Australia and New Zealand Banking Group Ltd. — Interim / Quarterly Report 2015

Feb 16, 2015

2015

AUSTRALIA AND NEW ZEALAND BANKING GROUP

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Risk Weighted Assets as at Dec 2014

Total Risk Weighted Assets Quarterly movement

Credit Risk Weighted Assets Quarterly movement

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$b $b
0.9
21.4
378.9
(4.1) 2.4
(0.8) 8.2 330.3
(2.1)
12.9
361.5 308.9 FX has a broadly
neutral impact on CET1
ratio given offsetting
“Organic” business FCTR movement.
growth of $9.5b.
One off, Non recurring
and FX impacts $11.9b.
+4%
+5%
+7%
Sep-14 CRWA Op Risk IRRBB Mkt Risk Dec-14 Sep-14 Growth FX Data/ Risk Dec-14
impact Meth.
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2

Credit Quality – continued portfolio improvement in 1Q15

Net Impaired Assets

Individual Provision charge

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$m
100%
5,000
4,685 534 90%
513
4,500
4,069 80%
4,000 3,884
70%
3,423
3,500
60%
3,000
2,797
294 [293 ] 285 50%
2,500
226 40%
2,000
1,713
1,584
30%
1,500 157
125
1,000 105 20%
500 10%
0 0%
Sep 09 Sep 10 Sep 11 Sep 12 Sep 13 Sep 14 Dec 14 1Q07 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15
Australia New Zealand 1Q IP charge ($m)
IIB Other 1Q IP charge as a % of full year IP charge (RHS)
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1Q IP charge ($m) 1Q IP charge as a % of full year IP charge (RHS)

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3

Capital movements

APRA Basel 3 Common Equity Tier 1 Ratio

Past 4 quarter movements: • Cash NPAT:	Past 4 quarter movements: • Cash NPAT:	+0.5% +2.0%
• •	Dividends: RWA & non RWA business use:	- 1.2% - 0.4%
•	Other:	+0.1%

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9%
8.8
8% 8.2 8.5 8.3 8.3 8.4
8.0 7.9
7.7
7%
6%
5%
4%
3%
2%
1%
0%
Dec Mar Jun Sep Dec Mar Jun Sep Dec
-12 -13 -13 -13 -13 -14 -14 -14 -14
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CET1 (Quarters in which dividend payments are deducted) CET1 (Quarters in which no dividend payments are deducted)

APRA CET1 Quarterly movement

% 0.49 8.79 (0.18) (0.10) 8.35 (0.64) (0.01) Half year dividend deducted December 2014 quarter Sep 14 NPATCash 1 UsageRWA 2 Non RWABusiness Dividends Other Dec 14 Usage3

Capital reconciliation under Basel 3 (December 2014)

	CET1	Tier 1	Total Capital
APRA	8.4%	9.9%	11.8%
10%/15% allowance fore equity investments and DTA	0.9%	0.9%	0.8%
Mortgage 20% LGD floor	0.3%	0.4%	0.5%
IRRBB RWA (APRA Pillar 1 approach)	0.2%	0.3%	0.3%
Specialised Lending (Advanced Treatment)	0.3%	0.4%	0.4%
Corporate undrawn EAD and unsecured LGD adjustments	1.4%	1.5%	1.8%
Other capital items	0.4%	0.4%	0.5%
Internationally Comparable	11.9%	13.8%	16.1%

1. Cash earnings net of preference share dividends

2. Includes impact of expected loss versus eligible provision shortfall

3. Includes capital retention of deconsolidated entities, capitalised software and other intangibles

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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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