Anz Group Holdings Limited · ASX:ANZ
Anz — FY2023 Earnings Presentation
157 slides from Anz's earnings presentation, Nov 13, 2023
Slide 1: 2023 Full Year Results
2023 FULL YEAR RESULTS FULL YEAR ENDED 30 SEPTEMBER 2023 RESULTS PRESENTATION AND INVESTOR DISCUSSION PACK 13 NOVEMBER 2023 Approved for distribution by ANZ’s Continuous Disclosure Committee ANZ Group Holdings Limited ABN 16 659 510 791 9/833 Collins Street Docklands Victoria 3008 Australia
Slide 2: Contents
ANZ 2023 Full Year Results Results Presentations 3 Chief Executive Officer (CEO) 3 Chief Financial Officer (CFO) 22 Investor Discussion Pack 41 Group Performance 41 Divisional Performance 56 Treasury 87 CONTENTS Risk Management 99 Housing Portfolio 114 Corporate Profile 126 Environment, Social & Gov
Slide 3: Important Information
ANZ 2023 Full Year Results IMPORTANT INFORMATION FORWARD-LOOKING STATEMENTS The material in this presentation contains general background information about the Group’s activities current as at 12 November 2023. It is information given in summary form and does not purport to be complete. It is not in
Slide 4: 2023 Full Year Results – CEO
2023 FULL YEAR RESULTS SHAYNE ELLIOTT CHIEF EXECUTIVE OFFICER
Slide 5: Our purpose is to shape a world where people and communities thrive
ANZ 2023 Full Year Results Our purpose is to shape a world where people and communities thrive 4
Slide 6: Group Financial Results FY23 vs FY22
ANZ 2023 Full Year Results GROUP FINANCIAL RESULTS FY23 vs FY22 Statutory profit, $ million 7,098 Flat Cash Profit Continuing operations, $ million Revenue 20,893 +13% Cash Profit 7,405 +14% Return on equity, % 10.9% +54 bps Earnings per share - basic, cents 247.1 +8% Dividend per share1, cents 175
Slide 7: All four major divisions contributed to a strong FY23 result
ANZ 2023 Full Year Results ALL FOUR MAJOR DIVISIONS CONTRIBUTED TO A STRONG FY23 RESULT Return on Equity1, FY23 % Australia Retail2 Australia Commercial Institutional New Zealand (NZD) 26% 16% 14% 13% Basis: Cash profit continuing operations 1. Australia Retail, Australia Commercial, Institutional &
Slide 8: Position of Strength
ANZ 2023 Full Year Results POSITION OF STRENGTH Returns Capital Strength Credit Quality Net Tangible Assets Return on Equity, % APRA Level 2 CET1 Ratio1, % Risk intensity, CRWA/EAD2 , NTA / Share, $ (inverted scale) % 11.7 13.3 30 21.78 12.3 12.3 31 21.09 10.9 32 20.75 10.4 9.9 FY21 FY22 FY23 FY23 S
Slide 9: Disciplined Delivery: FY23 Priorities
ANZ 2023 Full Year Results DISCIPLINED DELIVERY FY23 PRIORITIES GREW INCREASED INVESTED MAINTAINED PREPARED Commercial Banking focus on productivity further in the risk disciplines & for a successful approval Sustainable Finance while protecting our differentiation of our continuing to recycle & int
Slide 10: Australia Retail – 14% ROE
ANZ 2023 Full Year Results 1 AUSTRALIA RETAIL – 14% ROE • Sales volume up 19% Growing digital engagement % of deposit accounts5 opened through digital • Time to first decision2 consistently within 3 channels Home loan days capability 68% • First touch approval rate up 58% 61% 59% • Broker NPS improv
Slide 11: 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 500 10 automated 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 12: 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 = Commercial 100 customer • ~56% of customers have a Retail product 400 contribution • Over 60% of Transactive Global users are Commercia
Slide 13: New Zealand – 16% ROE
ANZ 2023 Full Year Results 1 NEW ZEALAND – 16% ROE 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 40 • Canstar Bank of the Year fo
Slide 14: 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 15: Institutional – Payments & Currency Processing
ANZ 2023 Full Year Results INSTITUTIONAL – PAYMENTS & CURRENCY PROCESSING Payments Real Time Payments Client Monies Markets FX #m NPP1 Agency Payments, #m Platform Cash Mgt Accounts2 Turnover volume, #’000s Index FY19 =100 +8% +27% +25% +17% 654 42 430 154 608 132 33 343 116 100 104 400 268 307 323
Slide 16: Customer Protection
ANZ 2023 Full Year Results CUSTOMER PROTECTION Investing significantly to keep customers safer from frauds and scams Prevented Removed Blocked Analysed Stopped >$100 >20k ~1,600 ~12m >10b m from being phishing or attacks against customer events through our scam SMS transferred fraudulent websites fa
Slide 17: 'Scam Safe' for ANZ Plus
ANZ 2023 Full Year Results ‘SCAM SAFE’ FOR ANZ PLUS A suite of extra security controls for ANZ Plus Greater control to customers, including permissions around use of their data to help detect fraud and scams Education on related threats and how data is used to protect them Controls around cryptocurr
Slide 18: Australia Economy
ANZ 2023 Full Year Results AUSTRALIA ECONOMY Inflation 12.5 Employment to population ratio Capacity utilisation 10.5 Household consumption per person Wage Price Index 8.5 Job ads as a share of the labour force Terms of Trade 6.5 Business conditions Inflation expectations 4.5 House prices as a share
Slide 19: 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 20: Consistent Approach
ANZ 2023 Full Year Results CONSISTENT APPROACH PRIORITIES ESTABLISHED 7 YEARS AGO REMAIN RELEVANT 1. Creating a simpler, 2. Focusing on areas better balanced bank where we can win 3. Building a superior everyday 4. Driving a purpose and values led experience to compete in the digital transformation
Slide 21: FY24 Priorities
ANZ 2023 Full Year Results FY24 PRIORITIES 1. 2 3. 4. 5. 6. Continue to Further Grow ANZ Plus Invest more in Further Complete the run the Group improve customers, Commercial enhance acquisition of prudently productivity deepen strategy Sustainability, Suncorp Bank engagement Payments & Currency plat
Slide 22: Diversified business delivering for our stakeholders
ANZ 2023 Full Year Results DIVERSIFIED BUSINESS DELIVERING FOR OUR STAKEHOLDERS 2023 Full Year Performance Profit Before Tax Australia Retail $6.5b Total Revenue Net Profit After Tax $7.4b Australia Comm. $3.6b Income Tax $3.1b Expenses Institutional $6.9b Personnel $5.6b New Zealand $3.6b Other $4.
Slide 23: 2023 Full Year Results – CFO
2023 FULL YEAR RESULTS FARHAN FARUQUI CHIEF FINANCIAL OFFICER
Slide 24: Overview
ANZ 2023 Full Year Results OVERVIEW FY23 vs Full Year Highlights, FY23 vs FY22 FY22 FY23 Cash Profit $7.4b +14% Revenue growth +13% Financial Return on Equity 10.9% +54bps Revenue growth across all major divisions +4% to +26% Performanc e Risk Adj. Margins1 5.19% +76bps Met cost guidance2 +5% Low lo
Slide 25: FY23 Capital Allocation and Return Profile
ANZ 2023 Full Year Results FY23 CAPITAL ALLOCATION AND RETURN PROFILE FY23 Return on Equity, % Aus. Total Group Aus. Retail Institutional New Zealand Commercial % 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 26: Shareholder Returns
ANZ 2023 Full Year Results SHAREHOLDER RETURNS Cash NPAT, $m Cash EPS, cents Return on Equity, % Total Shareholder Returns, to 30 Sep 2023 +14% +8% +54bps 7,405 247 ~270 10.9 ~11.7% 20% 229 excluding 10.4 excluding 6,515 capital held capital held for Suncorp for Suncorp 16% Bank Bank acquisition acq
Slide 27: 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 Divisiona Market Divestments3 Other4 FY23 2H22 1H23 2H23
Slide 28: Customer Deposits
ANZ 2023 Full Year Results 1 CUSTOMER DEPOSITS 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 29: 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 333 430 FY21 313 410 +11
Slide 30: 2H23 Net Interest Margin 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 - Higher funding 3 costs primarily on commodity assets with the related revenues recognised as Other Operating Income 2H22 1H23
Slide 31: Net Interest Margins – Half Yearly Trends
ANZ 2023 Full Year Results NET INTEREST MARGINS (NIM) – HALF YEARLY TRENDS1 NIM1 - Regional View, bps NIM1 - 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 NZ Division Australia $408b $120b Rest of World $6
Slide 32: Net Interest Margin & Risk Adjusted Margin
ANZ 2023 Full Year Results NET INTEREST MARGIN (NIM) & RISK ADJUSTED MARGIN Indexed data, FY16 = 100 NIM and Risk Adjusted Margin half year trends, % 115 5.5 110 105 5.0 100 4.5 95 90 85 2.0 80 75 1.5 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 1H22 2H22 1H23 3Q23 4Q23 Group NIM Group NIM ex. Markets1 R
Slide 33: 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 75 292 252 757 670 112 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 34: Operating Expenses
ANZ 2023 Full Year Results OPERATING EXPENSES MET FULL YEAR GUIDANCE FY23 Total Operating Expenses, $m 2H23 Total Operating Expenses, $m Met FY23 guidance: total expenses excluding large / 2H23 costs flat excluding large / notable items1 notable items1 would increase by ~5% in FY23 (FX (FX adjusted)
Slide 35: 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 capitalised run costs, and software Includes investments in balance Suncorp & Wage & Inc
Slide 36: 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 Sovereigns 14% 22% 0bps Banks & FIs 9% 10% ~1bps 74% Rest of Group Residential 40% Mortgages ~3bps 39% Re
Slide 37: 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 38: 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 39: Capital
ANZ 2023 Full Year Results CAPITAL APRA Level 2 Common Equity Tier 1 (CET1) Ratio, % L1 12.9% 0.82 L1 13.2% 13.18 -0.07 13.34 -0.55 -0.04 L1 12.6% 0.03 12.09 -1.28 Mar 23 Cash Profit Underlying Net dividend Capital Sep 23 Suncorp Bank Surplus Sep 23 RWA (ex deduction acquisition NOHC pro FX) s & Oth
Slide 40: 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 Balance declined. Covid dividend earnings relative to Aus 66% Partial franking credit 1H23 vs 2H23 for Final 2019 Divide
Slide 41: CFO Focus to Deliver Sustainable Returns
ANZ 2023 Full Year Results CFO FOCUS TO DELIVER SUSTAINABLE RETURNS Diversification, FY23 Return on Equity % Aus. Strategic Execution Total Group Aus. Retail Commercial Institutional New Zealand ~36% ~26% ~14% ~16% 16% ~11% ~11% ~11% Productivity Group ROE1 Retail1 Commercial Transactio Corporate Fi
Slide 42: Investor Discussion Pack: Group Performance
2023 FULL YEAR RESULTS INVESTOR DISCUSSION PACK GROUP PERFORMANCE
Slide 43: Shareholder Returns
ANZ 2023 Full Year Results SHAREHOLDER RETURNS Cash Earnings Per Share (EPS) and Dividend Per Share DPS composition, cents (DPS), cents Dividend Payout Ratio (DPOR), % 300 79% 69% 69% 71% 68% 71% 70% 65% 65% 71% 260 260 45% 250 247 239 237 223 228 229 218 203 178 181 175 200 164 160 160 160 160 142
Slide 44: Supporting Our Stakeholders
ANZ 2023 Full Year Results SUPPORTING OUR STAKEHOLDERS Our people Employing over 40,000 staff, paying salaries and investing in their skills 11% Our suppliers and other partners Technology, property and other products 8% Our customers & and services to help support our customers Distribution fixed i
Slide 45: Balance Sheet Composition
ANZ 2023 Full Year Results BALANCE SHEET COMPOSITION Exposure At Default1, EOP Risk Weighted Assets, EOP $b Net Loans & Advances, EOP Customer Deposits, EOP $b $b $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 46: Net Loans and Advances
ANZ 2023 Full Year Results NET LOANS AND ADVANCES End of Period Net Loans & Advances, $b +5% 672 690 707 +8% +1% +5% +2% 290 301 312 207 208 210 58 59 61 129 128 131 Total Group Australia Retail Australia Commercial1 Institutional New Zealand (NZD) Sep 22 Mar 23 Sep 23 Average Net Loans & Advances B
Slide 47: 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 2 1 41 1 33 295 306 279 284 100
Slide 48: Customer Deposits
ANZ 2023 Full Year Results CUSTOMER DEPOSITS Australia Retail, $b Australia Commercial, $b New Zealand, NZDb Institutional, $b +7% +1% -4% 0% 165 116 106 278 112 113 113 104 104 105 263 266 155 1 150 247 2 1 147 19 45 21 2 27 30 44 34 38 43 42 46 41 106 128 113 102 33 14 16 27 67 22 61 22 57 57 22 3
Slide 49: 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 Ma Sep Ma Sep Ma Sep Ma Sep Ma Sep Ma Sep Ma Sep Ma Sep Ma
Slide 50: Financial Performance
ANZ 2023 Full Year Results FINANCIAL PERFORMANCE FY23, $m 2,346 -560 7,405 6,515 -477 -419 FY22 NPAT Revenue Expenses Provisions Tax & NCI FY23 NPAT Growth +13% +6% +206% +16% +14% 2H23, $m 3,821 50 3,584 21 -163 -145 1H23 NPAT Revenue Expenses Provisions Tax & NCI 2H23 NPAT Growth -2% +3% -16% -3%
Slide 51: 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 0.2 0.3 0.5 3.6 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 0.3 1.8 0.4 7.8 0.2 0.2 1.8 0.0 0.1 1.8 0.1
Slide 52: 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 53: 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 54: Investing in the Business
ANZ 2023 Full Year Results INVESTING IN THE BUSINESS Total Investment Spend (Expensed & Capitalised)1, Size of pie illustrative of amount of total spend FY16 FY20 FY23 7% 11% 35% 31% 21% 62% 54% 25% 54% Growth, Productivity & Simplification Regulatory, Compliance & Risk Infrastructure and Other Asse
Slide 55: Risk Adjusted Margin
ANZ 2023 Full Year Results RISK ADJUSTED MARGIN Group1 Australia Retail Australia Commercial Institutional1 New Zealand, NZD Net Interest Income / Average Credit Risk Weighted Assets (CRWA), % 8.06 7.81 8.84 6.47 6.23 6.28 5.15 8.37 5.05 4.77 6.30 6.16 6.16 6.18 6.43 7.05 2.78 2.87 5.64 5.63 5.19 5.
Slide 56: Risk Adjusted Return
ANZ 2023 Full Year Results RISK ADJUSTED RETURN Group Australia Retail Australia Commercial Institutional New Zealand, NZD Profit Before Provisions / Average Total Risk Weighted Assets 4.12 3.85 (RWA), % 4.30 4.36 3.82 3.66 3.73 3.80 3.59 2.40 2.23 3.07 2.44 1.90 3.55 3.20 3.19 3.14 2.46 2.53 2.02 1
Slide 57: Investor Discussion Pack: Divisional Performance
2023 FULL YEAR RESULTS INVESTOR DISCUSSION PACK DIVISIONAL PERFORMANCE
Slide 58: 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 2,975 3,068 1,656 1,026 353 281 937 269 370 848 2,706 2,821 3,018 2,698 1H22 2H22 1H23 2H23 1H22 2H22 1H23 2H23 1H
Slide 59: 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 82 6 325 332 341 354 53 32 45 50 48 -11 -5 5 279 284 295 306 -1
Slide 60: Australia Retail – Contribution
ANZ 2023 Full Year Results AUSTRALIA RETAIL – CONTRIBUTION Group & Retail contribution, 2H23 $b Income Net Loans and Advances (NLA) 306 284 295 16 279 14 30% 12 10 56% 44% 8 6 6 6 6 6 70% 4 Home Loans Cards, Personal Loans & Other Mar 22 Sep 22 Mar 23 Sep 23 Cash Profit After Tax Customer Deposits $
Slide 61: ANZ Plus – Tailored to Customers' Needs
ANZ 2023 Full Year Results ANZ PLUS – TAILORED TO CUSTOMERS’ NEEDS Delivering better propositions… …with targeted features customers love Transact & Save features driving customer engagement: ANZ Plus customer Ditch my wallet | start using my digital propositions card immediately Safe & secure | Adv
Slide 62: ANZ Plus – Buy and Own a Home
ANZ 2023 Full Year Results ANZ PLUS - BUY AND OWN A HOME DELIVERING AUTOMATED PROCESSES THROUGHOUT THE HOME LOAN JOURNEY WITH INTERVENTION BY EXCEPTION Application Finances Credit Assessment Settlement Loan Management Easy to use digital application, Digital statement of position with Automated cred
Slide 63: ANZ Plus
ANZ 2023 Full Year Results ANZ PLUS MORE EFFICIENTLY DRIVE HIGHER CUSTOMER GROWTH, GREATER ENGAGEMENT AND BETTER FINANCIAL HEALTH How we measure success More Greater propensity Brand consideration # New customers attractive to join % Main Bank customers Relative app store rating # ANZ customers migr
Slide 64: ANZ Plus Engagement and Operational Metrics
ANZ 2023 Full Year Results ANZ PLUS ENGAGEMENT AND OPERATIONAL METRICS How we measure success, Sep 23 (Growth Sep 23 vs Sep 22) Average balance per customer +34% +56 Onboarding NPS episode +24% App store rating +21% +53 Coach NPS episode +39% % customers with a funded account +25% % customers with s
Slide 65: 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 1,595 175 649 652 685 190 739 701 477 185 668 1,410 1,632 1,592 1,158 1H22 2H22 1H23 2H23 1H22 2H22 1H23 2H23 1H22 2H22
Slide 66: 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 67: Australia Commercial – Contribution
ANZ 2023 Full Year Results AUSTRALIA COMMERCIAL – CONTRIBUTION Group & Commercial contribution, 2H23 Income Net Loans and Advances (NLA) $b 60 60 62 58 1 1 2 1 21 17% 18 20 20 91% 9% 40 39 38 39 83% Mar 22 Sep 22 Mar 23 Sep 23 SME Banking Specialist Business Central Functions Cash Profit After Tax C
Slide 68: Australia Commercial – Composition & Risk Weight Intensity
ANZ 2023 Full Year Results AUSTRALIA COMMERCIAL – COMPOSITION & RISK WEIGHT INTENSITY Diversified portfolio – Geographical view Security profile Sep 23 % of Exposure at Default (EAD)1 % of Exposure at Default (EAD)2,3 11% 5% 3% 3% 3% 3% 8% 30% 5% 5% 5% 5% 5% VIC/TAS WA NSW/ACT SA/NT 13% 12% 11% 11%
Slide 69: ANZ's Partnership with Worldline
ANZ 2023 Full Year Results ANZ’S PARTNERSHIP WITH WORLDLINE DELIVERING MARKET LEADING MERCHANT PLATFORM AND LAUNCHING TAP TO PAY Partnership with Worldline • Joint Venture with Worldline, a world class payments provider • Provides ANZ small business, commercial and institutional customers in Austral
Slide 70: 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 71: 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 Total Provision Charge, NZDm Assets, NZDb 125 129 128 131 145 148 149 151 81 82 10 40 77 76 85 72 19 64 65 21 -14 -4
Slide 72: New Zealand Division – Contribution
ANZ 2023 Full Year Results NEW ZEALAND DIVISION – CONTRIBUTION Group & New Zealand contribution, 2H23 (AUD) Income Net Loans and Advances (NLA)1,2 NZDb 125 129 128 131 24 26 25 25 83% 17% 83% 17% 101 103 103 106 Mar 22 Sep 22 Mar 23 Sep 23 Personal Business & Agri Cash Profit After Tax Customer Depo
Slide 73: New Zealand Division – Balance Sheet
ANZ 2023 Full Year Results NEW ZEALAND DIVISION – BALANCE SHEET Housing1 Business2 Agri ANZ Performance (NZDb) ANZ Performance (NZDb) ANZ Performance (NZDb) 150 15 30 103.1 104.2 104.6 107.3 100 10 6.9 7.3 7.3 6.9 20 15.7 15.4 15.1 15.1 50 5 10 0 0 0 Mar 22 Sep 22 Mar 23 Sep 23 Mar 22 Sep 22 Mar 23
Slide 74: 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 Ma Jun Sep Dec Ma Jun Sep Dec Ma Jun Sep Dec Ma Jun Sep Dec Ma Jun Sep 18 18 r 19 19 19 19 r 20 20 20 20 r 21 21 21 21
Slide 75: Institutional – Summary
ANZ 2023 Full Year Results INSTITUTIONAL – SUMMARY Customer Franchise Revenue1, $m Risk Adjusted NIM2,3, bps Transactional Deposits & Payments 3,052 3,003 Operational / At-Call Deposit NIM # of Digital 194 227 2,613 152 173 171 Deposits ($b) (bps) Payments Processed (m) 2,400 2,333 351 1,613 1,584 2
Slide 76: Institutional – Financial Performance
ANZ 2023 Full Year Results INSTITUTIONAL – FINANCIAL PERFORMANCE Income Expenses Returns Income composition, $m Total expenses, $m Cash Profit, $m 1,328 1,380 1,597 3,444 3,290 1,273 1,293 1,366 2,555 2,793 1,128 599 1,373 1,321 483 868 809 391 783 114 248 251 199 234 1,772 1,925 2,071 1,969 750 496
Slide 77: 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, Total Provision Charge, $m $b 207 208 210 535 541 529 188 487 13 5 30 1 -15 -26 -36 199 208 183 175 -2 -79 -25 -6 -74 Mar
Slide 78: Institutional – Contribution
ANZ 2023 Full Year Results INSTITUTIONAL – CONTRIBUTION Group & Institutional contribution, 2H23 $b Income Net Loans and Advances (NLA) 207 208 210 188 41 41 45 33 21 19 20 19 68% 32% 70% 30% 145 148 145 136 Mar 22 Sep 22 Mar 23 Sep 23 Corporate Finance Transaction Banking Markets Cash Profit After
Slide 79: Institutional – Income
ANZ 2023 Full Year Results INSTITUTIONAL – INCOME Income composition by product1, $m Income composition by region, $m 3,444 3,444 3,290 3,290 2,793 1,149 2,793 958 1,390 2,555 2,555 1,201 755 1,003 812 846 16 862 922 485 481 15 672 415 452 406 214 243 238 205 1,569 1,608 1,303 1,375 1,071 1,136 1,19
Slide 80: Institutional Margins
ANZ 2023 Full Year Results INSTITUTIONAL MARGINS Risk Adjusted NIM1 drivers, bps Risk Adjusted NIM1 – by geography, bps Regulatory Change 49 351 3 Institutional Australia & PNG 294 6 360 -1 351 292 294 246 224 222 230 222 253 240 207 190 202 208 208 278 287 278 271 1H23 Mix Deposit Asset Margins Reg
Slide 81: Institutional – Credit Risk Weighted Assets
ANZ 2023 Full Year Results INSTITUTIONAL – CREDIT RISK WEIGHTED ASSETS (CRWA) CRWA average1, $b CRWA movement HoH, EOP $b 150 1 160 167 165 3 3 145 5 31 1 144 29 35 3 -5 18 19 19 34 -2 19 -1 108 114 108 88 1H22 2H22 1H23 2H23 Mar 23 FX Data Volume Risk Derivatives Sep 23 Methodolog Migratio Corporat
Slide 82: Institutional – Markets Income Composition
ANZ 2023 Full Year Results INSTITUTIONAL – MARKETS INCOME COMPOSITION Markets Income composition, $m Markets avg. Value at Risk (99% VaR), $m 1,490 Traded VaR has largely reverted to pre-COVID levels. Traded VaR remained flat HoH as desks kept risk positioning 131 consistent. Non-Traded VaR increase
Slide 83: Consistency of Markets Income
ANZ 2023 Full Year Results CONSISTENCY OF MARKETS INCOME Markets historical monthly income, $m Characteristics of monthly income distribution Historical monthly revenue distribution (FY15-FY23) • FY23 revenues were consistent with long run through-the-cycle performance 400 expectations for the Marke
Slide 84: Institutional – Regional Summary
ANZ 2023 Full Year Results INSTITUTIONAL - REGIONAL SUMMARY Australia & PNG New Zealand International Customer Franchise Revenue¹, $m Customer Franchise Revenue¹, $m Customer Franchise Revenue¹, $m 1,170 1,055 1,326 1,315 1,419 1,476 425 463 472 1,214 412 873 355 719 707 561 653 732 271 280 689 572
Slide 85: 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 86: 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 87: 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 88: Investor Discussion Pack: Treasury
2023 FULL YEAR RESULTS INVESTOR DISCUSSION PACK TREASURY
Slide 89: 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 Level 2 CET1 capital ratio (pro form
Slide 90: 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 ● Level 2 CET1 ratio of 13.3% (19.7% on an Internationally Comparable basis1) or ~12.1% an additional o
Slide 91: 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 & IRB Floo
Slide 92: 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 93: Balance Sheet Structure
ANZ 2023 Full Year Results BALANCE SHEET STRUCTURE1 NSFR movement, % Pro forma NSFR is ~115.4% once RSF Balance sheet composition, Sep 23 benefit 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 94: 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 95: Term Wholesale Funding Portfolio
ANZ 2023 Full Year Results TERM WHOLESALE FUNDING PORTFOLIO1 Issuance, $b Includes ~$3b of pre- Maturities, $b funding 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
Slide 96: 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 97: 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 Tier 2 capital, Notional amount % requirements • 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 98: 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 99: 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 Consultation 2026 Book (incl. Counterparty Credit Risk) Interest Rate Risk in the Banking Book Finalise Implementation
Slide 100: Investor Discussion Pack: Risk Management
2023 FULL YEAR RESULTS INVESTOR DISCUSSION PACK RISK MANAGEMENT
Slide 101: 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 102: Individual Provision (IP) Charge
ANZ 2023 Full Year Results INDIVIDUAL PROVISION (IP) CHARGE Individual Provision charge / (release), $m Individual Provision charge by division1, $m 626 626 398 395 398 395 807 187 592 500 69 87 375 - -30 123 266 8 187 247 168 201 217 123 158 175 87 93 80 103 54 51 36 69 22 -30 -116 - -274 -280 -268
Slide 103: Collective Provision (CP) Charge & Balance
ANZ 2023 Full Year Results COLLECTIVE PROVISION (CP) CHARGE & BALANCE Collective Provision charge, $m Collective Provision balance, $m 1.39% 1.25% 1.22% 1.17% 1.17% 1.16% 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1.08% 1.07% 0.94% 5,008 CP charge 4 1,048 669 -678 -145 -371 60 163 -11 4,501 696 11
Slide 104: 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 105: Portfolio Composition and Coverage Ratios
ANZ 2023 Full Year Results PORTFOLIO COMPOSITION AND COVERAGE RATIOS Gross Loans & Advances Credit RWA Exposure at Default1 Exposure at Default1 Expected Credit Loss (ex Sovereign & Financial (Collective Provision Institution) Balance) $711b $349b $1,163b $797b $4.03b 3% 1% 3% 3% 1% 2% 6% 5% 20% 39%
Slide 106: Expected Credit Loss – Economic Scenarios
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 107: 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 Ma Sep Ma Sep Ma Sep Ma Sep Ma Sep Ma Sep Ma Sep Mar 20 Mar 21 Mar 22 Sep 22 Mar 23 Sep 23 16 r 17 17 r 18 18 r 19 19 r 2
Slide 108: 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 -28.5 144 -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 109: Risk Weighted Assets & Exposure at Default Composition
ANZ 2023 Full Year Results RISK WEIGHTED ASSETS & EXPOSURE AT DEFAULT COMPOSITION1 EAD composition, $b EAD & CRWA movement, FY23 vs FY22 FX adjusted22.4 $b 1,193 1,152 1,163 14.6 16 1,080 8 40 38 14 47 38 6.3 6 44 49 48 0.4 3.0 0.5 2.9 2.7 0.3 1,010 977 10 45 9 47 251 53 46 249 43 333 295 -20.1 286
Slide 110: Total Portfolio Composition
ANZ 2023 Full Year Results TOTAL PORTFOLIO COMPOSITION Exposure at Default (EAD) distribution % of Impaired Assets Gross Impaired 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 111: 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% 18% 18% 19% 53.4 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 112: 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 96% of unsecured limits • ~80% of exposures
Slide 113: 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 114: 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 115: Investor Discussion Pack: Housing
2023 FULL YEAR RESULTS INVESTOR DISCUSSION PACK HOUSING
Slide 116: 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 117: Australia Home Loans – Portfolio Composition
ANZ 2023 Full Year Results AUSTRALIA HOME LOANS – PORTFOLIO COMPOSITION Home Loan balance composition1,2, $b Home Loan balance & lending flows1,4, $b 304 293 3 21 278 278 283 3 41 14 25 304 5 4 4 24 3 283 21 22 23 3 -55 5 4 3 68 65 62 62 63 Sep 22 New Sales Net OFI Refi. Redraw Repay / Other Sep 23
Slide 118: Australia Home Loans – Portfolio Composition & Flow
ANZ 2023 Full Year Results AUSTRALIA HOME LOANS – PORTFOLIO COMPOSITION & FLOW By Purpose, % of total balances LVR profile5, % of total balances Portfolio1,2 Flow3 Dynamic LVR – Portfolio6 Origination LVR - Flow3 2% 1% 1% 1% 0% 0% 11% 17% 16% 18% 22% 17% 30% 31% 31% 31% 35% 34% 18% 21% 20% 83% 84% 8
Slide 119: 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 120: Australia Home Loans – Portfolio Resilience
ANZ 2023 Full Year Results AUSTRALIA HOME LOANS – PORTFOLIO RESILIENCE Fixed rate Home Loan expiry profile, $b ANZ flow borrowing capacity1, FY23 27 9% 2% 23 20 18 Surplus Capacity Minimal Capacity At Capacity 12 12 89% 30+ DPD at September 23 by fixed rate expiry month 2H22 1H23 2H23 1H24 2H24 >2H2
Slide 121: Australia Home Loans – Book Originated and Attributes
ANZ 2023 Full Year Results AUSTRALIA HOME LOANS – BOOK ORIGINATED AND ATTRIBUTES Home Loans portfolio, Sep 23 ANZ interest rate buffer & floor Total Portfolio Home loan applications are assessed at the greater ($b) 304 of the customer interest rate plus the interest rate With the rising rate environ
Slide 122: Australia Home Loans – Portfolio Performance
ANZ 2023 Full Year Results AUSTRALIA HOME LOANS – PORTFOLIO PERFORMANCE Home Loans 90+ DPD (by State)1,2 Home Loans delinquencies1,2,3,4 % of Portfolio Segment Balances % of Portfolio Segment Balances 2.5 2.5 2.0 1.5 1.0 2.0 0.5 0.0 Sep Mar Sep Mar Sep Mar Sep Mar Sep 19 20 20 21 21 22 22 23 23 1.5
Slide 123: Australian Housing – Leading Indicators
ANZ 2023 Full Year Results AUSTRALIAN HOUSING – LEADING INDICATORS Monthly Changes in Savings Balances1, #000s of Repayment profile, % accounts 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 124: 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 Gross Written Premium ($m) $83.1m 23 (% New Business FUM Oct 22 to Sep 23) Net Claims Paid ($m) Not LMI Insured $4
Slide 125: 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% NZD104 NZD107 Average Dynamic LVR 35% 37% 40% Total FUM NZD99b NZD24b NZD
Slide 126: New Zealand Loans – Home Lending & Arrears Trends
ANZ 2023 Full Year Results NEW ZEALAND LOANS – HOME LENDING & ARREARS TRENDS Home Loan LVR profile1 Housing flows Housing portfolio 1% 1% 3% 4% 10% 11% 11% 6% 5% 7% 46% 56% 60% 12% 10% 13% 90% 89% 89% 14% 54% 44% 40% 15% FY21 FY22 FY23 Sep 21 Sep 22 Sep 23 Proprietary Broker Fixed Variable 80% Housi
Slide 127: Investor Discussion Pack: Corporate Profile
2023 FULL YEAR RESULTS INVESTOR DISCUSSION PACK CORPORATE PROFILE
Slide 128: Corporate Profile
ANZ 2023 Full Year Results CORPORATE PROFILE Overview1 ANZ traces its origins to the Bank of Australasia, which ANZ opened its first office in Sydney in 1835. The bank • More than 40,000 ANZ people across 29 markets Employees & established a Melbourne office in 1838, where ANZ's • ~9.5m customers ac
Slide 129: ANZ Corporate Profile – Divisions
ANZ 2023 Full Year Results ANZ CORPORATE PROFILE - 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 business unit
Slide 130: ANZ's Global Presence
ANZ 2023 Full Year Results ANZ’S GLOBAL PRESENCE Institutional has a significant international footprint which enables it to connect clients to opportunities globally Australia, New Zealand, Pacific Australia Cook Islands Samoa New Zealand Fiji Tonga Papua New Guinea Kiribati Timor Leste Solomon Isl
Slide 131: Our Purpose & Strategy
ANZ 2023 Full Year Results OUR PURPOSE & STRATEGY Our purpose is to shape a world where people and communities thrive It explains ‘why’ we exist and drives everything we do at ANZ, including the choices we make each day about those we serve and how we operate. We bring our purpose to life through ou
Slide 132: The Bank We're Building – Value Creation Model
ANZ 2023 Full Year Results THE BANK WE’RE BUILDING Value Creation Model Better customer propositions: Better access to capital and talent, ‘purposeful’, engaging, efficient and driving greater capacity to invest ‘safe’ Customers will have Better financial wellbeing & better financial sustainability
Slide 133: ANZ: The Bank We're Building
ANZ 2023 Full Year Results ANZ: THE BANK WE’RE BUILDING Giving our customers access to ‘We are the Bank for those in Australia & New Zealand who want to buy and own a home or start, run, and grow a small business and for those larger businesses trading and investing in Asia Pacific’ Propositions Pur
Slide 134: Focused on Portfolio Optimisation
ANZ 2023 Full Year Results FOCUSED ON PORTFOLIO OPTIMISATION Capital allocation across ANZ divisions1 Run for performance Transform for long term differentiation & growth Institutional Australia Retail Australia Commercial New Zealand Retail & Commercial 1. Subset of total ANZ capital. Excludes capi
Slide 135: Investor Discussion Pack: ESG – Climate
2023 FULL YEAR RESULTS INVESTOR DISCUSSION PACK ENVIRONMENT, SOCIAL & GOVERNANCE - CLIMATE
Slide 136: 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 137: Overview
ANZ 2023 Full Year Results OVERVIEW Supporting our customers to transition Focusing where we can make the most impact ANZ has chosen some key focus areas as part of our • A new phase of customer engagement in 2024, triggered in part by Environmental Sustainability Strategy the Safeguard Mechanism re
Slide 138: ANZ Climate Approach – Progress Towards Net Zero
ANZ 2023 Full Year Results ANZ CLIMATE APPROACH - PROGRESS TOWARDS NET ZERO Set a target to encourage First Australian bank to NZBA Sectoral Pathway and support 100 of our Enhanced customer join the NZBA1 targets: Thermal coal, largest emitting business engagement through LEEP, Transport sub sectors
Slide 139: Enhanced Assessment Framework for Our Largest Emitting Customers
ANZ 2023 Full Year Results ENHANCED ASSESSMENT FRAMEWORK FOR OUR LARGEST EMITTING CUSTOMERS Three key elements of a robust low carbon transition plan (governance, targets, disclosures) Enhanced framework includes a sharper focus on whether our customers are implementing their plans, e.g., to achieve
Slide 140: Enhanced Customer Engagement to Support Emissions Reductions
ANZ 2023 Full Year Results ENHANCED CUSTOMER ENGAGEMENT TO SUPPORT EMISSIONS REDUCTIONS Increased focus on emission targets Climate Change Risk Assessment Scope1 Large Emitters Engagement Program (from FY24) • In FY24, a more challenging assessment framework applied to our 100 largest emitting busin
Slide 141: Backing the Transition Through Financing Sustainability
ANZ 2023 Full Year Results BACKING THE TRANSITION THROUGH FINANCING SUSTAINABILITY ANZ is supporting our customers through labelled and other financing products and services Sustainable Finance During 2023 we participated in • ANZ’s Sustainable Finance team is helping our customers by 111 sustainabl
Slide 142: Supporting Commercial Customers Shift to Low Carbon Business Models
ANZ 2023 Full Year Results SUPPORTING OUR COMMERCIAL CUSTOMERS SHIFT TO LOW CARBON BUSINESS MODELS AND HOMEOWNERS TO IMPROVE ENERGY EFFICIENCY • Continuing to work with the Clean Energy Finance Corporation (CEFC) Energy Efficient Asset Finance Program to support Australian businesses invest in emiss
Slide 143: Expanded Sectoral Pathways and Targets
ANZ 2023 Full Year Results EXPANDED SECTORAL PATHWAYS AND TARGETS1 Existing Pathways 2030 Interim Target Status Sectoral Pathways and Targets backing customer decarbonisation On track • As per NZBA, 2030 interim targets set for On track eight priority sectors Not on track • Aimed at ensuring by end
Slide 144: Backing Customer Decarbonisation – New Sectoral Pathways
ANZ 2023 Full Year Results BACKING CUSTOMER DECARBONISATION – NEW SECTORAL PATHWAYS AND TARGETS1 By 2025 ANZ includes majority of auto manufacturing customers in LEEP AUTOMOTIVE MANUFACTURING “Auto Manufacturing Company Corp.” Paris-aligned In 2023 Customer Highlight: Auto Manufacturing targets set
Slide 145: Backing Customer Decarbonisation – Aviation and Shipping
ANZ 2023 Full Year Results BACKING CUSTOMER DECARBONISATION – NEW SECTORAL PATHWAYS AND TARGETS1 By 2025 ANZ includes majority of Aviation and Shipping customers in LEEP AVIATION SHIPPING “Aviation Company Corp.” “Shipping Company Corp.” Paris-aligned In 2023 In 2023 targets set their • Disclosed Pa
Slide 146: Backing Customer Decarbonisation in Sectoral Pathways
ANZ 2023 Full Year Results BACKING CUSTOMER DECARBONISATION IN SECTORAL PATHWAYS1 Sectoral Pathways and LEEP informing our credit decisions, enabling us to accelerate progress in carbon-intensive sectors Oil & Gas (O&G) Power Generation Thermal Coal Oil & Gas Policy Renewable Energy Highlight Therma
Slide 147: 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 Ma Sep Ma Sep Ma Sep Ma Sep Ma Sep 0.7 1.5 1.2 0.2 0.5 15 16 17 18 r
Slide 148: Customer Engagement to Support Biodiversity Protection
ANZ 2023 Full Year Results CUSTOMER ENGAGEMENT TO SUPPORT BIODIVERSITY PROTECTION Supporting customers to transition to nature positive Large emitting business customers’ approach to outcomes biodiversity • ANZ seeks to support customers to transition to net zero and nature 100 positive outcomes 80
Slide 149: Investor Discussion Pack: ESG – Targets, Housing and Financial Wellbeing
2023 FULL YEAR RESULTS INVESTOR DISCUSSION PACK ENVIRONMENT, SOCIAL & GOVERNANCE - TARGETS, HOUSING AND FINANCIAL WELLBEING
Slide 150: Our FY23 ESG Performance Against Targets
ANZ 2023 Full Year Results OUR FY23 ESG PERFORMANCE AGAINST TARGETS Target Performance Relevant SDGs Have 30% or more of ANZ Plus Save customers set • 36% of ANZ Plus customers have created a goal a savings goal, by end 2023. • We have established 14 new MoneyMinded partnerships since October 2020.
Slide 151: Our FY23 ESG Performance Against Targets
ANZ 2023 Full Year Results OUR FY23 ESG PERFORMANCE AGAINST TARGETS Target Performance Relevant SDGs • We engaged an external provider to undertake an assessment comparing regulatory expectations across seven of the jurisdictions in which we operate: Australia, New Zealand, Singapore, Hong Kong, the
Slide 152: Our FY23 ESG Performance Against Targets
ANZ 2023 Full Year Results OUR FY23 ESG PERFORMANCE AGAINST TARGETS Target Performance Relevant SDGs Reduce the direct impact of our business activities on the environment by: • 6.1 – Combined Scope 1 and 2 emissions have decreased by 80% against a 2015 baseline 6.1 Reducing Scope 1 and 2 emissions
Slide 153: Our FY23 ESG Performance Against Targets
ANZ 2023 Full Year Results OUR FY23 ESG PERFORMANCE AGAINST TARGETS Target Performance Relevant SDGs Since Oct 2020 we have supported 9,482 households into healthier homes and drawn down NZ$379.09 million through: • Our Healthy Home Loan package Support more customers into healthier homes • Our Good
Slide 154: Delivered $5 Billion of Housing Supply in Five Years
ANZ 2023 Full Year Results DELIVERED $5 BILLION OF HOUSING SUPPLY IN FIVE YEARS >$5b Delivered ~$5.3 billion into the housing sector, with ~$610 million in 2023 ANZ’s housing target is to Supported the launch of a new project to market by specialist affordable fund and Facilitate at least $10 housin
Slide 155: Financial Wellbeing – Central to Our Strategy
ANZ 2023 Full Year Results FINANCIAL WELLBEING – CENTRAL TO OUR STRATEGY ANZ is committed to improving the financial wellbeing of our people, customers and communities by helping them make the most of their money throughout their lives CUSTOMERS • Strong uptake of ANZ Plus savings goal functionality
Slide 156: 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 157: Shareholder Centre & Investor Relations Contacts
ANZ 2023 Full Year Results SHAREHOLDER CENTRE & INVESTOR RELATIONS CONTACTS ANZ Shareholders Centre ANZ Shareholders Centre ANZ Debt Investors Centre Equity Investors Retail Investors Debt Investors Jill Campbell Cameron Davis Pavita Sivakumar Michelle Weerakoon David Goode Steve Aquilina Group Gene