Australia and New Zealand Banking Group Ltd. — Audit Report / Information 2025

Aug 14, 2025

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15 August 2025

Market Announcements Office ASX Limited Level 4 20 Bridge Street SYDNEY NSW 2000

APS 330 Pillar 3 Disclosure at 30 June 2025

Australia and New Zealand Banking Group Limited (ANZ) today released its APS 330 Pillar 3 Disclosure as at 30 June 2025.

It has been approved for distribution by ANZ’s Continuous Disclosure Committee.

Yours faithfully

Simon Pordage Company Secretary Australia and New Zealand Banking Group Limited

Australia and New Zealand Banking Group Limited 9/833 Collins Street Docklands Victoria 3008 Australia ABN 11 005 357 522

2025 Basel III Pillar 3 Disclosure

As at 30 June 2025 APS 330: Public Disclosure

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ANZ Basel III Pillar 3 disclosure June 2025

Important notice

This document has been prepared by ANZ Bank HoldCo as the head of ANZ’s Level 2 Banking Group (ANZ) to meet its disclosure obligations under the Australian Prudential Regulation Authority (APRA) ADI Prudential Standard (APS) 330: Public Disclosure.

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ANZ Basel III Pillar 3 disclosure June 2025

I, KEVIN CORBALLY, Group Chief Risk Officer, am the Accountable Person responsible for APRA prudential compliance with APS 330 Public Disclosure and confirm that the disclosures required by APRA’s Prudential Standard APS 330 Public Disclosure for the period ending 30 June 2025, have been prepared in accordance with ANZ’s Public Disclosure of Prudential Information Policy in all material respects.

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KEVIN CORBALLY Group Chief Risk Officer

15 August 2025

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ANZ Basel III Pillar 3 disclosure June 2025

Table of Contents 0F [1]

Introduction ................................................................................................................................................................................................... 5 DIS20: Overview of risk management, key prudential metrics and RWA ..................................................................................................... 7 KM1: Key metrics (at consolidated group level)................................................................................................................................... 7 Key metrics - Suncorp Bank ................................................................................................................................................................ 8 OV1: Overview of RWA ....................................................................................................................................................................... 9 Overview of EAD and RWA ............................................................................................................................................................... 11 DIS21: Comparison of modelled and standardised RWA ........................................................................................................................... 12 CMS1: Comparison of modelled and standardised RWA at risk level ............................................................................................... 12 DIS40: Credit risk ........................................................................................................................................................................................ 14 CR8: RWA flow statements of credit risk exposures under IRB ........................................................................................................ 14 DIS80: Leverage ratio ................................................................................................................................................................................. 15 LR2: Leverage ratio common disclosure template............................................................................................................................. 15 DIS85: Liquidity ........................................................................................................................................................................................... 16 LIQ1: Liquidity Coverage Ratio (LCR) ............................................................................................................................................... 18 Appendix 1: Modification Details ................................................................................................................................................................. 20 Glossary ...................................................................................................................................................................................................... 21

1 Each table reference adopted in this document aligns to those required by APS 330, as defined by the Basel Committee on Banking Supervision (BCBS) and adjusted by APRA for the Australian context.

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ANZ Basel III Pillar 3 disclosure June 2025

Introduction

Purpose of this document

This document has been prepared in accordance with the Australian Prudential Regulation Authority (APRA) ADI Prudential Standard (APS) 330: Public Disclosure.

APS 330 Public Disclosure Prudential Standard requires locally-incorporated authorised deposit-taking institutions (ADIs) to meet minimum requirements for the public disclosure of key information on their capital and risk exposures and, where applicable, leverage ratio, liquidity coverage ratio, net stable funding ratio and indicators for the identification of potential global systemically important banks, so as to contribute to the transparency of financial markets and to enhance market discipline.

This document is prepared for ANZ BH Pty Ltd (ANZ Bank HoldCo) in accordance with ANZ Board policy and the APS 330 reporting standard requirements. It presents information on Capital Adequacy and Risk Weighted Assets calculations for credit risk, securitisation, traded market risk, interest rate risk in the banking book and operational risk.

The APS 330 disclosure has been prepared on the Level 2 basis being ANZ Bank HoldCo as the head of ANZ’s Level 2 Banking Group following a restructure on 3 January 2023 (formerly Australia and New Zealand Banking Group Limited for prior years).

Any reference to ANZ / the Group refers to ANZ’s Level 2 Banking Group.

Basel in ANZ

ANZ operates under capital adequacy requirements applying to Australian incorporated registered banks, which are set out in APRA’s Banking Prudential Standard documents. The capital adequacy requirements were updated from 1 January 2023 and included changes to APS 110 Capital Adequacy (APS 110), APS 112 Capital Adequacy: Standardised Approach to Credit Risk (APS 112) and APS 113 Capital Adequacy: Internal Ratings-based Approach to Credit Risk (APS 113) with key features of the changes including:

• improving the flexibility of the capital framework, through larger capital buffers that can be used by banks to support lending during periods of stress;

• changes to risk weighted assets (RWA) through more risk-sensitive risk weights increasing capital requirements for higher risk lending and decreasing it for lower risks;

• changes to loss given default rates (LGD) including approved use of an internal ratings-based (IRB) approved LGD model for mortgage portfolios;

• an increase in the IRB scaling factor (from 1.06x to 1.1x);

• requirement that IRB ADIs calculate and disclose RWA under the standardised approach and the introduction of a capital floor at 72.5% of standardised RWA; and

• use of prescribed New Zealand authority’s equivalent prudential rules for the purpose of calculating the Level 2 regulatory capital requirement.

• In addition, operational RWA is calculated under APS 115 Capital Adequacy: Standardised Measurement Approach to Operational Risk (APS 115) which replaced the previous advanced methodology from December 2022.

Suncorp Bank Acquisition

On 31 July 2024, the Group acquired 100% of the shares in SBGH Limited, the immediate holding company of Suncorp Bank. The transaction was undertaken to accelerate the growth of the Group’s retail and commercial businesses while also improving the geographic balance of its business in Australia. The reported figures at 30 June 2025 include Suncorp Bank for the period since ownership where applicable.

Suncorp Bank is the trading name of Norfina Limited ABN 66 010 831 722 (formerly Suncorp-Metway Limited). Norfina Limited is an authorised deposit-taking institution (ADI) and a wholly owned subsidiary of Australia and New Zealand Banking Group Limited (ANZBGL). The ultimate parent entity is ANZ Group Holdings Limited (ANZGHL). ANZGHL and its subsidiaries are collectively referred to as the ANZGHL Group.

Suncorp Bank is a standardised ADI with Credit RWA calculated based on APS 112. Suncorp Bank is exposed to a similar range of inter-related business risks as the pre-existing ANZ portfolio and has its own Risk Management Framework, Risk Management Strategy, Risk Appetite Statement and supporting suite of policies and procedures to manage these risks. Work is in progress on the integration of Suncorp Bank into ANZ risk management frameworks and policies.

Verification of disclosures

These Pillar 3 disclosures have been verified in accordance with Board-approved policy, including ensuring consistency with information contained in returns provided to APRA.

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ANZ Basel III Pillar 3 disclosure June 2025

Comparison to ANZBGL’s Financial Reporting

These disclosures have been produced in accordance with regulatory capital adequacy concepts and rules, rather than with accounting policies adopted in ANZBGL’s financial reports. As such, there are different areas of focus and measures in some common areas of these disclosures. These differences are most pronounced in the credit risk disclosures, for instance:

• The principal method for measuring the amount at risk is Exposure at Default (EAD), which is the estimated exposure owed on a credit obligation at the time of default. Under the Internal Ratings Based (IRB) approach in APS 113, banks are accredited to provide their own estimates of EAD or use supervisory estimates for all exposures (drawn, commitments or contingents) reflecting the current balance as well as the likelihood of additional drawings prior to default. Note APS 113 no longer permits the use of own estimates (internally modelled credit conversion factors (CCFs)) for committed non-retail exposures and non-revolving retail, therefore ANZ applies supervisory CCFs as detailed in APS 112.

• Loss Given Default (LGD) is an estimate of the loss expected in the event of default. LGD is essentially calculated as the amount at risk (EAD) less expected net recoveries from realisation of collateral as well as any post default repayments of principal and interest.

• Most credit risk disclosures split ANZ’s portfolio into regulatory asset classes, which span different areas of ANZ’s internal divisional and business unit organisational structure.

Unless otherwise stated, all amounts are rounded to AUD millions.

Key Changes in the Pillar 3 report

In December 2022, APRA finalised the ADI public disclosure requirements (APS 330), effective 1 January 2025. Some of the key aims of the new requirements are to improve transparency and comparability and to align with updated international and domestic standards.

In accordance with APS 330, an ADI must make the prudential disclosures as set out in the Standard issued by the Basel Committee on Banking Supervision (BCBS Standard) titled “Disclosure requirements”, subject to the modifications specified in Attachment A of APS 330. The BCBS Standard, including disclosure templates and tables that an ADI must complete and disclose, is available on the Bank of International Settlements website.

An ADI may make minor modifications to the content of its disclosures under the BCBS Standard where there are inconsistencies between the BCBS Standard and the applicable requirements in any Prudential Standards 1F[1] . These modifications are noted in the respective disclosure tables throughout this document and outlined in detail in Appendix 1.

Certain comparative period disclosures for the updated templates will be included over future reporting periods.

1 APS 330, Para. 19-20

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ANZ Basel III Pillar 3 disclosure June 2025

DIS20: Overview of risk management, key prudential metrics and RWA

KM1: Key metrics (at consolidated group level)

The table below sets out the key regulatory metrics and ratios covering capital (including buffer requirements and ratios), RWA, Leverage ratio, Liquidity coverage ratio (LCR) and Net Stable Funding Ratio (NSFR).

This table has minor modifications from the original BCBS standard. Additional detail on these modifications has been provided in Appendix 1.

Available capital (amounts)	Jun 25 Mar 25 Dec 24 Sep 24 Jun 24 $M $M $M $M $M
1 Common Equity Tier 1 (CET1) 2 Tier 1 3 Total capital Risk-weighted assets (amounts)	56,942 55,229 54,333 54,469 57,576 64,322 62,672 62,699 62,676 65,846 96,834 95,503 92,447 91,865 93,141
4 Total risk-weighted assets (RWA) 4a Total risk-weighted assets (pre-floor) Risk-based capital ratios as a percentage of RWA	476,830 468,999 472,434 446,582 433,213 465,879 456,940 461,059 441,710 412,882
5 CET1 ratio (%) 5b CET1 ratio (%) (pre-floor ratio) 6 Tier 1 ratio (%) 6b Tier 1 ratio (%) (pre-floor ratio) 7 Total capital ratio (%) 7b Total capital ratio (%) (pre-floor ratio) Additional CET1 buffer requirements as a percentage of RWA	11.9% 11.8% 11.5% 12.2% 13.3% 12.2% 12.1% 11.8% 12.3% 13.9% 13.5% 13.4% 13.3% 14.0% 15.2% 13.8% 13.7% 13.6% 14.2% 15.9% 20.3% 20.4% 19.6% 20.6% 21.5% 20.8% 20.9% 20.1% 20.8% 22.6%
8 Capital conservation buffer requirement (2.5% from 2019) (%) 9 Countercyclical buffer requirement (%) 10 Bank G-SIB and/or D-SIB additional requirements (%) 11 Total of bank CET1 specific buffer requirements (%) 12 CET1 available after meeting the bank’s minimum capital requirements (%) Basel III Leverage ratio	3.75% 3.75% 3.75% 3.75% 3.75% 0.7191% 0.7219% 0.7276% 0.7247% 0.6971% 1.00% 1.00% 1.00% 1.00% 1.00% 5.47% 5.47% 5.48% 5.47% 5.45% 7.4% 7.3% 7.0% 7.7% 8.8%
13 Total Basel III leverage ratio exposure measure 14 Basel III leverage ratio (%) (including the impact of any applicable temporary exemption of central bank reserves) Liquidity Coverage Ratio (LCR)	1,447,763 1,427,834 1,432,615 1,344,137 1,250,307 4.4% 4.4% 4.4% 4.7% 5.3%
15 Total high-quality liquid assets (HQLA) 16 Total net cash outflow 17 LCR ratio (%) Net Stable Funding Ratio (NSFR)	324,230 316,323 295,673 275,264 256,996 242,689 237,584 225,783 207,942 195,514 133.63% 133.17% 130.95% 132.38% 131.40%
18 Total available stable funding 19 Total required stable funding 20 NSFR ratio	744,791 737,456 721,838 704,909 648,532 642,418 630,563 634,312 607,169 558,211 115.94% 116.95% 113.80% 116.10% 116.18%

Common Equity Tier 1

Level 2 CET1 ratio of 11.9%, an increase of 16bps since March 2025. Key drivers were:

• An increase in capital due to profit generated during the 3 months to 30 June 2025.

• Offsetting underlying RWA growth was mainly due to lending growth in the Institutional and Australia Retail divisions plus an increase in Market Risk RWA.

• Capital floor adjustment contributed a +3bps increase to the CET1 ratio in 3Q25, driven by +2bps from CRWA movement and +1bps from Non-Credit RWA movements.

Leverage ratio

APRA leverage ratio was stable over the quarter at 4.4%.

Total Risk Weighted Assets

For key movements in RWA see table OV1: Overview of RWA.

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ANZ Basel III Pillar 3 disclosure June 2025

Liquidity

The Group’s average LCR for the 3 months to 30 June 2025 has increased 0.4% from 133.2% as at 31 March 2025 to 133.6% with total liquid assets exceeding net cash outflows by an average of $81.5 billion.

Through the period the LCR has remained within the range 128% to 140%. The liquid asset portfolio was made up of on average 42.6% ($136.1 billion) cash and central bank reserves and 52.3% ($166.9 billion) HQLA1 securities, with the remaining mainly consisting of HQLA2 securities.

The Group's NSFR has decreased 1.0% over the quarter from 117.0% as at 31 March 2025 to 115.9% as at 30 June 2025. This decline was primarily driven by an increase in loans, partly offset by deposit growth as well as an increase in the proportion of wholesale funding in the less than 6-month maturity bucket.

The main sources of Available Stable Funding (ASF) at June 2025 were deposits from Retail and SME customers, at 49%, with other wholesale funding at 28% and capital at 15% of the total ASF.

The majority of ANZ's Required Stable Funding (RSF) at June 2025 was driven by mortgages at 51% and other lending to non-financial institution customers at 28% of the total RSF.

Key metrics - Suncorp Bank

The table below sets out the key regulatory metrics and ratios covering capital and RWA for Suncorp Bank.

Following the acquisition of Suncorp Bank on 31 July 2024, the reported figures include Suncorp Bank for the period since ownership where applicable. Suncorp Bank will no longer be producing a separate Pillar 3 report starting from March 2025. The table below sets out the key information on regulatory metrics and ratios covering capital and RWAs for Suncorp Bank.

Suncorp Bank is a standardised ADI with Credit RWA calculated based on APS 112 Standardised Approach to Credit Risk.

Available capital (amounts)	Jun 25 Mar 25 Dec 24 Sep 24 $M $M $M $M
1 Common Equity Tier 1 (CET1) 2 Tier 1 3 Total capital Risk-weighted assets (amounts)	3,666 3,559 3,440 3,345 4,226 4,119 4,000 3,905 5,063 4,955 4,830 4,751
4 Total risk-weighted assets (RWA) Risk-based capital ratios as a percentage of RWA	34,060 33,356 33,516 33,422
5 CET1 ratio (%) 6 Tier 1 ratio (%) 7 Total capital ratio (%)	10.8% 10.7% 10.3% 10.0% 12.4% 12.3% 11.9% 11.7% 14.9% 14.9% 14.4% 14.2%

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ANZ Basel III Pillar 3 disclosure June 2025

OV1: Overview of RWA

The table below shows RWA and minimum capital requirements by risk type and approach. For the purpose of this table, the minimum capital requirement is defined to be 8% of RWA.

This table has minor modifications from the original BCBS standard. Additional detail on these modifications has been provided in Appendix 1.

	RWA	Minimum capital requirements
	Jun 25 Mar 25 $M $M	Jun 25
		$M
1 Credit risk (excluding counterparty credit risk) 2 of which: standardised approach (SA) 3 of which: foundation internal ratings-based (FIRB) approach 4 of which: supervisory slotting approach 5 of which: advanced internal ratings-based (AIRB) approach1 6 Counterparty credit risk (CCR) 7 of which: standardised approach for counterparty credit risk 8 of which: IMM 9 of which: other CCR 10 Credit valuation adjustment (CVA) 16 Securitisation exposures in banking book 17 of which: securitisation IRB approach (SEC-IRBA) 18 of which: securitisation external ratings-based approach (SEC-ERBA), including internal assessment approach (IAA) 19 of which: securitisation standardised approach (SEC-SA) 20 Market risk 21 of which: standardised approach (SA) 22 of which: internal model approach (IMA) 24 Operational risk2 25a IRRBB regulatory RWA 26 Output floor applied (%) 28 Floor adjustment	361,775 357,140	28,942
	41,363 42,612	3,309
	73,363 69,351	5,869
	14,827 15,360	1,186
	232,222 229,817	18,578
	14,345 13,809	1,148
	13,645 13,097	1,092
	- -	-
	700 712	56
	4,991 4,736	399
	2,535 2,396	203
	- -	-
	870 780
		70
	1,665 1,616	133
	7,719 6,854	617
	1,193 1,288	95
	6,526 5,566	522
	53,773 50,648	4,302
	20,741 21,357	1,659
	72.5% 72.5%
	10,951 12,059	876
29 Total	476,830 468,999	38,146

________

• 1 Includes a $3.1 billion RWA overlay relating to the Australian Residential Mortgages PD model introduced from 30 June 2024 reporting period.

• 2 Reporting period 30 June 2025 includes $12.5 billion ($1 billion capital) operational risk RWA overlay, applied to both Level 1 and Level 2. Corresponding overlay for 31 March 2025 was $9.4 billion RWA ($750 million capital).

The minimum capital requirement is based on an 8% capitalisation rate, however ANZ’s current CET1 ratio is 11.9% as at 30 June 2025.

Credit Risk Weighted Assets

Credit RWA for 30 June 2025 totalled $383.6 billion (which includes Credit Risk, Counterparty Credit Risk, CVA and Securitisation), a $5.6 billion increase over the quarter. The main drivers of this increase included:

• Volume growth (+$4.6 billion) which includes an increase in the Institutional division (+$2.4 billion) from lending growth in Corporate Finance and an increase in Australia Retail (+$1.4 billion) driven by growth in Home Loans.

• Data and methodology (+$1.0 billion) from cumulative adjustments arising from refinement in processes, data and methodology treatments

• Portfolio risk and foreign exchange impacts were both neutral.

Market Risk, Operational Risk and IRRBB RWA

Traded Market risk RWA increased by $0.9 billion over the quarter, primarily driven by higher 10-day Standard VaR and Stressed VaR components.

IRRBB RWA decreased by $0.6 billion over the quarter primarily due to an improvement in Embedded Gains.

Operational risk RWA increased by $3.1 billion due to Operational risk RWA overlay increase from $750 million capital to $1 billion capital, applied to both Level 1 and Level 2, from 30 April 2025.

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ANZ Basel III Pillar 3 disclosure June 2025

Floor adjustment RWA

The RWA floor adjustment is the additional RWA required after comparing total actual RWA to the floor of 72.5% of RWA calculated under the full standardised approach. For 30 June 2025, the RWA floor adjustment was $11.0 billion, a decrease of $1.1 billion over the quarter. The decrease in the RWA floor adjustment included:

• A net reduction of $0.6 billion from credit risk, primarily driven by Institutional portfolio mix.

• A reduction arising from the additional Operational risk overlay, which increased Operational risk RWA by $3.1 billion but contributed a smaller $2.7 billion RWA increase to the Output Floor.

• A partially offsetting increase arising from IRRBB, where a decrease in IRRBB RWA of $0.6 billion had no impact on the Output Floor.

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ANZ Basel III Pillar 3 disclosure June 2025

Overview of EAD and RWA

The table below shows a summary of EAD and RWA by asset class.

	Jun 25
	EAD Post-CCF and Post-CRM RWA
	Credit riskCounterparty credit risk Total Credit riskCounterparty credit risk Total $m $m $m $m $m $m
1 Subject to AIRB approach 2 of which Corporate (including SME) 3 of which Retail SME 4 of which Residential mortgage1 5 of which Qualifying revolving retail 6 of which Other retail 7 of which RBNZ regulated banking subsidiary 8 Subject to FIRB approach 9 of which Corporate 10 of which Sovereign 11 of which Financial institution 12Subject to supervisory slotting (including RBNZ) 13 Subject to standardised approach 14 of which Corporate (including SME) 15 of which Residential mortgage 16 of which Sovereign 17 of which Other exposures 18 of which RBNZ regulated bankingsubsidiary	704,540 2,722 707,262 232,222 1,210 233,432 140,491 1,719 142,210 65,978 764 66,742 16,781 - 16,781 9,527 - 9,527 371,200 - 371,200 95,516 - 95,516 12,576 - 12,576 3,101 - 3,101 1,483 - 1,483 1,675 - 1,675 162,009 1,003 163,012 56,425 446 56,871 446,003 40,257 486,260 73,363 11,449 84,812 97,480 6,637 104,117 38,458 2,743 41,201 254,360 4,032 258,392 10,055 287 10,342 94,163 29,588 123,751 24,850 8,419 33,269 17,803 420 18,223 14,827 320 15,147 130,297 14,835 145,132 41,363 1,366 42,729 16,223 243 16,466 12,728 216 12,944 64,343 - 64,343 22,385 - 22,385 11,080 239 11,319 - 239 239 13,032 11,328 24,360 4,222 465 4,687 25,619 3,025 28,644 2,028 446 2,474
19 Total credit and counterparty credit risk	1,298,643 58,234 1,356,877 361,775 14,345 376,120
20 Credit valuation adjustment 21 Securitisation exposures in banking book	4,991 15,963 2,535
22Total subject to calculation of RWA for credit risk	1,372,840 383,646
23 Market risk 24 Operational risk 25 Interest rate risk in the banking book 26 Floor adjustment	7,719 53,773 20,741 10,951
27 Total RWA	476,830

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1 Includes a $3.1 billion RWA overlay relating to the Australian Residential Mortgages PD model introduced from 30 June 2024 reporting period.

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ANZ Basel III Pillar 3 disclosure June 2025

DIS21: Comparison of modelled and standardised RWA

CMS1: Comparison of modelled and standardised RWA at risk level

The table below outlines the comparison of modelled and standardised RWA at Risk level.

This table has minor modifications from the original BCBS standard. Additional detail on these modifications has been provided in Appendix 1.

	Jun 25
	RWA
	RWA for modelled approaches that banks have supervisory approval to use RWA for portfolios where standardised approaches are used Total Actual RWA RWA calculated using full standardised approach $M $M $M $M
1 Credit risk (excluding counterparty credit risk) 2 Counterparty credit risk 3 Credit valuation adjustment 4 Securitisation exposures in the banking book 5 Market risk 6 Operational risk 7a IRRBB 7 Residual RWA1	320,412 41,363 361,775 561,941
	12,979 1,366 14,345 26,737
	4,991 4,991 4,991
	- 2,535 2,535 2,535
	6,526 1,193 7,719 7,719
	53,773 53,773 53,773
	20,741 20,741
	- 10,951 10,951 -
8 Total	360,658 116,172 476,830 657,696

__________ 1 Reflects the standardised floor adjustment.

	Mar 25
	RWA
	RWA for modelled approaches that banks have supervisory approval to use RWA for portfolios where standardised approaches are used Total Actual RWA RWA calculated using full standardised approach $M $M $M $M
1 Credit risk (excluding counterparty credit risk) 2 Counterparty credit risk 3 Credit valuation adjustment 4 Securitisation exposures in the banking book 5 Market risk 6 Operational risk 7a IRRBB 7 Residual RWA	314,528 42,612 357,140 554,974
	12,604 1,205 13,809 27,287 4,736 4,736 4,736 - 2,396 2,396 2,396 5,566 1,288 6,854 6,854 50,648 50,648 50,648
	21,357 21,357 - 12,059 12,059 -
8 Total	354,055 114,944 468,999 646,895

In accordance with current prudential regulations, APRA (and RBNZ in the New Zealand context) has approved ANZ’s use of the internal ratingsbased approach for calculating the required capital for the majority of credit risk and counterparty credit risk exposures, with the standardised approach used for only a relatively small proportion of credit exposures, noting the acquired Suncorp Bank portfolio continues to measure required capital under the standardised approach.

Methodological differences primarily arise due to the measurement of exposure at default (EAD) and the risk weights applied. In both cases, the treatment of credit risk mitigation, such as collateral, can have a significant effect. In line with the BCBS objectives, the internal model approach aims to balance the maintaining of prudent levels of capital while encouraging, where appropriate, the use of advanced risk management techniques.

Risk weights

Under the internal ratings-based approach, internal estimates of the probability of default (PD) and the loss given default (LGD), and for wholesale exposures the maturity, are used as inputs to the risk-weight formula for calculating RWA. Additionally, a 1.1 scaling factor is applied to internal ratings-based exposures. Under the standardised approach, risk weights are less granular and are driven by ratings provided by external credit assessment institutions (ECAIs) or the amount of collateral which an exposure is secured which is used in the loan to value ratio (LVR).

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ANZ Basel III Pillar 3 disclosure June 2025

The material divergences between the Standardised and Internal Ratings-Based approaches are in the Corporate and Financial Institutions asset classes. Much of this comes about due to the limited availability of external credit ratings across the portfolios, including for high-quality Institutional customers. Under the Standardised rules for unrated exposures, the risk-weight outcome is relatively conservative with only minor difference in treatment between customer credit profiles, resulting in a material divergence to the Internal Ratings-Based outcome for the same portfolios.

The Retail Residential Mortgage sub-asset class also exhibits conservatism in the standardised approach driven by the prescribed risk weights primarily using LVR.

EAD measurement

Prescribed credit conversion factors (CCF’s) applied to off-balance sheet amounts are mostly consistent across internal ratings-based and standardised approaches. Some differences are observed in non-revolving retail exposures (requiring 100% CCF in internal ratings-based) and revolving retail exposures (allowing an internal estimate under internal ratings-based).

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ANZ Basel III Pillar 3 disclosure June 2025

DIS40: Credit risk

CR8: RWA flow statements of credit risk exposures under IRB

The table below presents the changes in IRB RWA amounts over the reporting period for the key drivers of credit risk[1] .

	Jun 25 Mar 25 Dec 24
	RWA Amount RWA Amount RWA Amount
	$M $M $M
1 RWA as at end of previous reporting period	314,528 313,949 299,585
2 Asset size	5,083 409 12,816
3 Asset quality	(28) 613 (1,119)
4 Model updates	- - 747
5 Methodology and policy	939 (340) (1,556)
6 Acquisitions and disposals	- - -
7 Foreign exchange movements	(110) (103) 3,476
8 Other	- - -
9 RWA as at end of reporting period	320,412 314,528 313,949

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1 The attribution of Credit RWA movements requires assumptions and judgement; different assumptions could lead to different attributions. This table presents the contribution of changes in Credit Risk RWA amounts under the IRB approach only and hence may not directly reconcile to Group level Credit RWA attributions.

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ANZ Basel III Pillar 3 disclosure June 2025

DIS80: Leverage ratio

LR2: Leverage ratio common disclosure template

The table below provides a detailed breakdown of the components of the leverage ratio, as well as information on the actual leverage ratio, minimum requirements and buffers.

requirements and buffers.
	Jun 25 Mar 25 Dec 24 $M $M $M
On-balance sheet exposures
1 On-balance sheet exposures (excl. derivatives and securities financing transactions (SFTs), but incl. collateral) 2 Gross-up for derivatives collateral provided where deducted from balance sheet assets pursuant to the operative accounting framework 3 (Deductions of receivable assets for cash variation margin provided in derivatives transactions) 4 (Adjustment for securities received under securities financing transactions that are recognised as an asset) 5 (Specific and general provisions associated with on-balance sheet exposures that are deducted from Tier 1 capital) 6 (Asset amounts deducted in determining Tier 1 capital and regulatory adjustments)	1,186,042 1,167,801 1,167,840 7,305 7,333 6,481 (8,605) (6,468) (7,784) - - - - - - (14,821) (14,501) (13,915)
7 Total on-balance sheet exposures(excluding derivatives and SFTs)	1,169,921 1,154,165 1,152,622
Derivative exposures
8 Replacement cost associated with_all_derivatives transactions (where applicable net of eligible cash variation margin, with bilateral netting and/or the specific treatment for client cleared derivatives) 9 Add-on amounts for potential future exposure associated with_all_derivatives transactions 10 (Exempted central counterparty (CCP) leg of client-cleared trade exposures) 11 Adjusted effective notional amount of written credit derivatives 12 (Adjusted effective notional offsets and add-on deductions for written credit derivatives)	16,088 19,069 27,715 41,062 41,181 41,088 - - - 10,131 9,322 6,570 (9,849) (8,909) (5,770)
13 Total derivative exposures (sum of rows 8 to 12)	57,432 60,663 69,603
Securities financing transaction exposures
14 Gross SFT assets (with no recognition of netting), after adjustment for sale accounting transactions 15 (Netted amounts of cash payables and cash receivables of gross SFT assets) 16 Counterparty credit risk exposure for SFT assets 17 Agent transaction exposures	82,607 75,828 72,335 (2,386) (2,595) (2,161) 1,758 1,379 1,820 - - -
18 Total securities financing transaction exposures (sum of rows 14 to 17)	81,979 74,612 71,994
Other off-balance sheet exposures
19 Off-balance sheet exposure at gross notional amount 20 (Adjustments for conversion to credit equivalent amounts) 21 (Specific and general provisions associated with off-balance sheet exposures deducted in determining Tier 1 capital) 22 Off-balance sheet items (sum of rows 19 to 21)	301,633 302,468 297,722 (162,346) (163,222) (159,326) (856) (852) - 138,431 138,394 138,396
Capital and total exposures
23 Tier 1 capital	64,322 62,672 62,699
24 Total exposures (sum of rows 7, 13, 18 and 22)	1,447,763 1,427,834 1,432,615
Leverage ratio
25 Leverage ratio (including the impact of any applicable temporary exemption of central bank reserves) 25a Leverage ratio (excluding the impact of any applicable temporary exemption of central bank reserves) 26 National minimum leverage ratio requirement 27 Applicable leverage buffers	4.4% 4.4% 4.4% 4.4% 4.4% 4.4% 3.5% 3.5% 3.5% 0.9% 0.9% 0.9%
Disclosure of mean values
28 Mean value of gross SFT assets, after adjustment for sale accounting transactions and netted of amounts of associated cash payables and cash receivables 29 Quarter-end value of gross SFT assets, after adjustment for sale accounting transactions and netted of amounts of associated cash payables and cash receivables 30 Total exposures (including the impact of any applicable temporary exemption of central bank reserves) incorporating mean values from row 28 of gross SFT assets (after adjustment for sale accounting transactions and netted of amounts of associated cash payables and cash receivables) 30a Total exposures (excluding the impact of any applicable temporary exemption of central bank reserves) incorporating mean values from row 28 of gross SFT assets (after adjustment for sale accounting transactions and netted of amounts of associated cash payables and cash receivables) 31 Basel III leverage ratio (including the impact of any applicable temporary exemption of central bank reserves) incorporating mean values from row 28 of gross SFT assets (after adjustment for sale accounting transactions and netted of amounts of associated cash payables and cash receivables) 31a Basel III leverage ratio (excluding the impact of any applicable temporary exemption of central bank reserves) incorporating mean values from row 28 of gross SFT assets (after adjustment for sale accounting transactions and netted of amounts of associated cash payables and cash receivables)	80,221 73,233 70,174 83,075 80,075 74,963 1,447,763 1,427,834 1,432,615 1,447,763 1,427,834 1,432,615 4.4% 4.4% 4.4% 4.4% 4.4% 4.4%

ANZ’s leverage ratio was stable over the quarter at 4.4%.

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ANZ Basel III Pillar 3 disclosure June 2025

DIS85: Liquidity

Liquidity risk overview, management and control responsibilities

Liquidity risk is the risk that the Group is either:

• unable to meet its payment obligations (including repaying depositors or maturing wholesale debt) when they fall due; or

• does not have the appropriate amount, tenor and composition of funding and liquidity to fund increases in its assets.

Management of liquidity and funding risks are overseen by Group Asset and Liability Committee. The Group’s liquidity and funding risks are governed by a set of principles approved by the Board Risk Committee and include:

• maintaining the ability to meet all payment obligations in the immediate term;

• ensuring that the Group has the ability to meet ‘survival horizons’ under a range of ANZ specific, and general market, liquidity stress scenarios, at a country and Group-wide level, to meet cash flow obligations over the short to medium term;

• maintaining strength in the Group’s balance sheet structure to ensure long term resilience in the liquidity and funding risk profile;

• ensuring the liquidity management framework is compatible with local regulatory requirements;

• preparing daily liquidity reports and scenario analysis to quantify the Group’s positions;

• targeting a diversified funding base to avoid undue concentrations by investor type, maturity, market source and currency;

• holding a portfolio of high quality liquid assets to protect against adverse funding conditions and to support day-to-day operations; and

• establishing detailed contingency plans to cover different liquidity crisis events.

The Group operates under a non-operating holding company structure whereby:

• ANZBGL’s liquidity risk management framework remains unchanged and continues to operate its own liquidity and funding program, governance frameworks and reporting regime reflecting its authorised deposit-taking institution (ADI) operations;

• ANZGHL (parent entity) has no material liquidity risk given the structure and nature of the balance sheet; and

• ANZ Non-Bank Group is not expected to have separate funding arrangements and will rely on ANZGHL for funding.

Key areas of measurement for liquidity risk

Scenario modelling of funding sources

The Group’s liquidity risk appetite is defined by a range of regulatory and internal liquidity metrics mandated by the ANZBGL Board. The metrics cover a range of scenarios of varying duration and level of severity.

The objective of this framework is to:

• Provide protection against shorter term extreme market dislocation and stress.

• Maintain structural strength in the balance sheet by ensuring that an appropriate amount of longer-term assets are funded with longer-term funding.

• Ensure that no undue timing concentrations exist in the Group’s funding profile.

Key components of this framework include the Liquidity Coverage Ratio (LCR), which is a severe short term liquidity stress scenario, Net Stable Funding Ratio (NSFR) a longer-term structural liquidity measure (both of which are mandated by banking regulators including APRA) and internallydeveloped liquidity scenarios for stress testing purposes.

Liquid assets

The Group holds a portfolio of high quality (unencumbered) liquid assets to protect its liquidity position in a severely stressed environment and to meet regulatory requirements. High quality liquid assets comprise three categories consistent with Basel III LCR requirements:

• Highest-quality liquid assets (HQLA1) - cash and highest credit quality government, central bank or public sector securities eligible for repurchase with central banks to provide same-day liquidity.

• High-quality liquid assets (HQLA2) - high credit quality government, central bank or public sector securities, high quality corporate debt securities and high quality covered bonds eligible for repurchase with central banks to provide same-day liquidity.

• Alternative liquid assets (ALA) - eligible securities that the RBNZ will accept in its domestic market operations and asset qualifying as collateral for the CLF. Group monitors and manages the size and composition of its liquid assets portfolio on an ongoing basis in line with regulatory requirements and the risk appetite set by the ANZBGL Board.

The Group monitors and manages the size and composition of its liquid assets portfolio on an ongoing basis in line with regulatory requirements and the risk appetite set by the ANZBGL Board.

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ANZ Basel III Pillar 3 disclosure June 2025

Liquidity crisis contingency planning

The Group maintains APRA-endorsed liquidity crisis contingency plans for analysing and responding to a liquidity threatening event at a country and Group-wide level. Key liquidity contingency crisis planning requirements and guidelines include:

Ongoing business management	Early signs/ mild stress	Severe stress
establish crisis/severity levels	monitoring and review	activate contingency funding plans
liquidity limits	management actions not requiring business	management actions for altering asset and
early warning indicators	rationalisation	liability behaviour
Assigned responsibility for internal and external communications and the appropriate timing to		communicate.

Since the precise nature of any stress event cannot be known in advance, we design the plans to be flexible to the nature and severity of the stress event with multiple variables able to be accommodated in any plan.

Group funding

The Group monitors the composition and stability of its funding so that it remains within the Group’s funding risk appetite. This approach ensures that an appropriate proportion of the Group’s assets are funded by stable funding sources, including customer deposits; longer-dated wholesale funding (with a remaining term exceeding one year); and equity.

Funding plans prepared	Considerations in preparing funding plans
3 year strategic plan prepared annually	customer balance sheet growth
annual funding plan as part of the ANZBGL Group’s planning process	changes in wholesale funding including: targeted funding volumes;
forecasting in light of actual results as a calibration to the annual plan	markets; investors; tenors; and currencies for senior, secured,
	subordinated, hybrid transactions and market conditions
	liquidity stress testing

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ANZ Basel III Pillar 3 disclosure June 2025

LIQ1: Liquidity Coverage Ratio (LCR)

The Group’s average 2F[1] LCR for the 3 months to 30 June 2025 has increased 0.4% from 133.2% as at 31 March 2025 to 133.6% with total liquid assets exceeding net cash outflows by an average of $81.5 billion.

Through the period the LCR has remained within the range 128% to 140%. The liquid asset portfolio was made up of on average 42.6% ($136.1 billion) cash and central bank reserves and 52.3% ($166.9 billion) HQLA1 securities, with the remaining mainly consisting of HQLA2 securities.

As per APRA requirements, liquid assets beyond the regulatory minimum are not included in the consolidated ANZBGL Group position where they are deemed non-transferable between geographies, in particular this applies to liquid assets held in New Zealand.

The main contributors to net cash outflows were modelled outflows associated with the bank’s corporate and retail deposit portfolios, offset by inflows from maturing loans. While cash outflows associated with derivatives are material, these are effectively offset by derivative cash inflows. Modelled outflows are also included for market valuation changes of derivatives based on the past 24 months largest 30-day movements in collateral balances.

The Group has a well-diversified deposit and funding base avoiding undue concentrations by investor type, maturity, market source and currency.

The Group monitors and manages its liquidity risk on a daily basis including LCR by geography and currency. The Group’s liquidity risk framework ensures ongoing monitoring of foreign currency LCR (including derivative flows) and sets limits at the Group level to ensure mismatches are managed effectively.

The Group’s liquidity and funding management includes monitoring of liquidity across the Group, specifically for:

• Individual countries, including any local regulatory requirements

• Consolidated ANZ Group Level 1 and 2 LCR

• AUD only LCR for Australia as well as Level 2

Other contingent funding obligations include outflows for revocable credit and liquidity facilities, trade finance related obligations, buybacks of domestic Australian debt securities and other contractual outflows such as interest payments.

1 There were 65 daily LCR data points used in calculating the average for the current quarter and 64 in the previous quarter.

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ANZ Basel III Pillar 3 disclosure June 2025

LIQ1: Liquidity Coverage Ratio (LCR) (Continued)

LIQ1: Liquidity Coverage Ratio (LCR) (Continued)
	Jun 25 Mar 25
	Total Unweighted value Total weighted value Total Unweighted value Total weighted value $M $M $M $M
High-quality liquid assets 1a High-quality liquid assets (HQLA) 1b Alternative liquid assets (ALA) 1c Reserve Bank of New Zealand (RBNZ) securities Cash outflows 2 Retail deposits and deposits from small business customers 3 of which: Stable deposits 4 of which: Less stable deposits 5 Unsecured wholesale funding 6 of which: Operational deposits (all counterparties) and deposits in networks of cooperative banks 7 of which: Non-operational deposits (all counterparties) 8 of which: Unsecured debt 9 Secured wholesale funding 10 Additional requirements 11 of which: Outflows related to derivative exposures and other collateral requirements 12 of which: Outflows related to loss of funding on debt products 13 of which: Credit and liquidity facilities 14 Other contractual funding obligations 15 Other contingent funding obligations	319,396 312,232 - - 4,834 4,091 325,390 31,337 317,803 30,681 151,109 7,555 148,100 7,405 174,281 23,782 169,703 23,276 330,946 187,914 324,605 182,353 101,854 24,722 98,274 23,809 211,766 145,866 213,987 146,200 17,326 17,326 12,344 12,344 613 2,137 224,070 75,298 220,478 75,208 49,796 48,356 49,466 49,240 - - - - 174,274 26,942 171,012 25,968 10,448 988 10,327 817 136,695 9,164 136,000 10,104
16 Total Cash Outflows	305,314 301,300
Cash inflows 17 Secured lending (eg reverse repos) 18 Inflows from fully performing exposures 19 Other cash inflows	- - - - 48,122 1,170 44,798 1,748 33,614 24,154 31,141 21,631 37,301 37,301 40,337 40,337
20 Total Cash Inflows	119,037 62,625 116,276 63,716
21 Total HQLA 22 Total net cash outflows	Total adjusted value Total adjusted value 324,230 316,323 242,689 237,584
23 Liquidity Coverage Ratio (%)	133.63% 133.17%

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ANZ Basel III Pillar 3 disclosure June 2025

Appendix 1: Modification Details

Minor modifications were made to the content of the disclosures under the BCBS Standard where there are inconsistencies between the BCBS Standard and the Australian context. These modifications are noted in the respective tables throughout this document and outlined in detail in the table below.

Chapter	Template	Name	Row/ Column in BCBS template	Details	Modification	Rationale
DIS20: Overview of risk management, key prudential metrics and RWA	KM1	Key Metrics	Rows 14b-14d	Impact of any applicable temporary exemption of central bank reserves	Removed	Not applicable in the Australian context
	OV1	Overview of RWA	Rows 11-14 Row 15 Rows 25, 27-28	Equity Settlement risk Amounts below the thresholds for deduction subject to 250% risk weight and floor adjustment before/ after application of transitional cap	Removed Removed Removed	A capital deduction with no related RWA amounts Low materiality- standardised approach (SA) Not applicable in the Australian context
DIS21: Comparison of Modelled and Standardised RWA	CMS1	Comparison of modelled and standardised RWA at risk level	Row 7a	As above	As above	As above

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ANZ Basel III Pillar 3 disclosure June 2025

Glossary

ADI Authorised Deposit-taking Institution. Collectively Assessed Provision for Collectively assessed provisions for credit impairment represent the Expected Credit Loss Credit Impairment (ECL) calculated in accordance with AASB 9 Financial Instruments (AASB 9). These incorporate forward looking information and do not require an actual loss event to have occurred for an impairment provision to be recognised. Counterparty credit risk Counterparty credit risk is the risk of loss due to a counterparty failing to meet its obligations before the final settlement of the transaction's cash flows. Credit exposure The aggregate of all claims, commitments and contingent liabilities arising from on- and offbalance sheet transactions (in the banking book and trading book) with the counterparty or group of related counterparties. Credit risk Credit risk is the risk of loss due to a borrower or counterparty failing to meet their obligations. Credit Valuation Adjustment (CVA) Over the life of a derivative instrument, ANZ uses a CVA model to adjust fair value to take into account the impact of counterparty credit quality. The methodology calculates the present value of expected losses over the life of the financial instrument as a function of probability of default, loss given default, expected credit risk exposure and an asset correlation factor. Impaired derivatives are also subject to a CVA.

Credit Valuation adjustment (CVA) A capital charge to reflect potential mark-to-market losses due to counterparty migration risk capital charge for bilateral over-the-counter derivative contracts. Days past due The number of days a credit obligation is overdue, commencing on the date that the arrears or excess occurs and accruing for each completed calendar day thereafter. Encumbered and unencumbered Encumbered assets are assets that the bank is restricted or prevented from liquidating, selling, assets transferring or assigning due to legal, regulatory, contractual or other limitations. Unencumbered assets are assets which do not meet the definition of encumbered. Exposure at Default (EAD) Exposure At Default is defined as the expected facility exposure at the date of default. Individually Assessed Provisions for Individually assessed provisions for credit impairment are calculated in accordance with AASB Credit Impairment 9 Financial Instruments (AASB 9). They are assessed on a case-by-case basis for all individually managed impaired assets taking into consideration factors such as the realisable value of security (or other credit mitigants), the likely return available upon liquidation or bankruptcy, legal uncertainties, estimated costs involved in recovery, the market price of the exposure in secondary markets and the amount and timing of expected receipts and recoveries. Market risk The risk to ANZ’s earnings arising from changes in interest rates, foreign exchange rates, credit spreads, volatility, correlations or from fluctuations in bond, commodity or equity prices. ANZ has grouped market risk into two broad categories to facilitate the measurement, reporting and control of market risk: Traded market risk - the risk of loss from changes in the value of financial instruments due to movements in price factors for both physical and derivative trading positions. Trading positions arise from transactions where ANZ acts as principal with customers, financial exchanges or inter-bank counterparties. Non-traded market risk (or balance sheet risk) - comprises interest rate risk in the banking book and the risk to the AUD denominated value of ANZ’s capital and earnings due to foreign exchange rate movements. Operational risk The risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events including legal risk but excluding reputation risk. Past due facilities Facilities where a contractual payment has not been met or the customer is outside of contractual arrangements are deemed past due. Past due facilities include those operating in excess of approved arrangements or where scheduled repayments are outstanding but do not include impaired assets.

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ANZ Basel III Pillar 3 disclosure June 2025

Qualifying Central Counterparties QCCP is a central counterparty which is an entity that interposes itself between counterparties (QCCP) to derivative contracts. Trades with QCCP attract a more favourable risk weight calculation. Recoveries Payments received and taken to profit for the current period for the amounts written off in prior financial periods. Risk Weighted Assets (RWA) Assets (both on and off-balance sheet) are risk weighted according to each asset’s inherent potential for default and what the likely losses would be in the case of default. In the case of non-asset backed risks (i.e., market and operational risk), RWA is determined by multiplying the capital requirements for those risks by 12.5. Securitisation risk The risk of credit related losses greater than expected due to a securitisation failing to operate as anticipated, or of the values and risks accepted or transferred, not emerging as expected. Write-Offs Facilities are written off against the related provision for impairment when they are assessed as partially or fully uncollectable, and after proceeds from the realisation of any collateral have been received. Where individual provisions recognised in previous periods have subsequently decreased or are no longer required, such impairment losses are reversed in the current period income statement.

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