Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Non-Deal Roadshow (September 2010)
85 slides from Anz's roadshow presentation, Sep 14, 2010
Slide 1: Investor Discussion Pack
For personal use only Investor Discussion Pack Mike Smith Chief Executive Officer AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED September 2010
Slide 2: ANZ has established a strong business foundation
ANZ has established a strong business foundation For personal use only A clear company wide focus on our super regional strategy: • Organised our business around three key geographies and our customers p. 3-17 • Maintaining strong businesses in our home markets: • Australia p. 18-25 • New Zealand p.
Slide 3: Overview and strategy
For personal use only Investor Discussion Pack AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED September 2010 Overview and strategy
Slide 4: ANZ is structured by Geography & Segment
ANZ is structured by Geography & Segment For personal use only Asia Pacific, Europe & America (APEA) Retail Commercial (including Wealth Institutional (emerging) partnerships) Australia Retail Wealth Commercial Institutional New Zealand Retail Wealth Commercial Institutional Institutional is a globa
Slide 5: Super Regional strategy progressing well
Super Regional strategy progressing well For personal use only TRANSFORM OUT PERFORM RESTORE • Institutional back • Quality on par with Create global leaders in our to system markets a leading Super • Restore “jaws” – • Best of breed Regional bank increase revenue faster than costs customer experien
Slide 6: Super Regional Strategy
Super Regional Strategy For personal use only Asian, Australian & New Zealand Australian 2 way trade weights interconnectedness increasing: US & Europe1 • Following and supporting our customers 25.0 Index to the region, developing relationships 20.0 to work both ends of the trade flows. 15.0 • Trade
Slide 7: Regional and intra-regional trade and investment flows are substantive
Regional and intra-regional trade and investment flows are substantive For personal use only Denotes two way trade flow (2008) FDI inward flow (USDb, 2008) Asia1-Europe Asia1-USA Trade: US$1.1trn Trade: US$1.0trn CN TW 108 5 IND HK 42 63 Pacific-Asia1 VN 8 Trade: US$7b INDON Intra-Asia1 8 Trade: US$
Slide 8: Building a genuinely pan regional business
Building a genuinely pan regional business - connectivity provides a competitive advantage For personal use only Growth in trade and capital flows between Asia Linked through flows of and Australia are tracking 17% to 25% pa trade, capital and population Surplus savings Key focus is to bridge gaps a
Slide 9: Disciplined approach to M&A – RBS Asia acquisition
Strategy is supported by a disciplined approach to M&A – RBS Asia acquisition For personal use only • Acquired RBS¹ businesses in six Country Business Branches Customers Deposits countries, aligned with current strategy: Taiwan Retail 21 ~1.3m ~US $2.5b Retail, wealth & commercial Commercial & 16
Slide 10: Disciplined approach to M&A - ING Australia and New Zealand Joint Ventures
Strategy is supported by a disciplined approach to M&A - ING Australia and New Zealand Joint Ventures For personal use only • Acquired ING Groep‟s (ING) 51% interest in ING Australia and ING NZ (the JVs) for $1,760m1 Australia ~11x multiple of normalised 2008 earnings2 Acquired ING's 51% in ING Au
Slide 11: Disciplined approach to M&A - Landmark Loan and Deposit book
Strategy is supported by a disciplined approach to M&A - Landmark Loan and Deposit book For personal use only Overview of transaction Overview of Landmark • Acquisition of Landmark Financial Services • Leading Australian agribusiness (LFS) loan and deposit book from AWB‟s rural company, offering mer
Slide 12: ANZ has continued to invest for growth
ANZ has continued to invest for growth notwithstanding recent tougher economic conditions For personal use only Revenue and Expenses Net Profit by region 17% 12% 12% 5% 4% 2% 4% 4% 9% 8% 9% 10% 6% 7% 7% 10% 14% 8% 8% 17% 23% 22% 22% 14% 6% 72% 66% 69% 64% 68% FY05 FY06 FY07 FY08 FY09 FY05 FY06 FY07
Slide 13: Deposit growth has exceeded lending growth in recent years
Deposit growth has exceeded lending growth in recent years For personal use only Group Customer Deposits ($b) Group Net Loans and Advances (including acceptances) ($b) Loan to Deposit Ratio Sep 2010 – 146% Loan to Deposit Ratio Sep 2006 – 171% 350 346 348 238 303 233 204 269 183 157 Sep 06 Sep 07 Se
Slide 14: Customer deposits by geography
Customer deposits by geography For personal use only Australia New Zealand (NZD) APEA (USD) FY07 FY08 FY09 1H10 FY07 FY08 FY09 1H10 FY07 FY08 FY09 1H10 20% 12% 14% (1%) 7% 5% 1% (1%) 25% 67% 31% 39% ($b) 200 Loan to Deposit Ratio Loan to Deposit Ratio Loan to Deposit Ratio 180 Mar 2010 - 168% Mar 20
Slide 15: Net loans and advances by geography
Net loans and advances1 by geography For personal use only Australia New Zealand (NZD) APEA (USD) FY07 FY08 FY09 1H10 FY07 FY08 FY09 1H10 FY07 FY08 FY09 1H10 ($b) 13% 14% 0% 3% 13% 11% (1%) (1%) 31% 98% (14%) 6% 350 Loan to Deposit Ratio Loan to Deposit Ratio Loan to Deposit Ratio Mar 2010 - 168% Ma
Slide 16: Diversified lending portfolio, weighted to secured mortgage portfolio
Diversified lending portfolio, weighted to secured mortgage portfolio For personal use only 1 Net Loans and Advances by product line (A$b) 348 18 Cards & Other 162 (A$b) Mortgages 13 Cards & Other 2 189 149 45 Mortgages 5 40 Australia NZ & APEA (A$b) 92 Insto 14 Commercial (ex rural) Commercial / 32
Slide 17: Our corporate responsibility framework is supporting business objectives
Our corporate responsibility framework is supporting business objectives across the region For personal use only “We are focused on growing our business responsibly, managing risks rather than taking them and approaching our role in society with a heightened sense of duty and care towards the custom
Slide 18: Australia Division
For personal use only Investor Discussion Pack AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED September 2010 Australia Division
Slide 19: High value strategy has delivered
High value strategy has delivered For personal use only Australia Division Revenue & Expense Australia Division growth1 Cost to Income Ratios 50% 40% 30% 20% 10% 2 0% 2007 2008 2009 1H10 3 ANZ Aust. Major Bank Peer Avg (ex ANZ) 1. 2005 to 2008 based on “Personal Division” structure, 2009 and 1H1 bas
Slide 20: Australia division: Investing in the business
Australia division: Investing in the business For personal use only Investing in the business Growing our Retail and Commercial Footprint • Acquired the remaining 51% of INGA and • Investment continues in metro and regional Landmark Assets & Liabilities areas to increase access to small business • 5
Slide 21: Super Regional strategy provides opportunities across our Australian business
ANZ‟s Super Regional strategy provides opportunities across our Australian business For personal use only Retail • By 2015 15% of the Australian population will be of In-country Business Migrant banking Asian origin platforms Development Managers • Student volume is driving much of the in-flow from
Slide 22: Compelling proposition has led to greater deposit market share
A compelling proposition has led to greater deposit market share through acquisition & account cross-sell For personal use only Leader in customer satisfaction1 Now leading in trial intention2 (day to day transaction accounts) % satisfied or very satisfied % of respondents Driving new account openin
Slide 23: Well positioned for mortgage growth
Well positioned for mortgage growth - strong customer satisfaction and trial intention, and robust credit quality For personal use only ANZ well placed with MFI Customer ANZ „punching above its weight‟ in Satisfaction1 trial intention2 Mortgage customers, % satisfied % of respondents ANZ has held ma
Slide 24: Our Wealth Business
Our Wealth Business For personal use only Relative wealth contribution to ANZ Market Share Group earnings ANZ ranking No 2 No 5 No 3 Peer 9% to 10% to 6% to 10% to range1 14% 16% 11% 12% 100% 80% 7.0% 60% Includes impact of 40% acquisition of 51% of 20% 6.0% ING Joint Venture 0% Planner Retail Inv.
Slide 25: Australian Commercial business
Australian Commercial business For personal use only Portfolio Growth Commercial net loans and advances including acceptances • Invested in providing customers greater access to $bn 43.8 43.8 46.2 small business specialists • Leveraged Institutional markets and trade expertise to bring cross-regiona
Slide 26: The Asia Pacific Europe & America Division
For personal use only Investor Discussion Pack AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED September 2010 The Asia Pacific Europe & America Division
Slide 27: Deep onshore presence and strong network model
Deep onshore presence and strong network model delivers connectivity to clients For personal use only Franchise Franchise Markets Network Core markets for Institutional, Commercial, Retail & Wealth Hubs • Greater China • Greater Mekong1 • India • Indonesia • Malaysia • Pacific Regional Business Hubs
Slide 28: Since 2008, we have prioritised our build out
Since 2008, we have prioritised our build out, enabling us to become a credible competitor For personal use only 1H 2008 Today • Institutional network • Pan-regional Institutional/commercial business • Formed partnership with • Top 4 foreign bank in Indonesia South and AmBank • Largest foreign bank
Slide 29: We are delivering on our strategic and financial commitments
We are delivering on our strategic and financial commitments For personal use only Strong funding growth APEA contribution to Group profit Net Loans & advances1, Deposits (USD b) % of underlying PBP & NPAT 37.4 Net Loans and Advances 20% Profit before provisions Reported Deposits 26.8 NPAT Normalise
Slide 30: Business strategy allows for efficient use of APEA's liquidity surplus
Business strategy allows for efficient use of APEA's liquidity surplus For personal use only • Focus on affluent and emerging affluent client segments Business Strategy • Building a substantive DCM and Cash Management capability and investor client base This focus allows us to: • Fund our own region
Slide 31: Becoming a top four Institutional bank in Asia Pacific
Becoming a top four Institutional bank in Asia Pacific For personal use only Customer Segments Value Proposition • Be a core wholesale bank to our clients Institutional • Leveraging our strengths: MNC / Regional Corporate – Regional network and connectivity – AA rating Commercial – Deep insights – g
Slide 32: Delivering for Institutional and our clients across Asia and the Pacific
We are delivering for Institutional and our clients across Asia and the Pacific For personal use only Regional Connectivity Examples • Mandated Lead Arrangers with BNP and European and US Multinational HSBC companies accessing Asia • USD411m (2.7x launch size)-maiden Asian syndication bond • Raised
Slide 33: Retail & Wealth and Private Bank to deliver local and regional banking
Our Retail & Wealth and Private Bank will deliver local and regional banking to the affluent in each market For personal use only • HNW, Affluent & Emerging Affluent Customer segments • Owners, management and staff of our institutional and commercial clients Position and Value Proposition • Three cr
Slide 34: Five key partnerships expand our organic agenda
Five key partnerships expand our organic agenda For personal use only Double play in high growth, high return market Partnership Model Focus on our key segments (Commercial, Affluent & Emerging Affluent) • Significant influence Scale (Number 5 by assets & deposits) in a closed market • Exposur
Slide 35: Organic growth a key driver of strategy
Organic growth a key driver of strategy For personal use only 2008 2009 2010 2011 2012+ Develop strategy and Continue organic Extend and deepen build business model growth with bolt-ons franchise • Build substantive Institutional • Organic growth anchored by • Deepen organic growth in business Insti
Slide 36: The New Zealand Division
For personal use only Investor Discussion Pack AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED September 2010 The New Zealand Division
Slide 37: ANZ market position in New Zealand
ANZ market position in New Zealand For personal use only ANZ position in New Zealand Two strong banking brands with a • ANZ holds a unique position in NZ powerful market presence • NZ‟s Largest full-service bank • ~33% of total NZ registered bank assets • Assets of NZ$124b and Liabilities of NZ$116b
Slide 38: Strategy to leverage ANZ's leading market position
Our strategy is to fully leverage ANZ‟s leading market position to deliver superior growth and returns For personal use only Our strategy is underpinned by a Leveraging leading market share program of initiatives. positions1 Our priorities include: 40% 33% 34% 34% • Aligning our services to customer
Slide 39: NZ Retail & Wealth: Lower provisions and ING acquisition driving profit
NZ Retail & Wealth: Lower provisions and ING acquisition driving profit For personal use only Supported customers through downturn; Underlying Performance1 NZDm received 2 Gold awards for Financial Wellbeing Half Year movement (1H10 vs 2H09) Programme at NEXUS awards Balance sheet growth flat, incom
Slide 40: NZ Corporate & Commercial Banking
NZ Corporate & Commercial Banking: conditions were stabilising at the half year but were still fragile For personal use only • Business conditions have stabilised but more Maintained Number 1 Market Share1 time is required for the full credit impacts of the downturn to work through; risk profile of
Slide 41: NZ Rural: some improvement in fundamentals
NZ Rural: some improvement in fundamentals For personal use only Current market situation Dairy and lamb price movement1 $ / head $ / kg • ANZ continues to support customers through the down turn 100 10 75 8 • We have seen a greater focus by borrowers on cash 6 flows, liquidity and a resolution by m
Slide 42: The Institutional Business
For personal use only Investor Discussion Pack AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED September 2010 The Institutional Business
Slide 43: Global Institutional business focus redefined
Global Institutional business focus redefined For personal use only Foundations laid in 2009 Revenue Contribution by Product • Strengthened the Institutional Leadership Team, additional team members with international experience • Starting to execute the technology and operations roadmap • Improving
Slide 44: Increased focus on core customers and geographies
Increased focus on core customers and geographies For personal use only Over 3,500 active Institutional and Corporate A single global team services customer customers supported by over 5,000 staff needs across the network • Corporate banking customers: t/over $40-400m • Global representation support
Slide 45: Well positioned - distinguishing through customer service & product offerings
Well positioned - distinguishing through customer service & product offerings For personal use only Well positioned business Strong ANZ product penetration • ANZ origins are in commercial banking • Customers have 5.7 products on average • Well established customer relationships • Achieves the highes
Slide 46: Financial position
Financial position For personal use only Underlying Profit and Loss Lending growth returned to more normalised levels in 2009 Revenue Profit before Provisions (Institutional NLA including Acceptances) ($m) Expenses Underlying NPAT ($bn) 5% CAGR 6 month Perform- ance Balance sheet mix ($bn) Deposits
Slide 47: Regional networks, superior insights & service underpin competitive advantage
Regional networks, superior insights & service underpin the competitive advantage For personal use only Competing globally requires Regionally Networked Model superior insights and service • A lead regional bank servicing clients with pan regional needs • A strong regional branch • Building platform
Slide 48: Predicated on disciplined execution
Predicated on disciplined execution For personal use only Implementation priorities Significant growth opportunities Estimated addressable Cash Management Sustained customer growth Revenue pools • Deepening relationships with existing 3500 active clients ($b) • Targeting a significant number of new
Slide 49: Priority segments – Natural resources & Agriculture
Priority segments – Natural resources & Agriculture For personal use only Natural resources Agriculture • Well positioned to develop a super regional • Growing soft commodity demand from Asia natural resources business linking Australian producers with Asian processors • Well positioned for Australi
Slide 50: Priority segments – Infrastructure
Priority segments – Infrastructure For personal use only • Goal to become a leading commercial Addressable revenue in APAC Infrastructure Bank in the Asia Pacific Infrastructure market set to grow to Region $5.5bn Debt Markets • Maintain dominant position in Australia and NZ and invest selectively i
Slide 51: Priority products – Cash Management & Trade
Priority products – Cash Management & Trade For personal use only Cash Management Trade • Vision to be a lead provider of pan-regional cash • Support trade flows between our core management solutions via a single transactional operating geographies interface • Build on strong market position in Aust
Slide 52: Priority products – Rates and FX; Commodities and Debt Capital Markets
Priority products – Regional Rates and FX; Commodities and Debt Capital Markets For personal use only Commodities Regional Rates and FX • Commodity revenue split: • Largest domestic markets business Hedging exposures of commodity producers and consumers ~ 60% of revenue • FX revenues growing at 40
Slide 53: ANZ #1 Syndicated Loan House In Asia-Pacific
ANZ #1 Syndicated Loan House In Asia-Pacific1 For personal use only • Nearly one in every five syndicated loan transactions in Asia-Pacific in 2009 was led by ANZ • #1 Mandated Lead Arranger in Asia-Pacific (ex Japan) for 2009 in terms of number of transactions • #1 Mandated Lead Arranger in Asia-Pa
Slide 54: Treasury
For personal use only Investor Discussion Pack AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED September 2010 Treasury
Slide 55: Capital position provides strength and flexibility
Capital position provides strength and flexibility to manage prudential change and fund business opportunities For personal use only Mar 10 FSA Mar 10 Mar 09 Sep 09 June 10 pro forma1 pro forma1 Core Tier 12 6.4% 9.0% 8.2% 11.1% 8.2% Tier 1 8.2% 10.6% 10.4% 13.5% 10.3% Total Capital 11.0% 13.7% 12.6
Slide 56: Reconciliation of ANZ's capital position to FSA Basel II guidelines
Reconciliation of ANZ‟s capital position to FSA Basel II guidelines For personal use only APRA regulations are more conservative than current FSA regulations, in that APRA requires: • A 20% Loss Given Default floor for mortgages (FSA: 10% floor) • Interest Rate Risk in the Banking Book (IRRBB) inclu
Slide 57: Group funding composition continues to improve
Group funding composition continues to improve, term wholesale debt issuance requirement remains stable For personal use only Funding composition improved • 81% of all funded assets financed by customer 21% 18% 14% liabilities, term wholesale debt (>1 year) and equity 6% 5% 9% 17% 13% 15% • Aggregat
Slide 58: ANZ maintains a consistent annual funding strategy
ANZ maintains a consistent annual funding strategy For personal use only Balanced term debt maturity profile • ANZ has a well balanced maturity profile and ($b) strong investor diversification, which results in a 30 manageable forward funding requirement 25 20 • Portfolio funding costs continue to i
Slide 59: Liquidity Position
Liquidity Position For personal use only Maintaining post GFC liquidity position • Prime liquid asset portfolio increased to ($b) $63b (from average $60b over FY09): Covers well in excess of 12mth offshore wholesale funding maturities Portfolio well diversified by geography & counterparty 7.4 7.
Slide 60: Regional treasury centres located in Asia Pacific Europe & America
Regional treasury centres located in Asia Pacific Europe & America For personal use only APEA deposit book 1H10 40 USD b Deposit pools managed through our Local currency treasury centres, majority of APEA deposits Statutory deposits in interchangeable currencies deposits, 30 liquidity & other deposi
Slide 61: Managing the Group's earnings denominated in non-AUD currencies
Managing the Group‟s earnings denominated in non- AUD currencies For personal use only USD and Asian local currency hedging position • NZD remains ANZ‟s most significant single • 1H10 revenues have been translated at an non-AUD currency revenue exposure average AUD/USD rate of 0.9060 • USD and Asian
Slide 62: 2010 Third Quarter Market Update
For personal use only Investor Discussion Pack AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED September 2010 2010 Third Quarter Market Update
Slide 63: ANZ Market Update - Nine Months to June 2010
ANZ Market Update - Nine Months to 30 June 2010 For personal use only • Unaudited Profit after tax • An unaudited underlying profit after tax for the nine months to 30 June 2010 of approximately $3.6 billion, 26% above the prior corresponding period (PCP) in 2009. • Third quarter unaudited underlyin
Slide 64: ANZ Market Update - Nine Months to June 2010
ANZ Market Update - Nine Months to 30 June 2010 For personal use only • Australia • Profit from the Australian business grew strongly PCP, assisted by the favourable impact of the acquisition of ING Group‟s 51% interest in ING Australia and lower provisions. • Mortgage lending was around 1.7 times s
Slide 65: Risk Management
For personal use only Investor Discussion Pack AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED September 2010 Risk Management
Slide 66: CP coverage strengthened from higher CP balance
CP coverage strengthened from higher CP balance and a reduction in Credit Risk Weighted Assets For personal use only Collective Provision Balance ($m) Total Credit Risk Weighted Assets 3,415 ($b) 3,000 3,037 2,822 2,742 257.8 249.2 250.8 234.0 229.8 Sep 08 Mar 09 Sep 09 Mar 10 June 10 220.4 CP & Tot
Slide 67: Rate of growth in total gross impaired assets is slowing
Rate of growth in total gross impaired assets is slowing For personal use only $m Institutional Impaired Assets Impaired Assets Greater than $10m 5,000 (by number of customers) 4,000 3,000 2,000 100% 1,000 0 90% Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 80% $m Commercial Impaired Assets 5,000 70% 4,000 60%
Slide 68: Australian Portfolios: 90+ Days Past Due
Australian Portfolios: 90+ Days Past Due For personal use only Australia Mortgages 90+ day Australia Cards delinquencies % of GLAs 90+ day delinquencies % of Gross Lending Assets (GLAs) 1.50% 1.50% 1.00% Total Portfolio NSW & ACT 1.20% QLD VIC 0.50% WA 0.00% 0.90% Oct-07 Apr-08 Oct-08 Apr-09 Oct-09
Slide 69: Australia Retail - Mortgages
Australia Retail - Mortgages For personal use only Portfolio Statistics Mortgage loss rates have remained low and well below Group averages • All lending is on a full recourse basis Individual Provision Loss Rates • Approvals require demonstrated Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 serviceability Gro
Slide 70: New Zealand – Provisions reducing from 2H09 highs
New Zealand – Provisions reducing from 2H09 highs, impaired loans reflective of protracted recovery For personal use only Total Provision Charge (NZDm) Total Impaired Loans (NZDm) and as % Gross Lending Assets 598 1.78% 194 330 291 63 1.21% 207 77 66 404 93 214 267 46 141 0.61% 47 1H08 2H08 1H09 2H0
Slide 71: Commercial Property Credit Exposure
Commercial Property Credit Exposure For personal use only Commercial Property Exposure Commercial Property Exposure GLA by Region (AUDb) by Sector 7.5% of Group GLA‟s Australia Offices Retail 29.6 28.2 Residential 27.2 0.8 26.7 0.8 26.1 Industrial 0.7 0.7 6.1 1.0 6.1 Tourism 6.6 5.2 5.9 Other New Ze
Slide 72: 1990's commercial property downturn characterised by oversupply
1990‟s commercial property downturn characterised by significant oversupply vs other downturns1 For personal use only Supply Pipeline as a % of Total Stock Australian CBD Office Market 40% 35% 30% 25% 20% 15% 10% 5% 0% Sydney Melbourne Brisbane Perth Adelaide 1982 Recession 1991 Recession 2001 Slowd
Slide 73: Economics
For personal use only Investor Discussion Pack AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED September 2010 Economics
Slide 74: Record population growth coupled with undersupply
Record population growth coupled with undersupply For personal use only Population growth vs. dwelling completions 225000 450,000 Annual population 400,000 gain (lhs) 200000 350,000 175000 300,000 250,000 150000 200,000 125000 150,000 Annual dwelling completions (rhs) 100,000 100000 76 78 80 82 84 8
Slide 75: Housing shortage has reached unprecedented levels
Housing shortage has reached unprecedented levels For personal use only Housing market balance „000 400 360 320 280 240 Underlying demand 200 160 120 Completions 80 Cumulative Shortage 40 0 -40 -80 Surplus 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 Sources: ABS, ANZ Economics and Markets Research
Slide 76: Recovery in dwelling prices has been broadly-based
Recovery in dwelling prices has been broadly-based For personal use only Australian dwelling prices Price index value 125 Top 20% 120 115 Middle 60% 110 Bottom 20% 105 100 95 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 76 Source: RP Data Rismark
Slide 77: Changing composition in those seeking finance approvals
Changing composition in those seeking finance approvals For personal use only Housing finance approvals (value) $b/mth First Home Buyers Upgraders (excl refinancing) 120 Investors (excl refinancing) 100 80 60 40 20 - 1992 1995 1998 2001 2004 2007 2010 Sources: ABS, RBA, ANZ Economics and Markets Res
Slide 78: Distribution of debt rather than aggregate debt is a key factor
Distribution of debt rather than the aggregate debt is a key factor… For personal use only Increased household debt has been And has been taken up by higher directed towards residential income households with the capacity property, not personal consumption to service Source: RBA paper “Aspects of Au
Slide 79: Complexion of household debt
Complexion of household debt For personal use only • Household debt up but also total assets held by households • Debt largely used to acquire assets • Financial assets (i.e. ex housing) now equivalent to 2.75 years of income up from 1.75 years of income in the early 1990‟s • Increased debt mostly t
Slide 80: Household incomes and consumption
Household incomes and consumption For personal use only Household disposable income & consumption % 10 Gross disposable income Consumption spending Savings rate 8 Forecasts 6 4 2 0 -2 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 Source: ANZ, RBA, ABS 80
Slide 81: Labour market is strong and supporting household confidence
Labour market is strong and supporting household confidence For personal use only Monthly employment and labour force growth, „000 people (trend) 40 Labourforce growth (trend) Employment growth (trend) 30 '000 change per month 20 10 0 -10 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Source: ABS
Slide 82: Economics – Forecasts
For personal use only Investor Discussion Pack AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED September 2010 Economics – Forecasts
Slide 83: Economic updates
Economic updates For personal use only Australia New Zealand 2009 2010 2011 2012 2009 2010 2011 2012 GDP 0.8 3.0 3.7 4.0 -2.4 1.9 2.6 2.8 Inflation 2.2 2.7 2.7 3.4 1.7 1.6 5.31 2.3 Unemployment 5.8 5.0 4.7 4.5 6.5 6.6 5.5 5.5 Current A/C (% GDP) -3.2 -3.4 -2.1 -3.6 -3.2 -4.0 -3.1 -3.6 Cash rate 3.00
Slide 84: Growth Forecasts – Asia
Growth Forecasts – Asia For personal use only 2007 2008 2009 2010 2011 2012 China 13.1 9.0 8.8 9.9 10.1 10.3 India 9.5 7.4 6.7 8.1 4.1 5.0 NIEs Hong Kong 6.4 2.4 -2.8 5.5 5.0 5.2 Korea 5.1 2.3 0.2 6.2 4.0 4.7 Singapore 8.5 1.8 -1.3 15.5 5.2 4.5 Taiwan 5.9 1.1 -2.0 11.3 7.0 5.7 ASEAN Indonesia 6.4 6.
Slide 85: For personal use only
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 investors or p
Australia and New Zealand Banking Group — Non-Deal Roadshow (September 2010) on 6ix