Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Non-Deal Roadshow (November 2015)
91 slides from Anz's roadshow presentation, November 2015
Slide 1: 2015 Full Year Results - ANZ Investor Discussion Pack
2015 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED A N Z I N V E S T O R D I S C U S S I O N PA C K NOVEMBER 2015
Slide 2: Index
Index Group Overview 3 Financial Performance 11 Treasury 26 Risk Management 40 Portfolio Composition 54 Divisional Performance 58 Home Loan / Mortgage portfolio (Australia & New Zealand) 83 All figures within this investor discussion pack are presented on Cash basis in Australian Dollars unless othe
Slide 3: Group overview
2015 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 29 October 2015 Group overview
Slide 4: Super Regional Strategy
SUPER REGIONAL STRATEGY PROFITABLE STRONG CORE ENTERPRISE ASIAN MARKETS APPROACH GROWTH STRONG LIQUIDITY AND CAPITAL MANAGEMENT DISCIPLINED AND EXPERIENCED MANAGEMENT 4
Slide 5: ANZ offers a distinctive geographic footprint and business mix
ANZ offers a distinctive geographic footprint and business mix that provides earnings diversification Corporate Profile – Latest Full Year position: 2015 • Founded in 1835, ANZ is a super regional bank that serves 10 million retail, commercial and institutional customers in 34 markets and employs ov
Slide 6: Income composition – geography & division
Income composition – geography & division Operating Income by Geography Operating Income by Geography $m 25,000 18% 20,000 15,000 19% 10,000 5,000 63% 0 FY12 FY13 FY14 FY15 Australia New Zealand APEA Australia New Zealand APEA Net Profit after Tax by Geography Operating Income by income type $m 100%
Slide 7: Balance sheet composition – geography & division
Balance sheet composition – geography & division Group balance sheet composition Institutional Balance sheet profile Customer Lending1 Customer Deposits By total exposure (%) By tenor – FY15 (%) $570b (Sep 15) $445b (Sep 15) 15% 29% Default Tenor > 1Yr Sub Inv Grade 17% Inv Grade Tenor < 1Yr 18% 67%
Slide 8: Enterprise Approach
Enterprise Approach Improving customer experience, productivity and control Delivering a stronger and more via an enterprise approach to benefiting our customers, efficient bank operations and technology employees and shareholders Improving customer experience Customer • Easier on-boarding and compl
Slide 9: Regional Delivery Network
Regional Delivery Network Improving resilience and productivity, while supporting business growth Driving sustained productivity benefits Supporting regional growth Network Locations Leveraging time zone advantages Bengaluru • ~20 hour servicing window for Retail and Wholesale Chengdu Lending, suppo
Slide 10: Common Technology Platforms
Common Technology Platforms Increasing capability and delivering strategy Coverage Value1 Global Wholesale Digital 17 $2.5 Value of transactions processed this countries trillion year2 Global Retail Cards 20 >8 Active cards in circulation countries million Global Process Management 24 6,000 Saved by
Slide 11: Financial Performance
2015 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 29 October 2015 Financial Performance
Slide 12: Financial performance
Financial performance 2015 2014 change ($m) ($m) (%) Statutory profit 7,493 7,271 3% Cash Profit 7,216 7,117 1% Cash Earnings Per Share (cents) 260.3 260.3 - Cash Dividend Per Share (cents) 181 178 2% ROE 14.0% 15.4% (140)bps CET1 APRA Basis 9.6% 8.8% 80bps Internationally comparable 13.2% 12.5% 70b
Slide 13: 2007 - 2015 Scorecard
2007 - 2015 Scorecard 2007 2015 Capital (CET1)1 4.1% 9.6% A stronger more Liquidity2 $30bn $135bn profitable Bank Total Assets $393bn $890bn Profit $3.9bn $7.2bn • A stronger Brand Better Bank for • More customers; significant investment Customers • Growing market share • Strong digital credentials
Slide 14: Financial performance drivers
Financial performance drivers Income drivers 2H15 NIM $m 55 bp 134 212 490 131 20,518 73 84 201 4 488 20,066 204 204 202 1 8 1 19,578 2 2 2 bps 2.3% 0 bps 4.8% (8) bps Asset mix¹ Other² FX Deposits 1H15 FX adj. change Asset Pricing 2H14 1H15 2H15 Trade Cash FY14 FY15 Global FX FY14 Adj Retail Comm.
Slide 15: Volume & Margin by Division
Volume & Margin by Division ANZ total Australia Division $b $b 314 570 288 522 271 483 254 428 2.31 2.22 2.53 2.52 2.50 2.13 2.04 2.48 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 NLAs NIM (%) NLAs NIM (%) New Zealand IIB $NZb 104.8 $b 96.6 155 88.0 91.6 142 123 98 1.82 1.61 1.50 2.58 2.48 1.34 2.49 2.49
Slide 16: Productivity – Revenue/FTE & CTI
Productivity – Revenue/FTE & CTI ANZ total Australia $k $k 887 798 827 739 389 409 370 504 47.7% 44.9% 44.7% 45.6% 41.0% 37.5% 36.8% 36.4% FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 Revenue/FTE CTI Revenue/FTE CTI New Zealand IIB $NZk 571 $k 544 979 504 917 440 820 768 49% 48.0% 47% 46% 45% 43.6% 40.9%
Slide 17: Consistent project investment
Consistent project investment Strategic initiatives 800 $m 700 115 158 147 Efficiency • Re-engineering/automating 600 • Integrating end-to-end workflow 500 • Standardising systems & processes 400 300 633 Product 572 590 • Multi channel platform for retail re-engineering 200 • End-to-end wholesale le
Slide 18: Impaired asset and 90+ day arrears trends
Impaired asset and 90+ day arrears trends Gross impaired assets 90+ day arrears Australia $m 160 Index Sep 13 = 100 6,000 5,196 5,000 4,264 140 4,000 120 2,889 2,719 3,000 100 2,000 80 1,000 60 0 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Sep 12 Sep 13 Sep 14 Sep 15 Home Loans¹ (
Slide 19: Impaired Asset trends by division
Impaired Asset trends by division ANZ total Australia Division 1.20% 0.70% 0.62% 0.88% 0.43% 0.38% 0.55% 0.47% Sep 12 Sep 13 Sep 14 Sep 15 Sep 12 Sep 13 Sep 14 Sep 15 GIA as % of GLAs GIA as % of GLAs New Zealand Division IIB 2.08% 1.61% 1.46% 0.93% 0.76% 0.76% 0.61% 0.35% FY12 FY13 FY14 FY15 Sep 12
Slide 20: Provisions
Provisions Total Provision charge Individual Provision charge $m $m 2,000 3,000 1,637 1,167 1,144 1,110 2,000 1,000 1,500 0 1,258 1,205 1,197 -1,000 FY12 FY13 FY14 FY15 989 1,000 New Increased Writebacks & Recoveries Collective Provision balance 500 $m 70 104 2,956 - 104 2,861 (79) 0 2,757 3.3% -500
Slide 21: Provision charge by Division
Provision charge by Division ANZ total Australia Division $m 2,000 $m 818 818 853 900 1,500 639 700 1,000 1,258 1,205 1,197 500 989 500 300 0 100 -100 -500 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 IP Charge CP Charge Totals IP Charge CP Charge Totals New Zealand Division IIB $NZm $m 300 900 191 600 4
Slide 22: Cash Profit by Division
Cash Profit by Division Australia Division New Zealand Division $m 3,274 $NZm 1,177 1,215 3,054 2,854 1,060 2,571 861 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 Growth 11.0% 7.0% 7.2% Growth 23.1% 11.0% 3.2% IIB Wealth $m 2,708 2,664 $m 601 2,441 478 421 2,162 366 FY12 FY13 FY14 FY15 FY12¹ FY13² FY14 F
Slide 23: RoRWA by Division
RoRWA by Division ANZ total Australia Division 2.07% 2.04% 2.01% 1.90% 2.78% 2.78% 2.82% 2.81% FY12¹ FY13 FY14 FY15 FY12 FY13 FY14 FY15 New Zealand Division IIB 2.24% ~75% of reduction due to lower 2.11% 2.19% Global Markets revenue 1.83% 1.43% 1.42% 1.44% 1.31% FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY
Slide 24: Managing for a challenging environment
Managing for a challenging environment Challenges Management Revenue • Softer Q4 in Markets • Investment in high return businesses • Balance sheet trade-offs (RWA growth and trade) • Portfolio mix Costs • Cost headwinds (compliance and • FTE reduction regulation) • 10% Ops & Service • IIB responding
Slide 25: Focus areas
Focus areas 1. Continue to invest in responsible Australian growth 2. Keep focused and disciplined in New Zealand 3. Much tighter management of returns in IIB 4. Tilt investment to digital and productivity 5. Further simplify and rebalance the portfolio, removing distractions 25
Slide 26: Treasury
2015 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 29 October 2015 Treasury
Slide 27: Risk Weighted Asset movement – second half
Risk Weighted Asset movement – second half $b 401.9 7.0 0.8 394.4 0.3 4.4 3.1 386.9 1.9% Mar-15 FX¹ Op RWAs Mar 15 Credit IRRBB Mkt FY15 fx adj RWAs RWA RWAs 1. FX impact on Credit RWAs only 27
Slide 28: Capital & Liquidity
Capital & Liquidity Basel III Liquidity Coverage Ratio (Sep 15) APRA Basel III Leverage Ratio (Sep 15)2 Sep 15 vs Mar 15 APRA basis (%) 5.07 Liquid Assets $185b +$12b Equity Investments 0.49 Net cash outflows $151b +$6b DTA 0.07 LCR 122% +3% Other 0.02 LCR surplus $34b +$6b Internationally comparabl
Slide 29: Capital Update Basel III Common Equity Tier 1 (CET1)
Regulatory capital Capital Update Basel III Common Equity Tier 1 (CET1) • Common Equity Tier 1 ratio 9.6% at FY15 on an APRA 13.2% 12.5% 12.1% basis or 13.2% on an Internationally Comparable1 basis. Target remains around 9% on an APRA basis. 9.6% 8.8% 8.7% • $3.2bn equity raising completed in second
Slide 30: Internationally Comparable regulatory capital position
Internationally Comparable regulatory capital position APRA Study1 APRA Common Equity Tier 1 (CET1) 9.6% Corporate undrawn EAD and Australian ADI unsecured corporate lending LGDs and 1.6% unsecured LGD adjustments undrawn CCFs exceed those applied in many jurisdictions. APRA requires 100% deduction
Slide 31: ANZ's CET1 ratio vs international peers
ANZ’s CET1 ratio vs international peers Canada UK Singapore Europe +310 bps +30bps +90bps +50bps BIS 75th percentile3 = 12.5% 8.00% 1.00% D-SIB 13.2% 13.3% 12.9% 12.0% 12.5% 12.0% 2.50% 11.9% 11.6% CCB 10.2% 9.60% 4.50% Average2 ANZ (Europe Singapore Peer (Internationally ANZ (UK basis) ANZ (APRA) A
Slide 32: Regulatory capital generation
Regulatory capital generation Common Equity Tier 1 generation (bps) • Net capital generation of 130 bps FY avg consistent with performance over recent FY12– FY15 FY14 years Cash profit 206 200 • FY15 non-core and non-recurring items RWA growth (50) (36) mainly due to increased Operational Capital de
Slide 33: Basel III Leverage Ratio
Basel III Leverage Ratio Basel III Leverage Ratio1 % 0.07 0.02 5.65 0.49 5.07 APRA basis Equity DTA Other Internationally investments Comparable basis • Leverage ratio well placed between median and top quartile of top 100 global banks.2 • Top 100 position not directly comparable to Australian banks
Slide 34: Balance sheet composition
Balance sheet composition $758bn $758bn Other ST Liabilities 4% • Stable balance sheet composition Liquids 18% ST Funding 8% • Completed $3.2bn equity raising in 2H15 Term Funding<12M 5% Other Short Other Term Assets & Customer • Term assets funded by equity, term funding Trade 10% Deposits 12% and
Slide 35: Basel III Liquidity Coverage Ratio
Basel III Liquidity Coverage Ratio March 2015 September 2015 $b LCR 119% $b LCR 122% Surplus $28b 185 Surplus $34b 173 17 17 151 145 49 24 25 49 3 3 121 126 116 104 3 Liquid Assets1, 2 Net Cash Outflows Liquid Assets1, 2 Net Cash Outflows 3 HQLA 1 Internal RMBS Customer deposits and other4 HQLA 2 Ot
Slide 36: Balance sheet strengthening
Balance sheet strengthening Leverage ratio1 Liquidity 5.1% FY07 FY15 • 8 calendar day Short • 30 calendar day Basel III Reduction in Term Crisis scenario Liquidity Coverage Ratio 3.5% leverage equivalent (LCR) requirement to an additional • HQLA include cash, CET1 ~$14bn Tier 1 RBA repo eligible • F
Slide 37: Term wholesale funding portfolio
Term wholesale funding portfolio Term Funding Profile Issuance1 $bn Maturities Annual 26 indicative 24 24 23 22 issuance volume 19 16 16 17 12 11 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21+ Senior Unsecured Covered Bonds Tier 2² Portfolio by Type Portfolio by Currency 1% Domestic 9% 6% (
Slide 38: Foreign currency hedging – earnings benefit from lower AUD
Foreign currency hedging – earnings benefit from lower AUD FY15 Earnings Composition (by currency) Earnings per Share FX Impact1 1.6% AUD IDR Other 59% 19% 0.2% NZD FY14 v FY15 2H15 v 1H15 22% Translation Rates (inclusive of hedges) • The key objective of hedging is to manage short term 1.35 1.05 EP
Slide 39: Regulatory landscape
Regulatory landscape Status ANZ’s position • APRA introduced amendments in May 2015 for APRA basis leverage ratio 5.1%, calculating the leverage ratio as a disclosure only Internationally Comparable basis 5.6% Leverage ratio requirement as at 30 September 2015 • No minimum currently specified, BCBS
Slide 40: Risk Management
2015 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 29 October 2015 Risk Management
Slide 41: Impaired Assets - YoY
Impaired Assets - YoY Control list Gross Impaired assets by division Control List by Limits Control List by No of Groups $m Australia New Zealand IIB Other Index Sep 09 = 100 7,000 6,561 120 6,000 5,581 5,196 100 5,000 4,264 80 4,000 2,889 2,719 60 3,000 2,000 40 1,000 20 0 Sep 09 Sep 10 Sep 11 Sep
Slide 42: Credit Impairment Charge - $1,205m
Credit Impairment Charge - $1,205m Provision charge Individual provision charge composition $m $m Collective Provision (CP) Charge (LHS) Individual Provision (IP) Charge (LHS) New Increased Writebacks & Recoveries Total Provision Charge as % Avg. GLA 2,000 3,000 1,823 1,637 2,500 1,213 1,167 1,144 1
Slide 43: Collective Provision
Collective Provision Collective Provision charge Collective provision balance by division $m FY12 FY13 FY14 FY15 104 2,956 Lending growth 148 136 146 104 92 4 1 Portfolio Mix -12 -29 -20 0 (2) 2,757 Risk Profile -196 -43 -232 70 Eco cycle -319 -34 -49 -79 Total Sep 14 Aus IIB NZ Wealth FX Sep 15 CPC
Slide 44: Historic loss rates
Historic loss rates Australian Industry Corporate Gearing • Industry corporate gearing ratios1,when lagged by 15 months, display a strong relationship to credit impairment, indicating current corporate gearing is a useful leading indicator of loss. • The uptick observed in the most recent Australian
Slide 45: Risk Weighted Assets
Risk Weighted Assets Total risk weighted assets (RWA) Total RWA movement $b 387 402 $b 361 362 5.9 339 33 38 401.9 32 32 14 14 40.9 29 21 23 24 (6.2) (0.2) 340 350 361.5 288 305 309 Sep 13 Mar 14 Sep 14 Mar 15 Sep 15 Sep 14 Credit Op IRRBB Mkt. Sep 15 RWA RWA RWA RWA Credit RWA Market & IRRBB RWA Op
Slide 46: Portfolio composition
Portfolio composition Exposure at default (EAD) EAD by industry as a % of Group total category Non performing by industry Balance in % of industry % of Group EAD Non ANZ Group Category category in Non EAD ($m) Performing Performing ($m) Total Group EAD (Sep 15) 915000 Sep-14 Sep-15 Sep-15 Sep-14 Sep
Slide 47: Resources Portfolio
Resources Portfolio Resources exposure by sector (% EAD) Total EAD (Sep 15) : $20.0b As a % of Group EAD: 2.2% 50% 43% 40% 37% 39% 28% 30% 23% 25% 22% 23% 18% 16% 18% 19% 17% 20% 15% 14% 13% 11% 10% 6% 6% 7% 0% Oil & Gas Metal Ore Mining Coal Mining Services to Mining¹ Other Mining FY12 FY13 FY14 FY
Slide 48: Commercial property portfolio
Commercial property portfolio Commercial Property outstandings by Commercial Property outstandings by region1 sector1 $b 35% 37.5 8.0% 37.4 30% 34.4 25% 33.9 4.5 4.7 32.0 7.5% 20% 4.5 4.1 4.1 15% 8.4 10% 8.3 7.0% 6.9 6.1 6.9 5% 0% Offices Retail Industrial Residential Tourism Other 6.5% Sep 13 Sep 1
Slide 49: Agri portfolio
Agri portfolio Agriculture exposure by sector (% EAD) New Zealand Dairy credit quality NZDb NZD Dairy EAD Total EAD (Sep 15) As a % of Group EAD Wt. Avg. Probability of Default (RHS) 14 AUD$33.2b 3.7% 13 2.5% 12 12 12 12 Dairy 2.0% 9% Beef 1.5% 1.75% 12% 1.59% Sheep & Other Livestock 39% 1.22% 1 1.0
Slide 50: Industry Themes and Guidelines for Quality
Industry Themes and Guidelines for Quality Areas on Watch ANZ Lending Principles Examples 1. Commercial Property • Focus on key markets in Australia, New Zealand, Singapore and Hong Kong Land and buildings primarily leased to third parties or new buildings constructed to be leased or sold • No appet
Slide 51: Australia Division
Australia Division Australia division credit exposure (EAD) Dynamic Loan to Value Ratio (FY15)2,4 % of Portfolio 1% 50% Home Loans 6% Sep 12 40% Mar 13 Sep 13 LVR >90% Mar 14 Corporate and 24% 30% 3.80% Sep 14 Commercial Banking³ (Sep 15) Mar 15 20% Sep 15 Personal Loans 69% 10% Consumer Cards 0% 0-
Slide 52: New Zealand - market characteristics
New Zealand - market characteristics GDP contribution by industry1 Banking market2 Transport and 88% of NZ banking sector Net Loans & Comms Advances ($341b) are with the big 4 banks 8% Wholesale & Other Retail banks 12% Finance & 12% Business ANZ 27% 31% Construction Peer 3 6% Government 19% Utiliti
Slide 53: New Zealand
New Zealand New Zealand Geography New Zealand Geography gross impaired assets total provision charge NZDm Gross Impaired Assets GIA as % GLA NZDm IP Charge CP Charge 1,818 200 105 85 103 1,451 150 99 44 100 30 45 22 1.92% 955 31 50 -39 1.49% 708 0 419 0.95% -50 0.67% 0.36% -100 1H11 2H11 1H12 2H12 1
Slide 54: Portfolio composition by exposure at default
2015 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 29 October 2015 Portfolio composition by exposure at default International & Institutional Banking (IIB) Asia China
Slide 55: ANZ Institutional Portfolio
ANZ Institutional Portfolio Country of Incorporation2 Institutional Portfolio size & tenor (EAD)1 ANZ Institutional industry composition A$b EAD(September 15): AU$392b1 Finance (Banks and Central Banks) 400 Government Admin. Property Services³ 350 30% 35% Services to Fin. & Ins. Machinery & Equip Mn
Slide 56: ANZ Asian Institutional Portfolio
ANZ Asian Institutional Portfolio Country of Incorporation Country of Incorporation2 ANZ Asia industry composition EAD(September 15): AU$103b1 EAD(September 15): AU$103b1 Finance (Banks & Central Banks) Machinery & Equip Mnfg 28% 8% Property Services 5% 44% Petrol,Coal,Chem & Assoc Prod Mnfg 26% Bas
Slide 57: ANZ China portfolio
ANZ China portfolio Country of Incorporation2 ANZ China industry composition (EAD)1 China EAD • Total China EAD of A$27b, with 38% or $10.3b 7% Finance (Banks and Central booked onshore in China. 3% Banks) 10% Manufacturing Tenor ~88% of EAD has a tenor less than 1 year Wholesale Trade Risk rating 5
Slide 58: Divisional performance
2015 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 29 October 2015 Divisional performance
Slide 59: Divisional overview
Divisional overview Profit growth1 $m 5,521 7% Australia Division 3,274 7% 3,803 1% IIB 2,664 2% 1,620 9% NZ Division 1,127 5% 755 2% Wealth 601 11% Profit Before Provisions (PBP) Cash Profit 1. Excludes GTSO and Group centre 59
Slide 60: Digital investment is transforming the business
Digital investment is transforming the business Digitally connected Highly engaged Easy path to purchase +9% +10% +30% Aus increase in digitally active increase in increase in Digital Sales customers1 transactions via Digital2 (110% uplift from 2012) (25% uplift from 2012) (39% uplift from 2012) >50
Slide 61: Australia Division
Australia Australia Division FY15 results FY15 2H15 Net Profit contribution by P&L Line ($m) % gth % gth 107 53 $m $m YOY1 HOH1 347 5 (27) Net Interest Income 7,509 6% 3,839 5% (142) 3,274 (35) Other Income 1,169 5% 598 5% (88) 3,054 Total Income 8,678 6% 4,437 5% Retail 5,334 8% 2,758 7% Retail C&C
Slide 62: Australia Division – overview
Australia Australia Division – overview Delivering strong returns Revenue ($m) & NIM PBP ($m) Cash profit ($m) 8,678 7,804 8,193 7,293 5,178 5,521 4,885 3,274 2.48% 2.53% 2.52% 2.50% 4,323 2,854 3,054 2,571 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 Revenue NIM Rev. per FTE ($’000)
Slide 63: Australia Division – balance sheet overview
Australia Australia Division – balance sheet overview Strong second half momentum Lending1 growth ($b) 2015 lending1 flows – Retail ($b) +4% +6% 314 271 288 254 33 - 39 - 229 242 220 (26) (24) FY12 FY13 FY14 FY15 FY14 New Net Repay/ 1H15 New Net Repay/ FY15 Fundings Personal Refis/ Fundings Personal
Slide 64: Delivered strong outcomes in customer acquisition, product penetration and sales
Australia Delivered strong outcomes in customer acquisition, product penetration and sales Grow customers (‘000) Grow products per customer (%) Australia Division Retail Products per Customer 5,900 +~412k 5,800 5,700 5,600 Multiple 56.1 57.2 58.2 59.0 5,500 5,400 5,300 Single 43.9 42.8 41.8 41.0 5,2
Slide 65: Delivered strong revenue and volume growth, while managing costs
Australia Delivered strong revenue and volume growth, while managing costs and credit quality Strong FUM growth (PCP1) Effective margin management (NIM %) FUM growth NSW Home 20% 2.53 2.52 Loans 2.48 2.50 Home Loans 10% Retail Deposits 6% 56% 58% Business 6% Lending Business 4% Deposits Cards & FY12
Slide 66: Transforming our channels, delivering an enhanced customer experience
Australia Transforming our channels, delivering an enhanced customer experience Improving the Customer Experience Aligning branches to customers’ needs • 6 new ‘digital’ branches with striking customer-led design • Better support for customers with assisted service on digital devices • Enhanced priv
Slide 67: Small Business Banking
Australia Small Business Banking Strong performance by a leading proposition and sustained focus Strong Performance, Well Diversified, Sound Quality Leading Proposition NLAs Deposits First in market, leading needs assessment #1 solution (Digital A-Z 14% CAGR 7% CAGR Review) $b $b 15 35 Tailored solu
Slide 68: New Zealand Division
New Zealand New Zealand Division Balance sheet momentum coupled with productivity gains Net Profit contribution by P&L Line FY15 2H15 (NZDm) % gth % gth NZDm NZDm YOY1 HOH1 15 48 3 Net Int Income 2,498 5% 1,257 1% 91 (1) (21) Other Income 397 4% 201 3% (15) 1,215 1,177 (68) Total Income 2,895 5% 1,4
Slide 69: New Zealand Division – overview
New Zealand New Zealand Division – overview Strong returns, high quality portfolio Revenue (NZDm) & NIM PBP1(NZDm) Cash profit (NZDm) 2,754 2,895 2,658 2,682 2.58% 2.49% 2.49% 2.48% 1,627 1,747 1,380 1,513 1,177 1,215 861 1,060 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 Revenue NIM
Slide 70: New Zealand Division – balance sheet overview
New Zealand New Zealand Division – balance sheet overview $8b lending growth, largely funded by deposits Lending1 growth (NZDb) 2015 lending2 flows – Retail & Small Bus. Bank (NZDb) 105 92 97 88 60 6 3 62 8 3 65 (4) (3) (5) (3) FY12 FY13 FY14 FY15 FY14 New Exit Top up Repay 1H15 New Exit Top up Repa
Slide 71: Delivering results through sales
New Zealand Delivering results through sales Building a world class sales and service capability Customer satisfaction1 R&SBB sales productivity 89% NZDk m 110 10 86% 8 85% 85% 100 84% 6 90 4 80 2 70 0 Sep 13 Mar 14 Sep 14 Mar 15 Sep 15 1H14 2H14 1H15 2H15 Sales /sales FTE² (LHS) Transactions in bra
Slide 72: Strong and stable returns for the ANZ Group
New Zealand Strong and stable returns for the ANZ Group Delivering through focus on 5 priority products Growth in key products in FY15 Household Mortgages1 Credit Cards1 Life Insurance2 KiwiSaver3 Deposits1 +53 bps +101 bps +23 bps +19 bps +66 bps 31.0% 31.6% 30.9% 29.8% 29.3% 29.1% 26.9% 26.2% 9.5%
Slide 73: New Zealand – Agri
New Zealand New Zealand – Agri1 Focusing on high quality incremental growth Agri Portfolio2 (NZDb) Credit Quality Dairy as a % of total NZ Geog 40 12% 11% 11% 10% 3.61% 30 +3% 1.99% 20 1.05% 10 0.69% 0 FY12 FY13 FY14 FY15 Sep 12 Sep 13 Sep 14 Sep 15 Dairy Sheep & Beef Other Rural GIA as % of GLAs Ma
Slide 74: Global Wealth Division Financial Performance
Global Wealth Global Wealth Division Financial Performance Delivering strong financial performance FY15 2H15 Revenue ($m) PBP($m) % gth 1,730 % gth (ex % gth 1,620 1,440 1,526 1 $m $m1 YOY2 trustees) HoH2 3 Income 1,730 (1%) 7% 880 4% 657 755 Net Int Inc 178 6% 6% 90 2% 502 571 OI 191 (42%) (6%) 94
Slide 75: Global Wealth - Insurance
Global Wealth Global Wealth - Insurance Continues to deliver growth in inforce premiums and embedded value Stable mix of Life Insurance inforce ($m) Lapse rates1 (%) +22% Australia New Zealand CAGR -3% CAGR -2% 1,707 1,514 1,538 16.6 16.1 1,398 15.9 15.8 25% 14.7 14.6 24% 13.5 13.3 31% 29% 11% 10% 1
Slide 76: Global Wealth – Funds Management & Private Wealth
Global Wealth Global Wealth – Funds Management & Private Wealth Positive volume growth in customer deposits and key digital solutions Funds Mgt average FUM1($b) Funds Mgt netflows1 ($m) Private Wealth2 +31% Investment FUM ($b) 2,212 1,933 +94% 65.8 61.3 7.0 55.0 50.4 5.8 4.8 3.6 5.0 4.5 3.9 (408) 3.
Slide 77: International & Institutional Banking (IIB)
IIB International & Institutional Banking (IIB) FY15 results FY15 2H15 Revenue contribution by product % gth % gth % gth 7,419 $m $m 139 YOY1 PCP1 HOH1 121 7,105 82 Net Interest income 4,173 4% 2,146 7% 6% 10 30 39 79 Other operating 3,246 5% 1,487 1% (15%) 165 21 income Total Income 7,419 4% 3,633
Slide 78: IIB revenue continued to grow
IIB IIB revenue continued to grow But profit was challenged Revenue ($m) PBP ($m) Cash profit ($m) $k 7,105 7,419 1,000 6,580 6,425 800 3,096 3,246 3,830 3,803 2,759 2,909 600 3,605 3,421 2,708 400 2,441 2,664 2,162 3,666 3,671 4,009 4,173 200 0 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 FY12 FY13 FY14
Slide 79: Strong customer funding base and disciplined risk management
IIB Strong customer funding base and disciplined risk management support targeted balance sheet growth Increasing geographic Provisions impacted by FY14 diversification Credit quality collective provision benefit Net Loans and Advances GIA as a % of GLA $b $m 141 142 216 295 14 2.08% 125 6 7 110 6 1
Slide 80: The Asia franchise performed well
IIB The Asia franchise performed well Delivering growth and improving productivity IIB Asia Revenue ($m) IIB Asia Institutional Revenue ($m)1 3,084 1,508 1,602 2,709 10% 9% 2,278 1,204 2,011 46% 1,033 9% 25% 29% 47% 10% 47% 27% 48% 27% 22% 18% 24% 26% 53% 54% 53% 44% 43% 52% 40% 37% FY12 FY13 FY14 F
Slide 81: Record Global Markets customer sales revenue
IIB Record Global Markets customer sales revenue Trading & Balance Sheet impacted by 4Q trading conditions Customer facing markets revenue is growing …in APEA across diverse product range $m Sales Trading Balance Sheet Val’n Adj. for Revenue by region $m Revenue by product Derivatives 1,286 1,207 2,
Slide 82: Trade and Cash Management are delivering in tougher conditions
IIB Trade and Cash Management are delivering in tougher conditions PCM revenue is at record levels Deposit growth is strong $m $b 1,102 +12% 1,022 5% 873 5% 15% 13% 14% 96 12% 5% 14% 76 86 14% 68% 66% 69% FY13 FY14 FY15 FY13 FY14 FY15 Aus NZ Asia PEA … despite a significant decline Trade revenues br
Slide 83: Home Loan / Mortgage Portfolio
2015 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 29 October 2015 Home Loan / Mortgage Portfolio
Slide 84: Retail - Home Loans
Australia Retail - Home Loans Good Business Growing Strongly Managed Prudently Home Loan Sales of $66b up DynamicLVR Dynamic LVRof ofthe the $231b Portfolio (40% of 24% significantly on 50% 50% portfolio portfolio the group) FY14 Strong FUM Increase in %%ofofpopulation population 10% growth drivin
Slide 85: Retail - Home Loans
Australia Retail - Home Loans Portfolio remains strong Portfolio Statistics1 FY14 FY15 Portfolio Statistics1 FY14 FY15 Total Number of Home Loan Average Loan Size at 919k 954k $352k $389k Accounts Origination3,4 Total Home Loans FUM $209b $231b Average Loan Size $227k $242k % of Total Australia Geog
Slide 86: Quality assurance, info verification & policy reviews
Australia Retail – Home Loans Underwriting practices Multiple checks during End-to-end home lending responsibility managed origination process within ANZ • Pre-sales (digital & marketing) • Proprietary sales and/or verification of 3rd parties1 Pre-application Income & Expenses • In-house loan origin
Slide 87: Australian Home Loans Composition and flows
Australia Australian Home Loans Composition and flows Home Loan lending flows ($b) Home Loan market share movement APRA Mortgage Market Share 14 Index Sep 14 = 100 53 5 102 101 (50) 100 +10% 231 99 209 98 Sep 14 Dec 14 Mar 15 Jun 15 Sep 14 New Net OFI Redraw & Repay. Sep 15 ANZ Peer 1 Peer 2 Peer 3
Slide 88: Stable LMI loss rates below industry average
Australia Stable LMI loss rates below industry average Australian Home Loan portfolio LMI and Background Reinsurance Structure at 30 Sep 2015 % 2015 FUM Financial Year 2015 Results LVR ≤ 80% Not Insured Gross Written Premium ($m) $229m 77% Net Claims Paid ($m) $9.4m 2015 Reinsurance Arrangement LVR
Slide 89: New Zealand - Home Loan Portfolio
New Zealand New Zealand - Home Loan Portfolio1 Portfolio Statistics FY14 FY15 Portfolio Statistics FY14 FY15 Total Number of Home Loan 488k 502k Average Loan Size at Origination $260k $306k Accounts Total Home Loans FUM 62b 68b Average LVR at Origination2 64% 64% % of Total New Zealand Average Dynam
Slide 90: New Zealand - Home Loan Portfolio: Composition and flows
New Zealand New Zealand - Home Loan Portfolio1 Composition and flows Flow2 Portfolio 2% 3% 12% 11% 30% 25% 26% 24% 35% 41% 9% 9% 8% 8% 12% 11% 70% 75% 53% 48% 43% 45% FY14 FY15 FY14 FY15 FY14 FY15 Auckland Wellington Christ. Branch Broker Mobile mortgage managers Fixed Variable Other Nth Is. Other S
Slide 91: www.anz.com
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 potential investors and
Australia and New Zealand Banking Group — Non-Deal Roadshow (November 2015) on 6ix