2017 3rd Quarter Trading Update & APS330 Pillar 3 Investor discussion pack AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 15 August 2017
GROUP FINANCIAL HIGHLIGHTS - PROFITABILITY Group Net Interest Income / Credit 1 % 5.5 5.0 4.5 4.0 3.5 3.0 2.5 1H16 2H16 1H17 3Q17 Adjusting for APRA regulatory to housing Cs Net interest income / Cs Institutional Markets Income $m 800 600 400 200 0-200 Sales 481 1H16 Trading 419 2H16 Balance Sheet 682 1H17 Val n adj. 513 3Q17 Profit Before Provisions (Cash basis) Net Profit After Tax (Cash basis) 2.43 2.66 2.78 2.79 1.39 1.55 1.71 1.79 1H16 2H16 1H17 3Q17 1H16 2H16 1H17 3Q17 1. Excluding Markets income 2
GROUP FINANCIAL HIGHLIGHTS BALANCE SHEET Total Credit s & Exposure at Default (EAD) 917 899 913 Total Risk Weighted Assets 3Q17 7 0 1 0 397 405 356 342 348 Dec-16 Credit EAD Credit Op IRRBB Mkt Credit Risk Weighted Assets 3Q17 1 Credit Risk Weighted Assets 3Q17 1 2.2 7.7 349.5 348.5 7.7 349.5 1.5 0.5-0.4 341.8-2.7-0.1 341.8-2.5-0.5 348.5 Adj. for FX Risk Growth Other Adj. for Model Resi. Mortgage Corp. Sovereign & Banks Other 1. Increase in Risk Weighted Assets was impacted by to Australia Residential Mortgage risk weighted assets (new ANZ mortgage capital s approved by APRA as noted in ANZ news release of 1 June 2017) 3
GROUP FINANCIAL HIGHLIGHTS BALANCE SHEET Non Housing credit s & EAD 1 555 538 267 253 250 543 Institutional -8.1% -7.7% -5.4% 198 182 168 159-1.9% 156 Dec-16 Sep-15 Mar-16 Sep-16 Credit EAD Total Housing Credit & EAD 2 Aus. Household Lending Growth 3 ANZ growth x System (System = 1) Owner Occupied 362 361 370 Investor 1.5 1.3x system 0.8x system 1.0 89 89 98 0.5 Dec-16 0.0 Sep 15 Mar 16 Sep 16 Mar 17 June 17 Quarter Credit EAD ANZ System 1. Non Housing based on APS330 Pillar 3, all Credit categories excluding Residential Mortgage category 2. Housing based on APS330 Pillar 3 Residential Mortgage category. Increase in Risk Weighted Assets was impacted by to Australia Residential Mortgage risk weighted assets (new ANZ mortgage capital s approved by APRA as noted in ANZ news release of 1 June 2017) 3. Source: ANZ analysis of APRA monthly banking statistics 4
CREDIT QUALITY & CAPITAL Individual Provision Charge $m 2,000 1,939 Total Provision Charge - Financial year to date $m 1,500 1,000 500 1,167 1,144 1,110 1,095 283 325 437 462 243 308 0 FY13 FY14 4th quarter IP charge FY15 FY16 FY17 YTD (June) First 3 quarters (YTD June) IP charge -42 Dec-16-25 -65 Individual Provision Charge Collective Provision Charge Gross Impaired Assets 4.26 2.89 2.72 3.17 2.95 Capital (CET1) % 0.5 10.1 9.6-0.6-0.2 9.8 ~0.7 ~10.5 Sep-13 Sep-14 Sep-15 Sep-16 Sep-16 Net organic capital generation Dividend Other (incl. Mortgage ) Announced divestments yet to settle Proforma 5
FURTHER INFORMATION Our Shareholder information shareholder.anz.com 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 to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate This presentation may contain forward-looking statements including statements regarding our intent, belief or current expectations with respect to ANZ s business and operations, market conditions, results of operations and financial condition, capital adequacy, specific provisions and risk management practices. When used in this presentation, the words estimate, project, intend, anticipate, believe, expect, should and similar expressions, as they relate to ANZ and its management, are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such statements constitute forward-looking statements for the purposes of the United States Private Securities Litigation Reform Act of 1995. ANZ does not undertake any obligation to publicly release the result of any revisions to these forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. Equity Investors Jill Campbell Group General Manager Investor Relations +61 3 8654 7749 +61 412 047 448 jill.campbell@anz.com Cameron Davis Executive Manager Investor Relations +61 3 8654 7716 +61 421 613 819 cameron.davis@anz.com Katherine Hird Senior Manager Investor Relations +61 3 8655 3261 +61 435 965 899 katherine.hird@anz.com Retail Investors Michelle Weerakoon Manager Shareholder Services & Events +61 3 8654 7682 +61 411 143 090 michelle.weerakoon@anz.com Debt Investors Scott Gifford Head of Debt Investor Relations +61 3 8655 5683 +61 434 076 876 scott.gifford@anz.com Mary Karavias Associate Director, Debt Investor Relations +61 3 8655 4318 +61 421 865 953 mary.karavias@anz.com 6