Australia and New Zealand Banking Group Ltd. — Audit Report / Information 2016

Feb 16, 2016

2016

A U S T R A L I A A N D N E W Z E A L A N D B A N K I N G G R O U P L I M I T E D 1 7 F e b r u a r y 2 0 1 6

A N Z B A S E L I I I P I L L A R 3 A P S 3 3 0 I N F O R M AT I O N S U P P O R T PA C K – D E C E M B E R 2 0 1 5

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Credit Quality

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Total Provision charge Gross Impaired Assets
$m $m
1
Australia New Zealand IIB Other
5,000
Individual Provision Gross Impaired
1,197 1,205 $319m, Collective 4,264 Assets down 10%
Provision $43m.
on FY15 year end,
4,000
CP driven partly from the
Esanda Dealer
989 predominantly by
Finance sale
portfolio growth
2,889
3,000
2,719
2,458
2,000
362
348
1,000
0
FY13 FY14 FY15 2H15 1Q16
FY13 FY14 FY15 1Q16
Quarterly
Average
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1. IIB: International & Institutional Banking

2

Risk Weighted Asset Movement

Total RWA movement

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$b
401.9 2.0 397.3
378.9 386.9 384.0 5.7 0.0 1.0
361.5
Credit RWA movement
$b 339.7 337.2 349.8 0.6 0.2 344.1
330.3 2.3 0.5 3.6
308.9
Op
Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Credit RWA RWA IRRBB RWA Market RWA Dec-15
Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 FX impact Lending Growth Data review Esanda sale² Risk Dec-15
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• Total RWAs down 1.1% on Sep 15, CRWAs down 1.6%

• CRWA growth flat adjusting for FX impacts and sale of Esanda Dealer Finance

• Credit risk weight intensity down 86bps with improvement across most asset classes. Growth in lower RW intensive portfolios (including 3.3% quarterly EAD growth in mortgages) complemented by reductions in capital intensive exposures within Institutional

• The increase in IRRBB RWA was due to realisation of prior embedded gains

Group CRWA/EAD[1]

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$b CRWA EAD CRWA/EAD
971 991 982 1,024 1,034
891
34.7% 34.0% 34.3% 34.3% 34.1% 33.3%
309 330 340 337 350 344
Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15
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1. EAD: Exposure at Default as reported in ANZ APS330 (Pillar 3) December 2015 report gross of credit risk mitigation such as guarantees, credit derivatives, netting and financial collateral rather than on a net basis. Note that this does not impact RWA calculations which are done on a netted basis

2. Sale of Esanda Dealer Finance

3

ANZ Portfolio Composition

EAD as a % of Group total[1 ]

Resources EAD by Sector[1 ]

Category	% of Group EAD	% of Group EAD
				EAD (Dec 15): $18.9b 2.1% of EAD
	Dec-14	Dec-15		44% 25% 11% 13% 7% Oil and Gas Metal Ore Mining Coal Mining Services to Mining Other Mining 81% 66% 84% 19% 34% 16% Institutional Resources Oil & Gas Investment Grade Sub-Investment Grade Credit Quality (based on EAD)1 Percentage of Group EAD 2.1% 0.9%
Total Group EAD	$852b1	$902b1
Consumer Lending	38.0%	39.1%
Finance, Investment & Insurance	19.5%	18.6%
Property Services	6.8%	6.8%
Manufacturing	6.3%	5.9%
Agriculture, Forestry, Fishing	3.9%	3.8%
Government & Official Institutions	4.2%	4.8%
Wholesale trade	3.9%	3.6%
Retail Trade	2.6%	2.6%
Transport & Storage	2.2%	2.3%
Business Services	1.8%	1.8%
Resources (Mining)	2.2%	2.1%
Electricity, Gas & Water Supply	1.6%	1.4%
Construction	1.6%	1.5%
Other	5.3%	5.7%

1. EAD excludes amounts for ‘Securitisation’ and ‘Other Assets’ Basel asset classes. Data is provided is as at Dec 15 on a Post CRM basis, net of credit risk mitigation such as guarantees, credit derivatives, netting and financial collateral. Note that APS330 disclosure is reported on a Pre CRM basis.

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4

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.

For further information visit

www.anz.com

or contact ANZ Investor Relations

Jill Craig Group General Manager Investor Relations

ph: (613) 8654 7749 fax: (613) 8654 9977 e-mail: jill.craig@anz.com

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