Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Debt Investor Presentation (November 2009)
21 slides from Anz's debt investor presentation, Nov 10, 2009
Slide 1: CPS2 Offer
For personal use only 09 CPS2 OFFER AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED NOVEMBER 2009 Convertible Preference Share (“CPS2”) Offer
Slide 2: Disclaimer
Disclaimer Australia and New Zealand Banking Group Limited (ABN 11 005 357 522) ("ANZ") is the proposed issuer of the ANZ convertible preference shares ("CPS2"). Neither ANZ nor any of the Joint Lead Managers (“JLMs”) named in this presentation are liable for the content of this For personal use onl
Slide 3: Offer summary
Offer summary For personal use only ● Offer by Australia and New Zealand Banking Group Limited (“ANZ”) of Offer Convertible Preference Shares (“CPS2”) Offer Size ● $750 million with the ability to raise more or less ● The Offer is being made as part of ANZ’s ongoing capital management strategy, with
Slide 4: CPS2 key features: Floating rate dividends
CPS2 key features: Floating rate dividends For personal use only Issue Price ● $100 per CPS2 Listing ● Expected to be listed on ASX under ASX code ANZPA Issue Credit Rating ● Standard & Poor’s has indicated that it will rate CPS2 A+ upon issue ● Preferred, non-cumulative dividends based on a floatin
Slide 5: CPS2 key features: Mandatory conversion or resale
CPS2 key features: Mandatory conversion or resale For personal use only ● On 15 December 2016 CPS2 will Mandatory ● Mandatorily convert into a variable number of ordinary shares at a 1.00% discount Conversion or to 20 day VWAP, subject to the Mandatory Conversion Conditions being satisfied; or Resal
Slide 6: Comparison to similar ASX listed Tier hybrids
Comparison to similar ASX listed Tier 1 hybrids For personal use only CPS2 2008 CPS CBA PERLS V Westpac SPS II Legal Form ● Preference share ● Preference share ● Stapled security ● Stapled security Issuer ● ANZ ● ANZ ● CBA ● Westpac ASX Code ● ANZPA1 ● ANZPB ● CBAPA ● WBCPB S&P Credit Rating ● A+2 ●
Slide 7: Key dates for the Offer
Key dates for the Offer For personal use only Date Lodgement of initial prospectus with ASIC 10 November 2009 Bookbuild to determine the margin 17 November 2009 Announcement of margin and lodgement of replacement prospectus with ASIC 18 November 2009 Opening date 18 November 2009 Closing date for AN
Slide 8: Full Year Results
For personal use only 09 FULL YEAR RESULTS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED
Slide 9: Overview of the 2009 result
Overview of the 2009 result For personal use only Full Year 2009 Growth ($m) 2009 vs 2008 Underlying Profit1 3,772 10% Revenue1 14,367 17% Expenses1 (6,068) 12% Provisions1 (3,056) 46% Statutory Net Profit After Tax 2,943 (11%) EPS1 168.3 (4%) Full Year Franked Dividend 102 cents (25%) (interim 46cp
Slide 10: Geographic performance - Highlights
Geographic performance - Highlights Underlying Profit by geography2 ($m) For personal use only Australia ● Strong contributions from both Retail and Institutional Asia Pacific, Europe & America ● Partnerships and the Institutional business the major contributors New Zealand ● Challenging domestic ec
Slide 11: Global Markets and Asia Pacific key contributors to increase in total income
Global Markets and Asia Pacific key contributors to increase in total income Total Income ($m) Markets Income (including NII) For personal use only ($m) 14,367 17% FY09 growth: 77% 12,295 7,327 7,040 46% of 6,315 FY09 5,980 growth Excluding markets FY09 up 10% Growth in Asia offsetting lower New Zea
Slide 12: Asia Partnerships a key contributor to growth in other income
Asia Partnerships a key contributor to growth in other income Underlying other income ($m) Composition of “Other” For personal use only 4,557 $m 4,440 $m 2,199 2,241 2,339 2,218 Refer Markets comments 71% Flat increase growth 2009 vs 2009 vs 2008 2008 11
Slide 13: Margins moving back to pre crisis levels
Margins moving back to pre crisis levels Net Interest Margin (NIM) Full Year 2009 (bp) For personal use only NIM excluding “Accounting noise” Asset & funding mix Accounting noise 16bp Funding costs Equity Mix Deposits Markets Assets Other 2008 2008 Re-pricing 2009 adjusted impacts 222.3 216.4 5.9 5.
Slide 14: Strong deposit growth and subdued lending position
Strong deposit growth and subdued lending position a result of environmental drivers, strategic and portfolio initiatives Customer deposit and lending growth Institutional Lending growth returning For personal use only (2009 vs 2008) (%) to more normalised levels (NLA incl Acceptances $b) Average To
Slide 15: Provision charge composition changing with the credit cycle
Provision charge composition changing with the credit cycle - moved towards middle market, significant increase in New Zealand Total Provision Charge ($m) Individual Provision Charge ($m) For personal use only 77% 119% 88% 5% 13% 1,621 1,531 1,435 1,364 1,283 894 726 378 331 267 187 172 14
Slide 16: Balance sheet well positioned for the current economic environment
Balance sheet well positioned for the current economic environment Collective Provision Balance / Credit Collective Provision Charge returning towards For personal use only RWAs (%) a more normalised level ($m) 818 No net release from Concentration / Economic Cycle provisions across year 242 69 83 T
Slide 17: Rate of growth in impaired loans reducing
Rate of growth in impaired loans reducing, trending towards middle market portfolios. Consumer arrears stabilising Gross Non Performing Loans1 to Institutional Non Performing Loans For personal use only Net Lending Assets (%) concentration by top 5 industries (4%) 41% 61% 106% 23% 19% increase in Gr
Slide 18: Strong Balance Sheet
Strong Balance Sheet • Tier 1 Capital ratio of 9.3% post RBS, ING & redemption of USD350m hybrid. $750m hybrid adds ~30bps to 9.6%. Strong capital position For personal use only • Pro forma Core Tier-1 is 7.9% (10.3% under FSA regs.) 12.1% • Total Provision coverage of 1.97% of Credit RWAs 10.6% 9.6
Slide 19: Good progress against our Super Regional Bank strategy
Good progress being made against our “Super Regional Bank” strategy For personal use only TRANSFORM OUT PERFORM RESTORE • Quality on par with • Institutional back global leaders in our to system Create • Restore “jaws” – 9 • Best of breed customer markets a leading Super increase revenue Regional ba
Slide 20: Contact Details
For personal use only 09 CONTACT DETAILS AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED
Slide 21: Syndicate contact details
Syndicate contact details Australia and New Zealand Banking Group Limited For personal use only Rick Moscati, Group Treasurer Ph. 03 9273 1368 Steven Craig, Head of Group Capital Ph. 03 9273 2974 John Needham, Capital Products Ph. 03 9273 2949 David Goode, Head of Debt Investor Relations Ph. 03 9273
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