Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Debt Investor Presentation (October 2022)
112 slides from Anz's debt investor presentation, October 2022
Slide 1: 2022 Full Year Results – Debt Investor Presentation
2022 FULL YEAR RESULTS FULL YEAR ENDED 30 SEPTEMBER 2022 DEBT INVESTOR PRESENTATION Approved for distribution by ANZ’s Continuous Disclosure Committee Australia and New Zealand Banking Group Limited 9/833 Collins Street Docklands Victoria 3008 Australia ABN 11 005 357 522
Slide 2: Contents
ANZ 2022 Full Year Debt Investor Presentation Results Presentations Chief Executive Officer (CEO) 5 Chief Financial Officer (CFO) 11 Investor Discussion Pack Group Performance 23 CONTENTS Environment, Social & Governance (ESG) 32 Divisional Performance 48 Treasury 56 Risk Management 73 Housing Portf
Slide 3: Disclaimer & Important Notice
ANZ 2022 Full Year Debt Investor Presentation DISCLAIMER & IMPORTANT NOTICE Background information only The information set out in this document and any accompanying verbal presentation including any question and answer session and any documents or other materials distributed with the presentation (
Slide 4: Disclaimer & Important Notice
ANZ 2022 Full Year Debt Investor Presentation DISCLAIMER & IMPORTANT NOTICE European Economic Area: This document is not directed at, and no Securities will be offered, sold or otherwise made available to, any retail investor in the European Economic Area (the "EEA"). For these purposes, a "retail i
Slide 5: Disclaimer & Important Notice
ANZ 2022 Full Year Debt Investor Presentation DISCLAIMER & IMPORTANT NOTICE Document subject to change The information contained in this document is provided as at the date of this document and is subject to change without notice. Neither the Bank, nor any of its affiliates, agents, employees or adv
Slide 6: 2022 Full Year Results – CEO
2022 FULL YEAR RESULTS SHAYNE ELLIOTT CHIEF EXECUTIVE OFFICER
Slide 7: FY22 Group Financial Results
ANZ 2022 Full Year Debt Investor Presentation FY22 GROUP FINANCIAL RESULTS FY22 vs FY21 Statutory profit, $ million 7,119 +16% Cash profit (continuing operations)1, $ million 6,515 +5% Return on equity1, % 10.4 +47bps Earnings per share - basic1, cents 228.8 +6% Dividend per share – fully franked, c
Slide 8: Growth Has Been Restored in Australia Home Loans
ANZ 2022 Full Year Debt Investor Presentation GROWTH HAS BEEN RESTORED IN AUSTRALIA HOME LOANS Home Loan performance RESTORE Australia Retail performance Processing capacity Home Loan balance2, $b Risk adjusted margins, % Momentum 6.9% in Australia +35% annualised home loans Sep 22 vs. Sep 21 6.16 6
Slide 9: ANZ Plus Already Delivering
ANZ 2022 Full Year Debt Investor Presentation ANZ PLUS ALREADY DELIVERING Strong momentum in customer acquisition and customer engagement LAUNCH Customer acquisitions1, ‘000s Total FUM1, $m ANZ Plus; drive customer 70 60 32% NTB share of 1,250 45% customers onboarded 1,000 of customers have 50 growt
Slide 10: Suncorp Bank Acquisition Provides a Platform for Growth
ANZ 2022 Full Year Debt Investor Presentation SUNCORP BANK ACQUISITION PROVIDES A PLATFORM FOR GROWTH Provides increased scale and diversification1 Pre-completion Solidifying Migration and ~12 months growth transformation Total GLA2 Business Lending (from July 22) ~3 years Beyond 17% 20% Conditions
Slide 11: Non-Operating Holding Company (NOHC)
ANZ 2022 Full Year Debt Investor Presentation NON-OPERATING HOLDING COMPANY (NOHC) Early 2022 – Oct 20221 • ANZ announced intention to establish a NOHC • Creating distinct banking and non-banking groups within the organisation • Engaged with APRA, RBNZ and foreign regulators • Approval received from
Slide 12: 2022 Full Year Results – CFO
2022 FULL YEAR RESULTS FARHAN FARUQUI CHIEF FINANCIAL OFFICER
Slide 13: 2022 Financial Performance
ANZ 2022 Full Year Debt Investor Presentation 2022 FINANCIAL PERFORMANCE CASH CONTINUING INCLUDING LARGE / NOTABLE ITEMS Full year Cash Profit Before Provisions, $m Cash NPAT, $m Cash ROE, % +7% +5% +47bps 8,369 8,396 8,968 6,198 6,515 9.9 10.4 3,758 6.0 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22
Slide 14: Cash Profit Performance
ANZ 2022 Full Year Debt Investor Presentation CASH PROFIT PERFORMANCE CASH CONTINUING INCLUDING LARGE / NOTABLE ITEMS 2H22 vs 1H22, $m 902 Cash profit -21 -61 3,402 9% -340 -119 3,113 -72 Cash profit (ex L/N) 1H22 2H22 11% -41 -113 PBP1 (ex L/N) 20% 1H22 Large / Income BAU expenses Investment Provis
Slide 15: Revenue Growth
ANZ 2022 Full Year Debt Investor Presentation REVENUE GROWTH CASH CONTINUING EXCLUDING LARGE / NOTABLE ITEMS Group Revenue performance, 2H22 vs 1H22 $m Divisional performance, 2H22 vs 1H22 Revenue growth Revenue 20% 10% 6% 10% 12% 234 9,581 Aus. Retail Aus. Comm. Institutional1 New Zealand 455 (NZD)
Slide 16: Net Interest Margin Expansion
ANZ 2022 Full Year Debt Investor Presentation NET INTEREST MARGIN EXPANSION CASH CONTINUING INCLUDING LARGE / NOTABLE Group NIM, bps Exit margin (Sep 22 month) 1.80% 7 171 168 17 -3 -1 -1 158 -9 NZ Retail -3 TDs 2 Aus. Retail -5 At-Call 15 Aus. Commercial -1 1H22 Asset pricing Deposit pricing and As
Slide 17: Customer Deposit Portfolio Contribution to NIM Expansion
ANZ 2022 Full Year Debt Investor Presentation CUSTOMER DEPOSIT PORTFOLIO CONTRIBUTION TO NIM EXPANSION Deposit portfolios excluding Replicating balances1, $b 537 521 Group NIM movement contributions in 2H222 Term 37% 35% Term Deposits Business At-Call Retail At-Call Group total Deposits +2bps +8bps
Slide 18: NIM Outlook Considerations
ANZ 2022 Full Year Debt Investor Presentation NIM OUTLOOK CONSIDERATIONS • Higher capital & replicated deposit earnings • Rising rate environment Tailwinds “We expect the • Increasing mix of variable rate home loan flows environment will continue to be supportive for margins in the first half, altho
Slide 19: Markets Income Diversification, Impact from Global Events
ANZ 2022 Full Year Debt Investor Presentation MARKETS INCOME DIVERSIFICATION, IMPACT FROM GLOBAL EVENTS CASH CONTINUING EXCLUDING LARGE / NOTABLE ITEMS Customer franchise income, $m Total Markets income, $m 1,012 21 930 7 812 589 590 402 741 561 445 223 206 32 53 53 139 478 30 589 590 561 478 60 43
Slide 20: Run the Bank Expense Uplift Offset by Productivity Actions
ANZ 2022 Full Year Debt Investor Presentation RUN THE BANK EXPENSE UPLIFT OFFSET BY PRODUCTIVITY ACTIONS CASH CONTINUING EXCLUDING LARGE / NOTABLE ITEMS (FX ADJUSTED) Half on half 1$m Full Year run the bank expense uplift and productivity outcomes1, $m 289 Expense uplift Run the bank expenses broadl
Slide 21: Investments Shifting in Line with Priorities
ANZ 2022 Full Year Debt Investor Presentation INVESTMENTS SHIFTING IN LINE WITH PRIORITIES CASH CONTINUING INCLUDING LARGE / NOTABLE ITEMS Total Investment Spend, $m Capitalised Software Balance1, $b 79% expensed 87% expensed Estimated share of investment spend in FY23 3.0 2,173 ~30% 1,810 25% 2.5 2
Slide 22: Continued Disciplined Management of Expenses
ANZ 2022 Full Year Debt Investor Presentation CONTINUED DISCIPLINED MANAGEMENT OF EXPENSES CASH CONTINUING EXCLUDING LARGE / NOTABLE ITEMS Total expenses, FY22 vs FY21 $m Flat run the bank expenses 9,170 “Looking ahead, expense trends will 488 45 be impacted by headwinds arising 289 from wage and ve
Slide 23: Changes to CP Balance Reflect the Uncertain Environment
ANZ 2022 Full Year Debt Investor Presentation CHANGES TO CP BALANCE REFLECT THE UNCERTAIN ENVIRONMENT Collective Provision (CP) balance and movement, $m Expected Credit Loss (ECL) scenarios2, $m +34% 6,951 670 36 3,853 3,853 3,757 3,239 727 -332 278 2,103 of 2,869 mgmt. 1,376 adjustments -556 Predom
Slide 24: Group Performance – Investor Discussion Pack
2022 FULL YEAR RESULTS GROUP PERFORMANCE INVESTOR DISCUSSION PACK
Slide 25: Balance Sheet Composition
ANZ 2022 Full Year Debt Investor Presentation BALANCE SHEET COMPOSITION Exposure at default 1, EOP $b Risk weighted assets, EOP $b Net loans & advances, EOP $b Customer deposits, EOP $b 1,152 455 672 620 611 438 2% 651 0% 594 1% 1,103 630 1% 1,080 7% 2% 614 1% 1% 1,045 416 0% 562 8% 408 0% 15% 7% 2%
Slide 26: Net Loans and Advances
ANZ 2022 Full Year Debt Investor Presentation NET LOANS AND ADVANCES Australia Retail, $b Australia Commercial, $b New Zealand, NZDb Institutional, $b +2% +4% +1% +12% 284 285 290 60 139 140 197 57 58 6 6 6 2 135 1 1 175 41 38 37 158 17 18 20 39 34 1 2 27 2 278 278 284 135 123 100 101 114 40 39 39 9
Slide 27: Customer Deposits
ANZ 2022 Full Year Debt Investor Presentation CUSTOMER DEPOSITS CONTINUING OPERATIONS Australia Retail, $b Australia Commercial, $b New Zealand, NZDb Institutional, $b +2% 0% +6% -4% 150 116 108 108 259 147 112 244 1 141 111 102 240 19 2 2 43 21 21 41 36 39 40 106 34 103 102 14 16 16 67 22 62 62 21
Slide 28: Total Operating Income
ANZ 2022 Full Year Debt Investor Presentation TOTAL OPERATING INCOME CONTINUING OPERATIONS Total income by division, $b Net interest income by division, $b Other operating income, $b 9.6 7.8 1.8 1.8 1.8 0.3 0.1 9.0 8.9 0.1 0.1 0.1 7.2 7.1 0.3 7.0 1.4 0.1 8.4 0.2 0.1 0.1 0.1 0.0 0.2 0.0 1.9 1.7 0.3 1
Slide 29: Illustrative Capital and Replicated Deposit Portfolio Benefits
ANZ 2022 Full Year Debt Investor Presentation ILLUSTRATIVE CAPITAL AND REPLICATED DEPOSIT PORTFOLIO BENEFITS FROM INCREASING AUD, NZD, USD RATE ENVIRONMENT Portfolio Balance, EOP $b Portfolio interest earning rates impact 3 Illustrative potential NII benefit 142 141 PROSPECTIVE BENEFIT4 FROM 2.4% HI
Slide 30: Interest Rate Sensitivity
ANZ 2022 Full Year Debt Investor Presentation INTEREST RATE SENSITIVITY Illustrative path & magnitude of movements Short term interest rate outlook – based on ANZ research forecasts1 Interest Rate Forecasts (%) Dec 22 Mar 23 Jun 23 Sep 23 Dec 23 Mar 24 Jun 24 RBA Cash Rate 2.85 3.35 3.60 3.60 3.60 3
Slide 31: Expense Management
ANZ 2022 Full Year Debt Investor Presentation EXPENSE MANAGEMENT Total expenses by division, $b Total expenses by category, $b Full time equivalent staff, ‘000s 4.8 4.8 4.8 4.8 39.7 39.5 39.0 4.6 4.6 37.8 1.1 1.1 4.5 4.5 1.1 0.5 0.7 1.1 0.5 0.9 0.9 0.5 0.8 0.9 10.5 10.2 10.1 0.7 0.1 9.6 0.6 0.0 0.6
Slide 32: Large / Notable Items
ANZ 2022 Full Year Debt Investor Presentation LARGE / NOTABLE ITEMS Customer Remediation, $m Large / Notable items, $m Continuing Operations Pre-Tax FY21 1H22 2H22 FY22 485 Cash Profit (854) (41) (113) (154) 119 Business divestments/closures (146) 249 (6) 243 352 29 86 Customer remediation and Litig
Slide 33: Environment, Social & Governance (ESG)
2022 FULL YEAR RESULTS ENVIRONMENT, SOCIAL & GOVERNANCE (ESG) INVESTOR DISCUSSION PACK
Slide 34: ESG Governance Overview
ANZ 2022 Full Year Debt Investor Presentation ESG GOVERNANCE OVERVIEW Board of Directors Paul O'Sullivan, Chairman Audit Risk Ethics, Environment, Social Digital Business Human Nomination and Committee Committee And Governance (EESG) and Technology Committee Resources Board Operations Committee Chai
Slide 35: Board and Executive Committees at Work Together
ANZ 2022 Full Year Debt Investor Presentation BOARD AND EXECUTIVE COMMITTEES AT WORK TOGETHER Indicative responsibilities demonstrate how committees manage ESG Ethics, Environment, Social and Governance Board Committee Ethics and Responsible Business Management Committee Purpose: oversee measures to
Slide 36: Our FY22 ESG Performance Against Targets
ANZ 2022 Full Year Debt Investor Presentation OUR FY22 ESG PERFORMANCE AGAINST TARGETS Financial Wellbeing Improving the financial wellbeing of our people, customers and communities by helping them make the most of their money throughout their lives Target Performance Since October 2021, we have sup
Slide 37: Our FY22 ESG Performance Against Targets
ANZ 2022 Full Year Debt Investor Presentation OUR FY22 ESG PERFORMANCE AGAINST TARGETS Environmental Sustainability Supporting household, business and financial practices that improve environmental sustainability Target Performance Fund and facilitate at least AU$50 billion by 2025 Since October 201
Slide 38: Our FY22 ESG Performance Against Targets
ANZ 2022 Full Year Debt Investor Presentation OUR FY22 ESG PERFORMANCE AGAINST TARGETS Environmental Sustainability Supporting household, business and financial practices that improve environmental sustainability Target Performance We have continued to improve our management of climate risks within
Slide 39: Our FY22 ESG Performance Against Targets
ANZ 2022 Full Year Debt Investor Presentation OUR FY22 ESG PERFORMANCE AGAINST TARGETS Housing Improving the availability of suitable and affordable housing options for all Australians and New Zealanders Target Performance Fund & facilitate AU$10 billion of investment by 2030 to deliver more Since O
Slide 40: Our FY22 ESG Performance Against Targets
ANZ 2022 Full Year Debt Investor Presentation OUR FY22 ESG PERFORMANCE AGAINST TARGETS Fair and responsible banking Keeping pace with the expectations of our customers, employees and the community, behaving fairly and responsibly and maintaining high standards of conduct Target Performance Implement
Slide 41: Our ESG Related Disclosures
ANZ 2022 Full Year Debt Investor Presentation OUR ESG RELATED DISCLOSURES ESG Supplement ESG Briefing Climate Change Disclosures ESG Annual event Climate change information & to brief commitment progress investors on and climate against our ESG matters related financial ESG targets disclosures anz.c
Slide 42: Our Approach to Climate
ANZ 2022 Full Year Debt Investor Presentation OUR APPROACH TO CLIMATE ANZ’s Climate Ambition To be the leading Australia and New Zealand-based bank in supporting customers to transition to net zero emissions by 2050 The opportunity The pathway to net zero emissions presents significant financing opp
Slide 43: How We Measure and Communicate
ANZ 2022 Full Year Debt Investor Presentation HOW WE MEASURE AND COMMUNICATE External Report Card – Reputation Indicators Context • Reputation indicators are increasingly being used by investors and analysts to understand our approach to ESG issues and to measure our ESG performance against our peer
Slide 44: Customer Engagement to Support Emissions Reductions
ANZ 2022 Full Year Debt Investor Presentation CUSTOMER ENGAGEMENT TO SUPPORT EMISSIONS REDUCTIONS 100 of our largest emitting business customers • Engaging with 100 of our largest emitting business customers, supporting them to establish or strengthen transition plans • These customers produced >150
Slide 45: Aligning Our Lending to the Paris Agreement Goals
ANZ 2022 Full Year Debt Investor Presentation ALIGNING OUR LENDING TO THE PARIS AGREEMENT GOALS • First Australian bank to sign up to the Net Zero Banking Alliance (NZBA) • On track to set 2030 targets for nine priority sectors in line with our NZBA commitment, aimed at ensuring at least 75% of our
Slide 46: Priority Sectors: Progress Update – Large Commercial Buildings
ANZ 2022 Full Year Debt Investor Presentation PRIORITY SECTORS: PROGRESS UPDATE – LARGE COMMERCIAL BUILDINGS EMISSIONS INTENSITY Commercial Real Estate - Shopping Centres GHG1 Intensity, kg CO2/m2NLA (Net Lettable Area) • Portfolio emissions intensity in the Commercial Building sector continues to 8
Slide 47: Priority Sectors: Progress Update – Power Generation
ANZ 2022 Full Year Debt Investor Presentation PRIORITY SECTORS: PROGRESS UPDATE – POWER GENERATION PORTFOLIO EMISSIONS INTENSITY Power generation GHG 1 Intensity (kg CO2/MWh) 500 ANZ vs. target pathway + 47% 400 • To ensure the ongoing completeness, accuracy and consistency of our reporting, we ar
Slide 48: Our Resources Portfolio
ANZ 2022 Full Year Debt Investor Presentation OUR RESOURCES PORTFOLIO Resources Portfolio, EAD1 $b Thermal Coal Mining, EAD1 $b 20.0 2.0 1.7 1.5 0.6 17.3 17.0 1.3 16.2 0.8 0.5 0.7 0.8 1.0 1.2 15.3 1.0 0.9 14.5 2.9 0.4 14.0 0.7 13.8 1.1 0.7 1.5 1.2 0.2 0.5 0.5 0.8 0.9 13.0 0.4 0.3 0.5 1.0 1.7 1.0 1.2
Slide 49: Divisional Performance
2022 FULL YEAR RESULTS DIVISIONAL PERFORMANCE INVESTOR DISCUSSION PACK
Slide 50: Australia Retail – Financial Performance
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIA RETAIL – FINANCIAL PERFORMANCE Balance Sheet Income Expenses / FTE Credit Quality / RWAs Profit and Returns NLAs1 ($b) NII/OOI Contribution ($m) Expenses ($m) Total Provision Charge ($m) Cash Profit ($m) 289 3,252 3,247 3,185 1,502 1,488 1,512
Slide 51: Australia Retail – Loans & Deposits
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIA RETAIL – LOANS & DEPOSITS Lending composition1, $b Deposit composition2, $b 289 147 149 288 141 285 135 284 6 26 25 7 21 23 6 6 36 39 41 43 281 278 278 283 20 16 14 16 58 63 66 65 Mar 21 Sep 21 Mar 22 Sep 22 Mar 21 Sep 21 Mar 22 Sep 22 Home Loa
Slide 52: Australia Commercial – Financial Performance
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIA COMMERCIAL – FINANCIAL PERFORMANCE Balance Sheet Income Expenses / FTE Credit Quality / RWAs Profit and Returns NLAs1 ($b) NII / OOI Contribution ($m) Expenses ($m) Total Provision Charge ($m) Cash Profit ($m) 56 59 55 56 1,574 653 672 635 649
Slide 53: Australia Commercial – Book Composition & Risk Weight Intensity
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIA COMMERCIAL – BOOK COMPOSITION & RISK WEIGHT INTENSITY Diversified portfolio – Geographical view Security profile Sep 22 % of Exposure at Default (EAD)1,2 % of Exposure at Default (EAD)1,3 4% 5% 5% 3% 5% 3% 5% 6% 12% 14% 13% 13% 12% 8% 29% VIC/T
Slide 54: New Zealand Division – Financial Performance
ANZ 2022 Full Year Debt Investor Presentation NEW ZEALAND DIVISION – FINANCIAL PERFORMANCE Balance Sheet Income Expenses / FTE Credit Quality / RWAs Profit and Returns NLAs1 (NZDb) & NIM NII/OOI Contribution (NZDm) Expenses (NZDm) Total Provision Charge (NZDm) Cash Profit (NZDm) 2,067 734 728 61 920
Slide 55: New Zealand Division – Balance Sheet
ANZ 2022 Full Year Debt Investor Presentation NEW ZEALAND DIVISION – BALANCE SHEET Housing1 Business2 Agri ANZ Performance (NZDb) ANZ Performance (NZDb) ANZ Performance (NZDb) 150 30 30 95.4 98.8 103.1 104.2 19.0 19.4 100 20 17.6 18.1 20 16.5 16.1 15.7 15.4 50 10 10 0 0 0 Mar 21 Sep 21 Mar 22 Sep 22
Slide 56: Institutional – Financial Performance
ANZ 2022 Full Year Debt Investor Presentation INSTITUTIONAL – FINANCIAL PERFORMANCE Balance Sheet Income Expenses / FTE Credit Quality / RWAs Profit and Returns NLAs1 ($b) & NIM Product Composition3 ($m) Expenses ($m) Total Provision Charge ($m) Cash Profit ($m) 197 2,637 175 2,478 2,432 2,387 17 17
Slide 57: Treasury
2022 FULL YEAR RESULTS TREASURY INVESTOR DISCUSSION PACK
Slide 58: Regulatory Capital – 4Q22 Update
ANZ 2022 Full Year Debt Investor Presentation REGULATORY CAPITAL – 4Q22 UPDATE Capital update APRA Level 2 Common Equity Tier 1 (CET1) ratio, % ● Level 2 CET1 ratio of 12.3% (19.2% on an Internationally Comparable basis1) or ~11.1% 4Q22 Movement on a pro forma basis including Suncorp Bank acquisitio
Slide 59: Regulatory Capital – 2H22 Update
ANZ 2022 Full Year Debt Investor Presentation REGULATORY CAPITAL – 2H22 UPDATE APRA Level 2 Common Equity Tier 1 (CET1) Ratio – 2H22 Movement, % 0.80 0.80 12.29 -0.22 11.53 -0.16 -0.41 -0.05 ~11.1 ~ -1.2 Mainly IRRBB RWA increase in Q3 Mar 22 Cash Underlying CRWA Underlying Net Dividends Capital Ded
Slide 60: Regulatory Capital
ANZ 2022 Full Year Debt Investor Presentation REGULATORY CAPITAL Key Capital Ratios (%) Sep 21 Mar 22 Sep 22 Risk weighted assets – Level 2, $b Level 2 CET1 capital ratio 12.3 11.5 12.3 Total Credit RWA increase $10.6b 10.0 6.3 454.7 Level 2 CET1 HoH mvmt -10 bps -81 bps +76 bps 3.9 441.8 437.9 -2.0
Slide 61: Internationally Comparable Regulatory Capital Position
ANZ 2022 Full Year Debt Investor Presentation INTERNATIONALLY COMPARABLE1 REGULATORY CAPITAL POSITION Level 2 capital ratio (APRA vs internationally comparable)2, % 26.3 27.3 24.9 5.4 5.8 4.6 18.4 2.5 2.3 18.2 2.3 16.6 4.1 4.2 3.4 2.0 1.7 1.7 18.3 18.0 19.2 12.3 11.5 12.3 APRA Int. Comparable APRA I
Slide 62: CET1 and Leverage in a Global Context
ANZ 2022 Full Year Debt Investor Presentation CET1 AND LEVERAGE IN A GLOBAL CONTEXT CET1 ratios1,2, % Leverage1,2,3, % 0% 5% 10% 15% 20% 0% 2% 4% 6% 8% Svenska Handelsbanken OCBC SEB BBVA ANZ Swedbank RBI Danske Bank UOB Nordea Erste Bank Credit Agricole Group Rabobank ANZ pro-forma4 UniCredit DBS A
Slide 63: Balance Sheet Structure
ANZ 2022 Full Year Debt Investor Presentation BALANCE SHEET STRUCTURE1 NSFR movement, % Pro forma NSFR is ~116% once RSF benefit associated with Balance sheet composition, Sep 22 TFF and CLF2 is removed 2.4 123.8 0.4 1.0 0.5 119.1 Short Term Wholesale Debt & -6.7 -1.1 -1.2 Other Funding10 Liquid and
Slide 64: Liquidity Coverage Ratio (LCR) Summary
ANZ 2022 Full Year Debt Investor Presentation LIQUIDITY COVERAGE RATIO (LCR) SUMMARY1 Movement in average LCR surplus2, $b LCR composition, Average FY22 $b FY21 FY22 Avg LCR 137% Avg LCR 131% 25 241 Other LCR Liquids5 -2 61 2 56 -18 185 -2 -10 Wholesale funding HQLA1 Customer deposits & other4 FY21
Slide 65: Term Wholesale Funding Portfolio
ANZ 2022 Full Year Debt Investor Presentation TERM WHOLESALE FUNDING PORTFOLIO1 Issuance, $b Maturities, $b 32 31 27 24 25 22 22 17 16 17 11 8 8 1 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29+ Senior Unsecured Covered Bonds Tier 2 RMBS TFF NZ FLP / TLF • ANZ’s term funding r
Slide 66: ANZ's Tier 2 Capital Profile
ANZ 2022 Full Year Debt Investor Presentation ANZ’S TIER 2 CAPITAL PROFILE1 ANZ’s Tier 2 capital requirement to progressively increase Tier 2 capital, Notional amount % to meet TLAC requirement • ANZBGL has issued $15.3b since July 2019 across AUD, EUR, GBP, JPY, SGD and USD • APRA announced a final
Slide 67: Australian TLAC in a Global Context
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIAN TLAC IN A GLOBAL CONTEXT Australian banks’ Tier 2 is supported by large amounts of CET1 and AT1 capital Australia Canada Scandinavia Netherlands France Singapore % RWA 35 30 25 ANZ Tier 2 20 15 10 5 0 ANZ CBA Westpac NAB BMO TD Bank RBC CIBC S
Slide 68: Australian TLAC in a Global Context
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIAN TLAC IN A GLOBAL CONTEXT Australian TLAC is well protected from a theoretical loss of 5% of total assets % Total Australia Canada Scandinavia Netherlands France Singapore Assets 11 10 9 8 7 6 5% Loss of Total Assets 5 4 3 2 1 0 Westpac NAB ANZ
Slide 69: Australian TLAC in a Global Context
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIAN TLAC IN A GLOBAL CONTEXT Australian TLAC offers investors higher returns than global peers Internationally comparable RWA ratios1 10NC5Y spreads2 10Y spreads2 ANZ Tier 2 340 340 ANZ 28% Australia CBA 27% NPS/HoldCo NAB 26% Senior Westpac 26% 3
Slide 70: Capital & Replicating Deposits Portfolio
ANZ 2022 Full Year Debt Investor Presentation CAPITAL & REPLICATING DEPOSITS PORTFOLIO Australia, % Portfolio earnings rate, Average % 4 Portfolio Earnings Rate is a combination Australia New Zealand of term swap rates (hedged component) and 3mth BBSW (unhedged) 1H20 1.64% 1.88% 3 2H20 1.20% 1.40% 2
Slide 71: Basel III CET1 Reforms and TLAC Finalisation
ANZ 2022 Full Year Debt Investor Presentation BASEL III CET1 REFORMS AND TLAC FINALISATION APRA CET1 reforms Updated minimum capital requirements, % • Revisions to capital framework finalised in November 2021 • Implementation on 1 January 2023 18.25% • The reforms will result in changes to the calcu
Slide 72: Capital & Liquidity Framework
ANZ 2022 Full Year Debt Investor Presentation CAPITAL & LIQUIDITY FRAMEWORK1 First Half CY2022 Second Half CY2022 CY2023 Implementation Date RBNZ Capital Framework Transition 2028 Leverage Ratio 2023 Standardised Approach to Credit Risk 2023 Internal Ratings-based Approach to Credit Risk 2023 Operat
Slide 73: Risk Management
2022 FULL YEAR RESULTS RISK MANAGEMENT INVESTOR DISCUSSION PACK
Slide 74: Long Run Provisions & Loss Rates
ANZ 2022 Full Year Debt Investor Presentation LONG RUN PROVISIONS & LOSS RATES Total credit impairment charge, $m 1,800 1,500 1,200 900 600 300 0 -300 -600 -900 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21
Slide 75: Individual Provision (IP) Charge
ANZ 2022 Full Year Debt Investor Presentation INDIVIDUAL PROVISION (IP) CHARGE IP charge, $m IP charge by division, $m 626 626 1 398 395 380 272 380 398 395 807 187 7 0 3 6 592 35 40 49 500 69 35 532 87 62 375 -8 155 170 266 162 123 187 247 168 3 158 175 55 93 93 80 103 54 51 87 195 59 69 5 185 156
Slide 76: Collective Provision (CP) Balance & Charge
ANZ 2022 Full Year Debt Investor Presentation COLLECTIVE PROVISION (CP) BALANCE & CHARGE CP charge, $m CP balance by category, $m 1.39% 1.25% 1.22% 1.17% 1H19 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1.08% 1.07% 0.98% 0.94% 5,008 CP charge 13 4 1,048 669 -678 -145 -371 60 4,501 696 11 4,285 4,195 3,853 74
Slide 77: Collective Provision (CP) Balance
ANZ 2022 Full Year Debt Investor Presentation COLLECTIVE PROVISION (CP) BALANCE CP balance by division, $b Provision balance by stage, $b Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 Mar 22 Sep 22 30 September 2021 30 September 2022 Australia Retail 0.93 0.91 1.18 1.42 1.11 1.07 0.91 0.90 2.21 Australi
Slide 78: Portfolio Composition and Coverage Ratios
ANZ 2022 Full Year Debt Investor Presentation PORTFOLIO COMPOSITION AND COVERAGE RATIOS Portfolio composition Gross Loans and Advances Credit RWA Exposure at Default1 Exposure at Default1 Expected Credit Loss (ex Sovereign & Bank) (Collective Provision balance) $1,152b $3.85b 1% 2% 23% $845b $676b 4
Slide 79: Expected Credit Loss – Economic Scenarios
ANZ 2022 Full Year Debt Investor Presentation EXPECTED CREDIT LOSS – ECONOMIC SCENARIOS: MODELLED OUTCOMES (COLLECTIVE PROVISION BALANCE SCENARIOS)¹ Sep 22, $m Weightings to scenarios to determine CP balance Economic scenarios Actual Base case 2 0% 45% 40% 15% 30 September 2022 CY2019A CY2020A CY202
Slide 80: Impaired Assets
ANZ 2022 Full Year Debt Investor Presentation IMPAIRED ASSETS Control list, Index Sep 16=100 New impaired assets by division, $m 150 2,000 1,570 1,500 100 1,219 1,121 1,117 1,000 890 611 639 599 50 500 0 0 Sep Sep Sep Sep Sep Sep Sep Mar 19 Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 Mar 22 Sep 22 16 17 18 1
Slide 81: Risk Weighted Assets (RWA)
ANZ 2022 Full Year Debt Investor Presentation RISK WEIGHTED ASSETS (RWA) Total RWAs, $b Credit RWA drivers, $b 449 455 22.9 438 429 417 48 416 48 408 48 0.5 359.4 396 48 47 15 48 -5.4 47 47 -0.9 38 22 12 41 13 19 25 178 156 157 163 144 142 144 153 342.5 -0.2 8 7 8 8 7 7 7 7 53 57 62 56 57 59 56 59 4
Slide 82: Risk Weighted Assets & Exposure at Default Composition
ANZ 2022 Full Year Debt Investor Presentation RISK WEIGHTED ASSETS & EXPOSURE AT DEFAULT COMPOSITION1 EAD composition, $b EAD & CRWA movement, HoH FX adjusted $b 1,152 27.9 1,103 8 1,075 1,080 40 1,045 7 10 1,026 6 42 49 51 1,010 10 44 977 9 45 47 968 48 50 10 45 13 9 47 44 6.7 5.7 56 53 46 46 1.7 2
Slide 83: Total Portfolio Composition
ANZ 2022 Full Year Debt Investor Presentation TOTAL PORTFOLIO COMPOSITION Exposure at Default (EAD) distribution % of Impaired Assets Gross Impaired Category % of Group EAD 1 to EAD 1 Assets2 Sep 21 Mar 22 Sep 22 Sep 21 Mar 22 Sep 22 Sep 22 Consumer Lending 40.1% 39.3% 37.8% 0.1% 0.1% 0.1% $453m Fin
Slide 84: Commercial Property – Segments of Interest
ANZ 2022 Full Year Debt Investor Presentation COMMERCIAL PROPERTY – SEGMENTS OF INTEREST Outstandings by region, GLA $b Outstandings by sector, % 7.6% 7.4% 7.6% 6.9% 6.6% 6% 6% 8% 7% 7% 50.9 3% 4% 2% 2% 2% 47.1 46.8 2.3 23% 21% 18% 18% 18% 2.1 2.2 42.9 40.2 10.9 2.8 2.9 10.9 10.9 27% 29% 30% 28% 29%
Slide 85: ANZ Institutional Portfolio
ANZ 2022 Full Year Debt Investor Presentation ANZ INSTITUTIONAL PORTFOLIO Size & tenor by market of incorporation, $b Industry composition EAD Sep 221 Finance 14% Government Administration & Defence 523 32% 3% Property & Business Services 3% 500 Services To Finance & Insurance 5% A$523b¹ Manufacturi
Slide 86: ANZ Asian Institutional Portfolio
ANZ 2022 Full Year Debt Investor Presentation ANZ ASIAN INSTITUTIONAL PORTFOLIO Market of incorporation ANZ Asia industry composition 2% Finance 4% 8% 2% 19% Manufacturing 8% 3% 3% Wholesale Trade China South Korea 6% 3% 3% Services to Finance & Insurance Japan India A$116b¹ A$116b¹ Property & Busin
Slide 87: Housing Portfolio
2022 FULL YEAR RESULTS HOUSING PORTFOLIO INVESTOR DISCUSSION PACK
Slide 88: Australia Home Loans – Portfolio Overview
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIA HOME LOANS – PORTFOLIO OVERVIEW Unless otherwise stated metrics are based on balances Portfolio1 Flow2 Portfolio1 FY20 FY21 FY22 FY21 FY22 FY20 FY21 FY22 Number of Home Loan accounts 1,008k 1,002k 968k 179k3 172k3 Average LVR at Origination9,10
Slide 89: Australia Home Loans – Portfolio Composition
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIA HOME LOANS – PORTFOLIO COMPOSITION Home Loan flows (Gross Loans & Advances1), $b Loan balance & lending flows1, $b 13 11 15 12 5 53 1 9 9 6 7 7 7 0 8 4 8 283 7 8 7 278 3 1 2 8 7 7 -64 8 2 2 3 13 6 2 8 8 7 8 1 28 28 26 26 27 24 26 24 25 21 23 17
Slide 90: Australia Home Loans – Portfolio Composition & Flow
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIA HOME LOANS – PORTFOLIO COMPOSITION & FLOW By Purpose, % of Total Balances By Origination LVR4,5, % of Total Balances Portfolio 1,2 Flow3 Flow3 2% 2% 1% 0% 17% 22% 17% 30% 30% 31% 35% 20% 21% 20% 68% 68% 68% 65% 63% 57% 63% Sep 20 Sep 21 Sep 22
Slide 91: Australia Home Loans – Portfolio Resilience
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIA HOME LOANS – PORTFOLIO RESILIENCE Home Loans repayment profile1,2 Home Loans on time and <1 month ahead profile2,3 % of accounts ahead of repayments % composition of accounts 40 Investment: Interest payments may 33% receive negative gearing/tax
Slide 92: Australia Home Loans – Portfolio Resilience
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIA HOME LOANS – PORTFOLIO RESILIENCE Fixed rate Home Loan expiry profile, $b ANZ flow borrowing capacity1, FY22 27 7% 3% 21 21 18 Surplus Capacity Minimal Capacity 14 At Capacity 11 11 90% 30+ DPD at Sep 22 by fixed rate expiry month 1H22 2H22 1H2
Slide 93: Australia Home Loans – Book Originated and Attributes
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIA HOME LOANS – BOOK ORIGINATED AND ATTRIBUTES Home Loans portfolio, Sep 22 ANZ has limited exposure to 283 recently originated lending at high LVRs with no LMI, and much of this cohort has savings buffers in excess of 3 months of repayments: • $4
Slide 94: Australia Home Loans – Portfolio Performance
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIA HOME LOANS – PORTFOLIO PERFORMANCE Home Loans 90+ DPD (by State)1,2 Home Loans delinquencies1,2,3,4 % of Portfolio Segment Balances % of Portfolio Segment Balances 2.5 2.5 2.0 1.5 1.0 0.5 2.0 0.0 Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep 18 18 19
Slide 95: Australia Home Loans – Underwriting Practices & Policy Changes
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIA HOME LOANS – UNDERWRITING PRACTICES & POLICY CHANGES Multiple checks during origination process Underwriting Practices & Policy Changes1 Aug 2015 Interest rate floor applied to new and existing mortgage lending at 7.25% Pre – application2 Incom
Slide 96: Built Internal Capabilities to Support Customers in Difficulty
ANZ 2022 Full Year Debt Investor Presentation BUILT INTERNAL CAPABILITIES TO SUPPORT RETAIL AND BUSINESS CUSTOMERS IN DIFFICULTY We proactively identify potential financial stress using …and we find ways to contact our customers to help dynamic customer data… them Insufficient funds Courtesy in dire
Slide 97: Lenders Mortgage Insurance
ANZ 2022 Full Year Debt Investor Presentation LENDERS MORTGAGE INSURANCE September Full Year 2022 results LMI & Reinsurance structure Gross Written Premium ($m) $97.9m Australian Home Loan portfolio LMI and Reinsurance structure at 30 Sep 22 (% New Business FUM Oct 21 to Sep 22) Net Claims Paid ($m)
Slide 98: New Zealand Home Loans – Portfolio Overview
ANZ 2022 Full Year Debt Investor Presentation NEW ZEALAND HOME LOANS – PORTFOLIO OVERVIEW Portfolio Flow Portfolio FY20 FY21 FY22 FY21 FY22 FY20 FY21 FY22 Number of Home Loan Accounts 529k 535k 538k 82k 56k Average LVR at Origination 58% 57% 56% Total FUM NZD90b NZD99b NZD104b NZD29b NZD24b Average
Slide 99: New Zealand Loans – Home Lending & Arrears Trends
ANZ 2022 Full Year Debt Investor Presentation NEW ZEALAND LOANS – HOME LENDING & ARREARS TRENDS Home Loan LVR profile1 Housing flows Housing portfolio 2% 1% 1% 3% 13% 10% 11% 3% 6% 5% 42% 46% 56% 13% 10% 12% 87% 90% 89% 14% 58% 54% 19% 44% FY20 FY21 FY22 Sep 20 Sep 21 Sep 22 Proprietary Broker Fixed
Slide 100: Economics
2022 FULL YEAR RESULTS ECONOMICS INVESTOR DISCUSSION PACK
Slide 101: Australian Economy Forecast Table
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIAN ECONOMY FORECAST TABLE 2018 2019 2020 2021 2022F1 2023F1 Australia – annual % growth GDP 2.8 2.0 -2.1 4.9 4.1 2.3 Headline CPI (% y/y) 1.9 1.6 0.8 2.9 6.4 3.8 Employment (% y/y) 2.3 2.2 -1.0 2.2 4.5 1.6 Unemployment (% Q4 avg) 5.0 5.2 6.8 4.7
Slide 102: Australian Economy – Economic Growth
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIAN ECONOMY – ECONOMIC GROWTH GDP growth1 Nominal Australian retail sales2 and Consumer Confidence3 % change TBU Capital expenditure intentions4 Australian government budget balance1 Nominal % of nominal GDP 101 Sources: 1. RBA Chart Pack, Novembe
Slide 103: Australian Economy – Income and Savings
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIAN ECONOMY - INCOME AND SAVINGS Change in household income1 Wages growth2 Since December quarter 2019 Year-ended TBU Household income and consumption3 Household saving ratio4 Share of household disposable income TBU TBU 102 Sources: 1. RBA Statem
Slide 104: Australian Economy – Inflation
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIAN ECONOMY - INFLATION Consumer price inflation1 Quarterly CPI inflation2 Seasonally adjusted, with contributions TBU Distribution of wages growth*, 2 Global inflation comparisons3 As a share of firms reporting wage data in liaison % Change y/y T
Slide 105: Australian Labour Market
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIAN LABOUR MARKET Unemployment and underemployment1 Job vacancies and advertisements1 % of labour force TBU TBU Real labour income2 Employment and hours worked* , 1 Deflated using headline CPI, December 19 = 100 2008 average=100 TBU 104 Sources: 1
Slide 106: Commodities
ANZ 2022 Full Year Debt Investor Presentation COMMODITIES RBA index of commodity prices1 Resource exports1 SDR, 2020/21 average = 100, log scale s Log scale, quarterly TBU Bulk commodity prices1 Terms of trade*, 1 Free on board basis 2019/20 average = 100, log scale TBU TBU 105 Sources: 1. RBA Chart
Slide 107: Australian Housing Dynamics
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIAN HOUSING DYNAMICS Housing price forecasts by capital city1 House price growth2 5 Year Cumulative 6 Month Change Year on Year Change Fall from peak Oct-22 Change Total Houses Units Total Houses Units Total Houses Units Total Houses Units Sydney
Slide 108: Australian Housing Dynamics
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIAN HOUSING DYNAMICS Private residential building approvals1 New housing lending 2 Monthly % monthly housing finance, ex re-financing First Home Owners’ Boost NSW & Victoria reduce stamp duty Reduction in borrowing capacity3 Mortgage credit growth
Slide 109: Australian Housing Dynamics
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIAN HOUSING DYNAMICS Contribution to total credit growth1 Housing Loan Characteristics2 Six-month-ended annualised Share of total new lending TBU Inflation Household balance sheet2 Outstanding LVR Distribution2 Share of disposable income Share of
Slide 110: Australian Housing – Household Debt and Income
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIAN HOUSING - HOUSEHOLD DEBT AND INCOME Household debt and deposits1 Flows into housing loan and offset accounts2 % of annual household disposable income Share of disposable income; quarterly TBU Distribution of household debt3 Repayment increases
Slide 111: Australian Housing – Rental Markets
ANZ 2022 Full Year Debt Investor Presentation AUSTRALIAN HOUSING – RENTAL MARKETS Rental vacancy rates1 Rent inflation1 Seasonally adjusted, quarterly Year-ended, with city weights indicated Household dynamics2 Net overseas arrivals3 110 Sources: 1. RBA Statement of Monetary Policy, August 2022 2. R
Slide 112: Key Contacts
ANZ 2022 Full Year Debt Investor Presentation KEY CONTACTS Key Contacts Adrian Went Scott Gifford John Needham Group Treasurer Head of Debt Investor Head of Capital and Secured Funding Relations +61 3 8654 5532 +61 3 8655 5683 +61 2 8037 0670 +61 412 027 151 +61 434 076 876 +61 411 149 158 Adrian.We
Australia and New Zealand Banking Group — Debt Investor Presentation (October 2022) on 6ix