Anz Group Holdings Limited · ASX:ANZ
Anz — FY2022 Earnings Presentation
135 slides from Anz's earnings presentation, Oct 27, 2022
Slide 1: 2022 Full Year Results
2022 FULL YEAR RESULTS FULL YEAR ENDED 30 SEPTEMBER 2022 RESULTS PRESENTATION & INVESTOR DISCUSSION PACK 27 OCTOBER 2022 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 00
Slide 2: Disclaimer & Important Notice
ANZ 2022 Full Year Results DISCLAIMER & IMPORTANT NOTICE The material in this presentation is general background information about ANZ’s activities current as 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 and sh
Slide 3: Contents
ANZ 2022 Full Year Results Results Presentations 3 Chief Executive Officer (CEO) 4 Chief Financial Officer (CFO) 20 Investor Discussion Pack 39 CONTENTS Corporate Overview 40 Group Performance 47 Environment, Social & Governance (ESG) 60 Divisional Performance 74 Treasury 94 Risk Management 107 Hous
Slide 4: Results Presentation
2022 FULL YEAR RESULTS RESULTS PRESENTATION
Slide 5: Shayne Elliott, Chief Executive Officer
2022 FULL YEAR RESULTS SHAYNE ELLIOTT CHIEF EXECUTIVE OFFICER
Slide 6: FY22 Group Financial Results
ANZ 2022 Full Year Results 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, cents 146 +4 cents A
Slide 7: FY22 Priorities
ANZ 2022 Full Year Results FY22 PRIORITIES RESTORE LAUNCH FOCUS COMPLETE CONTINUE Momentum ANZ Plus; drive Disciplined growth in BS11, recycle capital Group simplification in Australia customer growth and Institutional with & improve returns in & productivity, as home loans increased customer accele
Slide 8: Growth Has Been Restored in Australia Home Loans
ANZ 2022 Full Year Results GROWTH HAS BEEN RESTORED IN AUSTRALIA HOME LOANS Home Loan performance Australia Retail performance RESTORE Processing capacity Home Loan balance, $b Risk adjusted margins, % Momentum 6.9% in Australia +35% annualised home loans Sep 22 vs. Sep 21 6.16 6.18 6.15 283.1 280.9
Slide 9: ANZ Plus Already Delivering
ANZ 2022 Full Year Results 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 growth and 750 set up sa
Slide 10: ANZ Plus - Driving Customer Growth and Engagement
ANZ 2022 Full Year Results ANZ PLUS - MORE EFFICIENTLY DRIVE HIGHER CUSTOMER GROWTH, GREATER ENGAGEMENT AND BETTER FINANCIAL HEALTH How we measure success LAUNCH More Greater propensity to Brand consideration # New customers attractive join % Main Bank customers ANZ Plus; drive Relative app store ra
Slide 11: Scaling Commercial Business with Attractive Returns
ANZ 2022 Full Year Results SCALING COMMERCIAL BUSINESS WITH ATTRACTIVE RETURNS Financial performance Stand alone division, refreshed ambition FOCUS Revenue1, $b Risk adjusted margins2 % Banking SME & Specialist businesses3 Accelerated Targeted segment growth momentum ~25% 4.4 7.05 of total Targeted,
Slide 12: Institutional Growth Through Diversification
ANZ 2022 Full Year Results INSTITUTIONAL GROWTH THROUGH DIVERSIFICATION Financial performance Points of difference FOCUS Customer franchise revenue1, $b Risk adjusted margins2, % Sustainable finance transactions3, # Disciplined +13% +57% 2.35 growth in 4.65 127 Institutional 0.03 4.11 81 0.03 1.17 3
Slide 13: Strong Results in NZ
ANZ 2022 Full Year Results STRONG RESULTS IN NZ NZ Division Financial performance Market position COMPLETE Revenue, NZDb Risk adjusted margins, NZD % Market share and ranking 1 BS11, recycle #1 #2 #1 #1 capital & improve 2.07 5.77 30.5% returns in NZ 1.81 1.85 1.75 5.12 25.3% 5.07 4.93 22.1% 19.7% 1
Slide 14: Further Repositioning and Simplification of the Group
ANZ 2022 Full Year Results FURTHER REPOSITIONING AND SIMPLIFICATION OF THE GROUP CONTINUE Reduced ANZ’s own corporate footprint, sqm Formal separation Completed Wealth ~20% footprint reduction in Australia Group of Wealth remediation Total reduction ~-51,000 simplification & productivity, as 55 Coll
Slide 15: Environmental Uncertainty – State of the Australian Economy
ANZ 2022 Full Year Results ENVIRONMENTAL UNCERTAINTY – STATE OF THE AUSTRALIAN ECONOMY Bad, but getting better Good, and getting better Inflation Capacity utilisation Wage Price Index Terms of trade Retail Employment Job ads Consumer Inflation Business confidence expectation conditions House prices
Slide 16: Well Positioned to Support Our Customers
ANZ 2022 Full Year Results WELL POSITIONED TO SUPPORT OUR CUSTOMERS Invested to position ANZ for the future way of operating, Structurally well positioned incl. data insights to proactively support customers Expect continued volatile environment • Higher levels of Continuously empowered our people t
Slide 17: Suncorp Bank Acquisition Provides a Platform for Growth
ANZ 2022 Full Year Results 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 Target Mid 2023 App
Slide 18: Non-Operating Holding Company (NOHC)
ANZ 2022 Full Year Results 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 APRA, the Federal
Slide 19: Key Messages
ANZ 2022 Full Year Results KEY MESSAGES We have delivered on Strongly positioned for Continuing to execute our five priorities the cycle – navigating our strategy; with clear across the Group in risks and capturing new priorities for the year FY22 opportunities ahead 18
Slide 20: We Will Continue to Execute on Our Priorities in FY23
ANZ 2022 Full Year Results WE WILL CONTINUE TO EXECUTE ON OUR PRIORITIES IN FY23 PREPARE LAUNCH INVEST CONTINUE PROTECT Suncorp Bank NOHC Commercial Focus on risk Our balance sheet approval and adjusted returns ANZ Plus digital Sustainability Culture & integration home loans Group productivity engag
Slide 21: Farhan Faruqui, Chief Financial Officer
2022 FULL YEAR RESULTS FARHAN FARUQUI CHIEF FINANCIAL OFFICER
Slide 22: Delivering on Our Priorities
ANZ 2022 Full Year Results DELIVERING ON OUR PRIORITIES RESTORE Strong financial outcomes with all businesses performing Delivered on our FY22 Margin expansion across all divisions priorities across the Group Restored Australia Home Loan momentum LAUNCH Costs well managed Strong portfolio credit qua
Slide 23: 2022 Financial Performance
ANZ 2022 Full Year Results 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 Second half Cash Pr
Slide 24: Cash Profit Performance
ANZ 2022 Full Year Results 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 Provisions Tax & NCI 2H22
Slide 25: Revenue Growth
ANZ 2022 Full Year Results 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) Net Loans & advanc
Slide 26: Net Interest Margin Expansion
ANZ 2022 Full Year Results 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 Asset and Liquidity C
Slide 27: Customer Deposit Portfolio Contribution to NIM Expansion
ANZ 2022 Full Year Results 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 +7bps = +17bps Busi
Slide 28: NIM Outlook Considerations
ANZ 2022 Full Year Results NIM OUTLOOK CONSIDERATIONS • Higher capital & replicated deposit earnings • Rising rate environment Tailwinds • Increasing mix of variable rate home loan “We expect the flows environment will continue to be supportive for margins in the first half, although any change from
Slide 29: Other Operating Income Growth
ANZ 2022 Full Year Results OTHER OPERATING INCOME GROWTH CASH CONTINUING EXCLUDING LARGE / NOTABLE ITEMS & MARKETS INCOME Other operating income, $m Net fee & commission income1, $m 1,360 1,312 1,305 Australia Retail2 Australia Commercial 87 75 136 1,180 333 166 72 168 289 268 188 226 66 165 148 159
Slide 30: Markets Income Diversification, Impact from Global Events
ANZ 2022 Full Year Results MARKETS INCOME DIVERSIFICATION, IMPACT FROM GLOBAL EVENTS CASH CONTINUING EXCLUDING LARGE / NOTABLE ITEMS Customer franchise income, $m Total Markets income, $m 1,012 21 930 7 812 589 590 402 741 561 445 223 206 32 53 53 139 478 30 589 590 561 478 60 43 111 32 181 -1 -26 1
Slide 31: Run the Bank Expense Uplift Offset by Productivity Actions
ANZ 2022 Full Year Results RUN THE BANK EXPENSE UPLIFT OFFSET BY PRODUCTIVITY ACTIONS CASH CONTINUING EXCLUDING LARGE / NOTABLE ITEMS (FX ADJUSTED) Half on half 1$m Full Year run the bank expense uplift and productivity outcomes1, $m 289 Expense uplift Run the bank expenses broadly flat, in line wit
Slide 32: Investments Shifting in Line with Priorities
ANZ 2022 Full Year Results 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 22% ~30% 2.0 27% 24%
Slide 33: Continued Disciplined Management of Expenses
ANZ 2022 Full Year Results 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 vendor cost inflation
Slide 34: Low Provision Charge, CP Balance Remains Above 2019 Levels
ANZ 2022 Full Year Results LOW PROVISION CHARGE, CP BALANCE REMAINS ABOVE 2019 LEVELS Provision charge, $m Collective Provision (CP) balance, $m Individual provision charge +65% 628 3,853 626 3,376 727 398 104 885 395 -106 807 187 2,340 592 500 69 87 -930 375 -8 266 3,272 247 3,126 168 158 175 103 9
Slide 35: Changes to CP Balance Reflect the Uncertain Environment
ANZ 2022 Full Year Results 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 Predominantly 1,750 econo
Slide 36: De-risking the Portfolio
ANZ 2022 Full Year Results DE-RISKING THE PORTFOLIO Group long run loss rate (Internal Expected Loss), % Credit risk weight intensity1, % Corporate & Specialised 2 0.35 65 0.32 0.27 0.26 0.26 60 0.22 0.19 55 50 45 Sep 16 Sep 17 Sep 18 Sep 19 Sep 20 Sep 21 Sep 22 Sep 16 Sep 17 Sep 18 Sep 19 Sep 20 Se
Slide 37: Australia Home Loans Portfolio Resilience
ANZ 2022 Full Year Results AUSTRALIA HOME LOANS PORTFOLIO RESILIENCE Home Loans repayment profile1,2, % of accounts ahead of repayments Fixed rate home loan expiry profile, $b 40 27 33% 30 21 21 18 14 20 11 11 10 0 Overdue On Time <1 month 1-3 3-6 6-12 1-2 years >2 years 1H22 2H22 1H23 2H23 1H24 2H2
Slide 38: Capital, Funding and Liquidity
ANZ 2022 Full Year Results CAPITAL, FUNDING AND LIQUIDITY APRA Level 2 CET1 Ratio, % 0.77 12.29 11.53 0.50 $3.5b equity raise • Successful raise in challenging market conditions 11.08 ~11.1 • Fair and equitable raise for all shareholders via PAITREO1 -0.03 -0.03 ~ -1.2 • Balance of the Suncorp Bank
Slide 39: Summary
ANZ 2022 Full Year Results SUMMARY • Home loans momentum restored – maintain focus We have delivered on our five priorities across the on margins going forward Group in FY22 • ANZ Plus launched – focus on value creation • Expenses well managed – continue to build on proven productivity DNA to delive
Slide 40: Investor Discussion Pack
2022 FULL YEAR RESULTS INVESTOR DISCUSSION PACK
Slide 41: Corporate Overview
2022 FULL YEAR RESULTS CORPORATE OVERVIEW INVESTOR DISCUSSION PACK
Slide 42: Our Purpose & Strategy
ANZ 2022 Full Year Results OUR PURPOSE & STRATEGY Our purpose is to shape a world where people and communities thrive. It explains ‘why’ we exist and drives everything we do at ANZ, including the choices we make each day about those we serve and how we operate. We bring our purpose to life through o
Slide 43: The Bank We're Building
ANZ 2022 Full Year Results THE BANK WE’RE BUILDING Giving our customers access to ‘We are the Bank for those in Australia & New Zealand who want to buy and own a home or start, run, and grow a small business and for those larger businesses trading and investing in Asia Pacific’ Propositions Purpose
Slide 44: The Bank We're Building
ANZ 2022 Full Year Results THE BANK WE’RE BUILDING Eight goals aligned with our business model 1. We support a higher share of customers in our target segments Value Creation Model 2. Our customers have greater financial wellbeing over their lifetime, and implement more sustainable business practice
Slide 45: ANZ Plus – Tailored to Customers' Needs
ANZ 2022 Full Year Results ANZ PLUS – TAILORED TO CUSTOMERS’ NEEDS Delivering better propositions… …with targeted features customers love Transact & Save features already driving ANZ Plus customer engagement: customer propositions Know where my money is going: Expense Insights & Prediction | see reg
Slide 46: ANZ Plus – Delivering Customer Propositions at a Faster Rate
ANZ 2022 Full Year Results ANZ PLUS – DELIVERING COMPELLING CUSTOMER PROPOSITIONS AT A MUCH FASTER RATE Traditional banking New digital backbone and capabilities To deliver compelling technology customer propositions Transact & Save 2022 proposition in market, Complex systems Distribution, e.g. id
Slide 47: Building | Investing | Partnering
ANZ 2022 Full Year Results BUILDING | INVESTING | PARTNERING EXTERNAL INNOVATION AND VENTURE CAPITAL PARTNER Home owners Businesses owners Innovating financial services Leading online home AI-based digital Global financial infrastructure loan origination business assistant to providing FX & payment
Slide 48: Group Performance
2022 FULL YEAR RESULTS GROUP PERFORMANCE INVESTOR DISCUSSION PACK
Slide 49: Shareholder Returns
ANZ 2022 Full Year Results SHAREHOLDER RETURNS Dividend Per Share (DPS), cents Share price, $ 28.2 28.5 28.2 160 160 22.8 17.2 146 142 2018 2019 2020 2021 2022 Share price close (last trading day in September of the financial year) 80 80 74 72 TOTAL SHAREHOLDER RETURNS1 0.6% 9.2% -36.9% 70.7% -14.0%
Slide 50: Balance Sheet Composition
ANZ 2022 Full Year Results 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% 15% 18% 1% 16% 6%
Slide 51: Net Loans and Advances
ANZ 2022 Full Year Results 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 94 17 18 21 Sep 21 M
Slide 52: Customer Deposits
ANZ 2022 Full Year Results 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 22 37 21 28 63 66 6
Slide 53: Total Operating Income
ANZ 2022 Full Year Results 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 1.7 1.8 1.5 1.6 1.4
Slide 54: Reported Group Net Interest Margin Trend
ANZ 2022 Full Year Results REPORTED GROUP NET INTEREST MARGIN TREND1 bps 240 220 200 180 160 140 120 100 80 60 40 20 0 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21 1H22 2H22 Flat or declining AUD Official Cash Rate throughout this time period Ba
Slide 55: Illustrative Capital and Replicated Deposit Portfolio Benefits
ANZ 2022 Full Year Results 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% HIGHER INTEREST EARNI
Slide 56: Interest Rate Sensitivity
ANZ 2022 Full Year Results 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 3.60 3.60 NZ OCR 4.2
Slide 57: Expense Management
ANZ 2022 Full Year Results 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 0.7 0.1 0.0 0.8 0.8
Slide 58: Risk Adjusted Performance
ANZ 2022 Full Year Results RISK ADJUSTED PERFORMANCE Group1 Australia Retail Australia Commercial Institutional1 New Zealand Net interest income / average Credit Risk Weighted Assets (CRWA), % 7.05 6.15 6.16 5.98 6.18 5.78 5.51 5.65 4.93 5.07 5.12 4.64 4.92 4.18 4.30 4.22 2.35 1.97 2.03 2.02 1H21 2H
Slide 59: Risk Adjusted Return
ANZ 2022 Full Year Results RISK ADJUSTED RETURN Group Australia Retail Australia Commercial Institutional New Zealand Profit before provisions / average total Risk Weighted Assets (RWA), % 3.71 3.44 3.51 3.06 2.81 3.04 2.93 3.01 2.69 2.67 2.44 2.16 2.15 2.29 1.87 1.95 1.41 1.49 1.44 1.29 1H21 2H21 1
Slide 60: Large / Notable Items
ANZ 2022 Full Year Results 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 Litigation (269) (133) (
Slide 61: Environment, Social & Governance (ESG)
2022 FULL YEAR RESULTS ENVIRONMENT, SOCIAL & GOVERNANCE (ESG) INVESTOR DISCUSSION PACK
Slide 62: Board & Executive Committees
ANZ 2022 Full Year Results BOARD & EXECUTIVE COMMITTEES Board Ethics, Environment, Social and Governance Ethics and Responsible Business Management Committee Committee (EESG)1 (ERBC)1 34% 24% 17% Governance 16% Governance Who We Bank Who We Bank Purpose: Purpose: 7% oversee measures to seeks to ensu
Slide 63: Our FY22 ESG Performance Against Targets
ANZ 2022 Full Year Results 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 supported nearly 1.5 m
Slide 64: Our FY22 ESG Performance Against Targets
ANZ 2022 Full Year Results 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 2019, we have funded a
Slide 65: Our FY22 ESG Performance Against Targets
ANZ 2022 Full Year Results 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 our risk management
Slide 66: Our FY22 ESG Performance Against Targets
ANZ 2022 Full Year Results 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 October 2018, we hav
Slide 67: Our FY22 ESG Performance Against Targets
ANZ 2022 Full Year Results 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 ANZ’s new Customer
Slide 68: Our ESG Related Disclosures
ANZ 2022 Full Year Results 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 https://www.anz.com.au/a
Slide 69: Our Approach to Climate
ANZ 2022 Full Year Results 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 opportunities Our envi
Slide 70: Aligning Our Lending to the Paris Agreement Goals
ANZ 2022 Full Year Results 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 portfolio emissions
Slide 71: Priority Sectors: Progress Update – Large Commercial Buildings
ANZ 2022 Full Year Results 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 80 ANZ vs. target pa
Slide 72: Progress Towards Portfolio Emissions Target Pathways – Power Generation
ANZ 2022 Full Year Results PROGRESS TOWARDS OUR PORTFOLIO EMISSIONS TARGET PATHWAYS – POWER GENERATION Financial challenges of a changing energy sector • Wholesale electricity prices increased to record highs in parts of Australia earlier this year. Electricity companies routinely hedge the price of
Slide 73: Priority Sectors: Progress Update – Power Generation
ANZ 2022 Full Year Results 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 are restating our 202
Slide 74: Our Resources Portfolio
ANZ 2022 Full Year Results OUR RESOURCES PORTFOLIO Resources Portfolio, EAD1 $b Thermal Coal Mining, EAD1 $b 20.0 2.0 1.7 1.5 0.6 17.3 17.0 1.3 16.2 0.8 0.5 0.7 0.8 1.0 1.2 15.3 1.0 0.9 14.5 2.9 0.4 14.0 0.7 13.8 1.1 0.7 1.5 1.2 0.2 0.5 0.5 0.8 0.9 13.0 0.4 0.3 0.5 1.0 1.7 1.0 1.2 0.4 0.7 0.6 1.0 0.
Slide 75: Divisional Performance
2022 FULL YEAR RESULTS DIVISIONAL PERFORMANCE INVESTOR DISCUSSION PACK
Slide 76: Australia Retail – Financial Performance
ANZ 2022 Full Year Results AUSTRALIA RETAIL – FINANCIAL PERFORMANCE Balance Sheet Income Expenses / FTE Credit Quality / RWAs Profit and Returns NLAs1 ($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 1,512 288 2,998 1,410 3 3
Slide 77: Australia Retail – Contribution and Profit Drivers
ANZ 2022 Full Year Results AUSTRALIA RETAIL – CONTRIBUTION AND PROFIT DRIVERS Contribution (Sep 22), $b Cash Profit drivers (Sep 22), $m Net Interest Income +$112m 289 149 75 14 6 0 112 1,198 1,125 0 43 -97 -31 6.2 283 106 3.2 3.0 Net Loans & Advances1 Customer Deposits2 Total Income 1H22 Cash Volum
Slide 78: Australia Retail – Loans & Deposits
ANZ 2022 Full Year Results AUSTRALIA RETAIL – LOANS & DEPOSITS Lending composition1, $b Deposit composition2, $b 289 147 149 288 141 285 135 284 6 26 25 7 21 23 6 6 36 39 41 43 281 278 278 283 20 16 14 16 58 63 66 65 Mar 21 Sep 21 Mar 22 Sep 22 Mar 21 Sep 21 Mar 22 Sep 22 Home Loans Cards, Personal
Slide 79: Australia Commercial – Financial Performance
ANZ 2022 Full Year Results AUSTRALIA COMMERCIAL – FINANCIAL PERFORMANCE Balance Sheet Income Expenses / FTE Credit Quality / RWAs Profit and Returns NLAs1 ($b) NII / OOI Contribution ($m) Expenses ($m) Total Provision Charge ($m) Cash Profit ($m) 56 59 55 56 1,574 653 672 635 649 640 1,285 1,346 1,3
Slide 80: Australia Commercial – Contribution and Profit Drivers
ANZ 2022 Full Year Results AUSTRALIA COMMERCIAL – CONTRIBUTION AND PROFIT DRIVERS Contribution (Sep 22), $b Cash Profit drivers (Sep 22), $m Net Interest Income +$254m 59 113 13 254 1 0 20 35 -32 635 553 0 -111 -42 2.9 39 78 1.6 1.3 Net Loans & Advances1 Customer Deposits2 Total Income 1H22 Cash Vol
Slide 81: Australia Commercial – Loans & Deposits
ANZ 2022 Full Year Results AUSTRALIA COMMERCIAL – LOANS & DEPOSITS Lending composition1, $b Deposit composition2, $b 116 113 107 111 56 56 59 30 30 55 25 28 1 1 1 1 17 18 20 21 19 21 16 25 38 38 38 39 57 62 67 62 Mar 21 Sep 21 Mar 22 Sep 22 Mar 21 Sep 21 Mar 22 Sep 22 SME Banking Specialist Business
Slide 82: Australia Commercial – Book Composition & Risk Weight Intensity
ANZ 2022 Full Year Results 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/TAS QLD SA/NT 79% 80
Slide 83: New Zealand Division – Financial Performance
ANZ 2022 Full Year Results 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 61 920 139 140 711 131 13
Slide 84: New Zealand Division – Contribution & Profit Drivers
ANZ 2022 Full Year Results NEW ZEALAND DIVISION – CONTRIBUTION & PROFIT DRIVERS Contribution (Sep 22), NZDb Cash Profit drivers (Sep 22), NZDm Net Interest Income 140 +$235m 196 37 108 -22 -17 23 920 39 -83 3.92 839 -32 103 1.26 85 2.63 0.03 Net Loans & Advances Customer Deposits 1H22 Cash Volume Ma
Slide 85: New Zealand Division – Balance Sheet
ANZ 2022 Full Year Results NEW ZEALAND DIVISION – BALANCE SHEET Housing1 Business2 Agri ANZ Performance (NZDb) ANZ Performance (NZDb) ANZ Performance (NZDb) 150 30 30 95.4 98.8 103.1 104.2 19.0 19.4 100 20 17.6 18.1 20 16.5 16.1 15.7 15.4 50 10 10 0 0 0 Mar 21 Sep 21 Mar 22 Sep 22 Mar 21 Sep 21 Mar
Slide 86: Australia & New Zealand 90+ Days Past Due
ANZ 2022 Full Year Results AUSTRALIA & NEW ZEALAND 90+ DAYS PAST DUE (DPD) Customer Portfolio1,2,3 % of Total Portfolio Balances 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep 17 17 18 18 19 19 20 20 21 21 22 22 Australia Home Loans Australia Consumer Car
Slide 87: Digital Platforms – Scalable Operating Leverage, Capital Light
ANZ 2022 Full Year Results DIGITAL PLATFORMS – SCALABLE OPERATING LEVERAGE, CAPITAL LIGHT PAYMENTS1 DIRECT INTEGRATION PAYMENTS1,2 NPP AGENCY PAYMENTS1,2 PLATFORM CASH MGMT ACCOUNTS1 75% 52% 1,731 27% 40% 112% 24% 198 25% 672 60% 280 988 141% 5% 367% 130 200 160 120% 100 105 467 530 100 220 100 100
Slide 88: Institutional – Financial Performance
ANZ 2022 Full Year Results INSTITUTIONAL – FINANCIAL PERFORMANCE Balance Sheet Income Expenses / FTE Credit Quality / RWAs Profit and Returns NLAs1 ($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 1,210 1,245 1,033
Slide 89: Institutional – Income & Asset Composition
ANZ 2022 Full Year Results INSTITUTIONAL – INCOME & ASSET COMPOSITION Income composition1,2, $m Net loans and advances, $b 199 197 175 3,057 158 158 13 147 129 135 2,790 123 29 2,637 111 114 105 829 2,478 17 2,432 2,387 22 18 19 21 14 14 14 14 17 786 49 32 28 27 34 41 209 1,015 Mar 20 Sep 20 Mar 21
Slide 90: Institutional Margins
ANZ 2022 Full Year Results INSTITUTIONAL MARGINS1 Risk Adjusted NIM drivers, bps Risk Adjusted NIM – by geography, bps +33bps 33 0 235 Institutional AUS / PNG 202 0 247 253 225 222 230 222 235 207 190 197 203 202 1H22 Funding Mix & FX Deposit Margins Asset Margins 2H22 1H20 2H20 1H21 2H21 1H22 2H22
Slide 91: Institutional – Credit Risk Weighted Assets (CRWA)
ANZ 2022 Full Year Results INSTITUTIONAL – CREDIT RISK WEIGHTED ASSETS (CRWA) CRWA average1, $b CRWA movement HoH, EOP $b 167 4 163 159 158 4 148 149 2 4 142 4 6 4 4 5 -2 153 96 104 95 97 104 90 19 17 15 18 18 19 41 42 35 30 29 31 1H20 2H20 1H21 2H21 1H22 2H22 Mar 22 FX Volume Risk Migration Derivat
Slide 92: Institutional – Markets Income Composition
ANZ 2022 Full Year Results INSTITUTIONAL – MARKETS INCOME COMPOSITION Markets Income composition, $m Markets avg. Value at Risk (99% VaR), $m Both Traded and Non-Traded VaR 1,508 increased and decreased as COVID- 100 related volatility rolled into and out of 40 88 131 the VaR modelling window. 82 80
Slide 93: Consistency of Markets Income
ANZ 2022 Full Year Results CONSISTENCY OF MARKETS INCOME MARKETS INCOME HAS HISTORICALLY FOLLOWED CLOSE TO A NORMAL DISTRIBUTION, WITH A POSITIVE SKEW Markets historical monthly income, $m Characteristics of monthly income distribution • Over the last 8 years, monthly Markets revenue has followed cl
Slide 94: Institutional – Risk Management
ANZ 2022 Full Year Results INSTITUTIONAL – RISK MANAGEMENT CRWA intensity, % Long run loss rate (internal expected loss)¹, % 61.8% 0.36% 50.8% 48.5% 49.1% 46.6% 39.7% 0.25% 0.25% 30.7% 30.7% 31.5% 30.4% 0.21% 0.21% 2H16 1H21 2H21 1H22 2H22 2H16 1H21 2H21 1H22 2H22 CRWA/EAD (ex Markets) CRWA/EAD Cont
Slide 95: Treasury
2022 FULL YEAR RESULTS TREASURY INVESTOR DISCUSSION PACK
Slide 96: Regulatory Capital – 4Q22 Update
ANZ 2022 Full Year Results 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 acquisition. This is above AP
Slide 97: Regulatory Capital – 2H22 Update
ANZ 2022 Full Year Results 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 Deductions Capital Rai
Slide 98: Regulatory Capital
ANZ 2022 Full Year Results 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 -1.3 -0.1 Addition
Slide 99: Internationally Comparable Regulatory Capital Position
ANZ 2022 Full Year Results 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 Int. Comparable APRA
Slide 100: CET1 and Leverage in a Global Context
ANZ 2022 Full Year Results 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 ABN Amro Credit Suis
Slide 101: Balance Sheet Structure
ANZ 2022 Full Year Results 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 Other Assets 25% 3
Slide 102: Liquidity Coverage Ratio (LCR) Summary
ANZ 2022 Full Year Results 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 CLF3 Liquid Retail/
Slide 103: Term Wholesale Funding Portfolio
ANZ 2022 Full Year Results 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 requirements depend
Slide 104: ANZ's Tier 2 Capital Profile
ANZ 2022 Full Year Results 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 finalised Tier 2 capital
Slide 105: Capital & Replicating Deposits Portfolio
ANZ 2022 Full Year Results 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 1H21 0.92% 1.09% 1
Slide 106: Basel III CET1 Reforms and TLAC Finalisation
ANZ 2022 Full Year Results 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 calculation and presenta
Slide 107: Capital & Liquidity Framework
ANZ 2022 Full Year Results 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 Operational Risk 2023 Fun
Slide 108: Risk Management
2022 FULL YEAR RESULTS RISK MANAGEMENT INVESTOR DISCUSSION PACK
Slide 109: Long Run Provisions & Loss Rates
ANZ 2022 Full Year Results 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 1H22 2H22 Consumer
Slide 110: Individual Provision (IP) Charge
ANZ 2022 Full Year Results 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 5 185 156 155 3 43 6 -8 -245
Slide 111: Collective Provision (CP) Balance & Charge
ANZ 2022 Full Year Results 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 3,853 746 3,757 Volume/Mix
Slide 112: Collective Provision (CP) Balance
ANZ 2022 Full Year Results 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 Australia Commercial 0.90 0
Slide 113: Portfolio Composition and Coverage Ratios
ANZ 2022 Full Year Results 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% 51% 3% 3% 45% 34%
Slide 114: Expected Credit Loss – Economic Scenarios: Modelled Outcomes
ANZ 2022 Full Year Results 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 CY2021A CY2022F CY2023F
Slide 115: Impaired Assets
ANZ 2022 Full Year Results 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 19 20 21 22 Control
Slide 116: Risk Weighted Assets (RWA)
ANZ 2022 Full Year Results 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 47 46 46 46 43 42 39
Slide 117: Risk Weighted Assets & Exposure at Default Composition
ANZ 2022 Full Year Results 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 2.2 0.9 0.0 1.1 43 4
Slide 118: Total Portfolio Composition
ANZ 2022 Full Year Results 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 Finance, Investment &
Slide 119: Commercial Property – Segments of Interest
ANZ 2022 Full Year Results 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% 10.5 9.8 14% 15% 1
Slide 120: ANZ Institutional Portfolio
ANZ 2022 Full Year Results 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 Manufacturing 450 (Sep 22) 8%
Slide 121: ANZ Asian Institutional Portfolio
ANZ 2022 Full Year Results 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 & Business Services Singap
Slide 122: Housing Portfolio
2022 FULL YEAR RESULTS HOUSING PORTFOLIO INVESTOR DISCUSSION PACK
Slide 123: Australia Home Loans – Portfolio Overview
ANZ 2022 Full Year Results 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 69% 71% 68% Total
Slide 124: Australia Home Loans – Portfolio Composition
ANZ 2022 Full Year Results 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 19 16 Sep 21 New S
Slide 125: Australia Home Loans – Portfolio Composition & Flow
ANZ 2022 Full Year Results 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 FY22 FY20 FY21 FY22
Slide 126: Australia Home Loans – Portfolio Resilience
ANZ 2022 Full Year Results 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 benefits 30 35% 36
Slide 127: Australia Home Loans – Portfolio Resilience
ANZ 2022 Full Year Results AUSTRALIA HOME LOANS – PORTFOLIO RESILIENCE Fixed rate Home Loan expiry profile, $b ANZ flow borrowing capacity1, FY22 27 7% 3% 21 21 18 Surplus Capacity Minimal Capacity 14 At Capacity 11 11 90% 30+ DPD at Sep 22 by fixed rate expiry month 1H22 2H22 1H23 2H23 1H24 2H24 >2
Slide 128: Australia Home Loans – Book Originated and Attributes
ANZ 2022 Full Year Results AUSTRALIA HOME LOANS – BOOK ORIGINATED AND ATTRIBUTES Home Loans portfolio, Sep 22 Time on Book ($b) 283 ANZ has limited exposure to recently originated lending at high LVRs with no LMI, and much of this > 24 months 57% cohort has savings buffers in excess of 3 months of r
Slide 129: Australia Home Loans – Portfolio Performance
ANZ 2022 Full Year Results 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 19 20 20 21 21 22
Slide 130: Australia Home Loans – Underwriting Practices & Policy Changes
ANZ 2022 Full Year Results 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 Income & Expenses Introd
Slide 131: Built Internal Capabilities to Support Customers in Difficulty
ANZ 2022 Full Year Results 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 direct debit reminders
Slide 132: Lenders Mortgage Insurance
ANZ 2022 Full Year Results 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) $5.6m Loss Rate* (
Slide 133: New Zealand Home Loans – Portfolio Overview
ANZ 2022 Full Year Results 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 Dynamic LVR 40% 35%
Slide 134: New Zealand Loans – Home Lending & Arrears Trends
ANZ 2022 Full Year Results 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 Variable 80% Housi
Slide 135: Further Information
ANZ 2022 Full Year Results FURTHER INFORMATION Note on reconciliation between the Consolidated Financial Report Dividend Announcement and Appendix 4E and the Results Presentation & Investor Discussion Pack: During the September 2022 half, the Group revised its treatment of ongoing trail commission p