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Australia and New Zealand Banking Group Ltd. — Interim / Quarterly Report 2017
Feb 16, 2017
10425_rns_2017-02-16_a3418cde-28d5-4eca-a316-7cba5e3998f4.pdf
Interim / Quarterly Report
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2017
A U S T R A LI A A N D N E W Z E A L A N D B A N K I N G GR OU P L I MI T E D 1 7 F E B R U A RY 2 0 1 7
TRADING UPDATE & PILLAR 3 INFORMATION SUPPORT PACK
To be read in conjunction with ANZ Trading Update – 3 months to 31 December 2016 and ANZ December 2016 APS330, Pillar 3 disclosure
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RISK WEIGHTED ASSETS
TOTAL RISK WEIGHTED ASSETS (RWAs)
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$b 409 412
402
387 14 388 18 17
14 38 16 39 39
33 38
340 350 334 352 356
Mar 15 Sep 15 Mar 16 Sep-16 Dec-16
Market & IRRBB RWAs Op-Risk RWAs Credit RWAs
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CREDIT RWAs
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$b 340 350 334 352 356
48 48 43 40 41 Standardised / Other
31 32 35 36 35 Specialised Lending
39 41 38 39 39 Retail (QRR & Other)
54 55 57 84 86 Residential Mortgage
28 24 21 22 22 Bank & Sovereign
Corporate
140 150 140 131 133
Mar-15 Sep-15 Mar-16 Sep-16 Dec-16
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$b
CREDIT RWA MOVEMENT
CREDIT RWA & EAD MOVEMENT
$b (FX adjusted) Credit RWA EAD
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3.3 1.3 355.7
352.0
0.9
Includes ~$3b reduction in loan
products, partly offset by growth
in Markets
CRWA Sep 16 FX impact Institutional Aus Div, NZ CRWA Dec 16
Div, Other
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15.2
Increase largely driven by bank /
sovereign EAD growth (for liquidity 9.9
purposes) with low RWA’s
5.3
1.9
0.4 0.8 0.4 0.1 0.4
-0.9 -0.8
-1.5
Total Aus HL Aus Non HL NZ Institutional Other
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2
Financial information provided in AUD and on a cash basis unless otherwise stated
CREDIT QUALITY
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GROSS IMPAIRED ASSETS
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$m
5,000
4,264
4,000
3,173 3,230
2,889
3,000 2,719
2,000
1,000
0
Sep-13 Sep-14 Sep-15 Sep-16 Dec-16
Other Institutional NZ Australia
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TOTAL PROVISION CHARGE
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$m 1,956
1,197 989 1,205
1,939
1,167 1,144 1,110
283
325
30 -155 95 17 -42
FY13 FY14 FY15 FY16 1Q17
Individual Provision Collective Provision
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INDIVIDUAL PROVISION (IP) CHARGE
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$m (1H13 to 2H16 are quarterly average (Q/avg))
600
524
500 446
400
327 325
300 297 286 301 271
228
200
100
0
1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1Q17
Q/avg Q/avg Q/avg Q/avg Q/avg Q/avg Q/avg Q/avg
Consumer Commercial Institutional Oswal Settlement
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IP CHARGE COMPOSTION BY QUARTERS
% of total
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29% 25% 32% 31% 29%
4Q
20% 22% 27% 23% 23% 3Q
2Q
26%
39% 21% 30% 29% 1Q
25% 14% 20% 16% 19%
2013 2014 2015 2016 Avg 2013-2016
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3
Financial information provided in AUD and on a cash basis unless otherwise stated
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SUMMARY OF ASSET DISPOSALS
OCTOBER 2016 – JANUARY 2017
TRANSACTION SUMMARY
(based on previously disclosed information in news releases of 31 October 2016, 3 January 2017 and 11 January 2017)
| Asset | Signing date | Expected completion | Sale price | Net gain / (Loss) on sale (after costs) |
CET1 impact (APRA basis) |
|---|---|---|---|---|---|
| Retail & Wealth businesses in 5 Asian countries |
30 October 2016 | 2H17: 3 countries 1H18: 2 countries |
~$110m (premium to net tangible assets) |
~$265m loss (higher in 1H17 offset back to ~$265m in subsequent periods) |
~15 to ~20bp |
| SRCB 20% stake | 31 December 2016 | Mid 2017 | $1,838m (total consideration) |
No material impact (Revaluation impact largely offset by release of reserves)1 |
~40bp |
| UDC Finance | 11 January 2017 | Late second half 2017 calendar year |
~NZ$235m (Premium to net assets) |
~A$100m | ~10bp |
CONTRIBUTION TO ANZ FY2016 FINANCIAL PERFORMANCE (Excluding gain / (Loss) on sale) [2, 3 ]
| Asset | Lending Assets | Credit RWAs | Deposits | 2016 Profit Before Provisions (pa) |
2016 Cash Profit After Tax (pa) |
|---|---|---|---|---|---|
| Retail & Wealth businesses in 5 Asian countries |
~$11b (GLAs) | ~$7b | ~$17b | ~$225m | ~$50m |
| SRCB 20% stake | - | - | - | ~260m | ~$260m |
| UDC Finance | ~NZ$2.6b | ~NZ$2.2b4 | ~NZ$1.6b | NZ$89m | NZ$59m |
1.Subject to timing differences
-
2.Disposal of assets will progressively impact 2017 and subsequent period financial statements as completion dates are finalised and business is transitioned from ANZ (progressively in the case of the retail and wealth businesses in 5 Asian countries)
-
3.2017 Half Year financial information scheduled for release 2 May 2017
-
4.APRA basis
4
Financial information provided in AUD and on a cash basis unless otherwise stated
Further Information
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Our Shareholder information
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.
shareholder.anz.com
Equity Investor
Jill Campbell
Group General Manager Investor Relations +61 3 8654 7749
+61 412 047 448 [email protected]
Cameron Davis
Executive Manager Investor Relations +61 3 8654 7716
+61 421 613 819
Katherine Hird
Senior Manager Investor Relations +61 3 8655 3261 +61 435 965 899 [email protected]
Retail Investors
Debt Investors
Michelle Weerakoon
Manager Shareholder Services & Events +61 3 8654 7682 +61 411 143 090 [email protected]
Scott Gifford
Head of Debt Investor Relations +61 3 8655 5683 +61 4 434 076 876 [email protected]
Donna Chow
Associate Director, Debt Investor Relations +61 3 8655 1402