Anz Group Holdings Limited · ASX:ANZ
Anz — Debt Investor Presentation (May 2024)
88 slides from Anz's debt investor presentation, May 2024
Slide 1: ANZ 2024 Half Year Results Debt Investor Presentation
ANZ 2024 HALF YEAR RESULTS MAY 2024 DEBT INVESTOR PRESENTATION ANZ Group Holdings Limited ABN 16 659 510 791 9/833 Collins Street Docklands Victoria 3008 Australia
Slide 2: Disclaimer & Important Notice
ANZ 2024 Half Year Results DISCLAIMER & IMPORTANT NOTICE Background information only page 75 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 (together, t
Slide 3: Disclaimer & Important Notice
ANZ 2024 Half Year Results 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 investor" means a pe
Slide 4: Disclaimer & Important Notice
ANZ 2024 Half Year Results 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, ANZGHL nor any of their affiliates, agents, employees or advisors inte
Slide 5: Contents
ANZ 2024 Half Year Results 5 Overview & Key Financial Information 38 Additional Financials 54 Asset Quality CONTENTS 63 Housing 71 Environment, Social & Governance (ESG) 79 Economics 87 Key Contacts 4
Slide 6: Overview & Key Financial Information
ANZ 2024 HALF YEAR RESULTS OVERVIEW & KEY FINANCIAL INFORMATION
Slide 7: ANZ Overview
ANZ 2024 Half Year Results ANZ OVERVIEW ANZ - Four key divisions, share of 1H24 revenue ($10.3b) 1H24 / vs 2H23/Sep 23 As at Mar 24 Australia Retail - Provides a range of banking products and services to Cash Profit $3,552m -1% 28% Australian consumers Cash ROE1 10.1% -42bps Cash ROTE1 10.7% -46bps
Slide 8: Financial Performance Summary
ANZ 2024 Half Year Results FINANCIAL PERFORMANCE SUMMARY Financial Performance, $m 5,543 5,223 5,132 4,811 4,157 3,829 3,584 3,552 3,402 3,113 1H22 2H22 1H23 2H23 1H24 Profit Before Provisions Cash profit 7
Slide 9: Portfolio Diversification
ANZ 2024 Half Year Results PORTFOLIO DIVERSIFICATION Revenue contribution – 4 major divisions, $b Revenue ROE1 2.4 incl. Commercial change 10.3 customer revenue booked (1H24 vs 1H21) (1H24) 10.0 in other divisions 8.8 1.8 1.7 8.4 Australia Commercial +32% ~25% 1.3 1.6 1.8 1.8 1.5 1.6 New Zealand +19
Slide 10: Group Operating Income
ANZ 2024 Half Year Results GROUP OPERATING INCOME Total Operating Income, $m Total Operating Income drivers, $m 10,540 10,365 10,347 254 10,422 9,599 1,149 10,365 10,347 958 1,212 755 -75 1,055 1,353 1,172 1,361 -91 -61 -45 Includes loss on sale of AmBank -21 8,336 8,054 7,963 7,483 -0.2% +0.5% 2H22
Slide 11: Loans and Deposits
ANZ 2024 Half Year Results LOANS AND DEPOSITS Net Loans and Advances, $b FX Adj 10.1 2.3 1.6 715.2 704.5 -3.3 +3% +4% -2% +1% NZD Sep 23 Australia Retail Australia Commercial Institutional New Zealand Mar 24 Customer Deposits ex Markets, $b FX Adj 7.5 3.1 2.2 655.0 644.3 -2.1 +5% +3% -1% +2% NZD Com
Slide 12: Group Net Interest Margin (NIM)
ANZ 2024 Half Year Results GROUP NET INTEREST MARGIN (NIM) Group NIM movements (prior to Markets activities impact), bps 165 3 163 0 0 -1 -4 Incl -3 Housing Increased rate (Aus / NZ) partially offset by reduced volume -2bps 2H23 Assets pricing Deposits pricing Assets and Capital and Wholesale fundin
Slide 13: Operating Expenses
ANZ 2024 Half Year Results OPERATING EXPENSES Total Operating Expenses, $m 96 252 -41 5,215 5,149 -201 -40 Incl. Cloud Incl. and ANZ seasonal Plus run factors costs +1% 2H23 FX Adj. Wage & vendor Strategic initiatives Other Productivity Initial 1H24 inflation1 CSLR Levy 1. Includes increase in emplo
Slide 14: Productivity
ANZ 2024 Half Year Results PRODUCTIVITY Cumulative productivity savings, $m 1,600 1H24 sustainable productivity savings by category Largest impact from Technology services $62m 1,400 productivity in a half Technology estate simplification through ongoing migration of applications to the Cloud, sof
Slide 15: Credit Quality
ANZ 2024 Half Year Results CREDIT QUALITY Individual Provision Loss Rate Internal Expected Loss, bps Individual Provision Charge (IP) / Average Gross Loans & Advances1, % 35 30 0.35 25 20 0.30 15 10 0.25 Sep 16 Sep 17 Sep 18 Sep 19 Sep 20 Sep 21 Sep 22 Sep 23 Mar 24 0.20 Total Exposures and Risk int
Slide 16: Long Run Provisions & Loss Rates
ANZ 2024 Half Year Results LONG RUN PROVISIONS & LOSS RATES Total Credit Impairment charge, $m 2,000 1,500 1,000 500 0 -500 -1,000 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 1H23 2H23 1H24 Cons
Slide 17: Expected Credit Loss – Economic Scenarios: Modelled Outcomes
ANZ 2024 Half Year Results EXPECTED CREDIT LOSS – ECONOMIC SCENARIOS: MODELLED OUTCOMES (COLLECTIVE PROVISION BALANCE SCENARIOS)¹ Mar 24, $m Economic scenarios Actual Base case 2 31 March 2024 CY2022A CY2023A CY2024F CY2025F Australia GDP change3 3.6% 2.0% 1.3% 2.0% 100% base case Weightings to scen
Slide 18: Australia Home Loans – Portfolio Overview
ANZ 2024 Half Year Results AUSTRALIA HOME LOANS – PORTFOLIO OVERVIEW Portfolio1 Flow Portfolio1 1H22 1H23 1H24 1H23 1H24 1H22 1H23 1H24 Number of Home Loan accounts 984k 969k 950k 95k2 86k2 Average LVR at Origination9 70% 65% 66% Total FUM $278b $293b $314b $43b $43b Average Dynamic LVR (excl. offse
Slide 19: Australia & New Zealand 90+ Days Past Due (DPD)
ANZ 2024 Half Year Results AUSTRALIA & NEW ZEALAND 90+ DAYS PAST DUE (DPD) Consumer portfolio1 90+ DPD as a % of total portfolio balances 1.50 1.25 1.00 0.75 0.50 0.25 0.00 Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar 18 18 19 19 19 19 20 20 20 20 21 21
Slide 20: Australia Home Loans – Portfolio Resilience
ANZ 2024 Half 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 35% 36% 37% 30 26% 18% 15% 20 20% 9% 18% 26% 39% 10 21% Mar 22 Mar 23 Mar 24 0 Overdu
Slide 21: Commercial Property – Segments of Interest
ANZ 2024 Half Year Results COMMERCIAL PROPERTY – SEGMENTS OF INTEREST $1.9b International Outstandings by region, GLA $b Asia ex. China $1.6b Outstandings by sector, % China $0.2b Americas $0.0b Other $0.1b 9% 7% 6% 7% 6% 6% 7.6% 7.5% 7.6% 2% 2% 2% 7.3% 7.3% 2% 2% 7.0% 2% 54.9 18% 19% 18% 19% 19% 52
Slide 22: Commercial Property – Segments of Interest
ANZ 2024 Half Year Results COMMERCIAL PROPERTY – SEGMENTS OF INTEREST Commercial property collateral1,2, % Portfolio growth 79% of portfolio well secured • Predominately in Australia across a diversified portfolio of lending segments 44% Portfolio quality • ~80% of exposures well secured • Unsecured
Slide 23: Term Wholesale Funding Portfolio
ANZ 2024 Half Year Results TERM WHOLESALE FUNDING PORTFOLIO1 Issuance2, $b Maturities2,3, $b 404 32 32 24 25 26 22 22 21 17 16 15 16 13 9 8 1 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 1H24 2H24 FY25 FY26 FY27 FY28 FY29 FY30 FY31+ Senior Unsecured Covered Bonds Tier 2 RMBS TFF NZ FLP / TLF Portfolio by
Slide 24: Term Wholesale Funding Issuance
ANZ 2024 Half Year Results TERM WHOLESALE FUNDING ISSUANCE1 ANZ has access to a diverse range of wholesale funding A growing domestic market drives larger AUD benchmark deals Average AUD senior unsecured benchmark deal size2, $b • 1H24 term funding issuance of $21b, ahead of schedule with expected 5
Slide 25: Total Loss-Absorbing Capacity (TLAC) Profile
ANZ 2024 Half Year Results TOTAL LOSS-ABSORBING CAPACITY (TLAC) PROFILE1 ANZ is well placed to meet APRA’s final TLAC requirements Tier 2 capital, Notional amount % • Total regulatory capital ratio is 21.9% (~19.7% pro forma for Suncorp Bank acquisition and Share buyback). On an Internationally Comp
Slide 26: Australian TLAC in a Global Context
ANZ 2024 Half Year Results AUSTRALIAN TLAC IN A GLOBAL CONTEXT Australian banks’ Tier 2 relative value Australia Canada Scandinavia United Kingdom Netherlands France Singapore % RWA 165 155 150 150 150 150 140 140 135 135 135 135 130 130 130 130 130 130 125 125 125 120 103 103 105 35 30 A- A A- BBB+
Slide 27: Liquidity Coverage Ratio (LCR) Summary
ANZ 2024 Half Year Results LIQUIDITY COVERAGE RATIO (LCR) SUMMARY1 Movement in average LCR surplus2, $b LCR composition, Average 1H24 $b 282 Other LCR Liquids4 2H23 1H24 Avg LCR 132% Avg LCR 134% 11 211 -1 Wholesale funding 3 HQLA1 of which: 71 59% Central Bank Cash -1 35% FVOCI5 5% Mark to Market 6
Slide 28: ANZ Group Capital
ANZ 2024 Half Year Results ANZ GROUP CAPITAL ANZ Group Capital Composition, $b ANZ Bank Group Key Capital Ratios (%) Mar 23 Sep 23 Mar 24 95.8 CET1 Composition Level 2 CET1 capital ratio 13.2 13.3 13.5 90.6 91.9 82.8 0.7 Level 2 CET1 HoH mvmt +89 bps +16 bps +16 bps 0.2 Level 2 CET1 capital ratio ~1
Slide 29: Regulatory Capital
ANZ 2024 Half Year Results REGULATORY CAPITAL ANZ Bank Group Capital ● ANZ’s current Tier 2 ratio is 6.5% (i.e. at the final Tier 2 requirement of 6.5% of RWA by January 2026) ● Level 2 CET1 ratio of 13.5% (19.7% on an Internationally Comparable basis) or ● ANZ’s total capital ratio is 21.9% (~19.7%
Slide 30: Regulatory Capital – Risk Weighted Assets
ANZ 2024 Half Year Results REGULATORY CAPITAL – RISK WEIGHTED ASSETS Risk weighted assets – Level 2, $b Total Credit RWA decrease -$0.6b 6.8 0.0 1.0 433.3 431.6 3.0 432.8 -1.7 -5.7 -3.9 Sep 23 CRWA FX impacts Sep 23 Divisional Lending Risk Impacts Other CRWA Operational Market Risk & IRRBB IRB Floor
Slide 31: Internationally Comparable Regulatory Capital Position
ANZ 2024 Half Year Results INTERNATIONALLY COMPARABLE REGULATORY CAPITAL POSITION Level 2 capital ratio (APRA vs internationally comparable)1, % 29.1 29.8 30.7 7.2 7.6 8.5 20.6 21.0 21.9 2.5 2.5 2.5 5.5 5.8 6.5 1.9 1.9 1.9 19.4 19.7 19.7 13.2 13.3 13.5 APRA Int. Comparable APRA Int. Comparable APRA
Slide 32: Capital & Liquidity Framework
ANZ 2024 Half Year Results CAPITAL & LIQUIDITY FRAMEWORK1 CY2024 CY2025 CY2026 Implementation Date RBNZ Capital Framework Transition 2028 Fundamental Review of the Trading Book Consultation Implementation (TBC) 2026 (TBC) (incl. Counterparty Credit Risk) Interest Rate Risk in the Banking Book Consul
Slide 33: Balance Sheet Structure
ANZ 2024 Half Year Results BALANCE SHEET STRUCTURE1 Pro forma NSFR is ~117% once RSF benefit NSFR movement, % associated with TFF is removed Balance sheet composition, Mar 24 1.3 0.2 118.1 1.9 Offshore Short Term W’sale Debt 4% 116.3 -0.3 Domestic Short Term Wholesale Debt and -1.3 Liquid and Other
Slide 34: Capital & Replicating Deposits Portfolio
ANZ 2024 Half Year Results CAPITAL & REPLICATING DEPOSITS PORTFOLIO Australia, % Portfolio Earnings Rate is a combination of term swap Portfolio earnings rate, Average % 5 rates (hedged component) and 3mth BBSW (unhedged) Australia New Zealand 4 1H21 0.92% 1.09% 3 2H21 0.85% 0.99% 2 1H22 0.84% 1.13%
Slide 35: Australia & New Zealand Economic Forecasts
ANZ 2024 Half Year Results AUSTRALIA & NEW ZEALAND ECONOMIC FORECASTS 2019 2020 2021 2022 2023 2024F 2025F Australia – annual % growth GDP 1.9 -2.2 5.5 3.9 2.0 1.3 2.3 Australia - headline CPI (% y/y) 1.6 0.8 2.9 6.6 5.6 3.0 2.7 Australia - unemployment (% Q4 avg) 5.2 6.8 4.7 3.4 3.8 4.2 4.4 Austral
Slide 36: Global Economic Scorecard
ANZ 2024 Half Year Results GLOBAL ECONOMIC SCORECARD Category Australia United States Canada United Kingdom Euro Area New Zealand Annual GDP growth 1.50% 3.00% 0.80% -0.20% 0.40% -0.30% Annual CPI inflation 3.60% 3.50% 2.90% 3.20% 2.40% 4.00% Policy rate (cash rate) 4.35% 5.50% 5.00% 5.25% 4.50% 5.5
Slide 37: Economic Forecasts – Global Comparison
ANZ 2024 Half Year Results ECONOMIC FORECASTS – GLOBAL COMPARISON 2022 2023 2024F 2025F GDP (% y/y) Australia 3.9 2.0 1.3 2.3 New Zealand 2.4 0.7 0.5 1.5 United States 1.9 2.5 2.3 1.5 Euro area 3.4 0.9 0.5 1.7 CPI (% y/y) Australia 6.6 5.6 3.0 2.7 New Zealand 7.2 5.7 3.1 2.0 United States 8.0 4.1 2.
Slide 38: Australian Economy – Snapshot
ANZ 2024 Half Year Results AUSTRALIAN ECONOMY – SNAPSHOT GDP growth1 CPI inflation1 TBU TBU Unemployment and underemployment1 Annual population change2 % of labour force Thousands 700 Total growth 600 Net overseas migration 500 400 TBU 300 200 100 Natural increase 0 -100 Sep Sep Sep Sep Sep Sep Sep
Slide 39: Additional Financials
ANZ 2024 HALF YEAR RESULTS ADDITIONAL FINANCIALS
Slide 40: Balance Sheet Composition
ANZ 2024 Half Year Results BALANCE SHEET COMPOSITION Exposure At Default1, EOP $b Risk Weighted Assets, EOP $b Net Loans & Advances, EOP $b Customer Deposits, EOP $b 1,193 455 707 715 649 647 641 1,152 1,163 1,151 690 0% 620 1% 1% 2% 436 433 433 672 0% 0% 8% 6% 0% 1% 7% 6% 4% 3% 4% 0% 13% 17% 17% 15
Slide 41: Net Loans and Advances
ANZ 2024 Half Year Results NET LOANS AND ADVANCES Australia Retail, $b Australia Commercial, $b New Zealand, NZDb Institutional, $b +3% +4% +1% -2% 312 322 64 133 208 210 62 131 207 206 301 6 60 60 0 129 128 290 6 1 21 19 20 18 6 2 1 24 6 25 25 26 22 2 41 45 21 2 1 1 41 45 20 20 306 316 284 295 101
Slide 42: Customer Deposits
ANZ 2024 Half Year Results CUSTOMER DEPOSITS Australia Retail, $b Australia Commercial, $b New Zealand, NZDb Institutional, $b +5% +2% +3% -6% 172 116 109 278 165 112 113 113 104 105 106 263 1 266 156 2 1 249 150 1 47 21 27 33 45 30 44 38 42 46 49 128 43 106 113 98 33 37 16 27 61 22 57 57 57 22 38 2
Slide 43: Australia Retail – Financial Strength
ANZ 2024 Half Year Results AUSTRALIA RETAIL – FINANCIAL STRENGTH Balance sheet Exposures Credit quality Net Loans and Advances (NLA), $b Exposure at Default & Risk Weighted Assets, $b Total Provision Charge/(Release), $m 301 312 322 6 6 6 354 362 82 341 32 53 43 295 306 316 50 48 118 128 130 49 5 -6
Slide 44: Growing ANZ Plus Customers, Deepening Engagement
ANZ 2024 Half Year Results GROWING ANZ PLUS CUSTOMERS, DEEPENING ENGAGEMENT ANZ Plus customers and deposits, cumulative Customers, ‘000s Deposits, $b 700 14 600 12 500 10 400 8 300 6 200 4 100 2 0 0 Sep 22 Dec 22 Mar 23 Jun 23 Sep 23 Dec 23 Mar 24 Total deposits Customers A diverse customer base Up
Slide 45: Growing ANZ Plus Customers, Deepening Engagement
ANZ 2024 Half Year Results GROWING ANZ PLUS CUSTOMERS, DEEPENING ENGAGEMENT More attractive More efficient Cost to acquire3 Cost to serve3 New to bank customers1 45% lower 51% -3% than ANZ 30% lower 45% -16% 35% than ANZ Mar 23 Sep 23 Mar 24 Sep 23 Mar 24 Sep 23 Mar 24 More engaging More secure Cust
Slide 46: Australia Commercial – Financial Strength
ANZ 2024 Half Year Results AUSTRALIA COMMERCIAL – FINANCIAL STRENGTH Balance sheet Exposures Credit quality Net Loans and Advances1 (NLA), $b Exposure at Default & Risk Weighted Assets, $b Total Provision Charge, $m 64 61 75 59 71 73 66 47 47 47 9 41 35 57 33 26 8 9 Mar 23 Sep 23 Mar 24 Mar 23 Sep 2
Slide 47: New Zealand Division – Financial Strength
ANZ 2024 Half Year Results NEW ZEALAND DIVISION – FINANCIAL STRENGTH Balance sheet Exposures1,3 Credit quality Net Loans and Advances (NLA) , NZDb Exposure at Default & Risk Weighted Assets, Total Provision Charge, NZDm 133 NZDb 128 131 149 151 153 82 10 77 76 73 40 72 19 4 21 14 -10 Mar 23 Sep 23 M
Slide 48: New Zealand Division – Balance Sheet
ANZ 2024 Half Year Results NEW ZEALAND DIVISION – BALANCE SHEET Housing 1 Business2 Agri ANZ Performance, NZDb ANZ Performance, NZDb ANZ Performance, NZDb 150 10 20 104.6 107.3 109.5 7.3 6.9 6.6 15.1 15.1 15.0 100 5 10 50 0 0 0 Mar 23 Sep 23 Mar 24 Mar 23 Sep 23 Mar 24 Mar 23 Sep 23 Mar 24 Owner Occ
Slide 49: Institutional – Summary
ANZ 2024 Half Year Results INSTITUTIONAL – SUMMARY Customer Franchise Revenue1, $m Risk Adjusted NIM2,3, bps Transactional Deposits & Payments Operational / At-call Deposit NIM # of Digital 3,052 3,226 236 3,003 194 227 Deposits ($b) (bps) Payments Processed (m) 152 2,400 1,613 1,584 1,794 107 87 34
Slide 50: Institutional – Financial Strength
ANZ 2024 Half Year Results INSTITUTIONAL – FINANCIAL STRENGTH Balance sheet Exposures Credit quality Net Loans and Advances (NLA), $b Exposure at Default1 & Risk Weighted Assets, $b Total Provision Charge, $m 208 210 206 541 529 508 30 43 5 -36 -49 183 175 171 -79 -6 -6 -74 Mar 23 Sep 23 Mar 24 Mar
Slide 51: Institutional – Income
ANZ 2024 Half Year Results INSTITUTIONAL – INCOME Income composition by product1, $m Income composition by region, $m 3,569 3,569 3,444 3,444 3,290 3,290 1,212 1,149 958 1,395 1,390 1,201 9 862 922 916 481 501 485 243 238 242 1,569 1,608 1,673 1,196 1,180 1,190 -6 -8 1H23 2H23 1H24 1H23 2H23 1H24 Co
Slide 52: Institutional – Markets Income Composition
ANZ 2024 Half Year Results INSTITUTIONAL – MARKETS INCOME COMPOSITION Markets Income composition, $m Markets avg. Value at Risk (99% VaR), $m 1,490 • Traded VaR increased slightly due to a modest increase in risk positioning. 131 • Non-Traded VaR increased as the volume and tenor in Liquidity portfo
Slide 53: Payments & Cash Management
ANZ 2024 Half Year Results PAYMENTS & CASH MANAGEMENT PCM Deposit Volumes & Margins1 Change vs PCM Deposit Volumes & Rate Sensitivity, $b Balance, $b pre-pandemic 1H24 vs 2H19 $150b 153 149 152 150 37 11% 102 46 46 43 29% Term Deposits 31 Volumes 11% 116 103 106 107 Operational / At-call (AUPNG) 71
Slide 54: Digital Platforms – Scalable Operating Leverage, Capital Light
ANZ 2024 Half Year Results DIGITAL PLATFORMS – SCALABLE OPERATING LEVERAGE, CAPITAL LIGHT Payments1 Direct Integration Payments1,2 Real Time Payments1,2 Client Monies m m NPP Agency, m Platform Cash Mgt. Accounts3, k +11% 76 231 312 411 400 +7% +20% Deposit Balance4, $b +2% 341 138 320 124 24 295 20
Slide 55: Asset Quality
ANZ 2024 HALF YEAR RESULTS INVESTOR DISCUSSION PACK ASSET QUALITY
Slide 56: Individual Provision (IP) Charge
ANZ 2024 Half Year Results INDIVIDUAL PROVISION (IP) CHARGE Individual Provision charge / (release), $m Individual Provision charge by division1, $m 626 626 395 395 807 187 500 69 87 375 -8 -30 123 266 38 187 247 168 201 217 164 123 175 69 87 38 93 80 103 54 51 37 -30 36 22 -8 -116 -163 -274 -280 -2
Slide 57: Collective Provision (CP) Charge & Balance
ANZ 2024 Half Year Results COLLECTIVE PROVISION (CP) CHARGE & BALANCE Collective Provision charge, $m Collective Provision balance, $m 1.39% 1.25% 1.22% 1.17% 1.17% 1.16% 1.16% 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24 1.08% 1.07% 5,008 Collective 1,048 669 -678 -145 -371 60 163 -11 32 4,501 Prov
Slide 58: Collective Provision (CP) Balance
ANZ 2024 Half Year Results COLLECTIVE PROVISION (CP) BALANCE Collective Provision balance by division, $b Provision balance by stage, $b Mar 20 Sep 20 Mar 21 Sep 21 Mar 22 Sep 22 Mar 23 Sep 23 Mar 24 March 2023 March 2024 Aus. Retail 1.18 1.42 1.11 1.07 0.91 0.90 0.95 0.95 0.95 Aus. Commercial 1.14
Slide 59: Impaired Assets
ANZ 2024 Half Year Results IMPAIRED ASSETS Control list, Index Sep 16=100 New impaired assets by division, $m 150 2,000 1,570 100 1,500 1,121 1,000 829 639 599 538 630 50 500 0 0 Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Mar 20 Mar 21 Mar 22 Sep 22 Mar 23 Sep 23 Mar 24 16 17 17
Slide 60: Total Portfolio Composition
ANZ 2024 Half Year Results TOTAL PORTFOLIO COMPOSITION Gross Exposure at Default (EAD) distribution Category % of Group EAD 1 % of Impaired Assets Impaired to EAD1 Assets2 Mar 23 Sep 23 Mar 24 Mar 23 Sep 23 Mar 24 Mar 24 4.1% 1.0% Consumer Lending 38.3% 40.3% 41.4% 0.1% 0.1% 0.2% 716 5.7% 1.3% Finan
Slide 61: ANZ Institutional Portfolio
ANZ 2024 Half Year Results ANZ INSTITUTIONAL PORTFOLIO Size & tenor by market of incorporation, EAD $b Mar 241 Industry composition, EAD Finance, Investment & Insurance 14% Government & Official Institutions 508 2% Commercial Property 3% Manufacturing 4% 42% A$508b¹ Wholesale Trade 8% Mar 24 Electri
Slide 62: ANZ Asia Institutional Portfolio
ANZ 2024 Half Year Results ANZ ASIA INSTITUTIONAL PORTFOLIO Market of incorporation, EAD ANZ Asia industry composition, EAD Finance, Investment & Insurance 3% 1% 7% 5% Manufacturing 18% 2% 8% 2% 2% Wholesale Trade China South Korea 4% 2% 5% Government & Official Institutions 7% A$114b¹ Japan India A
Slide 63: ANZ China Institutional Portfolio
ANZ 2024 Half Year Results ANZ CHINA INSTITUTIONAL PORTFOLIO (SUBSET OF ANZ ASIA PORTFOLIO) EAD (MAR-24): A$21.5B – 1.9% OF GROUP EAD ANZ China industry composition, EAD ANZ China portfolio composition, EAD 13% 12% 12% 11% 9% 1% Finance and Insurance 20% 17% 5% 27% 29% 22% 2% Manufacturing 7% 4% Who
Slide 64: Housing
ANZ 2024 HALF YEAR RESULTS INVESTOR DISCUSSIO N PACK HOUSING
Slide 65: Australia Home Loans – Portfolio Composition
ANZ 2024 Half Year Results AUSTRALIA HOME LOANS – PORTFOLIO COMPOSITION Home Loan balance composition1,2, $b Home Loan balance & lending flows1,4, $b 314 304 3 24 293 45 12 283 3 25 314 278 278 3 25 293 4 3 -59 5 4 24 3 21 22 23 3 5 4 3 71 68 65 62 62 63 Mar-23 New Sales Net OFI Refi. Redraw & Repay
Slide 66: Australia Home Loans – Portfolio Composition & Flow
ANZ 2024 Half Year Results AUSTRALIA HOME LOANS – PORTFOLIO COMPOSITION & FLOW By Purpose, % of total balances LVR profile5, % of total balances Portfolio 1,2 Flow3 Dynamic LVR – Portfolio 1,6 Origination LVR - Flow3 11% 2% 1% 1% 0% 0% 0% 12% 16% 20% 16% 19% 30% 31% 31% 35% 33% 37% 1% 1% 17% 21% 21%
Slide 67: Australia Home Loans – Portfolio Resilience
ANZ 2024 Half Year Results AUSTRALIA HOME LOANS – PORTFOLIO RESILIENCE Fixed rate Home Loan expiry profile, $b ANZ flow borrowing capacity1, 1H24 23 20 9% 3% 18 Surplus Capacity Minimal Capacity 12 At Capacity 7 88% 5 30+ DPD at March 24 by fixed rate expiry month 1H23 2H23 1H24 2H24 1H25 >1H25 The
Slide 68: Australia Home Loans – Portfolio Performance
ANZ 2024 Half Year Results AUSTRALIA HOME LOANS – PORTFOLIO PERFORMANCE Home Loans 90+ DPD (by State)1,2 Home Loans delinquencies1,2,3,4 % of Portfolio Segment Balances % of Portfolio Segment Balances 2.4 2.5 2.0 2.2 1.5 1.0 2.0 0.5 1.8 0.0 Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar 1.6 19 20 20 21 21
Slide 69: Australia Home Loans – Book Originated and Attributes
ANZ 2024 Half Year Results AUSTRALIA HOME LOANS – BOOK ORIGINATED AND ATTRIBUTES Home Loans portfolio, Mar 24 ANZ interest rate buffer & floor Total Portfolio ($b) Home loan applications are assessed at the greater of 314 the customer interest rate plus the interest rate buffer or With the rising ra
Slide 70: New Zealand Home Loans – Portfolio Overview
ANZ 2024 Half Year Results NEW ZEALAND HOME LOANS – PORTFOLIO OVERVIEW Portfolio Flow Portfolio 1H22 1H23 1H24 1H23 1H24 1H22 1H23 1H24 Number of Home Loan Accounts 540k 538k 552k 23k 27k Average LVR at Origination 56% 54% 56% Total FUM NZD103b NZD105b NZD109b NZD8b NZD10b Average Dynamic LVR 35% 39
Slide 71: New Zealand Loans – Home Lending & Arrears Trends
ANZ 2024 Half Year Results NEW ZEALAND LOANS – HOME LENDING & ARREARS TRENDS Home Loan LVR profile1 Housing flows Housing portfolio 2% 2% 5% 4% 11% 11% 11% 7% 7% 7% 55% 57% 61% 12% 11% 13% 89% 89% 89% 45% 43% 39% 15% 15% 1H22 1H23 1H24 Mar 22 Mar 23 Mar 24 Proprietary Broker Fixed Variable 77% Housi
Slide 72: Environment, Social & Governance (ESG)
ANZ 2024 HALF YEAR RESULTS INVESTOR DISCUSSION PACK ENVIRONMENT, SOCIAL & GOVERNANCE (ESG)
Slide 73: Enhanced Customer Engagement and Policy
ANZ 2024 Half Year Results ENHANCED CUSTOMER ENGAGEMENT AND POLICY Focusing where we can make the most impact Our enhanced oil and gas (O&G) policy • A new phase of customer engagement in 2024 (in place from 1 October 2023), • We have been clear that we want to support our oil and gas customers who
Slide 74: 100 of Our Largest Emitting Business Customers
ANZ 2024 Half Year Results 100 OF OUR LARGEST EMITTING BUSINESS CUSTOMERS We have four transition plan categories under our upgraded assessment We consider a robust low carbon transition plan has three key elements framework to be applied from 2024 Governance A framework outlining Board and senior m
Slide 75: Backing the Transition Through Financing Sustainability
ANZ 2024 Half Year Results BACKING THE TRANSITION THROUGH FINANCING SUSTAINABILITY ANZ is supporting our customers through labelled and other financing products and services Sustainable Finance • ANZ’s Sustainable Finance team is helping our customers by encouraging them to identify climate and natu
Slide 76: Portfolio Emissions Pathways - Performance Dashboard
ANZ 2024 Half Year Results PORTFOLIO EMISSIONS PATHWAYS - PERFORMANCE DASHBOARD New New New New 1. We have restated this target due to an error. We previously stated that our 2030 emissions intensity target for aviation required a 30% reduction from our 2019 baseline whereas, in fact, it only requir
Slide 77: Portfolio Emissions Pathways - Performance Dashboard
ANZ 2024 Half Year Results PORTFOLIO EMISSIONS PATHWAYS - PERFORMANCE DASHBOARD 76
Slide 78: Our Resources Portfolio
ANZ 2024 Half Year Results OUR RESOURCES PORTFOLIO Resources Portfolio, EAD1 $b Thermal Coal Mining, EAD1 $b 2.0 20.0 1.5 1.7 1.0 0.6 17.3 17.0 1.3 16.2 0.8 0.5 0.5 15.3 0.7 0.8 1.2 1.0 14.5 0.0 2.9 0.4 0.7 0.9 Sep Sep Sep Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar 14.0 0.7 0.2 0.5 1.1 1.5 1.2
Slide 79: Important Information – Climate-Related Information
ANZ 2024 Half Year Results IMPORTANT INFORMATION – CLIMATE-RELATED INFORMATION This presentation may contain climate-related statements, including in relation to climate-related risks and opportunities, climate-related goals and ambitions, climate scenarios, emissions reduction pathways and climate
Slide 80: Economics
ANZ 2024 HALF YEAR RESULTS INVESTOR DISCUSSION PACK ECONOMICS
Slide 81: Australian Economy – Economic Growth
ANZ 2024 Half Year Results AUSTRALIAN ECONOMY – ECONOMIC GROWTH RBA GDP growth forecast* 1 Nominal Australian retail sales2 and Consumer Confidence3 Year ended 30 % change 140 20 130 TBU 10 120 110 Total Retail, m/m (LHS) 0 100 Total Retail, y/y (LHS) Consumer Confidence (RHS) 90 -10 80 -20 70 *Conf
Slide 82: Australian Economy – Income and Savings
ANZ 2024 Half Year Results AUSTRALIAN ECONOMY – INCOME AND SAVINGS Household disposable income growth1 Household Savings Indicators2 Real, year-ended with contributions Statement of Mon TBU Statement policy- Aug 22 of Mon Policy May 23 TBU * Share of disposable income. Latest observations are Decemb
Slide 83: Australian Economy – Inflation
ANZ 2024 Half Year Results AUSTRALIAN ECONOMY – INFLATION CPI inflation1 Rent inflation1 Year-ended, with contributions TBU * Includes market services and administered items; excludes utilities, rents and holiday travel & accommodation. ** Includes groceries, alcohol & tobacco, consumer durables and
Slide 84: Commodities
ANZ 2024 Half Year Results COMMODITIES RBA index of commodity prices1 Resource exports1 SDR, 2022/23 average = 100, log scale Log scale, quarterly TBU Chart Pack TBU Bulk commodity prices1 Terms of trade*, 1 Free on board basis 2021/22 average = 100, log scale TBU TBU 83 Sources: 1. RBA Chart Pack,
Slide 85: Monetary and Fiscal Policy
ANZ 2024 Half Year Results MONETARY AND FISCAL POLICY Australian government budget balance1 Policy rate change this cycle % of nominal GDP TBU Budget balance Government debt 84 Sources: 1. RBA Chart Pack, May 2024
Slide 86: Australian Housing Dynamics
ANZ 2024 Half Year Results AUSTRALIAN HOUSING DYNAMICS Housing price forecasts by capital city1 House price growth2 % y/y, calendar year % 6 Month Change Year on Year Change 5 Year Cumulative Change Apr-24 Total Houses Units Total Houses Units Total Houses Units Adelaide 6.7 6.4 8.7 14 13.9 14.5 61.
Slide 87: New Zealand Housing Dynamics
ANZ 2024 Half Year Results NEW ZEALAND HOUSING DYNAMICS NZ Residential Mortgage Rate Monthly House Price Index 9 4500 8 4000 7 6 TBU 3500 5 3000 Index % 4 2500 3 2000 2 1500 1 0 1000 11 12 13 14 15 16 17 18 19 20 21 22 23 24 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Variable 2 year 5 year Official C
Slide 88: Key Contacts
ANZ 2024 Half Year Results KEY CONTACTS ANZ Debt Investors Centre Key Contacts Adrian Went David Goode Steve Aquilina Group Treasurer Head of Debt Investor Relations Associate Director +61 3 8654 5532 Debt Investor Relations +61 412 027 151 +61 410 495 399 +61 447 744 542 Adrian.Went@anz.com David.G
ANZ Group Holdings — Debt Investor Presentation (May 2024) on 6ix