Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Debt Investor Presentation (August 2017)
74 slides from Anz's debt investor presentation, August 2017
Slide 1: ANZ Debt Investor Update
ANZ DEBT INVESTOR UPDATE AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED August 2017 Not for distribution into the United States
Slide 2: Important Notices
I M P O R TA N T N O T I C E S The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restrictions. Any failure to comply with
Slide 3: Contents
CONTENTS 3Q17 TRADING UPDATE 4 1H17 FINANCIAL UPDATE 10 DIVISIONAL PERFORMANCE 15 TREASURY 27 RISK 35 AUSTRALIAN MORTGAGE PORTFOLIO 50 NZ MORTGAGE PORTFOLIO 58 ADDITIONAL ECONOMICS 61 3 Not for distribution into the United States
Slide 4: 3Q17 Trading Update
3Q17 TRADING UPDATE Not for distribution into the United States
Slide 5: 3Q17 Trading Update
3 Q 1 7 T R A D I N G U P D AT E Comparisons are Cash Profit1 based and for the third quarter Financial Year 2017 to 30 June to the average of the first two quarters of Financial Year 2017 unless otherwise noted. • Cash Profit was $1.79 billion (up 5.3%). Profit Before Provisions increased 0.3%. • R
Slide 6: Group Financial Highlights - Profitability
G R O U P F I N A N C I A L H I G H L I G H T S - P R O F I TA B I L I T Y Group Net Interest Income / Credit RWA1 Institutional Markets Income % $m 5.5 800 682 5.0 419 600 481 513 4.5 400 4.0 200 3.5 3.0 0 2.5 -200 1H16 2H16 1H17 3Q17 1H16 2H16 1H17 3Q17 Qtrly avg Qtrly avg Qtrly avg Adjusting for
Slide 7: Group Financial Highlights - Balance Sheet
GROUP FINANCIAL HIGHLIGHTS – BALANCE SHEET Total Credit RWAs & Exposure at Default (EAD) Total Risk Weighted Assets – 3Q17 $b $b 917 7 0 1 0 405 899 913 397 356 342 348 Dec-16 Mar-17 Jun-17 Mar-17 Credit Op IRRBB Mkt Jun-17 RWA RWA RWA RWA Credit RWA EAD Credit Risk Weighted Assets – 3Q171 Credit Ri
Slide 8: Group Financial Highlights - Balance Sheet
GROUP FINANCIAL HIGHLIGHTS – BALANCE SHEET Non Housing credit RWAs & EAD1 Institutional RWA $b $b 555 538 543 -8.1% -7.7% -5.4% -1.9% 198 182 168 159 156 267 253 250 Dec-16 Mar-17 Jun-17 Sep-15 Mar-16 Sep-16 Mar-17 Jun-17 Credit RWA EAD Total Housing Credit RWA & EAD2 Aus. Household Lending Growth3
Slide 9: Credit Quality & Capital
C R E D I T Q U A L I T Y & C A P I TA L Individual Provision Charge Total Provision Charge - Financial year to date $m $m 2,000 1,939 437 1,500 1,167 1,144 1,110 1,095 283 243 1,000 462 325 308 500 -42 -25 -65 0 FY13 FY14 FY15 FY16 FY17 YTD Dec-16 Mar-17 Jun-17 (June) 4th quarter IP charge First 3
Slide 10: 1H17 Results Pack
1H17 RESULTS PACK Not for distribution into the United States
Slide 11: Strategic Focus
S T R AT E G I C F O C U S 1. Creating a simpler, better balanced 2. Focusing on areas where we can win bank 3. Building a superior everyday 4. Driving a purpose and values led experience for customers and our people transformation in order to compete in the digital age WORK TO DATE – 1H17 PROGRESS
Slide 12: Progress on Portfolio Rebalancing
PROGRESS ON PORTFOLIO REBALANCING A BETTER BALANCED, HIGHER RETURN BUSINESS CAPITAL ALLOCATION1 % of total Capital allocated (Sep 16 & Mar 17 on a post announced divestments basis) MAR-16 SEP-16 MAR-17 Institutional Retail & Commercial Wealth RORWA2 2.73% 2.82% 2.89% (Pre provision) RORWA3 1.62% 1.6
Slide 13: Strategic Priorities
S T R AT E G I C P R I O R I T I E S PROGRESS Reduce operating costs & risks • APRA CET1 ratio 10.1% (up 52bps); costs down 2% Remove product and management complexity. • FTE down 1% Exit low return and non-core businesses. • Announced sale of SRCB, UDC, Asia Retail & Wealth in 6 countries Reduce re
Slide 14: Asset Divestments
ASSET DIVESTMENTS EARNINGS IMPACTS – BASED ON FULL COMPLETION OF TRANSACTIONS1 Cessation of Equity $m Announced divestments Accounting ASIA RETAIL & Bank of TOTAL WEALTH2 SRCB UDC Tianjin IMPACT Revenue ~(850) ~(250) ~(100) ~(150) ~(1,350) Expenses ~(400) to ~(600) - ~(30) - ~(430) to ~(630) Profit
Slide 15: 1H17 Financial Update
1H17 FINANCIAL UPDATE Not for distribution into the United States
Slide 16: Financial Performance
FINANCIAL PERFORMANCE STATUTORY PROFIT CASH PROFIT ADJUSTED PRO-FORMA PROFIT $m $m $m 2,738 2,911 3,411 3,637 2,782 3,224 +6% +23% +13% +$173m +629m +413m 1H16 1H17 1H16 1H17 1H16 1H17 Statutory Profit movement Cash Profit movement Adjusted pro-forma movement $629m cash profit growth $413m operating
Slide 17: Operating Performance
O P E R AT I N G P E R F O R M A N C E CASH PROFIT 1H17 vs 1H16 (PCP) Cash Adjusted $m 198 Pro-forma1 757 3,411 112 Income -0.2% 3.4% -304 2,782 Expenses -13.8% -1.1% -22 PBP 15.2% 7.3% 3,299 Provisions -21.6% -20.4% Net Profit 22.6% 12.8% EPS (basic) 21.7% 12.0% 1H16 Cash Income Expenses Provisions
Slide 18: Net Interest Margins
NET INTEREST MARGINS GROUP NET INTEREST MARGIN Basis points (bps) -2bp -4bp 206 0 1 -1 200 -2 -4 2H16 Funding & Funding cost Deposits Assets Markets & 1H17 Asset mix Treasury BALANCE SHEET DIVISIONAL NIM $b % 570 576 576 2.75% 558 562 2.73% 2.69% 2.54% 2.40% 2.30% 468 2.04% 2.16% 2.17% 436 445 447 4
Slide 19: Productivity
PRODUCTIVITY EXPENSE COMPOSITION1 (on adjusted pro-forma basis) $m 14 4,805 4,783 57 12 34 4,731 -61 -92 -13 -3 0.5% -1.5% 1H16 Personnel Premises Tech Other 2H16 Personnel Premises Tech Other 1H17 expenses expenses expenses EXPENSE GROWTH1 (PCP) FULL TIME EQUIVALENT STAFF (FTE) CHANGE2 7.2% 500 2H1
Slide 20: Credit Quality
CREDIT QUALITY TOTAL PROVISION CHARGE ANZ HISTORICAL OBSERVED LOSS RATES $m (bp) 1,100 1,038 250 1,000 200 918 IP Loss Rate 900 150 Median IP Loss Rate 720 100 800 695 700 50 600 0 510 Sep Sep Sep Sep Sep Sep Sep Sep Sep Mar 500 90 93 96 99 02 05 08 11 14 17 400 300 COLLECTIVE PROVISION CHARGE 200 $
Slide 21: Portfolio Rebalancing
PORTFOLIO REBALANCING CREDIT RISK WEIGHTED ASSETS CREDIT RWAs1 CRWA MOVEMENT 352 $b $b 342 334 26 Aus. housing 352 regulatory 26 change on 3 342 Aus. housing 42 1 July 2016 -3 43 -8 -2 45 Aus. 74 non-housing 72 72 Sep-16 FX Lending Data/Meth. Risk Mar-17 Impact Mvmt. Review LENDING GROWTH MOVEMENT 2
Slide 22: Divisional Contribution
DIVISIONAL CONTRIBUTION DIVISIONAL RESULTS1 (Adjusted pro-forma basis) INCOME EXPENSES CASH PROFIT AFTER TAX $m $m $m 10,384 10,569 4,783 4,805 4,731 3,637 10,224 3,224 3,264 1,660 1,680 1,693 4,643 4,722 4,735 1,798 1,773 1,821 587 618 600 1,521 1,571 1,577 677 1,460 1,406 1,379 649 635 2,716 2,701
Slide 23: Balance Sheet
BALANCE SHEET1 LENDING BY REGION2 DEPOSITS BY REGION3 BALANCE SHEET $b $b $b 403 576 576 562 16% 262 17% 26% 447 468 450 21% 67% 112 88 119 7% 33% 48 53% 16% 15% 97 60% 100% 69% 100% Australia New International Australia New International NLA NLA NLA Zealand Zealand DEP DEP Retail Commercial Institu
Slide 24: Australia
AUSTRALIA AUSTRALIA DIVISION 1H17 PERFORMANCE1 92 $m -33 1,798 1,773 -23 -11 PROFIT GROWTH HOH PCP Retail -1% 2% Commercial -1% 0% TOTAL -1% 1% 1H16 profit Income Expenses Provisions Tax & NCI 1H17 profit VOLUMES NET INTEREST MARGIN OTHER OPERATING INCOME $b 321 327 337 2.76% 2.74% 2.69% $m 597 597
Slide 25: Institutional
INSTITUTIONAL 1H17 PERFORMANCE1 199 $m 1,021 81 229 -158 PROFIT GROWTH HOH PCP 670 Markets 46% 169% Transaction 3% 25% Banking Loans & SF 150% 13% TOTAL 69% 52% 1H16 profit Income Expenses Provisions Tax & NCI 1H17 profit VOLUMES NET INTEREST MARGIN2 OTHER OPERATING INCOME $b $m 1,357 176 171 179 2.
Slide 26: New Zealand Performance
NEW ZEALAND PERFORMANCE NZ DIVISION 1H17 PERFORMANCE1 NZ$m 22 0 7 717 702 -14 PROFIT GROWTH HOH PCP Retail 2% 7% Commercial 12% -2% TOTAL 6% 2% 1H16 profit Income Expenses Provisions Tax & NCI 1H17 profit VOLUMES NET INTEREST MARGIN OTHER OPERATING INCOME NZ$b 2.40% 2.35% 2.30% NZ$m 350 341 336 110
Slide 27: Treasury
TREASURY Not for distribution into the United States
Slide 28: Regulatory Capital
R E G U L AT O RY C A P I TA L CAPITAL UPDATE APRA COMMON EQUITY TIER 1 (CET1) % 52 bps Capital Position 0.28 0.02 0.89 10.13 9.61 APRA CET1 ratio of 10.1% on an APRA basis or 15.2% on an Internationally -0.51 -0.16 Comparable1 basis – comfortably above Basel top quartile2 CET1 of 13.8%. Net Organ
Slide 29: Regulatory Capital Generation
R E G U L AT O RY C A P I TA L G E N E R AT I O N First half COMMON EQUITY TIER 1 average 2H16 1H17 GENERATION (bps) 1H12 – 1H16 Organic Capital Generation Adjusted pro-forma Cash Profit1 97 84 89 • Net capital generation for 1H17 is 119 bps, RWA movement (21) 22 28 which is 58 bps higher than prior
Slide 30: Internationally Comparable Regulatory Capital Position
I N T E R N AT I O N A L LY C O M PA R A B L E 1 R E G U L AT O RY C A P I TA L P O S I T I O N APRA Common Equity Tier 1 (CET1) – 31 March 2017 10.1% Corporate undrawn EAD Australian ADI unsecured corporate lending LGDs and undrawn CCFs exceed those applied in and unsecured LGD 1.4% many jurisdicti
Slide 31: Balance Sheet Structure
BALANCE SHEET STRUCTURE FUNDED BALANCE SHEET BALANCE SHEET COMPOSITION CHANGE Mar 2017 Sep 16 to Mar 17 $784b $784b LONG TERM SHORT TERM Other Short Term 6% +$14.7b improvement to Long Term +$14.7b reduction in Short funding position Term funding Short Term Liquids Funding 7% 21% Term Funding <12M 3
Slide 32: Net Stable Funding Ratio
N E T S TA B L E F U N D I N G R AT I O Pro-forma NSFR ~111% NSFR COMPOSITION NSFR MOVEMENT Mar 2017 Sep 16 v Mar 17 $478b Wholesale $423b Funding Liquids & Other1 1.8% 113% and Other Assets2 Non 0.3% 1.1% 111% 2.2% 0.1% Financial ~ -2% Corporates -1.1% 108% Other Loans3 Retail/SME Residential Mortg
Slide 33: Liquidity Coverage Ratio
L I Q U I D I T Y C O V E R A G E R AT I O 1H17 Average LCR 135% LCR Composition Movement in Average LCR Surplus (A$b) 1H17 2H16 to 1H17 2H16 1H17 $181b LCR LCR 125% 135% Internal RMBS $34b $134b 1 47 2 Other ALA1 2 $16b Wholesale 3 HQLA 2 Funding 7 $4b $14b 35 -3 Customer HQLA 1 Deposits $127b & Ot
Slide 34: Term Wholesale Funding Portfolio
TERM WHOLESALE FUNDING PORTFOLIO 2 Issuance1 Maturities3 $b 32 26 24 24 23 19 18 18 15 16 16 10 12 FY12 FY13 FY14 FY15 FY16 1H17 2H17 FY18 FY19 FY20 FY21 FY22 FY23+ Senior Unsecured Covered Bonds Tier 2 RMBS WEIGHTED AVERAGE TENOR PORTFOLIO BY TYPE PORTFOLIO BY CURRENCY years 5.5 5% 4.9 5.1 11% 1% 3
Slide 35: Risk
RISK Not for distribution into the United States
Slide 36: Risk Management
RISK MANAGEMENT TOTAL & COLLECTIVE PROVISION (CP) CHARGE TOTAL PROVISION CHARGE CP BALANCE BY DIVISION $m $m 1,500 2,876 2,785 0.6 3,000 1,038 918 1,000 695 720 Mar17 vs Sep16 $m 528 0.4 2,000 461 510 500 Divisional mvt (67) 0.2 FX impact (24) 1,000 0 0.0 -500 -0.2 0 1H14 2H14 1H15 2H15 1H16 2H16 1H
Slide 37: Risk Management
RISK MANAGEMENT INDIVIDUAL PROVISION (IP) CHARGE ANZ HISTORICAL OBSERVED LOSS RATES IP CHARGE COMPOSITION bps $m 300 1,500 1,047 892 787 602 655 200 1,000 542 455 100 500 0 0 Sep Sep Sep Sep Sep Sep Sep Sep Sep Mar -500 90 93 96 99 02 05 08 11 14 17 1H14 2H14 1H15 2H15 1H16 2H16 1H17 IP Loss Rate Me
Slide 38: Risk Management
RISK MANAGEMENT IMPAIRED ASSETS CONTROL LIST GROSS IMPAIRED ASSETS BY DIVISION Index Sep 09 =100 $m 150 4,000 3,620 3,173 2,889 2,708 2,719 2,883 2,940 100 3,000 2,000 50 1,000 0 Sep Sep Sep Sep Sep Sep Sep Sep Mar 0 09 10 11 12 13 14 15 16 17 Mar’14 Sep’14 Mar’15 Sep’15 Mar’16 Sep’16 Mar’17 Control
Slide 39: Risk Management
RISK MANAGEMENT RISK WEIGHTED ASSETS TOTAL RISK WEIGHTED ASSETS TOTAL RWA MOVEMENT $b $b 402 409 397 408.6 387 388 38 39 0.1 397.0 361 362 33 39 38 -10.2 -0.1 -1.4 14 18 32 32 14 17 16 24 21 Sep-16 Credit Op RWA IRRBB Mkt. RWA Mar-17 RWA RWA CRWA MOVEMENT 340 350 352 342 334 $b 305 309 352.0 2.9 341
Slide 40: Risk Management
RISK MANAGEMENT RISK WEIGHTED ASSETS GROUP EAD1 & CRWAs GROUP EAD1 MOVEMENT MAR 17 V SEP 16 $b $b 919 12.7 1.0 914.2 906 910 914 910.4 891 813 -9.9 779 Sep-16 FX Impact Lending Data/Meth. Mar-17 Mvmt. Review GROUP EAD1 & CRWA GROWTH2 MOVEMENT 39.2% MAR 17 V SEP 16 38.0% 38.1% 38.1% 36.9% 38.7% 37.4%
Slide 41: Portfolio Composition
RISK MANAGEMENT PORTFOLIO COMPOSITION % of Portfolio in Portfolio Balance EXPOSURE AT DEFAULT (EAD) AS A % Category % of Group EAD Non Performing in Non Performing OF GROUP TOTAL Sep 16 Mar 17 Sep 16 Mar 17 Mar 17 TOTAL GROUP EAD (Mar 17) Consumer Lending 40.6% 41.2% 0.1% 0.1% $447m = $899b1 Finance
Slide 42: Group Resources Portfolio
RISK MANAGEMENT GROUP RESOURCES PORTFOLIO RESOURCES EXPOSURE BY SECTOR Total EAD (Mar 17): $17b As a % of Group EAD (Mar 17): 1.9% 9.4 8.3 6.8 7.2 4.5 4.6 4.0 3.7 2.8 2.6 2.7 3.0 2.4 1.8 1.4 1.1 1.1 1.4 1.0 0.9 Coal Mining Metal Ore Mining Oil & Gas Extraction Other Mining Services To Mining Mar’14
Slide 43: Commercial Property Portfolio
RISK MANAGEMENT COMMERCIAL PROPERTY PORTFOLIO COMMERCIAL PROPERTY OUTSTANDINGS BY COMMERCIAL PROPERTY OUTSTANDINGS BY REGION1 SECTOR1 $b 38.4 % 37.4 37.5 37.9 37.7 8.0 100 3.9 3.6 2.7 33.9 4.5 4.7 80 7.5 60 4.1 8.8 9.5 9.5 40 8.3 8.4 20 6.9 7.0 Mar’16 Sep’16 Mar’17 Offices Retail Industrial Resident
Slide 44: Group Agriculture Portfolio
RISK MANAGEMENT GROUP AGRICULTURE PORTFOLIO AGRICULTURE EXPOSURE BY SECTOR (% EAD) NEW ZEALAND DAIRY CREDIT QUALITY Total EAD (Mar 17) As a % of Group EAD PD increase reflects impact of NZ$b lower milk prices A$33.9b 3.8% 14.0 12.7 12.0 11.6 11.9 12.4 12.4 12.4 Dairy 9.7% Beef 2.2% 1.9% Sheep & 1.8%
Slide 45: New Zealand Agriculture Portfolio
NEW ZEALAND AGRICULTURE PORTFOLIO1 AGRI PORTFOLIO (GLA) AGRI CREDIT QUALITY – GIA AS % OF GLA NZ$b Dairy as a % of total NZ Geography2 25 12.4% 11.9% 11.7% 10.9% 10.4% 1.15% 1.05% 1.04% 20 0.69% 0.54% 15 10 FY13 FY14 FY15 FY16 1H17 1H15 2H15 1H16 2H16 1H17 Dairy Sheep & Beef Other rural AGRICULTURE
Slide 46: New Zealand
RISK MANAGEMENT NEW ZEALAND NEW ZEALAND GEOGRAPHY GROSS IMPAIRED NEW ZEALAND GEOGRAPHY TOTAL PROVISION ASSETS CHARGE2 NZ$m NZ$m 97 1,818 100 44 40 2.5 22 30 50 1,451 31 46 2.0 50 955 1.5 708 0 419 491 513 1.0 -50 0.5 -39 0.0 -100 Sep 11 Sep 12 Sep 13 Sep 14 Sep 15 Sep 16 Mar 17 1H13 2H13 1H14 2H14 1
Slide 47: ANZ Institutional Portfolio
RISK MANAGEMENT ANZ INSTITUTIONAL PORTFOLIO (COUNTRY OF INCORPORATION1) INSTITUTIONAL PORTFOLIO SIZE & TENOR (EAD2) ANZ INSTITUTIONAL INDUSTRY COMPOSITION $b EAD (Mar 17): A$356b2 400 Finance (Banks and Central Banks) Government Admin. 350 26% 33% Property Services³ Services to Fin. & Ins. 300 Machi
Slide 48: ANZ Asian Institutional Portfolio
RISK MANAGEMENT ANZ ASIAN INSTITUTIONAL PORTFOLIO (COUNTRY OF INCORPORATION1) COUNTRY OF INCORPORATION1 ANZ ASIA INDUSTRY COMPOSITION EAD (Mar 17): A$87b2 EAD (Mar 17): A$87b2 6% Finance 3% 19% Property Services 4% 24% Basic Material Wholesaling 3% Machinery & Equip Mnfg 6% 3% 5% 55% Petroleum,Coal,
Slide 49: ANZ China Portfolio
RISK MANAGEMENT ANZ CHINA PORTFOLIO (COUNTRY OF INCORPORATION1) COUNTRY OF INCORPORATION1 ANZ CHINA INDUSTRY COMPOSITION EAD (Mar 17): A$21b2 EAD (Mar 17): A$21b2 China EAD • Total China EAD of A$21b, with 39% or A$8.2b booked 8% 3% Finance (Banks and Central Banks) onshore in China 10% Manufacturin
Slide 50: Mortgage Portfolio
MORTGAGE PORTFOLIO Not for distribution into the United States
Slide 51: Australia Home Loans
AUSTRALIA HOME LOANS PORTFOLIO OVERVIEW Portfolio1 Flow Portfolio 1H16 1H17 1H17 1H16 1H17 Number of Home Loan accounts 976k 992k 89k2 Average LVR at Origination4,5,6 71% 70% Total FUM1 $243b $256b $34b Average Dynamic LVR5,6,7 51% 51% Average Loan Size $249k $258k $382k Market Share8 15.6% 15.6% %
Slide 52: Australia Home Loans
AUSTRALIA HOME LOANS PORTFOLIO TRENDS HOME LOAN BALANCE & LENDING FLOWS1 HOME LOAN PORTFOLIO: LOAN TO VALUE RATIO1,2,3 $b % of portfolio +5% 50 1 15 40 -55 256 243 52 30 20 10 0 1H16 New sales Net OFI Refi Redraw & Repay 1H17 0-60% 61-75% 76-80% 81-90% 91-95% 95%+ exc Refi-in Interest / Other Sep-12
Slide 53: Australia Division
AUSTRALIA DIVISION PORTFOLIO PERFORMANCE PRODUCT 90+ DAY DELINQUENCIES1 HOME LOAN DELINQUENCIES1 % % 1.5 2.0 1.5 1.0 1.0 0.5 0.5 0.0 0.0 Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- 12 13 14 15 16 17 12 13 14 15 16 17 Home Loans Consumer Cards 30+ DPD 90+ Owner Occupied 90+ Investor C
Slide 54: Quality Assurance, Info Verification & Policy Reviews
AUSTRALIA HOME LOANS UNDERWRITING PRACTICES AND MATERIAL POLICY CHANGES1 Serviceability Multiple checks during origination process Interest rate floor applied to new and existing mortgage lending Quality assurance, info verification & policy reviews Pre - application2 Income & Expenses introduced
Slide 55: Australian Home Loans
AUSTRALIAN HOME LOANS OFFSET ACCOUNTS ANZ PORTFOLIO SECTOR Australian Housing Debt and Offset Accounts $m Mortgages – FUM2 and Offsets3 $m % 300,000 $m 30,000 135 40% % of housing debt to 35% 130 income (LHS) 250,000 25,000 30% 125 200,000 20,000 25% 120 150,000 15,000 20% 115 % of loans with an Off
Slide 56: Australian Home Loans
AUSTRALIAN HOME LOANS STRESS TESTING THE AUSTRALIAN MORTGAGE PORTFOLIO ANZ conducts regular stress tests of its loan portfolios Assumptions Current Year 1 Year 2 Year 3 to meet risk management objectives and satisfy Unemployment regulatory requirements. 5.8% 9.0% 10.5% 11.5% rate Stress tests ar
Slide 57: ANZLMI Has Maintained Stable Loss Ratios
RISK MANAGEMENT ANZLMI HAS MAINTAINED STABLE LOSS RATIOS FINANCIAL YEAR 2016 RESULTS LMI & REINSURANCE STRUCTURE Australian Home Loan portfolio LMI and Reinsurance Structure at 30 Sep 2016 (% FUM) Gross Written Premium ($m) $196m LVR<80% Not LMI Insured Net Claims Paid ($m) $26m 83% Loss Rate (of Ex
Slide 58: New Zealand Mortgages
NEW ZEALAND MORTGAGES PORTFOLIO OVERVIEW 1 Portfolio Growth Portfolio Growth 1H16 1H17 1H17 1H16 1H17 1H17 Number of Home Loan accounts 508k 515k 1.4% Average LVR at Origination2 63% 59% -392bps Total FUM NZ$70b NZ$75b 6.5% Average Dynamic LVR3 46% 42% -376bps Average Loan Size at Origination NZ$295
Slide 59: New Zealand Home Lending
NEW ZEALAND HOME LENDING1 FLOW2 PORTFOLIO 10% 11% 6% 6% 24% 22% 23% 22% 39% 38% 9% 8% 7% 9% 11% 10% 76% 78% 51% 51% 44% 45% 1H16 1H17 1H16 1H17 1H16 1H17 Branch Broker Mobile mortgage managers Fixed Variable Auckland Christchurch Other Nth Is. Wellington Other Sth Is. Other³ MARKET SHARE4 MORTGAGES
Slide 60: New Zealand Auckland
NEW ZEALAND AUCKLAND NET MIGRATION FOR AUCKLAND1 HOUSE PRICES2 Net Migration (000’s) $’000 NZD 1,000 26.0k 31.2k 35.8k Auckland 60 800 600 40 Total NZ 400 20 200 0 0 Mar-15 Mar-16 Mar-17 Mar- Mar- Mar- Mar- Mar- Arrivals Departures 01 05 09 13 17 EXPOSURE TO AUCKLAND HOME LOANS3 ANZ MORTGAGE LVR PRO
Slide 61: Australian Economics Update
AUSTRALIAN ECONOMICS UPDATE Not for distribution into the United States
Slide 62: Australian Economy
AUSTRALIAN ECONOMY GDP GROWTH1 CONSUMER PRICE INFLATION*1 CREDIT GROWTH BY SECTOR 1 AUSTRALIAN GOVERNMENT BUDGET BALANCE*1 (year ended) Per cent of nominal GDP 62 Sources: 1. RBA Chart Pack Aug 2017 Not for distribution into the United States
Slide 63: Australian Economy and Population
A U S T R A L I A N E C O N O M Y A N D P O P U L AT I O N POPULATION GROWTH1 – AUSTRALIA AND G7 INDUSTRY SHARE OF OUTPUT2 % yoy 2.5% 2.0% Australia 1.5% 1.0% G7 weighted average 0.5% 0.0% 1984 1986 1988 1990 1994 1996 2000 2002 2004 2006 2010 2012 2014 2016 1982 1992 1998 2008 POPULATION GROTH – MA
Slide 64: Australian Labour Market
AUSTRALIAN LABOUR MARKET UNEMPLOYMENT RATE1 – AUSTRALIA AND G7 UNEMPLOYMENT AND UNDEREMPLOYMENT2 % 9.0 8.0 Australia G7 7.0 6.0 5.0 4.0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 WAGE PRICE INDEX GROWTH2 WAGE GROWTH AND INFLATION3 5 10.0
Slide 65: Commodity Prices
COMMODITY PRICES1 65 1. RBA Chart Pack May 2017 Not for distribution into the United States
Slide 66: Australian Economy - State by State
A U S T R A L I A N E C O N O M Y – S TAT E B Y S TAT E GDP GROWTH BY STATE1 INVESTMENT BY STATE2 % yoy Chain volume* 4 2 0 -2 -4 -6 -8 -10 NSW VIC TAS SA QLD WA 2014 2015 2016 POPULATION GROWTH1 % yoy 2.5 MAJOR INFRASTRUCTURE PROJECTS3 22 Metronet (WA) 130 Natural Increase ('000) Snowy Hydro Expans
Slide 67: Australian Economy - State by State
A U S T R A L I A N E C O N O M Y – S TAT E B Y S TAT E BUSINESS INVESTMENT BY STATE1 Chain volume* STATE FINAL DEMAND2 Year-ended growth STATE UNEMPLOYMENT RATES2 Trend 67 Sources: 1. Financial Stability Review April 2017, ABS. 2. RBA Chart Pack May 2017, ABS. Not for distribution into the United S
Slide 68: Australian Economy - Service Exports
AUSTRALIAN ECONOMY – SERVICE EXPORTS SERVICE EXPORTS AND AUD1 INTERNATIONAL TOURIST VISA’S GRANTED2 5 2.5 40 28% growth 45 2.0 50 1.5 55 AUDbn, 3-month sum 60 1.0 4 65 Index 0.5 70 0.0 75 80 -0.5 85 -1.0 90 3 95 97 99 01 03 05 07 09 11 13 15 17 Net tourism & education related exports (LHS) 2013 2014
Slide 69: Australian Housing Dynamics
AUSTRALIAN HOUSING DYNAMICS PRIVATE RESIDENTIAL BUILDING APPROVALS1 DWELLING APPROVALS BY STATE1 Monthly Yearly HOUSING LOAN APPROVALS1 Dwelling completions per million population2 Quarterly 2,600 0.5% 2,400 2,200 1.0% 2,000 1,800 1.5% 1,600 1,400 2.0% 1,200 1,000 2.5% Sep-1984 Sep-1986 Sep-1988 Sep
Slide 70: Australian Housing Dynamics
AUSTRALIAN HOUSING DYNAMICS MEDIAN HOUSE PRICES1 HOUSE PRICE GROWTH2 ‘000 1200 April 2017 All dwellings Houses Units 1000 All Capitals Sydney Melbourne Perth City yoy % mom % yoy % mom % yoy % mom % 800 Other Sydney 16.04 -0.04 17.40 0.19 9.82 -1.19 Melbourne 15.27 0.50 16.52 0.64 4.12 -0.91 600 Bri
Slide 71: Dynamics Supporting NSW & VIC Housing
DYNAMICS SUPPORTING NSW &VIC HOUSING CHANGE IN EMPLOYMENT BY STATE2 NSW – Dwelling completions per million population2 Past 3 years quarterly ACT (trend) Completions per million population (LHS) 2,500 Long run average (LHS) 0.0% NT (trend) 2,300 Population growth yoy % - inverted (RHS) 2,100 0.5% Ta
Slide 72: Australian Housing
AUSTRALIAN HOUSING HOUSEHOLD DEBT AND INCOME Household Debt and Deposits1 Household Debt-to-income2 % of annual household disposable income Income quintile, median* 200 Household Debt to Disposable Income 160 Household Debt 120 (Net of Deposits) 80 Household 40 Deposits to Disposable Income 0 Mar-19
Slide 73: Offset Balances and Adjusted LVR
O F F S E T B A L A N C E S A N D A D J U S T E D LV R LOAN-TO-VALUATION RATIOS Balanced-Weighted Share of Securitised Loans 73 Not for distribution into the United States
Slide 74: Further Information
F U R T H E R I N F O R M AT I O N DISCLAIMER & IMPORTANT NOTICE: 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 t
Australia and New Zealand Banking Group — Debt Investor Presentation (August 2017) on 6ix