Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Investor Presentation (September 2014)
19 slides from Anz's investor presentation, September 2014
Slide 1: 2014 New Zealand Update
2014 NEW ZEALAND UPDATE AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED September 2014 David Hisco Chief Executive Officer, New Zealand
Slide 2: New Zealand: Strong Core Market
New Zealand is “core” to ANZ’s strategy New Zealand: Strong Core Market Strong well established domestic franchise The largest bank in NZ New Zealand major bank ANZ NZ Geography • ~8,300 staff, ~2.1m customers Net Loans & Advances6 ANZ NZ Division vs NZDb 120 July 14 Sep 13 Market share 100 Retail 3
Slide 3: A significant contributor to the Group
A significant contributor to the Group Operating revenue by Cash NPAT by geography Customer lending by geography (1H14, AUD) (1H14, AUD) geography1 (1H14, AUD) Australia APEA Australia APEA Australia APEA 20% 15% 19% New New 19% New 62% 18% Zealand 58% Zealand 23% 66% Zealand NZ geography: operating
Slide 4: Our journey is to create New Zealand's best bank
Our journey is to create New Zealand’s best bank ANZ Group Strategy 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 of Australia APPROACH GROW
Slide 5: Significantly simplifying and focusing the business to create scale
Significantly simplifying and focusing the business to create scale Create Scale Leverage Scale Scale advantage 2010 - 2013 2013-2016 2017 2010 (FY10) 2014 (1H14) 2017 Core systems 2 1 1 Brands 2 1 1 ANZ brand 27% 43% Market leading consideration1 Staff engagement2 64% 78% Best practice NZ Geography
Slide 6: Growth has been achieved through disciplined execution, productivity and efficiency
Growth has been achieved through disciplined execution, productivity and efficiency New Zealand Geography New Zealand Division Cost to Income Net Profit after tax Cost to Income ROE NZDm 1,432 49.1% 48.4% 16% 27% 42.7% 12% 882 887 43.5% 38.1% 41.5% 697 8% 4% 0% 1 FY10 FY13 1H14 FY10 FY13 1H13 1H14 1
Slide 7: 2014 Half Year Results
2014 NEW ZEALAND UPDATE AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED September 2014 2014 Half Year Results
Slide 8: 1H14 results saw New Zealand geographic CTI below 40% for the first time
1H14 results saw New Zealand geographic CTI below 40% for the first time NZ Division 1H14 NPAT up 21% to NZD 598 million NZ Division ROE accretive to ANZ Group: up 235bps to 15.8%1 Efficiency Market Share Brand CTI 41.5% for NZ Brand consideration Both total lending & 649 Division v Sep 20102 compa
Slide 9: New Zealand Division delivered strong financial results in 1H14
New Zealand Division delivered strong financial results in 1H14 Profit Before Provisions Customer Lending Movement Mar 2014 v Mar 2013 Movement Mar 2014 v Mar 20131 NZDb NZDb 19.0 794.0 0.7 94.8 2.6 8.0 44.0 1.0 90.5 723.0 Up 10% Up 5% 1H13 Retail Commercial Other 1H14 1H13 Retail SBB C&A 1H14 Net P
Slide 10: Continued improvement to credit quality across the New Zealand book
Continued improvement to credit quality across the New Zealand book New Zealand Geography New Zealand Geography Net Impaired Assets Total Provision Charge NZDm Net Impaired Assets NIA as % GLA NZDm IP Charge CP Charge 1,685 200 105 85 150 103 99 100 44 22 50 -39 1,307 0 1,169 -50 -100 1H11 2H11 1H12
Slide 11: New Zealand home loan portfolio well diversified
New Zealand home loan portfolio well diversified Dynamic Loan to Home Loan 1H14 Portfolio Statistics Valuation Ratio portfolio by Region Total Number of Home Loan Accounts 484k 8% 3% 12% 10% Total Home Loan FUM (NZD) $61b 39% 47% 18% % of Total New Zealand Lending 59% 27% % of Total Group Lending 11
Slide 12: Commercial Property and Agriculture well managed
Commercial Property and Agriculture well managed Commercial Property Outstandings by New Zealand Agri Exposure and Average Region Probability of Default NZD Total Credit Exposure (LHS) APEA (LHS) New Zealand (LHS) Average PD (Non-Defaulted Customers) (RHS) NZDb Australia (LHS) % of Group GLA's (RHS)
Slide 13: Additional information
2014 NEW ZEALAND UPDATE AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED September 2014 Additional information
Slide 14: New Zealand benefiting from ANZ Corporate & Institutional position in Australia and growing strength in Asia
New Zealand benefiting from ANZ Corporate & Institutional position in Australia and growing strength in Asia 7 of the top 10 countries New Zealand Australia FDI accounts for 68% of all FDI trades with are from Asia Pacific region in New Zealand NZ$b 4% CAGR $80 $75 $70 Australia $14b South Korea $3.
Slide 15: NZ Economic Update
NZ Economic Update The foundations for solid growth remain in place. • Financial conditions are still consistent with 3% growth (growth >3% is not sustainable given supply-side capacity of the economy, which we put at a little under 3%) • Commodity prices (ex dairy and forestry) are holding up well
Slide 16: Still a lot of positives across the economy
Still a lot of positives across the economy GDP vs Confidence Composite – still a Unemployment rate falling: surfeit of strong feel-good factor labour less apparent 8 8 9 6 6 8 Annual % change Standardised 4 4 7 2 2 6 % 0 0 5 -2 -2 4 -4 -4 3 90 92 94 96 98 00 02 04 06 08 10 12 14 2 GDP (LHS) 95 97 9
Slide 17: More risks to manage and be mindful of
More risks to manage and be mindful of Average dairy farm profitability before Terms of trade still high despite falls in tax – good 2014, more challenging 2015 dairy prices 4,000 Forecast 1400 3,500 325 3,000 $ per hectare 1300 275 2,500 Index 2,000 1200 225 Index 1,500 1,000 1100 175 500 1000 125
Slide 18: Key thematics: solid growth, modest lifts in OCR, building boom
Key thematics: solid growth, modest lifts in OCR, building boom but restrained consumer & inflation to rise gradually Still solid growth for New Zealand Auckland and Canterbury housing undersupply a major stimulus 8 20 6 15 4 10 Regional Housing shortages „000 % 2 5 0 0 -2 -5 -4 -10 90 92 94 96 98 0
Slide 19: www.anz.com
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 potential investors and
Australia and New Zealand Banking Group — Investor Presentation (September 2014) on 6ix