Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Non-Deal Roadshow (November 2008)
78 slides from Anz's roadshow presentation, Nov 10, 2008
Slide 1: Investor Roadshow Materials
Investor Relations 100 Queen Street Melbourne Vic 3000 www.anz.com For personal use only For Release: 10 November 2008 Investor Roadshow Materials Please find following a copy of reference material to be used by ANZ Chief Executive officer Mike Smith in an investor roadshow commencing Monday 10 Nove
Slide 2: Investor Discussion Pack
For personal use only Investor Discussion Pack Australia and New Zealand Banking Group Limited November 2008 Mike Smith – Chief Executive Officer
Slide 3: ANZ Snapshot
ANZ Snapshot For personal use only • Proud banking heritage spanning 170 years • A top 10 listed company on the ASX (market cap ˜A$36b), with 376,813 shareholders • Largest listed company in NZ, largest Australian bank in Asia and a leading bank in the Pacific • One of only 14 AA rated banks in the
Slide 4: Leveraging opportunities throughout the region
Leveraging opportunities throughout the region For personal use only Asia Pacific: Institutional Client focus: • Asian regional corporates, Banks Our Base and Investors • Local corporates in Strategic • Strong domestic and Franchise markets franchise and client base in Australia and NZ • Australian
Slide 5: Focused approach to Super Regional Strategy
Focused approach to Super Regional Strategy For personal use only Strategic Imperative Top 4 foreign bank • Greater China, India Franchise Significant Major bank (top 4) • Vietnam, Malaysia, Indonesia Network Enhancement Network clients, product and liquidity hubs • Singapore, Tokyo, Hong Kong Next
Slide 6: The Double Benefit - GDP and banking wallet growth
The Double Benefit -GDP and banking wallet growth For personal use only Asia’s banking wallet growth The “Double Benefit”: dominated by Greater China and India 313 Singapore • Asia projected GDP growth 3 16 USD bn SE Asia1 significantly higher than 27 India 264 Australia / NZ 16 Hong Kong 3 29 Singa
Slide 7: Asia Pacific – Executing the growth strategy
Asia Pacific – Executing the growth strategy For personal use only Region • Regional hubs in HK and Singapore extended to house regional, product and support function leadership • Licence granted for local incorporation in Vietnam to form 100% owned bank • Core banking platform implemented in Laos,
Slide 8: Australian Personal business strong focus on customers
Australian Personal business strong focus on customers For personal use only A leader in customer satisfaction Continuing to grow main (Main Financial Institution 6 months rolling avg*) bank relationship share *** % Market Share Gap 85 % 80 20 2.9% 2.8% 2.5% 2.4% 75 16 70 12 65 8 60 4 55 0 Aug-05 Fe
Slide 9: Institutional - Business restructuring around strong customer franchise
Institutional - Business restructuring around strong customer franchise New Institutional organisational structure For personal use only Strong and improving cross sell… GMD Institutional Alex Thursby (Acting) No. 1 Cross Sell Bank status maintained Cross Sell Effectiveness1 (%) 61% Products 60% 59%
Slide 10: New Zealand - Strong Institutional and Rural results
New Zealand - Strong Institutional and Rural results, Retail most impacted by adverse business conditions For personal use only NZ Banking PBP 9% NPAT -5% NZ Businesses PBP 5% NPAT -12% % Growth NZDm 1% 28% 426 9% 389 1% 22% 302 (18%) 304 (16%) 16% 263 (13%) 216 177 12% 153 151 37% (7%) 113 59 28 AN
Slide 11: Our strategy and performance culture is attracting top talent
Our strategy and performance culture is attracting top talent across the region For personal use only • Hire and develop Attracting and retaining experienced leaders top talent to: • Empowerment and Leadership accountability • deliver out-performance • Embed performance • build a preferred employee
Slide 12: Actively managing for new reality: Balance sheet, capital, lower risk
We are actively managing for new reality: Balance sheet, capital, lower risk For personal use only Strengthened collective Balance Sheet provision balance (CP/CRWA#) 1.13% • Collective provisions set above 1% 0.94% of credit RWA’s 0.81% 0.79% 0.73% Capital – Tier One 8.1%* • Proactive in raising cap
Slide 13: Composition of Net Loans & Advances
Composition of Net Loans & Advances For personal use only AUS ($bn) NZ ($bn) Offshore ($bn) Group ($bn) 16% 16% 237 9% 75% 341 205 12.5 83 293 11.6 76 85.9 21 139.9 71.7 35.3 113.4 31.4 7.4 8.9 6.6 1.2 12 7.9 1.1 18.6 128.8 175.8 114.0 42.4 45.3 10.2 157.4 0.3 0.2 1.7 1.0 Sep 07 Sep 08 Sep 07 Sep 08
Slide 14: Customer deposits by business line
Customer deposits by business line For personal use only Personal Institutional Asia Pacific NZ Group ($bn) ($bn) ($bn) ($bn) ($bn) 13% 13% 13% 6% 205* 1.5 181 1.8 74 73 42% 41 38 85.6 65 65 6.0 5.8 74.4 16 11 6.9 74.2 72.7 65.4 64.6 4.1 32.6 34.6 117.6 105.0 8.8 7.0 Sep 07 Sep 08 Sep 07 Sep 08 Sep
Slide 15: 'One ANZ' – new structure provides competitive advantage
‘One ANZ’ – new structure provides competitive advantage in the changed landscape For personal use only Western economies slowing Customers seek ANZ to Pressure on funding versus growth in Asia have ‘one view’ of their costs & liquidity affairs Consolidation prevalent in A primary internal focus ban
Slide 16: 'One ANZ' – benefits of restructure
For personal use only ‘One ANZ’ – benefits of restructure Simplified structure, Bringing ANZ closer to An agile structure clearer accountability our customers Greater spans of responsibility Simplifying our business and Fewer reporting layers and decision-making authority creating ‘One ANZ’ will all
Slide 17: Capital and Liquidity
For personal use only CAPITAL AND LIQUIDITY 16
Slide 18: Strong capital position compares favourably with peers
Strong capital position compares favourably with domestic and international peers For personal use only Basel II Capital Position (Tier 1 ratio) 10.7 10.0 Includes $1.08bn CPS issue and $0.6bn Private Placement Volume, risk and 0.38 8.09 methodology changes 0.05 7.71 0.63 2008 Final div underwrite O
Slide 19: Capital position compares favourably with UK FSA and Canadian OSFI
ANZ capital position strengthened - compares favourably with UK FSA and Canadian OSFI regulation For personal use only Sep 07 Mar 08 Sep 08 Sep 08** ANZ ANZ FSA OSFI Basel II Basel II Basel II pro forma Basel II Basel II Core Tier 1* 5.2% 5.3% 5.9% 6.3% 8.0% 8.7% Tier 1 6.9% 6.8% 7.7% 8.1% 10.0% 10.
Slide 20: Tier and Core Tier ratios higher under FSA regulation
Tier 1 and Core Tier 1 ratio’s are higher under FSA regulation comparisons For personal use only ANZ Tier 1 on an FSA basis Capital differences arise principally due to FSA: ~10.0 • Not requiring a deduction for accrued dividend and net of the associated DRP 10 • Not requiring a Tier-1 deduction for
Slide 21: Tier and Core Tier ratios higher under OSFI regulation
Tier 1 and Core Tier 1 ratio’s higher under OSFI regulation comparisons For personal use only Capital differences arise principally due to OSFI: ANZ Tier 1 on an OSFI basis 12 • Not requiring a deduction for accrued dividend and ~10.7 net of the associated DRP 9.7 10 • Not requiring a Tier-1 deducti
Slide 22: Conservative funding strategy and strong liquidity position
Well placed to manage 2009 - conservative funding strategy and strong liquidity position For personal use only ($bn) Borrowed consistently over 2008 9 Sub Debt Stable and diversified funding base US$3.8bn Private Placements Group Funding profile* – September 2008 Extendible 6 Public Senior Note issu
Slide 23: Strategy leaves ANZ well placed in difficult markets
This strategy leaves ANZ well placed to manage difficult market conditions For personal use only • Funding strategy designed to ensure stability of core sources of funding such as Customer Deposits and Term Wholesale debt: reduces reliance on Short-Term Wholesale debt • Funding composition has remai
Slide 24: Strong Balance Sheet management
Strong Balance Sheet management For personal use only Significant increase in liquid assets ($bn) Prime liquid asset portfolio increased to >12 months of offshore wholesale funding nearly 3 times Sep 2007 levels maturities All liquid assets eligible for repo with a central bank and held in major tre
Slide 25: Strong 2008 funding year
Strong 2008 funding year leaves ANZ well placed to manage 2009 requirements For personal use only Completed $39 billion of term wholesale funding during FY08 (FY07 ~$24 billion) •Includes $9 billion of 1 year debt and $6 billion of Short-term wholesale funding extendible notes issued as a replacemen
Slide 26: Global term wholesale issuance costs have increased
Although global term wholesale issuance costs have increased, strong funding position maintained For personal use only ANZ 5 year CDS spreads 200 • Fundamental repricing of default risk has 180 caused credit spreads to widen globally 160 140 • Despite this, the relatively stable Australian Basis poi
Slide 27: Australia & NZ Economic & Mortgage Data
For personal use only AUSTRALIA & NZ ECONOMIC & MORTGAGE DATA 26
Slide 28: Summary of forecasts: Australia & NZ
Summary of forecasts: Australia & NZ For personal use only Australia New Zealand 2007 2008 2009 2010 2007 2008 2009 2010 GDP 4.5 1.7 2.1 1.7 2.9 1.7 0.1 1.9 Inflation 1.9 5.0 3.3 2.4 1.8 5.1 2.1 2.8 Unemployment 4.3 4.2 5.7 6.4 3.5 4.2 5.5 6.2 Current A/C (% -6.1 -3.9 -6.5 -5.7 -8.7 -8.6 -7.3 -6.9 G
Slide 29: Trade and economic future more closely tied to Asia
Australia and New Zealand’s trade and economic future more closely tied to Asia For personal use only Global economic growth Australian two-way trade weights 10 Annual % change Asia 70 Index Asia 8 60 50 6 40 US 4 Euro 30 2 Euro 20 0 10 US Japan -2 0 2001 2002 2003 2004 2005 2006 2007 2008 70 74 79
Slide 30: Australian growth will be below trend
Australian growth will be below trend for around 2 years although recession not expected For personal use only 5.0 % change, yoy Gross Domestic Product Seasonally adjusted 4.0 3.0 Estimate 2.0 1.0 0.0 00 01 02 03 04 05 06 07 08 09 10 29
Slide 31: Individual property markets in Australia have contracted
Individual property markets in Australia have contracted particularly in Sydney For personal use only 210 Relative Price Performance* Perth 190 170 Darwin 150 Adelaide Hobart 130 Canberra 110 Melbourne 90 Sydney Brisbane 70 50 02 03 04 05 06 07 * Chart uses price index levels . All cities have been
Slide 32: Housing finance commitments declined in 2008
Housing finance commitments declined in 2008 For personal use only 12 $m/mth 11 owner occupier 10 9 8 7 6 5 investor 4 3 2 1 0 01 02 03 04 05 06 07 08 31
Slide 33: Weaker construction approvals driving pent-up housing demand
Coupled with weaker construction approvals this is driving pent-up housing demand to record levels For personal use only Housing market balance: Australia 220 ‘000 200 180 Underlying Requirement 160 140 Completions 120 100 80 60 Shortage 40 20 0 -20 Surplus -40 -60 -80 94 95 96 97 98 99 00 01 02 03
Slide 34: Household sector risks versus UK and US
Simplistic metrics suggest Australian household sector faces similar risks to the UK and US For personal use only 200 HH debt to income House price to income ratio ratio 16 ratio UK UK 180 14 160 Australia 12 Australia 140 10 US 8 120 US 6 100 4 80 2 60 0 90 92 94 96 98 00 02 04 06 08 90 92 94 96 98
Slide 35: Market fundamentals have little in common
However, the market fundamentals have little in common For personal use only Nominal GDP growth Population growth 12 Ann % change 1.6 Ann % change Australia Australia 1.4 10 1.2 8 US 1.0 6 UK 0.8 4 0.6 US UK 0.4 2 0.2 0 0.0 99 00 01 02 03 04 05 06 07 08 99 00 01 02 03 04 05 06 07 -2 Rental vacancy r
Slide 36: Housing affordability expected to improve in 2009
Housing affordability is expected to improve in Australia in 2009 Housing affordability For personal use only 45 % of disposable income Based on ANZ expectations for interest rates, house prices and incomes* 40 35 30 25 20 86 88 90 92 94 96 98 00 02 04 06 08 10 Source: ABS,RBA, Economics@ANZ, ANZ es
Slide 37: Strong underwriting illustrated in LVR trends
Strong underwriting illustrated in LVR trends Mortgages Australia (Retail) For personal use only Mortgages^ 60+ Day Delinquencies by State (% of GLA) 0.80% 80% LVR at origination Sep-07 0.60% 60% LVR at origination Sep-08 Current LVR Sep-07 0.40% 40% Current LVR Sep-08 0.20% 20% 0.00% 0% Sep- Mar- S
Slide 38: Cash rate, inflation, GDP and unemployment expectations differ from past
Official cash rate, inflation, GDP and unemployment expectations very different to mid 80s and early 90s For personal use only Real GDP CPI 10 Ann % change 14 Ann % change 8 12 6 10 8 4 6 2 4 0 2 -2 0 -4 -2 80 84 88 92 96 00 04 08 80 84 88 92 96 00 04 08 Unemployment Official cash rate 12 % of the l
Slide 39: New Zealand business has weathered a challenging environment
The New Zealand business has weathered a challenging environment this year For personal use only The economy is clearly in a downturn …leading to a 2 tier economy favouring RBNZ Monetary Policy Statements1 some businesses more than others Annual % RBNZ MPS System (banks & NBFI’s) credit aggregates2
Slide 40: Individual property markets began to contract in 2007
Individual property markets began to contract in 2007 For personal use only 1600 Relative Price Performance* Wellington 1400 NZ-total 1200 Auckland 1000 800 Main urban areas 600 400 00 01 02 03 04 05 06 07 08 * Chart uses price index levels . All cities have been set to a common base of 100 in 2003
Slide 41: New Zealand property market trends
New Zealand property market trends New Zealand housing market For personal use only 25 Annual % change '000 (s.a.) 12 House sales (adv 20 3 mths, RHS) 10 15 8 10 5 6 0 4 House prices (3-mth -5 avg, LHS) -10 2 91 93 95 97 99 01 03 05 07 09 Source: ANZ, Real Estate Institute of NZ 40
Slide 42: Interest rate reductions expected to benefit NZ consumers
Interest rate reductions are expected to benefit New Zealand consumers by early 2009 For personal use only Bps NZDbn NZ Mortgages with less than 1 year 200 until reset (RHS) 70 Forecast 60 150 50 100 40 50 30 0 20 Difference between 2-year fixed -50 mortgage rate from 2 years prior (LHS) 10 -100 0 J
Slide 43: New Zealand Mortgage portfolio profile
New Zealand Mortgage portfolio profile For personal use only New Zealand Mortgages^ 60+ Day Delinquencies (% of GLA) New Zealand Mortgages 0.80% 60% 0.60% LVR at origination Sep-07 40% 0.40% LVR at origination Sep-08 0.20% 20% 0.00% Sep- Mar- Sep- Mar- Sep- Mar- Sep- 0% 05 06 06 07 07 08 08 0-60% 61
Slide 44: Credit Quality
For personal use only CREDIT QUALITY 43
Slide 45: Breakdown of 2008 collective provision charge
Breakdown of 2008 collective provision charge For personal use only Lending Business Unit Risk Cycle and Mix / Growth Total (A$m) Impact concentrations Other* Impact Group 197 200 525 (104) 818 Institutional 82 152 449 (53) 630 (excl. BB) Business 9 4 32 (3) 42 Banking Personal (excl Consumer 39 16
Slide 46: Increase in watch & control lists
Increase in watch & control lists - credit vigilance in a weakening environment For personal use only Watch and Control list* Diverse industry focus on watch list (indexed data) (Watch list by industry - Number of groups %) Watch List Sep-07 Limits Control List Oct-07 Property Limits services Nov-07
Slide 47: Increase in Individual provisions in Institutional and NZ
Increase in Individual provisions predominantly in Institutional and NZ Consumer portfolios For personal use only Commercial IP growth dominated increase Consumer IP growth driven by NZ retail in Total individual provision charge businesses and Australia growth 1,130 $m $m 500 Mortgage IP makes up C
Slide 48: Increase in Non Performing Loans and Days Past Due Loans
Increase in Non Performing Loans and 90 Days Past Due Loans weighted to secured portfolios For personal use only 90 Days Past Due well up, Commercial Non Performing majority on the secured book $m Loans by Geography 1,500 % of GLA Security profile 0.40% 1,200 Not well secured 900 0.35% 600 0.30% 300
Slide 49: Collections teams increased and scorecards tightened
Collections teams increased and scorecards further tightened to manage arrears levels For personal use only Consumer Cards 30+ day arrears Bankruptcy numbers by state^ 120 (Indexed as of FY05) 4,000 NSW/ACT VIC/TAS 2005 100 QLD SA/NT 2006 3,000 WA 80 2007 2008 60 2,000 40 1,000 20 0 0 1 3 5 7 9 11 1
Slide 50: Increased stress in Commercial Portfolios
Increased stress in Commercial Portfolios, broader group credit quality remains stable Institutional Banking & Financial Institutions For personal use only Group – GLAs Risk Grade Migration Summary by Customer Groups (FY08) BASEL I BASEL II $308bn $339bn $358bn upgrade 20 AAA to BBB 11.2% 12 7 4 3 1
Slide 51: Commercial Property exposure
Commercial Property exposure For personal use only Geographic split of Commercial property Commercial property 35bn (% of lending book) 12.0% portfolio 30bn 10.0% 25bn 8.0% 20bn 2.8% 15bn 6.0% 10bn 4.0% 21.6% 5bn 2.0% 0bn 0.0% Sep-07 Mar-08 Sep-08 Lending Assets % of Portfolio % in CCR 7-8 %CCR 9-10
Slide 52: Commercial Property exposure by sector
Commercial Property exposure by sector For personal use only Australian property New Zealand property portfolio by Sector - Aug 08 portfolio by Sector - Aug 08 Residential Retail subdividion retail Residential and Land residential Industrial subdivision other Industrial Tourism Tourism and Leisure a
Slide 53: New Zealand - Provisioning charges increasing
New Zealand - Provisioning charges increasing with change in economic cycle Contribution to Collective Provision For personal use only Provisions have grown from low levels (New Zealand Banking) Charge (NZD m) NZD m FY05 FY06 FY07 FY08 112 260 $18 $74 $302 $158 220 32 Risk 180 Volume 140 Scenario 38
Slide 54: New Zealand - arrears and impaired assets increased
New Zealand - arrears and impaired assets increased from historical lows with household cashflow pressures For personal use only 90 days past due largely secured NZD m Non-performing loans % 350 0.35% $309m 300 0.30% 250 0.25% 200 0.20% 150 0.15% Personal 100 0.10% Housing 50 0.05% SME 0 0.00% Secur
Slide 55: Credit Intermediation Trades
For personal use only CREDIT INTERMEDIATION TRADES 54
Slide 56: Credit Intermediation Trades
Credit Intermediation Trades For personal use only Sold Protection Bought Protection • Credit intermediation trades entered • All CDO and CLO structures are highly into between 2004 & 2007 subordinated, NO first loss to ANZ on • No mortgages as reference assets any structure • Significant subordinat
Slide 57: Credit Intermediation Trade Structures
Credit Intermediation Trade Structures For personal use only Type of Portion of Mark to No. of No of Average Attach/Detach structure Notional Market structures names Remaini Average ng Life (Years) Synthetic $8.9bn $1,105m 20 ˜ 650 6 Attach Avg 19% CDO Detach Avg 43% CLO $1.3bn $105m 10 ˜ 700 11 Att
Slide 58: Negative mark to market on sold protection
Negative mark to market on sold protection not fully offset by value of purchased protection MtM impacted by volatility in CDS For personal use only spreads* and US currency Index AUD/USD 1 Counterparty (Bought protection) 200 0.9 150 Notional Mark Credit risk Principal to on 0.8 Rating No. 100 Amou
Slide 59: Stress test on Credit Intermediation trades
Stress test on Credit Intermediation trades analysing likelihood of cash losses For personal use only Data used in stress test Conclusion • Moody’s historical corporate default rates going • Only in Great Depression scenario did any tranches back to 1920* breach attachment points • Analysed cumulati
Slide 60: Results Summary FY 2008
For personal use only RESULTS SUMMARY FY 2008 59
Slide 61: Results overview
Results overview For personal use only Growth 2007 to 2008 NPAT $3,319m -21% Cash Earnings* $3,029m -23% Underlying Revenue*^ $12,343m +12% Expenses* $5,444m +10% Cash EPS* 155.3c -26% Dividend 136c unchanged *Adjusts headline numbers for significant items & fair value hedge gains/losses ^Adjusted f
Slide 62: Business performance overview
Business performance overview Cash Earnings For personal use only 2007 2008 Australia (Personal Division) 1,330 • Strong result from lending and customer deposits • Continued investment in personnel and premises 1,485 +12% New Zealand (Businesses) 815 NZD • Solid balance sheet growth, market share g
Slide 63: $3 billion cash profit down on prior year
$3 billion cash profit down on prior year due to significantly higher credit impairments For personal use only Cash EPS down 26% Reconciliation to July Trading update Cash profit (excluding the reclassification of credit $m risk on derivatives to income) (22.8%) 4,180 (256) Income 3,924 (523) • Lowe
Slide 64: Momentum in underlying business offset by credit related costs
Momentum in underlying business offset by credit related costs For personal use only Save for credit intermediation …but substantial credit related trades and a structured trade, costs lead to a 26% decrease in PBP growth exceeded 2007… Cash EPS 13.7% Credit risk on derivatives ^ 0.9% 13.7% # 2.1% 1
Slide 65: Strong underlying PBP and revenue growth
Strong underlying PBP and revenue growth Costs paced with revenue Full year revenue expense jaws For personal use only Income growth (% growth) Full Year 2H08 (HoH) 46 (% growth) (% growth) 11.5 24.8 16.4 10.5 9.9 4.4 -8.4 9.9 Asia NZ Personal Institutional^ Pacific Expense growth (% growth) 5.3 46
Slide 66: Volume growth slowing while margins have stabilised
Volume growth slowing in the second half while margins have stabilised For personal use only Margin trend improvement from Strong lending growth managing impacts of credit crisis $bn 16.3% bps 5.4% 10.3% 350 214.6 (6.5) 13 301 332 75 (5.7) 165 (3.2) 2.0 (1.3) 1.8 201.7 97 Credit market impacts 199.2
Slide 67: A strong result from 'Other Operating Income'
A strong result from ‘Other Operating Income’ before impacts of credit risk on derivatives For personal use only Good contribution across all Core markets business delivered categories ($m) strong results ($m) 19.3%* (Reported growth -2%) 28.9%* (Reported growth -56%) 4,493 1,062 58 87.1% 3,765 824
Slide 68: Expenses reflect growth initiatives and remediation
Expenses reflect growth initiatives across the region and institutional remediation action For personal use only Full year cost growth targeted to Second half cost growth slowing growth opportunities and in Australia and New Zealand and remediation work directed to Asia growth $586m^ $151m^ • Contin
Slide 69: Organisational transformation costs to derive $200m benefits
Organisational transformation costs to derive $200m ongoing annualised benefits from 2010 2008 For personal use only Future Full $219m costs annualised benefit Process re-engineering • Process efficiency Approach and methodology implementation ~100m to improve operational efficiency and reduce dupli
Slide 70: Higher Individual Provisions from Institutional and NZ
Higher Individual Provisions from Institutional large names and NZ portfolio For personal use only Significant increase in commercial Higher individual provisions Provisions off a low base, consumer across regions ($m) upward trend from NZ ($m) 1,130 657 157 159 438 338 814 473 FY06 FY07 FY08 359 Au
Slide 71: Collective Provision increase reflects credit environment
Collective Provision increase reflects changes to the credit environment For personal use only Collective Provision (CP) Economic cycle adjustment $m 818 • For deterioration in global credit markets and slowing NZ economy Economic Cycle Adj. 225 (includes Inst. $180m, NZ $36m) Concentration Concentr
Slide 72: Higher arrears and impaired assets from single name exposures
Higher arrears and impaired assets from single name exposures and some increase in consumer stress For personal use only Consumer arrears being closely Impaired loans impacted by managed large single name Institutional Australia customers (Impaired Assets ($m)) 2.0% Credit Cards >60+ Days 1.5% Impai
Slide 73: Composition of 'Credit Risk on Derivatives'
Composition of “Credit Risk on Derivatives” charged to Non interest income For personal use only Credit risk on derivatives 721 A$m • Back-to-back sold and bought credit protection trades • Mark-to-market on trades does not fully offset as one financial guarantor has defaulted and the valuation of t
Slide 74: Underlying performance across divisions
Underlying performance across divisions For personal use only 2008 PBP ($m) 2008 Cash NPAT ($m) growth growth Total Group Flat 6,051 (23%) 3,029 Personal +12% 2,556 +12% 1,485 Institutional (14%) 1,838 (65%) 526 NZ Businesses* +5% 1,338 NZD (12%) 715 NZD Asia-Pacific^ +46% 569 +52% 413 2008 decrease
Slide 75: Appendices
For personal use only APPENDICES 74
Slide 76: Hedging the Kiwi dollar
Hedging the Kiwi dollar For personal use only FY08 Hedges AUD/NZD hedges established • FY08 NZD earnings (~96% hedged) have where revenues are believed to be been effectively translated at an average at adverse risk rate of 1.15 1.40 AUD/NZD • During the 2008 financial year, NZD 1.486 billion of eco
Slide 77: Securitisation and property market
Securitisation and property market For personal use only Asset Backed Securities • $318m in Alt-A RMBS assets in the liquidity portfolio, largely eligible for repo at the US Federal Reserve • Limited holdings in trading portfolios ¾Total Australian RMBS of $125m – $121m AAA rated, A$3m AA rated ¾Tot
Slide 78: For personal use only
For personal use only The material in this presentation is general background information about the Bank’s activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or p
Australia and New Zealand Banking Group — Non-Deal Roadshow (November 2008) on 6ix