Anz Group Holdings Limited · ASX:ANZ
Anz — FY2019 Earnings Presentation
123 slides from Anz's earnings presentation, November 2019
Slide 1: 2019 Full Year Results
2019 FULL YEAR RESULTS — FULL YEAR ENDED 30 SEPTEMBER 2019 R E S U LT S P R E S E N TAT I O N & I N V E S T O R D I S C U S S I O N PA C K
Slide 2: Contents
CONTENTS 2019 FULL YEAR RESULTS CEO and CFO Results Presentations 2 CEO Presentation 2 CFO Presentation 16 Group & Divisional Financial Performance 35 Group including impact of large / notable items 36 Australia Retail & Commercial 48 Institutional 53 New Zealand Division 60 Wealth Australia 65 Trea
Slide 3: CEO Shayne Elliott
2019 FULL YEAR RESULTS — S H AY N E E L L I O T T CHIEF EXECUTIVE OFFICER 2
Slide 4: Financial Snapshot
FINANCIAL SNAPSHOT FY19 FY19 v FY18 Statutory Profit ($m) 5,953 -7% Cash Profit (continuing operations)1 ($m) 6,470 0% Return on Equity 10.9% -10bps Earnings Per Share (cents) 228 +2% Dividend Per Share (cents) 160 flat Franking (FY19 avg) 85% -15% CET1 Ratio (APRA) 11.4% stable Total Capital (CET1)
Slide 5: Balance Sheet Strength
BALANCE SHEET STRENGTH CAPITAL & CREDIT QUALITY CET1 RATIO (LEVEL 2) NET ORGANIC CAPITAL NTA PER SHARE CREDIT QUALITY GENERATION % bps $ IEL2 bps 19.59 11.4 11.5 229 18.47 35 17.66 10.6 17.13 32 9.6 179 182 27 165 26 158 Sep- Sep- Sep- Sep-19 FY16 FY17 FY18 FY19 Sep- Sep- Sep- Sep- Sep- Sep- Sep- Se
Slide 6: Our Purpose & Strategy
OUR PURPOSE & STRATEGY Our Purpose is to shape a world where people and communities thrive Our strategy is to generate decent returns by improving the financial well- being of our customers, having the right people who listen, learn and adapt; putting the best tools and insights into their hands, an
Slide 7: 6 Point Plan
6 POINT PLAN FOCUSING RESOURCES TO DELIVER FOR CUSTOMERS, SHAREHOLDERS & THE COMMUNITY 1 Running the business well 2 Maintaining discipline within Institutional 3 Resolving our challenges in NZ 4 Investing to prepare Australia for growth 5 Driving further simplification 6 Building the team’s resilie
Slide 8: Run the Business Well
RUN THE BUSINESS WELL AUSTRALIA RETAIL AND COMMERCIAL Changed our management structure & team LAUNCHED A MAJOR HOUSING MARKETING CAMPAIGN Continuing to invest in process redesign Refining credit policies within a prudent risk appetite Delegating more decisions to front line Monitoring key
Slide 9: Run the Business Well: Customer Remediation
RUN THE BUSINESS WELL CUSTOMER REMEDIATION CUMULATIVE CUSTOMER REMEDIATION CHARGE Pre tax $m 1,579 928 753 220 153 51 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Continuing operations Discontinued (Wealth businesses) >1,000 people progressing remediation activities 8
Slide 10: Run the Business Well: Improved Risk Profile
RUN THE BUSINESS WELL IMPROVED RISK PROFILE GROUP INTERNAL EXPECTED LOSS1 DIVISIONAL INTERNAL EXPECTED LOSS1 bps bps 70 47 44 60 37 36 50 35 35 33 32 27 40 26 30 20 10 0 Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- 10 11 12 13 14 15 16 17 18 19
Slide 11: Maintain Discipline Within Institutional
RUN THE BUSINESS WELL MAINTAIN DISCIPLINE WITHIN INSTITUTIONAL RISK ADJUSTED MARGINS1,2 EXPENSE MANAGEMENT2 CREDIT QUALITY $m $m 2.28% 757 2.20% 2,772 2.04% 2,661 2,575 6,135 5,566 442 5,458 265 0.1% 0.0% 0.0% FY17 FY18 FY19 FY173 FY18 FY19 FY17 FY18 FY19 Expenses FTE # Gross impaired assets Credit
Slide 12: Run the Business Well: New Zealand
RUN THE BUSINESS WELL NEW ZEALAND BS11 (Outsourcing Policy) RBNZ Capital Review Paper 4 Expected to be finalised in Dec 2019 Requires all large banks in New Zealand to have compliant outsourcing arrangements Relates to the amount of regulatory capital by 2022 required of locally incorporated banks I
Slide 13: Investing for Growth
INVESTING FOR GROWTH GROUP INVESTMENT SPEND1 PREPARING FOR CHANGE $m LAST DECADE NEXT DECADE? 1,403 Universal services Specialisation Mass share Targeted share 1,234 1,218 1,153 1,179 One price for all Risk based pricing 564 Transactions Discussions 430 Value from branches Value from data 410 473 49
Slide 14: Capitalised Software Balance
CAPITALISED SOFTWARE BALANCE1 $b 3 2 1 0 Sep-08 Sep-10 Sep-12 Sep-14 Sep-16 Sep-18 Sep-19 ANZ Peer 3 Peer 2 Peer 1 1. Source: Capitalised software balances sourced from publicly available company financials; 2019 numbers are based on the most recently disclosure financial statements 13
Slide 15: Simplification
SIMPLIFICATION $8.6b cost base, lowest since 2013 Revenue $450m higher than 2013, despite selling 23 businesses Focused on simplifying key customer & enablement processes that represent 70% of our cost base Improving franchise strength 14
Slide 16: Capability
CAPABILITY EMPLOYEE ENGAGEMENT1 % 77 93% consider ANZ’s purpose when making decisions 73 72 86% are confident ANZ treats customers fairly 86% say ANZ demonstrates respect for our employees 73% say they have access to opportunities to help them grow 2017 2018 2019 1. ANZ ‘My Voice’ Staff Surv
Slide 17: CFO Michelle Jablko
2019 FULL YEAR RESULTS — M I C H E L L E J A B L KO CHIEF FINANCIAL OFFICER 16
Slide 18: Overview
OVERVIEW CASH PROFIT1,2 CASH EPS1,2 ROE1,2 CET1 RATIO (LEVEL 2) $m cents % % 6,809 6,487 6,470 233 11.7 11.4 11.4 223 228 11.0 10.9 10.6 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 Sep-17 Sep-18 Sep-19 1. Cash Profit from continuing operations 2. FY17 has not been restated for AASB15 impacts 17
Slide 19: Capital
CAPITAL APRA LEVEL 2 CET1 RATIO – CAPITAL MOVEMENT % 1.65 0.69 16.4% Internationally Comparable basis -0.29 -0.18 -1.15 -0.18 -0.18 -0.06 ~11.5 11.44 11.36 -0.38 -60bps net RWA imposts Includes customer remediation impacts (continuing and discontinuing) of -16bps and AASB9 of -5bps Sep-18 Net Organi
Slide 20: Regulatory Developments
REGULATORY DEVELOPMENTS IN CONSULTATION STAGE APRA LEVEL 1 & LEVEL 2 FY19 NET ORGANIC CAPITAL SEP-19 CET1 RATIOS APRA - Investments in subsidiaries (APS111) GENERATION bps RBNZ - Capital proposals APRA - Ongoing APRA regulatory reviews1 RECENTLY FINALISED (IMPLEMENTING) 165 11.4% 11.4% ~136 AP
Slide 21: Financial Performance
FINANCIAL PERFORMANCE CASH PROFIT CONTINUING OPERATIONS CASH PROFIT DRIVERS $m 79 6,487 1 131 6,470 -94 -134 -21% 0% 0% 20% -5% FY18 Large / Notable Revenue Expenses Provisions Tax & NCI FY19 items after tax1 CASH PROFIT DIVISIONAL PERFORMANCE $m 79 Australia Retail & 6,487 151 6,470 FY19 v FY18 Ins
Slide 22: Australia Retail & Commercial
AUSTRALIA RETAIL & COMMERCIAL INCOME EXCLUDING LARGE / NOTABLE ITEMS AND HOUSING PORTFOLIO INCOME COMPOSITION HOUSING PORTFOLIO1,2 $m $b 10,165 264 272 265 9,575 9 8 7 26 37 49 3,238 14 3,114 22 33 54 49 39 4,807 4,768 1,590 1,524 6,927 6,461 164 156 134 3,217 3,244 FY18 FY19 1H19 2H19 Sep-17 Sep-18
Slide 23: Australia Retail & Commercial - Housing Momentum
AUSTRALIA RETAIL & COMMERCIAL - HOUSING MOMENTUM IMPROVING MOMENTUM HOME LOAN APPLICATION TREND 3 month rolling average (Index Sep 2017 = 100) Clarity and consistency on policy and risk settings “Offer So Good” campaign – July 2 to August 31 110 Approval turnaround times 100 90 Industry condit
Slide 24: Institutional
INSTITUTIONAL INCOME CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS INSTITUTIONAL INCOME COMPOSITION1 MARKETS INCOME COMPOSITION $m $m +5% -1% 5,198 1,780 1,766 4,970 42 63 38 48 446 1,766 566 1,780 -4% -12% 2,657 940 2,541 470 23 361 19 826 448 271 256 48 940 826 1,296 190 1,173 236 234 235
Slide 25: Net Interest Margin
NET INTEREST MARGIN CONTINUING OPERATIONS GROUP NET INTEREST MARGIN (NIM) bps 180 -2 1 175 -2 2 -1 172 -4 -2 -6bps impact of lower rates -5bps -8bps 1H19 Asset & Treasury Deposits Wholesale Assets 2H19 Markets Large / 2H19 Funding Mix Funding Cost Underlying1 Balance Sheet Notable Items Activities2
Slide 26: Margin Environment
MARGIN ENVIRONMENT LOW RATE ENVIRONMENT SWITCHING FROM INTEREST ONLY TO PRINCIPAL & INTEREST Sep-19 $b Sensitivity to a 25bps drop in AUD, NZD and USD interest rates 23 24 20 Deposits & earnings on capital ~3 bps 10 8 16 6 11 $b 7 6 13 16 14 ~110 FY17 FY18 FY19 FY20 FY21 FY22 FY23+ Early conversions
Slide 27: Expenses
EXPENSES CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS FY19 EXPENSE DRIVERS $m 136 8,563 170 8,562 -259 -48 Includes Personnel & Includes Property Regulatory & productivity Compliance (net of $160m $125m inflation) -1.6% 0% FY18 FX BAU D&A Investment FY19 26
Slide 28: Investment Spend
INVESTMENT SPEND CONTINUING OPERATIONS TOTAL INVESTMENT SPEND BY DIVISION1 Capex and Opex $m 1,403 113 1,234 1,218 1,179 85 1,153 61 204 66 75 127 150 137 129 160 169 252 164 175 197 204 164 204 187 164 135 144 176 177 564 473 491 430 410 FY15 FY16 FY17 FY18 FY19 Australia Retail & Commercial Proper
Slide 29: Investment Spend
INVESTMENT SPEND CONTINUING OPERATIONS TOTAL INVESTMENT SPEND1 CAPITALISED SOFTWARE BALANCE Capex and Opex $m $m 1,403 2,893 1,234 1,218 1,153 1,179 2,202 33% 1,856 70% 58% 59% 65% 1,421 1,323 67% 42% 41% 35% 30% FY15 FY16 FY17 FY18 FY19 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Investment expensed Investm
Slide 30: Credit Quality: Provision Charge
CREDIT QUALITY PROVISION CHARGE CREDIT IMPAIRMENT CHARGE INDIVIDUAL PROVISION CHARGE $m $m 1,956 1,047 892 787 554 1,199 430 343 398 0.34% 380 688 795 0.21% 0.12% 0.13% FY16 FY17 FY18 FY19 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H191 IP Charge CP Charge CIC as % Avg. GLA New Increased Writebacks & Recov
Slide 31: Credit Quality: Impaired Assets
CREDIT QUALITY GROSS IMPAIRED ASSETS NEW IMPAIRED ASSETS $b $b 4 3.63 3.21 3.17 3 2.11 2.01 2 1 2.38 0 2.14 FY16 FY17 FY18 FY191 2.03 Australia Retail & Commercial New Zealand Institutional Other AUSTRALIAN HOUSING 90+ DAYS PAST DUE2 % 1.2 1.1 1.0 0.9 0.8 0.7 0.6 Sep-16 Sep-17 Sep-18 Sep-19 Sep- Mar
Slide 32: Customer Remediation
CUSTOMER REMEDIATION TOTAL REMEDIATION - POST TAX IMPACT $m 559 Financial impact 154 377 $826m ($682m post tax) charge in FY19 127 405 $1,579m ($1,216m post tax) charges since 1H17 123 72 250 40 45 53 70 $1,139m provisions on balance sheet at 30 Sep 2019 1H17 2H17 1H18 2H18 1H19 2H19 Discontin
Slide 33: Dividend
DIVIDEND PROPOSED 2019 FINAL DIVIDEND 80 CPS, 70% FRANKED DIVIDEND PER SHARE SHARES ON ISSUE1 cents #m 160 160 160 Benefiting from $3b buy-back & 6 consecutive halves of DRP neutralisation 2,926 2,903 2,843 80 80 80 80 80 80 FY17 FY18 FY19 FY17 FY18 FY19 Interim Final 1. Cash Continuing weighted ave
Slide 34: Dividend: Geographic Earnings
DIVIDEND GEOGRAPHIC EARNINGS AUSTRALIA GEOGRAPHY EARNINGS & DPOR1 GEOGRAPHIC EARNINGS1 % of total Group Statutory Profit 82% 76% 11% 10% 11% 16% 16% 73% 72% 69% 25% 26% 64% 64% 22% 28% 62% 29% 61% 55% 62% 64% 64% 61% 55% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 DPOR Australia Geography earn
Slide 35: 1H20 Context
1H20 CONTEXT Home loan momentum Low interest rate environment Markets Costs Regulatory capital 34
Slide 36: Group & Divisional Performance
2019 FULL YEAR RESULTS — I N V E S TO R D I S C U S S I O N PA C K GROUP & DIVISIONAL PERFORMANCE
Slide 37: Financial Performance – Statutory to Cash Profit
FINANCIAL PERFORMANCE – STATUTORY TO CASH PROFIT STATUTORY PROFIT CASH PROFIT REPORTED CASH PROFIT CONTINUING OPERATIONS $m $m $m -7% 0% 6,406 6,938 +6% 6,809 6,400 5,953 6,487 6,470 5,709 6,161 5,889 5,889 5,805 FY161 FY171 FY18 FY19 FY161 FY171 FY18 FY19 FY161,2 FY171 FY18 FY19 STATUTORY TO CASH A
Slide 38: Large / Notable Items
LARGE / NOTABLE (L/N) ITEMS1 1H17 2H17 1H18 2H18 1H19 2H19 Cash Profit Continuing Operations ($m) 3,355 3,454 3,493 2,994 3,564 2,906 Gain / (Loss) on sale from divestments -284 14 138 53 187 18 Divested business results 274 187 70 56 25 7 Customer remediation -40 -72 -45 -250 -70 -405 Restructuring
Slide 39: Customer Remediation
CUSTOMER REMEDIATION CUSTOMER REMEDIATION CONTINUING OPERATIONS CUMULATIVE CUSTOMER REMEDIATION 1,579 PRE TAX $m PRE TAX $m 485 422 928 119 753 256 181 1,157 352 29 220 672 153 572 51 86 1H17 2H17 1H18 2H18 1H19 2H19 110 POST TAX $m 1,216 337 334 100 657 22 534 67 156 180 127 882 19 42 13 157 477 11
Slide 40: Financial Performance
FINANCIAL PERFORMANCE CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS FY19 FY19 CASH PROFIT DRIVERS $m FY18 2019 SECOND HALF PERFORMANCE FY19 FY19 v FY18 $m 6,868 Cash Profit 6,487 6,470 0% 1 131 6,772 Large/Notable items (L/N) -381 -302 -94 Cash Profit ex L/N 6,868 6,772 -1% Australia Retail
Slide 41: Balance Sheet Strength: Capital Reallocation & Flexibility
BALANCE SHEET STRENGTH CAPITAL REALLOCATION & FLEXIBILITY CAPITAL REALLOCATION1 CAPITAL FLEXIBIILTY % CET1 CAPITAL FREED UP FROM TRANSFORMATION $b 11.9 11.9 SEPTEMBER 2015 PRO-FORMA SEPTEMBER 20192,3 INCLUDING ANNOUNCED ASSET DISPOSALS Institutional Retained for growth 4.5 reshaping and capital 5.6
Slide 42: Balance Sheet Composition
BALANCE SHEET COMPOSITION BY SEGMENT NET LOANS & ADVANCES CUSTOMER DEPOSITS $b $b 606 615 512 580 4 1 487 4 468 7 2 150 165 132 217 206 189 96 97 97 14 14 13 95 98 102 331 341 339 182 184 189 -1 Sep-17 Sep-18 Sep-19 Sep-17 Sep-18 Sep-19 Housing (Aus & NZ) Commercial (Aus & NZ) Other Retail (Aus & NZ
Slide 43: Revenue Performance
REVENUE PERFORMANCE CONTINUING OPERATIONS TOTAL REVENUE OTHER OPERATING INCOME CONTINUING OPERATIONS EX LARGE / NOTABLE ITEMS CONTINUING OPERATIONS EX LARGE / NOTABLE ITEMS $b $b $b $b -3% 0% -2% 0% 4.9 4.7 4.9 0.3 4.7 0.2 4.5 4.5 19.8 19.1 19.0 18.9 0.2 19.4 19.0 0.3 0.2 0.3 0.8 0.9 0.8 0.5 0.4 4.9
Slide 44: Expense Management
EXPENSE MANAGEMENT CONTINUING OPERATIONS TOTAL EXPENSES FULL TIME EQUIVALENT STAFF CONTINUING OPERATIONS EX LARGE / NOTABLE ITEMS CONTINUING OPERATIONS $b $b #‘000s #‘000s -4% 9.4 0% 9.0 9.1 8.5 8.6 8.6 50.2 37.9 37.6 1.7 3% 3% 1.5 1.9 46.6 1.4 1.5 44.9 1.5 0.1 0.2 0.1 39.9 39.1 28% 29% 1.6 1.9 1.5
Slide 45: Net Interest Margins
NET INTEREST MARGINS GROUP & DIVISIONAL MARGIN PERFORMANCE CONTINUING OPERATIONS FULL YEAR GROUP AUSTRALIA RETAIL & INSTITUTIONAL NEW ZEALAND COMMERCIAL bps bps bps bps 199 187 274 269 259 101 236 242 233 176 88 82 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 HALF YEAR GROUP AUSTRALIA
Slide 46: Risk Adjusted Performance
RISK ADJUSTED PERFORMANCE CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS GROUP1 AUSTRALIA RETAIL & INSTITUTIONAL1 NEW ZEALAND COMMERCIAL NET INTEREST INCOME / AVERAGE CREDIT RISK WEIGHTED ASSETS % 4.54 4.52 4.55 4.43 6.07 5.89 5.86 5.81 2.25 2.33 2.24 5.21 5.31 5.36 5.31 2.14 1H18 2H18 1H19 2
Slide 47: Divisional Performance
DIVISIONAL PERFORMANCE CASH PROFIT CONTINUING OPERATIONS CONTINUING OPERATIONS EX LARGE / NOTABLE ITEMS REVENUE EXPENSES REVENUE EXPENSES $b $b $b $b 19.4 19.0 1.0 19.0 18.9 1.0 0.6 0.8 3.3 3.3 3.2 3.3 5.1 5.0 5.3 9.4 5.2 8.6 8.6 9.1 1.2 1.0 1.0 1.0 1.2 1.3 1.2 1.3 2.9 2.7 2.7 2.6 10.0 9.4 10.2 9.6
Slide 48: Divisional Growth Rates
DIVISIONAL GROWTH RATES CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS FY19 v FY18 Revenue Expenses Pre Provision Profit Cash Profit FY19 Cash Profit ($m) Australia Retail & Commercial -6% 0% -9% -10% 3,581 Institutional 5% -3% 14% 11% 1,852 New Zealand (NZD) 2% 5% -1% -4% 1,526 Other 19% 0%
Slide 49: Australia Retail & Commercial
AUSTRALIA RETAIL & COMMERCIAL FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS $m FY18 FY19 FY19 v FY18 1H19 2H19 2H19 v 1H19 Income 10,165 9,575 -6% 4,807 4,768 -1% Net interest income 8,540 8,178 -4% 4,114 4,064 -1% Other operating income 1,625 1,397 -14% 693 704 2% Exp
Slide 50: Australia Retail & Commercial
AUSTRALIA RETAIL & COMMERCIAL FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS Productivity initiatives including Slower credit demand, tighter Lower collective provision charge workforce and branch optimisation home loan origination risk reflects reduced FUM. have offset
Slide 51: Australia - Retail
AUSTRALIA - RETAIL CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS NET INTEREST INCOME OTHER OPERATING INCOME 2H19 v Financial performance ($m) 2H18 1H19 2H19 1H19 $m $m 2,812 2,757 2,778 579 Revenue 3,391 3,217 3,244 1% 460 466 Expenses 1,287 1,250 1,312 5% Profit Before Provisions 2,104 1,96
Slide 52: Australia – Commercial
AUSTRALIA – COMMERCIAL CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS NET INTEREST INCOME OTHER OPERATING INCOME 2H19 v Financial performance ($m) 2H18 1H19 2H19 1H19 $m $m 1,385 1,357 1,286 252 233 238 Revenue 1,637 1,590 1,524 -4% Expenses 571 608 573 -6% Profit Before Provisions 1,066 982
Slide 53: Australia Retail & Commercial Balance Sheet
AUSTRALIA RETAIL & COMMERCIAL BALANCE SHEET NET LOANS & ADVANCES1 CUSTOMER DEPOSITS $b Commercial Customer preferences favouring saving Subdued system growth & increased competition $b products in low rate environment and offset by specialist segment growth transactional digital payments offering Re
Slide 54: Institutional
INSTITUTIONAL FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS $m FY18 FY19 FY19 v FY18 1H19 2H19 2H19 v 1H19 Income 4,970 5,198 5% 2,657 2,541 -4% Net interest income 2,934 3,025 3% 1,548 1,477 -5% Other operating income 2,036 2,173 7% 1,109 1,064 -4% Expenses 2,661 2,57
Slide 55: Institutional
INSTITUTIONAL FY19 FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS Continued momentum and Productivity focus maintained, Credit charges remained below Targeted profitable growth and customer revenue growth absolute cost reduction long run trend improved returns Income ($
Slide 56: Institutional
INSTITUTIONAL 2H19 FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS Subdued market environment Seventh consecutive half of Low credit charges indicate Economic conditions in 2H19 resulted in lower 2H19 revenue absolute cost reduction continued portfolio health impacted re
Slide 57: Institutional
INSTITUTIONAL TOTAL REVENUE REDUCED IN 2H19 IN MARKETS AND INTERNATIONAL, CUSTOMER REVENUE REMAINED STABLE REVENUE BY PRODUCT1,2 AVERAGE CREDIT RWA1,2 -4% +4% $m $b 2,657 2,541 142 147 2,459 2,511 135 138 23 19 2 4 30 18 2 2 940 33 33 35 896 884 826 32 19 18 18 18 224 224 236 234 578 595 644 652 82
Slide 58: Institutional Markets Income
INSTITUTIONAL MARKETS INCOME LOWER INCOME FROM BALANCE SHEET TRADING PARTLY OFFSET BY STRENGTH IN THE FRANCHISE BUSINESS MARKETS INCOME COMPOSITION1 YOY MARKETS AVERAGE VALUE AT RISK (99% VAR) $m -1% $m 2,332 229 40 1,780 1,766 625 63 38 30 566 446 557 361 20 271 921 880 921 10 0 FY17 FY18 FY19 1H17
Slide 59: Institutional
INSTITUTIONAL SEVENTH CONSECUTIVE HALF OF ABSOLUTE COST REDUCTION EXPENSE CONTRIBUTION1 FY19 EXPENSE DRIVERS1 $m $m -3% -4% 85 20 -2% 2,661 1,494 -2% -2% -2% -80 2,575 1,431 -2% -1% 1,400 1,372 -111 1,347 1,314 1,293 1,282 711 692 656 680 645 643 638 FY18 FX Inflation D&A Productivity FY19 633 FTE1
Slide 60: Institutional
INSTITUTIONAL VOLUME & MARGINS: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS VOLUMES1 NIM BY REGION3 $b bps 122 125 112 241 105 104 238 97 98 235 95 231 206 208 207 199 156 158 161 149 147 145 139 138 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2H18
Slide 61: New Zealand Division
NEW ZEALAND DIVISION FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS NZDm FY18 FY19 FY19 v FY18 1H19 2H19 2H19 v 1H19 Income 3,483 3,538 2% 1,756 1,782 1% Net interest income 2,881 2,939 2% 1,460 1,479 1% Other operating income 602 599 0% 296 303 2% Expenses 1,257 1,326
Slide 62: New Zealand Division
NEW ZEALAND DIVISION FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS Margin compression, compliance Solid home lending growth within Increased regulatory compliance Provisions returning to more costs and provisions impacting a competitive environment requirements normali
Slide 63: New Zealand Division – Retail
NEW ZEALAND DIVISION – RETAIL FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS 2H19 v NET INTEREST INCOME OTHER OPERATING INCOME Financial performance (NZDm) 2H18 1H19 2H19 1H19 NZDm NZDm 946 936 933 286 287 295 Revenue 1,232 1,223 1,228 0% Expenses 493 507 546 8% Profit
Slide 64: New Zealand Division - Commercial
NEW ZEALAND DIVISION - COMMERCIAL FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS 2H19 v NET INTEREST INCOME OTHER OPERATING INCOME Financial performance (NZDm) 2H18 1H19 2H19 1H19 NZDm NZDm 509 517 539 Revenue 519 527 547 4% 10 10 8 Expenses 130 127 141 11% Profit befor
Slide 65: New Zealand Division Balance Sheet
NEW ZEALAND DIVISION BALANCE SHEET GROSS LOANS & ADVANCES CUSTOMER DEPOSITS NZDb NZDb 124 126 89 90 122 87 118 119 84 10% 82 11% 12% 14% 13% 30% 31% 29% 29% 30% 57% 54% 56% 52% 53% 49% 51% 51% 50% 50% 32% 32% 31% 31% 31% 21% 21% 20% 19% 19% 2% 2% 3% 2% 2% Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Sep-17 Ma
Slide 66: Wealth Australia
WEALTH AUSTRALIA DIVESTED BUSINESSES - PENSIONS AND INVESTMENTS (P&I) FINANCIAL PERFORMANCE GROSS MARGIN2 $m $m 104 61.0% 55.8% 56.2% 57.5% 2 91 -15 163 164 154 151 FY18 Pro- Income Expense FY19 Pro- 1H18 2H18 1H19 2H19 forma NPAT1 forma NPAT1 Cost-To-Income ratio (%) AVERAGE FUM3 GUIDE TO FINANCIAL
Slide 67: Wealth Australia
WEALTH AUSTRALIA DIVESTED BUSINESSES – P&I FUM AND FLOWS INFLOWS AND OUTFLOWS BY SOLUTION FY19 NET FLOWS BY SOLUTION $b $m Open solutions Closed solutions FY18 FY19 Inflows Outflows Inflows Outflows Open solutions 4.2 -4.5 3.4 -5.1 -204 -317 -332 ANZ Smart Choice 2.2 -2.1 2.0 -2.2 Wrap 0.8 -1.0 0.7
Slide 68: Treasury
2019 FULL YEAR RESULTS — I N V E S TO R D I S C U S S I O N PA C K TREASURY
Slide 69: Regulatory Capital
REGULATORY CAPITAL CAPITAL UPDATE APRA LEVEL 2 COMMON EQUITY TIER 1 (CET1) APRA Level 2 CET1 ratio of 11.4% (16.4% on an Internationally Comparable basis 1), % which is in excess of APRA’s ‘unquestionably strong’ benchmark2. Net Organic Capital APRA Level 1 CET1 ratio of 11.4%. Level 1 consolida
Slide 70: Regulatory Capital Generation
REGULATORY CAPITAL GENERATION COMMON EQUITY TIER 1 GENERATION 2H averages Full Year average 2H19 FY19 (bps) 2H12-2H18 FY12-FY18 Cash NPAT1 95 83 189 172 Organic Capital Generation RWA movement 1 (10) (13) (7) Capital Deductions2 (6) 2 (18) - Net organic capital generation of Net capital generation
Slide 71: Internationally Comparable Regulatory Capital Position
INTERNATIONALLY COMPARABLE1 REGULATORY CAPITAL POSITION APRA Level 2 CET1 – 30 September 2019 11.4% Corporate undrawn EAD and Australian ADI unsecured corporate lending LGDs and undrawn CCFs exceed those applied in many jurisdictions 1.6% unsecured LGD adjustments APRA requires 100% deduction from C
Slide 72: CET1 and Leverage in a Global Context
CET1 AND LEVERAGE IN A GLOBAL CONTEXT CET1 RATIOS1 LEVERAGE RATIOS1,2 5% 10% 15% 20% 2% 4% 6% 8% ABN Amro OCBC Svenska Handelsbanken UOB SEB DBS Swedbank Morgan Stanley BBVA Danske Bank Erste Bank ANZ Raiffeisen Bank International (RBI) RBS Intesa Sanpaolo Rabobank Groupe BPCE ANZ Credit Agricole Gr
Slide 73: Balance Sheet Structure
BALANCE SHEET STRUCTURE1 BALANCE SHEET COMPOSITION NSFR COMPOSITION Sep 2019 $515b Wholesale $443b Funding & Other3 Liquids Non Financial and Other Assets4 Corporates Other Short Term Wholesale Debt & Loans5 Liquid and Other Assets Other Funding2 Retail/SME 29% 25% Residential Mortgages6,7 Capital <
Slide 74: Liquidity Coverage Ratio (LCR) Summary
LIQUIDITY COVERAGE RATIO (LCR) SUMMARY1 LCR COMPOSITION (AVERAGE) MOVEMENT IN AVERAGE LCR SURPLUS ($b) FY19 FY18 v FY19 $188b Internal RMBS Other ALA2 FY18 FY19 LCR 138% LCR 140% HQLA2 2 6 54 53 $134b 1 Wholesale funding -4 HQLA1 0 -4 Customer deposits & other3 Liquid Assets Net Cash Outflow FY18 CL
Slide 75: Term Wholesale Funding Portfolio
TERM WHOLESALE FUNDING PORTFOLIO1 • ANZ’s term funding requirements depend on market conditions, balance sheet needs and exchange rates, amongst other factors • ANZ estimates an FY20 funding requirement broadly consistent with previous years at ~$25b ISSUANCE MATURITIES $14.5b in AUD $b and NZD 32 2
Slide 76: ANZ's Tier 2 Capital Profile
ANZ’S TIER 2 CAPITAL PROFILE1 ANZ’S TIER 2 CAPITAL REQUIREMENT TO TIER 2 CAPITAL PROGRESSIVELY INCREASE POST TLAC ANNOUNCEMENT Notional amount • Issued AUD $1.75b in July 2019 By Format By Currency • Current portfolio includes 38% in AUD (32% domestic AUD) – strong capacity remaining in AUD 6% • Ann
Slide 77: Impacts of Rate Movements
IMPACTS OF RATE MOVEMENTS BILLS/OIS SPREAD CAPITAL & REPLICATING CAPITAL2 & REPLICATING DEPOSITS PORTFOLIO DEPOSITS PORTFOLIO (AUSTRALIA) bps % 65 3.0 60 AUST NZ APEA 55 2.5 50 Volume ($A) ~60bn ~20bn ~10bn 45 40 2.0 Target Duration Rolling 3 to 5 years Various 35 30 1.5 Proportion Hedged ~70% ~75%
Slide 78: Capital Framework
CAPITAL FRAMEWORK CURRENT REGULATORY PROPOSALS AND RECENT FINALISATION1 1H19 2H19 2020 2021 2022 2023 2024 RBNZ capital framework Consultation Finalise2 Transition Implementation Counterparty Credit Risk3 Implementation Leverage ratio Consultation Finalise Implementation Advanced approach to credit
Slide 79: Risk Management
2019 FULL YEAR RESULTS — I N V E S TO R D I S C U S S I O N PA C K RISK MANAGEMENT
Slide 80: Key Risk Metrics
KEY RISK METRICS CREDIT IMPAIRMENT CHARGE INDIVIDUAL PROVISION (IP) CHARGE COLLECTIVE PROVISION (CP) BALANCE & COVERAGE Sep-19 CP/CRWA impacted -3bps by increase in CRWA’s $m $m $m 787 from regulatory & methodology changes (incl. SA-CCR) 554 720 430 343 398 3,378 3,376 380 2,785 2,662 479 2,579 2,52
Slide 81: Risk Management: Provisions
RISK MANAGEMENT PROVISIONS CREDIT IMPAIRMENT CHARGE ANZ HISTORICAL LOSS RATES $m bps 1,500 250 1,200 1,038 918 200 900 720 479 150 600 408 280 393 402 300 100 0 50 -300 0 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep 90 93 96 99 02 05 08 11 14 17 18 19 Consu
Slide 82: Collective Provision
COLLECTIVE PROVISION COLLECTIVE PROVISION BALANCE COLLECTIVE PROVISION CHARGE1 $m AASB9 813 90 27 23 3,376 $m 1H19 2H19 FY19 CP charge 13 4 17 -79 -21 2,523 Volume/Mix -28 -51 -79 Change in Risk -40 19 -21 CP charge 17 Economic outlook 73 17 90 sensitivity Other 8 19 27 Sep-18 Transition Volume / Ch
Slide 83: Risk Management: Impaired Assets
RISK MANAGEMENT IMPAIRED ASSETS CONTROL LIST GROSS IMPAIRED ASSETS BY DIVISION Index Sep 09 = 100 $m 150 3,173 2,883 2,940 3,000 100 2,384 2,034 2,139 2,128 2,029 2,000 50 1,000 0.51% 0.55% 0.51% 0.41% 0.34% 0.33% 0.33% 0.33% 0 Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep 0 Mar-16 Sep-16 Mar-17 Sep-1
Slide 84: Risk Management: Risk Weighted Assets
RISK MANAGEMENT RISK WEIGHTED ASSETS TOTAL RISK WEIGHTED ASSETS 2H19 increase includes op. risk modelled increase CRWA MOVEMENT Increase driven by SA-CCR implementation, a regulatory overlay for Australia Home Loans as well as of +$3b combined with an overlay +$6.25b and implementation of APRA Risk
Slide 85: Risk Management: Portfolio Composition
RISK MANAGEMENT PORTFOLIO COMPOSITION % of Portfolio in Non Portfolio Balance EXPOSURE AT DEFAULT (EAD) DISTRIBUTION Category % of Group EAD Performing in Non Performing Sep-18 Mar-19 Sep-19 Sep-18 Mar-19 Sep-19 Sep-19 TOTAL GROUP EAD (Sep-19) Consumer Lending 39.7% 38.8% 37.6% 0.2% 0.2% 0.1% $549m
Slide 86: Risk Management: Commercial Property Portfolio
RISK MANAGEMENT COMMERCIAL PROPERTY PORTFOLIO COMMERCIAL PROPERTY OUTSTANDINGS BY REGION COMMERCIAL PROPERTY OUSTANDINGS BY SECTOR $b % % 42.9 100 42.4 12 80 40.2 2.8 2.8 38.4 37.9 37.7 37.6 11 60 37.5 2.9 3.9 3.6 2.7 2.4 3.0 10 40 10.7 10.5 9.8 20 9 8.8 9.5 9.5 9.7 9.7 8 Mar-17 Sep-17 Mar-18 Sep-18
Slide 87: Residential Development
RESIDENTIAL DEVELOPMENT OVERVIEW PROFILE (SEP-19) Total Residential Limits: $10.6b 31% • Average qualifying pre-sales for Inner City Apartment 20% Development loans and corresponding LVRs were 101% and 52%, respectively as at Sep 19 (as compared to presales of Apartment Development 101% and LVR of 4
Slide 88: Group Agriculture Portfolio
RISK MANAGEMENT GROUP AGRICULTURE PORTFOLIO AGRICULTURE EXPOSURE BY SECTOR (% EAD) GROUP AGRICULTURE EAD SPLITS1 6.6% Total EAD (Sep-19) As a % of Group EAD 3.3% A$35.2b 3.6% 6.1% 3.0% 43.5% 44.9% 15.9% 14.9% 10.4% 98.9% 98.9% 74.2% 76.0% 56.2% 54.9% 12.8% 35.0% 0.3% 0.2% 1.1% 1.1% Sep-18 Sep-19 Sep
Slide 89: Group Resources Portfolio
GROUP RESOURCES PORTFOLIO TOTAL ANZ PORTFOLIO RESOURCES PORTFOLIO THERMAL COAL EXPOSURE EAD $b EAD $b EAD $b 2.0 977 Resources: 944 17 1.8% of ANZs 1.5 903 15 20.0 Thermal 898 895 total portfolio 20 16 14 coal 1.0 1.7 mining: 0.6 17.3 <0.1% of 0.5 ANZs total 1.3 16.1 0.8 0.0 portfolio 15.3 0.7 Sep-1
Slide 90: ANZ Institutional Portfolio
RISK MANAGEMENT ANZ INSTITUTIONAL PORTFOLIO (COUNTRY OF INCORPORATION1) INSTITUTIONAL PORTFOLIO SIZE & TENOR (EAD2) ANZ INSTITUTIONAL INDUSTRY COMPOSITION $b EAD (Sep-19): A$447b2 Finance (Banks and Central Banks) Government Admin. 400 26% 30% Services to Fin. & Ins. Property Services3 350 Basic Mat
Slide 91: ANZ Asian Institutional Portfolio
RISK MANAGEMENT ANZ ASIAN INSTITUTIONAL PORTFOLIO (COUNTRY OF INCORPORATION1) COUNTRY OF INCORPORATION1 ANZ ASIA INDUSTRY COMPOSITION EAD (Sep-19): A$121b2 EAD (Sep-19): A$121b2 Finance (Banks & Central Banks) 5% 19% Basic Material Wholesaling 3% 3% Machinery & Equip Mnfg 5% 26% 2% Petroleum,Coal,Ch
Slide 92: Housing Portfolio
2019 FULL YEAR RESULTS — I N V E S TO R D I S C U S S I O N PA C K HOUSING PORTFOLIO
Slide 93: Australia Home Loans: Portfolio Overview
AUSTRALIA HOME LOANS PORTFOLIO OVERVIEW Portfolio1 Flow2 Portfolio1 FY17 FY18 FY19 FY18 FY19 FY17 FY18 FY19 Number of Home Loan Average LVR at Origination7,8,9 69% 67% 67% 1,009k 1,011k 983k 170k3 119k3 accounts1 Average Dynamic LVR (excl offset)8,9,10,11,12 55% 55% 57% Total FUM1 $264b $272b $265b
Slide 94: Australia Home Loans: Portfolio Growth
AUSTRALIA HOME LOANS PORTFOLIO GROWTH HOME LOAN COMPOSITION1,2 LOAN BALANCE & LENDING FLOWS1 $b $b 256 264 271 272 269 265 16 8 7 29 10 9 9 8 272 -2 31 26 265 43 37 54 49 -50 14 17 22 29 33 54 52 38 49 44 39 33 Sep-18 New Sales Net OFI Refi Redraw & Repay / Other Sep-19 exc Refi-In Interest ANZ MORT
Slide 95: Australia Home Loans: Market Share
AUSTRALIA HOME LOANS MARKET SHARE MARKET SHARE TOTAL HOUSING OWNER OCCUPIED INVESTOR 14.9% 14.4% 15.6% 13.8% 13.6% 14.9% June 19 (MBS) June 19 (MADIS) June 19 (MBS) June 19 (MADIS) June 19 (MBS) June 19 (MADIS) In July 2019 the APRA Monthly Authorised Deposit Institution Statistics (MADIS) publicati
Slide 96: Australia Home Loans: Portfolio & Flow Composition
AUSTRALIA HOME LOANS PORTFOLIO1,2 & FLOW3 COMPOSITION BY PURPOSE BY ORIGINATION LVR4 Portfolio Flow Flow 4% 3% 3% 1% 20% 18% 17% 30% 26% 33% 32% 19% 17% 16% 65% 67% 73% 65% 67% 63% 61% Sep-17 Sep-18 Sep-19 FY19 FY17 FY18 FY19 Owner Occ Investor Equity <80% LVR 80% LVR >80% LVR BY LOCATION BY CHANNEL
Slide 97: Australia Home Loans: Portfolio Dynamics
AUSTRALIA HOME LOANS PORTFOLIO DYNAMICS HOME LOANS REPAYMENT PROFILE1,2 HOME LOANS ON TIME & <1 MONTH AHEAD PROFILE1,2 76% of accounts ahead of repayments % composition of accounts (September 19) 27% Investment:5 Interest payments may receive 20% 21% 38 37 negative gearing/tax benefits 21 19 New Acc
Slide 98: Australia Home Loans: Portfolio Performance
AUSTRALIA HOME LOANS PORTFOLIO PERFORMANCE PRODUCT 90+ DAY DELINQUENCIES1,2,3 HOME LOAN DELINQUENCIES1,2,5 % % 5.0 2.5 4.0 2.0 3.0 1.5 2.0 1.0 1.0 0.5 0.0 0.0 Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep 12 13 14 15 16 17 18 19 12 13 14 15 16 17 18 19 Home Loans Personal Loans 30+
Slide 99: Australia Home Loans: Western Australia
AUSTRALIA HOME LOANS WESTERN AUSTRALIA • Exposure to WA has decreased since Mar-16 driven by the economic WA OUTSTANDING BALANCE environment and credit policy tightening (mining town lending) $b • Currently WA comprises 13% of portfolio FUM (and is decreasing), 40 however it comprises 27% of 90+ del
Slide 100: Australia Home Loans: New South Wales/ACT
AUSTRALIA HOME LOANS NEW SOUTH WALES/ACT Portfolio HOUSING PORTFOLIO1 HOUSING FLOW • NSW/ACT makes up 32% of portfolio FUM and 25% of 90+ days past due. $b $b • 76% in advance of repayments which is in line with the total portfolio. 272 264 271 269 265 • 18% of the portfolio is Interest Only & reduc
Slide 101: Australia Home Loans: Interest Only
AUSTRALIA HOME LOANS INTEREST ONLY INTEREST ONLY FLOW COMPOSITION • Serviceability assessment is based on ability to repay principal & interest repayments calculated over the residual term of loan % APRA’s 30% limit removed December 2018 • 86% of Interest Only customers have net income >$100k p.a. (
Slide 102: Australia Home Loans: Underwriting Practices
AUSTRALIA HOME LOANS UNDERWRITING PRACTICES AND POLICY CHANGES1 • End-to-end home lending responsibility managed within ANZ Multiple checks during origination process • Effective hardship & collections processes Pre – application2 Income & Expenses • Full recourse lending • ANZ assessment process ac
Slide 103: Underwriting Practices and Policy Changes, 2015-2019
AUSTRALIA HOME LOANS UNDERWRITING PRACTICES AND POLICY CHANGES1 - JUNE 2015 TO SEPTEMBER 2019 ANZ LVR Caps • LVR cap reduced to 70% in high risk mining towns in June 2015; reduced to 90% for investment loans (July 2015) • Restricted new housing lending (new security to ANZ) to max. 80% LVR for all a
Slide 104: Stress Testing the Australian Mortgage Portfolio
AUSTRALIAN HOME LOANS STRESS TESTING THE AUSTRALIAN MORTGAGE PORTFOLIO • ANZ conducts regular stress tests of its loan portfolios to meet risk management Assumptions Base1 Year 1 Year 2 Year 3 objectives and satisfy regulatory requirements. Unemployment 5.1% 5.5% 9.8% 10.5% rate • Stress tests are h
Slide 105: Lenders Mortgage Insurance
LENDERS MORTGAGE INSURANCE SEPTEMBER FULL YEAR 2019 RESULTS LMI & REINSURANCE STRUCTURE Australian Home Loan portfolio LMI and Reinsurance Structure at 30 Sep 19 (% New Business FUM Oct-18 to Sep-19) Gross Written Premium ($m) $80.7m LVR<80% Not LMI Insured Net Claims Paid ($m) $31.4m 86% Loss Rate
Slide 106: New Zealand Home Loans: Portfolio Overview
NEW ZEALAND HOME LOANS PORTFOLIO OVERVIEW1 Portfolio Flow Portfolio FY17 FY18 FY19 FY19 FY17 FY18 FY19 Number of Home Loan Accounts 520k 526k 527k 118k Average LVR at Origination2 59% 58% 56% Total FUM NZD77b NZD81b NZD85b NZD19b Average Dynamic LVR2 43% 41% 42% Average Loan Size2 NZD148k NZD153k NZ
Slide 107: New Zealand Home Loans: Lending & Arrears Trends
NEW ZEALAND HOME LOANS HOME LENDING & ARREARS TRENDS1 NZ DIVISION 90+DAYS HOUSING FLOWS2 HOUSING PORTFOLIO DELINQUENCIES % 1.5 1.0 21% 18% 15% 34% 39% 40% 0.5 79% 82% 85% 66% 61% 60% 0.0 Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- FY17 FY18 FY19 Sep-17 Sep-18 Sep-19 08 09 10 11 12 13
Slide 108: Royal Commission Update & Regulatory Reforms
2019 FULL YEAR RESULTS — I N V E S TO R D I S C U S S I O N PA C K R OYA L C O M M I S S I O N U P D AT E & R E G U L ATO R Y R E F O R M S
Slide 109: Royal Commission: Our Approach, Our Response
ROYAL COMMISSION OUR APPROACH, OUR RESPONSE WE ARE RESPONDING TO THE ‘SPIRIT AND THE LETTER’ OF THE ROYAL COMMISSION. Initial response • Committed in February 2019 to sixteen actions that we can take now including: • removing overdrawn and dishonour fees on our Pensioner Advantage account • improvin
Slide 110: Strengthening Our Risk Culture
STRENGTHENING OUR RISK CULTURE • We have strengthened the way we deal with risk events SENIOR LEADER CONSEQUENCES IN 2019* through an enhanced Accountability and Consequence Framework, which is applicable to all of our people. Remuneration consequence 23 • In 2019 across the Group, 151 employees wer
Slide 111: Corporate Overview and ESG
2019 FULL YEAR RESULTS — I N V E S TO R D I S C U S S I O N PA C K C O R P O R AT E O V E R V I E W & E N V I R O N M E N T, S O C I A L A N D G O V E R N A N C E ( E S G )
Slide 112: ESG – Governance Overview
ESG – GOVERNANCE OVERVIEW BOARD OF DIRECTORS Chaired by David Gonski, Chairman Audit Committee Risk Committee Ethics, Environment, Digital Business Human Resources Nomination and Social and Technology Committee Board Operations and Governance Committee Committee Committee Chair: Chair: Chair: Chair:
Slide 113: Board and Executive Committees Work Together
BOARD AND EXECUTIVE COMMITTEES WORK TOGETHER INDICATIVE RESPONSIBILITIES DEMONSTRATE HOW COMMITTEES MANAGE ESG Ethics, Environment, Social and Governance Ethics and Responsible Business Board committee Management committee Purpose: Establish ethical and ESG guidelines and Purpose: Operationalise Boa
Slide 114: Bringing Our Purpose to Life
BRINGING OUR PURPOSE TO LIFE CHOICES ABOUT WHO WE SERVE CHOICES ABOUT HOW WE OPERATE • WHO we bank • HOW we organise ourselves • HOW we bank • HOW we behave • WHAT we care about • HOW we measure & communicate our progress WHAT WE CARE ABOUT Housing Environmental Sustainability Financial Wellbeing Ou
Slide 115: 'What We Care About Most' – A Year in Review
‘WHAT WE CARE ABOUT MOST’ – A YEAR IN REVIEW More Australians and New Zealanders • Joint Lead Manager on $315m National Housing Finance and Investment Corporation bond, and have access to affordable, liveable, NZD$500m and NZD$600m bonds for Housing New Zealand to provide new and upgraded social hou
Slide 116: Creating Value for Our Stakeholders
CREATING VALUE FOR OUR STAKEHOLDERS CUSTOMERS COMMUNITY • 8.7m total retail, commercial • $142m contributed in and Institutional customers community investment3 EMPLOYEES SHAREHOLDERS • $291b in retail & commercial • 134,930 volunteering hours customer deposits in Australia • 39,060 people employed
Slide 117: FY19 ESG Target Performance
FY19 ESG TARGET PERFORMANCE SCORECARD SNAPSHOT We are committed to the United Nations Sustainable Development Goals (SDGs). Our ESG targets support 10 of Not achieved Achieved In progress the 17 SDGs. ESG target Progress Outcome Relevant SDGs FAIR AND RESPONSIBLE BANKING Implement new Dispute Resolu
Slide 118: ESG Performance Trends
ESG PERFORMANCE TRENDS COMMUNITY INVESTMENT1 MONEYMINDED & SAVER PLUS ENVIRONMENTAL FINANCING $15B TARGET Total community investment ($m) Estimated # of people reached Funded and facilitated ($b) 137 142 88,308 90,724 19.1 131 80,074 11.5 90 69,826 65,549 75 6.9 2.5 2015 2016 2017 2018 2019 2015 201
Slide 119: External Reporting
EXTERNAL REPORTING RECOGNITION Second ranked Australian We achieved a CDP Member of the 2018-19 leader in Platinum Status LGBTI bank on the Dow Jones climate disclosure score FTSE4Good Index workplace gender Employer of Choice for Sustainability Index, scoring of A- in 2018 equality longevity in hig
Slide 120: Climate-Related Financial Disclosures
2019 FULL YEAR RESULTS — C L I M AT E - R E L AT E D F I N A N C I A L D I S C L O S U R E S
Slide 121: Climate-Related Financial Disclosures (TCFD)
CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)1 Governance Strategy Risk Management Metrics & targets • Board Risk Committee oversees • Low carbon financial products and • Climate-related risks identified as • 29 engagements with large management of climate-related services potential credit risk emitt
Slide 122: Supporting Customers and Training Staff on Low Carbon Transition Plans
SUPPORTING OUR CUSTOMERS AND TRAINING OUR STAFF ON THE DEVELOPMENT OF LOW CARBON TRANSITION PLANS CUSTOMER MANAGEMENT AND STAFF TRAINING CUSTOMER EXAMPLE: BHP’S TRANSITION PLANNING BHP has an integrated strategy including: ANZ customer management informed by climate-related engagement • Targets to h
Slide 123: Further Information
FURTHER INFORMATION Our Shareholder information anz.com/shareholder/centre/ Equity Investors Jill Campbell Cameron Davis Harsh Vardhan Group General Manager Executive Manager Manager Investor Relations Investor Relations Investor Relations +61 3 8654 7749 +61 3 8654 7716 +61 3 8655 0878 +61 412 047
Australia and New Zealand Banking Group Limited (ANZ) — FY2019 Earnings Presentation on 6ix