Australia and New Zealand Banking Group Ltd. — Earnings Release 2022

Oct 24, 2022

News Release

For Release: 21 October 2022

Update on large/notable items in Second Half FY22 results

ANZ today announced its Second Half 2022 Statutory and Cash Profit will be impacted by a number of large/notable items with a net after tax charge of $113 million, equivalent to ~2 basis points of CET1 capital at level 2.

• Customer remediation charge of $43 million (after tax). While the remediation program is approaching completion, the charge in the half related to revisions to a small number of customer remediation provisions and remediation program costs.

• Restructuring charge of $37 million (after tax).

• Net after tax charge of $33 million comprised of the impact of business divestments or closures during the period; a net charge relating to a lease modification and merger and acquisition related costs.

The relevant large/notable items (continuing operations) templates, reflecting the tables that will be shown in ANZ’s Second Half 2022 Consolidated Financial Report & Dividend Announcement, are included on the following pages.

ANZ’s Second Half FY22 result will be announced on Thursday 27 October 2022.

For media enquiries contact: For analyst enquiries contact: Stephen Ries Jill Campbell Head of Corporate Communications GGM Investor Relations Tel: +61 409 655 551 Tel: +61 412 047 448 Cameron Davis Executive Manager Investor Relations Tel: +61 421 613 819

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Approved for distribution by ANZ’s Continuous Disclosure Committee

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

Large/Notable items

The Group has recognised some large/notable items within cash profit from continuing operations. These items are shown in the tables below.

Cash Profit Net interest income Other operating income	September 2022 Full Year Large/notable items included in continuing cash profit Business divestments/ closures $M M&A related costs $M Customer remediation $M Litigation settlements $M Restruc- turing $M Withholding tax $M Lease modifi- cation $M Total $M	September 2021 Full Year Large/notable items included in continuing cash profit Business divestments/ closures $M Customer remediation $M Litigation settlements $M Restruc- turing $M Asian associate items $M Total $M
	- - - - - - - - 298 - (34) - - - 23 287	- (86) - - - (86) (28) (56) - - (347) (431)
Operating income Operating expenses	298 - (34) - - - 23 287 (69) (12) (190) (10) (81) - (47) (409)	(28) (142) - - (347) (517) (81) (185) (69) (127) - (462)
Profit before credit impairment and income tax Credit impairment (charge)/ release	229 (12) (224) (10) (81) - (24) (122) (4) - - - - - - (4)	(109) (327) (69) (127) (347) (979) 3 - - - - 3
Profit before income tax Income tax benefit/(expense)	225 (12) (224) (10) (81) - (24) (126) 18 2 58 - 13 (126) 7 (28)	(106) (327) (69) (127) (347) (976) (40) 106 21 35 - 122
Cash profit/(loss) from continuing operations	243 (10) (166) (10) (68) (126) (17) (154)	(146) (221) (48) (92) (347) (854)
Cash Profit Net interest income Other operating income	September 2022 Half Year Large/notable items included in continuing cash profit Business divestments/ closures $M M&A related costs $M Customer remediation $M Litigation settlements $M Restruc- turing $M Withholding tax $M Lease modifi- cation $M Total $M	March 2022 Half Year Large/notable items included in continuing cash profit Business divestments/ closures $M Customer remediation $M Litigation settlements $M Restruc- turing $M Withholding tax $M Total $M - (3) - - - (3) 294 (22) - - - 272 294 (25) - - - 269 (59) (148) (10) (30) - (247) 235 (173) (10) (30) - 22 (4) - - - - (4) 231 (173) (10) (30) - 18 18 50 - (1) (126) (59) 249 (123) (10) (31) (126) (41)
	- - 3 - - - - 3 4 - (12) - - - 23 15
Operating income Operating expenses	4 - (9) - - - 23 18 (10) (12) (42) - (51) - (47) (162)
Profit before credit impairment and income tax Credit impairment (charge)/ release	(6) (12) (51) - (51) - (24) (144) - - - - - - - -
Profit before income tax Income tax benefit/(expense)	(6) (12) (51) - (51) - (24) (144) - 2 8 - 14 - 7 31
Cash profit/(loss) from continuing operations	(6) (10) (43) - (37) - (17) (113)

Large/Notable items

The Group has recognised some large/notable items within cash profit from continuing operations. The impact of these items on the divisional results are shown in the tables below.

			September 2022 Full Year	September 2022 Full Year	September 2022 Full Year						September 2021 Full Year	September 2021 Full Year	September 2021 Full Year	September 2021 Full Year
		Large/notable items included in			continuing	cash profit				Large/notable items included in continuing cash profit
	Business							Lease		Business					Asian
	divestments/	M&A related	Customer	Litigation	Restruc-	Withholding		modifi-		divestments/	Customer	Litigation		Restruc-	associate
	closures	costs	remediation	settlements	turing	tax		cation	Total	closures	remediation	settlements		turing	items		Total
	$M	$M	$M	$M	$M	$M		$M	$M	$M	$M		$M	$M		$M	$M
Profit before income tax
Australia Retail	(3)	-	(219)	-	(32)		-	-	(254)	(255)	(275)		-	(47)		-	(577)
Australia Commercial	298	-	5	-	2		-	-	305	120	(62)		-	(5)		-	53
Institutional	8	-	2	(10)	(21)		-	-	(21)	16	28		(69)	(24)		-	(49)
New Zealand	-	-	25	-	(12)		-	-	13	13	(16)		-	(9)		-	(12)
Pacific	(26)	-	(1)	-	-		-	-	(27)	-	(2)		-	(1)		-	(3)
Group Centre	(52)	(12)	(36)	-	(18)		-	(24)	(142)	-	-		-	(41)	(347)		(388)
Profit before income tax	225	(12)	(224)	(10)	(81)		-	(24)	(126)	(106)	(327)		(69)	(127)	(347)		(976)
Income tax benefit/(expense)	18	2	58	-	13	(126)		7	(28)	(40)	106		21	35		-	122
Cash profit/(loss) from continuing operations	243	(10)	(166)	(10)	(68)	(126)		(17)	(154)	(146)	(221)		(48)	(92)	(347)		(854)
			September 2022 Half Year									March	2022 Half	Year
		Large/notable items included in			continuing	cash profit				Large/notable items included in continuing cash profit

	Business						Lease		Business
	divestments/	M&A related	Customer	Litigation	Restruc-	Withholding	modifi-		divestments/	Customer	Litigation	Restruc-	Withholding
	closures	costs	remediation	settlements	turing	tax	cation	Total	closures	remediation	settlements	turing	tax	Total
	$M	$M	$M	$M	$M	$M	$M	$M	$M	$M	$M	$M	$M	$M
Profit before income tax
Australia Retail	-	-	(53)	-	(19)	-	-	(72)	(3)	(166)	-	(13)	-	(182)
Australia Commercial	1	-	6	-	3	-	-	10	297	(1)	-	(1)	-	295
Institutional	1	-	8	-	(17)	-	-	(8)	7	(6)	(10)	(4)	-	(13)
New Zealand	-	-	25	-	(6)	-	-	19	-	-	-	(6)	-	(6)
Pacific	(8)	-	(1)	-	-	-	-	(9)	(18)	-	-	-	-	(18)
Group Centre	-	(12)	(36)	-	(12)	-	(24)	(84)	(52)	-	-	(6)	-	(58)
Profit before income tax	(6)	(12)	(51)	-	(51)	-	(24)	(144)	231	(173)	(10)	(30)	-	18
Income tax benefit/(expense)	-	2	8	-	14	-	7	31	18	50	-	(1)	(126)	(59)
Cash profit/(loss) from continuing operations	(6)	(10)	(43)	-	(37)	-	(17)	(113)	249	(123)	(10)	(31)	(126)	(41)