Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — H1 2010 Earnings Presentation
86 slides from Anz's earnings presentation, Apr 29, 2010
Slide 1: Half Year Results 2010
For personal use only 10 HALF YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 29 April 2010 Results Presentation & Investor Discussion Pack
Slide 2: Mike Smith, Chief Executive Officer
For personal use only 10 HALF YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED Mike Smith Chief Executive Officer
Slide 3: Good progress on Super Regional strategy
Good progress on Super Regional strategy 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 4: ANZ performance for First Half 2010
ANZ performance for First Half 2010 For personal use only 1H10 Growth Growth $m vs 2H09 vs 1H09 Underlying Profit1 2,298 23% 20% Revenue1 7,567 3% 7% Expenses1 3,249 4% 10% Provisions1 1,098 (32%) (23%) Statutory Net Profit After Tax 1,925 26% 36% EPS1 91.3 15% 2% 1H10 Franked Dividend 52 n/a 13% Cu
Slide 5: Geographic performance
Geographic performance For personal use only 1H10 vs Global Institutional division1 2H09 1H09 Net Profit After Tax 22% 23% Contribution to Group Net Profit (AUD): 36% Asia Pacific, Europe & 1H10 vs America (APEA) region (USD) 2H09 1H09 Net Profit After Tax 19% 1% Contribution to Group Net Profit (AU
Slide 6: Asia has led the global recovery so far
Asia has led the global recovery so far For personal use only Global growth Share of world GDP Annual % Change Forecast % of global GDP Forecast 12 60 10 50 8 40 6 4 30 2 20 0 10 -2 -4 0 1990 1995 2000 2005 2010 1990 1995 2000 2005 2010 World East Asia ex-Japan G7 East Asia ex-Japan G7 6
Slide 7: For Australia, the G7 outlook is less and less relevant
For Australia, the G7 outlook is less and less relevant For personal use only Australian two way trade weights US & Europe Asia Index Index 25.0 25.0 USA UK Europe CHINA INDIA ASEAN 6 20.0 20.0 15.0 15.0 10.0 10.0 5.0 5.0 0.0 0.0 1990 2000 2010 1990 2000 2010 Source: ANZ, RBA ASEAN 6: Singapore, Ind
Slide 8: Established a stronger foundation for the business
Established a stronger foundation for the business For personal use only Tier 1 Capital • Clarity around our strategy (%) • Re-organised around three key geographies 10.7 and our customers 6.7 • Investing in organic and strategic growth Sep 07 Mar 10 opportunities • Improved balance sheet efficiency
Slide 9: Peter Marriott, Chief Financial Officer
For personal use only 10 HALF YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED Peter Marriott Chief Financial Officer
Slide 10: Statutory profit up 26% on the previous half
Statutory profit up 26% on the previous half, 23% adjusted for non–core and one-off items For personal use only 1H10 v 1H10 v $m 1H10 2H09 1H09 2H09 % 1H09 % Statutory Profit ($m) 1,925 1,526 1,417 26% 36% Adjust for the following gains / (losses) included in statutory profit (net of tax) Acquisitio
Slide 11: Underlying profit up 23% from moderate revenue growth
Underlying profit up 23% from moderate revenue growth supported by continued investment & lower provisions For personal use only Underlying Performance 1H10 vs 2H09 523 (204) Adjusted growth rates Earnings Per Share up 15% 1H10 vs 2H09 $m 2,298 Acq‟n FX & Acq‟n adjusted adjusted 37 (125) Net Interes
Slide 12: Strong HoH Profit Before Provisions and Jaws distorted
Strong HoH Profit Before Provisions and “JAWS” distorted by Acquisitions, FX and exceptional 2009 markets result For personal use only Profit Before Provisions 1H10 (Half on Half growth rates) 1.6% (1.6%) 5.7% 8.5% 2.8% 5.7% impact on Profit Before Provisions Underlying Global Adjusted FX Acquisitio
Slide 13: All divisions contributed to 1H10 half on half growth
All divisions contributed to 1H10 half on half growth in Net Profit For personal use only 1H10 vs 2H09 Pre Provision Profit Net Profit After Tax $m $m Australia 2,137 1,269 Division up 8% up 16% APEA Division 425 277 (USD) up 7% up 14% NZ Businesses 648 217 (NZD) up 5% up 229% Institutional 1,574 81
Slide 14: Total income increased from solid growth in Net Interest
Total income increased from solid growth in Net Interest, partly offset by Markets income and FX drag For personal use only Underlying income 1H10 vs 2H09 $m 5,980 6,315 7,040 7,327 7,567 3%1 FX adjusted $205m acquisition impact including 8,000 5,863 6,249 6,728 7,206 7,567 5% $195m from ING Fee inc
Slide 15: Markets income delivering long run growth
Markets income, whilst down on unprecedented 2009, is delivering long run growth across the region For personal use only Markets income Markets income by source Half year 2H07 1H08 2H08 1H09 2H09 1H10 (1H10)1 growth 7% 31% 14% 58% 10% (17%) 100% $m 80% Trading & 1200 1,148 60% balance sheet 1,047 40
Slide 16: NIM improvements from repricing and lower margin assets
NIM improvements from repricing & lower margin assets reductions, although continued funding pressure remains For personal use only Group Net Interest Margin ex Institutional lending growth Markets movement 1H10 v 2H09 5% CAGR $b 85 2.9 ( 8.9) 81 71 67 14.1 58 bps 8.3 ( 5.4 ) 242.8 (5.0) 236.8 1H07
Slide 17: Subdued balance sheet growth
Subdued balance sheet growth, largely in the Corporate sector reflects lower demand and portfolio repositioning For personal use only Net Loans and Deposits growth Credit RWA impact (1H10 vs 2H09) $b Reported 3.0 (2.1) 3% 2% 229.8 (4.4) Group Total1 2% 1% (1.8) 2% (4.1) Australia Division 5% 220.4 2
Slide 18: Tightening of Jaws in 1H10
Tightening of “Jaws” in 1H10 a function of 2009 strong income performance and continued targeted investment For personal use only Revenue / Expense “Jaws” Expense growth composition1 (1H10 vs 2H09) 17% Reported growth Australia 4% 8% 10% 3% 4% Division 5% 12% 12% APEA Division2 13% (USD) 10% 10% 19%
Slide 19: Gross impaired assets increased with slower run off
Gross Impaired assets increased with slower run off. New impaired assets stabilising and more broadly based For personal use only Gross impaired New Impaired New impaired loans assets Assets by industry1 $b $b 7 7 100% Other Finance Business 6 6 Health 80% Manuf 5 5 W‟sale 60% 4 4 Agri 3 3 40% Elect
Slide 20: Total Provision charge has reduced across the region
Total Provision charge has reduced across the region with lower IP in Wholesale, Commercial and Consumer For personal use only Total Provision Charge Individual Provision Charge ($m) Half year ($m) Half year 5% 13% (32%) 71% (16%) (17%) 1,800 growth 1,800 growth 1,621 1,600 1,600 1,531 1,435 1,400 1
Slide 21: CP charge down on prior half
CP charge down on prior half, with release of management overlay in Australia offset by NZ increases For personal use only CP Charge Higher provision balance $m $m maintained 600 5,000 470 500 4,000 348 338 400 3,000 300 (96) 2,000 200 1,000 100 36 0 0 2H08 1H09 2H09 1H10 -100 Cycle & Concentration
Slide 22: Summary
Summary For personal use only Margin Momentum ex Markets1 Credit provision charge $m 2.53% 2.68% 1,621 2.28% 2.36% 1,364 1,435 1,098 2H08 1H09 2H09 1H10 2H08 1H09 2H09 1H10 Modest balance sheet momentum Continuing to invest in the franchise $b Cost growth 351.9 % (HoH) 7% 345.8 344.2 348.0 6% 4% 4%
Slide 23: Investor Discussion Pack: Additional Financial Information
For personal use only 10 HALF YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED Investor Discussion pack Additional Financial Information
Slide 24: Statutory profit reconciliation
Statutory profit reconciliation For personal use only 1H10 v 1H10 v 1H10 2H09 1H09 2H09 % 1H09 % Statutory Profit ($m) 1,925 1,526 1,417 26% 36% Statutory EPS 76.8 64.8 66.3 19% 16% Acquisition costs & valuation adjustments (322) 0 0 Economic hedging – fair value gain / (Loss) (138) (709) 461 Revenu
Slide 25: NIM movements 1H10 vs 2H09
NIM movements 1H10 vs 2H09 For personal use only Basis points 2H09 Funding Funding Deposits Assets Other Markets 1H10 1H10 v (bps) & Asset costs 2H09 (ex mix markets) Group 236.8 8.3 (5.4) (5.0) 14.1 2.9 (8.9) 242.8 +14.9 Geographies Australia 248.0 13.2 (3.4) (3.9) 11.7 0.0 (6.0) 259.6 +17.6 Geogra
Slide 26: NIM movements 1H10 vs 1H09
NIM movements 1H10 vs 1H09 For personal use only Basis points 1H09 Funding Funding Deposits Assets Other Markets 1H10 1H10 v (bps) & Asset costs 1H09 (ex mix markets) Group 222.3 21.5 (18.5) (18.6) 47.8 0.0 (11.6) 242.8 +32.1 Geographies Australia 227.9 25.4 (12.9) (13.5) 43.4 (2.4) (8.3) 259.6 +40.
Slide 27: Group Net Interest Margin (NIM)
Group Net Interest Margin (NIM) For personal use only NIM Movement bps bps (1H10 v 2H09) 2.9 (8.9) (5.4) 14.1 8.3 242.8 (5.0) 236.8 253.1 Ex-markets Up 14.9 bps 268.0 Group Up 6.0 bps 2H09 Funding Funding Deposit Assets Other Markets 1H10 & Asset mix costs Key Drivers of movement Movements Funding a
Slide 28: Australia Division Net Interest Margin (NIM)
Australia Division Net Interest Margin (NIM) For personal use only NIM Movement bps bps (1H10 v 2H09) 6.4 263.9 1.4 (5.8) 5.9 255.9 0.1 Up 8.0 bps 2H09 Funding & Funding Deposit Assets Other 1H10 Asset mix costs Key Drivers of movement Movements Deposits Resulting from customer switching to lower ma
Slide 29: New Zealand Businesses Net Interest Margin (NIM)
New Zealand Businesses Net Interest Margin (NIM) For personal use only NIM Movement bps bps (1H10 v 2H09) 23.3 (1.5) 213.7 207.8 2.4 (10.8) (7.5) Up 5.9 bps 2H09 Funding & Funding Deposit Assets Other 1H10 Asset mix costs Key Movements Drivers of movement Funding costs Impact of higher cost of whole
Slide 30: Global Institutional Net Interest Margin (NIM)
Global Institutional Net Interest Margin (NIM) For personal use only NIM Movement bps bps (1H10 v 2H09) (2.0) (30.7) 29.4 216.6 4.8 (8.7) (0.6) 208.8 276.3 Ex-markets Up 22.9 bps 299.2 Down 7.8 bps 2H09 Funding & Funding Deposit Assets Other Markets 1H10 Asset mix costs Key Drivers of movement Movem
Slide 31: Treasury
For personal use only 10 HALF YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED Treasury
Slide 32: 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 Mar 10 pro forma1 pro forma1 Core Tier 12 6.4% 9.0% 8.5% 8.2% 11.1% Tier 1 8.2% 10.6% 10.7% 10.4% 13.5% Total Capital 11.0% 13.7% 13.0%
Slide 33: Strong Tier-1 position, maintained post recent acquisitions
Strong Tier-1 position, maintained post recent acquisitions For personal use only Capital Position (Tier-1 Ratio) 13.5 0.85 (0.32) 0.63 (0.88) 0.08 (0.22) 10.56 10.70 (0.30) 10.40 Portfolio growth & mix 19bp increase Risk migration 9bp increase ING 75bp decrease Portfolio data review 8bp increase RB
Slide 34: Core Tier-1 position
Core Tier-1 position For personal use only Capital Position (Core Tier-1 Ratio) 11.1 0.85 (0.32) 0.06 (0.21) 8.96 (0.85) 8.49 (0.25) 8.24 Portfolio growth & mix 15bp increase Risk migration 7bp increase ING 75bp decrease Portfolio data review 6bp increase RBS 2bp decrease Non credit RWA 22bp decreas
Slide 35: Reconciliation of ANZ's capital position to FSA Basel II
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 36: 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 • Strong credit ratings maintained: AA / Aa1 (S&P / Moody‟s) 18% 17% 14% 6% 5% 5% • 81% of all funded assets financed by customer 15% 15% 17% lia
Slide 37: 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 ($b) strong investor diversification, which results in a 30 manageable forward funding requirement; 25 Benchmark issues in 20 AUD, USD, EUR, J
Slide 38: Liquidity Position
Liquidity Position For personal use only Maintaining post GFC liquidity position • Prime liquid asset portfolio increased to ($b) $63b (from average $60b over FY09): Covers well in excess of 12mth offshore wholesale funding maturities Portfolio well diversified by geography & counterparty 7.4 7.
Slide 39: Managing earnings denominated in non-AUD currencies
Managing the Group’s earnings denominated in non- AUD currencies For personal use only USD and Asian local currency hedging position • NZD remains ANZ‟s most significant single • 1H10 revenues have been translated at an non-AUD currency revenue exposure average AUD/USD rate of 0.9060 • USD and Asian
Slide 40: Risk Management
For personal use only 10 HALF YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED Risk Management
Slide 41: Credit risk charge on Credit Intermediation Trades decreased
Credit risk charge on Credit Intermediation Trades decreased For personal use only Counterparty Rating No. Notional Mark to Credit Risk Credit Risk Notional purchased Market on on Principal protection (US$m) Derivatives Derivatives Amount on principal (US$m) (A$m) corresponding amount Sold Protectio
Slide 42: Reduced credit exposure on Credit Intermediation Trade Portfolio
Reduced credit exposure on Credit Intermediation Trade Portfolio For personal use only • Overall credit exposure under the Credit Credit Intermediation Trades Intermediation Trade Portfolio is now substantially lower following the unwind of selected trades and AUDm USDb stabilisation of credit marke
Slide 43: Individual Provision charge reduced further
Individual Provision charge reduced further from March 09 peaks For personal use only IP Charge by Region: New & increased IP charge and reductions across Aus. & NZ $m Write Backs & Recoveries APEA increase off a low 2009 base 1,600 $m 1,531 1,200 1,600 800 1,400 1,283 400 0 1,200 -400 1,062 Mar 08
Slide 44: CP Charge indicative of movement through the credit cycle
CP Charge indicative of movement through the credit cycle and protracted period of NZ structural rebalancing For personal use only Collective Provision Charge by Division ($m) Lending Risk Impacts Cycle & Mix & migration Concentration Group Total 19 (20) 31 6 36 APEA 6 9 4 (ex Institutional) 0 Austr
Slide 45: CP coverage strengthened
CP coverage strengthened from higher CP balance and a reduction in Credit Risk Weighted Assets For personal use only Collective Provision Balance ($m) Total Credit Risk Weighted Assets ($b) 3,000 3,037 2,822 2,742 2,340 257.8 249.2 250.8 229.8 220.4 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 CP & Total Prov
Slide 46: Rate of growth in gross impaired facilities is slowing
Rate of growth in total gross impaired facilities 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
Slide 47: Watch & control list also stabilising
Watch & control list also stabilising For personal use only Watch & Control list by limits Watch List by Industry (March 2009 Watchlist index = 100) % Total Watch List Limits Index -100 -50 0 50 100 150 Agriculture, Forestry & Fishing Manufacturing Mar 09 Wholesale Trade Finance & Insurance Apr 09 C
Slide 48: Commercial Industry Exposures
Commercial Industry Exposures For personal use only $b Finance & Insurance $b Property Services 100 20% 100 15% 80 15% 80 60 60 10% 10% 40 40 5% 20 5% 20 0 0% 0 0% Mar 09 Sep 09 Mar 10 Mar 09 Sep 09 Mar 10 $b Agriculture, Forestry & Fishing Manufacturing $b 40 15% 40 15% 30 30 10% 10% 20 20 5% 5% 10
Slide 49: Commercial Industry Exposures
Commercial Industry Exposures For personal use only Retail Trade Transport & Storage $b $b 20 5% 20 5% 10 10 0 0% 0 0% Mar 09 Sep 09 Mar 10 Mar 09 Sep 09 Mar 10 $b Business Services $b Electricity, Water & Gas Supply 20 5% 20 5% 10 10 0 0% 0 0% Mar 09 Sep 09 Mar 10 Mar 09 Sep 09 Mar 10 Construction
Slide 50: Risk Grade Profiles
Risk Grade Profiles For personal use only Group Risk Grade profile by Institutional Risk Grade profile by Exposure at Default Exposure at Default 4.4% 5.7% 6.3% 6.4% 9.0% 8.9% 8.8% 9.4% 13.5% 13.0% 12.6% 2.7% 4.9% 5.4% 4.7% 13.0% 5.8% 5.2% 5.0% 4.8% 11.6% 11.6% 12.2% 11.6% 13.6% 13.8% 13.4% 12.6% 16
Slide 51: 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% 1.20% 0.50% 0.00% 0.90% Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Australia Commercial % of GLAs
Slide 52: Australia Retail - Mortgages
Australia Retail - Mortgages For personal use only Portfolio Statistics New Mortgage customer quality index • Average loan size at origination - $218k Index Mar 08 = 100 HIGHER QUALITY NEW CUSTOMERS • Average LVR at origination - 62.6% 104 103 • Average dynamic LVR – 47% 102 • % borrowers ahead on r
Slide 53: New Zealand provisions reducing from 2H09 highs
New Zealand – Provisions reducing from 2H09 highs, impaired loans reflective of protracted recovery For personal use only Total Provision Charge (NZDm) Total Impaired Loans (NZDm) and as % Gross Lending Assets 598 1.78% 194 330 291 63 1.21% 207 77 66 404 93 214 267 46 141 0.61% 47 1H08 2H08 1H09 2H0
Slide 54: Regional performance (Geographies & Divisions)
For personal use only 10 HALF YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED Investor Discussion Pack Regional performance (Geographies & Divisions)
Slide 55: Group loans and deposits
Group loans and deposits For personal use only Group Customer Deposits Group Net Loans and Advances (including acceptances) 07 08 09 1H10 07 08 09 1H10 17% 11% 14% 2% 13% 16% (1%) 1% ($b) ($b) 350 346 348 238 303 233 204 269 183 157 Sep 06 Sep 07 Sep 08 Sep 09 Mar 10 Sep 06 Sep 07 Sep 08 Sep 09 Mar
Slide 56: Net loans and advances by geography
Net loans and advances1 by geography For personal use only Australia New Zealand (NZD) APEA (USD) FY07 FY08 FY09 1H10 FY07 FY08 FY09 1H10 FY07 FY08 FY09 1H10 ($b) 13% 14% 0% 3% 13% 11% (1%) (1%) 31% 98% (14%) 6% 350 300 250 200 150 100 50 - Sep Sep Sep Sep Mar Sep Sep Sep Sep Mar Sep Sep Sep Sep Mar
Slide 57: 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% ($b) 200 180 160 140 120 100 80 60 40 20 - Sep Sep Sep Sep Mar Sep Sep Sep Sep Mar Sep Sep Sep Sep Ma
Slide 58: Diversified lending portfolio, weighted to secured mortgages
Diversified lending portfolio, weighted to secured mortgage portfolio For personal use only 1 Net Loans and Advances by product line (A$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 59: Positive contributions to profit across regions and segments
Positive contributions to profit across regions and segments For personal use only Net Profit After Tax Geographic view Australia NZ APEA 59 54 7 19 23 24 2298 52 57 61 126 1864 +19% in USD 218m, 15% 193m, 187% 25, 9% 1 1 1,2 3 2H09 Retail Com'cial Inst. Retail Com'cial Inst. Retail Inst. AP'ships G
Slide 60: Australia region performance
Australia region performance: acquisition impacts distort underlying performance For personal use only Underlying performance Half year movement (1H10 vs 2H09) Growth rates (1H10 vs 2H09) $m Acquisition 246 Underlying adjusted (114) 1,694 Net Interest 5% 5% 196 22 (132) Non interest 1% (8%) 1,476 To
Slide 61: Australia division: ING acquisition, margin improvement
Australia division: ING acquisition, margin improvement and lower provisions partly offset by fee changes For personal use only Underlying performance: Half year movement (1H10 vs 2H09) Growth rates (1H10 vs 2H09) $m Acquisition 184 (184) Underlying adjusted Net Interest 6% 6% 93 (74) 160 1,269 Non
Slide 62: Aus. Division: consistently investing for superior revenue growth
Aus. Division: consistently investing for superior revenue growth, notwithstanding slowing balance sheet demand For personal use only Continued investment consistently Lending and Deposit Growth1,2 returning superior revenue growth1 18% 18% 16% 16% 14% 14% 12% 12% 10% 10% 8% 8% 6% 6% 4% 4% 2% 2% 0%
Slide 63: Australia division: Investing in the business continues
Australia division: Investing in the business continues For personal use only Investing in the business Growing our Retail and Commercial Footprint • Acquired the remaining 51% of INGA and • Investment continues in metro and regional Landmark Assets & Liabilities areas to increase access to small bu
Slide 64: Aus. Retail: Mortgages well diversified
Aus. Retail: Mortgages well diversified & back to system, good deposit growth without price leading For personal use only Mortgages by channel (%) Deposit balance ($b) FLOWS FUM 19 17 17 19 16 16 33 31 37 45 46 37 46 39 29 33 29 45 44 45 24 29 33 38 37 38 18 22 1H08 2H08 1H09 2H09 1H10 Mar-10 Mar-08
Slide 65: Aus. Wealth: ING integration boosting wealth business
Aus. Wealth: ING integration boosting wealth business For personal use only ING profit impact from consolidation Total Wealth income ($m) ($m)1 144 102 29 420 47 52 87 152 199 24 50 23 28 1H09 2H09 1H10 1H09 2H09 1H10 ANZ Share Equity Accounted ANZ Share 4 month consolidated ING Share 2 INGA income
Slide 66: Aus. Commercial: Growing balance sheet
Aus. Commercial: Growing balance sheet during difficult market conditions For personal use only Commercial net loans and advances Share of Wallet1 – overall lending and including acceptances deposit FUM % $bn 6% 70 5% 46.2 65 43.8 43.8 3 3 3 60 Gap to leader Gap to leader 14 9% 15 14 13% Increase in
Slide 67: APEA: Continuing to build our presence in the region
Asia Pacific, Europe & America (APEA): Continuing to build our presence in the region For personal use only South and South East Asia • Successfully completed acquisition of RBS business in Vietnam and the Philippines • Obtained in-principle approval for a banking licence in India • Obtained a Quali
Slide 68: APEA contribution to Group earnings
APEA contribution to Group earnings delivered through diversified segments and markets For personal use only APEA earnings contribution to group Lower contribution AP PBP AP NPAT impacted by currency drag E&A PBP Lower contribution impacted E&A NPAT by currency drag 7% 5% 2% 3% 2% 3% 3% 2% 2% 2% 2%
Slide 69: APEA Performance: Solid performance in local currency
APEA Performance: Solid performance in local currency, currency translation a drag in 1H10 For personal use only Underlying Performance: Underlying Performance: HOH movement, USDm PCP movement, USDm Includes exceptional markets income particularly in Europe & America 36 (95) 49 (49) 29 (14) 279 52 3
Slide 70: APEA: Revenue and Expense analysis
APEA: Revenue and Expense analysis For personal use only Revenue / Expense “Jaws” (USD) Institutional earnings supplementing investments in Retail business Expense growth predominantly on expansion activities, including 2,293 100% additional FTE, investment in key 80% 52% strategic markets and Hong
Slide 71: APEA: Liability strategy attracting deposits
APEA: Liability strategy attracting deposits across the Asia Pacific region funding asset growth For personal use only Lending and Deposit growth Customer Deposits APEA 1H10 v 2H09, (USD) • Asia constitutes 60% of APEA customer deposits, with deposits skewed toward term deposits 6% • Impressive Inst
Slide 72: APEA: Continued strong contribution from Asia Partnerships
APEA: Continued strong contribution from Asia Partnerships For personal use only NPAT contribution (USDm) AMMB, BoT, Panin and SRCB 146 (63) 23 149 Other Partnerships 126 97 105 Actual Reported Actual Reported Reversal of SSI 83 impairment Acquisition and 62 accounting adjustments relating to BoT an
Slide 73: New Zealand: supporting customers through structural rebalancing
New Zealand – supporting customers through a period of structural rebalancing For personal use only Economic Outlook Market share positions2 • The New Zealand economy is stabilising 40% 36% and business conditions are slowly 33% 34% 29% beginning to improve, albeit growth remains subdued • Lending g
Slide 74: NZ Geography - revenue growth remains subdued
NZ Geography - revenue growth remains subdued while provisions are stabilising For personal use only Underlying Performance NZDm Underlying Performance NZDm HOH Movement (1H10 vs 2H09) PCP Movement (1H10 vs 1H09) 268 (89) 494 (39) (83) 372 (16) 55 372 (39) 20 4 35 134 3% 5% (1%) (45%) (146%) (3%) (1
Slide 75: NZ Geography: key drivers of performance
NZ Geography: key drivers of performance For personal use only Revenue and Expense Growth “Jaws” (NZD) Underlying NPAT Contribution (NZDm) 600 494 500 372 6% 400 5% 5% 300 134 4% 200 4% 100 0 -100 1H09 2H09 1H10 1% Retail & Wealth Commercial -1% Provision Charge NZDm 598 600 330 Revenue Expenses 400
Slide 76: NZ Businesses - provisions delivering different outcomes
NZ Businesses – provisions delivering very different performance outcomes on HoH vs PCP comparisons For personal use only Underlying Performance NZDm Underlying Performance NZDm HOH Movement (1H10 vs 2H09) PCP Movement (1H10 vs 1H09) 319 (29) (58) 5 (25) 180 (104) 217 51 217 32 (22) 19 66 (3%) 2% 4%
Slide 77: NZ Retail & Wealth: Lower provisions and ING acquisition
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 78: NZ Corporate & Commercial Banking
NZ Corporate & Commercial Banking: conditions are stabilising but 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 the 40% portfolio will contin
Slide 79: NZ Rural: portfolio exhibiting stress
NZ Rural: portfolio exhibiting stress despite some improved 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, l
Slide 80: NZ Institutional
NZ Institutional For personal use only • Maintained product leadership across the Underlying Performance NZDm largest Institutional customer base in Half Year movement (1H10 vs 2H09) New Zealand 91 32 194 • Continued to help customers strengthen balance sheets and diversify funding 2 10 127 • Levera
Slide 81: Global Institutional: Record profit in 1H10
Global Institutional: Record profit in 1H10 For personal use only Net Profit after tax (FX adjusted) Institutional Leadership Team and Product Focus strengthened $m 900 • New Institutional Leadership team 818 800 steering the strategy, building operational platforms, processes and culture 700 663 67
Slide 82: Institutional ex markets: record 1H10
Institutional ex markets1: Transaction Banking, Trade Lending & improved provisions contributing to record 1H10 For personal use only Underlying performance Underlying performance Half on Half (FX adjusted) Prior Comparative Period (FX adjusted) up 238% up 44% $m 280 (116) $m 202 (50) 394 394 46 (77
Slide 83: Markets contribution
Markets contribution For personal use only Markets income by type1 Trading & Balance Sheet: • Extreme market volatility in 1H09 105% created unprecedented opportunities 95% with FX Markets moving by approx 30% and interest rates falling 60% 85% • In 1H10 interest rate movements 75% provided continue
Slide 84: Economic updates
Economic updates For personal use only Australia New Zealand 2009 2010 2011 2012 2009 2010 2011 2012 GDP 0.9 3.0 3.2 3.6 -2.3 1.5 3.4 2.9 Inflation 2.2 2.6 2.6 3.0 1.7 1.8 3.1 2.1 Unemployment 5.3 5.3 4.9 4.5 6.5 7.2 6.0 5.8 Current A/C (% GDP) -3.3 -4.4 -2.7 -3.0 -3.2 -5.4 -3.9 -4.3 Cash rate 3.00
Slide 85: Economic updates: Emerging Asia GDP Growth Forecasts
Economic updates For personal use only Emerging Asia GDP Growth Forecasts 2008 2009 2010 2011 2012 China 9.3 8.5 10.1 9.6 10.5 India 7.5 6.4 7.0 8.4 8.7 Newly Industrialised Economies (NIEs) Hong Kong 2.3 -2.7 5.0 4.5 4.7 Korea 2.4 0.1 5.1 4.4 4.5 Singapore 1.4 -2.0 11.0 5.8 6.1 Taiwan 1.1 -1.9 4.4
Slide 86: 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 — H1 2010 Earnings Presentation on 6ix