APRA to apply additional op risk capital requirement

Australia and New Zealand Banking Group Limited ABN 11 005 357 522
News Release
For release: 11 July 2019

APRA to apply additional operational risk capital
requirement

APRA has advised ANZ that it will require an additional capital overlay of $500 million
1
for
operational risk following APRA’s recent report on Australian banks’ self-assessments into
governance, culture and accountability.

This represents an 18 basis point impact on ANZ’s Common Equity Tier 1 (CET1) capital
ratio
2
. The increased capital requirement is effective from 30 September 2019.

APRA notes that the overlay will apply until ANZ has effectively completed the planned uplift
in non-financial risk management as outlined in ANZ’s Self-Assessment Roadmap.

Separately, as previously announced by APRA, the revisions to the measurement of
counterparty credit risk (SA-CCR) commenced on 1 July 2019. ANZ estimates that these
changes will result in an increase in risk weighted assets, equivalent to approximately 15
basis points of CET1 capital.









For media enquiries contact: For analyst enquiries contact:

Stephen Ries Cameron Davis
Tel: +61 409 655 551 Tel: +61 421 613 819











1 The impact on risk weighted assets is $500 million multiplied by 12.5 as per APRA’s prudential standards.
Consequently, the actual impact on capital will vary depending on ANZ’s capital ratio at the time.

2 Based on ANZ’s capital position as at 31 March 2019.