Anz Group Holdings Limited · ASX:ANZ
Anz — FY2020 Earnings Presentation
117 slides from Anz's earnings presentation, November 2020
Slide 1: 2020 Full Year Results
2020 FULL YEAR RESULTS FULL YEAR ENDED 30 SEPTEMBER 2020 RESULTS PRESENTATION & INVESTOR DISCUSSION PACK
Slide 2: Contents
CONTENTS 2020 FULL YEAR RESULTS CEO and CFO Results Presentations 2 CEO Presentation 2 CFO Presentation 12 Group & Divisional Financial Performance 27 Group including impact of Large / Notable items 27 Australia Retail & Commercial 38 Institutional 42 New Zealand Division 47 Treasury 50 Customer Sup
Slide 3: CEO: Shayne Elliott
2020 FULL YEAR RESULTS SHAYNE ELLIOTT CHIEF EXECUTIVE OFFICER
Slide 4: Our Purpose
OUR PURPOSE Guiding the way we support customers Guiding the way we engage with our people Guiding the way we work with stakeholders 3
Slide 5: Financial Snapshot
FINANCIAL SNAPSHOT FY20 FY20 v FY19 Statutory Profit ($m) 3,577 -40% Cash Profit (Continuing operations)1 ($m) 3,758 -42% Return on Equity (%) 6.2 -471bps Earnings Per Share (cents) 132.7 -42% Cash Profit (Continuing operations) ex. large / notable items ($m) 5,297 -21% Dividend Per Share (cents) 60
Slide 6: Well Prepared for the Environment
WELL PREPARED FOR THE ENVIRONMENT CET1 AND ADDITIONAL BUFFERS 58bps ($2.5b) increase in capital (CET1) in 2H20 $64b Capacity to generate future profit ~$10b PBP illustrative based on FY207 174bps CET1 capital generated from PBP in FY204 $49b CP Balance $5b Mgmt Buffer $1.6b increase in CP balance in
Slide 7: Business Performance
BUSINESS PERFORMANCE INCOME CONTRIBUTION1 EXPENSES1 $b $b 18.7 18.7 8.5 8.6 0.8 0.6 0.9 1.2 3.2 3.1 9.6 9.2 7.6 7.4 5.2 5.9 FY19 FY20 FY19 FY20 Institutional NZ BAU Investment Australia Retail & Commercial Other 1. Cash continuing excluding Large / Notable items 6
Slide 8: Record Level of Investment
RECORD LEVEL OF INVESTMENT TOTAL INVESTMENT SPEND1 CAPITALISED SOFTWARE BALANCE2 $b $b 1.77 3 24% 1.40 1.18 1.22 1.15 30% 2 35% 42% 41% 76% 1 70% 59% 65% 58% 0 FY16 FY17 FY18 FY19 FY20 Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- 08 10 12 14 16 18 19 20 Investment Expensed Investment Capitalised ANZ Peer
Slide 9: Supporting Customers
SUPPORTING CUSTOMERS INSTITUTIONAL LENDING1 AUSTRALIA HOME LOAN REPAYMENT DEFERRALS $b Accounts (000s) 190 95 • 79% returning to full payments 162 48 158 152 34 32 • 20% have requested a further deferral 26 55 20 18 19 14 • 1% restructured or transferred to hardship 122 111 107 109 40 Mar-19 Sep-19
Slide 10: Customer Behaviour
CUSTOMER BEHAVIOUR CUSTOMER DEPOSITS OFFSET ACCOUNTS - AUSTRALIA Retail & Commercial $b $b 329 308 295 33 27 28 Sep-19 Mar-20 Sep-20 CREDIT CARDS – AUSTRALIA & NEW ZEALAND $b 8 8 6 Sep-19 Mar-20 Sep-20 Sep-19 Mar-20 Sep-20 9
Slide 11: Four Priorities Established in 2016
FOUR PRIORITIES ESTABLISHED IN 2016 1. Creating a simpler, 2. Focusing on areas better balanced bank where we can win 3. Building a superior 4. Driving a purpose and everyday experience to values led transformation compete in the digital age 10
Slide 12: Key Messages
KEY MESSAGES • Emerge with stronger relationships • Continue to reshape the portfolio • Continue to make the bank simpler • Deliver new capabilities • Ready to take advantage of opportunities 11
Slide 13: CFO: Michelle Jablko
2020 FULL YEAR RESULTS MICHELLE JABLKO CHIEF FINANCIAL OFFICER
Slide 14: Overview
OVERVIEW CASH PROFIT CONTINUING OPERATIONS CASH PROFIT1 CASH EPS1 ROE1 CET1 RATIO (LEVEL 2) $m cents % % 6,809 6,487 6,470 233 11.7 11.4 11.4 11.3 223 228 11.0 10.9 10.6 3,758 133 6.2 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 Sep-17 Sep-18 Sep-19 Sep-20 1. FY17 has not been restate
Slide 15: Agenda
AGENDA 1. Key pillars in protecting our balance sheet 2. Major components within capital including earnings and credit quality 3. Capital & dividends 14
Slide 16: Liquidity & Funding
LIQUIDITY & FUNDING CUSTOMER DEPOSITS LIQUIDITY COVERAGE RATIO NET STABLE FUNDING RATIO End of period $b Average End of period 567 143% 552 137% 139% 139% 512 124% 493 115% 116% 118% 259 223 100% 100% 217 205 Regulatory Regulatory Minimum Minimum 308 329 288 295 Mar-19 Sep-19 Mar-20 Sep-20 1H19 2H19
Slide 17: Capital
CAPITAL CET1 RATIO (APRA LEVEL 2) % Pro-Forma CET1 ratio3 0.4 Credit impacts 29bps 0.8 0.1 ~11.4 11.4 -0.2 -0.2 0.0 -0.1 11.2 -0.1 -0.1 11.3 10.8 Sep-19 Mar-20 Profit before Underlying Market Risk Credit Net DTA Risk Asset Other2 Interim Sep-20 Sep-20 provisions business & IRRBB impairment on CIC Mi
Slide 18: Financial Performance
FINANCIAL PERFORMANCE CASH PROFIT CONTINUING OPERATIONS GROUP PROFIT DRIVERS CONTINUING OPERATIONS EX L/N FY20 v FY19 $m PBP NPAT 6,470 Total Group ex Large / Notable -1% -21% Divisional performance Australia Retail & Commercial -7% -26% -1,308 -14 Institutional +29% +4% -87 New Zealand Division (NZ
Slide 19: Net Interest Margin
NET INTEREST MARGIN CONTINUING OPERATIONS GROUP NET INTEREST MARGIN (NIM) bps 169 -6 2 159 0 -3 157 -2 -1 -2 -10bps -12bps 1H20 Impact of rates Asset & Liquidity Wholesale Asset pricing 2H20 Markets Large / 2H20 net of repricing deposit mix funding & underlying1 Balance Sheet Notable items deposit p
Slide 20: Margin Considerations
MARGIN CONSIDERATIONS LOW RATE ENVIRONMENT CONSIDERATIONS $b ~234 • Continued impact of low rates on replicating ~203 ~55 portfolio ~163 ~53 ~53 ~179 • Central bank actions ~150 ~110 Sep-19 Mar-20 Sep-20 • Changes in business and deposit mix Low rate deposits <25bps Capital (excluding intangibles) a
Slide 21: Australia Retail & Commercial
AUSTRALIA RETAIL & COMMERCIAL CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS INCOME CONTRIBUTION HOME LOAN BALANCE & LENDING FLOWS1 $m $b 12 7 23 275 264 78 -31 4,683 -6 -11 -178 4,523 Mar-20 New sales Net OFI Refi. Redraw Repay/ Sep-20 -43 & Int. Other NET LOANS & ADVANCES $b 337 332 330 339
Slide 22: Institutional
INSTITUTIONAL CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS INSTITUTIONAL INCOME COMPOSITION1 MARKETS INCOME COMPOSITION 1,508 $m $m 131 1,164 24 468 940 238 3,060 826 256 48 2,791 190 388 438 235 126 2,657 2,541 459 463 513 471 1,508 -10 940 1,164 826 1H19 2H19 1H20 2H20 Franchise Sales Fra
Slide 23: Expenses
EXPENSES CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS EXPENSE DRIVERS $m BAU costs down $281m (absorbing inflation of $128m) 321 8,614 47 8,574 8,527 -172 -42 -26 -41 flat +1% FY19 FX FY19 Personnel Premises Technology Other Investment FY20 FX adjusted 22
Slide 24: Investment Spend
INVESTMENT SPEND CONTINUING OPERATIONS EXPENSED & CAPITALISED BY CATEGORY $m $m 939 939 825 833 833 115 24% 825 62 85 95 24% 32% 119 75 578 151 578 33 163 186 27% 77 132 78 94 76% 111 86 76% 68% 35 93 78 73% 66 360 310 315 255 1H19 2H19 1H20 2H20 1H19 2H19 1H20 2H20 Investment Expensed Investment Ca
Slide 25: Provision Charge & Balance
PROVISION CHARGE & BALANCE CONTINUING OPERATIONS TOTAL PROVISION CHARGE COLLECTIVE PROVISION BALANCE $m $m 5,008 1,674 80 4,501 570 50 541 3,378 3,376 1,513 43 38 1,048 1,064 369 374 1,590 1,132 1,169 669 393 402 2,845 13 4 2,320 626 1,834 1,795 380 398 395 1H19 2H19 1H20 2H20 Mar-19 Sep-19 Mar-20 S
Slide 26: Collective Provision Charge & Balance
COLLECTIVE PROVISION CHARGE & BALANCE CONTINUING OPERATIONS DRIVERS $m 2H20 CP charge: $669m (3Q: $236m 4Q: $433m) 1H20 CP charge: $1,048m 685 5,008 1,124 4,501 46 44 -93 -162 -106 3,376 77 0 17 Sep-19 FX Volume / Change Economic Additional Mar-20 FX Volume / Change Economic Additional Sep-20 Mix in
Slide 27: Capital & Dividends
CAPITAL & DIVIDENDS IMPACT OF CREDIT PORTFOLIO MIGRATION RWA IMPACT ON CAPITAL PREVIOUS EXPECTATION1 CURRENT EXPECTATION Base case Base case Downside Total CET1 impact (FY20 & FY21) ~110bps ~65bps ~100bps - FY20 CET1 (actual) 18bps 18bps - FY21 CET1 ~50bps ~82bps Drivers of CET1 impact2 - Institutio
Slide 28: Group & Divisional Financial Performance
2020 FULL YEAR RESULTS INVESTOR DISCUSSION PACK GROUP & DIVISIONAL FINANCIAL PERFORMANCE
Slide 29: Financial Performance
FINANCIAL PERFORMANCE CONTINUING OPERATIONS FY20 CASH PROFIT DRIVERS $m Profit before provisions Cash NPAT EXCLUDING LARGE / NOTABLE ITEMS FY20 FY20 v FY19 FY20 FY20 v FY19 $m Continuing operations 8,369 -16% 3,758 -42% 6,701 Large/Notable items (L/N) -1,746 Large -1,539 Large -14 -87 631 5,297 Cont
Slide 30: Large / Notable Items
LARGE / NOTABLE ITEMS $m FY19 FY20 1H20 2H20 TOTAL -231 -1,539 -1,011 -528 Divestments 308 23 27 -4 Gain/(Loss) on sale from divestments 205 -34 -34 Divested business results 103 57 27 30 Customer remediation -475 -279 -91 -188 Restructuring -54 -115 -74 -41 Accelerated software amortisation -138 -1
Slide 31: Total Operating Income
TOTAL OPERATING INCOME CONTINUING OPERATIONS TOTAL INCOME BY DIVISION NET INTEREST INCOME BY DIVISION OTHER OPERATING INCOME $b $b $b Continuing Continuing ex L/N Continuing Continuing ex L/N Continuing Continuing ex L/N -7% 0% -2% -2% -21% 19.4 19.0 18.7 18.7 17.8 0.8 0.6 14.5 14.3 14.0 14.3 14.1 4
Slide 32: Expense Management
EXPENSE MANAGEMENT CONTINUING OPERATIONS TOTAL EXPENSES BY DIVISION TOTAL EXPENSES BY CATEGORY FULL TIME EQUIVALENT STAFF $b $b 000s Continuing Continuing ex L/N Continuing Continuing ex L/N Continuing +3% +1% +3% +1% 0% 9.4 9.4 8.5 8.6 9.1 9.4 9.4 8.5 8.6 37.9 37.6 37.5 9.1 1.1 1.2 1.3 1.0 1.1 1.1
Slide 33: Customer Remediation
CUSTOMER REMEDIATION CUSTOMER REMEDIATION CUMULATIVE CUSTOMER REMEDIATION CONTINUING OPERATIONS CONTINUING & DISCONTINUED OPERATIONS 2,088 PRE TAX $m PRE TAX $m 1,832 1,579 548 485 546 422 928 753 181 256 1,540 119 1,157 1,286 153 220 672 51 572 352 29 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 86 1,59
Slide 34: Investments in Associates
INVESTMENTS IN ASSOCIATES SHARE OF ASSOCIATES’ PROFIT $m $223m excl. large / 800 625 notable items 600 482 517 541 465 433 436 395 400 300 262 183 155 200 0 -200 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Bank of Tianjin (BOT) Shanghai Rural Commercial Bank (SRCB) Other3 P.T. Bank P
Slide 35: Investment Spend
INVESTMENT SPEND CONTINUING OPERATIONS TOTAL INVESTMENT SPEND1 CAPITALISED SOFTWARE BALANCE2 Capex and Opex $m $m 1,772 2,893 1,403 24% 2,202 1,234 1,153 1,179 1,218 1,856 30% 41% 35% 1,421 1,323 42% 67% 1,039 76% 70% 58% 59% 65% 33% FY15 FY16 FY17 FY18 FY19 FY20 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 S
Slide 36: Risk Adjusted Performance
RISK ADJUSTED PERFORMANCE CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS1 GROUP2,3 AUSTRALIA R&C INSTITUTIONAL2,3 NEW ZEALAND3 NET INTEREST INCOME / AVERAGE CREDIT RISK WEIGHTED ASSETS % 5.86 5.81 5.88 5.68 5.38 5.32 4.54 4.74 4.43 4.47 4.23 3.96 2.33 2.24 2.07 1.90 1H19 2H19 1H20 2H20 1H19 2
Slide 37: Risk Adjusted Return
RISK ADJUSTED RETURN CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS1 GROUP2 AUSTRALIA R&C INSTITUTIONAL2 NEW ZEALAND2 PROFIT BEFORE PROVISIONS / AVERAGE TOTAL RISK WEIGHTED ASSETS (%) % 3.71 3.64 3.64 3.45 3.54 3.24 2.68 2.93 2.54 2.40 2.66 2.33 1.88 1.65 1.64 1.47 1H19 2H19 1H20 2H20 1H19 2H
Slide 38: Divisional Performance
DIVISIONAL PERFORMANCE CONTINUING OPERATIONS EX LARGE / NOTABLE ITEMS NET LOANS & ADVANCES CUSTOMER DEPOSITS REVENUE EXPENSES $b $b $b $b 612 617 602 1 3 18.9 18.7 18.7 4 552 0.6 0.8 0.6 108 114 117 3 512 485 4 3.1 3.2 3.1 91 83 79 149 165 158 5.0 5.2 5.9 8.5 8.5 8.6 223 0.9 1.0 1.1 205 217 1.1 1.2
Slide 39: Australia Retail & Commercial
AUSTRALIA RETAIL & COMMERCIAL CASH PROFIT DRIVERS: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS FY20 CASH PROFIT DRIVERS $m Net Interest Income (NII) 192 198 3,581 -132 -437 400 2,658 -190 -19 -935 -2% -14% +1% +131% -26% -26% FY19 Retail Retail Commercial Commercial Other Expenses Provisio
Slide 40: Australia Retail & Commercial
AUSTRALIA RETAIL & COMMERCIAL FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS Balance sheet Income Expenses / FTE Credit Quality / RWAs Profit and Returns NLAs1 ($b) & NIM NII/OOI2 contribution ($m) Expenses ($m) Total Provisions ($m) Cash Profit ($m) FY19 FY20 FY19 FY20
Slide 41: Australia Retail
AUSTRALIA RETAIL CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS INCOME MARKET SHARE1 $m % 3,217 3,244 3,214 3,152 18.2 18.1 18.2 14% 14% 13% 12% 14.7 14.5 14.8 14.3 14.0 14.4 13.4 13.3 13.6 86% 86% 87% 88% 1H19 2H19 1H20 2H20 Housing Housing Housing Credit Cards (Total) (Owner occupier) (Inve
Slide 42: Australia Commercial
AUSTRALIA COMMERCIAL CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS INCOME RISK WEIGHT INTENSITY $m $b 65.7% 1,590 1,524 64.7% 64.7% 1,469 63.7% 15% 1,371 16% 15% 16% 70.7 70.3 71.2 71.3 52.0 52.9 53.5 53.7 85% 84% 85% 84% 1H19 2H19 1H20 2H20 1H19 2H19 1H20 2H20 Net Interest Income Other Oper
Slide 43: Institutional
INSTITUTIONAL CASH PROFIT DRIVERS: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS FY20 CASH PROFIT DRIVERS $m Total income 906 5 95 1,852 26 1,930 -30 -696 -218 -10 +13% -4% Large -3% +4% FY19 Trade1 PCM1 Corporate Markets Other Expenses Provisions Tax FY20 Finance 2H20 CASH PROFIT DRIVERS $m
Slide 44: Institutional
INSTITUTIONAL FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS Balance sheet Income Expenses / FTE Credit Quality / RWAs Profit and Returns NLAs1 ($b) & NIM Customer & Non-customer ($m) Expenses ($m) Total Provisions ($m) Cash Profit ($m) FY19 FY20 FY19 FY20 FY19 FY20 FY1
Slide 45: Institutional
INSTITUTIONAL CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS INSTITUTIONAL INCOME COMPOSITION1 NET LOANS & ADVANCES1,2 $m $m 190 152 162 158 3,060 2,791 122 2,657 107 109 111 2,541 20 18 19 14 1,508 26 34 48 32 940 1,164 0 0 0 0 826 Mar-19 Sep-19 Mar-20 Sep-20 CF Transaction Banking Markets O
Slide 46: Institutional
INSTITUTIONAL CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS MARKETS INCOME COMPOSITION DRIVERS OF FRANCHISE TRADING REVENUE GROWTH $m 1,508 1. Customer-led revenue growth resulting from supporting customer hedging activity, while the market was trading at wider bid-offer spreads 131 2. Reven
Slide 47: Risk Weighted Assets & Risk Adjusted Returns
INSTITUTIONAL RISK WEIGHTED ASSETS & RISK ADJUSTED RETURNS: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS CREDIT RWA (EOP) CREDIT RWA (AVG)1 CREDIT RWA INTENSITY (EOP) $b $b $b 159 167 178 6 142 147 34.5% 157 42 34.0% 33.5% -9 41 33.1% 33.0% 32.8% -3 33 35 -15 17 18 18 19 156 178 157 89 91 9
Slide 48: New Zealand Division
NEW ZEALAND DIVISION CASH PROFIT DRIVERS: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS FY20 CASH PROFIT DRIVERS NZDm Net interest income (NII) 86 1,460 10 12 9 -139 -88 123 1,144 -65 -264 -1% -15% 5% Large -22% -22% FY19 Retail Retail Commercial Commercial Other net Other Expenses Provision
Slide 49: New Zealand Division
NEW ZEALAND DIVISION FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS Balance sheet Income Expenses / FTE Credit Quality / RWAs Profit and Returns NLAs1 (NZDb) & NIM NII/OOI2 contribution (NZDm) Expenses (NZDm) Total Provisions (NZDm) Cash Profit (NZDm) FY19 FY20 FY19 FY2
Slide 50: New Zealand Geography
NEW ZEALAND GEOGRAPHY PROFIT & LOSS / BALANCE SHEET DEPOSITS & WHOLESALE FUNDING Half Year Full Year NZDb Sep-20 NZDm 1H20 2H20 FY19 FY20 TOTAL DEPOSITS 120.9 Operating Income 1,992 2,057 4,326 4,049 Retail & Commercial (New Zealand Division) 98.3 Term deposits 41.4 Net Interest Income 1,648 1,581 3
Slide 51: Treasury
2020 FULL YEAR RESULTS INVESTOR DISCUSSION PACK TREASURY
Slide 52: Regulatory Capital
REGULATORY CAPITAL CAPITAL UPDATE Level 2 CET1 ratio of 11.3% (~11.4% pro-forma) and 16.7% on an Internationally Comparable basis1), which is well in excess of ‘Unquestionably Strong’ benchmark2 APRA LEVEL 2 COMMON EQUITY TIER 1 RATIO (CET1) Credit impacts of -29bps for the half; % Comprises $
Slide 53: Regulatory Capital
REGULATORY CAPITAL APRA LEVEL 1 CET1 RATIO % Level 2: Level 2: APRA LEVEL 2 VS LEVEL 1 CET1 RATIOS Bps 10.76 11.34 11.35 0.71 Level 2 HoH mvmt 58 0.14 0.14 11.20 Level 1 HoH mvmt 56 -0.16 -0.04 Level 2 vs Level 1 Mvmt 2 -0.07 -0.16 Explained by Cash Profit1 10 Total impact of -27bps Asset Divestment
Slide 54: Internationally Comparable Regulatory Capital Position
INTERNATIONALLY COMPARABLE1 REGULATORY CAPITAL POSITION APRA Level 2 CET1 Ratio– 30 September 2020 11.3% Level 2 CET1 Ratio Corporate undrawn EAD Australian ADI unsecured corporate lending LGDs and undrawn and unsecured CCFs exceed those applied in many jurisdictions 1.7% % LGD adjustments Equity AP
Slide 55: CET1 and Leverage in a Global Context
CET1 AND LEVERAGE IN A GLOBAL CONTEXT CET1 RATIOS1,2 LEVERAGE RATIOS1,2,3 0% 5% 10% 15% 20% 25% 0% 1% 2% 3% 4% 5% 6% 7% 8% SEB OCBC Svenska Handelsbanken Swedbank UOB ABN Amro Intesa Sanpaolo CET1 Danske Bank DBS Regulators globally have ANZ Erste Bank Leverage provided specific COVID-19 Rabobank
Slide 56: Balance Sheet Structure
BALANCE SHEET STRUCTURE1 BALANCE SHEET COMPOSITION NSFR COMPOSITION ~$106b surplus of ASF above Sep-20 Sep-20 regulatory minimum $b 551 Wholesale Funding & Other4 445 Non Financial Liquids Short Term Wholesale Debt & Corporates and Other Assets5 Other Funding2 Liquid and Other Assets 23% (-5% HoH) O
Slide 57: Liquidity Coverage Ratio Summary
LIQUIDITY COVERAGE RATIO (LCR) SUMMARY1 LCR COMPOSITION (AVERAGE) MOVEMENT IN AVERAGE LCR SURPLUS4 ($b) FY20 $b 214 Internal RMBS Other ALA2 FY19 FY20 HQLA2 Avg. LCR 140% Avg. LCR 139% 34 -2 154 0 -11 60 Wholesale funding 54 -6 HQLA1 -9 Customer deposits & other3 Liquid Assets Net Cash Outflow FY19
Slide 58: 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 • RBA Term Funding Facility (TFF) Initial Allocation of $12b fully drawn in 2H20. Remaining TFF comprises Supplementary and Additional Alloca
Slide 59: ANZ's Tier 2 Capital Profile
ANZ’S TIER 2 CAPITAL PROFILE1 ANZ’S TIER 2 CAPITAL REQUIREMENT TO PROGRESSIVELY TIER 2 CAPITAL INCREASE TO MEET TLAC REQUIREMENT Notional amount • Issued AUD $7.0b since July 2019 across AUD, EUR, and USD By Format By Currency • FY21 T2 issuance expected to be ~$4-5b • Required portfolio increase fr
Slide 60: Impacts of Rate Movements
IMPACTS OF RATE MOVEMENTS BILLS/OIS SPREAD CAPITAL & REPLICATING CAPITAL2 & REPLICATING DEPOSITS PORTFOLIO DEPOSITS PORTFOLIO bps (AUSTRALIA) % 50 3.0 45 AUST NZ APEA 40 2.5 35 Volume ($A) ~75b ~27b ~10b 30 2.0 25 Volume change (YoY) ~15b increase ~7b increase Flat 20 1.5 15 Target Duration Rolling
Slide 61: Capital Framework
CAPITAL FRAMEWORK CURRENT REGULATORY PROPOSALS AND RECENT REVISED IMPLEMENTATION DATES1 Original Revised 2019 1H20 2H20 1H21 2H21 Implementation Implementation Date Date RBNZ Capital Framework Finalise 2027 20282 Leverage ratio Finalise 2022 2023 Standardised Approach to Consultation Consultation /
Slide 62: Liquidity and Funding Environment
LIQUIDITY AND FUNDING ENVIRONMENT CURRENT EXCESS LIQUIDITY IS LIKELY TO PERSIST DECLINING FUNDING GAP1 ACROSS AUSTRALIAN SYSTEM $b • Large increase in deposits in 2H20 led to a significant Funding Gap 1 750 reduction (10x higher than a full year during the GFC) across the Australian system 700 • In
Slide 63: Customer Support (COVID-19)
2020 FULL YEAR RESULTS INVESTOR DISCUSSION PACK CUSTOMER SUPPORT (COVID-19)
Slide 64: Overview
OVERVIEW AUSTRALIA & NZ HOME LOAN AND AUSTRALIA BUSINESS LOAN PORTFOLIO & ACTIVE LOAN DEFERRALS Total ANZ Total active ACTIVE LOAN DEFERRALS1 Portfolio deferrals1 End of month net position (30 Sep-20) (15 Oct-20) Account numbers (000s) Home loans – Australia 125 124 124 Total number of home loans 1,
Slide 65: COVID-19 Customer Support Measures: Home Loan Deferrals
COVID-19 CUSTOMER SUPPORT MEASURES AUSTRALIA – HOME LOAN DEFERRALS PORTFOLIO SUMMARY Accounts DEFERRAL ROLL-OFF SUMMARY 1,008k ACTIVE LOAN DEFERRALS1 ~55k loans have completed / exited the 6 month deferral period or advised intended action as at 15 End of month net position October 2020 Accounts (00
Slide 66: COVID-19 Customer Support Measures: Home Loan Deferral Metrics
COVID-19 CUSTOMER SUPPORT MEASURES AUSTRALIA – HOME LOAN DEFERRAL METRICS1 Loan repayment deferrals Total AUS. Total Active deferrals Home Loan Of the current ~40k active 6 month loan deferrals: Portfolio 31 Jul 2020 15 Oct 2020 (30 Sep 2020) • ~ 25% have made at least one payment while on deferral
Slide 67: COVID-19 Customer Support Measures: Portfolio Profiles
COVID-19 CUSTOMER SUPPORT MEASURES AUSTRALIA – HOME LOAN DEFERRALS – PORTFOLIO PROFILES REPAYMENT PROFILE LOAN PURPOSE (% of accounts) (% of accounts)3,4 1,008k ~40k1 ~11k accounts accounts accounts 7% 3% 5% 9% 0% 0% 29% 25% 26% 93% 97% 95% 65% 71% 75% Total housing portfolio Initial 6 month deferra
Slide 68: COVID-19 Customer Support Measures: Commercial Business Loan Deferrals
COVID-19 CUSTOMER SUPPORT MEASURES AUSTRALIA – COMMERCIAL BUSINESS LOAN DEFERRALS PORTFOLIO SUMMARY Accounts DEFERRAL ROLL-OFF SUMMARY4 236k ACTIVE LOAN DEFERRALS1 $6.8b loans (~15k accounts) have completed / exited the 6 month deferral period or advised intended action End of month net position as
Slide 69: COVID-19 Customer Support Measures: Commercial Loan Deferral Metrics
COVID-19 CUSTOMER SUPPORT MEASURES AUSTRALIA – COMMERCIAL LOAN DEFERRAL METRICS 31 July 2020 15 October 2020 All customers are contacted 4-6 weeks pre-expiry. Those with a relationship Assistance Provided Accounts EAD4 Accounts EAD5 manager and any customer deemed ‘at risk’ also receive a phone call
Slide 70: COVID-19 Customer Support Measures: Business Loan Deferral Profiles
COVID-19 CUSTOMER SUPPORT MEASURES AUSTRALIA – COMMERCIAL BUSINESS LOAN DEFERRALS PORTFOLIO PROFILES BUSINESS LOAN DEFERRALS PROVIDED1 BY SECURITY PROFILE (% OF EAD)2 BY STATE (% OF EAD)3 BY INDUSTRY (% OF EAD) $68b $4b $0.6b $68b $4b $0.6b $68b $4b $0.6b 5% 1% 1% 1% 3% 6% 8% 12% 6% 6% 5% 13% 9% 27%
Slide 71: COVID-19 Customer Support Measures: New Zealand
COVID-19 CUSTOMER SUPPORT MEASURES NEW ZEALAND PORTFOLIO SUMMARY • Financial support provided to ~43,000 personal, home and Accounts business loans customers through repayment deferrals, 529k moving to interest only, or loan adjustments covering NUMBER OF ACTIVE HOME LOANS WITH REPAYMENTS DEFERRED l
Slide 72: COVID-19 Customer Support Measures: NZ Housing Deferral Profiles
COVID-19 CUSTOMER SUPPORT MEASURES NEW ZEALAND HOUSING REPAYMENT DEFERRAL PORTFOLIO PROFILES REPAYMENT PROFILE LOAN PURPOSE LOAN TO VALUE RATIO (% of accounts) (% of accounts) (% of accounts)1 529k 10k 529k 10k 529k 10k accounts accounts accounts accounts accounts accounts 3% 2% 2% 7% 21% 18% 25% 25
Slide 73: Customer Support (COVID-19) Footnote References
CUSTOMER SUPPORT (COVID-19) Page Footnote reference OVERVIEW 1. ‘Home Loans – Australia’, ‘Home Loans – New Zealand’ and ‘Business Loans – Australia’ numbers exclude accounts due to expire / exit where customers have already confirmed they will recommence repayment Australia & New Zealand Home loan
Slide 74: Risk Management
2020 FULL YEAR RESULTS INVESTOR DISCUSSION PACK RISK MANAGEMENT
Slide 75: Long Run Provisions & Loss Rates
RISK MANAGEMENT LONG RUN PROVISIONS & LOSS RATES TOTAL CREDIT IMPAIRMENT CHARGE $m 1,800 1,500 1,200 900 600 300 0 -300 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 Consumer IP Commercial IP Institutional IP CP Char
Slide 76: Individual Provision Charge
RISK MANAGEMENT INDIVIDUAL PROVISION CHARGE INDIVIDUAL PROVISION CHARGE INDIVIDUAL PROVISION CHARGE BY DIVISION $m $m 1,047 1,047 892 82 787 892 554 81 787 626 826 398 435 86 430 343 626 395 922 380 339 554 1 969 210 812 79 592 807 61 272 612 594 500 61 55 430 343 380 398 395 532 43 495 28 3115 5 35
Slide 77: Collective Provision Balance & Charge
RISK MANAGEMENT COLLECTIVE PROVISION BALANCE & CHARGE MOVEMENT IN COLLECTIVE PROVISION BALANCE YOY COLLECTIVE PROVISION CHARGE $m Collective Provision Charge 592 5,008 $m 1H19 2H19 1H20 2H20 1,018 CP charge 13 4 1,048 669 3,376 46 61 Volume/Mix -28 -51 0 46 -85 Change in Risk -40 19 17 44 $1,717m Ec
Slide 78: Collective Provision (CP) Balance
RISK MANAGEMENT COLLECTIVE PROVISION (CP) BALANCE CP BALANCE BY CATEGORY CP BALANCE BY DIVISION $m 1.39% $m 5,008 1.17% 4,501 0.94% 80 4,501 5,008 50 570 3,376 541 11 696 3,376 38 1,513 374 1,590 104 1,169 4,490 4,312 3,272 2,845 1,795 2,320 Sep-19 Mar-20 Sep-20 Sep-19 Mar-20 Sep-20 Modelled ECL Add
Slide 79: Portfolio Composition and Coverage Ratios
RISK MANAGEMENT PORTFOLIO COMPOSITION AND COVERAGE RATIOS PORTFOLIO COMPOSITION Sovereign Bank Corporate Resi. Mortgage Retail1 Other Gross loans & advances Credit RWA Exposure at default Exposure at default Expected credit loss (Ex. Sovereign & Bank) (Collective Provision balance) $1,010.4b $5.0b 1
Slide 80: Expected Credit Loss
EXPECTED CREDIT LOSS ECONOMIC SCENARIOS – MODELLED OUTCOMES Downside Scenario COLLECTIVE PROVISION BALANCE SCENARIOS5,6 ECONOMIC SCENARIOS BASE CASE1 Characterisation2 Weightings are applied to scenarios to determine CP balance 30 SEP-20 CY2020 CY2021 CY2022 CY2021 CY2022 Sep-20 11% 50% 33% 6% AUSTR
Slide 81: Impaired Assets
RISK MANAGEMENT IMPAIRED ASSETS CONTROL LIST NEW IMPAIRED ASSETS BY DIVISION Index Sep 09 = 100 $m 150 2,000 1,784 1,844 1,787 1,570 1,500 1,425 100 1,145 1,117 1,219 963 890 1,000 50 500 0 0 Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H2
Slide 82: Risk Weighted Asset and Exposure at Default (EAD)
RISK MANAGEMENT RISK WEIGHTED ASSET AND EXPOSURE AT DEFAULT (EAD) – DIVISIONAL VIEW TOTAL RISK WEIGHTED ASSETS CREDIT RWA DRIVERS $b $b 449 429 2.7 417 48 360.0 358.1 6.5 396 396 48 -1.0 391 47 15 37 38 -3.1 -0.5 38 22 12 -2.7 16 16 13 178 156 157 141 139 144 Sep-19 FX Volume UDC Risk Model / CVA (i
Slide 83: Risk Weighted Assets (RWA) & Exposure at Default (EAD)
RISK WEIGHTED ASSETS (RWA) & EXPOSURE AT DEFAULT (EAD) EAD COMPOSITION1 EAD & CRWA MOVEMENT $b $b (Mar-20 movement vs Sep-20) FX Adjusted 1,075 14.3 8.9 4.2 5% 1,010 968 977 5% -0.5 -0.9 -1.2 -0.4 -0.2 944 5% 930 6% 5% 5% -16.2 7% 6% 4% 4% 4% 4% -42.1 30% Aus HL Aus. Non HL NZ Other Institutional 28
Slide 84: Total Portfolio Composition
RISK MANAGEMENT TOTAL PORTFOLIO COMPOSITION % of Portfolio in Non Portfolio Balance EXPOSURE AT DEFAULT (EAD) DISTRIBUTION Category % of Group EAD Performing in Non Performing Sep-19 Mar-20 Sep-20 Sep-19 Mar-20 Sep-20 Sep-20 TOTAL GROUP EAD (Sep-20) Consumer Lending 37.6% 34.6% 37.6% 0.1% 0.2% 0.2%
Slide 85: Segments of Interest
RISK MANAGEMENT SEGMENTS OF INTEREST COMMERCIAL PROPERTY OUTSTANDINGS BY REGION • Growth in the portfolio over the last 5 years has been focused in Australia. At the same time commercial property lending in New Zealand has only increased marginally and APEA has declined $b 7.6% significantly. 6.6% 6
Slide 86: Institutional & Commercial Portfolio
RISK MANAGEMENT INSTITUTIONAL & COMMERCIAL PORTFOLIO Credit Related EXPOSURE AT DEFAULT (EAD) DISTRIBUTION Category GLA Commitments and Contingencies EAD (Sep-20) ($b) ($b) = $630b1 Finance, Investment & Insurance 55 49 Property Services 55 17 9.6% Manufacturing 27 41 Agriculture, Forestry, Fishing
Slide 87: Exposure to Industries More Impacted by Downgrades During COVID-19
RISK MANAGEMENT EXPOSURE TO SOME INDUSTRIES MORE IMPACTED BY DOWNGRADES DURING THE COVID-19 PANDEMIC1,2 TOTAL GROUP EAD RETAIL TRADE ACCOMMODATION, CAFES & RESTAURANTS All exposures on an EAD basis in $b 11.4 10.6 13.9 13.9 4% 4% $1,010b (Sep-20) 49% 20% 19% 53% 28% 30% 51% 47% 48% 47% Mar-20 Sep-20
Slide 88: ANZ Institutional Portfolio
RISK MANAGEMENT ANZ INSTITUTIONAL PORTFOLIO INSTITUTIONAL PORTFOLIO SIZE & TENOR BY COUNTRY OF ANZ INSTITUTIONAL INDUSTRY COMPOSITION INCORPORATION1 (EAD2) EAD (Sep-20): A$454.9b2 $b Finance (Banks and Central Banks) 450 Government Admin. 25% 28% Services to Fin. & Ins. 400 Property Services3 2% Bas
Slide 89: ANZ Asian Institutional Portfolio
RISK MANAGEMENT ANZ ASIAN INSTITUTIONAL PORTFOLIO (COUNTRY OF INCORPORATION1) COUNTRY OF INCORPORATION1 ANZ ASIA INDUSTRY COMPOSITION EAD (Sep-20): A$99b2 EAD (Sep-20): A$99b2 16% China Finance (Banks & Central Banks) 10% Japan 20% Basic Material Wholesaling 7% Singapore Machinery & Equip Mnfg Hong
Slide 90: Australian Commercial Banking Portfolio Dynamics
RISK MANAGEMENT AUSTRALIAN COMMERCIAL BANKING1 PORTFOLIO DYNAMICS PROVISION CHARGE BOOK COMPOSITION (NET LOANS & ADVANCES) $m $b 57.1 57.1 57.1 57.1 2.0 2.0 2.3 2.5 250 291 14.3 13.8 13.0 12.3 11 40.8 41.3 41.8 42.3 155 169 162 123 -15 1H19 2H19 1H20 2H20 Mar-19 Sep-19 Mar-20 Sep-20 Collective Provi
Slide 91: Housing Portfolio
2020 FULL YEAR RESULTS INVESTOR DISCUSSION PACK HOUSING PORTFOLIO
Slide 92: Australia Home Loans: Portfolio Overview
AUSTRALIA HOME LOANS PORTFOLIO OVERVIEW (UNLESS OTHERWISE STATED METRICS ARE BASED ON BALANCES) Portfolio1 Flow2 Portfolio1 FY18 FY19 FY20 FY19 FY20 FY18 FY19 FY20 Number of Home Loan Average LVR at Origination7,8,9 67% 67% 69% 1,011k 983k 1,008k 119k3 170k3 accounts1 Average Dynamic LVR (excl. offs
Slide 93: Australia Home Loans: Portfolio Growth
AUSTRALIA HOME LOANS PORTFOLIO GROWTH HOME LOAN FUM COMPOSITION1,2 LOAN BALANCE & LENDING FLOWS1 $b $b 14 271 272 275 13 269 36 264 265 264 6 9 8 8 275 9 7 7 21 265 -53 37 31 26 22 8 43 49 10 17 14 22 60 29 57 33 52 54 49 Sep-19 New Sales Net OFI Refi Redraw & Repay / Other Sep-20 44 excl. Refi-In I
Slide 94: Australia Home Loans: Portfolio and Flow Composition
AUSTRALIA HOME LOANS PORTFOLIO1,2 & FLOW3 COMPOSITION (% of TOTAL PORTFOLIO BALANCES) BY PURPOSE BY ORIGINATION LVR4 Portfolio Flow Flow 3% 3% 2% 1% 18% 17% 16% 32% 30% 30% 29% 17% 16% 18% 65% 67% 68% 70% 65% 67% 66% Sep-18 Sep-19 Sep-20 FY20 FY18 FY19 FY20 Owner Occupied Investor Equity Manager <80
Slide 95: Australia Home Loans: Portfolio Dynamics
AUSTRALIA HOME LOANS PORTFOLIO DYNAMICS HOME LOANS REPAYMENT PROFILE1,2 HOME LOANS ON TIME & <1 MONTH AHEAD PROFILE1,2,3 72% of accounts ahead of repayments % composition of accounts (Sep-20) 31% 0 1 14 16 13 Active COVID-19 deferrals 26% 26 25 30 New Accounts: Less than 6 months old Structural: Loa
Slide 96: Australia Home Loans: Dynamic Loan to Value Ratio
AUSTRALIA HOME LOANS PORTFOLIO DYNAMICS DYNAMIC LOAN TO VALUE RATIO BASED ON TOTAL PORTFOLIO ACCOUNTS 1,2,3,4,5 % of total Portfolio Accounts >90% 60 Net of offset balances 50 • 6.9% of portfolio 40 • 55% ahead of repayments 30 • 51% with LMI 20 NEGATIVE EQUITY 10 Net of offset balances 0 0-60% 61-7
Slide 97: Australia Consumer Portfolio
AUSTRALIA CONSUMER PORTFOLIO PORTFOLIO PERFORMANCE PRODUCT 90+ DAY DELINQUENCIES1,2,4 HOME LOAN DELINQUENCIES1,2,3,4 % of Total Portfolio Balances % of Portfolio Segment Balances 5.0 2.5 4.0 2.0 3.0 1.5 2.0 1.0 1.0 0.5 0.0 0.0 Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- 15 16 17
Slide 98: Lenders Mortgage Insurance
LENDERS MORTGAGE INSURANCE SEPTEMBER FULL YEAR 2020 RESULTS LMI & REINSURANCE STRUCTURE Australian Home Loan portfolio LMI and Reinsurance Structure at 30 Sep 20 (% New Business FUM Oct-19 to Sep-20) Gross Written Premium ($m) $96.5m LVR<80% Not LMI Insured Net Claims Paid ($m) $41.6m 87% Loss Rate
Slide 99: Stress Testing Tail Risk in the Australian Mortgage Portfolio
STRESS TESTING TAIL RISK IN THE AUSTRALIAN MORTGAGE PORTFOLIO • ANZ conducts regular stress tests of its loan portfolios to meet risk management objectives Assumptions Year 1 Year 2 Year 3 and satisfy regulatory requirements. Unemployment 9% 12% 13.2% rate • Stress tests are highly assumption-driven
Slide 100: New Zealand Home Loans
NEW ZEALAND HOME LOANS PORTFOLIO OVERVIEW1 Portfolio Flow Portfolio FY18 FY19 FY20 FY19 FY20 FY18 FY19 FY20 Number of Home Loan Accounts 526k 527k 529k 118k 105k Average LVR at Origination 58% 56% 58% Total FUM NZD81b NZD85b NZD90b NZD19b NZD20b Average Dynamic LVR3 41% 42% 41% Average Loan Size NZD
Slide 101: New Zealand Home Loans: Lending & Arrears Trends
NEW ZEALAND HOME LOANS HOME LENDING & ARREARS TRENDS1 NZ DIVISION 90+ DAYS DELINQUENCIES HOUSING FLOWS HOUSING PORTFOLIO % 1.5 18% 15% 13% 1.0 39% 40% 42% 0.5 82% 85% 87% 61% 60% 58% 0.0 Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- Sep- FY18 FY19 FY20 Sep-18 Sep-19 Sep-20 09 10 11 12 13 14
Slide 102: Corporate Overview and Environment, Social & Governance (ESG)
2020 FULL YEAR RESULTS INVESTOR DISCUSSION PACK CORPORATE OVERVIEW AND ENVIRONMENT, SOCIAL & GOVERNANCE (ESG)
Slide 103: Corporate Profile
CORPORATE PROFILE CORPORATE PROFILE OUR LARGEST BUSINESS FULL YEAR 2020 CASH PROFIT ($m)2 • Founded in 1835 and headquartered in Melbourne • Top 7 listed corporate in Australia and the largest bank in New Zealand by bank market share INSTITUTIONAL Providing products, services and solutions to global
Slide 104: Shareholder Returns
SHAREHOLDER RETURNS 10 YEAR PERFORMANCE EARNINGS PER SHARE1 DIVIDEND PER SHARE cents cents 260 260 178 181 238 237 164 160 160 160 160 218 219 217 145 203 200 140 129 60 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 SHARE PRICE DIVIDEND PAYOUT RA
Slide 105: Our Purpose
OUR PURPOSE One of the ways we are bringing our purpose to life is through helping to act on complex issues that matter to society and are core to our business strategy. A commitment to fair and responsible banking underpins our approach. CHOICES ABOUT WHO WE SERVE CHOICES ABOUT HOW WE OPERATE • WHO
Slide 106: Creating Value for Our Stakeholders
CREATING VALUE FOR OUR STAKEHOLDERS CUSTOMERS COMMUNITY • >8.5m total retail, commercial • ~$140m contributed in and Institutional customers community investment3 EMPLOYEES SHAREHOLDERS • $326b in retail & commercial • 66,402 volunteering hours customer deposits in Australia • 38,579 people employed
Slide 107: Snapshot of FY20 ESG Target Performance
SNAPSHOT OF FY20 ESG TARGET PERFORMANCE Our ESG targets support 11 of the 17 United Nations Sustainable Development Goals. This year we have achieved or made good progress against 79%* of our targets, and not achieved 21%*. Achieved In progress / partially Not achieved achieved ESG target Progress O
Slide 108: Sustainability Performance Trends
SUSTAINABILITY PERFORMANCE TRENDS COMMUNITY INVESTMENT1 MONEYMINDED & SAVER PLUS SUSTAINABLE SOLUTIONS $50B TARGET³ Total community investment ($m) Estimated # of people reached Funded and facilitated ($b) 142 140 88,308 90,724 9.08 131 137 80,074 7.6 0.06 65,549 4.6 1.45 61,367 90 4.5 2.4 7.57 2016
Slide 109: External Reporting
EXTERNAL REPORTING RECOGNITION In 2020 received SAM Silver Class distinction with a score of We achieved a CDP Member of the Ranked amongst the top Ranked amongst the Top 82 (out of 100) in the 2019 Dow climate disclosure score FTSE4Good Index 100 companies for 10 Best Workplaces to Jones Sustainabi
Slide 110: Carbon Policy
2020 FULL YEAR RESULTS INVESTOR DISCUSSION PACK CARBON POLICY
Slide 111: Our Approach to Climate Change
OUR APPROACH TO CLIMATE CHANGE We understand the impact – positive and negative – our financing has on climate change. Through our lending decisions, we support companies and projects that contribute to reducing emissions and are resilient to a changing climate. OUR PRIORITY AREAS 2. 1. Support 3. H
Slide 112: Our 2020 Climate Change Statement
OUR 2020 CLIMATE CHANGE STATEMENT We support the Paris Agreement’s goal of transitioning to net zero emissions by 2050. Our 2020 Climate Change Statement outlines our approach and strengthened commitments that seek to support a global transition to net zero emissions. PRIORITY AREAS HOW ARE WE MAKIN
Slide 113: Our Pathway to 2030
OUR PATHWAY TO 2030 Our response to supporting the transition has evolved over time, and to date, we’ve made strong progress. By 2030 2020 Our portfolio and approach will look 2019 like this: 2015 New commitments to support efforts to achieve net zero carbon by 2050: • Our power generation direct le
Slide 114: How Our Lending is Supporting the Paris Goals
HOW OUR LENDING IS SUPPORTING THE PARIS GOALS EXPANDING OUR LENDING SUPPORT TO THE RENEWABLE ENERGY SECTOR; WHILE EXPOSURES TO THERMAL COAL MINING HAS REDUCED BY ~70% IN 5 YEARS DIRECT LENDING POWER GENERATION PORTFOLIO RESOURCES PORTFOLIO September 2015 September 2020 $b THERMAL COAL EXPOSURE (EAD)
Slide 115: Summary of Our Climate-Related Financial Disclosures (TCFD)
SUMMARY OF OUR CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) Through our TCFD reporting, we seek to provide information on our approach to climate change and ability to manage the associated risks and opportunities. Below is a summary of future focus areas and actions. . TCFD Theme Focus Areas 2021/2
Slide 116: Implementation of Customer Transition Plan Target
IMPLEMENTATION OF CUSTOMER TRANSITION PLAN TARGET Background • We are committed to encourage and support 100 of our largest emitting customers in the energy, transport, buildings and food, beverage and agricultural sectors to establish or strengthen their low carbon transition plans, by 2021. How wi
Slide 117: 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) — FY2020 Earnings Presentation on 6ix