ANZ 2019 Annual Report

2019
ANNUAL REPORT
ANZ
Our success
depends on
improving the
financial wellbeing
of our customers

2019 performance snapshot 1
Our 2019 reporting suite 2
What matters most 3
Chairman’s message 4
CEO’s message 6
About our business 8
Our strategy 9
How we create value 10
Working with our stakeholders 12
Our operating environment 14
Becoming a fairer and more responsible bank 16
Our customers 17
Our divisions 21
Contents
Our people 24
Our community 28
Governance 32
Risk management 44
Performance overview 52
Five year summary 64
Remuneration Report 66
Directors’ Report 99
Financial Report 101
Shareholder information (unaudited) 220
Glossary 227
Important dates for shareholders 229
Contacts 230
An ANZ customer for 10 years, Brian has appreciated the bank’s
support through those times. “During the algae bloom in 2010
I went to ANZ and pleaded relief. We did not know when things
would pick up. I am grateful for ANZ sticking with us through
that time”.
Fast forward to 2019 and Brian’s business is once again facing
difficulties, this time as a result of the drought impacting much
of Australia.
“Oyster farming needs fresh water,” says Brian. “Famine on the land
means famine in the sea. The oysters have poor growth, it’s difficult
to maintain their condition and they’re harder to sell.”
Last year in response to the drought ANZ donated $500,000 to
the Financial Counselling Foundation for use by rural counselling
agencies working in drought affected communities.
Brian recently found himself seeking the assistance of one of
those agencies, reaching out to the Rural Financial Counselling
Services (Southern NSW ). The service, which is free, supports
rural businesses through ongoing drought, poor production or
anything else affecting their business and their life.
“When you’re doing it tough it’s all too hard, and the state you
are in does not always lead to rational decisions,” says Brian. “The
financial counsellor looks at you as a person, as well as a business.”
Brian looks forward to building up the business again, but he
doubts things will ever be as good as they were in 1985. “This
business is mostly about loving the lifestyle. People who want to
be on the water and love working outdoors in Australia’s oldest
aquaculture industry.”
Image: Brian Coxon
Brian and Heather Coxon established BJ & HD Coxon Oyster Farmers in 1985 –
a time when stocks were plentiful and business was booming. Since that time,
the business has faced some difficult times.
COVER STORY
Supporting drought
affected communities
in rural Australia
ANZ 2019 ANNUAL REPORT

1.
On a cash profit (continuing operations) basis. Excludes non-core items included in
statutory profit and discontinued operations included in cash profit. It is provided to assist
readers in understanding the result of the ongoing business activities of the Group. For
further information on adjustments between statutory and cash profit refer to page 53.
2.
Equals shareholders’ equity less preference share capital, goodwill, software and other
intangible assets divided by the number of ordinary shares.
3.
APRA Level 2.
4.
Measures representation at the Senior Manager, Executive and Senior Executive levels. Includes
all employees regardless of leave status but not contractors (who are included in FTE).
5.
Figure includes forgone revenue of $109 million, being the cost of providing low or fee
free accounts to a range of customers such as government benefit recipients, not for
profit organisations and students.
Cash return on equity
1
10 .9 %
funded and facilitated
in environmentally
sustainable solutions
$19.1b
CO
2
in community investment
5
$142.2m
160¢
Cash profit
1
6.5
b
$
$19 .59
Net tangible assets
per share
2
11.4 %
Common Equity
Tier 1 Capital
3
32.5%
of women in leadership
4
total shareholder
return
9.2%
of employees
volunteered
42.4 %
228¢
Cash earnings per share
1
>90,000
people have been reached
through our financial
wellbeing programs,
MoneyMinded and Saver Plus
$
Dividend for FY19
per share
since 2015
2019
performance
snapshot
1

2019 Annual Report
anz.com/annualreport
2019 Corporate Governance Statement
anz.com/corporategovernance
2019 ESG Supplement
anz.com/cs
2019 Climate-related Financial Disclosures
anz.com/shareholder/centre
Our 2019
reporting suite
1.
Group: Australia and New Zealand Banking Group Limited (the Company) and the entities it controlled at the year end and from time to time during the financial year (together, the Group).
2.
ESG content includes the following sections: 2019 Performance Snapshot, What Matters Most, Working with our stakeholders, Becoming a fairer and more responsible bank, Our Customers,
Our People, Our Community, Risk Management: Our approach to climate change and ESG metrics on page 65.
3.
The 2019 Annual Review is comprised of pages 1 to 65 and 229 to 230 of this Annual Report and a Remuneration Overview.
Additional information
We produce a suite of reports to meet the needs and requirements
of a wide range of stakeholders, including investors, customers,
employees, regulators, non-government organisations and the
community.
Our 2019 Corporate Governance Statement discloses how we have
complied with the ASX Corporate Governance Council’s ‘Corporate
Governance Principles and Recommendations – 3rd edition’ is
available at anz.com/corporategovernance.
Our ESG Supplement will complement this Annual Report, providing
stakeholders with more detailed ESG disclosures, including:
performance against our ESG targets and our approach to our
priority areas of fair and responsible banking, financial wellbeing,
environmental sustainability and housing.
The following documents are available at
anz.com/shareholder/centre:
•News Release
•Consolidated Financial Report, Dividend Announcement
& Appendix 4E
•Results Presentation and Investor Discussion Pack
•Annual Review
3
•The Company Financial Report
•Principal Risks and Uncertainties Disclosure
•APS 330 Pillar III Disclosure
•Climate-related Financial Disclosures
We are continually seeking to improve our reporting suite and
welcome feedback on this report. Please address any questions,
comments or suggestions to investor.relations@anz.com.
Integrated reporting
This Report includes information on our financial and non-financial
performance, providing readers with a holistic view of the Australia
and New Zealand Banking Group Limited’s
1
performance. In
preparing pages 1 to 65, we have continued to draw on aspects of
the International Integrated Reporting (IR) Framework to describe
how our business model, strategy, governance and risk management
processes are addressing risks and opportunities in our operating
environment and delivering value for our stakeholders. We outline
our response to external social and environmental challenges,
including the work we are undertaking to reshape our business,
improve customer outcomes and transform our culture.
Annual Report structure
The required elements of the Directors Report, including the
Operating and Financial Review (OFR) as required by ASIC Regulatory
Guide 247, are covered on pages 1 to 65. Commentary on our
performance overview contained on pages 52 to 64 references
information reported in the Financial Report pages 101 to 218.
The Remuneration Report pages 66 to 98 and the Financial Report
pages 101 to 218 have been audited by KPMG. KPMG also provides
limited assurance over Environmental, Social and Governance
(ESG) content2 within this Annual Report. A copy of KPMG’s limited
assurance report will be contained in the ANZ 2019 Environment,
Social and Governance (ESG) Supplement to be published in
December 2019.
This report covers all ANZ operations worldwide over which, unless
otherwise stated, we have control for the financial year commencing
on 1 October 2018 and ending 30 September 2019. Monetary
amounts in this document are reported in Australian dollars,
unless otherwise stated.
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2

Stakeholders provided us with
three key insights:
1 They expect us to focus on long-term value creation,
not short-term profit maximisation;
2 While the actions we have taken to date in response to the
Royal Commission are considered good and necessary,
they want us to do more. In particular, they expect Board
and management to demonstrate customer-centric
actions in line with the ‘spirit’ of the Royal Commission’s
findings; and
3 They see a broader role for the Board in overseeing conduct
and culture and an expectation that real and lasting change
happens as a result of the Royal Commission.
What
matters
most
A focus on fair and responsible banking
Through our annual materiality assessment we engage with internal
and external stakeholders to inform our identification of ESG risks
and opportunities. We seek to identify those issues that have the
most potential to impact our ability to operate successfully and
create value for our stakeholders.
These issues may change over time, reflecting changes in our
business and external operating environment and the expectations
of stakeholders. We use the results of the assessment to inform
our strategy.
This year, we focused our assessment solely on fairness and
ethical conduct, which has been ranked as our most material
issue for the last three years. Specifically, we sought external
stakeholder views on the actions we are taking following the Royal
Commission into Misconduct in the Banking, Superannuation and
Financial Services Industry (the Royal Commission).
These insights were presented to the Board Ethics,
Environment, Social and Governance Committee, the
management Ethics and Responsible Business Committee
and the management Royal Commission and Self-Assessment
Oversight Group, and are informing our continuing work on
improving customer outcomes.
We have drawn on our 2018 materiality assessment to help
guide the content of this report. After fairness and ethical
conduct, stakeholders ranked the following four issues (risks or
opportunities) as having the most potential to impact our value
creation in the short, medium and long-term.
How We Creat Value Icons
Stakeholder icons
Most material issues iconsCustomer story icon
New icons/infographics
Fraud and data security: ensuring we have strong
internal controls and risk management frameworks
in place is critical as a breach could significantly
impact the bank’s operations and reputation.
How We Creat Value Icons
Stakeholder icons
Most material issues iconsCustomer story icon
New icons/infographics
Customer experience: ensuring a positive
customer experience is key to delivering
sustainable business performance in the long-term.
How We Creat Value Icons
Stakeholder icons
Most material issues iconsCustomer story icon
New icons/infographics
Corporate governance: organisations with strong
corporate governance processes and policies in
place are likely to perform better in the long-term.
How We Creat Value Icons
Stakeholder icons
Most material issues iconsCustomer story icon
New icons/infographics
Digital innovation: core to our strategy and a key
factor in driving positive customer experience.
A full list of ANZ’s key material risks is available on pages 46–47.
The key steps undertaken in our 2019 materiality process, as well
as the full list of our material ESG issues, is discussed in our 2019
ESG Supplement available at anz.com/cs in December.
How We Creat Value Icons
Stakeholder icons
Most material issues iconsCustomer story icon
New icons/infographics
3

Chairman’s
message
Challenging conditions continued in 2019 and our statutory profit of $6.0 billion was down
7% on the previous year. Cash profit from continuing operations (which excludes non-core
items and the discontinued Wealth businesses from statutory profit) was $6.5 billion, flat
when compared with the same time last year.
Despite those tough conditions, we held our
FY19 full year dividend at 160 cents with the
final dividend of 80 cents franked at 70%.
We recognise how important the dividend, franking and predictability is to shareholders.
The Board’s decision to reduce franking to a new base reflects the changed shape of our
business and the earnings in our Australian geography.
This has been a difficult year for us and Australian banks generally. Intense competition,
slow credit growth and increased regulation have combined with lower consumer
confidence to create this.
While this is reflected in our financial performance – particularly within our Australian Retail
and Commercial business – the actions taken in recent years to improve the structure of
our bank has us well-placed to meet the industry’s challenges.
DAVID GONSKI, AC
ANZ 2019 ANNUAL REPORT
4

These actions include returning our Institutional business to
profitable growth as well as the progress we have made to simplify
the products and services we offer our retail customers in Australia
and New Zealand.
We started early on our simplification agenda and this work
continued throughout the year. Simplification continues to
underpin improvement across ANZ.
A major milestone was the completion of the sale of our Life
Insurance business in Australia to Zurich Financial Services Australia
and we have also made significant progress in the sale of our
Pensions & Investments business to IOOF. Subject to approval from
the Australian Prudential Regulation Authority (APRA), we expect to
complete this transaction in the first quarter of 2020.
Another highlight was the sale of some of our non-core assets
outside of home markets, including our retail banking joint venture
in Cambodia, our retail business in Papua New Guinea and our Life
Insurance business in New Zealand. This continues the stronger
focus on investments and resources in our core strategic retail
and commercial businesses in Australia and New Zealand and our
Institutional business in Asia Pacific.
Unfortunately there have also been challenges. This year we have
announced an additional charge of $682 million as a result of an
increase in our provisions for remediation work. While our Chief
Executive Officer (CEO) Shayne Elliott addresses this in his CEO
message, I want to assure shareholders that the Board understands
the impact fixing the failures of the past has on shareholders and
we are working proactively and as quickly as possible to remediate
impacted customers.
Our self-assessment
During the year, APRA asked a range of banks, superannuation
funds and insurance companies to take a closer look at their own
behaviour and operations.
There has been some attention given to the fact ANZ has not
released its self-assessment. APRA requested these self-assessments
on a confidential basis to ensure institutions responded in a way
that was full and frank. We have respected that request, noting
particularly the fact that people contributed openly to the process
on that basis and we will continue to do so. To assist those interested
in our self-assessment we have published a summary which can be
found on bluenotes at anz.com.
The self-assessment was a useful exercise where we identified many
critical issues across culture, accountability and governance. As we
outlined to APRA, the Board and executive team are determined
to use this as an opportunity to deepen our self-awareness and
to learn from our failings. Importantly, we do not see this as just a
compliance measure but as an opportunity to make ANZ a more
efficient, more sustainable bank.
We will be a simpler, less complex bank once we have implemented
our road map for change.
We will have fewer products and more
effective systems and processes. For
customers, we will be easier to deal with
and when things do go wrong we will be
faster to resolve them.

Critically, our regulator will recognise issues identified in our annual
attestation are being resolved in a timelier manner and this will flow
through to improvements in our comprehensive review.
Executive remuneration
ANZ recorded its ‘first strike’ last year when around 34% of shares
were voted against our Remuneration Report. The Board took this
result very seriously and shareholders will note there has been a
significant differentiation this year in the remuneration awarded to our
Disclosed Executives. Our Chair of the Human Resources Committee,
Ilana Atlas, provides more detail in the Remuneration Report.
You will note our CEO despite a solid personal performance, has
had his remuneration impacted by the broader performance of the
Group. In fact, variable remuneration for our Disclosed Executives
ranged between 0 and 74% of maximum opportunity. We also
enhanced our approach to accountability and consequence
management during the year and will continue to hold people to
account who fail to meet our standards.
Capital management
We continued our focus on capital efficiency this year by returning
excess capital to shareholders as a result of our simplification
agenda. We did this while also maintaining capital levels above
APRA’s ‘unquestionably strong’ requirements. In the financial year
of 2019 we reduced shares on issue by 42 million (equivalent of
$1.1 billion) as part of our $3 billion buy-back. That program
concluded in March 2019.
Outlook
While the Australian housing market is slowly recovering, we expect
challenging trading conditions to continue for the foreseeable future.
Record low interest rates in Australia
and global trade tensions will continue
to place pressure on earnings while
increased compliance and remediation
costs will be closely managed.
Competition will also remain in focus with the recently announced
inquiry into mortgage pricing. We have acknowledged we have not
always done a good job in explaining our position and hope the
inquiry enables the opportunity to provide facts on a complex matter.
On the regulatory front, both APRA and the Reserve Bank of New
Zealand have announced proposals that could lift the amount of
capital required to support our New Zealand subsidiary. The final
impact of these changes depend on a number of factors. This
includes the outcome of consultation, particularly the amount of
capital required, the time allowed to achieve it, and the instruments
we are permitted to use.
Management will maintain its focus on capital efficiency. However,
our strong ongoing capital generation capacity will assist in meeting
any additional capital requirements.
Despite the industry’s challenges, I’m confident we have the team,
the balance sheet and the oversight in place to execute effectively
against a strategy that will benefit all our stakeholders. On behalf of
the Board and myself, I thank our more than 39,000 people for their
hard work in supporting our customers and our shareholders.
David Gonski, AC CHAIRMAN
5

CEO’s
message
This has been a challenging year of slow
economic growth, increased competition,
regulatory change and global uncertainty.
Our progress
The core of our strategy has not changed. Put simply, we will generate decent returns
by improving the financial wellbeing of our customers.
This year we continued to focus on balance sheet strength, improve our culture, simplify
the business and rebuild our team’s capabilities. In doing this, we significantly reduced the
cost and risk of operating the bank despite the strong headwinds facing the sector.
We are determined to have the right people who listen, learn and adapt. We will put the
best tools and insights into the hands of our customers and people. Importantly, we will
concentrate our efforts on those particular things that add value to customers – and do
them right the first time.
This means we must continue to simplify our business, improve our customer proposition
and invest in innovations that deliver better customer outcomes and improve the efficiency
of our operations.
Retail and commercial in Australia had a difficult year. Increased remediation charges,
intense competition and record low interest rates have had a significant impact on earnings.
SHAYNE ELLIOTT
ANZ 2019 ANNUAL REPORT
6

While yet to flow through to the balance sheet, management
actions and operational improvements have seen a steady recovery
in home loan applications in recent months. These volume
improvements are expected to be maintained into 2020.
New Zealand delivered a solid underlying result in a more competitive
environment. As in Australia, compliance and remediation costs
contributed to higher operating expenses, while a focus on
operational efficiency offset inflation in business-as-usual expenses.
There are challenges ahead in New Zealand, particularly in relation
to the amount of capital we may be required to hold. However, we
are well-advanced in our preparations to manage these proposed
impacts in an orderly way.
Institutional continued its transformation with a return to profitable
growth. While macro conditions had an impact on financial
performance in the second half, the business is now generating
returns above our cost of capital that provides important
diversification given the lower growth in our home markets.
Customer remediation
The Royal Commission highlighted many failures the Australian banks
needed to quickly remedy. ANZ is not immune from this challenge.
This year we announced an additional charge of $682 million as a
result of an increase in our provisions for remediation work. We know
this is real money and has a real impact on shareholders. But we also
know it’s important to fix the mistakes of the past and return money
owed to customers as quickly as possible.
We are currently resolving identified fee or interest discrepancies
with over 3.4 million Australia Retail and Commercial customers.
To date our Responsible Banking team has remediated over one
million customer accounts.
If there is a positive from this work, it is that much of the time and
resources being invested in remediating our systems and processes
will make us a better bank for our customers and shareholders.
It means the mistakes of the past are unlikely to be repeated and
when issues arise they will be easier to fix.
Customers and community
Our purpose of shaping a world where people and communities
thrive guides our decisions.
An example of this is the program
we have in place to proactively contact more than one million
customers to help them get more value from our products and
services, including those eligible for Centrelink or Veterans’ Affairs
benefits or those with persistent credit card debt. This is to make
sure customers are using the best products given their individual
circumstances and that they are aware of all the options available.
Another issue we care about is providing affordable and sustainable
housing for Australians and New Zealanders. We do this by
encouraging investment in the sector – including our role leading
the largest social bond issuance for housing in Australia.
We also know we have a role in enhancing environmental
sustainability and we are focusing our efforts on energy,
water and waste.
We have committed to fund and
facilitate $50 billion by 2025 towards
sustainable solutions for our customers,
including initiatives that help improve
environmental sustainability, increase
access to affordable housing and
promote financial wellbeing.
This is not philanthropy. It’s really good business for our
customers and shareholders given the growth opportunities
available in the sector. It’s also a business we are good at
given our network and capabilities and an area we expect to
grow rapidly in the coming years as the world grapples with
environmental challenges.
Changing how we reward our people
This year we introduced wide-ranging reforms to the way we
pay people. Variable remuneration is now a smaller part of
our people’s take-home pay and these reduced bonuses are
determined by the overall performance of the bank.
This is not about paying our people less. It is an industry-leading
initiative that will positively enhance our culture and become an
important point of differentiation. It also addresses the negative
impact an over-emphasis on individual bonuses within a bank
can have on customers and the community.
Redesigning how we reward our staff was one of the 16 key
initiatives we announced as part of our initial response to the
Royal Commission recommendations. As part of this, we also
strengthened our accountability frameworks to ensure there are
appropriate consequences for the small number of people who
do not meet standards of behaviour or performance.
Finally, despite this difficult environment, we have made good
progress this year and I’d like to thank the more than 39,000
people who turn up for ANZ and work hard every day for our
customers. I’m confident we have the right strategy and team to
deliver great, sustainable results in the future for our customers,
our shareholders and the community.
Shayne C Elliott
CHIEF EXECUTIVE OFFICER
7

We provide banking and financial products and services to around eight million
individual and business customers, and operate in and across 33 markets.
About our business
Our purpose
Our purpose is to help shape a world in which people and
communities thrive. That means striving to create a balanced,
sustainable society in which everyone can take part and build
a better life.
One of the ways we are bringing our purpose to life is through
helping to address complex issues that matter to society and are
core to our business strategy. We are focusing our efforts on:
•financial wellbeing – improving the financial wellbeing of our
customers, employees and the community by helping them
make the most of their money throughout their lives;
•environmental sustainability – supporting household,
business and financial practices that improve environmental
sustainability; and
•housing – improving the availability of suitable and affordable
housing options for all Australians and New Zealanders.
We are contributing to these challenges by: developing innovative
and responsible financial products and services; participating
in relevant policy development and research; strengthening
stakeholder partnerships; and harnessing the skills of our people.
Fundamental to our approach is a commitment to fair and
responsible banking – keeping pace with the expectations of
our customers, employees and the community, behaving fairly
and responsibly and maintaining high standards of conduct.
Throughout this report we illustrate how we are embedding
purpose into our business strategy, including through our
Environment, Social and Governance (ESG) targets and
performance objectives.
The United Nations Sustainable Development Goals (SDGs)
seek to respond to the world’s most pressing challenges.
Business has an important role to play in helping achieve the
SDGs. Recognising this we have identified our targets which
are making a contribution to the achievement of the SDGs
in our 2019 ESG Supplement available at anz.com/cs
in December.
Our culture and values
Our values are the foundation of how we work and are supported by our Code of Conduct. All employees and contractors must comply
with the Code, which contains guiding principles and sets the standards for the way we do business at ANZ.
ExcellenceIntegrityCollaborationAccountabilityRespect
We care about:
ANZ 2019 ANNUAL REPORT
8

Our strategy is focused on improving the financial wellbeing of our
customers; having the right people who listen, learn and adapt; putting the
best tools and insights into their hands; and focusing on those few things
that really add value to customers and doing them right the first time.
Our strategy
We believe that the execution of our strategy will deliver decent
returns for our shareholders, while achieving a balance between
growth and return, short and long-term performance and financial
and social impact.
While our focus has evolved over the past four years, the strategic
imperatives remain the same: creating a simpler, better balanced
bank; focusing our efforts where we can carve out a winning
position; building a superior everyday experience to compete in the
digital age; and driving a purpose and values led transformation.
In our Australian and New Zealand businesses we are: delivering
improved customer outcomes, while rationalising our products
and services; developing new compelling services and distribution
options; and developing new initiatives to enhance our home
owner and small business owner propositions.
Within our Institutional business we are creating an integrated
trade, cash and markets experience, while developing and
appropriately scaling our capabilities across geographies to
deliver connectivity for our customers.
Our strategy has driven significant improvement in our business
over the past four years. We have strengthened our balance sheet,
improved our culture, simplified the business and rebuilt our
people’s capabilities. In doing so we have reduced the costs and
risks associated with running the bank.

Create a simpler,
better capitalised,
better balanced bank
Build a superior
experience for our
people and customers
in order to compete in
the digital age
Focus our efforts
where we can carve out
a winning position
Drive a purpose
and values led
transformation of
the bank

Improve the
financial wellbeing
of our customers
Deliver decent returns
for our shareholders
- targeted growth
- low cost
- capital efficient
Resilient, adaptable
and capable workforce
Improve housing,
environmental and
financial wellbeing
outcomes for the
community
Improving the financial
wellbeing of customers...
...with flexible and resilient digital
infrastructure that supports great
customer experience at lower cost
...with people
who listen,
learn and adapt
...with the
best tools
and insights
...looking to
save for,
buy and
own a
home
...looking
to start,
buy and
grow a
business
...looking to
move capital
and goods
around the
region
Strategic ImperativesStrategyTarget Outcomes
Purpose
Our purpose is to help shape a world in which people and communities thrive
9

Finance
Access to capital through
customer deposits, debt and equity
investors and wholesale markets
enables us to run our operations
and execute our strategy.
Risk management
Reducing the risk of doing business
for our customers and the bank,
with systems and processes that
are less complex, less prone to
error and more secure.
Technology and
data capabilities
Flexible, digital–ready
infrastructure to provide
great customer experience,
agility, scale and control.
Community and
relationships
Strong stakeholder
relationships are essential
to our brand and reputation.
Customers
Trusted relationships
with our ~ 8 million retail,
commercial and
Institutional customers.
People
Employees and contractors
with the key competencies
and right behaviours to
deliver our strategy.
¢
$
By transforming our business –
embedding a purpose and values
led culture and simplifying our
products and services – we aim
to create long-term value for
all of our stakeholders.
Our value creation model
outlines how we create value for
our key stakeholders through our
business activities, and identifies
the inputs – or value drivers –
that we rely on to enable us to
deliver that value and meet our
strategic objectives.
How we
create
value
Digital
advancement
and technological
change
Globalisation
Demographic
changes
Lower credit growth
environment
Environment
and climate
Increased
regulatory
oversight and
stakeholder
scrutiny
OUR VALUE DRIVERS
OUR OPERATING
ENVIRONMENT
The risks and opportunities
in our operating environment
impact our ability to create value.
10

SHAREHOLDER VALUE
CUSTOMER VALUE
EMPLOYEE VALUE
COMMUNITY VALUE
› Deliver decent returns enabling shareholders to meet goals
› 228 cents earnings per share
1
› 10.9% cash return on equity
1
› 160 cents dividend per share for FY19 with the final dividend
of 80 cents franked at 70%
› 9.2 percent total shareholder return
› Improving the financial wellbeing of our customers
› Provide funding for lending, helping customers to own
homes and run businesses and assist businesses to transact,
trade and invest across our region
› Great customer experience through flexible and resilient
digital infrastructure
› We have contacted > 1 million of our Retail and Commercial
customers to help them get more value from our products
and services
› 20,024 FTE supporting our Retail and Commercial
customers, providing $339 billion in home lending and
$95 billion in business lending (Australia and New Zealand)
› 5,468 FTE supporting our Institutional customers,
providing $165 billion in lending
› Custodians of $512 billion of customer deposits across
the business
› Invest in our people to build a resilient, adaptable and
inclusive workforce with a strong sense of purpose and ethics
› 77% employee engagement (up from 73% in 2018)
› Employed 734 people from under-represented groups
(since 2016)
› $4.8 billion in employee salaries and benefits
› Increasing the skills and capabilities of our people providing
almost 1.5 million hours of training
› Connecting with, and investing in, the communities in
which we operate to support growth, deliver services and
develop opportunity
› Invested $142.2 million in the community
2
› $3,172 million in taxes paid to government
3
› > 90,000 people have been reached through our financial
wellbeing programs, MoneyMinded and Saver Plus
Operating across 33 markets,
we provide banking and financial
products and services to individual
and business customers.
Through our business activities
we deliver the following outputs:
› we provide transaction
banking services
› we hold deposits for our customers
› we lend money to our retail, small
business and corporate customers
› we help customers mitigate
and manage financial risks
› we support customers with
trade and capital flows
› we provide wealth
management products
› we provide advisory services
› we invest in our people to build
a diverse and inclusive workforce
› we collaborate with partners
to build capacity and improve
financial wellbeing
› we pay taxes in the countries
within which we operate
› we pay dividends to
our shareholders
OUR BUSINESS ACTIVITIES
1.
On a cash profit (continuing operations) basis. Excludes non-core items included in statutory profit and
discontinued operations included in cash profit. It is provided to assist readers in understanding the
result of the ongoing business activities of the Group. For further information on adjustments between
statutory and cash profit refer to page 53.
2.
Figure includes forgone revenue of $109 million, being the cost of providing low or fee free accounts to
a range of customers such as government benefit recipients, not for profit organisations and students.
3.
Total taxes borne by the Group, includes unrecovered GST/VAT,employee related taxes and other taxes.
Inclusive of discontinued operations.
11

Working with
our stakeholders
Our stakeholdersWhat they expect from us
Customers
•A customer-centred approach underpinned by ethical, fair and
responsible behaviour
•Financial products and services that are suitable, reliable and secure
Government
and
regulators
•Responsible financial products and services
•Fair and ethical conduct and a strong customer-focused corporate culture
•Effective governance and risk management
Shareholders
•Sustainable long-term positive financial performance and investment returns
•Effective assessment and management of material risks and opportunities
•Informative, transparent and timely communications
Employees
•A safe, diverse and inclusive workplace that encourages engagement,
collaboration and development
•Competitive remuneration and benefits, effective performance management

and recognition
Non-government
organisations
(NGOs)
•A clear and transparent approach to the management of existing and
emerging ESG risks and opportunities
•Minimising adverse social and environmental impacts of our lending

and operations
•Collaborative partnerships and appropriate and evidence-based approach

to community investment activities
Transparent and responsive engagement, combined with a genuine willingness on our part to listen and act, is one of
the most important ways in which we can demonstrate trustworthiness and rebuild community confidence. Stakeholder
engagement is embedded in our policies, processes and operations.
Summarised below are the key expectations of our stakeholders. For more detailed information on the issues raised by
stakeholders this year and how we have responded, refer to our 2019 ESG Supplement available in December at anz.com/cs.
How We Creat Value Icons
Stakeholder icons
Most material issues iconsCustomer story icon
New icons/infographics
How We Creat Value Icons
Stakeholder icons
Most material issues iconsCustomer story icon
New icons/infographics
How We Creat Value Icons
Stakeholder icons
Most material issues iconsCustomer story icon
New icons/infographics
Strong stakeholder relationships enable us to deliver our
business strategy and create long-term value.
ANZ 2019 ANNUAL REPORT
12

Saver Plus is a matched savings and financial education program
developed by ANZ and The Brotherhood of St Laurence.
The program is co-funded by the Australian Government and is
delivered by community partners and service delivery agencies
in 60 locations across Australia.
From its early pilot of 300 participants in 2003, the program is
rapidly approaching a milestone of 50,000 recruited participants
who have built their financial wellbeing and had over $19 million
in savings matched by ANZ. Saver Plus is life changing, with
research showing 87% of participants continue to save after
they have completed the program.
Partnership has been the key to the continued success and
impact of Saver Plus. The recent Saver Plus National Conference,
involving community coordinators, ANZ branch staff, government
representatives and partners was a rare opportunity to celebrate
the impact of the program and plan for the future.
“It was so great to see the collaboration between everyone,
regardless of who they worked for, because we all deliver the
same program. To see the team feel so energised and motivated
again was fantastic to witness,” said Cheryl Allen-Ankins, The Smith
Family, Saver Plus Program Manager.
Left to right: Saver Plus Co-ordinators, Denise Clark, Graeme Grice and
Cath Sweeney from The Smith Family at the Saver Plus National Conference
COMMUNITY STORY
Celebrating the impact of
our Saver Plus partnership
We have
matched over
$19 million
in savings
since 2003
$
13

We seek to anticipate and respond to the risks and opportunities arising
in our external environment to ensure that we can continue to create value
for our stakeholders. A summary of the issues influencing our strategy is
outlined below.
Our operating
environment
Our strategic imperatives assist us to respond positively
to this environment and meet societal expectations
These global trends present us with risks and opportunities
RISKSOPPORTUNITIES
LOWER CREDIT GROWTH ENVIRONMENT
•Increasing competition and regulatory requirements
places pressure on margins and customer volumes.
•New approaches are needed to deliver products and services
to our customers, together with efficient allocation of capital
and resources to generate returns to shareholders.
INCREASED REGULATORY OVERSIGHT AND STAKEHOLDER SCRUTINY
•Trust in the Australian and New Zealand banking industry
has eroded over the past two years.
•Increased regulatory expectations and focus places pressure
on margins and customer volumes.
•Community concerns remain high following the Royal
Commission in Australia and a number of regulatory
developments in New Zealand. We can rebuild trust by
transparently working with, and partnering with, government,
regulators and NGOs to deliver improved customer outcomes.
DIGITAL ADVANCEMENT AND TECHNOLOGICAL CHANGE
•Competition from existing and new competitors is increasing,
supported by government policy, such as the consumer
data right.
•With the increase in digitisation, strong cyber security capability
is critical.
•By improving our digital capabilities and investing in
cyber security, we can serve our customers in new and
innovative ways, meeting their needs for safe and secure
digital banking solutions.
DEMOGRAPHIC CHANGES
•Demand for home lending in Australia and New Zealand is
impacted by a range of supply and demand factors largely
outside of our control, including population growth, housing
prices and dwelling construction.
•Community concerns about housing affordability remain high.
We can help by partnering with business, government and
NGOs to deliver innovative and practical housing solutions.
ENVIRONMENT AND CLIMATE
•We will continue to experience negative reputational impacts
if we fail to raise standards across all our activities and take
customer and societal impacts into consideration when making
business decisions.
•By continuing to focus on improving customer outcomes and
strengthening our standards on issues such as environmental
sustainability and human rights, we have an opportunity to
differentiate ourselves from our peers.
GLOBALISATION
•Community concerns about aspects of trade and investment
can potentially limit opportunities.
•With increasing globalisation and the rise of Asia, we
can support our customers to increase their cross-border
trade and investment.
•Increased trade and investment leads to higher incomes and
employment for the communities in which ANZ operates.
ANZ 2019 ANNUAL REPORT
14

Chances are if you have strolled down the supermarket cereal aisle recently
you will have seen shelves stacked with boxes of Carman’s muesli.
Established in 1992 by Carolyn Creswell with a modest $1,000,
Carman’s is now a leader in breakfast and nutritious snacks,
exporting to 35 countries.
Using our international footprint we have helped connect
Carman’s to new markets, particularly in Asia, where there is an
abundance of opportunity for Westernised products.
“ANZ’s presence in Asia gives you introductions you would not
have otherwise because of their connections. It is really impressive
for an Australian bank to have that presence,” says Carolyn.
Having had a banking relationship for more than 10 years, the
journey for ANZ and Carman’s is centred on honesty, transparency
and integrity, identifying the ways in which each partner can
support the other.
Carolyn views Carman’s relationship with ANZ similar to any
other partnership.
“ANZ is a partner with us – the reality is ANZ is trying to make our
business better. If our business is better, we are going to do more
business with ANZ. We are all in this together.”
There is much ANZ can learn from Carman’s success, particularly
given Carolyn puts that success down to a focus on the customer
and having an engaged and passionate workforce – both central
elements of ANZ’s own strategy.
Image: Carolyn Creswell
CUSTOMER STORY
Helping our customers
export to the world
Our presence in
Asia has helped
Carman’s expand
into overseas
markets
15

Becoming a fairer and
more responsible bank
Our response to the Royal Commission
The Royal Commission into Misconduct in the Banking,
Superannuation and Financial Services Industry (the Royal
Commission) has had a profound impact on our organisation.

We are determined to learn from our failures and build a bank that is
worthy of the trust and respect of our customers and the community.
The Commission’s report led us to further examine how we serve
our customers. We identified eight lessons from our misconduct
and failures to meet community standards and expectations. These
lessons have informed our response to the ‘spirit and letter’ of the
Royal Commission. We are now identifying measures that will allow
us to be confident that these lessons have been acted on.
Our first step was to identify which Commission recommendations
we could quickly act on. This led to 16 initiatives to improve the
treatment of our retail customers, small businesses and farmers in
Australia. Some of the key commitments we have delivered on are:
•removing overdrawn and dishonour fees on our Pensioner
Advantage account (available to eligible recipients of Centrelink
or Veterans’ Affairs pensions)
•improving our service to Indigenous customers in remote
communities by setting up a dedicated phone service and
giving them easier options to prove their identity
•publishing principles to help family farming customers in
financial distress
•publishing principles on acting as a model litigant in disputes
with our customers
•implementing pay reforms that replace individual-based bonuses
for most of our employees with an incentive based on the overall
performance of the Group.
In addition to progressing these 16 initiatives, Colin Neave,
former Commonwealth Ombudsman and our first Customer
Fairness Adviser (appointed in 2016), reviewed individual ANZ
cases highlighted at the Royal Commission, taking action where
appropriate to resolve matters.
The majority of the recommendations in the Royal Commission
final report require legislative change and we will continue to work
with government as it implements those changes.
APRA Self-Assessment
In late 2018, the Australian Prudential Regulation Authority (APRA)
asked a range of financial services companies, including ANZ, to
examine through a Self-Assessment Report their behaviours and
operations in the wake of highly publicised misconduct in the sector.
We submitted our Self-Assessment Report to APRA in November
2018, and have since developed a ‘roadmap’ to act on the themes
raised in that report.
We identified five focus areas in which to concentrate our efforts to
deliver better outcomes. These areas were identified both through
the self-assessment as well as issues that were examined by the
Royal Commission.
Focus areas
Simplification
of our business, products
and processes
Culture
including the way we reward
and recognise our people
Governance
and
accountability
including how we are held to
account, and how we manage
and execute change
Remediation
including expansion of
our specialist customer
remediation team
Management of
operational risk
review and improvement of
our operational risk framework
Executive Committee members have been assigned ‘ownership’
of each focus area and they are responsible for monitoring
performance.
We have established a Royal Commission and Self-Assessment
Oversight Group to oversee an integrated response to the Royal
Commission and Self-Assessment.
Further details of our self-assessment can be found on bluenotes
at anz.com.
During this year we have continued to make changes to our culture,
governance and accountability mechanisms to help improve customer
outcomes and restore community trust.
ANZ 2019 ANNUAL REPORT
16

Our
customers
We seek to treat our customers fairly and responsibly,
providing them with suitable and appropriate products and
services, supported by strong data protection.
We have identified three customer segments where we believe
we can best achieve this: home owners, business owners and
companies that move capital and goods across the region.
Providing suitable products and services
We have contacted more than 1 million of our retail and commercial
customers, including customers who:
•are in receipt of eligible Centrelink or Veterans’ Affairs benefits
to offer to help them move to a low-cost, basic bank account.
Since June 2019, we have contacted 128,624 customers (via
email or letters);
•are experiencing persistent credit card debt;
•have Interest Only home loans set to expire within 6 months,
reminding them of the expiry period and notifying them of the
options available at the end of the period;
•have opened an ANZ Access Advantage account within the last
13–16 days, reminding them to credit their account with regular
salary payments; and
•have Progress Saver periodical payment or direct debit due to
expire in the next month to remind them an automated credit
can help them receive bonus interest on their account.
Consistently delivering a positive customer experience enables us to create
value for all of our stakeholders and is critical to our long-term success.
CUSTOMER STORY
Helping customers to get
on top of credit card debt
We have been contacting credit card customers who
are carrying persistent debt
1
on their card to help them pay their debt faster.
Customers have been offered financial education, and the
opportunity to close their card and repay the remaining debt
at a lower interest rate. We have contacted 9,500 customers as
at 30 September 2019.
Earlier this year we contacted John*, a long-term customer
who has held a credit card facility with ANZ since 1976. John
had a balance of $9,500 (on a $10,000 limit) and the entirety of
the balance was on a cash advance interest rate of 21.74% per
annum. John had not transacted on the card since 2016 and
had been making payments only slightly above the minimum
monthly repayment amount.
1.
Where for at least the last 12 months a credit card has over 80% of the credit utilised and the customer has been paying 2–3% of the outstanding balance on average each month.
* Customer name has been changed.
Links to 2019 Group
Performance Framework
We are committed to improving the customer
experience, as highlighted by the implementation of 16
initiatives in Australia in response to the Royal Commission.
There were some challenges during the year including
technology stability issues, and a period of underperformance
in respect of assessment and approval times relative to peers
in home lending. Institutional performance in key customer
satisfaction/relationship strength surveys continued to be a
highlight, along with strong digital engagement with customers.
Refer to our Remuneration Report on pages 66 to 98 for
further details.
Continuing his current repayment behaviour, John would have
taken more than 9 years to pay off the debt – assuming there was
no further spending on the card – accruing at least $12,000 in
interest over that time.
After contacting John and explaining his options, John agreed to
an instalment plan with an interest rate of 7% per annum. This will
enable him to pay off the debt in five years or less, saving more
than $10,000 in interest charges.
This program has been welcomed by many customers,
including John who said, “I wish this had happened a long time
ago ... it’s such a relief.”
17

Home owners
We are committed to fund and facilitate $1 billion of investment
by 2023 to deliver around 3,200 more affordable, secure and
sustainable homes to buy and rent in Australia.
We are developing a housing supply pipeline through direct
engagement with our clients (new and existing), supporting
innovative models to finance new supply. This includes:
•jointly arranging the inaugural bond issue of $315 million for
the Commonwealth’s National Housing Finance and Investment
Corporation (NHFIC), the largest social bond for housing in
Australia; and
•arranging the first wellbeing bonds in New Zealand for Housing
New Zealand Corporation (NZ$500 million and NZ$600 million).
We have also established a Housing Virtual Fund (the Fund)
enabling us to accommodate non-conforming risk aspects of
new housing models. Emerging housing models generally come
with increased risk for the developer, the bank and the consumer,
preventing innovative models from being brought to market at
scale. The Fund ensures that we have a comprehensive internal
review process, allowing us to utilise all of our expertise in
understanding and managing risk.
Support for first home buyers
Our research shows that 64 percent of first home buyers are
uncertain of what to do when it comes to buying their first
property and they want someone they can trust to guide them
through the process.
1
In response, we are improving the skills of
our frontline staff enabling them to provide tailored guidance and
support to first home buyers. We have:
•provided more than 3,300 frontline staff with Home Loan Coach
training across Australia and New Zealand;
•improved our First Home Coach training in Australia – nearly
800 of our frontline staff have completed this training; and
•provided Construction Coach training in New Zealand to
support customers building or renovating a home – more
than 220 frontline staff have received training.
We have also developed the most accurate property price
predictor in the market to support customers in establishing
the value of their future home.
In recognition of our commitment to this
customer segment ANZ has been named
Bank of The Year for First Home Buyers by
Canstar for three years running (2017–2019).
Industry insights
During the year we have undertaken significant engagement
with industry stakeholders to ensure that as an organisation we
are directly linked to the housing policy agenda, offering market
expertise to support government, customers and the community
with relevant insights to inform decision-making.
We have entered into a three-year partnership with CoreLogic to
deliver a bi-annual housing affordability report. The report provides
in-depth market analysis of the Australian housing market for both
buyers and renters.
1.
ANZ Home Buying Research, Prescience, May 2015.
Making homes healthier in New Zealand
According to research by the Building Research Association
of New Zealand, about half of the homes built are unsuitable
for the climate – they are not adequately insulated, have
insufficient heating and are damp with visible signs of mould.
“As New Zealand’s biggest home lender, housing is one area
where we want to make a difference”, says Antonia Watson,
Acting Chief Executive Officer, New Zealand.
We have set aside NZ$100 million so our customers can enjoy
warmer, healthier homes while potentially also keeping energy
costs down. Last year we began offering our home loan
customers (both owner-occupiers and investors) an interest-
free home loan top-up (up to NZ$5,000). More than 1,800
interest-free home loans (to the value of NZ$6.3 million) have
been drawn down as at 30 September 2019. The top-up offer
was also extended to heat pumps in July 2019.
In addition, in April 2019 we launched a Healthy Home Loan
Package, that includes discounts to standard home loan rates,
as well as fee waivers across a range of accounts, for customers
buying, building or renovating a home to 6 Homestar or above,
in New Zealand.
Thirty four customers are now on the package (funds under
management of NZ$11.7 million) and we are working to
identify existing eligible customers to transition them across
to the package.
Not only are there health benefits associated with more energy
efficient homes but occupants may also have more disposable
income because they are paying lower power bills.
“When every dollar counts, a lower home loan rate might
swing the decision to go the extra mile on health and
sustainability measures.” says Antonia.
Our customers continued
ANZ 2019 ANNUAL REPORT
18

Customer remediation
Fair, responsible and efficient customer remediation is a focus for the
bank, with significant investment being made across our Australia,
Wealth and New Zealand Divisions.
We are currently resolving identified fee or interest discrepancies
with over 3.4 million Retail and Commercial customers. To date our
Australian Retail and Commercial Responsible Banking team has
remediated over one million customer accounts
5
and issued refunds
of around $62 million.
In Wealth, the team has completed the first stage of a review to
identify instances of inappropriate advice to customers. Over 7,000
advice cases, spanning more than a decade, were reviewed. In
addition, the majority of remediation cases relating to ANZ Financial
Planning ‘fee for no service’ have now been remediated.
Wealth has remediated nearly
26,000 cases in total and made
payments of $95.2m as at
30 September 2019.
Over the 12 months to 30 September 2019, the Responsible Banking
team has increased the number of dedicated remediation resources
working on large scale customer remediation matters from around
150 to around 275 people.
Similarly, the team within Wealth has expanded from around 120 to
around 170 over the same time period and is projected to increase
to around 200 by December 2019. Our New Zealand business also
has almost 60 dedicated remediation resources. These additional
resources, together with an increase in infrastructure and capability,
are enabling us to refund impacted customers in a scalable and
repeatable way.
More than 500 people throughout the Australian Retail and
Commercial business are also working on a number of smaller
customer remediations, fixes and investigations.
We are delivering an ongoing education program to share ‘lessons
learnt’ and to highlight the impacts on customers when we fail
to get it right. In creating a collective understanding of the root
causes of our existing remediations, we continue to build a shared
accountability for the prevention of future issues.
$
1.
Roy Morgan Research Single Source, Australian population aged 14+, Main Financial
Institution, six month rolling average to Sep’19. Ranking based on the four major
Australian banks.
2.
DBM Business Financial Services Monitor. Base: Commercial Banking (<$100 million annual
turnover) Main Financial Institution customers. Six month average to Sep’19. Ranking
based on the four major Australian banks.
3.
Retail Market Monitor, Camorra Research, six month rolling average to Sep’19.
4.
Business Finance Monitor, TNS Kantar Research. Base: Commercial ($3 million – $150
million annual turnover) and Agricultural (>500K annual turnover) customers. Four quarter
rolling average to Q3’19.
5.
In certain instances ANZ makes:
• a community service payment in lieu of a payment to a customer account. In 2019
charity payments were made for ~111,000 accounts totalling ~$355,000.
• the customer payment via cheque. In 2019 cheques were issued for ~178,000 accounts
totalling ~$11,088,000. A proportion of these cheques remain unpresented.
Customer experience
One way in which we measure the experience of our customers
is through Net Promoter Score. Net Promotor Score enables us to
gauge whether we are meeting customer needs and expectations
and how we are performing relative to peers. It is measured by
asking customers how likely they are to recommend ANZ (on a 0–10
scale) and is calculated by subtracting the percentage of detractors
(those who give a score of 0–6) from the percentage of promoters
(those who give a 9 or 10).
With respect to our Australian and New Zealand Retail and
Commercial customers we failed to meet our target to improve
our Net Promoter Score relative to peers. Our Institutional ranking
remains at number one in both Australia and New Zealand.
Managing customer complaints
Listening to our customers and responding to their complaints
in a timely, transparent and fair way is key to maintaining their
confidence and trust in us.
This year, both the Australian Financial Complaints Authority and
the Australian Securities and Investments Commission identified the
need for significant improvement in our internal dispute resolution.
High complaint volumes and lengthy delays in resolution were
highlighted. We have established a detailed action plan which
sets out the changes we need to make to improve our customers’
experience and we will keep stakeholders informed of our progress.
For further information on our approach to complaints handling,
complaint volumes and the role of our Customer Advocate refer
to our 2019 ESG Supplement available at anz.com/cs in December.
Australia
Retail: ranking 4th
1

(down from 3rd at end of 2018)
Commercial: ranking 3rd
2

(no change from 2018)
New Zealand
Retail: ranking 4th
3

(no change from 2018)
Commercial and Agricultural:
ranking of 5th
4

(no change from 2018)
Net promoter score
19

Our customers continued
The benefits of open banking
Open banking regulation came into force at the start of July in
Australia, supporting the sharing of generic product data with
third parties, with the aim of making it easier for customers to
compare products. The sharing of customer specific data will
start in early 2020. This will enable consumers to access data
about themselves (personal, account and transaction data) and
share it with accredited third parties of their choice.
At the heart of open banking is trust in how open banking
participants manage their customers’ data. We will continue
to invest in our customers’ security and privacy, and apply our
ethical principles to all data use and the outcomes that result.
Our Data Ethics Principles put our customers’ interests first in
how their data is collected, used and disclosed; and provide
mechanisms for transparency and choice to help our customers
understand and control their personal information.
We will uphold these principles as the open banking regime
begins, ensuring our customers can request the sharing of their
data, while also maintaining control over where and how their
data is used.
“The emerging Australian data economy, sustained by customer-
driven data sharing frameworks, should give customers more
control in sharing information with confidence. Also, it should
create opportunities for business to leverage their expertise,
experience and technology into new areas to serve their
customers. Businesses that engage with the data sector will
have the opportunity to offer better services, and a more precise
product to meet customer needs. Their customers should have the
opportunity to benefit from enhanced choice and convenience.
The efficient use of data, in a secure ecosystem with a strong
governance structure, could be tremendously beneficial for
businesses and customers alike.”
Scott Farrell, Chair of Open Banking Review
We are implementing digital solutions to assist our customers to
improve their financial wellbeing. We have developed new features
in the ANZ app to help our customers work towards their financial
objectives by setting and tracking goals. Currently in the pilot phase,
new features include data-driven ‘nudges’ (messages) to customers
via the app, with milestones and tips to help them meet their
savings goals.
Of the 2.8 million customers
using our ANZ app, 36 percent
are using mobile banking only –
up 30 percent this year
With increasing digitalisation, a strong
cyber security capability is critical
As our customers choose to move their banking to digital platforms
we are focused on safeguarding their money and personal
information. We have invested heavily in our cyber security
capability, and are in a strong position to keep our systems, data and
customers safe from the increasing pace, scale and sophistication of
cyber-attacks.
Recognising humans play a significant role in the security
‘ecosystem’, we are delivering comprehensive education programs
for employees and customers, simplifying cyber security, and
making it easier to understand and implement. This year we have
developed workshops to help small businesses stay safe online,
raised awareness of online scams and reached millions of customers
through our campaign to help them protect their ‘virtual’ valuables.
We are also helping to develop the cyber security curriculum for
Australian high schools to ‘grow’ the next generation of cyber
security workers.
Promoting a culture where security is everyone’s business means we
are better placed to protect our systems, data and our customers,
and can actively contribute to digital innovation and the economic
opportunities a secure online world offers.
Biometric authentication protecting
customer payments in Australia
and New Zealand
ANZ was the first Australian bank to enable its
customers to make high value payments (up to
$25,000) via the ANZ app using their voice. Our
voice ID technology allows customers to verify
their identity using their voice, rather than a PIN or password. While
still an emerging technology, we currently have almost one million
customers in Australia registered for voice ID. To date there have
been no instances of fraud from a voice biometric breach.
Supplementary disclosures
Refer to our 2019 ESG Supplement available at anz.com/cs
in December for further disclosures, including historical
data tables.
Offering customers more convenient and
engaging banking solutions
Fifteen years ago more than half of all banking transactions occurred
within the branch network; today, that number is down to less than
10 percent. Of the 2.8 million customers using our ANZ app, 36
percent are using mobile banking only – up 30 percent this year,
demonstrating the significant shift in how customers are choosing
to engage with us.
This digital banking evolution brings both opportunities and
challenges for ANZ. We are tailoring our products and services
to the changing habits of our customers, who have told us they
want more flexibility in their banking. Our digital technology now
makes it possible for our customers to serve themselves, anywhere,
anytime and we are adapting the way we operate to accommodate
this. Peak usage on the ANZ app is between 4–6pm, and even
during our quietest time between 12–2am we are serving almost
100,000 customers.
ANZ 2019 ANNUAL REPORT
20

Australia Retail and Commercial
External operating environment
In Australia credit growth is slowing, revenue
growth is negligible, interest rates are at
record lows and regulation has increased
substantially.
Competition too is intense, particularly in the
home loan market. New competitors built to
make the most of digital innovations to serve
customers are also having an impact.
The housing market activity is improving off
the back of the lower interest rates, and the
removal of investor and interest only lending
caps, but it is too soon to call a recovery.
Businesses remain cautious and are taking a
‘wait and see’ approach with the economy.
Investment continues to be below long-
term averages.
Business strategy outcomes
Momentum has returned in home lending
with applications up 34% in the second
half of 2019 (compared with the first half ),
through improving turnaround times
and greater clarity on lending policies,
adjustments to lending caps and a major
marketing campaign to restore confidence
across our distribution channels. We
are confident this will flow through to
settlements.
More than half of our customers now bank
digitally and the ANZ App has 2.8 million
users making more than $380 million worth
of transactions every day.
Our ANZ Business Growth Program
has created more than 1,300 jobs and
participants have increased their revenue
by 374% and profit by 461%.
Through our network and insights, our
customers continue to succeed in Asia
and more than 200 have joined us for
delegations to China, Hong Kong,
Singapore, Vietnam and Japan.
Performance
1
2019 was a challenging year for Australia Retail
and Commercial, impacted by continued
margin erosion, lower average lending
volumes (a combination of the external
environment and ANZ conservative business
settings) and reduction in fee Income.
The home loan portfolio, down 3%, was
affected by slowing system credit growth,
competition and more conservative home
loan origination risk settings. Commercial
Lending, also down 2%, was driven by lower
volumes in Small Business Banking.
Customers grew by more than 130,000 in the
year to 6.4 million, with 3.6 million customers
now digitally active. Deposits also increased
in 2019 to $208 billion, with Retail deposits
up 1% and Commercial up 5%.
Productivity initiatives, including workforce and
branch optimisation delivered cost savings and
offset increased investment spending.
Financial Performance for Australia Retail
and Commercial is provided within the Our
Performance section on pages 52 to 65.
1.
Commercial includes Small Business Banking,
Business Banking and Private Bank
“ While this year has had its challenges, I’m pleased
our recent actions have restored momentum in our
home loans business and with the progress we’ve
made in fixing the failures of the past.”
Mark Hand – Group Executive Australia Retail and Commercial Banking
Our divisions
Financial Performance
Cash continuing
1
Cash profit ($m)
Return on Avg. RWAs (%)
Net Loans & Advances ($b)
2018
3,626
2018
341
2019
3,195
2019
332
Customer Deposits ($b)
2018
2.2
2018
203
2019
2.0
2019
208
% of Group Profit FY19
% of Group Net Loans & Advances
49%
54%
1.
On a cash profit (continuing operations) basis. Excludes non-core items included in statutory profit and discontinued operations included in cash profit. It is provided to assist readers in
understanding the result of the ongoing business activities of the Group. For further information on adjustments between statutory and cash profit refer to page 53.
21

Financial Performance
Cash continuing
1
External operating environment
Market conditions have been challenging,
particularly in the second half of this financial
year. This is due to a combination of record
low interest rates, high liquidity, low volatility,
and heightened geopolitical tensions.
China has been adapting to a slowing
economy, while the inverted US Treasury
yield curve sparked fears of a potential
economic recession in the world’s largest
economy.
Shifts in trade and supply chains due to
the US-China trade war have had a positive
impact on some markets, particularly in
South-East Asia, where ANZ has a presence.
ANZ is also well prepared for Brexit with our
European branch network and licensing
arrangements meaning customers do
not need to make changes or open new
accounts in order to continue to bank with
us in Europe.
Business strategy outcomes
Institutional is focused on customers who
value us, working within clear priority sectors,
sharpening our geographic focus, simplifying
products and technology and driving
structural efficiencies.
Following our decision to exit lower
returning and non-core customer
relationships, Institutional is now in the
process of pivoting to responsible and
disciplined growth. We have also maintained
our focus on reducing costs and capital
efficiency.
This has delivered leading market positions
across key geographies (#1 Australia & NZ,
#5 Asia) and #1 in overall relationship quality
for the second year running.
The sale of Retail, Commercial and SME in
Papua New Guinea completed in September
2019 has enabled the business to focus on
Institutional banking. The sale of our stake
in Royal Bank in Cambodia (completed in
July 2019) was also an important step in our
simplification strategy.
Performance
Institutional continued to deliver the benefits
of a simpler and more disciplined business
in 2019, reporting an increase in Cash Profit
and growth in the balance sheet. Net Loans
and Advances were up 10% while customer
deposits grew 6%.
Geographically, Australia, New Zealand and
Asia Pacific, Europe & America all delivered
profit growth, supported by strong customer
revenue growth.
Transaction Banking and Loans and
Specialised Finance both increased revenue
in 2019, up 8% and 7% respectively. Markets
revenue was down marginally due to lower
Balance Sheet revenue, while Franchise
Sales and Franchise Trading both delivered
stronger revenue outcomes.
Focus on productivity contributed to another
year of cost reductions, a result of lower full
time equivalent staff, decrease in software
amortisation and property efficiencies.
Credit charges remained below long run trends.
Financial Performance for Institutional is
provided within the Our Performance section
on pages 52 to 65.
“ Institutional is smaller but better – we’re in the right
markets, with the right customers and at the right
returns. Our focused strategy is delivering results, and
we’re staying vigilant in managing risks relating to
geopolitics, global trade and consumer retail trends.”
Mark Whelan – Group Executive Institutional
Institutional
Our divisions continued
Cash profit ($m)
Return on Avg. RWAs (%)
Net Loans & Advances ($b)
2018
1,480
2018
150
2019
1,828
2019
165
Customer Deposits ($b)
2018
0.9
2018
206
2019
1.1
2019
217
% of Group Profit FY19
% of Group Net Loans & Advances
28%
27%
1.
On a cash profit (continuing operations) basis. Excludes non-core items included in statutory profit and discontinued operations included in cash profit. It is provided to assist readers in
understanding the result of the ongoing business activities of the Group. For further information on adjustments between statutory and cash profit refer to page 53.
ANZ 2019 ANNUAL REPORT
22

External operating environment
The New Zealand economy remains sound
with commodity prices remaining solid,
population growth still strong and continued
low unemployment.
GDP growth, however, has slowed. Business
and consumer confidence is down due to
uncertainty in the international economic
outlook. This has resulted in lower business
investment and consumer spending. That
has meant the historically low official cash
rate environment has not provided the
economic stimulus many had hoped for.
The level of regulatory scrutiny is increasing
on all financial services entities in New
Zealand and this is increasing compliance
costs for the business.
The proposed RBNZ capital changes – which
are intended to create a stronger and more
robust banking industry and are expected to
be made public in December 2019.
Business strategy outcomes
We continued to progress our strategy of
simplifying the business and improving
customer experience.
The OnePath Life insurance business sale
was completed in November 2018, as well
as other non-core ANZ New Zealand assets
Paymark and ANZ Securities.
Frontline sales incentives were removed in
2019 to give confidence to customers that
any products and services they purchased
were sold to them for the right reasons.
In striving to be the best bank to help Kiwis
own homes, we developed a market leading
proposition that includes a “healthy homes”
package to better insulate and heat houses.
The Commercial and Agri, and Institutional
parts of ANZ New Zealand had a major
focus on environmental initiatives to assist
customers in the economy.
Within the Wealth unit, superannuation
product Kiwisaver continued its strong
growth, surpassing $14.5 billion in funds
under management.
Performance
Our New Zealand business maintained a
leading position in core banking products
this year, with ~31% share of mortgages
(August 2019), ~34% share of household
deposits (August 2019) and ~24% share of
KiwiSaver (June 2019).
While the operating conditions were more
challenging, Retail and Commercial both
delivered balance sheet growth in 2019.
Retail net loans and advances were up
4% (driven by Home Loan growth), and
Commercial lending up 2%. Revenue for the
division was however impacted by margin
pressure from lower deposit margins and
home loan mix changes.
Customer deposits grew 3% and customer
numbers grew modestly to 2.4 million, of
which 1.5 million customers are digitally
active. Digital sales were up ~4% and now
account for ~ 30% of all retail sales.
Focus in recent years on more conservative
lending standards, together with a benign
credit environment, contributed to provision
charges remaining low this year.
Financial Performance for New Zealand is
provided within the Our Performance section
on pages 52 to 65.
New Zealand
“ While it’s been a difficult year reputationally for
the organisation, the business has stayed strong,
with staff continuing to focus on doing the right
thing by customers.”
Antonia Watson – Acting Chief Executive Officer New Zealand
Cash profit (NZDm)
Return on Avg. RWAs (%)
Net Loans & Advances (NZDb)
2018
1,655
2018
122
2019
1,479
2019
126
Customer Deposits (NZDb)
2018
2.7
2018
87
2019
2.4
2019
90
% of Group Profit FY19
% of Group Net Loans & Advances
22%
19%
Financial Performance
Cash continuing
1
1.
On a cash profit (continuing operations) basis. Excludes non-core items included in statutory profit and discontinued operations included in cash profit. It is provided to assist readers in
understanding the result of the ongoing business activities of the Group. For further information on adjustments between statutory and cash profit refer to page 53.
23

Our
people
We are developing the culture, capabilities and behaviours we
need to live our purpose and values and deliver our strategy.
Links to 2019 Group
Performance Framework
Highlights during the year include: strengthening
our Accountability and Consequence Framework; evolving
our approach to measurement and governance of culture
initiatives; redesigning and launching changes to how
we manage and reward our people; solid progress in the
investment in key skills for our future; launch of a digital
learning platform; and a record level engagement survey result.
Refer to our Remuneration Report on pages 66 to 98 for
further detail.
Culture
Our desired culture is underpinned by our purpose, values, and
Code of Conduct, as well as being focused on delivering great
customer outcomes, making things simpler and always learning.
Both a strong risk mindset and behaviours are embedded in our
values, Code of Conduct and performance expectations, and we are
committed to providing a safe environment in which all employees
are empowered to ‘speak up’ and raise ideas or issues and concerns.
We seek to understand and improve our culture on an ongoing
basis and are continually improving the way we track and measure
our progress. One way we do this is through our Enterprise Culture
Steering Group, whose membership includes the CEO and other
members of the Executive Committee, which meets twice a year and
provides an opportunity for each Executive to present the cultural
strengths and development areas of their business, and actions
taken and planned to shift the culture.
Culture assessments
We are supported by a team of specialists in our Internal Audit
group who undertake cultural assessments within the bank. These
assessments assist our leaders to understand the culture within the
business, how culture impacts the way we support customers and
where culture could expose us to risk.
The assessments focus on identifying cultural themes, underlying
factors and their impact to support the business to drive sustainable
change toward ANZ’s desired culture. They incorporate a blend of
quantitative data, primarily through an employee survey, as well as
qualitative data through employee focus groups.
More than 20,000 employees
have participated in culture
assessments (since 2016)
Once an assessment is completed, the implementation of actions
to address cultural challenges is monitored, and the effectiveness of
those actions in shifting towards the desired culture is reviewed.
Our focus is on the following priorities:
How We Creat Value Icons
Stakeholder icons
Most material issues iconsCustomer story icon
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initiatives in support of our
desired culture;
How We Creat Value Icons
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strengthening our Risk Culture, including
strengthening our Accountability and
Consequence Framework;
How We Creat Value Icons
Stakeholder icons
Most material issues iconsCustomer story icon
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changing the way in which we reward
our people;
How We Creat Value Icons
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preparing our people for the future,
ensuring we have the critical
capabilities to succeed; and
How We Creat Value Icons
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New icons/infographics
creating a diverse and inclusive
workplace and building our people’s
resilience and wellbeing.
ANZ 2019 ANNUAL REPORT
24

Left to right: ANZ employees,
Sewmee Samarasinghe and Kate London
Strengthening our risk culture
During 2019 we have strengthened the way we deal with risk events
through an enhanced Accountability and Consequence Framework,
which is applicable to all of our people.
New Accountability and Consequence Principles set out when and
how an accountability review will be conducted following a material
risk or audit event, define the various categories of accountability
(e.g. direct, indirect, collective) and provide guidelines for the
relevant Group Executive to consider in determining appropriate
consequences. Appropriate consequences should reflect the
severity of the issue and may include, for example, one or more of
the following: coaching, counselling, formal warnings, impacts to
performance and remuneration outcomes, impacts on promotion,
application of malus and ultimately termination of employment for
the most serious issues.
The Consequence Review Group (CRG), chaired by the CEO,
oversees the implementation and ongoing effectiveness of the
Accountability and Consequence Framework, being cognisant of
its impact on the culture of ANZ. The CRG reviews material risk and
audit events and associated accountability and consequences.
Our ongoing focus on accountability, consequences and driving
a strong risk culture supports our customer commitment that
when things go wrong, we fix them quickly and consistently hold
executives to account where appropriate.
‘Speak up’ culture
We also seek to support a strong ‘speak up’ culture and ensure
managers recognise exemplary risk and audit behaviours. The focus
on ‘speak up’ is being supported through our New Ways of Leading
(NWOL) that are aligned with our purpose and values. NWOL
focuses on five behaviours relevant for all employees and imperative
for people leaders: be curious, create shared clarity, empower
people, connect with empathy and grow people selflessly. We are
incorporating culture into leader-led team activities to facilitate
open, purposeful conversations about our culture and practices
and create a psychologically safe environment for employees to
‘speak up’. We continue to promote and raise employee awareness
of the various ways that employees can ‘speak up’ including through
initiatives such as the Whistleblower Awareness Week.
We have 39,060 full-time
equivalent employees
Application of consequences
In 2019 across the Group, 151 employees were terminated for
breaches of our Code of Conduct. A further 516 employees received
a formal disciplinary outcome, with managers required to apply
impacts to their performance and remuneration outcomes as part of
the annual review process.
At the senior leadership level, 30 current or former senior leaders
(Senior Executives, Executives and senior managers) had a formal
consequence applied in 2019 for Code of Conduct breaches or
findings of accountability for a material event, or otherwise left the
bank after an investigation had been initiated. The 30 employees
represent ~ 1% of the senior leader population. The consequences
applied included warnings, impacts to performance and/or
remuneration outcomes and cessation of employment.
Senior leader consequences in 2019
1
Performance and remuneration consequence23
Formal warnings12
No longer employed7
1.
Individuals are included under all categories that are relevant meaning one individual
may be reflected in multiple categories.
Changes to remuneration
A key focus this year has been the redesign of the way we
financially reward and manage the performance of our people
to better support our purpose, culture and values. The changes
include rebalancing the way we pay our people so that variable
remuneration is a smaller part of take home pay. For the majority
of employees, variable remuneration will be based on Group
performance only (i.e. no individual bonuses). These changes will
apply from financial year 2020, and are more closely aligned to our
desired culture, with increased focus on collaboration and team
performance, as well as individual growth and development.
We are implementing the recommendations from Stephen
Sedgwick’s ‘Retail Banking Remuneration Review’, which is focused
on strengthening the alignment of retail bank incentives, sales
practices and good customer outcomes. Recommendations that
ANZ is delivering independently are 90% complete and will be
fully implemented well ahead of the October 2020 deadline. We
continue to work with industry to progress the recommendations
for third parties and principles to underpin customer metrics.
Management provides regular updates to the Board Human
Resources Committee on progress.
25

Building workforce capability
We are creating an environment where our people can learn
and grow every day, helping us to build organisational agility
and capability to remain competitive.
We are building the capabilities of our leaders through the
introduction of a new leadership feedback survey giving our
leaders tangible and actionable feedback on their strengths
and development opportunities. We continue to track the
demonstration of our NWOL behaviours and our people are
telling us through the leadership and engagement surveys that
they are seeing their leaders demonstrating improvements across
all five behaviours.
Employee engagement: 77%
(up from 73% in 2018)
1
In addition, we are building the capabilities critical to delivering
our strategy and to future-proofing our workforce, with a focus on
investing in our pipeline of data and engineering talent with new
roles and development opportunities in data analysis and science.
During the year we launched a new social learning platform – Our
Way of Learning (OWL). Combining the functionality of a search
engine and a social learning network, OWL offers employees free
access to internal subject matter experts at ANZ and external
content providers and user-generated content. OWL can be
accessed by our people anywhere, anytime, and on any device.
In 2019 our people undertook almost 1.5 million hours of learning
to increase their skills and capabilities, including self-directed
learning through OWL.
Our people continued
?
Diversity, inclusion and wellbeing
We are making progress on our priority to build an engaged, diverse
and inclusive workforce. We want our workforce to reflect the
communities we serve and believe that leveraging the diversity of our
people will allow us to innovate and improve customer experience.
This year our efforts have focused on enabling social and economic
participation through providing employment opportunities for
people from under-represented groups (including Aboriginal and
Torres Strait Islanders, people with disability and refugees). Overall,
we are broadly on-track to meet our target to recruit >1,000 people
from these groups by the end of FY20, reaching 734 since 2016.
Our Spectrum Program is designed to offer employment
opportunities to the autism community (sometimes described as
part of the neurodivergent community) to build fulfilling careers
in areas such as cyber security, coding and testing. This year we
welcomed additional participants and nearly half of our original
cohort moved into permanent ongoing employment with ANZ.
734 people employed from
under-represented groups
(since 2016)
We recognise that addressing the barriers preventing women
from being fairly represented in senior roles is the key to closing
our gender pay gap. We have a target in place to increase the
representation of Women in Leadership to 34.1%
2
by the end of the
financial year 2020. This year representation has increased by 0.5%
(up from 32% as at September 2018). Our progress is monitored
monthly by the CEO and an Executive Committee.
A summary of our policy position on Diversity and Inclusion can
be found at anz.com/corporate governance.
We continue to make strong progress in supporting our people’s
safety and wellbeing. Our Health and Safety policy, and associated
programs, ensure that we provide an environment that enables
employees to participate fully in the workplace and perform at their
best. This year we have increased our focus on employee wellbeing,
encompassing the areas of mental, physical, social and financial
wellbeing.
We also provide opportunities for our people to contribute to the
communities in which they live and work through our giving and
volunteering programs. For further detail see page 30.
1.
Against a target of improving by 6% to 80% by 2020 (against a 2016 baseline score of 74%).
2.
Measures representation at the Senior Manager, Executive and Senior Executive levels. Includes all employees regardless of leave status but not contractors (who are included in FTE).
Supplementary disclosures
Refer to our Remuneration Report on pages 66 to 98 for
further detail.
Refer to our 2019 ESG Supplement available at anz.com/cs
in December for further disclosures, including historical
data tables.
ANZ 2019 ANNUAL REPORT
26

Since it was founded in 2009 it has helped more than 1,500 young
people build stability and health back into their lives, while gaining
work experience and hospitality qualifications from regular training
across STREAT’s businesses.
“We have seven cafes, a bakery, a coffee roastery and a daily
catering business and we generate 80 percent of our own income
through these businesses,” says Bec Scott OAM, STREAT co-founder
and Chief Executive Officer.
STREAT’s newest location is a café housed inside ANZ’s campus
at 839 Collins Street in Melbourne.
Our decision to partner with a social enterprise was a deliberate
and considered one. With the opening of our new building this
year there was an opportunity to look at the tendering process
differently and select a partner that aligned directly with our own
values and purpose.
Having a large group of our employees within such close quarters
of the café helps the young people with their work experience.
“STREAT works to create healthy people and a healthy planet.
When you buy a coffee from us you’re creating training and
employment opportunities for marginalised young Victorians,
helping create change in coffee farming communities around the
world and saving tonnes of disposable paper cups going to landfill
each year.” says Bec.
Trainees completing STREAT’s six month intensive program will
spend two shifts a week at one of STREAT’s cafés. Bec says a strong
rapport is built within the office environment over that time and
corporate staff often ask about the trainees after they graduate.
Left to right: Ryan McDonald – Cafe Operations Manager, STREAT, Bec Scott OAM –
STREAT co-founder and Chief Executive Officer, Elise Bennetts – Chief Relationship
Officer, STREAT
Social enterprise STREAT provides a bridge to employment
for young people experiencing disadvantage.
COMMUNITY STORY
Cafe partnership helping to break
the cycle of disadvantage
Since 2009
STREAT has helped
more than 1,500
young people
27

In 2019
Our community
Strong relationships with our stakeholders and the broader community are
critical to our success. Banking is based on trust and we are working hard to
regain the community’s trust following the Royal Commission.
Our financial inclusion program
partnerships change lives
Saver Plus – developed by Brotherhood of St Laurence
and ANZ in 2003, program participants open an ANZ savings
account, set a savings goal and save towards it regularly over
10 months while also attending MoneyMinded financial
education sessions. On reaching their goal, savings are
matched by ANZ dollar for dollar, up to $500, which must be
spent on education.
Since 2003, Saver Plus has reached over 43,600 lower-income
participants and is expected to enable over $33 million of
private sector funds to be invested in education by 2020.
MoneyMinded – this program supports adults with low
levels of financial literacy and those on lower incomes across
21 markets, including Australia and New Zealand. It is delivered
by community partner organisations in Australia and New
Zealand, and a mix of community organisations and ANZ
employees in Asia and the Pacific.
MoneyBusiness – operating since 2005, MoneyBusiness is
deigned to build the money management skills and confidence
of Aboriginal and Torres Strait Islanders. In that time it has
reached over 79,500 participants and has been delivered in
over 320 communities through either Australian Government-
funded service providers or ANZ’s partners.
42.4% of employees
volunteered
We matched employee
donations, collectively
contributing over $2 million
to charitable organisations
Employees
volunteered 134,930
hours to community
organisations
$
Improving financial wellbeing – at the core
of our strategy
Financial wellbeing contributes significantly to overall health
and wellbeing, community connectedness and economic and
social participation.
Over many years we have invested in community programs,
including Saver Plus and MoneyMinded, which have been proven
to be an important part of the financial inclusion story for lower-
income people. These programs have helped to build financial skills
and resilience, develop active savings habits and improve overall
financial wellbeing.
Links to 2019 Group
Performance Framework
Regaining the trust of the community, government
and other key stakeholders remains a major focus – our Reptrak
community sentiment indicator improved over the 12 months
to 58.8 but remains well below pre Royal Commission levels. We
have retained high scores in a number of indices:
•Corporate Confidence Index (CCI)
1
: Score above peer average
•Dow Jones Sustainability Indices (DJSI)
2
: 2019 score of 82
(2018: 83). ANZ returned to global top ten (#10 overall)
Refer to our Remuneration Report on pages 66 to 98 for
further detail.
1.
Corporate Confidence Index (CCI): Outcomes of the CCI are provided to ANZ on a confidential basis.
2.
Dow Jones Sustainability Indices (DJSI): Evaluates the sustainability performance of thousands of companies trading publicly, operated under a strategic partnership between S&P Dow Jones
Indices and RobecoSAM (Sustainable Asset Management).
ANZ 2019 ANNUAL REPORT
28

More than 87,500
people participated
in our MoneyMinded
program in 2019
COMMUNITY STORY
MoneyMinded –
changing attitudes to money
$
Taghrid participated in MoneyMinded through the Brotherhood of
St Laurence’s Stepping Stones program. Stepping Stones is a micro-
enterprise program offered to women who have migrant, refugee or
asylum seeker backgrounds.
Originally from Lebanon, Taghrid arrived in Australia 10 years
ago with her husband and one-year-old daughter. Keen to start
her own business making special occasion cakes she took part
in Stepping Stones, completing MoneyMinded in the process.
MoneyMinded taught her about prioritising her spending and
deciphering between ‘needs and wants’.
She also learned about the value of having ‘emergency money’.
Since completing MoneyMinded Taghrid regularly transfers $50
into a specific savings account, ‘just like paying a bill’. With these
savings she was able to buy a replacement car when hers broke
down – before MoneyMinded she would have been without a
car for several months.
MoneyMinded has also changed her attitude to money. Taghrid is
careful with her money, but she is also finding alternatives so she
and her family are not missing out on enjoying life.
“I’m not cutting anything, I’m not suffering. But at the same time,
if I need something, I have money to buy it in a different way. I cut
my coffee, but I enrolled in a gym,” she said.
Taghrid has clear financial goals now too – a short-term goal of
saving for materials for her business and a longer-term goal for her
family to buy a home.
Image: MoneyMinded participant Taghrid
29

Our community continued
Community investment
It is important that we are a part of the communities in which we
operate, and we provide many opportunities for our people to
get involved through our community programs – volunteering,
funding and participating in community projects, or donating
through workplace giving.
The strength of our relationships with partners in the not-for-profit
sector is key to our ability to support the delivery of much needed
services to the community. Many of our partners work in areas
aligned to our priority areas of financial wellbeing, housing and
environmental sustainability.
$142.2 million in
community investment
1
Workplace giving
Our workplace giving program enables employees in Australia
to make contributions to around 30 charity partners through
regular pre-tax payroll deductions. This year we introduced
‘double matching’ – for every dollar donated by an employee
(up to $5,000 per employee in a tax year) through the program,
ANZ donates two dollars.
Our employees in New Zealand and Fiji can also donate through
payroll to their respective staff foundations (charitable trusts that
provide small grants) and ANZ double matches donations.
Volunteering
Our Volunteer Leave Policy, which applies to permanent, regular
and fixed-term employees provides for at least one day of paid
volunteer leave each year.
Supplementary disclosures
Refer to our 2019 ESG Supplement available at anz.com/cs
in December for further disclosures, including historical
data tables.
Public policy debate
We seek to contribute constructively to policy debate and understand
the perspectives of our community’s elected representatives,
policy makers and regulators. We contribute to debate on business,
economic, social and environmental issues affecting our customers
and shareholders.
We work in a collaborative and open way as members of associations
that have similar interests and approaches to ours.
In 2019 our key membership payments were:
Australian Banking Association $4,045,653
Business Council of Australia $93,500
New Zealand Bankers’ Association (NZD) $294,979
Business New Zealand (NZD) $40,250
Payment to the Australian Banking Association includes our
annual fee as well as expenditure related to communications
activity, contribution to the establishment of a not-for-profit Debt
Repayment Service, industry initiatives in response to the Royal
Commission’s work, and industry reform activity such as the new
Banking Code of Practice.
Public policy advocacy
We understand that some of our stakeholders are particularly
interested in positions we hold on issues such as data security,
privacy and climate change and our membership of industry
associations that undertake advocacy on these issues.
It is not the role of any association to represent solely ANZ’s,
nor any other single member’s view. It is also not possible for
industry associations to obtain a consensus on every issue. There
is sometimes disagreement amongst members about the final
positions taken by industry associations and even if we do not
agree with it, we will participate in discussions. From time to time,
we may take positions on certain matters not supported by the
relevant industry association. For example, ANZ was the first major
bank to support a ‘last resort’ compensation scheme for victims of
misconduct. Such a scheme is now public policy.
We place high importance on the ability to hold constructive
dialogue within an association’s membership and we expect industry
associations to be receptive to member feedback regarding their
lobbying or advocacy approaches.
1.
Figure includes forgone revenue of $109 million, being the cost of providing low or fee free accounts to a range of customers such as government benefit recipients, not for profit
organisations and students.
ANZ 2019 ANNUAL REPORT
30

Well received by investors, the bonds – a A$315 million social bond
for NHFIC and two wellbeing bonds for HNZ (NZ$500 million and
NZ$600 million) – set benchmarks as the first ever capital markets
issue for NHFIC and the first wellbeing bonds for HNZ.
A relatively new type of financing, social bonds are structured so
the proceeds fund a social purpose. In this case, owning a NHFIC
or HNZ bond is an indirect investment into Australia and New
Zealand’s social and affordable housing sector. The return is based
on the credit-worthiness of the borrower who is responsible for
directing the financing to social causes, with an obligation to
report accordingly.
Access to housing has a huge impact on people’s ability to thrive
socially and economically, as well as to feel secure and be part of
a local community.
According to ANZ CEO Shayne Elliott, “One of the areas in which
we can impact the community is in the area of housing. This is not
about charitable works, it’s about bringing the full force of ANZ,
one of the largest financial institutions in the country to bear; to
have an impact and to shape the world for good.”
Partnering with NHFIC and HNZ allowed ANZ to join forces and
draw on each organisation’s expertise in order to deliver better
outcomes for a range of stakeholders.
Left to right: Nathan Dal Bon – Chief Executive Officer, National Housing Finance and
Investment Corporation, Caryn Kakas – Head of Housing Strategy, Group Strategy,
ANZ and Tessa Dann – Associate Director, Sustainable Finance, ANZ.
This year ANZ arranged bonds for both Australia’s National Housing Finance and
Investment Corporation (NHFIC) and Housing New Zealand Corporation (HNZ),
aimed at increasing access and availability of social and affordable housing on
both sides of the Tasman.
CUSTOMER STORY
Improving access to social and affordable
housing for those most in need
A relatively new
type of financing,
social bonds are
structured so the
proceeds fund a
social purpose
31

Corporate Governance Framework

Digital Business
and Technology
Committee
Nomination and
Board Operations
Committee
Ethics, Environment,
Social and Governance
Committee
Human Resources
Committee
Audit
Committee
Risk
Committee
BOARD RESERVED POWERS AND DELEGATION OF AUTHORITY POLICY
CHIEF EXECUTIVE OFFICER
SHAREHOLDERS
BOARD OF DIRECTORS
GROUP EXECUTIVE COMMITTEE
Governance
Our sced OuupOn oimvog
32

ANZ’s strong governance framework provides a solid structure for
effective and responsible decision making within the organisation.
The Board is responsible for the oversight of ANZ and its sound and
prudent management, with specific duties as set out in its Charter
available at anz.com/corporategovernance
There are six principal Board Committees – the Audit Committee,
the Ethics, Environment, Social and Governance Committee, the
Risk Committee, the Human Resources Committee, the Digital
Business and Technology Committee and the Nomination and Board
Operations Committee.
Each Committee has its own Charter setting out its roles and
responsibilities. At management level, the Group Executive
Committee comprises ANZ’s most senior executives. There is a
delegations of authority framework that clearly outlines those
matters delegated to the CEO and other members of senior
management.

For further detail on ANZ’s governance framework see our 2019
Corporate Governance Statement available at
anz.com/corporategovernance
Below from left to right
1 RT Hon Sir John Key, GNZM AC Independent Non-Executive Director
2 John Macfarlane Independent Non-Executive Director
3 Paula Dwyer Independent Non-Executive Director
4 David Gonski, AC
Chairman, Independent Non-Executive Director
5 Graeme Liebelt Independent Non-Executive Director
6 Ilana Atlas Independent Non-Executive Director
7 Shayne Elliott Chief Executive Officer, Executive Director
8 Jane Halton, AO PSM Independent Non-Executive Director
Full biography details can be found on our website at
anz.com/directors and on pages 38–42 of this report.
Board of Directors
33

Column A – Indicates the number of meetings the Director was eligible to attend.
Column B – Indicates the number of meetings attended. The Chairman is an ex-officio
member of the Risk, Audit, Human Resources, Ethics, Environment, Social and Governance,
Digital Business and Technology and Nomination and Board Operations Committees.
With respect to Committee meetings, the table above records attendance of Committee
members. Any Director is entitled to attend these meetings and from time to time Directors
attend meetings of Committees of which they are not a member.
1.
The meetings of the Special Committee of the Board, Shares Committee and Committee of
the Board as referred to in the table above include those conducted by written resolution.
2.
The Board meeting Shayne Elliott did not attend was due to his appearance at the Royal
Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
3.
Lee Hsien Yang retired as a Non-Executive Director on 19 December 2018.
Directors’ Meetings
The number of Board, and Board Committee, meetings held during the year and each Director’s attendance at those meetings are set out below:
Board
Risk
Committee
Audit
Committee
Human
Resources
Committee
Ethics,
Environment,
Social and
Governance
Committee
Digital
Business
and
Te chno lo g y
Committee
Nomination
and Board
Operations
Committee
Special
Committee
of the Board
1
Committee
of the Board
1
Shares
Committee
1
ABABABABABABABABABAB
Ilana Atlas
121288665522111111
Paula Dwyer1212888866221122
Shayne Elliott
2
1211332233
David Gonski, AC
1212888866555522332244
Jane Halton, AO PSM1212665555222211
Sir John Key, GNZM AC
12128855442222
Lee Hsien Yang
3
44332211
Graeme Liebelt1212888866222222
John Macfarlane1212888855221111
Governance (continued)
ANZ 2019 ANNUAL REPORT
34

Executive Committee
Below from left to right
1 Maile Carnegie
Group Executive Digital and Australia Transformation
Joined the Executive Committee on 27 June 2016.
2 Farhan Faruqui
Group Executive International
Joined the Executive Committee on 1 February 2016.
3 Gerard Florian
Group Executive Technology
Joined the Executive Committee on 30 January 2017.
4 Alexis George
Deputy Chief Executive Officer and Group Executive Wealth Australia
Joined the Executive Committee on 1 December 2016.
5 Kathryn van der Merwe
Group Executive Talent and Culture
Joined the Executive Committee on 1 May 2017.
6 Kevin Corbally
Group Chief Risk Officer
Joined the Executive Committee on 19 March 2018.
7 Mark Whelan
Group Executive Institutional
Joined the Executive Committee* on 20 October 2014.
8 Antonia Watson
Acting Chief Executive Officer New Zealand
Joined the Executive Committee on 17 June 2019.
9 Shayne Elliott
Chief Executive Officer
(appointed CEO on 1 January 2016).
Joined the Executive Committee* on 1 June 2009.
10 Michelle Jablko
Chief Financial Officer
Joined the Executive Committee on 18 July 2016.
11 Mark Hand
Group Executive Australia Retail and Commercial Banking
Joined the Executive Committee on 15 May 2018.
Full biography details can be found on our website at
anz.com/exco
*previously known as Management Board
35

Board areas of focus in FY19
This year the Board and its Committees have undertaken key
strategic, governance and oversight activities, including:
•Approving the development of a new customer focused
section of the Board agenda, including in relation to:
–Customer satisfaction, complaints and remediation
–Regulatory changes impacting customers
–ANZ’s approach to marketing and specific marketing
initiatives
•Providing oversight of ANZ’s approach to customer
remediation and complaints
•Participating in a detailed review of ANZ’s customer service
lighthouse initiative, including meeting with participating
front line staff
•Reviewing ANZ’s approach to communicating customer
initiatives to the front line
•Conducting annual Board strategy session, focused on the
long-term success of the company and learning lessons from
past experience
•Regularly discussing ANZ’s strategic priorities, including the
refinement and implementation of them, with the Chief
Executive Officer
•Regularly discussing the progress of ANZ’s transformation
of its Australian business and ANZ’s approach to it
•As part of the Board’s visit to New Zealand, receiving detailed
reports covering the entire NZ business and its direction
•Continuing its focus on ANZ’s corporate culture, including
reviewing results and key themes of ANZ’s culture
assessments and ANZ’s staff engagement survey
•Providing oversight of the design and implementation of
ANZ’s redesign and simplification of remuneration and
reward and Accountability and Consequences Frameworks,
including reviewing and providing input into the Australian
Prudential Regulation Authority’s executive remuneration
proposals
•Discussing future disruptive technologies and potential
business impact on, and involvement by, ANZ
STRATEGY AND PURPOSE-LED TRANSFORMATION
CUSTOMER
Governance (continued)
ANZ 2019 ANNUAL REPORT
36

In addition to the regular meetings of the Board held in Melbourne and Sydney, the Board also met in
Wagga Wagga, Perth and Auckland, and went to Hobart, with each trip including customer, staff and
other stakeholder functions, with a distinct focus on engagement matters.
•Reviewing and approving ANZ’s self-assessment of
governance, culture and accountability practices and
subsequent roadmap of remediation activities
•Providing oversight of ANZ’s response to the final report of
the Royal Commission
•Participating in deep dives into how ANZ approaches
compliance with numerous prudential standards
•Creating a new Nomination and Board Operations
Committee, consisting of all Non-Executive Directors, to
focus on the Board’s own composition and operations
•Embedding the increased remit of the Ethics, Environment,
Social and Governance Committee to focus on ESG matters
•Reviewing and implementing improvements to Board
Committee reporting practices on technology related
matters, including in relation to technology stability and
simplicity, cloud and data governance and information and
cyber security.
•Reviewing and endorsing ANZ’s operating and strategic plans
•Regularly discussing business momentum matters
•Regularly discussing merger and acquisitions matters,
including in relation to the progress of the transactions
regarding the sale of its Wealth business
•Providing oversight of capital management matters, including
in relation to proposals from the Reserve Bank of New Zealand,
the Australian Prudential Regulation Authority and current and
future capital management options for ANZ
•Reviewing ANZ’s governance processes for the preparation
of its financial statements
FINANCIAL
GOVERNANCE AND REGULATORY
37

Directors’ Qualifications, Experience
and Special Responsibilities
As at the date of this report, the Board comprises
seven Non-Executive Directors and one Executive
Director, the Chief Executive Officer. Lee Hsien Yang
was a Non-Executive Director from February 2009
until his retirement in December 2018. The names of
the current Directors, together with details of their
qualifications, experience and special responsibilities
are set out below.
Audit Committee
Ethics, Environment, Social and
Governance Committee
Risk Committee
Human Resources Committee
Digital Business and Technology Committee
Nomination and Board Operations Committee
POSITION
Chairman, Independent Non-Executive Director
QUALIFICATIONS
BCom, LLB, FAICD(Life), FCPA
RESPONSIBILITIES
Chairman since 1 May 2014 and a Non-Executive Director
since February 2014. David is an ex officio member of all
Board Committees and Chair of the Ethics, Environment,
Social and Governance Committee and Nomination and Board
Operations Committee.
CAREER
David started his career as a lawyer at Herbert Smith Freehills,
and is now one of Australia’s most respected business leaders
and company directors. He has business experience in
Australia and internationally, and is involved in a broad range
of organisations in the government and education sectors. He
is a leading philanthropist and provides strong community
leadership, particularly in relation to education in Australia.
RELEVANT OTHER DIRECTORSHIPS
•Chairman: The University of New South Wales Foundation
Limited (from 2005, Director from 1999).
•Director: Sydney Airport Limited (from 2018), Lowy Institute for
International Policy (from 2012) and Australian Philanthropic
Services Limited (from 2012).
•Member: Advisory Committee for Optus Limited (from 2013).
•Chancellor: University of New South Wales Council (from 2005).
•President: Art Gallery of NSW Trust (from 2016).
RELEVANT FORMER DIRECTORSHIPS HELD IN LAST
THREE YEARS INCLUDE
Former Chairman: Review to Achieve Education Excellence in
Australian Schools for the Commonwealth of Australia (2017–2018),
Coca-Cola Amatil Limited (2001–2017, Director from 1997) and
Sydney Theatre Company Ltd (2010–2016).
Former Member: ASIC External Advisory Panel (2013–2019)
Age 66 years | Residence Sydney, Australia
David Gonski, AC
CHAIR
MEMBER
Governance (continued)
ANZ 2019 ANNUAL REPORT
38

POSITION
Independent Non-Executive Director
QUALIFICATIONS
BJuris (Hons), LLB (Hons), LLM
RESPONSIBILITIES
Non-Executive Director since September 2014. Ilana is a
member of the Audit Committee, Ethics, Environment, Social
and Governance Committee and Nomination and Board
Operations Committee.
CAREER
Ilana brings a strong financial services background and legal
experience to the Board. Ilana was a partner at law firm Mallesons
Stephen Jaques (now King & Wood Mallesons), where in
addition to her practice in corporate law, she held a number of
management roles in the firm including Executive Partner, People
and Information, and Managing Partner. She also worked at
Westpac for 10 years, where her roles included Group Secretary
and General Counsel and Group Executive, People, where she
was responsible for human resources, corporate affairs and
sustainability. Ilana has a strong commitment to the community,
in particular the arts and education.
RELEVANT OTHER DIRECTORSHIPS
•Chairman: Coca-Cola Amatil Limited (from 2017, Director
from 2011) and Jawun (from 2017, Director from 2014).
•Director: OneMarket Limited (from 2018) and Paul Ramsay
Foundation (from 2017).
•Member: Panel of Adara Partners (from 2015).
RELEVANT FORMER DIRECTORSHIPS HELD IN LAST
THREE YEARS INCLUDE
•Former Chairman: The Bell Shakespeare Company Limited
(2010–2016, Director 2004–2016).
•Former Director: Westfield Corporation Limited (2014–2018),
Human Rights Law Centre Ltd (2012–2017) and Treasury
Corporation of New South Wales (2013–2017).
•Former Fellow: Senate of the University of Sydney (2015–2019)
Age 65 years | Residence Sydney, Australia
POSITION
Chief Executive Officer and Executive Director
QUALIFICATIONS
BCom
RESPONSIBILITIES
Chief Executive Officer and Executive Director since
1 January 2016.
CAREER
Shayne has over 30 years’ experience in banking in Australia
and overseas, in all aspects of the industry. Shayne joined ANZ as
CEO Institutional in June 2009, and was appointed Chief Financial
Officer in 2012.
Prior to joining ANZ, Shayne held senior executive roles at EFG
Hermes, the largest investment bank in the Middle East, which
included Chief Operating Officer. He started his career with
Citibank New Zealand and worked with Citibank/Citigroup for
20 years, holding various senior positions across the UK, USA,
Egypt, Australia and Hong Kong.
Shayne is a Director of the Financial Markets Foundation for
Children and a member of the Australian Banking Association
(which he also Chairs) and the Business Council of Australia.
RELEVANT OTHER DIRECTORSHIPS
•Chairman: Australian Banking Association (from 2017,
Member from 2016).
•Director: ANZ Bank New Zealand Limited (from 2009) and the
Financial Markets Foundation for Children (from 2016).
•Member: Business Council of Australia (from 2016).
Age 55 years | Residence Melbourne, Australia
Shayne Elliott
Ilana Atlas
CHAIR
MEMBER
39

Jane Halton, AO PSM
POSITION
Independent Non-Executive Director
QUALIFICATIONS
BA (Hons) Psychology, FIML, FIPAA, NAM, Hon. FAAHMS,
Hon. FACHSE, Hon. DLitt (UNSW)
RESPONSIBILITIES
Non-Executive Director since October 2016. Jane is a member
of the Human Resources Committee, Ethics, Environment,
Social and Governance Committee and Nomination and Board
Operations Committee.
CAREER
Jane’s 33 year career in the public service includes the positions
of Secretary of the Australian Department of Finance, Secretary
of the Australian Department of Health, Secretary for the
Department of Health and Ageing, and Executive Co-ordinator
(Deputy Secretary) of the Department of the Prime Minister and
Cabinet. She brings to the Board extensive experience in finance,
insurance, risk management, information technology, human
resources, health and ageing and public policy. She also has
significant international experience.
Jane has contributed extensively to community health through
local and international organisations including the World Health
Organisation and National Aboriginal and Torres Strait Islander
Health Council.
RELEVANT OTHER DIRECTORSHIPS
•Chairman: Vault Systems (from 2017), Coalition for Epidemic
Preparedness Innovations (Norway) (from 2018, Member from
2016) and Council on the Ageing Australia (from 2017).
•Director: Clayton Utz (from 2017) and Crown Resorts Limited
(from 2018).
•Member: Executive Board of the Institute of Health Metrics and
Evaluation at the University of Washington (from 2007).
•Adjunct Professor: University of Sydney and University of
Canberra.
•Council Member: Australian Strategic Policy Institute (from 2016).
RELEVANT FORMER DIRECTORSHIPS HELD IN LAST THREE
YEARS INCLUDE
•Former Chairman: OECD Asian Senior Budget Officials Network
(2014–2016).
•Former Public Policy Fellow: ANU Crawford School of Public
Policy (2012–2016).
Age 59 years | Residence Canberra, Australia
POSITION
Independent Non-Executive Director
QUALIFICATIONS
BCom, FCA, SF Fin, FAICD
RESPONSIBILITIES
Non-Executive Director since April 2012. Paula is a member
of the Risk Committee, Human Resources Committee and
Nomination and Board Operations Committee.
CAREER
Paula has extensive experience in financial markets, corporate
finance, risk management and investments, having held
senior executive roles at Calibre Asset Management, Ord
Minnett (now J P Morgan) and at Price Waterhouse (now
PricewaterhouseCoopers). Her career as a company director spans
financial services, investment, insurance, healthcare, gambling
and entertainment, fast moving consumer goods, property and
construction and retailing sectors. Paula has a strong interest in
education and medical research, having served as a member
of the Geelong Grammar School Council and the Business and
Economics Faculty at the University of Melbourne and as Deputy
Chairman of Baker IDI.
RELEVANT OTHER DIRECTORSHIPS
•Chairman: Tabcorp Holdings Limited (from 2011, Director from
2005), Healthscope Limited (from 2014) and Kin Group Advisory
Board (from 2014).
•Director: Lion Pty Ltd (from 2012) and Allianz Australia Limited
(from 2019).
•Member: Kirin International Advisory Board (from 2012) and
Australian Government Takeovers Panel (from 2017).
Age 59 years | Residence Melbourne, Australia
Paula Dwyer
CHAIR
MEMBER
CHAIR
MEMBER
Governance (continued)
ANZ 2019 ANNUAL REPORT
40

POSITION
Independent Non-Executive Director
QUALIFICATIONS
BEc (Hons), FAICD, FTSE, FIML
RESPONSIBILITIES
Non-Executive Director since July 2013. Graeme is a member
of the Audit Committee, Human Resources Committee and
Nomination and Board Operations Committee.
CAREER
Graeme brings to the Board his experience of a 23 year
executive career with Orica Limited (including a period as
Chief Executive Officer), a global mining services company
with operations in more than 50 countries. He has extensive
international experience and a strong record of achievement
as a senior executive, including in strategy development and
implementation.
Graeme is committed to global trade and cooperation, as well
as community education.
RELEVANT OTHER DIRECTORSHIPS
•Chairman: Amcor Limited (from 2013, Director from 2012)
•Director: Australian Foundation Investment Company Limited
(from 2012) and Carey Baptist Grammar School (from 2012).
RELEVANT FORMER DIRECTORSHIPS HELD IN LAST
THREE YEARS INCLUDE
•Former Chairman: DuluxGroup Limited (2018–2019,
Director from 2016).
Age 65 years | Residence Melbourne, Australia
Rt Hon Sir John Key,
GNZM AC
Graeme Liebelt
POSITION
Independent Non-Executive Director
QUALIFICATIONS
BCom, DCom (Honoris Causa)
RESPONSIBILITIES
Non-Executive Director since February 2018. Sir John is a
member of the Ethics, Environment, Social and Governance
Committee, Risk Committee, Digital Business and Technology
Committee and Nomination and Board Operations Committee.
CAREER
Sir John was Prime Minister of New Zealand from 2008 to 2016,
having commenced his political career in 2002. Sir John had a
long career in international finance, primarily for Bankers Trust in
New Zealand and Merrill Lynch in Singapore, London and Sydney.
He was previously a member of the Foreign Exchange Committee
of the Federal Reserve Bank of New York (from 1999 to 2001).
Sir John was made a Knight Grand Companion of the New
Zealand Order of Merit in the 2017 Queen’s Birthday Honours. In
2017 Sir John became a Companion of the Order of Australia for
advancing the Australia-New Zealand bilateral relationship.
RELEVANT OTHER DIRECTORSHIPS
•Chairman: ANZ Bank New Zealand Limited (from 2018, Director
from 2017).
•Director: Air New Zealand Limited (from 2017) and Palo Alto
Networks (from 2019).
RELEVANT FORMER DIRECTORSHIPS HELD IN LAST
THREE YEARS INCLUDE
•Former Chairman: The International Democratic Union
(2014–2018).
Age 58 years | Residence Auckland, New Zealand.
CHAIR
MEMBER
MEMBER
41

Company Secretaries’
Qualifications and Experience
POSITION
Independent Non-Executive Director
QUALIFICATIONS
BCom, MCom (Hons)
RESPONSIBILITIES
Non-Executive Director since May 2014. John is a member of
the Audit Committee, Risk Committee, Digital Business and
Technology Committee and Nomination and Board Operations
Committee.
CAREER
John is one of Australia’s most experienced international bankers
having previously served as Executive Chairman of Deutsche
Bank Australia and New Zealand, and CEO of Deutsche Bank
Australia. John has also worked in the USA, Japan and PNG, and
brings to the Board a depth of banking experience in ANZ’s
key markets in Australia, New Zealand and the Asia Pacific. He
is committed to community health, and is a Director of the
Aikenhead Centre of Medical Discovery Limited (from 2016).
RELEVANT OTHER DIRECTORSHIPS
Director: Craigs Investment Partners Limited (from 2013), Colmac
Group Pty Ltd (from 2014), AGInvest Holdings Limited (MyFarm
Limited) (from 2014, Chairman 2014–2016), Balmoral Pastoral
Investments (from 2017) and L1 Long Short Fund (from 2018).
RELEVANT FORMER DIRECTORSHIPS HELD IN LAST
THREE YEARS INCLUDE
Former Director: St Vincent’s Institute of Medical Research
(2008–2019)
Age 59 years | Residence Melbourne, Australia
John Macfarlane
MEMBER
Ken Adams
POSITION
Group General Counsel
QUALIFICATIONS
BA, LLB, LLM
Ken joined ANZ as Group General Counsel in August 2019, having
assisted it with major legal issues for over 10 years. Prior to ANZ,
Ken was a Partner of Freehills and later Herbert Smith Freehills
for 21 years, and for 6 years was a member of the Herbert Smith
Freehills Global Board. Ken is one of Australia’s leading commercial
lawyers with significant experience in class actions, and complex
problems requiring strategic and multi-disciplinary analysis. He
holds a Master of Laws from the University of Melbourne and is a
co-author of Class Actions in Australia.
Simon Pordage
POSITION
Company Secretary
QUALIFICATIONS
LLB (Hons), FGIA, FCIS
Simon joined ANZ in May 2016. He is a Chartered Secretary and
has extensive company secretarial and corporate governance
experience. From 2009 to 2016 he was Company Secretary
for Australian Foundation Investment Company Limited and a
number of other listed investment companies. Other former roles
include being Deputy Company Secretary for ANZ and Head of
Board Support for Barclays PLC in the United Kingdom. Simon
is committed to the promotion of good corporate governance.
He is a former National President and Chairman of Governance
Institute of Australia, and is a member and former Chairman of
its National Legislation Review Committee, and regularly presents
on governance issues.
Currently there are two people appointed as
Company Secretaries of the Company. Details
of their roles are contained in the Corporate
Governance Statement.
Their qualifications and experience are as follows:
Governance (continued)
ANZ 2019 ANNUAL REPORT
42

How We Creat Value Icons
Stakeholder icons
Most material issues iconsCustomer story icon
New icons/infographics
Willie Smith’s Organic Apples and Cider is a family-run business in Huonville,
Tasmania. The family started apple farming in 1888 and the business has since
evolved into a premium supplier of organic apples, cider and spirits.
CUSTOMER STORY
Growing business sustainably
We have had
a banking
relationship with
Willie Smith’s for
more than
100 years
Over the years they have faced many challenges, including
bushfires and the collapse of Tasmania’s apple export industry
in 1973 (the result of Britain joining the European Common
Market). In response, Ian Smith, a third-generation orchardist, built
controlled-atmosphere cool stores and began exporting to Asia in
the 1980s.
More recently his son Andrew has converted the orchard into an
organic farm, in the belief that growing food without the need
for chemical fertilisers and pesticides is better for their land, their
customers and the Tasmanian environment.
Willie Smith’s has had a banking relationship with ANZ for more
than 100 years. In June this year members of our Board and
Executive visited the cider production facilities and packing shed,
meeting with the workers and learning about what matters to
them and their local community.
“I have worked hard to evolve Willie Smiths into a vertically
integrated agribusiness in the last twenty years. The key
ingredients have been innovation, hard work and good
relationships. I feel confident and comfortable in our working
relationship with ANZ,” said Andrew.
Supporting the agricultural sector is an important part of ANZ’s
history, and banking customers like Willie Smith’s aligns with our
focus on helping our customers grow their business sustainably.
Image: Andrew Smith
43

Risk management
Sound risk management plays a critical role in positioning us to
prepare for, and respond to, opportunities and challenges in our
operating environment.
Our progress
This year we have continued to strengthen our risk management
capabilities, focusing on:
Culture and conduct
•We have initiated a programme of work to build out how we will
measure, monitor and manage conduct risk to allow us to better
understand and respond to the drivers of poor conduct. This
has included introducing new accountability and consequence
principles for employees found accountable for material
failure and non-compliance as well as recognising positive risk
behaviours in our annual performance and remuneration reviews.
•We have raised employee awareness about our whistleblower
processes and made it easier for them to ‘speak up’– including
through initiatives such as the inaugural Whistleblower Awareness
Week this year.
Simplification
•Investment has been made in our risk systems, including
enhancing our data analytics to improve our ability to identify
issues, and more swiftly understand the root causes.
•Standardisation and simplification of our wholesale risk practices
and policies has helped significantly improve time responsiveness
thereby delivering a better banker and customer experience.
Non-financial risk
•We have redesigned our non-financial risk framework in response
to feedback that it was too complex. Significant work has been
undertaken to simplify our language around operational risk,
consolidate our framework documentation, and clarify the
requirements and roles and responsibilities of our staff.
•We have established a Royal Commission and Self-Assessment
Oversight Group to provide oversight of the integrated approach
and plans to address the Self-Assessment focus areas and Royal
Commission ‘lessons’. This includes, for example, commissioning
and reviewing reports on progress in addressing the Self-
Assessment focus areas, our 16 Royal Commission commitments
and actions by government to respond to the Royal Commission.
The successful delivery of the bank’s strategy is dependent on sound risk
management. All of the bank’s activities involve – to varying degrees – the analysis,
evaluation, acceptance and management of risks or a combination of risks.
Our Risk Management Framework
The Board is responsible for establishing and overseeing the Group’s
risk management framework. The Board has delegated authority
to the Board Risk Committee (BRC) to develop and monitor
compliance with the Group’s risk management policies.
The Committee reports regularly to the Board on its activities.
The key pillars of the Group’s risk management framework include:
•the Risk Appetite Statement (RAS), which sets out the Board’s
expectations regarding the degree of risk that the Group is
prepared to accept in pursuing its strategic objectives and its
operating plan; and
•the Risk Management Statement (RMS), which describes the
Group’s strategy for managing risks and a summary of the key
elements of the Risk Management Framework (RMF) that give
effect to that strategy. The RMS includes: a description of each
material risk; and an overview of how the RMF addresses each risk,
with reference to the relevant policies, standards and procedures.
It also includes information on how the Group identifies,
measures, evaluates, monitors, reports and then either controls or
mitigates material risks.
The Group operates a Three Lines-of-Defence Model in regard to risk
management that helps embed a culture where risk is everyone’s
responsibility. The business – as the first line of defence – has day to
day ownership of risks and controls and is accountable for identifying
and managing its own risks. The Risk Function is the second line
of defence, providing a strong and independent oversight of the
work undertaken to manage the risk, as well as developing and
maintaining the Risk Management Framework.
The final line of defence is Internal Audit and includes independent
assurance that evaluates the adequacy and effectiveness of both first
and second line risk management approaches.
Links to 2019 Group
Performance Framework
We continue to operate in a dynamic and challenging
external and regulatory environment placing significant
demands on the Risk and Compliance function. There were
no material breaches of our Group Risk Appetite Statement,
and the number of adverse audits fell by a third with
management demonstrating accountability for fixing issues
in a timely and sustainable manner. While there were many
positives from a risk perspective there were some non-
financial risk shortcomings from a regulatory, customer and
community perspective.

Refer to our Remuneration Report on pages 66 to 98 for
further detail.
“ Strong risk management is a necessity
if we are to anticipate and navigate
ANZ through a changing environment.”
Kevin Corbally – Group Chief Risk Officer
ANZ 2019 ANNUAL REPORT
44

Fighting financial crime
Financial crime threats continue to evolve,
as do the regulatory measures required to
address them. In response we have:
•invested heavily in capturing and
understanding financial crime data and infrastructure,
upgrading sanctions and fraud platforms;
•implemented a network data analysis tool, improving our
ability to collaborate with external parties to fight financial
crime; and
•focused on the growth and development of employees,
developing a gap analysis tool to inform our thinking on
the current and future capabilities required of our people
to combat financial crime.
The governance and oversight of risk, whilst embedded in day
to day activities, is also the focus of committees and regular
forums across the bank (see diagram below). The committees
and forums discuss and monitor known and emerging risks,
reviewing management plans and monitoring progress to
address known issues.
The risk landscape is continually evolving and we are therefore
constantly reviewing issues to consider their materiality to
the bank’s operations. Two risks we are currently seeking to
understand further are:
Cyber security risk: while not new, the increasing reliance we
have on information security systems to hold our data and our
customers’ data requires us to continually invest in and test the
adequacy of our safeguards against evolving cyber attacks and
new technology. See page 20 for further detail,
Climate change risk: the financial risks associated with climate
change are subject to increasing prudential and regulatory oversight
and are therefore an area of focus for us. See pages 48 to 49 for
further detail on our approach to climate-related financial risks.

KEY MANAGEMENT COMMITTEES
Group
Regional or Country
Risk Management
Committees
Country Assets
and Liabilities
Committees
Credit and Market
Risk Committee
Group Asset and
Liability Committee
Operational Risk
Executive
Committee
Ethics and
Responsible
Business Committee
Investment
Committee
Royal Commission
and Self-Assessment
Oversight Group
Credit Ratings
System Oversight
Committee
Capital and Stress
Testing Oversight
Committee
Modelling Ratings
Working Groups
and Usage Forums
Divisional Initiatives
Review Committees
/Project Advisory
Councils
Divisional Risk
Management
Committees
Various Divisional Specific
Management Committees
Operational
Risk
Committee
Product
Committee
Division
Country
Consequence
Review Group
Divisional
Consequence
Review Groups
EXECUTIVE COMMITTEE
ANZ’s most senior executives meet regularly to discuss performance and review shared initiatives
BOARD OF DIRECTORS
45

Key material risks
The material risks facing the group (as per the Group’s Risk Management
Statement) and how these risks are managed, are summarised below:
Risk TypeDescriptionManaging the riskMaterial
ESG issues
1
Capital
Adequacy
Risk
The risk of loss arising from the Group failing
to maintain the level of capital required by
prudential regulators and other key stakeholders
(shareholders, debt investors, depositors, rating
agencies, etc.) to support ANZ’s consolidated
operations and risk appetite.
We pursue an active approach to Capital Management
through ongoing review, and Board approval, of the
level and composition of our capital base against key
policy objectives.
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Compliance
Risk
The risk of failure to act in accordance with
laws, regulations, industry standards and
codes, internal policies and procedures and
principles of good governance as applicable
to the Group’s businesses.
Key features of how we manage Compliance Risk as
part of our Operational Risk framework include:
•centralised management of key obligations, and
emphasis on identifying changes in regulations and the
business environment, so as to enable us to proactively
assess emerging compliance risks and implement robust
reporting and certification processes.
•recognition of incident management as a separate
element to enhance ANZ’s ability to identify, manage
and report on incidents/breaches in a timely manner.
•the Whistleblower Protection Policy, allowing
employees and contractors to make confidential,
anonymous submissions regarding concerns relating
to accounting, internal control, compliance, audit and
other matters.
Credit Risk
The risk of financial loss resulting from:
•a counterparty failing to fulfil its obligations;
or
•a decrease in credit quality of a counterparty
resulting in a financial loss.
Credit Risk incorporates the risks associated
with us lending to customers who could be
impacted by climate change or by changes
to laws, regulations, or other policies adopted
by governments or regulatory authorities,
including carbon pricing and climate change
adaptation or mitigation policies.
Our Credit Risk framework is top down, being defined
by credit principles and policies. Credit policies,
requirements and procedures cover all aspects of the
credit life cycle — for example: transaction structuring,
risk grading, initial approval, ongoing management and
problem debt management, as well as specialist policy
topics.
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Liquidity and
Funding Risk
The risk that the Group is unable to meet
its payment obligations as they fall due,
including:
•repaying depositors or maturing wholesale
debt; or
•the Group having insufficient capacity to
fund increases in assets.
Key principles in managing our Liquidity and Funding
Risk include:
•maintaining our ability to meet liquidity ‘survival
horizons’ under a range of stress scenarios to meet cash
flow obligations over a short to medium-term horizon;
•maintaining a strong structural funding profile; and
•maintaining a portfolio of high-quality liquid assets
to act as a source of liquidity in times of stress.
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Market Risk
The risk to the Group’s earnings arising from:
•changes in any interest rates, foreign
exchange rates, credit spreads, volatility and
correlations; or
•from fluctuations in bond, commodity or
equity prices.
Our risk management and control framework for Market
Risk involves us quantifying the magnitude of market risk
within the trading and balance sheet portfolios through
independent risk measurement. This identifies the range
of possible outcomes, the likely timeframe, and the
likelihood of the outcome occurring. Then we allocate an
appropriate amount of capital to support these activities.
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Risk management (continued)
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ANZ 2019 ANNUAL REPORT
46

1.
See page 3 for information on our material ESG issues
Risk TypeDescriptionManaging the riskMaterial
ESG issues
1
Operational
Risk
The risk of loss and/or non-compliance with
laws resulting from inadequate or failed
internal processes, people and/or systems, or
from external events. This definition includes
legal risk, and the risk of reputation loss, or
damage arising from inadequate or failed
internal processes, people and systems, but
excludes strategic risk.
We operate a Three-Lines-of-Defence Model to manage
Operational Risk, with each Line of Defence having
defined roles, responsibilities and escalation paths
to support effective communication and effective
management of our operational risk. We also have
ongoing review mechanisms to ensure our Operational
Risk framework continues to meet organisational needs
and regulatory requirements.
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Reputation
Risk
The risk of loss that directly or indirectly
impacts earnings, capital adequacy or value,
that is caused by:
•adverse perceptions of the Group held
by any of customers, the community,
shareholders, investors, regulators, or rating
agencies;
•conduct risk associated with the Group’s
employees or contractors (or both); or
•the social and/or environmental impacts of
our lending decisions.
We manage Reputation Risk by maintaining a positive
and dynamic culture that:
•ensures we act with integrity; and
•enables us to build strong and trusted relationships
with customers and clients, with colleagues, and with
the broader society.
We have well established decision-making frameworks
and policies to ensure our business decisions are guided
by sound social and environmental standards that take
into account Reputation Risk.
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Strategic
Risk
The risk that the Group’s business strategy and
strategic objectives may lead to an increase in
other key Material Risks — for example: Credit
Risk, Market Risk and Operational Risk.
We consider and manage strategic risks through our
annual strategic planning process, managed by the
Executive Committee and approved by the Board.
Any increase to our Key Material Risks is managed in
accordance with the risk management specified above.
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Technology
Risk
The risk of loss and/or non-compliance with
laws resulting from inadequate or failed
internal processes, people and systems or
from external events impacting on IT assets,
including the compromise of an IT asset’s
confidentiality, integrity or availability.
Consistent with the management of Operational Risk,
we operate a Three-Lines-of-Defence model to manage
Technology Risk, with each Line of Defence having
defined roles, responsibilities and escalation paths
to support effective communication and effective
management of our technology risk. We also have
ongoing review mechanisms to ensure our Operational
Risk framework, which is also used to manage
Technology Risk, continues to meet organisational needs
and regulatory requirements.
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For further information about the principal risks
and uncertainties that the Group faces, see our
‘Principal risks and Uncertainties’ disclosure
available at anz.com/shareholder/centre
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Fraud and data security
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Customer experience
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Fairness and ethical conduct
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Corporate governance
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Digital innovation
47

Our approach to climate change
We seek to provide investors and other
stakeholders with information enabling
them to assess the adequacy of our
approach to climate change and our
ability to manage the associated risks
and opportunities.
This is the third year we have reported using the recommendations
of the Financial Stability Board Taskforce on Climate-related Financial
Disclosures (TCFD). For detailed information see ‘ANZ 2019 climate-
related financial disclosures’ on anz.com/annualreport.
Engaging with our customers on their transition plans
Throughout 2019 we have analysed the carbon disclosures of over 80 of our largest emitting customers and
engaged with 29 of these to support them to establish, and where appropriate, strengthen existing low carbon
transition plans.
This engagement will inform the development of a model applicable to our broader customer base enabling us to encourage customers
to improve the management and disclosure of their climate-related risks and opportunities.
Within each industry our customers have different starting points. Both through customer discussions and reviews of public disclosures
we are developing a better understanding of our customers’ preparation for, and management of, their most likely climate-related risks
and opportunities. Insights we have gained from these customer conversations include:
In 2019 we have focused on:
Training our people on climate-related
risks and opportunities
Engaging with our largest-emitting
customers on their transition plans
Feeding the results of our customer
engagement into our assessments of individual
customers and carbon-intensive portfolios,
in particular the energy, transport, buildings and
food, beverage and agricultural sectors
Energy: our engagement in this sector is initially focused on
customers with thermal coal operations. Some customers see
continuing strong demand for high-quality, low-cost Australian
thermal coal that will be used in recently built or planned
high efficiency, lower emissions (HELE) plants across Asia; their
strategy is focused on developing high quality thermal coal
assets and they are committed to improving their external
disclosures. Other customers have undertaken scenario analysis
(aligned with TCFD recommendations), revealing that some of
their commodities perform worst under a low-carbon transition;
in response they are directing limited expenditure to thermal
coal and most of this is in maintenance capital rather than
expansion. Some companies are also starting to work with
their suppliers and customers to seek to reduce the emissions
associated with the use of their mining commodities, ie ‘Scope 3’
emissions.
Transport: a significant customer has ambitious plans to expand
their electric vehicle fleet in Australia and is building a new
distribution centre that will integrate rooftop solar and electric
vehicle charging bays. They also plan to enter a renewable energy
power purchase agreement (PPA) to lower their carbon footprint
and shield themselves from price volatility.
Buildings: a number of customers have established net-zero
carbon targets that will be achieved largely through improved
energy efficiency and onsite solar installations, setting time bound
goals to achieve this by 2030.
Food, beverage and agriculture: for many of our agribusiness
and food producers, the physical risks of climate change (e.g.,
water availability and supply) represent the most material and
immediate risk to their business, rather than transition risks.
We have observed these customers are increasingly focused
on managing climate-related risks by committing to reduce or
remove deforestation from their operations and supply chains.
EnergyTransportBuildingsFood, beverage
and agriculture
Risk management (continued)
ANZ 2019 ANNUAL REPORT
48

Our progress on the TCFD
TCFD themeOur progress to dateFocus areas – 2020/21Beyond 2020 vision
Governance
•Board Risk Committee oversees management of
climate-related risks
•Board Ethics, Environment, Social and Governance
Committee approves climate-related objectives, goals
and targets
•Ethics and Responsible Business Committee (executive
management) oversees our approach to sustainability
and reviews climate-related risks
•Align with regulatory
guidance on climate-related
risk governance, including
stress testing of selected
portfolios
•An enhanced risk
management framework
that is responsive
to climate change,
and meets financial
regulators’ requirements
Strategy
•ANZ’s Climate Change Statement (available on anz.com)
reaffirms support for the Paris Agreement goals and
transition to a net-zero carbon economy
•Managing the net-zero carbon transition focuses on an
orderly and just transition that gives careful consideration
to the impacts on communities
•Participation in a United Nations Environment Program
Finance Industry (UNEP FI) working group on TCFD scenario
analysis that issued recommendations and methods to
assess portfolio transition and physical risks
•Low carbon products and services within our Institutional
business focused on climate-related opportunities
•Analysis of flood-related risks for our home loan portfolio in
a major regional location of Australia
•Test-pilot of socio-economic indicators showing financial
resilience of home loan customers with respect to flood risk
•Consider extending scenario
analysis to incorporate
bushfire, flood and other risks
relating to retail customers
•Possible extension of
emerging environmental and
climate-related risks to other
segments of the home loan
portfolio
•Include climate risk reference
in agriculture related lending
guidance documents used
by our front line bankers
•ANZ business strategy
more closely aligned to a
resilient and sustainable
economy that supports
the Paris Agreement
goals and Sustainable
Development Goals
Risk
management
•Climate change risk added to Group and Institutional Risk
Appetite Statements
•Climate change identified as a Principal Risk and Uncertainty in
our UK Disclosure and Transparency Rules (DTR) Submission
•Guidelines and training provided to over 1,000 of our
Institutional bankers on customers’ transition plan discussions
•Enhanced financial analysis and stronger credit approval
terms applied to agricultural property purchases in regions
of low average rainfall or measured variability
•New agribusiness customers assessed for financial resilience
and understanding of rainfall and climate trends in their
area, and water budgets considered if irrigating
•Encouraging customers to
develop and disclose their
transition plans in key sectors
energy, transport, buildings
and food, beverage and
agriculture
•Customer engagement
to identify customer or
sector-specific transition
or physical risks
•Integrate assessment
of climate-related risks
into our Group risk
management framework
•Standard discussions
with business customers
include climate-related
risks and opportunities
•Assessment of customer
transition plans part
of standard lending
decisions and portfolio
analysis
Metrics and
targets
•Support 100 of our largest emitting customers
1
to establish
or strengthen low carbon transition plans by 2021, with
metrics developed to track progress
•Exceeded our 5-year $15 billion target to fund and facilitate
low carbon and environmentally sustainable solutions
•Power Purchase Agreement to increase renewable energy
use in our Australian operations
•Ongoing emissions reduction targets for ANZ energy use
aligned with the Paris Agreement goals
•Complete transition plan
engagement with high
emitting customers and
consider how to integrate
into customer assessments
•New 6-year $50 billion
target to fund and facilitate
sustainable solutions
•New metrics for measuring
impact of our progress on
environmental sustainability
•New target to procure 100%
renewable electricity for
ANZ’s operations by 2025
•Monitor industry
standards for lending
aligned with the Paris
Agreement goals
•Reduce ANZ’s
operational emissions
in line with the
decarbonisation
trajectory of the Paris
Agreement goals
1.
In the energy, transport, buildings and food, beverage and agricultural sectors.
49

CUSTOMER STORY
Sustainable finance market
continues to grow
$
These loans are differentiated by how the proceeds are used. Green loans
require borrowers to invest in ‘green’ assets such as green buildings, renewable
energy or low carbon transport projects. Sustainability-linked loans can be
used for general corporate purposes with pricing designed to incentivise
improved sustainability performance – for example, reducing emissions and
improving employee wellbeing.
In the past year, ANZ has arranged and funded the first ever sustainability
linked loan in Australia for Adelaide Airport, and the first Climate Bonds
Initiative certified green loan in Australia for Investa Commercial Property Fund.
We also acted as joint sustainability co-ordinator and bookrunner on a $1.4
billion sustainability-linked loan for Sydney Airport – the first syndicated facility
of its kind in Australia as well as the largest in Asia Pacific and the airport sector
to date. Pricing of the loan is attached to Sydney Airport’s ESG performance,
as measured by an independent third party. Sustainability initiatives include
investment in electric vehicles, an ambition to achieve carbon neutrality by
2025 and cutting carbon emissions per passenger by 50 percent from 2010
levels by 2025.
In a first for the New Zealand market, we also led the successful completion of
a NZ$50 million sustainability-linked loan for dairy company Synlait Milk Ltd.
“Linking our financial arrangements to our ESG performance made perfect
sense”, said Nigel Greenwood, Synlait Chief Financial Officer. “It reinforces to
our shareholders and stakeholders that we are committed to continuously
improving our performance and disclosure, and aligns with our company
purpose.”
ANZ expects companies will become more receptive to these types of
sustainable finance products as climate change and sustainable development
move into the fore of their corporate strategies and risk assessment.
Images supplied by Synlait Milk Ltd
Following the growth of green bonds in the past three to
four years, the Australian and New Zealand sustainable
finance market continues to accelerate with the emergence
of loans in both green and sustainability-linked formats.
ANZ 2019 ANNUAL REPORT
50

In a first for New Zealand, we led
the completion of a NZ$50 million
sustainability linked loan for dairy
company, Synlait Milk Ltd
51

OUR PERFORMANCE (continued)

52 ANZ 2019 ANNUAL REPORT
GROUP PERFORMANCE

The results of the Group’s operations and financial position are set out on pages 52-64. Page 9 outlines the Group’s strategy and pages
10-23 describes in further detail the Group’s prospects in terms of future financial position and performance. Discussion of our approach
and progress to risk management, including a summary of our key material risks is outlined on pages 44-49.
Statutory profit after tax for the year ended 30 September 2019 decreased 7% on the prior year to $5,953 million. Statutory return on
equity is 10% and statutory earnings per share is 210.0 cents, a decrease of 5% on prior year.
GROUP PROFIT RESULTS
2019 2018
Statutory Cash Statutory Cash
Income Statement $m $m $m $m
Net Interest Income
14,339 14,339
14,514 14,514
Other operating income
4,446 4,690
5,470 4,853
Operating income
18,785 19,029
19,984 19,367
Operating expenses
(9,071) (9,071)
(9,401) (9,401)
Profit before credit impairment and income tax
9,714 9,958
10,583 9,966
Credit impairment charge
(794) (795)
(688) (688)
Profit before income tax
8,920 9,163
9,895 9,278
Income tax expense
(2,609) (2,678)
(2,784) (2,775)
Non-controlling interests
(15) (15)
(16) (16)
Profit after tax from continuing operations 6,296 6,470
7,095 6,487
Profit/(Loss) after tax from discontinued operations
(343) (309)
(695) (682)
Profit for the year 5,953 6,161
6,400 5,805
The Group uses cash profit, a non-IFRS measure, to assess the performance of its business activities. It is an industry-wide measure which
enables comparison with our peer group. We calculate cash profit by adjusting statutory profit for non-core items. In general, it represents the
financial performance of our core business activities. We use cash profit internally to set targets and incentivise our Senior Executives and
leaders through our remuneration plans.
Refer to page 53 for adjustments between statutory and cash profit.
Cash profit is not subject to audit by the external auditor. Our external auditor has informed the Audit Committee that adjustments between
statutory and cash profit have been determined on a consistent basis across each of the periods presented.
As a result of the sale of our OnePath pensions and investment (OnePath P&I) and aligned dealer groups (ADG) businesses to IOOF Holdings
Limited and our life insurance business to Zurich Financial Services Australia, the financial results of these businesses and associated Group
reclassification and consolidation impacts are treated as discontinued operations from a financial reporting perspective (refer to page 61).
CONTINUING OPERATIONS
We believe cash profit from continuing operations is particularly important as we continue to strategically reposition ourselves to create a
simpler, better capitalised, better balanced and more agile bank.


1.
Information has been presented on a cash profit from continuing operations basis. Discontinued operations are detailed on page 61.
Performance
Overview
2019
2018
2019
2018
19,0299,071
19,3679,401
Total Operating
Income – cash
1
($m)
2019
2018
6,470
6,487
Cash profit
1
($m)Operating Expenses –
cash
1
($m)
2019
2018
227.6
223.4
Earnings per Share –
cash
1
(cents)
2019
2018
11.4%
11.4%
Common Equity
Tier 1 (%)
2019
2018
2019
2018
795
688
Credit Impairment
Charge – cash
1
($m)
Return on
Equity– cash
1
(%)
2019
2018
160
160
Dividend per
share (cents)
11.0%
10.9%
OUR PERFORMANCE (continued)

52 ANZ 2019 ANNUAL REPORT
GROUP PERFORMANCE

The results of the Group’s operations and financial position are set out on pages 52-64. Page 9 outlines the Group’s strategy and pages
10-23 describes in further detail the Group’s prospects in terms of future financial position and performance. Discussion of our approach
and progress to risk management, including a summary of our key material risks is outlined on pages 44-49.
Statutory profit after tax for the year ended 30 September 2019 decreased 7% on the prior year to $5,953 million. Statutory return on
equity is 10% and statutory earnings per share is 210.0 cents, a decrease of 5% on prior year.
GROUP PROFIT RESULTS
2019 2018
Statutory Cash Statutory Cash
Income Statement $m $m $m $m
Net Interest Income
14,339 14,339
14,514 14,514
Other operating income
4,446 4,690
5,470 4,853
Operating income
18,785 19,029
19,984 19,367
Operating expenses
(9,071) (9,071)
(9,401) (9,401)
Profit before credit impairment and income tax
9,714 9,958
10,583 9,966
Credit impairment charge
(794) (795)
(688) (688)
Profit before income tax
8,920 9,163
9,895 9,278
Income tax expense
(2,609) (2,678)
(2,784) (2,775)
Non-controlling interests
(15) (15)
(16) (16)
Profit after tax from continuing operations 6,296 6,470
7,095 6,487
Profit/(Loss) after tax from discontinued operations
(343) (309)
(695) (682)
Profit for the year 5,953 6,161
6,400 5,805
The Group uses cash profit, a non-IFRS measure, to assess the performance of its business activities. It is an industry-wide measure which
enables comparison with our peer group. We calculate cash profit by adjusting statutory profit for non-core items. In general, it represents the
financial performance of our core business activities. We use cash profit internally to set targets and incentivise our Senior Executives and
leaders through our remuneration plans.
Refer to page 53 for adjustments between statutory and cash profit.
Cash profit is not subject to audit by the external auditor. Our external auditor has informed the Audit Committee that adjustments between
statutory and cash profit have been determined on a consistent basis across each of the periods presented.
As a result of the sale of our OnePath pensions and investment (OnePath P&I) and aligned dealer groups (ADG) businesses to IOOF Holdings
Limited and our life insurance business to Zurich Financial Services Australia, the financial results of these businesses and associated Group
reclassification and consolidation impacts are treated as discontinued operations from a financial reporting perspective (refer to page 61).
CONTINUING OPERATIONS
We believe cash profit from continuing operations is particularly important as we continue to strategically reposition ourselves to create a
simpler, better capitalised, better balanced and more agile bank.


1.
Information has been presented on a cash profit from continuing operations basis. Discontinued operations are detailed on page 61.
ANZ 2019 ANNUAL REPORT
52

OUR PERFORMANCE (continued)

ANZ 2019 ANNUAL REPORT 53
ADJUSTMENTS BETWEEN STATUTORY AND CASH PROFIT
1

Description of adjustments between continuing operations statutory profit and cash profit:

Adjustment Reason for the adjustment
Revaluation of policy
liabilities – OnePath
Life (NZ)

2019: $77 million
2018: ($14) million
When calculating policy liabilities, the projected future cash flows on insurance contracts are discounted to reflect
the present value of the obligation, with the impact of changes in the market discount rate each period being
reflected in the Income Statement. ANZ includes the impact on the re-measurement of insurance contracts
attributable to changes in market discount rates as an adjustment to statutory profit to remove the volatility
attributable to changes in market interest rates which reverts to zero over the life of insurance contracts. With the
sale completion of the OnePath Life (NZ) Ltd business, the 2019 financial year includes the reversal of life-to-date
cash profit adjustments on the revaluation of policy liabilities sold increasing cash profit by $81 million.
Economic and
revenue and expense
hedges

2019: $99 million
2018: ($257) million

The Group enters into economic hedges to manage its interest rate and foreign exchange ris
k which, in
accordance with accounting standards, result in fair value gains and losses being recognised within the Income
Statement. ANZ removes the fair value adjustments from cash profit since the profit or loss resulting from the
hedge transactions will reverse over time to match with the profit or loss from the economically hedged item as
part of cash profit. This includes gains and losses arising from approved classes of derivatives not designated in
accounting hedge relationships but which are considered to be economic hedges, including hedges of foreign
currency debt issuances and foreign exchange denominated revenue and expense streams, primarily NZD and
USD (and USD correlated), as well as ineffectiveness from designated accounting hedges.
Structured credit
intermediation
trades

2019: ($2) million
2018: ($4) million

ANZ entered into a series of structured credit intermediation trades prior to the Global Financial Crisis with eight
US financial guarantors. This involved selling credit default swaps (CDSs) as protection over specific debt structures
and purchasing CDS protection over the same structures. ANZ has subsequently exited its positions with six US
financial guarantors. The remaining two portfolios with a $0.3 billion notional value are being monitored with a
view to reducing the exposures when ANZ deems it cost effective relative to the perceived risk associated with a
specific trade or counterparty.
Sale of SRCB

2019: nil
2018: ($333) million

On 3 January 2017, The Group announced that it had agreed to sell its 20% stake in Shanghai Rural Commercial
Bank (SRCB). The impact of SRCB has been treated as an adjustment between statutory profit to cash profit. The
rationale being the loss on reclassification to held for sale was expected to be largely offset by the release of
reserve gains on sale completion within the 2017 year. The transaction was subsequently completed in the 2018
full year, and the entire impact of the transaction was recognised in cash profit.
1.
Information has been presented on a cash profit from continuing operations basis. Discontinued operations are detailed on page 61.
6,296
2019 Statutory
profit –
continuing
operations
6,470
2019 Cash
profit –
continuing
operations
Economic and
revenue
and expense
hedges
99
Revaluation
of policy
liabilities
77
Structured
credit
intermediation
trades
(2)
ADJUSTMENTS BETWEEN STATUTORY AND CASH PROFIT
1
53

OUR PERFORMANCE (continued)

54 ANZ 2019 ANNUAL REPORT
CASH PROFIT PERFORMANCE
1


GROUP PERFORMANCE – CASH PROFIT
2019 2018

$m $m Movt
Net Interest Income
14,339
14,514 -1%
Other operating income
4,690
4,853 -3%
Operating income
19,029
19,367 -2%
Operating expenses
(9,071)
(9,401) -4%
Profit before credit impairment and income tax
9,958
9,966 0%
Credit impairment charge
(795)
(688) 16%
Profit before income tax
9,163
9,278 -1%
Income tax expense
(2,678)
(2,775) -3%
Non-controlling interests
(15)
(16) -6%
Profit after tax from continuing operations 6,470
6,487 0%
Cash profit from continuing operations decreased $17 million (0%) compared with the 2018 financial year.
 Net interest income decreased $175 million (-1%) largely due to lower interest rates and competitive pressures resulting in a 11 basis point
decrease in the net interest margin, partially offset by 5% growth in average interest earning assets. The lower net interest margin reflects
growth in lower margin Markets Balance Sheet activities, higher proportionate growth in the lower Institutional business, customer
switching to principal and interest in Australia home loans, deposit margin compression and lower earnings on capital, partially offset by the
impact of home loans repricing. The increase in average interest earning assets reflects growth in Institutional banking portfolios and home
loan growth in the New Zealand division.
 Other operating income decreased $163 million (-3%) largely as the result of net divestment impacts of $198 million, a $120 million
decrease in net fee and commission income, and $130 million decrease primarily in other income attributable to realised losses on
economic hedges against foreign currency denominated revenue streams (which offset favourable foreign currency translations elsewhere
in the Group) and a reduction in income from the lenders mortgage insurance business. This was partially offset by higher Markets other
operating income of $154 million, a $79 million increase in share of associate’s profit and a $52 million decrease in customer remediation
within other operating income.
 Operating expenses decreased $330 million (-4%) primarily due to an accelerated software amortisation charge in the prior period of $251
million, lower restructuring expenses of $150 million, a reduction in expenses following the sale of OnePath Life (NZ) and Asia Retail and
Wealth businesses of $60 million, lower Royal Commission legal costs of $40 million and lower FTE. This was partially offset by higher
customer remediation of $182 million within operating expenses, inflation, the impact of foreign currency translation and regulatory
compliance spend in New Zealand.
 Credit impairment charges increased $107 million (+16%) largely due to higher collectively assessed credit impairment charges, primarily as
a result of the prior period benefitting from the release of temporary economic overlays and a greater number of customer upgrades.
1.
Information has been presented on a cash profit from continuing operations basis. Discontinued operations are detailed on page 61.
 
CASH PROFIT PERFORMANCE
1
6,487
6,470
2018 Cash
Profit -
continuing
operations
2019 Cash
Profit -
continuing
operations
Net
interest
income
Other
operating
income
Operating
expenses
Credit
impairment
charge
Income tax
expense
& non-
controlling
interests
(175)
(163)
330
(107)
98
ANZ 2019 ANNUAL REPORT
54
Performance Overview (continued)