Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — FY2014 Earnings Presentation
150 slides from Anz's earnings presentation, Oct 31, 2014
Slide 1: 2014 Full Year Results
2014 FULL YEAR For personal use only RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 31 October 2014 Results Presentation & Investor Discussion Pack
Slide 2: Index
Index Full Year Result Overview For personal use only CEO Presentation 3 CFO Presentation 15 Treasury 42 Risk Management 53 ANZ Overview 75 Divisional Performance Australia Division 83 New Zealand Division 99 Global Wealth Division 112 International and Institutional Banking Division 120 Case Study:
Slide 3: CEO Presentation - Mike Smith
2014 FULL YEAR For personal use only RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 31 October 2014 Mike Smith Chief Executive Officer
Slide 4: Financial performance
Financial performance For personal use only FY14 Result 2014 2013 Growth Statutory Profit ($m) 7,271 6,310 up 15% Cash Profit ($m) 7,117 6,492 up 10% Cash Earnings per Share (cents) 260.3 238.3 up 9% Cash Return on Equity (%) 15.4 15.3 CET1 (%) 8.8 8.5 • Clean results in a challenging environment •
Slide 5: ANZ today: a more customer focused, diversified bank
ANZ today is a more customer focused, regionally diversified, efficient and sustainable bank • Strengthened key customer For personal use only 5 year FY14 FY09 CAGR ($b) ($b) segments in Australia and NZ Revenue 7% 19.6 13.9 • Invested in regional footprint Expenses 7% 8.8 6.2 • Created a more effic
Slide 6: Strategy and business settings right for the environment outlook
ANZ‟s strategy and business settings are right for the environment outlook For personal use only • Anticipated an environment of modest domestic growth, but still strong regional opportunities • Risk environment to remain benign • Shift in orientation of domestic growth from consumer to business seg
Slide 7: Super Regional Strategy
SUPER REGIONAL STRATEGY For personal use only STRONG PROFITABLE ENTERPRISE CORE ASIAN APPROACH MARKETS GROWTH STRONG LIQUIDITY AND CAPITAL MANAGEMENT DISCIPLINED AND EXPERIENCED MANAGEMENT CEO PRIORITIES FY14-16 Improving Diversifying Improving Improving customer revenue productivity returns experie
Slide 8: Growth and efficiency drive core market earnings
STRONG Growth and efficiency drive core market earnings CORE MARKETS For personal use only Consecutive qtrs home Delivering leading 18 loan growth in Australia digital solutions Lending growth in small $ transactions 16% 100b on goMoney3 business Australia Customer # Wealth solutions sold Grow by
Slide 9: Strong diversified Asian business a competitive advantage
PROFITABLE Our strong diversified Asian business a competitive advantage ASIAN GROWTH For personal use only Maintaining strong Asian …increasing earnings …while balancing risk revenue growth… diversification… and return. Asia Revenue Institutional Revenue IIB Asia FY14 % change (Fx adj) (FY14 - % to
Slide 10: Enterprise investments delivering long term productivity gains
Enterprise investments delivering long term productivity gains ENTERPRISE APPROACH For personal use only Regional Delivery Network driving More than 5 years of accelerated sustained productivity benefits investment is paying off $m Annual spend1 1,000 0 • Anticipated the changing business environmen
Slide 11: Business implications of outlook
Business implications of outlook For personal use only • Maintain the cost and return targets set for FY16 and the disciplines they impose across our business • Aim for continued share growth in consumer segments in Australia and New Zealand Moderate credit growth > good credit quality > strong co
Slide 12: Regulation and the FSI
Regulation and the FSI For personal use only • We all benefit from a strong, well managed banking system • Regulatory settings have strengthened markedly since the GFC • Australia has a very sound, well regulated financial system. • An approach that combines strong regulatory and supervisory framewo
Slide 13: Australian Banks – how strong, how safe
Australian Banks – how strong, how safe At 30 September 2014 ANZ had ~$56bn in loss absorbency For personal use only Annual • Australia has an inherently low risk pre-provision banking system. cash profit $10.8bn • APRA capital settings are more Provision overlays conservative than global standards2
Slide 14: Building a better bank for customers and shareholders
Building a Building a For personal use only better bank better bank for customers for shareholders CEO PRIORITIES FY14-16 Improving Diversifying Improving Improving customer revenue productivity returns experience FY16 FINANCIAL OUTCOMES Above peer growth CTI <43% ROE of 16%+ 14 14
Slide 15: CFO Presentation - Shayne Elliott
2014 FULL YEAR For personal use only RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 31 October 2014 Shayne Elliott Chief Financial Officer
Slide 16: Headline results
Headline results FY14 2H14 For personal use only v 1H14 $m v FY13 $m Annualised Revenue 19,578 6.5% 9,910 5.1% Expenses 8,760 6.1% 4,474 9.0% PBP 10,818 6.7% 5,436 2.0% Provisions 989 -17% 461 -24% Tax 2,700 11% 1,367 5% Cash Profit 7,117 10% 3,602 5% Stat. adjustments 154 277 Statutory Profit 7,271
Slide 17: FX and divestment impacts
FX and divestment impacts FY14 FX and For personal use only Cash Trustees SSI Divestment $m FX1 Profit 2H14 2H14 Adjusted Growth Growth Revenue 6.5% +336 +125 -21 4.0% Expenses 6.1% +222 -125 1.8% PBP 6.7% +114 - -21 5.8% Provisions -17% +13 - -18% Tax 11% +18 -4 -14 11% NPAT 10% +83 +4 -7 8% 1. Imp
Slide 18: The operating environment
The operating environment Very low rates For personal use only Excessive global liquidity Very low market volatility Retail Corporate Environment: Solid housing market Weak confidence Strong savings Low leverage Improving system growth Low credit demand Slow credit growth Medium credit growth Impact
Slide 19: Impacts and outcomes – half on half
Impacts and outcomes – half on half For personal use only 1H14 v 2H131 2H14 v 1H141 Revenue Expense Revenue Expense Retail2 2.1% 0.6% 3.9% 1.6% Corporate ex. Markets -1.2% 0.5% 1.7% -1.6% Partnerships 4.9% nm 6.3% nm Total 0.6% 0.5% 3.0% 0.3% Global Markets 21.6% 5.6% -9.1% 0.7% Total Group3 2.7% 0.
Slide 20: Cash profit – Divisional drivers
Cash profit – Divisional drivers $m For personal use only 83 7,117 99 16 7,037 230 3 17 217 6,492 8% 9% 10% -4% 8% 10% FY13 Aus. IIB NZ Global GTSO & FY14 Divest- FX FY14 Cash Wealth Group Divisional ments impact Cash Profit Centre Profit 1H14 annualised1 4% 19% 12% -30% 10% 13% 2H14 annualised1 17%
Slide 21: Australia Division – high quality consistent growth
Australia Division – high quality consistent growth Quality Retail growth Quality Commercial growth For personal use only $b $b 2.03 88% 87% 87% 87% 88% 1.95 1.97 1.97 1.91 213 221 67 199 206 65 65 193 63 61 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 1 NLAs NIM (%) NLAs EA
Slide 22: New Zealand Division – strong productivity dividend
New Zealand Division – strong productivity dividend Quality Commercial growth For personal use only NZDb NZDb 2.63% 2.61% 2.62% 2.65% 87% 88% 91% 92% 93% 2.52% 57.3 59.4 52.7 53.6 55.2 36.4 36.9 37.1 35.5 35.8 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 NLAs NIM NLAs 1 EAD
Slide 23: Global Wealth – focused on sales and efficiency
Global Wealth – focused on sales and efficiency For personal use only Wealth customers Retail Life lapse rates FUM net flows m Australia 25% $m 1,123 14.5% 14.1% 2.0 13.3% 330 1.6 12.1% 12.5% (288) (491) (617) 2H12 1H13 2H13 1H14 2H14 Sep-13 Sep-14 2H12 1H13 2H13 1H14 2H14 Improved productivity (ex
Slide 24: IIB – Diversification driving profitable growth
IIB – Diversification driving profitable growth FY14 profit by region1 Revenue Growth For personal use only AUDm & FX Adjusted growth rate FX adjusted growth +1% +32% -4% +3% 1,481 8% 7% 6% 3% 922 190 135 -6% Aus & NZ Asia Pacific US & Europe Markets Retail Cash Mgt Trade Loans Cash Profit & Return2
Slide 25: IIB – Asia delivering growth with improving returns
IIB – Asia delivering growth with improving returns Strong and balanced customer growth High quality Revenue growth For personal use only USDm Revenue USD growth +8% +11% +9% 28% 800 600 13% 400 9% 5% 200 - Global Banking International Retail Banking Markets Cash Mgt Trade Loans Banking Improving ca
Slide 26: IIB – Markets continuing to grow and diversify
IIB - Markets continuing to grow and diversify Revenue growth Revenue diversity For personal use only $m By region FY14 Asia 29% up FY12 FY13 FY14 $m 9pp in 2 11% 1,400 17% 10% 11% 7% 12% 9% -10% Australia 29% NZ 20% -10% 12% 12% 1,200 Pacific FY12 -10% E+A Asia 1,000 47% 41% 800 Top 5 Asia markets
Slide 27: Operations and Technology - lower cost, better quality
Operations and Technology - lower cost, better quality More productive FTE Lower operations cost per FTE For personal use only Transactions per FTE in international markets $000s per FTE 6,077 81 5,346 77 4,865 68 4,469 FY11 FY12 FY13 FY14 FY12 FY13 FY14 Rapidly improving quality Producing operating
Slide 28: Strong Group wide expense discipline
Strong Group wide expense discipline For personal use only $m 222 8,760 125 12 12 8 8,413 57 67 8,257 FY13 Tech. D&A People Premises Other FY14 Trustee FX FY14 incl (ex D&A) Divisional Proceed impact incentives Invest's. 28
Slide 29: Portfolio credit quality continues to improve
Portfolio credit quality continues to improve Gross Impaired Assets Total Provision Charge For personal use only $b $b 3.06 1.82 1.22 1.26 1.20 0.99 3.5 7.0 2.5 CP charge IP charge 6.56 1.5 6.0 0.5 5.95 5.51 5.20 -0.5 5.0 -1.5 4.26 FY09 FY10 FY11 FY12 FY13 FY14 4.0 Collective provision balance by so
Slide 30: Disciplined management of Risk Weighted Asset growth
Disciplined management of Risk Weighted Asset growth Total RWA RWA movement For personal use only $b 4 - 361 362 362 4 361 3 339 7 324 53 56 11 51 300 50 280 339 45 265 31 252 31 Market & operations risk Market & operations risk 22 305 309 288 274 Credit Growth1 Credit Growth1 255 Credit Other2 Cred
Slide 31: Capital-strong organic generation
For personal use only Capital-strong organic generation % 12.7 1.00 0.11 0.05 0.15 8.79 8.48 8.32 0.52 APRA CET1 movement +47bp Sep-13 Mar 14 Cash RWA Capital Div. Other Sep 14 Sep-14 NPAT1 Usage Deductions 3 2 Internationally Comparable 1.Cash earnings net of preference share dividends. 2.Includes
Slide 32: Super Regional Strategy
SUPER REGIONAL STRATEGY For personal use only STRONG CORE PROFITABLE ENTERPRISE MARKETS ASIAN GROWTH APPROACH STRONG LIQUIDITY AND CAPITAL MANAGEMENT DISCIPLINED AND EXPERIENCED MANAGEMENT 32
Slide 33: ANZ strategy delivering growth and returns
For personal use only ANZ strategy delivering growth and returns 5 YEAR CAGR ANZ Peer 1 Peer 2 Peer 3 Revenue 7.0% 5.1% 2.2% 3.5% Expenses 7.2% 2.9% 6.1% 4.0% PBP 6.9% 6.9% (1.4%) 3.2% Provisions (19.9%) (22.4%) (25.5%) (25.3%) Cash NPAT 16.0% 14.9% 6.0% 10.2% EPS 9.1% 12.7% 2.1% 8.4% ROE +340bp +29
Slide 34: Additional Information
2014 FULL YEAR For personal use only RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 31 October 2014 Shayne Elliott Chief Financial Officer Additional Information
Slide 35: Performance versus targets
Performance versus targets Target FY141 For personal use only FY14 Revenue Growth 4%-5% 4.0% Expense Growth 2% 1.8% FY16 ROE 16%+ 15.4% & improving CTI <43% 44.3% & improving Capital (CET1) “High 8‟s” 8.8% & improving 1. FX adjusted (calculated on constant currency) and excluding impact of divestmen
Slide 36: Cash profit
Cash profit 2014 Full Year Cash Profit For personal use only $m 267 83 7,117 591 7,037 221 3 6,492 Divisional Growth 8% Reported Growth 10% FY13 Cash Divisional Provisions Tax FY14 Divest- FX FY14 Cash NPAT Earnings ments impact NPAT Divestments include Sale of Trustees (within Global Wealth Divisio
Slide 37: First half NIM
First half NIM 1H14 Group Net Interest Margin movement For personal use only bp 2.2 218.8 0.2 1.1 0.2 214.5 5.4 0.4 -4.3bps 2H13 Funding & Funding Deposits Assets Markets & Other 1H14 Asset Mix Cost Treasury 37
Slide 38: Second half NIM
Second half NIM 2H14 Group Net Interest Margin movement For personal use only bp 4.5 214.5 1.4 212.0 0.7 0.2 5.8 2.1 -2.5bps 1H14 Funding & Funding Deposits Assets Markets & Other 2H14 Asset Mix Cost Treasury 38
Slide 39: Revenue by Divisions
Revenue by Divisions 2014 Full Year Revenue by Division For personal use only $m 336 19,578 68 104 58 19,138 266 13 368 18,391 Divisional Growth 4% Reported Growth 6% FY13 Aus. IIB NZ Global GTSO & FY14 Divest- FX FY14 Revenue Wealth Group Divisional ments impact Revenue Centre 39
Slide 40: Other Operating Income
Other Operating Income $m For personal use only 153 2,904 - 25 2,877 34 2 104 22 2,763 154 2H13 Wealth Global Trustees, Other 1H14 Wealth Global Trustees, Other 2H14 Markets SSI Markets SSI 40
Slide 41: Global Wealth Reconciliation of Reported Numbers
Global Wealth Reconciliation of Reported Numbers For personal use only Core business performance 63 525 8 30 475 471 31 20 1 429 14 33 50 +11% FY13 FX FY13 FY13 Insurance Funds Private Other FY14 Core Group life Insurance Trustees FY14 Cash impact Tax ex fx & Growth Mgmt Wealth Business plan exit se
Slide 42: Treasury
2014 FULL YEAR For personal use only RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 31 October 2014 Treasury
Slide 43: ANZ is well capitalised
ANZ is well capitalised Capital Update Basel 3 Common Equity Tier 1 (CET1) For personal use only • Strong organic capital generation in 2H14 of 84bps. 12.7% 12.2% 12.7% Growth in CET1 of 47bps in 2H14 to 8.8% largely reflects an ongoing focus on capital efficiency 8.5% 8.8% • 1% CET1 D-SIB capital b
Slide 44: CET1 ratio compares favourably to global peers
ANZ‟s CET1 ratio compares favourably to global peers on an Internationally Comparable basis at 12.7% Australia Canada3 UK3 For personal use only 12.7% 12.7% CCB & D-SIB 11.5% 11.3% effective 10.9% 10.7% 1 Jan 2016 9.9% 10.1% 9.5% 9.6% 9.3% 8.8% 8.0% 1.0% D-SIB 2.5% CCB 4.5% CET1 2 Toronto-Dominion A
Slide 45: Regulatory capital generation
Regulatory capital generation For personal use only 3 year average FY11-14 bps of CET1 pa1 Capital generation Cash profit 198 Capital utilisation RWA growth (44) Average 6% pa FY11-14 Capital deductions (23) Primarily earnings retained in non-consolidated subsidiaries Net dividends (105) • Target pa
Slide 46: Common Equity Tier 1 generation and dividend payments
Common Equity Tier 1 generation and dividend payments APRA Basel III CET1 Ratio For personal use only 9.0% 8.8% 8.5% 8.3% 8.0% 7.8% 7.5% Mar-13 Mar-14 Dec-12 Dec-13 Sep-12 Jun-13 Sep-13 Jun-14 Sep-14 Note: shaded quarters represent declaration of dividends. Basel III basis. • Under Basel III (from J
Slide 47: Stable balance sheet composition
Stable balance sheet composition 120% Funding mix Asset tenor mix For personal use only 29% 18% 17% 16% 25% 26% 100% 7% 15% 14% 13% 14% 22% 8% 3% 3% 1% 8% 80% 8% 12% 12% 4% 4% 7% 14% 60% 80% 62% 63% 40% 72% 71% 50% 20% 7% 8% 8% 0% 4% 3% 3% Sep 08 Sep 13 Sep 14 Sep 08 Sep 13 Sep 14 ST Wholesale Fundi
Slide 48: Term wholesale funding portfolio
Term wholesale funding portfolio – consistent and well diversified Term Funding Profile For personal use only Issuance $b Maturities 26 Annual 24 24 24 23 indicative 20 issuance volume 18 16 13 13 12 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20+ Senior Unsecured Covered Bonds Tier 2 Portfo
Slide 49: Liquidity – well positioned ahead of LCR implementation
Liquidity – well positioned ahead of LCR implementation Liquid Assets1 Liquidity Update For personal use only $b • As a result of a shortage of HQLA including 140 government bonds in Australia, APRA will allow banks to meet some of their Basel III Liquidity Coverage Ratio (LCR) 122 requirement via a
Slide 50: Foreign currency hedging
Foreign currency hedging – earnings benefit from lower AUD FY14 Earnings Composition Earnings per Share FX Impact For personal use only (by currency) 1.4% AUD Other 59% IDR 19% -0.3% NZD FY14 v FY13 2H14 v 1H14 22% Translation Rates (inclusive of hedges) • The key objective of hedging is to manage s
Slide 51: FX Sensitivity
FX Sensitivity – illustrating the impact of FX Full Year For personal use only Metric impact of 5% Comments fall in AUD1 Income statement Revenue ~+$250m or • Impact from translation of foreign currency revenue, offset by the ~+1.3%% impact of hedging losses ~+$175m or Operating expenses • Impact fr
Slide 52: Capital and replicating portfolio
Capital and replicating portfolio – low interest rates no longer a headwind Australia New Zealand For personal use only 2H14: ~$170m portfolio earnings benefit 2H14: ~A$25m portfolio earnings benefit relative to the average RBA cash rate relative to the average RBNZ cash rate 6% 6% 5% 5% 4% 4% 3% 3%
Slide 53: Risk Management
2014 FULL YEAR For personal use only RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 31 October 2014 Risk Management
Slide 54: Benign conditions & disciplined management actions drove result
Benign conditions & disciplined management actions drove result Credit quality Provision charge For personal use only Individual Provision (IP) Charge (LHS) $m Collective Provision (CP) Charge (LHS) Gross impaired assets 32% Total Provision Charge as % Avg. Net Advances 3,500 $2,889m 2,500 FY14 CIC
Slide 55: Portfolio quality improvement reflected in lower CP balance
Portfolio quality improvement reflected in a lower CP balance Significant portfolio quality improvement CP coverage reflective of portfolio risk For personal use only evidenced by CP movement drivers $b Credit Risk Weighted Assets • Credit quality improvement saw a collective Collective Provision as
Slide 56: Modelled loss rates continue to decline
Modelled loss rates continue to decline Group regulatory expected loss For personal use only bps % • Regulatory Expected Loss is a one-year EAD downturn loss measure as prescribed by APRA and reported in the Results 34bps Announcement • Includes conservative overlays that are not reflective of an „
Slide 57: Reduction observed in historical loss rates
Reduction observed in historical loss rates Historical observed loss rates Historical rate of impaireds2 For personal use only bps 1 bps Adjusted IP Loss Rate for Current 250 Portfolio Mix 1000 IP Loss Rate 900 IA/NLA (bps) 200 800 1990-2014 lowest bp loss rate 700 150 600 500 100 400 300 50 200 8bp
Slide 58: New/increased IPs and writebacks consistent
New/increased IPs and writebacks /recoveries have been consistent Individual provision charge by segment Individual provision charge composition For personal use only Institutional Commercial Consumer New Increased Writebacks & Recoveries $m $m 2,815 3,000 3,000 2,815 1,823 1,637 2,500 1,213 1,167 2
Slide 59: Control list customer numbers down 30%
Control list customer numbers down 30% YoY, limits down 27% Global Institutional investment grade exposures Control list For personal use only Index Sep 09 = 100 Control List by Limits 78% 78% Control List by No of Groups 120 100 80 75% 60 73% 40 20 Sep 09 Sep 10 Sep 11 Sep 12 Sep 13 Sep 14 Global I
Slide 60: Gross impaired assets reduced by 32%
Gross impaired assets reduced by 32% ($1,375m) YoY Gross impaired assets by type Gross impaired assets by size of exposure For personal use only 1 $m Impaired Loans NPCCD Restructured $m > $100m $10-$99m < $10m 7,000 7,000 6,561 6,561 6,000 6,000 5,595 5,595 5,581 5,581 5,196 5,196 5,000 5,000 4,264
Slide 61: Asset quality improvement is broad-based
Asset quality improvement is broad-based Impaired assets concentration Net impaired assets by division by number of customers1 For personal use only $m Australia New Zealand IIB Other $10-50m $51-100m $101-200m >$200m 12% 4% 4% 3% 1% 3% 4% 3% 0% 10% 5,000 4,685 4,069 9% 3,884 11% 19% 11% 4,000 20% 2
Slide 62: Disciplined Risk Weighted Assets growth
Disciplined Risk Weighted Assets growth Total risk weighted assets Total risk weighted assets For personal use only movement Sep 2014 v Sep 2013 $b $b Market & Operational Risk Weighted Assets 3 362 Credit Risk Weighted Assets 21 1 362 339 339 324 53 1 Sep-13 Credit Market & Operational Sep-14 300 5
Slide 63: Credit risk discipline reflected in CRWA growth
Credit risk discipline reflected in CRWA growth Group exposure at default Credit risk weighted assets For personal use only and credit risk weighted assets movement Sep 2014 v Sep 2013 Exposure at Default ($b) $b 308.9 Credit Risk Weighted Assets ($b) 4.4 17.3 1.9 CRWA / EAD (%) - Basel II EAD CRWA
Slide 64: Considered management of exposure to market stress
Considered management of exposure to market stress Risk weighted asset and VaR outcomes For personal use only • Traded Market Risk VaR usage remained moderate • Traded Market Risk 1-day 99% VaR and RWA increased YoY but we have remained disciplined on our exposure to market disruption and stress as
Slide 65: Stable portfolio composition
Stable portfolio composition Exposure at default (EAD) % in non- Category EAD For personal use only as a % of Group total performing ANZ Group Sep-13 Sep-14 Sep-13 Sep-14 Total EAD (Sep 14)1 Consumer Lending 40.8% 39.5% 0.2% 0.2% $796b Finance, Investment & Insurance 15.9% 17.6% 0.1% 0.0% Property S
Slide 66: Quality of Institutional book remains sound
Quality of Institutional book remains sound Institutional investment grade exposure Trade Finance investment grade exposure For personal use only by geography 36% 33% 33% 31% 32% 13% 26% 23% 87% 67% 67% 69% 68% 74% 77% 64% Asia Australia New Zealand Sep 10 Sep 11 Sep 12 Sep 13 Sep 14 Investment Grad
Slide 67: Resources exposure focused on Oil & Gas
Resources exposure focused on Oil & Gas Resources exposure credit quality by Resources exposure by sector (% EAD) geography (EAD) For personal use only Resources EA & Other AUS ($b) NZ ($b) ASIA ($b) ($b) Total EAD (Sep 14) As a % of Group EAD 8.9 0.8 3.8 4.1 $17.6b 2.2% 10% 27% 24% 54% 17% 6% 76% 9
Slide 68: Agri portfolio focused on cashflow resilient commodities
Agri portfolio is focused on cashflow resilient commodities New Zealand Agri credit quality Agriculture exposure by sector (% EAD) For personal use only focused on cashflow Agriculture NZD Total Credit Exposure (LHS) Average PD (Non-Defaulted Customers) (RHS) Total EAD (Sep 14) As a % of Group EAD N
Slide 69: Commercial property portfolio lower than peers
Commercial property portfolio lower than peers Commercial Property outstandings by Commercial Property outstandings by For personal use only region sector APEA (LHS) New Zealand (LHS) Australia (LHS) % of Group GLA's (RHS) 28% Offices $B Retail 40.0 8.0% Residential 30% Industrial 35.0 22% 7.5% Tour
Slide 70: Australia Division stable delinquency profile
Australia Division displays a stable delinquency profile Australia Home Loans 90+ day Australia Division credit exposure (EAD) For personal use only delinquencies by state1 Sep 11 Sep 12 Sep 13 Sep 142 Home Loans 1.0% 0.8% Corporate & 24% Commercial 0.6% Consumer Cards 6% 0.4% Personal Loans 68% 1%
Slide 71: Australia Home Loans portfolio
Australia Home Loans portfolio FY14 portfolio statistics1 Dynamic loan to value ratio5 For personal use only % of Portfolio Total Number of Home Loan Accounts 919k 50% 45% Total Home Loans FUM $209b 40% 35% 30% % of Total Australia Geography Lending 60% 25% 20% % of Total Group Lending 40% LVR >90%
Slide 72: Stable LMI loss rates below industry average
Stable LMI loss rates below industry average Australian Home Loan portfolio LMI and Background Reinsurance Structure at 30 September 2014 For personal use only Financial Year 2014 Results % FUM LVR ≤ 80% Not Insured Gross Written Premium ($m) $209m 79% Net Claims Paid ($m) $10m 2014 Reinsurance Arra
Slide 73: New Zealand mortgages portfolio
New Zealand mortgages portfolio FY14 portfolio statistics Dynamic loan to valuation ratio For personal use only Total Number of Mortgage Accounts 488k 7% Total Mortgage FUM (NZD) $62b 10% 0-60% % of Total New Zealand Lending 58% 61-70% 48% 71-80% 18% % of Total Group Lending1 11% 81-90% Owner Occupi
Slide 74: New Zealand credit quality continues to improve
New Zealand credit quality continues to improve New Zealand geography New Zealand geography For personal use only net impaired assets total provision charge NZDm NZDm Net Impaired Assets NIA as % GLA IP Charge CP Charge 1,685 200 105 85 103 150 99 100 44 22 30 50 -39 1,307 0 -50 1,169 -100 1H11 2H11
Slide 75: ANZ Overview
2014 FULL YEAR For personal use only RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 31 October 2014 ANZ Overview
Slide 76: Distinctive geographic footprint and business mix
ANZ offers a distinctive geographic footprint and business mix that provides earnings diversification Corporate Profile For personal use only • Founded in 1835, ANZ is a super regional bank that serves 10 million retail, commercial and institutional customers in 33 markets and employs 50,000 staff.
Slide 77: ANZ Operating Structure
ANZ Operating Structure Operating Divisions FY14 Operating Income Mix by Division For personal use only Australia Division • Retail Banking Transaction • Corporate & Commercial Banking Banking Retail Asia Pacific Global Asia Partnerships Loans 9% 4% Other New Zealand Division 2% 0% 9% New Zealand 6%
Slide 78: Contribution by geography
Contribution by geography Operating Income by Geography Operating Income by Geography FY14 For personal use only Australia New Zealand APEA APEA Network Australia New Zealand APEA 16% $m 25,000 19,578 18% 17,848 18,391 20,000 16,812 APEA Network 15,782 Revenue1 represents income 15,000 24% generated
Slide 79: Customer loans and deposits by Geography
Customer loans and deposits by Geography Customer Lending1 by Geography of FY14 Customer Deposits by Geography of FY14 For personal use only APEA APEA 15% 27% New New Zealand Zealand 18% 17% Australia Australia 67% 56% Customer Lending1 by Geographic Segment Customer Deposits by Geographic Segment $
Slide 80: Total Credit Exposure by Geography
Total Credit Exposure (EAD) by Geography Exposure at Default by Exposure at Default1 by Geography For personal use only Line of Business2 Total Exposure at Default (Sep 14) - $796b1 Retail Institutional Commercial Australia New Zealand APEA 16% $494.1b $131.0b $170.8b 29% 30% 4% New Zealand UK & Eur
Slide 81: Customer loans and deposits by client segment
Customer loans and deposits by client segment Customer Lending1 by Segment Customer Deposits by Segment For personal use only (Sep-14) (Sep-14) New Zealand Australia Commercial Institutional Australia Commercial Australia New Zealand 10% Institutional Commercial 17% 13% 4% 11% New Zealand Commercial
Slide 82: Divisional Performance
2014 FULL YEAR For personal use only RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 31 October 2014 Divisional Performance
Slide 83: Australia Division - strengthening position in core markets
Australia Division - strengthening ANZ's position in core markets by focussing on the customer experience ANZ Group Strategy For personal use only Built on common infra - Connect ing customers Strengthen our PROFITABLE STRONG structure & enterpris e to faster growing positio n in our core ENTERPRISE
Slide 84: Banking on Australia transforming the business
Banking on Australia is transforming the business and positioning ANZ for sustainable growth FY14 FY13 FY14 FY13 STRONG CORE MARKETS For personal use only Transforming distribution Delivering leading digital & mobile solutions # new sales focused $ transactions processed on branches & business centr
Slide 85: Australia Division delivering growth in core markets
Australia Division is delivering growth and strengthening our position in key core markets Divisional profit up 7% YOY to $3.05 billion STRONG CORE MARKETS For personal use only Net new customers Lending FUM 2H PBP momentum m Retail m C&CB1 Home Loans Small Business Retail C&CB 5.20 79k 0.50 7% Gr
Slide 86: Retail – building capability and strong sales outcomes
Retail – Continuing to build capability and delivering strong sales outcomes and productivity Building sales capability Delivering sales outcomes STRONG CORE MARKETS For personal use only Branch sales staff accredited to sell Home 70% Loans #1 Fastest Home Loan growth amongst peers1 Consecutive quar
Slide 87: Retail – leading mobile and digital solutions
Retail – delivering leading mobile and digital solutions to meet changing customer needs and improve productivity We‟re investing in digital … as customers change the way …and increasingly prefer STRONG CORE MARKETS channels… they want to bank with us… mobile For personal use only Monthly Retail Tra
Slide 88: C&CB – continued focus on transforming the business
C&CB – Continued focus on transforming the business with improved momentum in 2H14 Key initiatives across the business… …underpin FY14 performance STRONG CORE MARKETS For personal use only Expanded lending pledge to new Small Lending growth in Small Business (total $2b Businesses 16% C&CB lending u
Slide 89: Leveraging super regional connectivity
Leveraging ANZ‟s super regional connectivity to deliver long term, sustainable growth Being the bank of choice for international Supporting our customers to do business STRONG CORE MARKETS For personal use only customers in Australia across the region Deposits held by Retail International customers
Slide 90: Enterprise approach driving productivity improvements
Enterprise approach is driving improvements in productivity, leveraging scale and increasing cross-sell STRONG CORE MARKETS For personal use only Leveraging our Regional Delivery • Improving Operations overall productivity by 14%, with total costs and Network cost/FTE reducing, while volumes continu
Slide 91: Australia Division Financial Performance – P&L
Australia Division Financial Performance – P&L Profit and Loss movement FY14 vs FY13 Net Interest Margin STRONG CORE MARKETS For personal use only % change: 6% 1% 3% - 7% 2.48% 2.52% 2.51% $m 107 72 276 1 80 7 3,048 90 89 2,858 7% FY13 Vol. Margin Vol. Margin OOI Expenses Provisions Tax FY14 FY
Slide 92: Australia Division Financial Performance – Balance Sheet
Australia Division Financial Performance – Balance Sheet Loan movement Customer lending composition STRONG CORE MARKETS For personal use only Asset Finance Sep-14 % change: 7% 1% 3% 5% $288b 1.8 287.9 14.4 0.1 Business $b Lending 18% 6% 18% 271.6 Sep-13 Other 4% 4% Retail $272b 6% 72% Sep-13 Hom
Slide 93: Australia Division business unit performance
Australia Division business unit performance Income Expenses PBP NPAT Cost to STRONG CORE MARKETS For personal use only ($m) ($m) ($m) ($m) Income % FY14 8,228 3,057 5,171 3,048 37.2% Australia FY14 v 5% 3% 6% 7% -59bps Division FY13 2H14 v 5% 4% 5% 6% -37bps 1H14 FY14 5,176 2,051 3,125 1,927 39.6%
Slide 94: Retail – Financial Performance
Retail – Financial Performance Profit and Loss movement FY14 vs FY13 STRONG CORE MARKETS For personal use only YOY % change: 7% 4% 6% 12% HOH % change: 6% 5% 9% 5% 72 26 $m 276 1,927 13 1,725 73 86 1,444 12% FY12 FY13 Volume Margin OOI Exp. Provisions Tax FY14 Income Net Interest Margin Cos
Slide 95: Retail – Consistent balance sheet growth
Retail – Consistent balance sheet growth Home Loan growth1 Deposit Growth1 STRONG CORE MARKETS For personal use only Household Lending Market Share Growth (%) Household Deposits Market Share Growth (%) Index Sep-12 = 100 Index Sep-12 = 100 Peer 1 Peer 2 Peer 3 ANZ ANZ Peer 1 Peer 2 Peer 3 103 103 10
Slide 96: C&CB – Financial Performance
C&CB – Financial Performance Profit and Loss movement FY14 vs FY13 Lending growth by business STRONG CORE MARKETS For personal use only % change: 1% 2% 2% 6% 1% % change: 16% 1% 3% - 2% $m $b 27 6 0.1 0.3 67.1 1.8 1,133 65.3 1,121 - 17 0.4 25 3 1% 3% FY13 NII OOI Exp. Provisions Tax FY14
Slide 97: C&CB – greater momentum in second half
C&CB – greater momentum in second half Recent improvements in business …are slowly translating to increased STRONG CORE MARKETS For personal use only confidence and business conditions… demand for business credit Business Conditions (Net Balance)1 Business Credit2 and Loan Approvals3 12 7% 4% 8 3% 6
Slide 98: C&CB – diversified portfolio with improving asset quality
C&CB – a diversified portfolio with continued improvements in asset quality and performance C&CB maintains a diversified portfolio, covering numerous market and customer segments STRONG CORE MARKETS For personal use only Net Loans & Advances Exposure at Default by Industry (%) Industry exposure rema
Slide 99: Creating New Zealand's best bank
Creating New Zealand‟s best bank ANZ Group Strategy STRONG CORE MARKETS For personal use only Built on common infra- Connecting customers Strengthen our PROFITABLE STRONG structure & enterprise to faster growing position in our core ENTERPRISE ASIAN CORE focus for greater regional capital, markets o
Slide 100: Our strategy is delivering a scale advantage
Our strategy is delivering a scale advantage Create scale Leverage scale Scale advantage STRONG CORE MARKETS For personal use only 2010 - 2013 2013 - 2016 2017 2010 2014 2017 Core systems 2 1 1 Brands 2 1 1 ANZ brand 27% 44% Market leading consideration1 Staff engagement 64% 78%3 Best practice NZ Ge
Slide 101: Building on a strong core market position
Building on a strong core market position Divisional profit up 10% YoY to $1.17 billion STRONG CORE MARKETS For personal use only Small Business Banking Commercial lending Mortgages market share lending growth market share1 12% 30.7% Winning in 30.2% 30.5% 30.7% 29.6% 22.9b our key 20.4b 29.5% mark
Slide 102: Enhancing customer experience and driving efficiency
Enhancing customer experience and driving efficiency Transforming distribution channels Branch coverage5 Brand consideration6 STRONG CORE MARKETS For personal use only FY13 FY14 Branch Coverage Brand consideration # of Branches the highest of major • Smart ATMs 31 93 banks in NZ 303 • Over the count
Slide 103: New Zealand Geography - Profit and loss performance
New Zealand Geography - Profit and loss performance Profit and loss movement FY14 vs. FY13 Profit and loss contribution STRONG CORE MARKETS For personal use only NZ$m NZ$m NZ Division 102 5 1,682 % change: 7% 2% Large 33 33 18 74 59 33 1,432 129 1,682 124 110 1,432 10% 17% 17% FY13 Retail Comm
Slide 104: New Zealand performance
New Zealand performance FY14 New Zealand business unit performance STRONG CORE MARKETS For personal use only NZ$m Revenue Expenses PBP Provisions NPAT FY14 1,272 (632) 640 (31) 438 Retail FY14 v FY13 4% 1% 10% 46% 16% 2H14 v 1H14 Flat Flat Flat 58% 3% FY14 591 (239) 352 (32) 231 Small Busines
Slide 105: New Zealand Geography – balance sheet performance
New Zealand Geography – balance sheet performance FY loan movement Leading position in NZ STRONG CORE MARKETS For personal use only NZ$b NZ$b NZ major bank total assets2 NZ Division % change: 2% 8% 4% 14% 4.2 0.2 0.2 105.5 0.7 140 100.1 96.3 120 100 80 5% 60 40 Commercial Sep-12 Sep-13 Sep-14 I
Slide 106: New Zealand Division: financial performance
New Zealand Division: financial performance Profit and loss movement FY14 vs. FY13 Cost to income STRONG CORE MARKETS For personal use only NZ$m % change: 2% 3% Lge 50.6% 55 104 43.5% 1,170 41.1% 37 47 1,060 39 10% FY12 FY13 FY14 FY13 NII OOI Expenses Provisions Tax FY14 NPAT NPAT Profit and los
Slide 107: New Zealand Division: business unit contribution
New Zealand Division: business unit contribution Revenue by business unit Loan growth STRONG CORE MARKETS For personal use only % change: 2% 12% 5% NZ$m 0 200 400 600 800 1,000 1,200 1,400 NZ$b 1.8 96.6 2.5 Retail Banking 4% 0.7 91.6 Small 88.2 Business 1 flat Banking 5% CommAgri 2% Sep-12 Sep
Slide 108: New Zealand Geography: portfolio composition
New Zealand Geography: portfolio composition Provision charge Portfolio composition STRONG CORE MARKETS For personal use only NZ$m Total provision charge NZ$m 85 105 103 99 44 22 (39) 30 Home loans Agri Small Businesses Commercial 400 120,000 Other Other Retail Collective Provision (CP) Charge 300 1
Slide 109: New Zealand Retail: continuing to drive productivity
New Zealand Retail: continuing to drive productivity Optimising distribution channels Customer trends STRONG CORE MARKETS For personal use only Gross Retail Gross Small Business customer customer acquisition • Simplifying key acquisition business processes 110,000 • Introducing straight 15% 23% ad
Slide 110: New Zealand Retail: higher returns in mortgages
New Zealand Retail: delivering higher returns in mortgages Strong mortgage share momentum1 #1 in Auckland and Christchurch3 STRONG CORE MARKETS For personal use only 30.80% Share of new mortgage Share of new mortgage sales in Auckland sales in Christchurch 30.70% 31% Leading peer bank 29% 27% 30.60%
Slide 111: Commercial & Agri delivering high quality growth
Commercial & Agri delivering high quality growth Strong growth in loans and deposits Stable diversified portfolio STRONG CORE MARKETS For personal use only Loans Deposits Exposure at default by industry (%) NZ$b 6% 6% Retail & 5% 15% 24% 26% Wholesale Trade 40.0 Property & UDC Business Services 30
Slide 112: Global Wealth delivering value through ANZ channels
Global Wealth delivering value through ANZ channels • Simple, accessible and Growth in number of Wealth solutions sold STRONG CORE MARKETS For personal use only affordable solutions through ANZ channels1 Global Wealth # is • Integrated physical and digital transforming channels, bringing customers‟
Slide 113: Series of innovations across digital, physical and advice
Grow… a series of innovations across the digital, physical and advice space • Lowest retail super fees1 STRONG CORE MARKETS For personal use only Grow by ANZTM Simple, ANZ Smart • Award winning product accessible and Choice affordable Super • Via mobile platform • Appeals to Gen X / Y • Rated 4/5 st
Slide 114: ANZ Smart Choice Super
ANZ Smart Choice Super – a simple, accessible and affordable retirement solution Australia‟s lowest-fee Awarded 5 star „Outstanding Value‟ STRONG CORE MARKETS For personal use only #1 retail superannuation by CANSTAR for all superannuation fund1 categories in 2014 Awarded „Best Innovative Investing
Slide 115: Global Wealth Financial Performance – P&L
Global Wealth Financial Performance – P&L Profit and Loss movement FY14 vs FY13 FY14 v FY13 STRONG CORE MARKETS For personal use only % change: 14% 7% large large • Global Wealth reported cash $m profit increased 11% FY14 on 125 FY13. Operating income 6 93 30 525 increased 14% and expenses 471 41
Slide 116: Embedded Value – Insurance and Investments
Embedded Value – Insurance and Investments Embedded Value growth over FY14 STRONG CORE MARKETS For personal use only $m 66 4,269 342 19 • Strong business performance resulted in an 3,883 increase in Embedded Value2 176 386 of 16%3 over the twelve 3,666 months to September 2014 • Value of New Busines
Slide 117: Global Insurance
Global Insurance • Global Insurance reported cash profit Profit and Loss movement FY14 vs FY13 STRONG CORE MARKETS For personal use only increased 1%. Excluding the impact of the exit of a Group Life Insurance plan, Insurance % change: 4% 6% 6% cash profit increased by 16% $m 69 • ANZ had the hig
Slide 118: Global Funds Management
Global Funds Management • Cash profit decreased by 10%. Revenue growth Profit and Loss movement FY14 vs FY13 STRONG CORE MARKETS For personal use only of 3% was offset by expense growth of 5% due to higher regulatory compliance costs % change: 3% 5% 32% • Excluding the additional regulatory compl
Slide 119: Global Private Wealth
Global Private Wealth Profit and Loss movement FY14 vs FY13 STRONG CORE MARKETS For personal use only • Global Private Wealth reported cash profit increased 244%. Excluding the impact of % change: 80% 2% large large the ANZ Trustees sale, cash profit $m 125 6 increased 62%, driven by strong volume
Slide 120: IIB – a regionally diversified business
International & Institutional Banking – a regionally diversified business NPAT by geography Earnings diversification STRONG CORE MARKETS For personal use only IIB NPAT by Region Growing and deepening customer $b 2.69 relationships 2.43 Customer Average products per customers increasing from 1.9 to 2
Slide 121: IIB – well funded with customer deposits
IIB – well funded with customer deposits, high investment grade balance sheet Deposit growth funding secure loan growth Operating a lower risk STRONG CORE MARKETS For personal use only – no material reliance on term w/sale debt strategy IIB Balance Sheet – Deposits & Loans Regional risk grade profil
Slide 122: IIB - Strong core markets
IIB - Strong core markets Connectivity across key corridors Market leading products STRONG CORE MARKETS For personal use only a competitive advantage No. 1 Lead Trade Finance Provider (Peter Lee) Use Grow Leverage home Share of growing market Key Asia Best Domestic Provider of FX Services heritage C
Slide 123: IIB - strengthened customer leadership position
IIB - strengthened customer leadership position ANZ has regained it‟s market leadership We continue to be #1 in New Zealand STRONG CORE MARKETS For personal use only in Australia for overall & lead penetration with a substantial and widening gap Australia - Domestic Banking Relationships New Zealand
Slide 124: IIB - Profitable Asia growth
IIB - Profitable Asia growth from distinct customer propositions via people, business & product capability PROFITABLE ASIAN GROWTH IIB Asia profitable growth IIB Asia customer revenue contribution For personal use only USD m 1.36% USD m 1.20% 1.19% 836 8% 11% 9% 800 668 575 600 400 200 0 FY12 FY1
Slide 125: IIB – A Top Corporate Bank in Asia
IIB – A Top 4 Corporate Bank in Asia, with a globally recognised brand A top 4 corporate bank in Asia1 PROFITABLE ASIAN GROWTH Improving brand recognition For personal use only by market penetration Greenwich Associates Large Corporate Study 17 Bank A BrandZ Top 100 Most Asian Large Corporate Bankin
Slide 126: IIB Global Markets - built around supporting customer needs
IIB Global Markets - built around supporting customer needs Global Markets income is generated through Majority of Global Markets STRONG CORE MARKETS For personal use only three principal sources income is customer linked • Direct client flow business on core products Client facing such as Fixed Inc
Slide 127: IIB Trade – self liquidating, driving cross sell
IIB Trade – self liquidating, driving cross sell and deepening customer relationships Driver of cross-sell Self Liquidating Customer relationships STRONG CORE MARKETS For personal use only income1 Tenor profile of the funded trade FY14: $1 of Trade income = $1.20 portfolio of $ 30bn (Sep-14) of Cros
Slide 128: Future of Trade business lies in strategic client relationships
The future of Trade business lies in driving strategic client relationships Traditional trade “New” trade STRONG CORE MARKETS For personal use only (Transactional client engagement) (Strategic client engagement) Many banks, especially the domestic ones have this ANZ will continue to engage with clie
Slide 129: IIB's solid foundation positions business for changing conditions
IIB‟s solid foundation positions the business well for changing conditions across the region Positioned for notably different conditions to the past 5 years STRONG CORE MARKETS For personal use only Customers: Macroeconomics: Simplicity & Remaining attractive transparency ANZ today • Trade flows ANZ
Slide 130: IIB strategic priorities delivering positive outcomes
IIB 4 strategic priorities are delivering positive customer, balance sheet & productivity outcomes 1. Connecting more customers by providing 2. Delivering leading products through STRONG CORE MARKETS For personal use only Seamless Value insights Relationship strength in core markets Growth in produc
Slide 131: IIB strategic priorities delivering positive outcomes (cont.)
IIB 4 strategic priorities are delivering positive customer, balance sheet & productivity outcomes 3. Intensifying balance sheet discipline 4. Scaling & optimising infrastructure STRONG CORE MARKETS For personal use only Maintained RoRWA despite margin Improving transactions per FTE compression1 5,6
Slide 132: IIB - Divisional Financial Performance (Profit & Loss)
IIB - Divisional Financial Performance (Profit & Loss) Profit and loss movement Business unit contribution to NPAT STRONG CORE MARKETS For personal use only FY14 vs FY13 FY14 vs FY13 $m $m Institutional 64 2,691 49 110 64 2,691 125 218 5 34 55 107 91 36 2,432 2 2,432 11% 11% 9% flat 14% 16% 15
Slide 133: IIB - Divisional Financial Performance (Balance sheet)
IIB - Divisional Financial Performance (Balance sheet) Loans movement Lending by customer2 STRONG CORE MARKETS For personal use only $b FY14 v FY13 Growth $b 2 4 142 10 3 100 10% 14% 21% 123 109 FY14 Loans 80 60 15% 40 20 12% 14% 21% 22% PROFITABLE ASIAN GROWTH 0 Sep-12 Sep-13 Corporate Glob
Slide 134: IIB - Revenue and expense composition
IIB - Revenue and expense composition Revenue by customer Revenue by product STRONG CORE MARKETS For personal use only $m $m Growth FY14 vs FY13 Growth FY14 vs FY13 3,000 3,000 6% 1% 9% 11% 12% 11% 8% 3% 9% 11% 2,500 2,500 2,000 FY14 revenue 2,000 FY14 revenue 1,500 1,500 1,000 1,000 500 5
Slide 135: IIB Global Markets - Diverse client focused business
IIB Global Markets - Diverse client focused business Regionally diverse client base Revenue per $ Value at Risk1 STRONG CORE MARKETS For personal use only $m Global Markets Sales & Trading (Traded) Australia Balance Sheet (Non-Traded) 41% 47% New Zealand 300 APEA 12% 250 PROFITABLE ASIAN GROWTH 198
Slide 136: IIB Global Markets – growth through geographic and product diversity
IIB Global Markets – delivering growth through geographic and product diverse business Global Markets revenue by product Revenue by product / type STRONG CORE MARKETS For personal use only (Excludes Balance Sheet) (FY14 v FY13 % growth) $m $m 2,500 2% 22% 1% 5% 3% 41% 1,400 2,000 1,200 1,000 1
Slide 137: IIB Transaction Banking – uplift in revenue
IIB Transaction Banking – uplift in revenue across geographies and products Transaction Banking Revenue by region Transaction Banking revenue STRONG CORE MARKETS For personal use only (FY14 v FY13 % growth) $m $m 51 1,643 2% 19% 15% 17% 8% 1,519 1,520 72 1,000 800 600 8% 400 200 FY12 FY13 Paym
Slide 138: Adopting common platforms and regional delivery network
Adopting common platforms & utilising our regional delivery network to improve customer experience, productivity & control For personal use only ENTERPRISE APPROACH An enterprise approach to Delivers a stronger Benefiting our customers operations and and more efficient and shareholders technology ba
Slide 139: Selectively building common technology platforms
Selectively building common technology platforms that enable our super regional strategy Our common platforms … … are delivering value … … and external recognition For personal use only ENTERPRISE APPROACH Global Wholesale Digital 17 $174 Transactions processed 2014 Asian Banker's Best countries bil
Slide 140: Utilising regional delivery network for quality and productivity
Utilising our regional delivery network to drive quality, operating resilience and productivity gains Our regional network is in place ... … and is generating significant value. For personal use only ENTERPRISE APPROACH • Providing full service regional coverage across our operating time zones. 18 G
Slide 141: Better customer outcomes through global processes and automation
Driving better customer outcomes through global processes and increased automation Straight Through Processing rate in Australian customer complaints continue to For personal use only AUD / NZD payments continues to rise fall even as customer numbers increase ENTERPRISE APPROACH % of total transacti
Slide 142: Annual investment program delivering enterprise capabilities
Annual investment program delivering broad-based enterprise capabilities supporting super regional growth For personal use only ENTERPRISE APPROACH Risk Digitisation • Minimised operating risks Risk • Consistent customer • Maintain the confidence of Management experience across channels our customer
Slide 143: Case Study: Australia Home Loans
2014 FULL YEAR For personal use only RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 31 October 2014 Case Study: Australia Home Loans
Slide 144: Home Loan strategy: balanced market share growth
ANZ‟s Home Loan strategy is to generate balanced market share growth while maintaining margins and risk profile Sustained long term growth… For personal use only • ANZ has grown its Australian home loan portfolio by ANZ Growth against system by segment; 8.3% (CAGR) over 5 years FY141 • RBA home loan
Slide 145: Consistent long term growth through leading proposition
Consistent, long term growth through a leading proposition, investing in capacity & capability & making it easy for customers We have increased We have a leading We aim to make it easy For personal use only channel capacity and proposition for customers sales capability in FY14 Consistently award wi
Slide 146: Investment in home loan proposition enabling growth
Investment in our home loan proposition has enabled growth while maintaining margins and risk profile Maintain price position while Low share of higher LVR lending For personal use only managing margins ANZ price vs peers1; as at Oct-14 ANZ Pricing ANZ share of major bank new sales($) by LVR band2;
Slide 147: Australian market structural features
Australian market structural features mean that, even in a downturn, better outcomes would be expected relative to comparative international markets Weak market attributes Australian market attributes For personal use only Housing oversupply Housing undersupply • Spain1 • Continues to trail populati
Slide 148: Assessing and managing home lending risk
ANZ assesses and manages home lending risk across the end-to-end value chain from origination to collections Originate to hold Multiple checks during Effective hardship & For personal use only philosophy origination process collections processes End-to-end home lending Full recourse lending responsi
Slide 149: Portfolio quality supported by low loss rates
The current quality of the portfolio is supported by low loss rates and stable delinquency patterns Australian & ANZ delinquencies are Portfolio skewed to lower LVR bands For personal use only low by international standards & realised losses are consistently low International comparison of delinquen
Slide 150: 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 investors or p
Australia and New Zealand Banking Group — FY2014 Earnings Presentation on 6ix