Anz Group Holdings Limited · ASX:ANZ
Anz — Debt Investor Presentation (November 2023)
100 slides from Anz's debt investor presentation, Nov 13, 2023
Slide 1: 2023 Full Year Results Debt Investor Presentation
2023 FULL YEAR RESULTS YEAR ENDED 30 SEPTEMBER 2023 DEBT INVESTOR PRESENTATION ANZ Group Holdings Limited ABN 16 659 510 791 9/833 Collins Street Docklands Victoria 3008 Australia
Slide 2: Disclaimer & Important Notice
ANZ 2023 Full Year Results DISCLAIMER & IMPORTANT NOTICE 13 November 2023 page 84 Background information only The information set out in this document and any accompanying verbal presentation, including any question and answer session and any documents or other materials distributed with the present
Slide 3: Disclaimer & Important Notice
ANZ 2023 Full Year Results DISCLAIMER & IMPORTANT NOTICE European Economic Area: This document is not directed at, and no Securities will be offered, sold or otherwise made available to, any retail investor in the European Economic Area (the "EEA"). For these purposes, a "retail investor" means a pe
Slide 4: Disclaimer & Important Notice
ANZ 2023 Full Year Results DISCLAIMER & IMPORTANT NOTICE No liability To the maximum extent permitted by law the Bank, ANZGHL, its related bodies corporate, directors, employees and agents do not accept any liability for any loss arising from the use of this document or its contents or otherwise ari
Slide 5: Contents
ANZ 2023 Full Year Results Overview 5 FY23 Financial Results 33 Capital, Funding & Liquidity 60 CONTENTS Asset Quality 68 Environment, Social & Governance (ESG) 80 Economics 88 Key Contacts 99 4
Slide 6: Debt Overview
2023 FULL YEAR RESULTS DEBT INVESTOR PRESENTATION OVERVIEW
Slide 7: ANZ Corporate Profile – Four Key Divisions
ANZ 2023 Full Year Results ANZ CORPORATE PROFILE – FOUR KEY DIVISIONS Group revenue, FY23 % Institutional Services global institutional and corporate customers, and governments across Australia, New Zealand and International (including PNG) via Transaction Banking, Corporate Finance and Markets busi
Slide 8: Overview: Full Year Highlights FY23 vs FY22
ANZ 2023 Full Year Results OVERVIEW FY23 vs FY22 Full Year Highlights, FY23 vs FY22 Cash Profit $7.4b +14% Revenue growth +13% FY23 Financial Return on Equity 10.9% +54bps Revenue growth across all major divisions +4% to +26% Performance Risk Adj. Margins1 5.19% +76bps Met cost guidance2 +5% Low los
Slide 9: FY23 Capital Allocation and Return Profile
ANZ 2023 Full Year Results FY23 CAPITAL ALLOCATION AND RETURN PROFILE FY23 Return on Equity, % Total Group Aus. Retail Aus. Commercial Institutional New Zealand % of Group Capital1 23% 8% 5% 17% 10% 9% 5% ~36% ~26% ~12% ex capital held for Suncorp Bank acq. ~16% ~16% ~14% ~11% ~11% ~11% Group ROE1 R
Slide 10: Total Operating Income
ANZ 2023 Full Year Results TOTAL OPERATING INCOME Total Income, $b Net Interest Income, $b Other Operating Income, $b 20.9 16.6 4.3 0.6 0.5 0.2 18.5 14.9 0.3 0.5 3.6 0.2 3.2 3.7 0.2 3.3 2.9 0.7 2.3 10.5 4.0 1.9 0.1 6.7 10.4 8.5 2.0 9.6 0.2 3.7 8.1 0.3 5.3 0.4 7.8 0.2 1.8 0.1 0.3 1.8 0.2 0.0 1.8 0.1
Slide 11: Operating Expenses
ANZ 2023 Full Year Results OPERATING EXPENSES Total Expenses1, $b Total Expenses by Category, $b Full Time Equivalent Staff1,2,‘000s 10.1 10.1 39.8 40.3 39.2 9.6 9.6 1.0 1.0 1.2 1.1 1.0 1.9 1.8 11.3 1.3 0.2 10.3 10.8 1.3 0.1 1.7 1.6 2.7 5.0 5.1 5.0 5.1 6.8 2.6 4.8 0.7 4.8 6.8 6.8 0.6 0.6 0.7 0.6 0.9
Slide 12: 2H23 Net Interest Margin (NIM) – Movement
ANZ 2023 Full Year Results 2H23 NET INTEREST MARGIN (NIM) – MOVEMENT Group NIM, bps 175 168 1 3 168 -7 -1 165 -3 -1 -2 Aus housing -5 At call +4 NZ housing -2 Term Deposit -3 Higher funding costs primarily on commodity assets with the related revenues recognised as Other Operating Income 2H22 1H23 A
Slide 13: ANZ Group Capital
ANZ 2023 Full Year Results ANZ GROUP CAPITAL ANZ Group Capital Composition, $b ANZ Bank Group Key Capital Ratios (%) Sep 22 Mar 231 Sep 231 Level 2 CET1 capital ratio 12.3 13.2 13.3 90.6 91.9 CET1 Composition Level 2 CET1 HoH mvmt +76 bps +89 bps +16 bps 82.8 0.7 72.8 Level 2 CET1 capital ratio (pro
Slide 14: Term Wholesale Funding Portfolio
ANZ 2023 Full Year Results TERM WHOLESALE FUNDING PORTFOLIO1 Issuance, $b Includes ~$3b of pre-funding Maturities, $b for FY24 maturities 40 32 25 28 26 26 22 22 24 17 16 15 8 7 2 1 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31+ Senior Unsecured Covered Bonds Tier 2
Slide 15: Term Wholesale Funding Issuance
ANZ 2023 Full Year Results TERM WHOLESALE FUNDING ISSUANCE1 ANZ has access to a diverse range of wholesale funding A growing domestic market drives larger benchmark deals • FY23 term funding issuance of $40b included ~$3b of FY24 pre-funding Average AUD senior unsecured benchmark deal size2, $b 5 •
Slide 16: Total Loss-Absorbing Capacity (TLAC) Profile
ANZ 2023 Full Year Results TOTAL LOSS-ABSORBING CAPACITY (TLAC) PROFILE1 ANZ is well placed to meet APRA’s final TLAC requirements Tier 2 capital, Notional amount % • ANZ’s current Tier 2 ratio is 5.8%, in excess of APRA’s 1 January 2024 Interim Target of 5.0%, and well placed to meet the finalised
Slide 17: Australian TLAC in a Global Context
ANZ 2023 Full Year Results AUSTRALIAN TLAC IN A GLOBAL CONTEXT Australian banks’ Tier 2 is supported by large amounts of CET1 and AT1 capital Australia Canada Scandinavia United Kingdom Netherlands France Singapore % RWA 40 35 30 25 ANZ Tier 2 20 15 10 5 0 ANZ CBA Westpac NAB TD RBC BMO CIBC SHB SEB
Slide 18: Provision Outcomes
ANZ 2023 Full Year Results PROVISION OUTCOMES Individual Provision Charge (IP) / Average Gross Loans & Advances1, % ANZ Individual Provision (IP) 0.35 charge / (release), $m 187 0.30 69 87 0.25 -30 123 375 -8 266 247 0.20 168 201 217 80 103 54 51 36 22 0.15 -116 -268 -214 -227 -267 -300 0.10 0.05 1H
Slide 19: Expected Credit Loss – Economic Scenarios: Modelled Outcomes
ANZ 2023 Full Year Results EXPECTED CREDIT LOSS – ECONOMIC SCENARIOS: MODELLED OUTCOMES (COLLECTIVE PROVISION BALANCE SCENARIOS)¹ Sep 23, $m Economic scenarios Actual Base case 2 30 September 2023 CY2021A CY2022A CY2023F CY2024F CY2025F Australia GDP change3 4.5% 3.6% 1.5% 1.3% 2.2% Additional overl
Slide 20: Long Run Provisions & Loss Rates
ANZ 2023 Full Year Results LONG RUN PROVISIONS & LOSS RATES Total Credit Impairment charge, $m 2,000 1,500 1,000 500 0 -500 -1,000 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 Consumer
Slide 21: Australia Home Loans – Portfolio Overview
ANZ 2023 Full Year Results AUSTRALIA HOME LOANS – PORTFOLIO OVERVIEW Portfolio1 Flow Portfolio1 FY21 FY22 FY23 FY22 FY23 FY21 FY22 FY23 Number of Home Loan accounts 1,002k 968k 958k 172k2 193k2 Average LVR at Origination9 71% 68% 65% Total FUM $278b $283b $304b $75b $89b Average Dynamic LVR (excl. o
Slide 22: Australia Home Loans – Portfolio Resilience
ANZ 2023 Full Year Results AUSTRALIA HOME LOANS – PORTFOLIO RESILIENCE Home Loans repayment profile1,2 Home Loans on time and <1 month ahead profile2,3 % of accounts ahead of repayments % composition of accounts 40 35% 36% 36% 30 28% 22% 17% 20 16% 16% 19% 10 21% 24% 31% Sep 21 Sep 22 Sep 23 0 Overd
Slide 23: Australia Home Loans – Book Originated and Attributes
ANZ 2023 Full Year Results AUSTRALIA HOME LOANS – BOOK ORIGINATED AND ATTRIBUTES Home Loans portfolio, Sep 23 ANZ interest rate buffer & floor Total Portfolio ($b) Home loan applications are assessed at the greater of 304 the customer interest rate plus the interest rate buffer or With the rising ra
Slide 24: Australia Home Loans – Portfolio Resilience
ANZ 2023 Full Year Results AUSTRALIA HOME LOANS – PORTFOLIO RESILIENCE Fixed rate Home Loan expiry profile, $b ANZ flow borrowing capacity1, FY23 27 9% 2% 23 20 18 Surplus Capacity Minimal Capacity At Capacity 12 12 89% 30+ DPD at September 23 by fixed rate expiry month 2H22 1H23 2H23 1H24 2H24 >2H2
Slide 25: Australia & New Zealand 90+ Days Past Due
ANZ 2023 Full Year Results AUSTRALIA & NEW ZEALAND 90+ DAYS PAST DUE (DPD) Consumer portfolio1 90+ DPD as a % of total portfolio balances 1.50 1.25 1.00 0.75 0.50 0.25 0.00 Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep 18 18 19 19 19 19 20 20 20 20 21 21 21 21 2
Slide 26: Commercial Property – Segments of Interest
ANZ 2023 Full Year Results COMMERCIAL PROPERTY – SEGMENTS OF INTEREST Outstandings by region, GLA $b Outstandings by sector, % 6% 8% 7% 7% 6% 7.6% 7.4% 7.6% 7.5% 4% 2% 2% 2% 2% 6.9% 53.4 18% 18% 19% 21% 18% 50.9 1.7 47.1 2.3 46.8 2.1 2.2 10.6 42.9 10.9 27% 29% 30% 29% 2.8 29% 10.9 10.9 10.5 17% 19%
Slide 27: Commercial Property – Segments of Interest
ANZ 2023 Full Year Results COMMERCIAL PROPERTY – SEGMENTS OF INTEREST Commercial property collateral1,2, % Portfolio growth 81% of portfolio well secured • Predominately in Australia across a diversified portfolio of lending segments 45% Portfolio quality • ~80% of exposures well secured 96% of unse
Slide 28: Balance Sheet Composition
ANZ 2023 Full Year Results BALANCE SHEET COMPOSITION Exposure At Default1, EOP $b Risk Weighted Assets, EOP $b Net Loans & Advances, EOP $b Customer Deposits, EOP $b 1,193 455 707 649 647 1,163 690 1,152 438 2% 436 433 672 0% 611 620 1% 1% 8% 651 0% 1,103 6% 2% 4% 3% 0% 1% 1% 7% 13% 1% 17% 15% 15% 8
Slide 29: Net Loans and Advances
ANZ 2023 Full Year Results NET LOANS AND ADVANCES Australia Retail, $b Australia Commercial, $b New Zealand, NZDb Institutional, $b +4% +3% +2% +1% 312 62 131 208 210 301 60 60 129 128 207 285 290 6 58 1 1 125 6 1 2 188 21 19 20 6 6 25 24 26 25 19 21 1 41 45 18 20 20 1 2 1 41 33 295 306 279 284 100
Slide 30: Customer Deposits
ANZ 2023 Full Year Results CUSTOMER DEPOSITS1 Retail & Commercial Institutional Australia Retail, $b Australia Commercial, $b New Zealand Division, $b $b +1% +10% 278 263 266 165 156 150 22 23 +1% 218 26 110 130 113 121 112 113 113 +8% 45 15 44 98 99 43 30 29 26 92 116 87 27 82 15 38 36 33 39 16 27
Slide 31: Customer Deposits – Retail & Commercial
ANZ 2023 Full Year Results CUSTOMER DEPOSITS – RETAIL & COMMERCIAL Australia Retail, $b Australia Commercial, $b New Zealand, NZDb 165 116 104 104 105 106 156 111 112 113 113 107 97 97 99 147 150 141 101 92 88 89 134 135 90 121 123 86 87 117 Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Ma
Slide 32: Australia & New Zealand Economic Forecasts
ANZ 2023 Full Year Results AUSTRALIA & NEW ZEALAND ECONOMIC FORECASTS 2019 2020 2021 2022 2023F1 2024F1 2025F1 Australia – annual % growth GDP 1.9 -1.9 5.2 3.7 1.8 1.2 2.1 Australia - headline CPI (% y/y) 1.6 0.8 2.9 6.6 5.6 3.5 2.9 Australia - unemployment (% Q4 avg) 5.2 6.8 4.7 3.5 3.9 4.5 - Austr
Slide 33: Australian Economy – Snapshot
ANZ 2023 Full Year Results AUSTRALIAN ECONOMY – SNAPSHOT GDP growth1 CPI inflation1 Year-ended, with contributions Unemployment and underemployment1 Annual population change2 % of labour force Thousands 600 Total growth 500 Net overseas migration 400 300 200 100 Natural increase 0 -100 Mar Mar Mar M
Slide 34: FY23 Financial Results
2023 FULL YEAR RESULTS DEBT INVESTOR PRESENTATION FY23 FINANCIAL RESULTS
Slide 35: Operating Income
ANZ 2023 Full Year Results OPERATING INCOME Full Year Total Operating Income, $m Half Year Total Operating Income, $m 540 1,533 41 20,893 -298 -166 696 +8% 18,547 10,528 10,365 9,599 1,149 958 755 0% 8,844 9,379 9,407 +13% FY22 Volume1 Margin1 Divisional Markets Divestments3 Other4 FY23 2H22 1H23 2H
Slide 36: Operating Expenses
ANZ 2023 Full Year Results OPERATING EXPENSES Total Operating Expenses, $m Capitalised Software Balance4, $b +2% 3.0 356 -73 246 10,139 481 2.5 88 Benefiting 9,625 Includes Cloud from lower -584 2.0 and ANZ Plus run capitalised costs, and software Includes investments in balance Suncorp & Wage & Inc
Slide 37: Reported Group Net Interest Margin Trend
ANZ 2023 Full Year Results REPORTED GROUP NET INTEREST MARGIN TREND1 Group NIM, bps 240 230 220 210 200 190 180 170 160 150 140 130 120 110 100 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 Flat or declining AUD Official Cash
Slide 38: Net Interest Margins – Half Yearly Trends
ANZ 2023 Full Year Results NET INTEREST MARGINS (NIM) – HALF YEARLY TRENDS1 NIM 1 - Regional View, bps NIM 1 - Divisional View, bps 2H23 quarterly trends 2H23 quarterly trends Avg 2H23 AIEA1,2, $b Avg 2H23 AIEA1,2, $b New Zealand $138b Aus Comm.3 $61b Australia $408b NZ Division $120b Rest of World
Slide 39: Dividends
ANZ 2023 Full Year Results DIVIDENDS Dividend Performance (Cash basis), cents Australia geographic earnings 70% 71% % 65% 65% Franking Account Lower DPOR driven by Higher offshore earnings Balance declined. Partial Covid dividend relative to Aus 66% franking credit for Final 1H23 vs 2H23 2019 Divide
Slide 40: Australia Retail – 14% ROE
ANZ 2023 Full Year Results AUSTRALIA RETAIL – 14% ROE1 Growing digital engagement • Sales volume up 19% % of deposit accounts5 opened through digital Home loan • Time to first decision2 consistently within 3 days channels capability 68% • First touch approval rate up 58% 61% • Broker NPS improved 14
Slide 41: Australia Retail – Financial Performance
ANZ 2023 Full Year Results AUSTRALIA RETAIL – FINANCIAL PERFORMANCE Income Expenses Returns Income composition, $m Total expenses, $m Cash Profit, $m 3,174 3,299 1,741 1,745 1,797 1,072 1,026 2,975 3,068 1,656 353 281 937 269 370 848 2,706 2,821 3,018 2,698 1H22 2H22 1H23 2H23 1H22 2H22 1H23 2H23 1H
Slide 42: Australia Retail – Financial Strength
ANZ 2023 Full Year Results AUSTRALIA RETAIL – FINANCIAL STRENGTH Balance sheet Exposures Credit quality Net Loans and Advances (NLA), $b Exposure at Default & Risk Weighted Assets Total Provision Charge, $m 301 312 EOP, $b 285 290 6 6 6 354 82 6 325 332 341 53 32 45 50 48 -11 -5 5 279 284 295 306 11
Slide 43: Our ANZ Plus Business
ANZ 2023 Full Year Results OUR ANZ PLUS BUSINESS ANZ Plus Customers and Deposits, cumulative Better Lower cost Customers, ‘000s Deposits, $b More engaged customers More efficient, highly automated 500 10 450 9 Onboarding NPS Cost to Acquire 400 8 -40% +56 350 7 +29 300 6 250 5 ANZ ANZ Plus ANZ ANZ P
Slide 44: Australia Commercial – 26% ROE
ANZ 2023 Full Year Results AUSTRALIA COMMERCIAL – 26% ROE Momentum in Digital Solution • ~25% of total group revenue1 GoBiz Applications & Drawn FUM, Index Sep 22 = 100 Commercial customer • ~56% of customers have a Retail product 400 contribution • Over 60% of Transactive Global users are Commercia
Slide 45: Australia Commercial – Financial Performance
ANZ 2023 Full Year Results AUSTRALIA COMMERCIAL – FINANCIAL PERFORMANCE Income Expenses Returns Income composition, $m Total expenses, $m Cash Profit, $m 1,807 1,782 738 883 1,635 1,595 649 652 685 175 190 739 185 668 701 477 1,410 1,632 1,592 1,158 1H22 2H22 1H23 2H23 1H22 2H22 1H23 2H23 1H22 2H22
Slide 46: Australia Commercial – Financial Strength
ANZ 2023 Full Year Results AUSTRALIA COMMERCIAL – FINANCIAL STRENGTH Balance sheet Exposures Credit quality Net Loans and Advances1 (NLA), $b Exposure at Default & Risk Weighted Assets Total Provision Charge, $m EOP, $b 61 66 58 59 70 73 71 73 41 56 9 52 54 43 57 8 33 47 47 -5 -6 -165 -11 -122 Mar 2
Slide 47: New Zealand – 16% ROE
ANZ 2023 Full Year Results NEW ZEALAND – 16% ROE 1 Long term improvement in efficiency • #1 market position in New Zealand, incl. Home Cost to income ratio % Market Loans, Agri and Funds Management (KiwiSaver) 45 strength • Canstar Bank of the Year for Small Business • Canstar Bank of the Year for A
Slide 48: New Zealand Division – Financial Performance
ANZ 2023 Full Year Results NEW ZEALAND DIVISION – FINANCIAL PERFORMANCE Income Expenses Returns Income composition, NZDm Total expenses, NZDm Cash Profit, NZDm 1,912 1,937 1,921 689 688 685 714 822 842 840 1,693 238 216 227 746 259 1,674 1,721 1,694 1,434 1H22 2H22 1H23 2H23 1H22 2H22 1H23 2H23 1H22
Slide 49: New Zealand Division – Financial Strength
ANZ 2023 Full Year Results NEW ZEALAND DIVISION – FINANCIAL STRENGTH Balance sheet1,2 Exposures3 Credit quality Net Loans and Advances (NLA) , NZDb Exposure at Default & Risk Weighted Assets, Total Provision Charge, NZDm NZDb 125 129 128 131 145 148 149 151 81 82 10 40 77 76 85 72 19 64 65 21 -14 -4
Slide 50: Institutional – 13% ROE
ANZ 2023 Full Year Results INSTITUTIONAL – 13% ROE Product Diversification Geographic Diversification Global Markets Diversification Institutional revenue, $m Institutional revenue, $m Markets income1, $m +26% +26% +34% 6,734 6,734 2,107 9% 6% 5,348 35% 2,376 5,348 1,567 47% 6% 17% 5% 41% 18% 50% 34
Slide 51: Institutional – Summary
ANZ 2023 Full Year Results INSTITUTIONAL – SUMMARY Customer Franchise Revenue1, $m Risk Adjusted NIM2,3, bps Transactional Deposits & Payments 3,052 3,003 227 Operational / At-Call Deposit NIM # of Digital 2,613 152 173 171 194 Deposits ($b) (bps) Payments Processed (m) 2,400 2,333 351 1,613 1,584 2
Slide 52: Institutional – Financial Performance
ANZ 2023 Full Year Results INSTITUTIONAL – FINANCIAL PERFORMANCE Income Expenses Returns Income composition, $m Total expenses, $m Cash Profit, $m 1,293 1,328 1,380 1,597 3,444 3,290 1,273 1,366 2,555 2,793 1,128 599 1,373 1,321 483 868 809 391 783 248 114 251 199 234 1,772 1,925 2,071 1,969 750 496
Slide 53: Institutional – Financial Strength
ANZ 2023 Full Year Results INSTITUTIONAL – FINANCIAL STRENGTH Balance sheet Exposures Credit quality Net Loans and Advances (NLA), $b Exposure at Default1 & Risk Weighted Assets, $b Total Provision Charge, $m 207 208 210 535 541 529 188 487 13 30 1 -15 5 -26 -36 199 208 183 175 -2 -79 -25 -6 -74 Mar
Slide 54: Institutional Payments and Cash Management (PCM)
ANZ 2023 Full Year Results INSTITUTIONAL PAYMENTS AND CASH MANAGEMENT (PCM) Continued growth in payments and accounts, delivering $410m (23%) of PCM revenue in FY23 PCM Revenue, $m Payments1, #m Client Monies, Platform Cash Mgt. Accounts2 #‘000s +104% +45% +60% 1,785 FY23 vs FY21 333 430 313 410 +11
Slide 55: Markets Income
ANZ 2023 Full Year Results MARKETS INCOME Markets Income, $m Markets Customer Franchise Income, $m 16% CAGR 2,107 1,971 1,427 188 680 1,567 1,165 1,096 115 875 85 83 402 200 347 75 292 252 757 112 670 80 76 1,427 35 1,096 1,165 777 158 189 705 569 407 370 FY21 FY22 FY23 FY21 FY22 FY23 1H23 2H23 Cust
Slide 56: Digital Platforms – Scalable Operating Leverage, Capital Light
ANZ 2023 Full Year Results DIGITAL PLATFORMS – SCALABLE OPERATING LEVERAGE, CAPITAL LIGHT Payments1, m Direct Integration Payments1,2, m Real Time Payments1,2 Platform Cash Mgmt. Accounts3, k +31% +6% +16% NPP Agency #m +25% 313 333 22 133 430 115 18 229 343 89 268 158 162 64 11 44 5 112 2 51 2H19 2
Slide 57: Institutional Simplified Network and Technology
ANZ 2023 Full Year Results INSTITUTIONAL SIMPLIFIED NETWORK AND TECHNOLOGY SUPPORTING OUR BUSINESS 1 KYC Platform 1 Credit Limit platform 1 Cash Management platform 1 Client Services platform Creating single platforms that are globally integrated 1 Markets platform 1 Customer Entitlements platform 1
Slide 58: Institutional Streamlined Network of Digital & Data Capabilities
ANZ 2023 Full Year Results INSTITUTIONAL STREAMLINED NETWORK OF DIGITAL & DATA CAPABILITIES Digital backbone: Simplifying and connecting systems and data to enhance customer experience, better decision making and automation Key principles Resulting in Single source of truth Use of the GoldTier ID Pu
Slide 59: FY24 Priorities
ANZ 2023 Full Year Results FY24 PRIORITIES 1. 2 3. 4. 5. 6. Continue to run Further improve Grow ANZ Plus Invest more in Further enhance Complete the the Group productivity customers, Commercial Sustainability, acquisition of prudently deepen strategy Payments & Suncorp Bank engagement Currency plat
Slide 60: Customer Protection
ANZ 2023 Full Year Results CUSTOMER PROTECTION Investing significantly to keep customers safer from frauds and scams Prevented Removed Blocked Analysed Stopped >$100m ~1,600 ~12m >10b >20k from being phishing or attacks against customer events through our scam SMS transferred fraudulent websites fac
Slide 61: Capital, Funding & Liquidity
2023 FULL YEAR RESULTS DEBT INVESTOR PRESENTATION CAPITAL, FUNDING & LIQUIDITY
Slide 62: Regulatory Capital – 2H23 Update
ANZ 2023 Full Year Results REGULATORY CAPITAL – 2H23 UPDATE ANZ Bank Group Capital update ANZ Group Dividend ● Final dividend comprising an 81 cents per share dividend partially franked at 65% and an ● Level 2 CET1 ratio of 13.3% (19.7% on an Internationally Comparable basis1) or ~12.1% on a additio
Slide 63: Regulatory Capital – Risk Weighted Assets
ANZ 2023 Full Year Results REGULATORY CAPITAL – RISK WEIGHTED ASSETS Risk weighted assets – Level 2, $b Total Credit RWA increase $3.7b 435.5 0.7 436.2 0.4 3.7 0.0 433.3 -1.1 -1.6 -4.3 Mar 23 CRWA FX impacts Mar 23 Divisional Lending Risk Impacts Other CRWA impacts Operational Market Risk & IRRBB IR
Slide 64: Internationally Comparable Regulatory Capital Position
ANZ 2023 Full Year Results INTERNATIONALLY COMPARABLE1 REGULATORY CAPITAL POSITION Level 2 capital ratio (APRA vs internationally comparable)2, % 29.1 29.8 27.3 5.8 7.2 7.6 20.6 21.0 18.2 2.3 2.5 2.5 5.5 5.8 4.2 1.7 1.9 1.9 19.2 19.4 19.7 12.3 13.2 13.3 APRA Int. Comparable APRA Int. Comparable3 APR
Slide 65: Balance Sheet Structure
ANZ 2023 Full Year Results BALANCE SHEET STRUCTURE1 NSFR movement, % Pro forma NSFR is ~115.4% once RSF benefit Balance sheet composition, Sep 23 associated with TFF is removed 118.6 0.4 116.3 Offshore Short Term W’sale Debt 3% 0.8 0.2 -2.1 -0.1 Domestic Short Term -1.5 Wholesale Debt and Liquid and
Slide 66: Liquidity Coverage Ratio (LCR) Summary
ANZ 2023 Full Year Results LIQUIDITY COVERAGE RATIO (LCR) SUMMARY1 Movement in average LCR surplus2, $b LCR composition, Average 2H23 $b 271 1H23 2H23 Other LCR Liquids5 Avg LCR 128% Avg LCR 132% 9 1 66 6 205 -6 58 Wholesale funding -1 -1 HQLA1 Customer deposits & other4 Offshore short-dated Financi
Slide 67: Capital & Replicating Deposits Portfolio
ANZ 2023 Full Year Results CAPITAL & REPLICATING DEPOSITS PORTFOLIO Australia, % Portfolio Earnings Rate is a combination of term swap rates (hedged component) and Portfolio earnings rate, Average % 5 3mth BBSW (unhedged) Australia New Zealand 4 2H20 1.20% 1.40% 3 1H21 0.92% 1.09% 2 2H21 0.85% 0.99%
Slide 68: Capital & Liquidity Framework
ANZ 2023 Full Year Results CAPITAL & LIQUIDITY FRAMEWORK1 Quarter 4 CY2023 CY2024 CY2025 Implementation Date RBNZ Capital Framework Transition 2028 Fundamental Review of the Trading Book Consultation 2026 (incl. Counterparty Credit Risk) Interest Rate Risk in the Banking Book Finalise Implementation
Slide 69: Asset Quality
2023 FULL YEAR RESULTS DEBT INVESTOR PRESENTATION ASSET QUALITY
Slide 70: Reshaped the Portfolio Over 7+ Years
ANZ 2023 Full Year Results RESHAPED THE PORTFOLIO OVER 7+ YEARS Total Exposures, EAD $b 894 1,163 Historical 1,163 Total long run loss rate reduced 51% 1% 1% loss rates2 Other from FY16 to FY233 14% Sovereigns 22% 0bps Banks & FIs 9% 10% ~1bps 74% Rest of Group Residential 40% Mortgages ~3bps 39% Re
Slide 71: Risk Weighted Assets (RWA)
ANZ 2023 Full Year Results RISK WEIGHTED ASSETS (RWA) Total Risk Weighted Assets, $b Credit Risk Weighted Asset drivers2, $b 455 429 433 417 416 48 42 5.0 48 10.2 47 48 47 12 22 42 25 3.4 359.4 0.3 349.0 156 157 163 144 144 -28.5 -0.8 7 8 7 7 6 57 56 59 56 59 46 46 40 36 42 92 94 91 93 104 Sep 19 Se
Slide 72: Collective Provision Balance
ANZ 2023 Full Year Results COLLECTIVE PROVISION BALANCE Collective Provision Balance (Allowance for Expected Credit Loss) & ECL Scenarios $m Weightings to scenarios to determine CP balance 0% 46% 41% 13% 9,251 2,242 above base case 4,040 4,032 4,032 4,032 3,853 354 Stage 3 Additional 817 732 727 ove
Slide 73: Collective Provision (CP) Balance
ANZ 2023 Full Year Results COLLECTIVE PROVISION (CP) BALANCE Collective Provision balance by division, $b Provision balance by stage, $b Sep 19 Mar 20 Sep 20 Mar 21 Sep 21 Mar 22 Sep 22 Mar 23 Sep 23 Sep 2022 Sep 2023 Aus. Retail 0.91 1.18 1.42 1.11 1.07 0.91 0.90 0.95 0.95 Aus. Commercial 0.89 1.14
Slide 74: Impaired Assets
ANZ 2023 Full Year Results IMPAIRED ASSETS Control list, Index Sep 16=100 New impaired assets by division, $m 150 2,000 1,570 100 1,500 1,121 1,000 829 639 599 538 50 500 0 0 Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar 20 Mar 21 Mar 22 Sep 22 Mar 23 Sep 23 16 17 17 18 18 19 19 20
Slide 75: Total Portfolio Composition
ANZ 2023 Full Year Results TOTAL PORTFOLIO COMPOSITION % of Impaired Assets Gross Impaired Exposure at Default (EAD) distribution Category % of Group EAD1 to EAD1 Assets2 Sep 22 Sep 23 Sep 22 Sep 23 Sep 23 4.1% Consumer Lending 37.8% 40.3% 0.1% 0.1% $567m 1.1% 1.4% Finance, Investment & Insurance 28
Slide 76: Australian Housing – Leading Indicators
ANZ 2023 Full Year Results AUSTRALIAN HOUSING – LEADING INDICATORS Monthly Changes in Savings Balances1, #000s of accounts Repayment profile, % 500 Rate rise period 40 39 39 38 38 400 6 6 6 6 6 14 13 13 13 14 300 39 40 40 41 40 200 2 2 2 2 2 100 Sep Sep Sep Sep Sep 21 Mar 22 Sep 22 Mar 23 Sep 23 20
Slide 77: Lenders Mortgage Insurance
ANZ 2023 Full Year Results LENDERS MORTGAGE INSURANCE September Full Year 2023 results LMI & Reinsurance structure Australian Home Loan portfolio LMI and Reinsurance structure at 30 Sep 23 Gross Written Premium ($m) $83.1m (% New Business FUM Oct 22 to Sep 23) Net Claims Paid ($m) $4.0m Not LMI Insu
Slide 78: New Zealand Home Loans – Portfolio Overview
ANZ 2023 Full Year Results NEW ZEALAND HOME LOANS – PORTFOLIO OVERVIEW Portfolio Flow Portfolio FY21 FY22 FY23 FY22 FY23 FY21 FY22 FY23 Number of Home Loan Accounts 535k 538k 545k 56k 50k Average LVR at Origination 57% 56% 55% Total FUM NZD99b NZD104b NZD107b NZD24b NZD19b Average Dynamic LVR 35% 37
Slide 79: ANZ Institutional Portfolio
ANZ 2023 Full Year Results ANZ INSTITUTIONAL PORTFOLIO Size & tenor by market of incorporation, $b Industry composition Finance EAD Sep 231 Government Administration & Defence 14% 529 Property & Business Services 3% 32% Services To Finance & Insurance 3% 4% A$529b¹ Manufacturing Sep 23 Wholesale Tra
Slide 80: ANZ Asia Institutional Portfolio
ANZ 2023 Full Year Results ANZ ASIA INSTITUTIONAL PORTFOLIO Market of incorporation ANZ Asia industry composition Finance 4% 7% 4% 17% Manufacturing 2% 9% 2% 2% Services To Finance & Insurance China South Korea 2% 3% 6% Wholesale Trade 7% A$122b¹ Japan India A$122b¹ Government Administration & Defen
Slide 81: Environment, Social & Governance (ESG)
2023 FULL YEAR RESULTS DEBT INVESTOR PRESENTATION ENVIRONMENT, SOCIAL & GOVERNANCE (ESG)
Slide 82: Our Approach to Climate
ANZ 2023 Full Year Results OUR APPROACH TO CLIMATE ANZ’s Climate Ambition To be the leading Australia and New Zealand-based bank in supporting customers to transition to net zero by 2050 The opportunity The pathway to net zero emissions presents significant financing opportunities. ANZ has an opport
Slide 83: 2023 ESG – Performance Snapshot
ANZ 2023 Full Year Results 2023 ESG - PERFORMANCE SNAPSHOT Environmental Financial Progress towards our $100b social and environmental Housing sustainability wellbeing sustainability target Over ~$8.8B 36% $5.3B 13% SOCIAL 21% ENVIRONMENTAL funded and facilitated1 in of ANZ Plus customers social and
Slide 84: 100 of Our Largest Emitting Business Customers
ANZ 2023 Full Year Results 100 OF OUR LARGEST EMITTING BUSINESS CUSTOMERS We have four transition plan categories under our upgraded assessment We consider a robust low carbon transition plan has three key elements framework to be applied from 2024 Governance A framework outlining Board and senior m
Slide 85: Portfolio Emissions Pathways – Performance Dashboard
ANZ 2023 Full Year Results PORTFOLIO EMISSIONS PATHWAYS - PERFORMANCE DASHBOARD New New New New 1. We have restated this target due to an error. We previously stated that our 2030 emissions intensity target for aviation required a 30% reduction from our 2019 baseline whereas, in fact, it only requir
Slide 86: Portfolio Emissions Pathways – Performance Dashboard
ANZ 2023 Full Year Results PORTFOLIO EMISSIONS PATHWAYS - PERFORMANCE DASHBOARD 85
Slide 87: Our Resources Portfolio
ANZ 2023 Full Year Results OUR RESOURCES PORTFOLIO Resources Portfolio, EAD1 $b Thermal Coal Mining, EAD1 $b 2.0 20.0 1.5 1.7 1.0 0.6 17.3 17.0 1.3 16.2 0.8 0.5 0.5 15.3 0.7 0.8 0.0 1.2 1.0 0.9 14.5 2.9 0.4 14.0 0.7 Sep Sep Sep Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep 1.1 0.7 1.5 1.2 0.2 0.5 15 1
Slide 88: Important Information – Climate-Related Information
ANZ 2023 Full Year Results IMPORTANT INFORMATION – CLIMATE-RELATED INFORMATION This presentation may contain climate-related statements, including in relation to climate-related risks and opportunities, climate-related goals and ambitions, climate scenarios, emissions reduction pathways and climate
Slide 89: Economics
2023 FULL YEAR RESULTS DEBT INVESTOR PRESENTATION ECONOMICS
Slide 90: Global Trends
ANZ 2023 Full Year Results GLOBAL TRENDS Major trends Challenges arising • Greater demands on government, more government debt • Heightened community expectations of business and government • Resilient corporate balance sheets • Government fiscal prioritisation • Changing political structures • Fund
Slide 91: Australian Economy – Economic Growth
ANZ 2023 Full Year Results AUSTRALIAN ECONOMY – ECONOMIC GROWTH GDP growth1 Nominal Australian retail sales2 and Consumer Confidence3 Quarterly with contributions 30 % change 140 20 130 120 10 ANZ Debt IR 110 Total Retail, m/m (LHS) 0 100 Total Retail, y/y (LHS) Consumer Confidence (RHS) 90 -10 80 -
Slide 92: Australian Economy – Income and Savings
ANZ 2023 Full Year Results AUSTRALIAN ECONOMY - INCOME AND SAVINGS Household disposable income growth1 Household Savings1 Real, year-ended with contributions Gross savings rate, quarterly Statement of Mon Statement policy- Aug 22 of Mon Policy May 23 Household income and consumption2 Household debt
Slide 93: Australian Economy – Inflation
ANZ 2023 Full Year Results AUSTRALIAN ECONOMY - INFLATION CPI inflation1 Rent inflation1 Year-ended, with contributions Statement of Mon Policy May 23 Wages growth1 Global inflation comparisons2 Six-month annualised 11 Headline inflation, % Change y/y 10 9 StatementofofMon Statement Mon 8 7 Policy M
Slide 94: Australian Labour Market
ANZ 2023 Full Year Results AUSTRALIAN LABOUR MARKET Unemployment Rates1 Vacancies-to-unemployment2 Change since December 2019 2010-2019 average = 100 % of labour force Real labour income3 Employment and hours worked* , 4 Deflated using headline CPI, December 19 = 100 2008 average=100 93 Sources: 1.
Slide 95: Commodities
ANZ 2023 Full Year Results COMMODITIES RBA index of commodity prices1 Resource exports1 SDR, 2021/22 average = 100, log scale Log scale, quarterly Chart Pack Bulk commodity prices1 Terms of trade*, 1 Free on board basis 2020/21 average = 100, log scale 94 Sources: 1. RBA Chart Pack, November 2023
Slide 96: Australian Housing Dynamics
ANZ 2023 Full Year Results AUSTRALIAN HOUSING DYNAMICS Housing price forecasts by capital city1 House price growth2 % y/y, calendar year 5 Year Cumulative 6 Month Change Year on Year Change Fall from peak Oct-23 Change Total Houses Units Total Houses Units Total Houses Units Total Houses Units Sydne
Slide 97: Australian Property Dynamics
ANZ 2023 Full Year Results AUSTRALIAN PROPERTY DYNAMICS Residential pipeline1 Commercial Real Estate Prices2 September 2007= 100 Rental vacancies1 Housing mortgage payments1 Quarterly; share of household disposable income ANZ Economics Statement of Mon Policy May 23 96 Sources: 1. RBA Statement on M
Slide 98: Australian Housing Dynamics – Household Resilience
ANZ 2023 Full Year Results AUSTRALIAN HOUSING DYNAMICS – HOUSEHOLD RESILIENCE Household indicators1 Liquid assets of mortgage holders2 Share of owner-occupier borrowers, six months to July 2023 Fin Stab Review Apr Fin Stab Review Apr 23 23 Outstanding LVR distribution2 Share of loans in negative equ
Slide 99: New Zealand Housing Market
ANZ 2023 Full Year Results NEW ZEALAND HOUSING MARKET NZ Residential Mortgage Rate Monthly House Price Index 9 4500 8 4000 7 6 3500 5 Fin Stab Review Apr 3000 Fin Stab Review Apr % Index 4 3 23 2500 23 2 2000 1 1500 0 11 12 13 14 15 16 17 18 19 20 21 22 23 1000 11 12 13 14 15 16 17 18 19 20 21 22 23
Slide 100: Key Contacts
ANZ 2023 Full Year Results KEY CONTACTS ANZ Debt Investors Centre Key Contacts Adrian Went David Goode Steven Aquilina Group Treasurer Head of Debt Investor Relations Associate Director, Debt Investor Relations +61 3 8654 5532 +61 3 8654 7778 +61 412 027 151 +61 410 495 399 +61 447 744 542 Adrian.We
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