASH PROFIT DRIVERS - C&PB ($m) Net Interest income 341 ain 58 74 555 263 520 14 = “_ -_ 285 147 43 $9 8 116 56 13 Net Loans & Advances! Customer Deposits Total Income 2H21Cash Volume Margins Other Expense
Slide 40: Australia C&PB - Book Composition & Risk Weight Intensity
‘ANZ 2022 Half Year Results AUSTRALIA C&PB - BOOK COMPOSITION & RISK WEIGHT INTENSITY DIVERSIFIED PORTFOLIO - GEOGRAPHICAL VIEW Mar 22 % of Exposure at Default (EAD)! Mi victas QLD Ml ANT MM Nsw/act HWA Ml Other DIVERSIFIED PORTFOLIO - INDUSTRY VIEW Mar 22 % of Exposure at Default (EAD)" Hl comm. Pr
Slide 41: New Zealand Division - Financial Performance
ANZ 2022 Half Year Results NEW ZEALAND DIVISION - FINANCIAL PERFORMANCE Balance Sheet Expenses / FTE Credit Quality / RWAs Profit and Returns NLAs! (NZDb) & NIM NII/OOI Contribution (NZDm) Expenses (NZDm) Total Provision Charge (NZDm) Cash Profit (NZDm) 135 139 13 1,731 1,819 1,854 657 734 m1 819 79
Slide 42: New Zealand Division - Contribution & Profit Drivers
ANZ 2022 Half Year Results NEW ZEALAND DIVISION - CONTRIBUTION & PROFIT DRIVERS CONTRIBUTION (MAR 22 NZDb) 139 101 1.85 Net Loans & Advances ‘Customer Deposits CL Business [Ml Personal [ll Other Total Income Income +7% +2% Expenses +8% 3% Profit before provisions +6% +5% Cash Profit +2% +6% Net Loan
Slide 43: Institutional - Financial Performance
ANZ 2022 Half Year Results INSTITUTIONAL - FINANCIAL PERFORMANCE Balance Sheet Expenses / FTE Credit Quality / RWAs Profit and Returns 2,478 2,432 a 387 147 158 175 18: a 1171 1,149 1,210 a : a ae “all Mar21 Sep21. Mar 22 1H21 2H21 1H22 1H21 2H21 1H22 1H21 2H21 1H22 1H21 2H21 1H22 NLAs CF [Markets =
Slide 44: Institutional - Income & Asset Composition
‘ANZ 2022 Half Year Results INSTITUTIONAL - INCOME & ASSET COMPOSITION INCOME COMPOSITION! ($m) 2,387 14 927 1H20 2H20 1H21 2H21 1H22 HM Markets MM Pcm Trade MCF Mill Other Basis: Continuing Operations Excluding Large / Notable items 1. CF: Corporate Finance; Trade: Trade & Supply Chain; PCM: Paymen
Slide 45: Institutional - Credit Risk Weighted Assets (CRWA)
‘ANZ 2022 Half Year Results INSTITUTIONAL - CREDIT RISK WEIGHTED ASSETS (CRWA) CRWA AVERAGE! ($b) 167 159 mn 149 104 1H20 2H20 1H21 2H21 1H22 HM Markets MM Trade (cr Hl Other CRWA INTENSITY (EOP $b) 51.3% 52.0% 50.8% 48.5% 49.1% i - Mar 20 Sep 20 Mar 21 Sep 21 Mar 22 TM CRWA -— CRWA/EAD (ex Markets)
Slide 46: Institutional - Markets Income Composition
ANZ 2022 Half Year Results INSTITUTIONAL - MARKETS INCOME COMPOSITION MARKETS INCOME COMPOSITION ($m) MARKETS AVG VALUE AT RISK (99% VaR $m) 100 Non-tradedVak increased in FY20 with 80 COVID-elated volatility and then 30 higher HOLA, and since has continued toflatten to 1H22 60 20 21 40 19 940 ‘Trad
Slide 47: Treasury
2022 HALF YEAR RESULTS TREASURY DEBT INVESTOR UPDATE
Slide 48: Regulatory Capital
‘ANZ 2022 Half Year Results REGULATORY CAPITAL CAPITAL UPDATE © Level 2 CET1 ratio of 11.5% and 18.0% on an Internationally Comparable basis', above APRA’s ‘Unquestionably Strong’ benchmark2, CET1 reduction in the half mainly driven by: o Higher underlying CRWA from core lending growth in Institutio
Slide 49: Regulatory Capital
ANZ 2022 Half Year Results REGULATORY CAPITAL Capital Level 2 CET1 capital ratio 12.4 11.5 Level 2 CET1 HoH mvmt 110 bps -10 bps -81 bps Additional Tier 1 capital ratio 19 2.0 17 Tier 1 capital ratio 14.3 14.3 13.2 Tier 2 capital ratio 4.0 41 3.4 Total regulatory capital ratio 18.3 18.4 16.6 Leverag
Slide 50: Internationally Comparable Regulatory Capital Position
ANZ 2022 Half Year Results INTERNATIONALLY COMPARABLE! REGULATORY CAPITAL POSITION LEVEL 2 CAPITAL RATIO (APRA VS INTERNATIONALLY COMPARABLE)? (%) 25.7 263 249 5.2 54 24 16.6 34 17 18.1 115 Int. Comparable APRA Int. Comparable APRA Int. Comparable Mar 21 Sep 21 Hl common Equity Tier 1 Il Additional
Slide 51: CET1 Ratios and Leverage
ANZ 2022 Half Year Results e Ve CET1 RATIOS! LEVERAGE!23 0% 5% 10% 15% 20% 25% 0% 1% 2% 3% 4% 5% 6% 7% 8% SEB Bi Svenska Handelsbanken oss Swedbank Nordea UOB pantt2twest intesatabonank anske Ban Intesa Sanpaolo Credit Agricole Group PBS Rabobank Raiffeisen Bank Intl Morgan Stanley Credit Suisse ‘AB
Slide 52: Balance Sheet Structure
BALANCE SHEET STRUCTURE! Pro forma NSFR is ~119% once RSF benefit associated with TFF and CLF? is removed NSFR MOVEMENT (%) 42 oo i 01 123.1 Retail/ Loans Capital& + LTDebt —FI/Bank = Othe?’ = Mar 22 Corp/ Hybrids &Repo Operational Deposits NSFR COMPOSITION (Mar-22 $b) Sep 21 583 Non-Financial Corpo
Slide 53: Liquidity Coverage Ratio (LCR) Summary
‘ANZ 2022 Half Year Results LIQUIDITY COVERAGE RATIO (LCR) SUMMARY! MOVEMENT IN AVERAGE LCR SURPLUS? ($b) LCR COMPOSITION (AVERAGE 1H22, $b) (oH | rtH22 | LAVG LCR 13690 | 1“ LAWG LER 13200 | eral RNS other ALAS Co — 58 1 a a4 ale fund mer deposits &othert 2H21 cP Liquid — Retail/SME Corp/Fl/ Wholes
Slide 54: Term Wholesale Funding Portfolio
‘ANZ 2022 Half Year Results i} Ve TERM WHOLESALE FUNDING PORTFOLIO! ISSUANCE ($b) MATURITIES ($b) 32 : 31 24 25 : -" LI Zz = | : : : i 4 a || So FYI6 FYI7 FYI8 FYI9 FY20 Fy21 1H22 2H22 FY23 FY24 FY25 FY26 FY27 FY28+ TM senior Unsecured Ml Covered Bonds [ll Tier'2 MM aves Miter MMB NZFLP/TLF PORTFOLI
Slide 55: ANZ's Tier 2 Capital Profile
‘ANZ 2022 Half Year Results Ve 3 ANZ’S TIER 2 CAPITAL PROFILE! ANZ’S TIER 2 CAPITAL REQUIREMENT TO PROGRESSIVELY TIER 2 CAPITAL (NOTIONAL AMOUNT) INCREASE TO MEET TLAC REQUIREMENT + ANZ.BGL issued $11.4b since July 2019 across AUD, EUR, GBP, and USD muso + Future 2 issuance needs expected to be appr
Slide 56: Capital & Replicating Deposits Portfolio
ANZ 2022 Half Year Results CAPITAL & REPLICATING DEPOSITS PORTFOLIO AUSTRALIA (%) Portfolio Earnings Rate isa combination 5 year AUD Swap 25 of term swap rates hedged component) Rate increased 20 ‘& 3mth BBSW (unhedged) ~160bps over 1H22 15 1.0 0.5 0.0 Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan
Slide 57: Basel III CET1 Reforms and TLAC Finalisation
ANZ 2022 Half Year Results BASEL III CET] REFORMS AND TLAC FINALISATION APRA CET1 REFORMS * Revisions to capital framework finalised in November 2021 + Implementation on 1 January 2023 * The reforms will result in changes to the calculation and presentation of capital ratios * APRA has stated that t
Slide 58: Capital & Liquidity Framework
ANZ 2022 Half Year Results CAPITAL & LIQUIDITY FRAMEWORK' 1 First Half CY2022 Second Half CY2022 CcY2023 Implementation Date RBNZ Capital Framework Transition Leverage Ratio Standardised Approach to Credit Risk Internal Ratings-based Approach to Credit Risk Operational Risk Fundamental Review of the
Slide 59: Risk Management
2022 HALF YEAR RESULTS RISK MANAGEMENT DEBT INVESTOR UPDATE
Slide 60: Long Run Provisions & Loss Rates
ANZ 2022 Half Year Results LONG RUN PROVISIONS & LOSS RATES TOTAL CREDIT IMPAIRMENT CHARGE ($m) 1,800 1,500 1,200 900 600 300 0 -300 -600 -900 1HO8 2HO8 1HO9 2HO9 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 HM Consumer
Slide 61: Individual Provision (IP) Charge
‘ANZ 2022 Half Year Results INDIVIDUAL PROVISION (IP) CHARGE IP CHARGE ($m) IP CHARGE BY DIVISION ($m) 626 626 3 - 214 29847, 85 zgp 74 280268300 “12 1H18—-2H18. = TH19.— 2H19.—1H20.—-2H20.—1H21—2H21—1H22 1H18-2H18. = THI9.- 2H19.—1H20.— 2H20.—1H21.— 2H21— 122 Hi New Ml increased Writebacks & Recove
Slide 62: Collective Provision (CP) Balance & Charge
‘ANZ 2022 Half Year Results COLLECTIVE PROVISION (CP) BALANCE & CHARGE CP CHARGE ($m) 1H21 | 2H21 | 1 CP charge 13 4 1048 669 -678 -145 -371 Volume/Mix 28 510461998398 Change in Risk 4019 17 44-112, 41172 see one 99311124 106-417-3137 Additional overlays 48 5-93 6855010138 1. CPasa.% of Credit Risk
Slide 63: Collective Provision (CP) Balance
ANZ 2022 Half Year Results COLLECTIVE PROVISION (CP) BALANCE CP BALANCE BY DIVISION ($b) PROVISION BALANCE BY STAGE ($b) Mar 19] Sep 19 | Mar 20 | Sep 20 | Mar 21 | Sep 21 | Mar 22 31 Mar 21 31 Mar 22 Australia R&C 1.83 1,80 2.32 2.85 2.33 2.23 1.89 3.0 3.0 Institutional 1.13 1.17 1.59 1.51 1.36 1.3
Slide 64: Portfolio Composition and Coverage Ratios
ANZ 2022 Half Year Results PORTFOLIO COMPOSITION AND COVERAGE RATIOS PORTFOLIO COMPOSITION Gross Loans and Advances Credit RWA Exposure at Default! Exposure at Default! Expected Credit Loss (ex Sovereign & Bank) (Collective Provision balance) $1,102.66 $3.8b 1%: $655.0b : $813.1b 55% 43% $348.8b 19%
Slide 65: Expected Credit Loss - Economic Scenarios: Modelled Outcomes
ANZ 2022 Half Year Results EXPECTED CREDIT LOSS - ECONOMIC SCENARIOS: MODELLED OUTCOMES (COLLECTIVE PROVISION BALANCE SCENARIOS)' MAR 22 ($m) Weightings to scenarios to determine CP balance ECONOMIC SCENARIOS 5% 40% 45% 10% 31 March 22 4859 AUSTRALIA GDP change? 3,757 3,896 ; Unemployment rate* Addi
Slide 66: Impaired Assets
‘ANZ 2022 Half Year Results IMPAIRED ASSETS CONTROL LIST (INDEX SEP-16 =100) 150 100 — 50 0 Sep Sep Sep Sep Sep Sep Mar 16 7 18 19 20 21 22 — Control List by Limits == Control List by No. of Groups GROSS IMPAIRED ASSETS BY DIVISION ($m) 4,000 0.34% 0.35% 0.39% 0.40% 0.31% 0.26% 3,000 2,599 2,034 2,1
Slide 67: Risk Weighted Asset (RWA)
ANZ 2022 Half Year Results RISK WEIGHTED ASSET (RWA) TOTAL RWASs ($b) 438 416 Mar 18 Mar 19 Mar 20 Mar 21 Sep 21 Mar 22 HM Aus. R&cCRWA BBBNZCRWA Other CRWA HM Instit.CRWA [fil] Mkt. &IRRBB RWA [ll Op-RWA Includes a reduction in credit RWA forthe sale of ANZ’s Merchants Acquiring Business to the joi
Slide 68: Risk Weighted Assets & Exposure at Default Composition
‘ANZ 2022 Half Year Results RISK WEIGHTED ASSETS & EXPOSURE AT DEFAULT COMPOSITION! EAD COMPOSITION ($b) EAD & CRWA MOVEMENT ($b) Mar 22 vs Sep 21 FX adjusted 28.9 1,103 Z 138 4% 77 0.1 - on |hClUu 0.2 13° 05 28% — Aus.R&CHL Aus. R&C Non HL NZ Institutional Other HM CRWA Volume / Mix? Il EAD growth
Slide 69: Total Portfolio Composition
ANZ 2022 Half Year Results TOTAL PORTFOLIO COMPOSITION EXPOSURE AT DEFAULT (EAD) DISTRIBUTION TOTAL GROUP EAD (Mar 22) $1,103b' Category % of Group EAD' % of Impaired Assets to EAD! Impaired Assets Balanc ica [57 ir | 0.1 Consumer Lending 41.1% 40.1% 39.3% 0.1% — 0.1% $378m Finance, Investment & Ins
Slide 70: Commercial Property - Segments of Interest
ANZ 2022 Half Year Results COMMERCIAL PROPERTY - SEGMENTS OF INTEREST OUTSTANDINGS BY REGION (GLA $b) 73% 6.3% - 477 24 37.6 3.0 Mar 18 Mar 19 Mar 20 Mar 21 Sep 21 Mar 22 =—® % of Group GLA(RHS) [ll Australia [I New Zealand International + Australian volumes driven by higher lending to the Industria
Slide 71: Size & Tenor by Market of Incorporation; Industry Composition
‘ANZ 2022 Half Year Results Ve SIZE & TENOR BY MARKET OF INCORPORATION ($b) INDUSTRY COMPOSITION 1 EAD Mar 22' Hl Finance 472 I Government Administration & Defence 450 Property & Business Services 1 I Services To Finance & Insurance 400 AS472b 1 Manufacturing 350 (Mar 22) Hl Wholesale Trade Transpor
Slide 72: ANZ Asian Institutional Portfolio
‘ANZ 2022 Half Year Results ANZ ASIAN INSTITUTIONAL PORTFOLIO (MARKET OF INCORPORATION) MARKET OF INCORPORATION ANZ CHINA COMPOSITION 1 23% AS117b" (Mar 22) AS21b" (Mar 22) Wi china I South Korea Wl Japan HM india Singapore Indonesia Tl Hong Kong (SAR) Hill Other MB Taiwan Wi Finance I Services to F
Slide 73: Housing Portfolio
2022 HALF YEAR RESULTS HOUSING PORTFOLIO DEBT INVESTOR UPDATE
Slide 74: Australia Home Loans - Portfolio Overview
ANZ 2022 Half Year Results AUSTRALIA HOME LOANS - PORTFOLIO OVERVIEW Number of Home Loan accounts Total FUM Average Loan Size* % Owner Occupied? 1% Investor® 1% Equity Line of Credit® 1% Paying Variable Rate Loan? % Paying Fixed Rate Loan’ 1% Paying Interest Only® % Broker Originated Portfolio! 971k
Slide 75: Australia Home Loans - Portfolio Composition
‘ANZ 2022 Half Year Results AUSTRALIA HOME LOANS - PORTFOLIO COMPOSITION HOME LOAN FLOWS (GROSS LOANS & ADVANCES! $b) 13 49 " 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21 1H22 Tl New Sales MI Net OFI Refinance [ll] Redraw & Interest Il Repay / Other Based on Gross Loans and Advan
Slide 76: Portfolio Flow 3,4 Portfolio
Portfolio Flow3,4 Flow3,4 Portfolio Flow3,4 Portfolio Flow3,4
Slide 77: Home Loans Repayment Profile
ANZ 2022 Half Year Results Ve HOME LOANS REPAYMENT PROFILE! HOME LOANS ON TIME & <1 MONTH AHEAD PROFILE? 68% of accounts ahead of repayments % composition of accounts (Mar 22 vs Mar 21) 33% 30% x New Accounts: ‘ Less than 6 months old 43 Structural: Loans that restrict ° payments in advance e.g. fix
Slide 78: Australia Home Loans - Dynamic Loan to Value Ratio (DLVR)
‘ANZ 2022 Half Year Results AUSTRALIA HOME LOANS - DYNAMIC LOAN TO VALUE RATIO (DLVR) DLVR BASED ON PORTFOLIO BALANCES 123.4 (%) DLVR BASED ON TOTAL PORTFOLIO ACCOUNTS 12:3:45 (%) 60 60 55 55 50 50 45 45 40 40 35 35 30 30 25 25 20 20 15 15 ; ofl ; Alle Be. oo Sim (i |_| | ee 61-75% 76-80% 81-90% 91-
Slide 79: Home Loans 90+ DPD; Home Loan Delinquencies
ANZ 2022 Half Year Results e Ve HOME LOANS 90+ DPD (BY STATE)!2 HOME LOAN DELINQUENCIES!23.4 % of Portfolio Segment Balances % of Portfolio Segment Balances 3 25 -- 1 ~-~~--- ol 20 ‘Mar Sep Mar Sep Mar Sep Mar Sep Mar 18 18 19 19 20 20 21 21 22 ~ = 30+DPD% — 90+ Owner Occupied — 90+ Investor Vs HOME
Slide 80: New Zealand Home Loans - Portfolio Overview
ANZ 2022 Half Year Results NEW ZEALAND HOME LOANS - PORTFOLIO OVERVIEW a Number of Home Loan Accounts Total FUM Average Loan Size % Owner Occupied % Investor % Paying Variable Rate Loan % Paying Fixed Rate Loan % Paying Interest Only % Paying Principal & Interest % Broker Originated Portfolio 531k 5
Slide 81: New Zealand Loans - Home Lending & Arrears Trends
‘ANZ 2022 Half Year Results NEW ZEALAND LOANS - HOME LENDING & ARREARS TRENDS HOME LOAN LVR PROFILE! HOUSING FLOWS HOUSING PORTFOLIO 45% 89% 89% 55% 1H20 1H21 1H22 Mar 20 Mar 21 Mar 22 Hl Proprietary Ill Broker MM Fixed Ml Variable HOUSING PORTFOLIO BY REGION? MARKET SHARE 30.7% 30.6% 30.7% HM 0-60%
Slide 82: Economics
2022 HALF YEAR RESULTS ECONOMICS DEBT INVESTOR UPDATE
Slide 83: Australian Economy Forecast Table
ANZ 2022 Half Year Results AUSTRALIAN ECONOMY FORECAST TABLE PO “ “ “ _ anal ee Australia — annual % growth GDP 28 9 22 Headline CPI (% y/y) 19 1.6 08 29 46 28 Employment (% y/y) 23 22 -1.0 22 47 24 Unemployment (% Q4 avg) 5.0 5.2 68 47 33 33 Wage Price Index 23 22 14 23 3.5 40 RBA cash rate (% year
Slide 84: Australian Economy - GDP
ANZ 2022 Half Year Results AUSTRALIAN ECONOMY - GDP GDP GROWTH! Year-ended olla] Quarterly -8 19962001 2006-2011 2016 2021 Source: ABS CAPITAL EXPENDITURE INTENTIONS? NOMINAL Sb Mining Non-mining 150 National accounts 4201 Previous Estimates Sources: 1. RBA Chart Pack, May 2022 2. RBA Statement on M
Slide 85: Australian Economy - Income and Savings
ANZ 2022 Half Year Results AUSTRALIAN ECONOMY- INCOME AND SAVINGS CHANGE IN HOUSEHOLD INCOME! SINCE DECEMBER QUARTER 2019 $b) sb Total Mil Unincorperated businesses lll Social assistance MlLabour li Financial income mOther™ 40) 40 20) 20 ) lo -20' -20 M J s D M J s D 2020 2021 Sources: ABS; RBA HOUS
Slide 86: Australian Economy - Inflation
Slide 87: Australian Labour Market
Slide 88: Commodities
Slide 89: Australian Housing Dynamics
Slide 90: First Home Owners' Boost
First Home Owners’ Boost NSW & Victoria reduce stamp duty
Slide 91: Australian Housing Dynamics
Slide 92: Australian Housing - Household Debt and Income
Slide 93: Key Contacts
Australia and New Zealand Banking Group — Debt Investor Presentation (May 2022) on 6ix