Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — FY2010 Earnings Presentation
87 slides from Anz's earnings presentation, Oct 28, 2010
Slide 1: Full Year Results 2010: Results Presentation & Investor Discussion Pack
For personal use only 10 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 28 October 2010 Results Presentation & Investor Discussion Pack
Slide 2: Mike Smith, Chief Executive Officer
For personal use only 10 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 28 October 2010 Mike Smith Chief Executive Officer
Slide 3: The only Australian bank with material exposure to Asian growth
The only Australian bank to give shareholders a material exposure to Asian growth For personal use only 3
Slide 4: Overview of financial performance
Overview of financial performance For personal use only 2010 2H10 Consolidated Group performance A$m Growth Growth Underlying performance Revenue 15,782 +10% + 9% Expense 6,971 +15% +15% Profit before provisions 8,811 +6% +4% Provisions 1,820 -40% -34% Net Profit After Tax 5,025 +33% +19% Underlying
Slide 5: Overview of regional performance - Australia
Overview of regional performance - Australia For personal use only 2010 Underlying Profit growth Underlying earnings as a % of Group FY10 2H10 AUSTRALIA 72% growth growth Australia Region 42% 15% Leader in customer satisfaction APEA Region1 amongst the major Aus. banks3 21% 22% (USD) 85 % satisfied
Slide 6: Overview of regional performance – Asia Pacific, Europe & America
Overview of regional performance – Asia Pacific, Europe & America For personal use only 2010 Underlying Profit growth Underlying earnings as a % of Group FY10 2H10 APEA 14% growth growth Australia Region 42% 15% Strong loan deposit growth from APEA Region1 organic business and RBS acquisition 21% 22
Slide 7: Overview of Institutional performance
Overview of Institutional performance For personal use only 2010 Underlying Profit growth Institutional Customer income3 5.0 AUDb 4.0 FY10 2H10 3.0 growth growth 2.0 1.0 0.0 Australia Region 42% 15% 2008 2009 2010 Customer Income ex-Markets APEA Region1 Markets Sales Income 21% 22% (USD) Cross Borde
Slide 8: Overview of regional performance – New Zealand
Overview of regional performance – New Zealand For personal use only 2010 Underlying Profit growth Underlying earnings as a % of Group FY10 2H10 NEW ZEALAND 14% growth growth Australia Region 42% 15% Number 1 market share position APEA Region1 (% of market share)3 21% 22% (USD) 39% 39% New Zealand R
Slide 9: Improving balance sheet mix and funding position
Improving balance sheet mix and funding position For personal use only Deposit growth exceeding Funding profile loan growth A$b % 400 180 Short Term W‟sale 12% Thousands 22% 17% Term Debt < 1 year 350 170 6% 5% Residual Maturity 300 160 7% 16% Term Debt >1yr 15% Residual Maturity 14% 250 150 200 140
Slide 10: Australia remains strong, some challenges ahead
Australia remains strong, some challenges ahead For personal use only Annual GDP growth (%) Annual % growth 12 10 8 6 4 2 0 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 -2 -4 -6 Australia US UK East Asia ex-Japan -8 Source: ANZ Economics 10
Slide 11: 2010 results - putting the runs on the board
2010 results - putting the runs on the board For personal use only Underlying profit1 Underlying earnings as a % of Group A$b 5,025 3,924 3,772 3,587 3,426 APEA 14% AUSTRALIA 72% 2006 2007 2008 2009 2010 NEW ZEALAND 14% 1. For 2008 to 2010, Underlying profit measure. For 2006 and 2007 Cash profit me
Slide 12: Peter Marriott, Chief Financial Officer
For personal use only 10 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 28 October 2010 Peter Marriott Chief Financial Officer
Slide 13: Solid pre provision earnings, lower provisions and acquisition benefits delivering 33% NPAT growth
Solid pre provision earnings, lower provisions and acquisition benefits delivering 33% NPAT growth For personal use only 2010 Full Year Includes 480m of acquisition impacts Underlying EPS Up 18% 1,191 459 AUD m 148 151 5,025 524 4,501 518 829 3,772 down 40% -4% and +4% offsetting impact on up 6% 33%
Slide 14: Pro Forma data adjusts for acquisitions and FX
Pro Forma data adjusts for acquisitions and FX, showing good revenue growth and continuing momentum For personal use only Revenue Expense Profit before Net profit growth growth provisions after tax 2010 Full Year 33% 35% 15% 10% 8% 7% 6% 7% Underlying Pro Forma Underlying Pro Forma Underlying Pro Fo
Slide 15: Growth largely in Net Interest, Partnerships & Wealth income
Growth largely in Net Interest, Partnerships & Wealth income partly offset by lower markets income and fees For personal use only Pro Forma revenue growth Markets income Lower relative to exceptional 2009, positive longer term trend Net interest1 11% A$m CAGR 29% 1200 6% 1000 800 Fee income1 600 (2%
Slide 16: NIM improved year on year with repricing for business risk
NIM improved year on year with repricing for business risk, slowing in 2H10 and continued funding pressure For personal use only 2010 Full Year NIM Basis points 4.3 (12.3) 36.6 14.4 247.4 231.3 (10.8) (16.1) Group ex Markets +28.4 bps Group +16.1 bps 2009 Funding Funding Deposits Assets Other Market
Slide 17: Expense trend reflective of substantial investment
Expense trend reflective of substantial investment and a focus on delivering sustainable revenue outcomes For personal use only Revenue / Expense “Jaws” Expense growth Avg Revenue growth 11% 15% 15% Avg Expense growth 9% Acquisitions & FX 17% Group 13% Ex 7% Markets1 New Zealand 10% 12% 11% Ex Austr
Slide 18: Improved provision & new impaired asset trends
Improved provision & new impaired asset trends predominantly in the Institutional business For personal use only Total Provision Charge New & Increased Impaired (IP charge by Division and total CP charge) Assets by Division 1,800 A$m 4,000 A$m 1,600 3,500 3,126 1,400 3,000 1,200 1,098 2,500 2,319 1,
Slide 19: Divisional performance
Divisional performance For personal use only 2010 Divisional Profit Before Provisions (Pro Forma basis) 2010 2H10 growth AUD m Australia 4,003 457 4,460 11% 2% Institutional 3,291 (118) 3,173 (4%)1 (1%) NZD m NZ Businesses 1,317 26 1,343 2% 8% USD m 902 13 915 1% (3%) APEA 2010 Divisional Net Profit
Slide 20: Summary
Summary For personal use only Group margin ex Markets1 Investing in the franchise Cost growth 2.56% 2.71% 2.79% 2.31% 2.38% 0.3% % (HoH) 7% 6% 0.2% 5% 4% 4% 0.1% 0.0% 2H08 1H09 2H09 1H10 2H10 2H08 1H09 2H09 1H10 2H10 NIM movement HOH (RHS) Net Loans and Advances2 growth Total provision charge and CP
Slide 21: Investor Discussion Pack: Additional Financial Information
For personal use only 10 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 28 October 2010 Investor Discussion pack Additional Financial Information
Slide 22: Statutory profit to underlying profit reconciliation
Statutory profit to underlying profit reconciliation For personal use only A$m 122 (2) (74) (2) 5,025 480 $m ING step acquisition valuation adjustment: 185 4,501 Adjustment to write-off for previous equity 32 accounted debit available-for-sale reserves integration and transaction costs relating 231
Slide 23: Pro Forma profit introduced to normalise for acquisitions and FX
Pro Forma profit introduced to normalise for the impact of acquisitions and FX For personal use only 440 327 A$m 55 17 5,066 1,161 880 1,259 72 67 148 3,772 3,766 2009 Pro Forma adjustments 2010 Pro Forma adjustments Up 35% 2009 Rev. Exp. Prov. Tax FX 2009 2010 Rev. Exp. Prov. Tax / 2010 underlying
Slide 24: Underlying profit performance
Underlying profit performance For personal use only A$m Underlying NPAT growth: 33% 1,236 495 443 903 5,025 972 3,924 3,772 3,426 10% 10% 15% (40%) 33% 10% 2007 2008 2009 NII Other Exp. Provisions Tax 2010 Income 24
Slide 25: Investor Discussion Pack: Additional Financial Information
For personal use only 10 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 28 October 2010 Investor Discussion Pack Additional Financial Information
Slide 26: NIM Movement Summary
NIM Movement Summary For personal use only Group Geographies Divisions Basis points (bps) Australia New Zealand Global Australia NZ Division Businesses Institutional YOY HOH YOY HOH YOY HOH YOY HOH YOY HOH YOY HOH Starting NIM 231 245 238 260 218 220 253 264 220 221 209 211 Funding & 14 (2) 17 (2) 5
Slide 27: NIM movement – FY10 vs FY09
NIM movement – FY10 vs FY09 For personal use only bps 4.3 (12.3) 36.6 14.4 247.4 231.3 (10.8) (16.1) Ex-markets Up 28.4 bps Up 16.1 bps FY09 Funding & Funding Deposits Assets Other Markets FY10 Asset Mix Costs Key Drivers of Movement Funding mix benefit from higher capital and reduced reliance on wh
Slide 28: NIM movement – 2H10 vs 1H10
NIM movement – 2H10 vs 1H10 For personal use only bps 5.0 249.7 245.0 13.6 (3.7) (1.7) (2.6) Ex-markets Up 8.4 bps (5.9) Up 4.7 bps 1H10 Funding & Funding Deposits Assets Other Markets 2H10 Asset Mix Costs Key Drivers of Movement Reduced free fund benefit from non interest bearing deposits. Lower pr
Slide 29: Australia Division
Australia Division For personal use only NIM Movement FY10 vs FY09 bps 2.2 Key Drivers 259.5 20.6 252.7 0.3 FY10 vs FY09 (1.9) • Flow on impact of prior period asset repricing measures undertaken. (14.4) • Largely offset by a higher cost of deposit Up 6.8 bps funding through: More intense competit
Slide 30: New Zealand Businesses
New Zealand Businesses For personal use only NIM Movement FY10 vs FY09 Key Drivers bps 62.5 FY10 vs FY09 230.2 220.2 3.6 (31.6) (2.1) • Increase driven by impact of asset repricing (22.4) across all businesses and continued reduction Up 10.0 bps in proportion of fixed rate mortgages • Increase large
Slide 31: Global Institutional
Global Institutional For personal use only NIM Movement FY10 vs FY09 bps 10.0 Key Drivers 55.9 FY10 vs FY09 17.5 208.7 212.4 • Increase ex-markets largely driven by flow on (19.8) (52.4) impact of repricing measures undertaken since (7.5) late 2009 Ex-markets up 56.1 bps • Positive funding mix large
Slide 32: Investor Discussion Pack: Treasury
For personal use only 10 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 28 October 2010 Investor Discussion Pack Treasury
Slide 33: ANZ's strong capital ratios measured across jurisdictions
ANZ’s strong capital ratios are fully reflected when measured consistently across various jurisdictions For personal use only Sep 09 Mar 10 Sep 10 FSA Sep 10 Core Tier 1(1) 9.0% 8.5% 8.0% 11.3% Tier 1 10.6% 10.7% 10.1% 13.5% Total Capital 13.7% 13.0% 11.9% 15.2% Capital Update: Capital Agenda: • ANZ
Slide 34: Core Tier-1 level remains strong
Core Tier-1 level remains strong and well positioned For personal use only Capital Position (Core Tier-1 Ratio) 11.25 1.99 0.80 8.96 0.39 0.46 8.05 Portfolio growth & mix 19bp decrease 1.25 Risk migration 3bp increase Portfolio data review 4bp increase ING 79bp decrease Non credit RWA 27bp decrease
Slide 35: Tier-1 position reduced during FY10
Tier-1 position reduced during FY10 due to recent acquisitions partially offset by Hybrid issuance For personal use only Capital Position (Tier-1 Ratio) 13.54 1.99 0.63 0.80 10.56 0.48 0.49 10.10 1.31 Portfolio growth & mix 23bp decrease Risk migration 4bp increase Portfolio data review 5bp increase
Slide 36: Reconciliation of ANZ's capital position to FSA Basel guidelines
Reconciliation of ANZ’s capital position to FSA Basel 2 guidelines For personal use only APRA regulations are more conservative than current FSA regulations, in that APRA requires: • A 20% Loss Given Default floor for mortgages (FSA: 10% floor) • Interest Rate Risk in the Banking Book (IRRBB) includ
Slide 37: Basel & APRA Regulatory reform - Capital
Basel 3 & APRA Regulatory reform - Capital For personal use only Basel Committee Announcements What remains outstanding under B3 ? To date, the Basel Committee has announced: • Methodology for determining countercyclical buffer • New capital targets and buffers • Final requirements for Tier-1 & 2 in
Slide 38: Improved funding profile achieved, stable term debt issuance
Improved funding profile achieved, stable term debt issuance For personal use only Stable term funding profile Key Funding Metrics • 82% of all funded assets financed by equity, deposits & Senior Debt Government Guaranteed LT debt (was 78% as at Sep „09 & 71% Sep „08) Subordinated Debt • $26.4b of t
Slide 39: ANZ's term debt issuance consistent and well diversified
ANZ’s term debt issuance consistent and well diversified For personal use only Marginal term funding costs have APEA funding benefit reduces stabilised but average costs continue term debt issuance by ~10% to increase as portfolio reprices APEA surplus +bps deposits margin Domestic AUD/NZD 140 Offsh
Slide 40: Strong Liquidity Position leading into proposed B3 changes
Strong Liquidity Position leading into proposed B3 changes For personal use only Basel III Liquidity Developments Maintaining post GFC liquidity • Reduction in required core funding of position ($b) mortgages from 100% to 65% • Improved treatment of „Retail‟ and „SME‟ deposits • Allowance for „opera
Slide 41: AUD strength presents a headwind for future earnings
AUD strength presents a headwind for future earnings For personal use only • ~1.25% negative impact, including current hedging positions, on FY11 EPS growth expected if the AUD maintains current levels • NZD remains the most significant single currency revenue exposure • USD and Asian local currency
Slide 42: Investor Discussion Pack: Risk
For personal use only 10 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 28 October 2010 Investor Discussion Pack Risk
Slide 43: Individual Provision Charge
Individual Provision Charge For personal use only Individual Provision (IP) Charge by IP Charge Movement Composition Segment A$m A$m 1,600 1,600 1,531 1,200 800 400 1,283 0 1,200 -400 1,062 2H08 1H09 2H09 1H10 2H10 894 New Increased Writebacks & Recoveries 800 762 IP Charge by Region A$m 1,600 400 1
Slide 44: Collective Provision Charge
Collective Provision Charge For personal use only Collective Provision Charge by Division FY10 Total Risk Impacts Cycle & (A$m) Charge Lending & migration Concentration Mix Group Total (4) 62 (68) 29 (26) 58 12 Australia Division 10 (11) (49) 11 60 1 New Zealand Businesses 48 (24) 29 16 Institutiona
Slide 45: Credit Risk Weighted Assets
Credit Risk Weighted Assets For personal use only Total Credit Risk Weighted Assets Credit RWA Movement FY10 vs FY09 A$b A$b 257.8 250.8 5.8 (1.3) (6.2) 6.9 (1.5) 233.5 233.5 229.8 229.8 220.4 Acquisitions Impact: RBS $4.6b Landmark $2.3b Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Sep 09 Acq. Growth Data FX
Slide 46: Impaired Asset balance has reduced ex-acquisitions
Impaired Asset balance has reduced ex-acquisitions For personal use only Gross Impaired Assets Gross Impaired Assets By type By size of exposure Impaired Loans ex-acquisitions A$m > $100m $10-$99m < $10m NPCCD 8,000 Restructured A$m Acquisitions 6,000 8,000 4,000 7,000 2,000 6,000 0 Sep 08 Mar 09 Se
Slide 47: Watch & Control Lists and Risk Grade Profiles
Watch & Control Lists and Risk Grade Profiles For personal use only Watch & Control List by limits Group Risk Grade profile by (Mar 2009 Watch List index =100) Exposure at Default Index -150 -100 -50 0 50 100 150 5.7% 6.3% 6.4% 6.4% Mar 09 8.9% 8.8% 9.4% 8.9% Jun 09 Sep 09 13.0% 12.6% 13.0% 12.5% De
Slide 48: Commercial Industry Exposures
Commercial Industry Exposures For personal use only A$b Finance & Insurance A$b Property Services1 75 15% 75 15% 50 10% 50 10% 25 5% 25 5% 0 0% 0 0% Sep-09 Mar-10 Sep-10 Sep-09 Mar-10 Sep-10 Agriculture, Forestry & Fishing Manufacturing 75 15% 75 15% 50 10% 50 10% 25 5% 25 5% 0 0% 0 0% Sep-09 Mar-10
Slide 49: Commercial Industry Exposures
Commercial Industry Exposures For personal use only A$b Retail Trade A$b Transport & Storage 75 15% 75 15% 50 10% 50 10% 25 5% 25 5% 0 0% 0 0% Sep-09 Mar-10 Sep-10 Sep-09 Mar-10 Sep-10 Electricity, Gas & Water Supply Mining 75 15% 75 15% 50 10% 50 10% 25 5% 25 5% 0 0% 0 0% Sep-09 Mar-10 Sep-10 Sep-0
Slide 50: 90+ days past due Australia
90+ days past due Australia For personal use only Australia Mortgages Australia Cards 90+ day delinquencies 90+ day delinquencies 1.50% 1.50% Total Portfolio NSW & ACT 1.00% QLD VIC WA 0.50% 1.20% 0.00% Sep-07 Sep-08 Sep-09 Sep-10 0.90% Australia Commercial 90+ day delinquencies 1.50% 0.60% 1.00% 0.
Slide 51: Australia Mortgages
Australia Mortgages For personal use only Portfolio Statistics Dynamic Loan to Valuation Ratio % Portfolio Sep 2009 Sep 2010 • All lending is on a full recourse basis 50% Sep 2010 - 84% 12% 4% 40% • Approvals require demonstrated serviceability 30% 20% • ~830,000 loans on book 10% • 65% of portfolio
Slide 52: New Zealand
New Zealand For personal use only Total Impaired Assets and as % Gross Total Provision Charge Lending Assets Individual Provision Collective Provision 1,000 (NZ$m) 889 2.13% 800 1.89% 600 461 1.24% 400 300 0.64% 200 74 0.34% 0 2007 2008 2009 2010 (NZ$m) 90+ Days Arrears 2,079 1,837 1.20% Mortgages 1
Slide 53: Credit Intermediation Trades
Credit Intermediation Trades For personal use only Position as at 30 Sep Notional Life to Date Notional 2010 purchased Credit Risk Credit Risk Principal Mark to protection on on Amount on No. Market principal Derivatives Derivatives corresponding (US$m) amount (US$m) (A$m) Sold Protection Counterpar
Slide 54: Credit Intermediation Trade Portfolio
Credit Intermediation Trade Portfolio For personal use only • Cumulative Credit Risk on Derivative expense for the Credit Intermediation Trades Credit Intermediation Trade portfolio as at 30/9/2010 was $515m (down $5m from 31/3/2010) A$b US$b • The relative stability in credit markets and the reduce
Slide 55: Investor Discussion Pack: Regional performance
For personal use only 10 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 28 October 2010 Investor Discussion Pack Regional performance (Geographies & Divisions)
Slide 56: Group loans and deposits
Group loans and deposits For personal use only Group Customer Deposits Group Net Loans and Advances (including acceptances) 07 08 09 10 07 08 09 10 Growth 15% 13% 13% 11% 13% 15% (1%) 4% A$b A$b 400 400 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 Sep 06 Sep 07 Sep 08 Sep 09 Sep 10 Sep
Slide 57: Net loans and advances by geography
Net loans and advances1 by geography For personal use only Australia New Zealand (NZD) APEA (USD) FY07 FY08 FY09 FY10 FY07 FY08 FY09 FY10 FY07 FY08 FY09 FY10 Growth 13% 15% (1%) 6% 13% 11% (1%) (1%) 31% 99% (14%) 45% A$b 350 300 250 200 150 100 50 0 Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Se
Slide 58: Customer deposits by geography
Customer deposits by geography For personal use only Australia New Zealand (NZD) APEA (USD) FY07 FY08 FY09 FY10 FY07 FY08 FY09 FY10 FY07 FY08 FY09 FY10 Growth 20% 12% 14% 7% 7% 5% 2% 0% 26% 69% 31% 72% A$b 200 180 160 140 120 100 80 60 40 20 - Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep
Slide 59: Australia region contributed 72% of ANZ's net profit
Australia region contributed 72% of ANZ’s net profit For personal use only Underlying Net Profit After Tax Pro Forma profit1 A$m A$m 6,000 6,000 5,025 5,066 5,000 5,000 Australia Geography earnings by segment 1,390 1,402 3,924 4,000 3,772 4,000 3,766 3,426 1,236 3,635 1,100 1,056 1,212 1,056 Institu
Slide 60: Australia region
Australia region For personal use only Pro Forma Movement (FY10 vs FY09) AUDm 9% 760 437 211 295 3,664 759 37% 7% 7% (37%) 2,666 10% lower markets income following strong 2009 performance and ~$150m impact (~$180m annualised) from fee changes 37% FY09 Net interest Other Expenses Provisions Tax & FY1
Slide 61: Australia Division
Australia Division For personal use only Australia Division Revenue & Expense growth1 Profit Before Provisions growth 14% 11% 12% 2% FY10 2H10 (HoH) 10% Provisions 9% 8% -34% -32% 6% 5% FY10 2H10 (HoH) 4% Net Profit after tax 2% 26% 9% 0% 2005 2006 2007 2008 2009 2010 FY10 2H10 (HoH) Revenue Expense
Slide 62: Australia Division – contribution by business
Australia Division – contribution by business For personal use only Pro Forma Movement (FY10 vs FY09) AUDm Retail Commercial Wealth1 2 214 (20) (33) 2,737 187 (51) 228 (32) 2,165 40 153 NPAT up 107 NPAT up 198 NPAT up 267 FY09 Revenue Expenses Provisions Revenue Expenses Provisions Revenue Expenses
Slide 63: Retail building on a strong customer franchise
Retail building on a strong customer franchise, revenues impacted by fee changes and higher cost of funds For personal use only • iKnow platform providing frontline staff with Market share2 Revenue growth improved customer insights and support • Renewed focus on customer service and (% of market sha
Slide 64: Australia: Commercial
Australia: Commercial For personal use only • Acquired Landmark Financial Services Revenue growth Growing market share1 ($2.2bn lending, $400m deposits) 9% • Invested in more small business (% of market share) 6% specialists. Esanda 13.8 14.1 Market share • Esanda transitioned to a purely auto 13.4
Slide 65: Australia: Wealth
Australia: Wealth For personal use only Revenue growth • ANZ assumed full ownership of ING's Insurance in-force premiums superannuation, investment and 23% insurance businesses $m Up 14% • Combined with ANZ Private and 1,312 1,400 1,155 1,230 Investment & Insurance businesses to 1,200 2% form a sing
Slide 66: APEA: Net Profit
APEA: Net Profit For personal use only APEA Underlying NPAT APEA Contribution to Group (USDm) % Group Net Profit After Tax1 700 Higher contribution benefited from FX and 20% provision impacts in 600 16 Australia and New 4% 15% Zealand 4% 10% 1% 2% 500 14% 5% 11% 10% 7% 325 0% 400 234 2007 2008 2009
Slide 67: Revenue and Expense
Revenue and Expense For personal use only Underlying Revenue & Expenses FY10 Revenue by Geography (USDm) 1,200 South & South East Asia 14% 41% North East Asia Impact of RBS acquisition 1,013 1,000 RBS1 Income Exp 18% 2H10 163 138 Pacific 1H10 1 2 800 Europe & America 28% 600 600 FY10 Revenue by Busi
Slide 68: APEA: Balance sheet momentum
APEA: Balance sheet momentum1 For personal use only APEA loans & deposits (USDb) 2010 loan and deposit growth by RBS2 Dep. Loans region 50 46.1 92% 2H10 5.0 2.8 37.4 85% 40 1H10 1.5 0.4 72% 30 26.8 56% 20.3 24.1 45% 20 17.7 15.5 16.7 10 8% 8% -5% 0 APEA Asia Pacific Europe & 1H09 2H09 1H10 2H10 Amer
Slide 69: APEA: Institutional
APEA: Institutional For personal use only Growth rates Underlying Profit & Loss (USD basis) USDm (USDm) 600 2H10 includes RBS Profit Before 500 Provisions FY10 2H10 400 300 -5% 200 -11% 100 0 -100 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 Provisions Revenue Expenses Provisions NPAT FY10 2H10 -36% -81%
Slide 70: Retail, Wealth & Partnerships
Retail, Wealth & Partnerships For personal use only Retail, Wealth & Underlying Retail & Wealth Partnerships growth USDm Profit & Loss rates (USD basis) 400 (USDm) Profit Before 2H10 includes RBS Provisions 300 35% 200 21% 100 FY10 2H10 0 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 Provisions -100 Reven
Slide 71: New Zealand region – improving financial performance
New Zealand region – improving financial performance For personal use only Net Profit After Tax FY10 Profit before Provisions NZD m Contribution by Business2 Underlying Profit Pro Forma1 Profit 1,100 Retail 1,000 975 24% 37% 921 882 884 Commercial 900 2% 800 Wealth 700 36% 628 643 Institutional 600
Slide 72: New Zealand performance
New Zealand performance For personal use only Pro Forma1 Performance NZD m YOY Movement (FY10 vs FY09) 287 884 Impacted by fee changes 643 261 597 80 (90) 399 (244) (34) (19) New Zealand Businesses Up 50% FY09 Ex-Insto & FY09 NZB 3 Net Other Expenses Provisions Tax FY10 Add-Insto FY10 NZG 2 Other In
Slide 73: New Zealand revenue composition
New Zealand revenue composition1 For personal use only NZ Geography underlying revenue Composition of Other operating composition (NZD m)1,3 income (NZD m) NZD m 600 516 502 500 472 1,800 2.6% 400 358 371 350 1,600 2.4% 300 200 1,400 2.2% 100 1,200 0 2.0% 1H08 2H08 1H09 2H09 1H10 2H10 1,000 1.8% Len
Slide 74: New Zealand Balance Sheet
New Zealand Balance Sheet For personal use only Net Loans & Advances Customer Deposits (incl. Acceptances) (NZDb) (NZDb) $b $b 98.5 97.0 96.0 100 95.7 100 Thousands Thousands 9 8 7 7 90 90 36 36 35 35 80 80 70 70 59.5 59.9 59.3 59.7 60 60 4 5 5 5 50 52 52 50 10 11 11 11 53 52 40 40 11 10 10 10 30 30
Slide 75: New Zealand Region – contribution by businesses
New Zealand Region – contribution by businesses For personal use only 1 Pro Forma Movement (FY10 vs FY09) NZD m Retail Commercial Wealth Institutional 2 30 48 884 (73) (155) 45 (3) (103) 5 5 (2) 643 (175) (16) 17 NPAT up 70 NPAT up 121 NPAT up 20 NPAT down 18 FY09 NPAT Revenue Expenses Provisions Re
Slide 76: New Zealand - Retail & Wealth
New Zealand - Retail & Wealth For personal use only Retail & Wealth growth rates Retail Wealth Revenue growth • Asset growth flat, system growth • Wealth profitability favourably rates subdued impacted by ING NZ full ownership 4% • Income impacted by removal of • $1.5 billion KiwiSaver FUM with exce
Slide 77: New Zealand - Commercial
New Zealand - Commercial For personal use only Commercial growth Commercial Rural rates • Leveraged Shanghai Expo as an • Higher Rural incomes with Fonterra Revenue growth opportunity to connect customers to forecasting the third highest dairy payout 10% Asia and demonstrate regional on record 5% ca
Slide 78: New Zealand - Institutional
New Zealand - Institutional For personal use only Institutional growth rates • ANZ continues to dominate the Institutional NZ NZ institutional segment 2010 Financial Performance Revenue growth • Second half expense growth Trading revenue driven by investment in 368 down 161m 150 5 350 payments syste
Slide 79: New Zealand economic and business update
New Zealand economic and business update For personal use only Economic Update ANZ in New Zealand • New Zealand‟s economy is in transition, with • Announced as major sponsor of the 2011 Rugby volatile performance of economic indicators. World Cup • Consumer and business deleveraging have led • Compr
Slide 80: Global Institutional – a focus on growing core customer relationships
Global Institutional – a focus on growing core customer relationships supporting income performance For personal use only Customer Growth Customer Income1 Cross Border Income >1,100 new relationship managed Customer Income ex-Markets Super Regional strategy increasingly AUDb customers ex-acquisition
Slide 81: Global Institutional P&L drivers
Global Institutional P&L drivers For personal use only Underlying Performance1 Business Segment Performance1 YOY Movement (FY10 vs FY09) AUDm YOY Movement (FY10 vs FY09) AUDm 459 43 1,758 102 642 1,761 (206) 1,360 (124) 89 1,360 large 14% (22%) large FY09 Lending Txn Markets Other 2 FY10 (206) NPAT
Slide 82: Global Markets
Global Markets For personal use only Global Markets Income Product Contribution Sales & Trading Mix (AUDm)1 % Total Income 2,500 100% 2,062 2,000 1,816 80% 49% 1,500 1,225 43% 60% 1,000 857 36% 40% 29% 57% 500 51% 20% 71% 64% 0 0% 2007 2008 2009 2010 2007 2008 2009 2010 Sales Trading Fixed Income FX
Slide 83: Investing across the business in systems and people
Investing across the business in systems and people For personal use only Expense Growth1 Asia Pacific, Europe & America • Continued investment in growing the Asia franchise YOY HOH and driving customer acquisition • Investment in support infrastructure to underpin revenue growth 31% 13% Australia •
Slide 84: Investor Discussion Pack: Economics - Forecasts
For personal use only 10 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 28 October 2010 Investor Discussion Pack Economics - Forecasts
Slide 85: Economic updates
Economic updates For personal use only Australia New Zealand 2009 2010 2011 2012 2009 2010 2011 2012 GDP 0.8 3.7 3.8 4.1 -1.7 1.9 3.9 2.6 Inflation 1.3 2.9 2.9 3.2 2.0 4.61 3.0 2.4 Unemployment 5.8 5.0 4.7 4.5 7.1 6.4 5.4 5.6 Current A/C (% GDP) -4.4 -2.9 -3.4 -4.9 -2.9 -3.0 -3.6 -4.4 Cash rate 3.00
Slide 86: Growth Forecasts – Asia
Growth Forecasts – Asia For personal use only Emerging Asia GDP Growth Forecasts 2007 2008 2009 2010 2011 2012 China 13.1 9.0 8.8 9.9 10.0 10.3 India 9.5 7.5 6.7 8.3 6.7 7.5 NIEs Hong Kong 6.4 2.4 -2.8 5.5 5.0 5.2 Korea 5.1 2.5 0.1 6.1 4.0 4.7 Singapore 8.6 1.9 -1.3 15.0 4.9 4.5 Taiwan 5.9 1.1 -2.0
Slide 87: For personal use only
For personal use only The material in this presentation is general background information about the Bank‟s activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or p
Australia and New Zealand Banking Group — FY2010 Earnings Presentation on 6ix