December 2019 Pillar 3 Chart Pack

Australia and New Zealand Banking Group Limited ABN 11 005 357 522
ANZ Centre Melbourne, Level 9A, 833 Collins Street, Docklands VIC 3008

20 February 2020

Market Announcements Office
ASX Limited
Level 4
20 Bridge Street
SYDNEY NSW 2000





December 2019 Pillar 3 Chart Pack

Australia and New Zealand Banking Group Limited (ANZ) today releases its December
2019 Pillar 3 Chart Pack.
This has been approved for distribution by ANZ’s Continuous Disclosure Committee.

Yours faithfully




Simon Pordage
Company Secretary
Australia and New Zealand Banking Group Limited

D E C E M B E R 2 0 1 9 B A S E L I I I P I L L A R 3 /
1
st
Q UA R T E R F Y 2 0 C H A R T PA C K
—
2 0 F E B R U A R Y 2 0 2 0
A U S T R A L I A & N E W Z E A L A N D B A N K I N G G R O U P L I M I T E D
To be read in conjunction with ‘ANZ Basel III Pillar 3 disclosure as at 31 December 2019’
Available on the ANZ shareholder website anz.com/shareholder

OVERVIEW
2
FINANCIAL INFORMATION CURRENT AS AT 31 DECEMBER 2019
•Provision charge and Credit Quality (see slides 3, 4 and 5):
oThe total provision charge of $116 million for 1Q20 was $40 million lower than for the same quarter FY19 (PCP). The total provision
charge decreased $77 million compared to the preceding quarter driven by a reduction in collective provision charge including from
an improved delinquency profile in the Australian mortgage portfolio in 1Q20.
oThe individual provision charge at $165 million was $21 million lower than PCP. The IP Loss Rate of 11bps was 1bps lower than PCP.
oCRWA increased $6.1 billion which included $4.2 billion from lending largely in the Corporate asset class and $1.6 billion from
balance sheet recognition of leases arising from the implementation of IFRS 16.
oManagement actions over the past three years to de-risk the portfolio, in particular in Institutional, together with benign market
conditions have contributed to low loss rate outcomes.
oThere have been no material credit impacts observed in the first quarter however, ANZ is maintaining a watching brief on the short
to medium term economic impacts arising from unprecedented bushfire activity and more recent flooding together with any
emerging impacts from the COVID-19 virus.
•Capital (see slides 6 and 7):
o1Q20 includes payment of the Final Dividend (impact 53bps). The Group Common Equity Tier 1 Capital ratio on an APRA Level 2
basis was 10.9%. On a pro-forma basis ~11.1%.
oThe Group Common Equity Tier 1 Capital ratio on an APRA Level 1 basis was 10.9% at the end of the first quarter FY20.
•Australian Housing (see slides 8 and 9)
oActions taken in 1H19 to provide greater certainty for customers by improving turnaround times and providing greater clarity to our
bankers, mobile lenders and mortgage brokers about our lending policies, followed by a major marketing campaign saw application
volumes increase in the second half of FY19 and stabilise at levels well above the first half average. Work continues on
improvements to processes and procedures.
oThe Australian Home Loan balance sheet has stabilised, however there are higher levels of amortisation arising from the low interest
rate environment and associated increased paydownby those with Principal and Interest loans
1
.
o90+ delinquency levels have declined from 4Q19, down 8bps to 1.08%, primarily from improvements in WA and NSW.
1.Principal & Interest loans comprised 85% of the Australian home loan portfolio as at 30 September 2019

PORTFOLIO MOVEMENT
3
RISK WEIGHTED ASSETS (RWA)
1.Institutional RWAs are inclusive of Corporate Banking, transferred from Australia Division to Institutional in October 2017 and backdated to September 2016 for the purposes of chart time series
2.Change to StandardisedApproach for measuring Counterparty Credit Risk
TOTAL RISK WEIGHTED ASSETS BY DIVISION
1
TOTAL RWA MOVEMENT DRIVERS
$b
$b
417.0
424.2
6.1
0.2
0.5
0.4
MktOpSep-19CreditIRRBBDec-19
TOTAL RISK WEIGHTED ASSETS BY CATEGORY
$b
157
160
161
161
159
159
162162
168
159
159
166
164
167
181
184
60
57
56
58
57
60
66
69
Sep-17
424
22
24
12
Mar-17
398
Sep-16
15
Mar-18
396
11
9
Sep-18
10
Mar-19Dec-19
8
Sep-19
409
391
396
391
417
AustraliaInstitutionalNew ZealandOther
200
199
204
202
198
201
202
206
152
143133
141
139
144
156
158
18
17
17
16
16
13
12
13
39
39
37
37
38
38
47
47
Mar-17Sep-16Sep-17Mar-18Dec-19Sep-18Mar-19Sep-19
409
398
391
396
391
396
417
424
CRWA (ex. Insto)CRWA (Insto)Op-RWAMkt. & IRRBB RWA
$19b increase
from Sep-18:
•FX $2b
•SA-CCR$6b
2
•Lending$10b
•Other $1b

PORTFOLIO MOVEMENT
4
CREDIT RISK WEIGHTED ASSETS (CRWA) & EXPOSURE AT DEFAULT (EAD)
EXPOSURE AT DEFAULT & CRWA/EAD
1
CREDIT RWA & EAD MOVEMENT BY ASSET CLASS
$b
$b (Dec-19 vs Sep-19) FX Adjusted
1.EAD excludes Securitisation and Other assets whereas CRWA is inclusive as per APS 330
2.Increase in short term deposits held with central banks (including from customers with northern hemisphere year end reportingdates) contributed circa $14b of the total
894
899
903
930
944
968
977
1,001
39.4
38.0
37.3
36.9
35.8
35.7
36.6
36.4
Mar-17Mar-19Sep-16Sep-17Mar-18Sep-19Sep-18Dec-19
CRWA/EAD %EAD
0.5
4.9
0.7
-0.1
2.5
7.1
16.7
-2.4
Residential
Mortgage (Housing)
CorporateSovereign & BankOther
Credit RWAEAD
Sovereign & Banks
QRR & Other Retail
Dec-19
Residential Mortgage
Other
Corporate
Includes ‘Risk’ release of
-$0.5b, mainly from improved
delinquency profile
CRWA MOVEMENT
358.1
364.2
4.2
2.1
FX ImpactSep-19Lending
Mvmt.
Methodology
Review
RiskDec-19
0.1
-0.3
$b
Driven by
seasonal
impacts
2
Includes $1.6 billion from
balance sheet recognition of
leases arising from the
implementation of IFRS16

CREDIT QUALITY
TOTAL PROVISION CHARGE
90+ DAYS PAST DUE LOANS
3
%
5
1.Excluding unsecured 90+ days past due
2.Other includes Retail Asia & Pacific and Australia Wealth
3.As a % of Exposure at Default
GROSS IMPAIRED ASSETS
1
$m
0
1,000
2,000
3,000
Sep-18Mar-18
2,022
2,052
Dec-19Mar-19Sep-19
2,034
2,013
2,029
AustraliaNew ZealandOther
2
Institutional
0.62
0.61
0.70
0.79
0.73
0.56
0.62
0.67
0.72
0.77
Dec-19Mar-18Sep-18Mar-19Sep-19
Total Group Residential MortgageRetail (Pillar 3 QRR & Other Retail categories)
220
210
160
183
186
43
258
53
165
-39
194
-49
140
-49
-4
-24
-18
-30
1Q184Q18
202
2Q183Q18
193
1Q19
116
2Q193Q194Q191Q20
206
121
159
156
237
209
Individual Provision chargeCollective Provision charge
$m
148
120
38
8
1Q20
15
186
16
-8
14
1Q19
165
Other
Retail (Adv)
Resi. Mortgage (Adv)
Corporate (Adv)
IP CHARGE BY SEGMENT
* First quarter annualisedloss rate
Loss Rate*Loss Rate*Loss Rate*
IP15bpIP12bpIP11bp
Total14bpTotal10bpTotal7bp
Increase primarily from reduction
in denominator (FUM reduction in
Personal lending, Cards, SME)

CAPITAL
APRA LEVEL 2 CET1 RATIO -CAPITAL MOVEMENT
%
6
1.Includes capital deductions increases such as Investments in Associates and Deferred Tax Assets and Non Cash items
2.Taking into consideration announced divestment benefits (P&I ~20bps)
Basel III APRA Level 2 CET1Sep-19Dec-19
Common Equity Tier 1 Capital (AUD m)47,355 46,359
Total Risk Weighted Assets (AUD m)416,961 424,154
Common Equity Tier 1 Capital Ratio11.4%10.9%
Basel III APRA Level 1 Extended licensed CET1Sep-19Dec-19
Common Equity Tier 1 Capital (AUD m)43,095 41,849
Total Risk Weighted Assets (AUD m)379,539 383,575
Common Equity Tier 1 Capital Ratio11.4%10.9%
11.36
10.93
0.10
Sep-19Dividend
(DRP
Neutralised)
-0.53
Organic Cap
Gen & Other
1
Dec-19Pro-Forma
Dec-19
2
~11.1

CAPITAL FRAMEWORK
7
CURRENT REGULATORY PROPOSALS AND RECENT FINALISATION
1
1.Timeline is based on APRA’s 2020 Policy Agenda (published January 2020)
2.Only in relation to the 3% of RWA increase in Total Capital requirements announced in July 2019
20191H202H201H21
Expected
Implementationdate
RBNZ capital framework2027
Leverage ratioFinalise2022
Standardised approach to credit riskConsultationFinalise2022
Internal Ratings-basedApproach to
Credit Risk
ConsultationFinalise2022
Operational riskFinalise2021
Fundamental Review of the Trading
Book
Consultation2023
Interest Rate Risk in the Banking
Book
ConsultationFinalise2022
Loss Absorbing Capacity (LAC)
2
2024
Capital treatment for investments in
subsidiaries (Level 1)
ConsultationFinalise2022
Transition to 2027
Transition to 2024

AUSTRALIA HOME LOANS
ANZ HOME LOAN APPLICATIONS (FUM)ANZ TOTAL HOUSING LOAN GROWTH
1
ANZ TOTAL HOUSING LOAN GROWTH BY TYPE
1
3 month rolling average (Index Dec 2017 = 100)
3 month annualised(%)
3 month annualised(%)
8
PORTFOLIO
1.Source: APRA Monthly Banking Statistics (MBS)and Monthly AuthorisedDeposit-taking Institution Statistics (MADIS)
0
10
20
30
40
50
60
70
80
90
100
Mar-
18
Dec-
17
Mar-
19
Jun-
18
Sep-
19
Sep-
18
Dec-
18
Jun-
19
Dec-
19
8.6
5.5
7.4
3.3
2.0
-0.2
-0.8
-3.0
-2.7
-2.6
0.5
Dec-19Mar-19Sep-17Jun-17Mar-18Dec-17Jun-18Dec-18Sep-18Jun-19Sep-19
12 mthavg
to Dec-19
APRA Monthly Banking Statistics (MBS)
APRA Monthly AuthorisedDeposit-
taking Institution Statistics (MADIS)
APRA Monthly Banking Statistics (MBS)
11.3
9.2
10.5
6.6
4.4
1.8
1.5
-1.3
-0.3
0.3
2.5
4.2
-1.0
2.0
-3.1
-2.5
-4.2
-5.5
-6.5
-6.8
-7.7
-3.3
Dec-18Dec-17Sep-17Jun-17Sep-18Jun-18Mar-18Mar-19Jun-19Sep-19Dec-19
Owner OccupiedInvestor
APRA Monthly AuthorisedDeposit-
taking Institution Statistics (MADIS)

AUSTRALIA HOME LOANS
HOME LOANS –90+ DAYS PAST DUE
1
(BY VINTAGE)HOME LOANS –30+ DAYS & 90+ DAYS PAST DUE
2,3,4
HOME LOANS –90+ DAYS PAST DUE
2,3
(BY STATE)
%
%
9
CREDIT QUALITY
1.Home loans 90+ dpdvintages % ratio of ever delinquent (measured by # accounts) contains at least 6 application months of that fiscal year contributing to each data point.
2.Includes Non Performing Loans
3.ANZ delinquencies calculated on a missed payment basis
4.The current classification of Investor vs Owner Occupier, is based on ANZ’s product category, determined at origination as advised by the customer and the ongoing precision relies primarily on the customer’s obligation to advise
ANZ of any change in circumstances
Month on book
1.0
0.0
0.5
1.5
2.5
2.0
Sep
12
Sep
13
Sep
14
Sep
15
Sep
16
Sep
17
Sep
18
Dec
19
30+ DPD %
90+ Owner Occupied
90+ Investor
0.5
0.0
1.5
1.0
2.0
2.5
3.0
VIC & TASNSW & ACTQLDWASA & NTPortfolio
Mar-15
Mar-12Mar-16
Mar-13
Mar-14Mar-18
Mar-17Mar-19
Jun-19
Dec-19
681012141618202224262830323436
0.0
0.5
1.0
1.5
2.5
2.0
FY19FY18FY16FY15FY17

MARGIN ENVIRONMENT
LOW RATE ENVIRONMENT
BILLS/OISSPREAD
BUSINESS MIX –AVERAGE INTEREST EARNING ASSETS
AS AT SEPTEMBER 2019
$b
bps
AS AT SEPTEMBER 2019 (FULL YEAR AVERAGE, EXCLUDING MARKETS)
%
10
1.Total portfolio including new flows
2.Note: Institutional AIEA excluding Markets are $126.0b. Markets AIEA (Markets/Liquid assets) are $247.9b
0
10
20
30
40
50
60
70
Sep-18Nov-18May-19Jan-19Mar-19Sep-19Jul-19Nov-19Jan-20
Spot Bills-OIS Spread (bps)90 day rolling average of Bills-OIS (bps)
Date90 day avgBills/OIS
1H19 (average)48bps
2H19 (average)27bps
1Q20 (average)19bps
SWITCHING INTEREST ONLY TO PRINCIPAL & INTEREST
1
$b
6
77
9
8
6
4
8
6
4
4
3
2
6
2
8
4
4
3
3
1
3
1H172H172H192H211H181H202H181H192H201H212H221H221H232H23+
Contractual conversionsEarly conversionsContractual (still to convert)
1Q20
Low rate deposits <25bpsCapital (excluding intangibles) and
other non interest bearing liabilities
~110
~53
55.2%
22.3%
20.8%
1.7%
Australia Retail & Commercial
Other
New Zealand
Institutional (excluding Markets)
2

11
FURTHER INFORMATION
EquityInvestors
Jill Campbell
GroupGeneral Manager
Investor Relations
+61 3 8654 7749
+61 412 047 448
jill.campbell@anz.com
Cameron Davis
Executive Manager
Investor Relations
+61 3 8654 7716
+61 421613 819
cameron.davis@anz.com
Harsh Vardhan
Manager
Investor Relations
+61 3 8655 0878
+61 466 848 027
harsh.vardhan@anz.com
Retail InvestorsDebt Investors
Michelle Weerakoon
Manager Shareholder
Services & Events
+61 3 8654 7682
+61 411 143 090
michelle.weerakoon@anz.com
Scott Gifford
Head of Debt Investor
Relations
+61 3 8655 5683
+61 434 076 876
scott.gifford@anz.com
Mary Makridis
Associate Director
Debt Investor Relations
+61 3 8655 4318
mary.makridis@anz.com
Our Shareholderinformationanz.com/shareholder/centre/
DISCLAIMER & IMPORTANT NOTICE: The material in this presentation is general background information about the Bank’s activities current at the date of the presentation. It is information given in
summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial
situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate
This presentation may contain forward-looking statements including statements regarding our intent, belief or current expectations with respect to ANZ’s business and operations, market conditions,
results of operations and financial condition, capital adequacy, specific provisions and risk management practices. When usedinthis presentation, the words “estimate”, “project”, “intend”, “anticipate”,
“believe”, “expect”, “should” and similar expressions, as they relate to ANZ and its management, are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date hereof. Such statements constitute “forward-looking statements” for the purposes of the United States Private Securities Litigation
Reform Act of 1995. ANZ does not undertake any obligation to publicly release the result of any revisions to these forward-looking statements to reflect events or circumstances after the date hereof to
reflect the occurrence of unanticipated events.