ANZ 2020 Full Year Results Documents

Australia and New Zealand Banking Group Limited

ABN 11 005 357 522







Full Year
30 September 2020






Consolidated Financial Report
Dividend Announcement
and Appendix 4E




The Consolidated Financial Report and Dividend Announcement contains information required by Appendix 4E of the Australian Securities
Exchange (ASX) Listing Rules. It should be read in conjunction with ANZ’s 2020 Annual Report, and is lodged with the ASX under listing rule
4.2A.

RESULTS FOR ANNOUNCEMENT TO THE MARKET APPENDIX 4E


2


Name of Company: Australia and New Zealand Banking Group Limited
ABN 11 005 357 522



Report for the year ended 30 September 2020



Operating Results
1



AUD million


Statutory operating income from continuing operations -6% to 17,637





Statutory profit attributable to shareholders

-40% to 3,577





Cash profit
2
-41% to 3,660


Cash profit from continuing operations
2
-42% to 3,758








Dividends
3


Cents

Franked

per

amount

share

per share


Proposed final dividend
4


35

100%





Interim dividend

25

100%


Record date for determining entitlements to the proposed 2020 final dividend 10 November 2020



Payment date for the proposed 2020 final dividend 16 December 2020


Dividend Reinvestment Plan and Bonus Option Plan

Australia and New Zealand Banking Group Limited (ANZ) has a Dividend Reinvestment Plan (DRP) and a Bonus Option Plan (BOP) that will operate in
respect of the proposed 2020 final dividend. For the 2020 final dividend, ANZ intends to provide shares under the DRP and BOP through the issue of new
shares. The 'Acquisition Price' to be used in determining the number of shares to be provided under the DRP and BOP will be calculated by reference to
the arithmetic average of the daily volume weighted average sale price of all fully paid ANZ ordinary shares sold in the ordinary course of trading on the
ASX and Chi-X during the ten trading days commencing on 13 November 2020, and then rounded to the nearest whole cent. Shares provided under the
DRP and BOP will rank equally in all respects with existing fully paid ANZ ordinary shares. Election notices from shareholders wanting to commence,
cease or vary their participation in the DRP or BOP for the 2020 final dividend must be received by ANZ's Share Registrar by 5.00pm (Australian Eastern
Daylight Time) on 11 November 2020. Subject to receiving effective contrary instructions from the shareholder, dividends payable to shareholders with a
registered address in the United Kingdom (including the Channel Islands and the Isle of Man) or New Zealand will be converted to Pounds Sterling or
New Zealand Dollars respectively at an exchange rate calculated on 13 November 2020.









1
Unless otherwise noted, all comparisons are to the year ended 30 September 2019.
2
Cash profit excludes non-core items included in statutory profit and is provided to assist readers in understanding the result of the core business activities of the Group. The non-core
items are calculated consistently period on period so as not to discriminate between positive and negative adjustments, and fall into one of the three categories: gains or losses included in
earnings arising from changes in tax, legal or accounting legislation or other non-core items not associated with the core operations of the Group; treasury shares, revaluation of policy
liabilities, economic hedging and similar accounting items that represent timing differences that will reverse through earnings in the future; and accounting reclassifications between
individual line items that do not impact reported results, such as credit risk on impaired derivatives. Cash profit is not a measure of cash flow or profit determined on a cash basis. The net
after tax adjustment was an increase on statutory profit of $83 million (all attributable to continuing operations) made up of several items. Refer pages 75 to 79 for further details.
3
There is no conduit foreign income attributed to the dividends.
4
It is proposed that the final dividend will be fully franked for Australian tax purposes (30% tax rate) and carry New Zealand imputation credit of NZD 4 cents per ordinary share.

RESULTS FOR ANNOUNCEMENT TO THE MARKET APPENDIX 4E


3




The information on which the Condensed Consolidated Financial Statements is based is in the process of being audited by the Group’s external auditors,
KPMG. The financial information contained in the Condensed Consolidated Financial Statements section of this report includes financial information
extracted from the Annual Report together with financial information that has not been audited. The Group’s Annual Report will be available on 9
November 2020, and will include a copy of KPMG’s audit report.
Cash profit is not subject to audit by the external auditor. The external auditor has informed the Audit Committee that recurring adjustments have been
determined on a consistent basis across each period presented.






David M Gonski, AC Shayne C Elliott
Chairman Managing Director

28 October 2020

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED ABN 11 005 357 522


4

CONSOLIDATED FINANCIAL REPORT, DIVIDEND ANNOUNCEMENT AND APPENDIX 4E
Year ended 30 September 2020



CONTENTS PAGE



Disclosure Summary 6
Summary 7
Group Results 21
Divisional Results 51
Profit Reconciliation 75
Condensed Consolidated Financial Statements 81
Supplementary Information 113
Definitions 126
ASX Appendix 4E Cross Reference Index 129
Alphabetical Index 130


















This Consolidated Financial Report, Dividend Announcement and Appendix 4E has been prepared for Australia and New Zealand Banking Group Limited
(the “Company” or “Parent Entity”) together with its subsidiaries which are variously described as “ANZ”, “Group”, “ANZ Group”, “the consolidated entity”,
“the Bank”, “us”, “we” or “our”.
All amounts are in Australian dollars unless otherwise stated. The Company has a formally constituted Audit Committee of the Board of Directors. The
Condensed Consolidated Financial Statements were approved by a resolution of the Board of Directors on 28 October 2020.
When used in this Results Announcement 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. 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 or to reflect the occurrence of unanticipated events.

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED ABN 11 005 357 522


5
This page has been left blank intentionally

DISCLOSURE SUMMARY


6
SUMMARY OF 2020 FULL YEAR RESULTS AND ASSOCIATED DISCLOSURE MATERIALS

The following disclosure items were lodged separately with the ASX and NZX and can be accessed via the ANZ Shareholder Centre on the Group
website https://www.anz.com/shareholder/centre/ within the disclosures for 2020 Full Year Results.

Available on 29 October 2020 – 2020 Full Year Results
 Consolidated Financial Report, Dividend Announcement & Appendix 4E
 Results Presentation and Investor Discussion Pack
 News Release
 Key Financial Data Summary
Available on or after 9 November 2020
 2020 Annual Report
 2020 The Company Financial Report
 2020 Corporate Governance Statement
 APS 330 Pillar III Disclosure at 30 September 2020
 2020 Climate-Related Financial Disclosures
 2020 ESG Supplement
 United Kingdom Disclosure and Transparency Rules Submission

SUMMARY


7
CONTENTS Page

Guide to Full Year Results 8
Statutory Profit Results 10
Cash Profit Results 11
Financial Performance Summary – Total and continuing operations 12
Key Balance Sheet Metrics 13
Large/Notable Items – continuing operations 14
Full Time Equivalent Staff 19
Other Non-Financial Information 19

SUMMARY


8
Guide to Full Year Results
CORONAVIRUS (COVID-19)
The ongoing COVID-19 pandemic is causing major disruptions to community health and economic activity with wide-ranging impacts across many
business sectors in Australia, New Zealand and globally. Additionally, many of the Group’s customers have been impacted by the COVID-19 pandemic.
As a result during the year, the Group launched support packages for retail and commercial customers in Australia and New Zealand, including the option
of an up to six-month loan repayment deferral. The Group is continuing to work with customers impacted by COVID-19 to return to regular payments and
in some circumstances will provide an extension to loan repayment deferrals for a further period. For further details on customer support and deferral
packages refer to the Credit Risk note in Group Results.
COVID-19 continues to impact the operations of the Group. Where possible, the Group has moved staff to work-at-home arrangements, split teams and
introduced greater distance between those staff performing essential functions on premises. The number of staff working from home continues to vary in
line with changing circumstances and associated government restrictions. Measures have been introduced for staff who need to come to work, with
protective equipment and social distancing in bank branches, and thermal scanning in major buildings.
Regulators and governments have implemented a broad range of measures to promote financial stability in response to COVID-19. Those measures
implemented by governments and regulators in Australia and New Zealand include:
 the Australian Commonwealth Government announced a temporary ‘JobKeeper Payment’ (where eligible businesses significantly impacted by
COVID-19 are able to access a subsidy from the Australian Government to continue paying their eligible employees) and a ‘Coronavirus Small and
Medium Enterprises (SME) Guarantee Scheme’ (where the Australian Commonwealth Government provides a guarantee of 50% to SME lenders to
support new short-term unsecured loans to SMEs);
 a term funding facility (TFF) for the banking system in Australia, whereby the Reserve Bank of Australia (RBA) will provide a three-year funding
facility to Authorised Deposit-taking Institutions (ADIs) at a fixed interest rate of 0.25%;
 the injection of substantial liquidity into the Australian financial system by the RBA through its daily market operations;
 a temporary change to APRA’s expectations with regards to ADIs maintaining bank capital ratios at the “unquestionably strong” benchmark and
advised ADIs to maintain caution in planning capital distributions, including dividend payments;
 the New Zealand Government and the Reserve Bank of New Zealand (RBNZ) have implemented financial support packages for homeowners and
businesses affected by the economic impacts of COVID-19, in which ANZ New Zealand, along with other New Zealand banks, has agreed to
participate. The packages include a Mortgage Repayment Deferral Scheme for residential mortgages, a Business Finance Guarantee Scheme and
a Small Business Cashflow scheme for business customers;
 the RBNZ delayed the start date for increased capital requirements for New Zealand incorporated banks by 12 months while retaining a seven year
transition period;
 the RBNZ added Condition 1D, which restricts ANZ New Zealand, until further notice, from paying dividends or other distributions, other than
discretionary payments payable to holders of AT1 capital instruments; and
 the RBNZ delayed a number of other regulatory initiatives including the delayed implementation of BS11 compliance by 12 months to October 2023.
The ongoing COVID-19 pandemic has also increased the estimation uncertainty in the preparation of these Condensed Consolidated Financial
Statements. The Group has made various accounting estimates for future events in the Condensed Consolidated Financial Statements based on
forecasts of economic conditions which reflect expectations and assumptions as at 30 September 2020 and that the Group believes are reasonable
under the circumstances. There is a considerable degree of judgement involved in preparing these estimates. The underlying assumptions are also
subject to uncertainties which are often outside the control of the Group. Accordingly, actual economic conditions are likely
to be different from those
forecast since anticipated events frequently do not occur as expected, and the effect of those differences may significantly impact accounting estimates
included in the Condensed Consolidated Financial Statements.
While pervasive across the financial statements, the estimation uncertainty is predominantly related to expected credit losses where the Group
recognised a credit impairment charge of $2.7 billion pre-tax in the September 2020 full year, the fair value measurement and recoverable amount
assessments of non-financial assets where the Group recognised an impairment charge of $815 million in respect of two of the Group’s Asian associates
investment and an impairment charge of $77 million in respect of goodwill. For further details of these estimation uncertainties refer to Note 1 of the
Condensed Consolidated Financial Statements.
The ramifications of COVID-19 continue to be uncertain and it remains difficult to predict the impact or duration of the pandemic.

SUMMARY


9
ACCOUNTING STANDARDS ADOPTED
During the September 2020 full year, the Group adopted AASB 16 Leases (AASB 16) and applied a modified retrospective transition approach in
recognising all leases (except for leases of low value assets and short term leases) on the balance sheet based on the present value of remaining lease
payments as of 1 October 2019. Consequently on 1 October 2019 the Group recognised an increase in lease liabilities of $1.7 billion, a right-of-use lease
asset of $1.6 billion, an increase in deferred tax assets of $37 million and a net reduction to opening retained earnings of $88 million. For further details
on key requirements and impacts of the changes refer to Note 1 of the Condensed Consolidated Financial Statements.
The Group early adopted AASB 2019-3 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform from 1 October 2019. The
standard modifies certain hedge accounting requirements to provide relief from the potential effects of the uncertainty caused by interest rate benchmark
reform. For further details on interest rate benchmark reform refer Note 1 of the Condensed Consolidated Financial Statements.

NON-IFRS INFORMATION
Statutory profit is prepared in accordance with recognition and measurement requirements of Australian Accounting Standards, which comply with
International Financial Reporting Standards (IFRS). The Group provides additional measures of performance in the Consolidated Financial Report &
Dividend Announcement which are prepared on a basis other than in accordance with accounting standards. The guidance provided in Australian
Securities and Investments Commission (ASIC) Regulatory Guide 230 has been followed when presenting this information.
Cash Profit
Cash profit, a non-IFRS measure, represents ANZ’s preferred measure of the result of the core business activities of the Group, enabling readers to
assess Group and Divisional performance against prior periods and against peer institutions. The adjustments made in arriving at cash profit are included
in statutory profit which is subject to audit within the context of the external auditor’s audit of the 2020 ANZ Annual Financial Statements (when released).
Cash profit is not subject to audit by the external auditor. The external auditor has informed the Audit Committee that cash profit adjustments have been
determined on a consistent basis across each period presented.
 Adjustments between statutory profit and cash profit - To calculate cash profit, the Group excludes non-core items from statutory profit. Refer to
pages 75 to 79 for adjustments between statutory and cash profit.
 Large/notable items within cash profit - The Group’s cash profit result from continuing operations includes a number of items collectively referred
to as large/notable items. While these items form part of cash profit, given their nature and significance, they have been presented separately with
comparative information, where relevant, to provide transparency and aid comparison. Refer to pages 14 to 18 for details of large/notable items.
DISCONTINUED OPERATIONS
The financial results of the divested Wealth Australia businesses and associated Group reclassification and consolidation impacts are treated as
discontinued operations from a financial reporting perspective. The Group Income Statement and Statement of Comprehensive Income show
discontinued operations separately from continuing operations in a separate line item ‘Profit/(Loss) from discontinued operations’.
 Sale to IOOF Holdings Limited (IOOF) - In October 2017, the Group announced it had agreed to sell its OnePath pensions and investments
(OnePath P&I) business and Aligned Dealer Groups (ADGs) businesses to IOOF. The sale of the ADG business completed on 1 October 2018 and
the OnePath P&I business completed on 31 January 2020.
 Sale to Zurich Financial Services Australia (Zurich) - In December 2017, the Group announced it had agreed to sell its
life insurance business to
Zurich and the transaction completed on 31 May 2019.
Included in the ‘Cash loss from discontinued operations’ is:
 an $18 million loss on disposal ($13 million loss after tax) was recognised in the September 2020 full year attributable to sale completion
costs. The September 2019 full year included a $23 million loss ($81 million loss after tax) attributable to sale related adjustments and write-
downs, the reversal of the life-to-date cash profit adjustments on the revaluation of policy liabilities sold to Zurich, partially offset by the
recycling on sale completion of gains previously deferred in equity reserves; and
 customer remediation which includes provisions for expected refunds to customers and related remediation costs associated with
inappropriate advice or services not provided in the pensions and investments and life insurance businesses, as follows:


Half Year Full Year

Sep-20 Mar-20

Sep-20 Sep-19
$M $M $M $M
Customer remediation (pre-tax) 2 124

126 241
Customer remediation (post-tax) 2 94

96 207

SUMMARY


10
Statutory Profit Results




Half Year

Full Year

Sep 20
$M
Mar 20
$M Movt

Sep 20
$M
Sep 19
$M Movt
Net interest income 6,827 7,222 -5% 14,049 14,339 -2%
Other operating income
1,917 1,671 15% 3,588 4,446 -19%
Operating income
8,744 8,893 -2% 17,637 18,785 -6%
Operating expenses (4,778) (4,605) 4% (9,383) (9,071) 3%
Profit before credit impairment and income tax
3,966 4,288 -8% 8,254 9,714 -15%
Credit impairment charge (1,064) (1,674) -36% (2,738) (794) large
Profit before income tax
2,902 2,614 11% 5,516 8,920 -38%
Income tax expense (862) (978) -12% (1,840) (2,609) -29%
Non-controlling interests
- (1) -100% (1) (15) -93%
Profit attributable to shareholders of the Company from continuing operations
2,040 1,635 25% 3,675 6,296 -42%
Profit/(Loss) from discontinued operations (8) (90) -91% (98) (343) -71%
Profit attributable to shareholders of the Company
2,032 1,545 32% 3,577 5,953 -40%

Earnings Per Ordinary Share (cents)

Half Year Full Year

Reference
Page
Sep 20 Mar 20 Movt Sep 20 Sep 19 Movt
Basic
101
71.8 54.6 32% 126.4 210.0 -40%
Diluted 101
66.3 51.5 29% 118.0 201.9 -42%


Half Year Full Year

Reference
Page
Sep 20 Mar 20 Sep 20 Sep 19
Ordinary Share Dividends (cents)
Interim
1,2
100 - 25 25 80
Final

- fully franked
1,2
100 35 - 35 -
- partially franked
2,3
100 - - - 80
Total 100
35 25 60 160
Ordinary share dividend payout ratio
4
100 48.9% 45.9% 47.6% 76.2%
Profitability Ratios

Return on average ordinary shareholders' equity
5
6.6% 5.1% 5.9% 10.0%
Return on average assets
6
0.38% 0.30% 0.34% 0.61%
Net interest margin
1.57% 1.69% 1.63% 1.75%
Net interest income to average credit RWAs
6
3.66% 3.96% 3.81% 4.13%
Efficiency Ratios


Operating expenses to operating income 55.2% 53.8% 54.5% 50.2%
Operating expenses to average assets
6
0.91% 0.92% 0.91% 0.97%
Credit Impairment Charge/(Release)


Individually assessed credit impairment charge ($M) 395 626 1,021 777
Collectively assessed credit impairment charge/(release) ($M)
669 1,048 1,717 17
Total credit impairment charge ($M) 105
1,064 1,674 2,738 794
Individually assessed credit impairment charge as a % of average gross loans and advances
6,7
0.12% 0.20% 0.16% 0.13%
Total credit impairment charge as a % of average gross loans and advances
6,7
0.33% 0.53% 0.43% 0.13%
1.
Fully franked for Australian tax purposes (30% tax rate) for the proposed 2020 final dividend, the 2020 interim dividend and the 2019 interim dividend.
2.
Carry New Zealand imputation credits of NZD 4 cents for the proposed 2020 final dividend (2020 interim dividend: NZD 3 cents; 2019 final dividend: NZD 9 cents; 2019 interim dividend:
NZD 9 cents).
3.
Partially franked at 70% for Australian tax purposes (30% tax rate) for the 2019 final dividend.
4.
The dividend payout ratio for the September 2020 half was calculated using the proposed 2020 final dividend determined when the decision on the 2020 interim dividend has been made.
The proposed 2020 final dividend of $994 million is based on the forecast number of ordinary shares on issue at the dividend record date. Dividend payout ratios for the March 2020 half and
September 2019 full year were calculated using actual dividend paid of $709 million and $4,535 million respectively.
5.
Average ordinary shareholders’ equity excludes non-controlling interests.
6.
Average assets and average credit RWAs include assets held for sale.
7.
Credit impairment charge used in the ratio relates to gross loans and advances and off-balance sheet commitments - undrawn and contingent liabilities.

SUMMARY


11
Cash Profit Results
1





Half Year Full Year

Sep 20
$M
Mar 20
$M Movt
Sep 20
$M
Sep 19
$M Movt
Net interest income 6,827 7,222 -5% 14,049 14,339 -2%
Other operating income
2,346 1,357 73% 3,703 4,690 -21%
Operating income
9,173 8,579 7% 17,752 19,029 -7%
Operating expenses (4,778) (4,605) 4% (9,383) (9,071) 3%
Profit before credit impairment and income tax
4,395 3,974 11% 8,369 9,958 -16%
Credit impairment charge (1,064) (1,674) -36% (2,738) (795) large
Profit before income tax
3,331 2,300 45% 5,631 9,163 -39%
Income tax expense (986) (886) 11% (1,872) (2,678) -30%
Non-controlling interests
- (1) -100% (1) (15) -93%
Cash profit from continuing operations
2,345 1,413 66% 3,758 6,470 -42%
Cash profit/(loss) from discontinued operations (8) (90) -91% (98) (309) -68%
Cash profit
2,337 1,323 77% 3,660 6,161 -41%

Earnings Per Ordinary Share (cents)

Half Year Full Year

Sep 20 Mar 20 Movt Sep 20 Sep 19 Movt
Basic
82.5 46.7 77% 129.3 216.7 -40%
Diluted
75.8 44.7 70% 120.6 208.1 -42%


Half Year Full Year

Reference
Page
Sep 20 Mar 20 Sep 20 Sep 19
Ordinary Share Dividends
Ordinary share dividend payout ratio
2
42.5% 53.6% 46.5% 73.6%
Profitability Ratios

Return on average ordinary shareholders' equity
3
7.6% 4.4% 6.0% 10.4%
Return on average assets
4
0.43% 0.26% 0.35% 0.63%
Net interest margin
1.57% 1.68% 1.63% 1.75%
Net interest income to average credit RWAs
5
3.66% 3.96% 3.81% 4.13%
Efficiency Ratios

Operating expenses to operating income 52.6% 55.2% 53.8% 49.5%
Operating expenses to average assets
5
0.90% 0.92% 0.91% 0.97%
Credit Impairment Charge/(Release)

Individually assessed credit impairment charge ($M) 31 395 626 1,021 778
Collectively assessed credit impairment charge/(release) ($M) 31
669 1,048 1,717 17
Total credit impairment charge ($M) 31
1,064 1,674 2,738 795
Individually assessed credit impairment charge as a % of average gross loans and advances
4,5
0.12% 0.20% 0.16% 0.13%
Total credit impairment charge as a % of average gross loans and advances
4,5
0.33% 0.53% 0.43% 0.13%
Cash Profit/(Loss) By Division Half Year Full Year

Sep 20
$M
Mar 20
$M Movt
Sep 20
$M
Sep 19
$M Movt
Australia Retail and Commercial 1,123 1,214 -7% 2,337 3,195 -27%
Institutional
1,244 610 large 1,854 1,828 1%
New Zealand
450 567 -21% 1,017 1,399 -27%
Pacific
(82) 20 large (62) 59 large
TSO and Group Centre
(390) (998) -61% (1,388) (11) large
Discontinued Operations
(8) (90) -91% (98) (309) -68%
Cash profit
2,337 1,323 77% 3,660 6,161 -41%
1.
Cash profit excludes non-core items included in statutory profit and is provided to assist readers in understanding the results of the core business activities of the Group. Refer to pages 75 to
79 for the reconciliation between statutory and cash profit. Refer to pages 14 to 18 for information on large/notable items included in continuing cash profit.
2.
The dividend payout ratio for the September 2020 half was calculated using the proposed 2020 final dividend determined when the decision on the 2020 interim dividend has been made.
The proposed 2020 final dividend of $994 million is based on the forecast number of ordinary shares on issue at the dividend record date. Dividend payout ratios for the March 2020 half and
September 2019 full year were calculated using actual dividend paid of $709 million and $4,535 million respectively.
3.
Average ordinary shareholders’ equity excludes non-controlling interests.
4.
Average assets and average credit RWAs include assets held for sale.
5.
Credit impairment charge used in the ratio relates to gross loans and advances and off-balance sheet commitments - undrawn and contingent liabilities.

SUMMARY
12
Financial Performance Summary – Total and continuing operations

For financial reporting purposes the results of discontinued op
erations are shown in a separate line item ‘Profit/(Loss) from
discontinued operations’. In the table below, Total cash profit
- inclusive of discontinued operations and Cash
profit - continuing operations are shown. For the purpose of un
derstanding the impact of discontinued operations across variou
s Income Statement categories, Total cash profit - inclusive of
discontinued operations is presented such that
each Income Statement line item is inclusive of discontinued op
erations.



Half Year

Full Year







Total - inclusive of
discontinued operations Movement

Continuing operations Movement

Total - inclusive of
discontinued operations Movement

Continuing operations Movement


Sep 20
$M
Mar 20
$M
Sep 20
v. Mar 20

Sep 20
$M
Mar 20
$M
Sep 20
v. Mar 20

Sep 20
$M
Sep 19
$M
Sep 20
v. Sep 19

Sep 20
$M
Sep 19
$M
Sep 20
v. Sep 19

Net interest income
6,827
7,217
-5%
6,827
7,222
-5%
14,044
14,263
-2%
14,049
14,339
-2%
Other operating income
2,409
1,349
79%
2,346
1,357
73%
3,758
4,950
-24%
3,703
4,690
-21%
Operating income
9,236
8,566
8%
9,173
8,579
7%
17,802
19,213
-7%
17,752
19,029
-7%
Operating expenses
(4,858)
(4,725)
3%
(4,778)
(4,605)
4%
(9,583)
(9,520)
1%
(9,383)
(9,071)
3%
Profit before credit im
pairment and income tax
4,378
3,841
14%
4,395
3,974
11%
8,219
9,693
-15%
8,369
9,958
-16%
Credit impairment charge
(1,064)
(1,674)
-36%
(1,064)
(1,674)
-36%
(2,738)
(794)
245%
(2,738)
(795)
244%
Profit before income tax
3,314
2,167
53%
3,331
2,300
45%
5,481
8,899
-38%
5,631
9,163
-39%
Income tax expense
(977)
(843)
16%
(986)
(886)
11%
(1,820)
(2,723)
-33%
(1,872)
(2,678)
-30%
Non-controlling interests
-
(1)
-100%
-
(1)
-100%
(1)
(15)
-93%
(1)
(15)
-93%
Cash Profit
2,337
1,323
77%

2,345
1,413
66%

3,660
6,161
-41%

3,758
6,470
-42%

Average interest earning assets
869,110
856,652
1%

869,110
856,652
1%

862,882
813,219
6%

862,882
813,219
6%

Average deposits and other borrowings
691,097
669,342
3%
690,104
669,342
3%
680,219
638,384
7%
679,336
638,384
6%
Funds under management
1

36,714
35,665
3%
36,714
35,665
3%
36,714
84,171
-56%
36,714
35,754
3%
Earnings per share (basic)
82.5
46.7
77%
82.8
49.9
66%
129.3
216.7
-40%
132.7
227.6
-42%

Ordinary share di
vidend payout ratio
42.5%
53.6%
42.4%
50.2%
46.5%
73.6%
45.3%
70.1%

Profitability Ratios

Return on average ordinary shareholders' equity
2

7.6%
4.4%
7.6%
4.7%
6.0%
10.4%
6.2%
10.9%

Return on average assets
0.43%
0.26%
0.43%
0.28%
0.35%
0.63%
0.36%
0.68%

Net interest margin
1.57%
1.68%
1.57%
1.69%
1.63%
1.75%
1.63%
1.76%

Net interest income to average credit RWAs
3.66%
3.96%
3.66%
3.96%
3.81%
4.13%
3.81%
4.15%

Efficiency Ratios








Operating expenses to operating income
52.6%
55.2%

52.1%
53.7%

53.8%
49.5%

52.9%
47.7%

Operating expenses to average assets
0.90%
0.92%

0.88%
0.90%
0.91%
0.97%
0.89%
0.95%

FTE
3

38,579
38,939
-1%
37,506
37,834
-1%
38,579
39,060
-1%
37,506
37,588
0%
1.
Funds under management for continuing operations relates to retained wealth management operations in the New Zealand division
and Australia Retail and Commercial division.
2.
Average ordinary sh
areholders’ equity excludes
non-controlling interests.
3.
The discontinued operations FTE is based on an estimate of the staff working in the divested businesses using an allocation me
thodology and includes staff retained in the Group working on transitioning the sold businesses to the purchasers.

SUMMARY


13
Key Balance Sheet Metrics
1



As at Movement

Reference
Page
Sep 20 Mar 20 Sep 19
Sep 20
v. Mar 20
Sep 20
v. Sep 19
Capital Management


Common Equity Tier 1 (Level 2)

- APRA Basel 3 45
11.3% 10.8% 11.4%
- Internationally Comparable Basel 3
2
45 16.7% 15.5% 16.4%
Credit risk weighted assets ($B) 46
360.0 386.0 358.1 -7% 1%
Total risk weighted assets ($B) 45
429.4 449.0 417.0 -4% 3%
APRA Leverage Ratio 48
5.4% 5.0% 5.6%
Balance Sheet: Key Items


Gross loans and advances ($B) 622.1 661.3 618.8 -6% 1%
Net loans and advances ($B)
617.1 656.6 615.3 -6% 0%
Total assets ($B)
1,042.3 1,150.0 981.1 -9% 6%
Customer deposits ($B)
552.4 566.5 511.8 -2% 8%
Total equity ($B)
61.3 61.4 60.8 0% 1%

As at Movement
Liquidity Risk
Reference
Page
Sep 20 Mar 20 Sep 19
Sep 20
v. Mar 20
Sep 20
v. Sep 19
Liquidity Coverage Ratio (half year average) 43 139% 139% 143% 0% -4%
Net Stable Funding Ratio 44
124% 118% 116% 6% 7%

As at Movement

Reference
Page
Sep 20 Mar 20 Sep 19
Sep 20
v. Mar 20
Sep 20
v. Sep 19
Impaired Assets


Gross impaired assets ($M) 35
2,459 2,599 2,029 -5% 21%
Gross impaired assets as a % of gross loans and advances
0.40% 0.39% 0.33%
Net impaired assets ($M) 35
1,568 1,506 1,215 4% 29%
Net impaired assets as a % of shareholders' equity
2.6% 2.5% 2.0%
Individually assessed provision ($M) 33 891 1,093 813 -18% 10%
Individually assessed provision as a % of gross impaired assets
36.2% 42.1% 40.1%
Collectively assessed provision ($M) 33
5,008 4,501 3,377 11% 48%
Collectively assessed provision as a % of credit risk weighted assets
1.39% 1.17% 0.94%
Net Tangible Assets
Net tangible assets attributable to ordinary shareholders ($B)
3
56.9 56.4 55.5 1% 3%
Net tangible assets per ordinary share ($)
20.04 19.89 19.59 1% 2%


As at Movement
Net Loans And Advances by division
Sep 20
$B
Mar 20
$B
Sep 19
$B
Sep 20
v. Mar 20
Sep 20
v. Sep 19
Australia Retail and Commercial 339.4 329.8 331.9 3% 2%
Institutional
4
157.6 199.4 164.5 -21% -4%
New Zealand
5,6
116.6 125.2 116.7 -7% 0%
Pacific
1.9 2.2 2.1 -14% -10%
TSO and Group Centre
1.6 - 0.1 n/a large
Net loans and advances by division
617.1 656.6 615.3 -6% 0%
1.
Balance Sheet amounts and metrics include assets and liabilities held for sale unless otherwise stated.
2.
See page 47 for further details regarding the differences between APRA Basel 3 and Internationally Comparable Basel 3 standards.
3.
Equals total shareholders’ equity less total non-controlling interests, goodwill and other intangible assets.
4.
Excluding the impact of foreign currency translation, the Institutional division Net loans and advances decreased -17% compared to March 2020 and -3% compared to September 2019.
5.
Excluding the impact of foreign currency translation, the New Zealand division Net loans and advances decreased -2% compared to March 2020 and were flat to September 2019.
6.
Net loans and advances in the New Zealand division was impacted by the sale of UDC in September 2020 (-$3.4 billion).

SUMMARY


14
Large/Notable Items – continuing operations
Large/notable items included in cash profit from continuing operations are described below.
Divestment impacts
In the September 2020 half year and the September 2019 full year, the Group completed a number of divestments (no divestments were announced or
completed in the March 2020 half). As these divestments did not qualify as discontinued operations under accounting standards they form part of
continuing operations. The financial impacts from these divestments are summarised below including the business results for those divestments that
have completed:


Gain/(Loss) on sale from divestments Completed divestment business results
1

Half Year Full Year Half Year Full Year
Cash Profit Impact
Sep 20
$M
Mar 20
$M
Sep 20
$M
Sep 19
$M
Sep 20
$M
Mar 20
$M
Sep 20
$M
Sep 19
$M
Paymark - - - 37 - - - 4
Cambodia JV - - - 10 - - - 31
OPL NZ
- - - 204 - - - 14
PNG Retail, Commercial and SME
- - - 1 - - - 9
UDC
(44) - (44) - 41 38 79 95
Profit/(Loss) before income tax
(44) - (44) 252 41 38 79 153
Income tax benefit/(expense) and non-controlling interests 10 - 10 (47) (11) (11) (22) (50)
Cash profit/(loss) from continuing operations
(34) - (34) 205 30 27 57 103
1.
For business results that relate to completed divestments, comparative information has been restated for items included in the September 2020 half.

 Paymark Limited (Paymark)
In January 2018, the Group entered into an agreement to sell its 25% shareholding in Paymark Limited to Ingenico Group. The transaction was
completed on 11 January 2019. The Group recognised a net gain on sale of $37 million after tax during the September 2019 full year.
 ANZ Royal Bank (Cambodia) Ltd (Cambodia JV)
In May 2018, the Group announced it had reached an agreement to sell its 55% stake in Cambodia JV to J Trust, a Japanese diversified financial
holding company. The transaction completed on 19 August 2019 and the Group recognised a $10 million net gain on sale after tax in the September
2019 full year, comprising a $30 million release from foreign currency translation reserve, partially offset by a $17 million dividend withholding tax
associated with the sale completion and $3 million of asset write-offs.
 OnePath Life (NZ) Ltd (OPL NZ)
In May 2018, the Group announced that it had agreed to sell OPL NZ to Cigna Corporation. The transaction completed on 30 November 2018 and
the Group recognised a $170 million net gain on sale after tax in the September 2019 full year, comprising a $115 million gain on the reversal of the
life-to-date cash profit adjustments on the revaluation of policy liabilities sold, a $63 million gain on sale, a $26 million release from the foreign
currency translation reserve and a $34 million tax charge.
 Papua New Guinea Retail, Commercial and Small-Medium Sized Enterprise businesses (PNG Retail, Commercial and SME)
In June 2018, the Group announced it had entered into an agreement to sell its Retail, Commercial and Small-Medium Sized Enterprise (SME)
banking businesses in Papua New Guinea to Kina Bank. The transaction completed on 23 September 2019 and the Group recognised a gain of $1
million after tax net of costs associated with the sale.
 UDC Finance (UDC)
On 2 June 2020, the Group announced that it had entered into a conditional agreement to sell UDC to Shinsei Bank Limited (Shinsei Bank) following
a strategic review of the Group investment in UDC Finance. Following regulatory approval, the sale was completed on 1 September 2020. The Group
recognised a loss after tax of $34 million in the September 2020 half comprising a loss on disposal of $29 million, a $31 million loss on the reversal of
the life-to-date cash profit adjustments on the economic hedges of assets sold, $6 million of transaction costs, partially offset by a $22 million release
from the foreign currency translation reserve, and a $10 million tax credit.
Other large/notable items
 Customer remediation
Customer remediation includes provisions for expected refunds to customers, remediation project costs and related customer and regulatory claims,
penalties and litigation outcomes.
Half Year Full Year

Sep 20 Mar 20 Sep 20 Sep 19
Cash Profit Impact $M $M $M $M
Operating income
(116) (58) (174) (212)
Operating expenses (138) (71) (209) (373)
Profit/(Loss) before income tax
(254) (129) (383) (585)
Income tax benefit/(expense) and non-controlling interests 66 38 104 110
Cash profit/(loss) from continuing operations
(188) (91) (279) (475)

SUMMARY


15
 Royal Commission legal costs
External legal costs associated with responding to the Banking Royal Commission, which completed in February 2019, were $10 million after tax for
the September 2019 full year.
 Restructuring
The Group recognised restructuring expenses of $115 million after tax in the September 2020 full year (Sep 20 half: $41 million; Mar 20 half: $74
million; Sep 19 full year: $54 million) largely relating to business and property changes in Australia Retail and Commercial division.
 Lease-related items
In the September 2020 full year, the Group recognised $72 million after tax of additional charges associated with the adoption of the new lease
accounting standard on 1 October 2019 (Sep 20 half: $14 million; Mar 20 half: $58 million). Comparative information has not been restated for the
adoption of the new lease accounting standard.
 Asian associates impairment
During the March 2020 half, the Group recognised a $815 million impairment after tax in respect of two of the Group’s equity accounted investments
to adjust their carrying values in line with their value-in-use calculations (refer Note 1 (iv) of the Condensed Consolidated Financial Statements).
AMMB Holdings Berhad (AmBank) was impaired by $595 million and PT Bank Pan Indonesia (PT Panin) was impaired by $220 million. This had no
impact to capital since it results in an equivalent reduction in capital deductions.
 Asian associate AASB 9 adjustment
When the Group adopted AASB 9 Financial Instruments on 1 October 2018, an estimate of PT Panin’s transition adjustment was recognised through
opening retained earnings to align accounting policies. PT Panin adopted AASB 9 during the current financial year recognising a transition
adjustment in retained earnings. The $66 million after tax represents the Group’s equity accounted share of the transition adjustment net of amounts
adjusted by the Group in 1 October 2018 to align accounting policies. This had no impact to capital since it results in an equivalent reduction in
capital deductions.
 Accelerated software amortisation
During the September 2020 half, the Group amended the application of its software amortisation policy to reflect the shorter useful life of various
types of software, including regulatory and compliance focused assets and purchased assets. These changes reflect the Group’s rapidly changing
technology and business needs and ongoing reinvestments in purchased and internally developed software to ensure asset remains fit for purpose.
As a result of these changes, the Group recognised accelerated amortisation of $138 million after tax during the September 2020 half. This had no
impact to capital since it results in an equivalent reduction in capital deductions.
 Goodwill write-off
During the September 2020 full year the Group wrote off $77 million after tax of goodwill previously held in the Pacific and New Zealand Divisions:
 Pacific Division - The impact of COVID-19 on the economies of the Pacific has been significant and conditions are expected to take some time
to recover. Goodwill of $50 million after tax for the Division was impaired in the September 2020 half. No further impairments were required for
the carrying values of other assets in the Pacific.
 New Zealand Division - As a result of changes in the economic environment and outlook, the Group has announced its intention to begin
winding up the Bonus Bonds business (“Bonus Bonds”, a managed investment product) in New Zealand no later than 31 October 2020. As a
result, the Group wrote off the associated goodwill of $27 million after tax in the September 2020 half.
This had no impact to capital since it results in an equivalent reduction in capital deductions.

SUMMARY
16
Large/Notable items - continuing operations

Cash Profit Results
Half Year
Full Year

Sep 20
Large/
notables
Sep 20
ex. Large/
notables Mar 20
Large/
notables
Mar 20
ex. Large/
notables
Movt
ex. Large/
notables
Sep 20
Large/
notables
Sep 20
ex. Large/
notables Sep 19
Large/
notables
Sep 19
ex. Large/
notables
Movt
ex. Large/
notables

$M
$M
$M
$M
$M
$M
%
$M
$M
$M $M $M $M %
Net interest income
6,827
(44)
6,871
7,222
32
7,190
-4%
14,049
(12)
14,061
14,339
51 14,288
-2%
Other operating income
2,346
(127)
2,473
1,357
(838) 2,195
13%
3,703
(965)
4,668
4,690
235
4,455
5%
Operating income
9,173
(171)
9,344
8,579
(806) 9,385
0%
17,752
(977)
18,729
19,029
286 18,743
0%
Operating expenses
(4,778)
(501)
(4,277)
(4,605)
(268) (4,337)
-1%
(9,383)
(769)
(8,614)
(9,071)
(544) (8,527)
1%
Profit before credit im
pairment and income tax
4,395
(672)
5,067
3,974 (1,074) 5,048
0%
8,369
(1,746)
10,115
9,958
(258) 10,216
-1%
Credit impairment charge
(1,064)
(3)
(1,061)
(1,674)
(20) (1,654)
-36%
(2,738)
(23)
(2,715)
(795)
(14)
(781)
large
Profit/(Loss) before income tax
3,331
(675)
4,006
2,300 (1,094) 3,394
18%
5,631
(1,769)
7,400
9,163
(272)
9,435
-22%
Income tax benefit/(expense)
and non-controlling interests
(986)
147
(1,133)
(887)
83
(970)
17%
(1,873)
230
(2,103)
(2,693)
41 (2,734)
-23%
Cash profit/(loss) from continuing operations
2,345
(528)
2,873
1,413 (1,011) 2,424
19%
3,758
(1,539)
5,297
6,470
(231)
6,701
-21%

Cash Profit/(Loss) By Division
Half Year

Full Year

Sep 20
Large/
notables
Sep 20
ex. Large/
notables Mar 20
Large/
notables
Mar 20
ex. Large/
notables
Movt
ex. Large/
notables
Sep 20
Large/
notables
Sep 20
ex. Large/
notables Sep 19
Large/
notables
Sep 19
ex. Large/
notables
Movt
ex. Large/
notables

$M
$M
$M
$M
$M
$M
%
$M
$M
$M $M $M $M %
Australia Retail and Commercial
1,123
(168)
1,291
1,214
(153) 1,367
-6%
2,337
(321)
2,658
3,195
(386)
3,581
-26%
Institutional
1,244
(64)
1,308
610
(12)
622
large
1,854
(76)
1,930
1,828
(24)
1,852
4%
New Zealand
450
(59)
509
567
(5)
572
-11%
1,017
(64)
1,081
1,399
15
1,384
-22%
Pacific
(82)
(65)
(17)
20
(3)
23
large
(62)
(68)
6
59
(14)
73
-92%
TSO and Group Centre
1

(390)
(172)
(218)
(998)
(838)
(160)
36%
(1,388)
(1,010)
(378)
(11)
178
(189)
100%
Cash profit/(loss) from continuing operations
2,345
(528)
2,873
1,413 (1,011) 2,424
19%
3,758
(1,539)
5,297
6,470
(231)
6,701
-21%
1.
TSO and Group Centre includes the Gain/(Loss) on sale from divestments in the September 2020 full year and September 2019 full
year. It also includes a component of
the divested business results of
UDC, for all periods presented, and Paymark in the Sept
ember 2019 full year.

SUMMARY
17
Large/Notable items - continuing operations


Within continuing cash profit, the Group has recognised some la
rge/notable items. These items are shown in the tables below.








September 2020 Full Year

September 2019 Full Year

Large/notable items include
d in continuing cash profit

Large/notable items include
d in continuing cash profit

Gain/(Loss)
on sale from
divestments
$M
Divested
business
results
1

$M
Customer
remediation
$M
Goodwill
write-off
$M
Restructur-
ing
$M
Lease-
related
items
$M
Accelerated
software
amortisation
$M
Asian
associates
impairment
$M
Asian
associate
AASB 9
adjustment
$M
Total
$M
Gain/(Loss)
on sale from
divestments
$M
Divested
business
results
1

$M
Customer
remediation
$M
Royal
Commission
legal costs
$M
Restructur-
ing
$M
Total
$M
Cash Profit
Net interest income
-
134
(106)
-
-
(40)
-
-
-
(12)
-
192
(141)
-
-
51
Other operating income
(38)
2
(68)
-
-
22
-
(815)
(68)
(965)
252
54
(71)
-
-
235
Operating income
(38)
136
(174)
-
-
(18)
-
(815)
(68)
(977)
252
246
(212)
-
-
286
Operating expenses
(6)
(34)
(209)
(77)
(161)
(85)
(197)
-
-
(769)
-
(79)
(373)
(15)
(77)
(544)
Profit before credit impairment and income tax
(44)
102
(383)
(77)
(161)
(103)
(197)
(815)
(68)
(1,746)
252
167
(585)
(15)
(77)
(258)
Credit impairment charge
-
(23)
-
-
-
-
-
-
-
(23)
-
(14)
-
-
-
(14)
Profit before income tax
(44)
79
(383)
(77)
(161)
(103)
(197)
(815)
(68)
(1,769)
252
153
(585)
(15)
(77)
(272)
Income tax benef
it/(expense)
and non-controlling interests
10
(22)
104
-
46
31
59
-
2
230
(47)
(50)
110
5
23
41
Cash profit/(loss) from continuing operations
(34)
57
(279)
(77)
(115)
(72)
(138)
(815)
(66)
(1,539)
205
103
(475)
(10)
(54)
(231)

September 2020 Half Year


March 2020 Half Year

Large/notable items in
cluded in continuing
cash profit

Large/n
otable items included in
continuing cash profit

Gain/(Loss)
on sale from
divestments
$M
Divested
business
results
1

$M
Customer
remediation
$M
Goodwill
write-off
$M
Restructur-
ing
$M
Lease-
related
items
$M
Accelerated
software
amortisation
$M
Asian
associates
impairment
$M
Asian
associate
AASB 9
adjustment
$M
Total
$M
Divested
business
results
1

$M
Customer
remediation
$M
Restructur-
ing
$M
Lease-
related
items
$M
Asian
associates
impairment
$M
Total
$M
Cash Profit

Net interest income
-
59
(84)
-
-
(19)
-
-
-
(44)
75
(22)
-
(21)
-
32
Other operating income
(38)
1
(32)
-
-
10
-
-
(68)
(127)
1
(36)
-
12
(815)
(838)
Operating income
(38)
60
(116)
-
-
(9)
-
-
(68)
(171)
76
(58)
-
(9)
(815)
(806)
Operating expenses
(6)
(16)
(138)
(77)
(56)
(11)
(197)
-
-
(501)
(18)
(71)
(105)
(74)
-
(268)
Profit before credit impairment and income tax
(44)
44
(254)
(77)
(56)
(20)
(197)
-
(68)
(672)
58
(129)
(105)
(83)
(815)
(1,074)
Credit impairment charge
-
(3)
-
-
-
-
-
-
-
(3)
(20) - - - -
(20)
Profit before income tax
(44)
41
(254)
(77)
(56)
(20)
(197)
-
(68)
(675)
38
(129)
(105)
(83)
(815)
(1,094)
Income tax benef
it/(expense)
and non-controlling interests
10
(11)
66
-
15
6
59
-
2
147
(11)
38
31
25
-
83
Cash profit/(loss) from continuing operations
(34)
30
(188)
(77)
(41)
(14)
(138)
-
(66)
(528)
27
(91)
(74)
(58)
(815)
(1,011)
1.
For business results that relate to completed divestments, comparative information has been restated for large/notable items i
ncluded in the September 2020 half.

SUMMARY
18
Large/Notable items - continuing operations

Within continuing cash profit, the Group has recognised some la
rge/notable items. The impact of these items on the divisional
results are shown in the tables below.





September 2020 Full Year

September 2019 Full Year

Large/notable items include
d in continuing cash profit

Large/notable items include
d in continuing cash profit

Gain/(Loss)
on sale from
divestments
$M
Divested
business
results
1

$M
Customer
remediation
$M
Goodwill
write-offs
$M
Restructur-
ing
$M
Lease-
related
items
$M
Accelerated
software
amortisation
$M
Asian
associates
impairment
$M
Asian
associate
AASB 9
adjustment
$M
Total
$M
Gain/(Loss)
on sale from
divestments
$M
Divested
business
results
1

$M
Customer
remediation
$M
Royal
Commission
legal costs
$M
Restructur-
ing
$M
Total
$M
Profit before income tax
Australia Retail and Commercial
-
-
(270)
-
(89)
(68)
(31)
-
-
(458)
-
-
(447)
-
(20)
(467)
Institutional
-
-
(20)
-
(17)
(24)
(38)
-
-
(99)
-
46
(49)
-
(16)
(19)
New Zealand
-
73
(76)
(27)
(31)
(4)
(11)
-
-
(76)
-
105
(75)
-
(8)
22
Pacific
-
-
(17)
(50)
-
(3)
-
-
-
(70)
-
-
(14)
-
-
(14)
TSO and Group Centre
2

(44)
6
-
-
(24)
(4)
(117)
(815)
(68)
(1,066)
252
2
-
(15)
(33)
206
Profit before income tax
(44)
79
(383)
(77)
(161)
(103)
(197)
(815)
(68)
(1,769)
252
153
(585)
(15)
(77)
(272)
Income tax benef
it/(expense)
and non-controlling interests
10
(22)
104
-
46
31
59
-
2
230
(47)
(50)
110
5
23
41
Cash profit/(loss) from continuing operations
(34)
57
(279)
(77)
(115)
(72)
(138)
(815)
(66)
(1,539)
205
103
(475)
(10)
(54)
(231)

September 2020 Half Year

March 2020 Half Year

Large/notable items include
d in continuing cash profit

Large/notable items include
d in continuing cash profit

Gain/(Loss)
on sale from
divestments
$M
Divested
business
results
1

$M
Customer
remediation
$M
Goodwill
write-off
$M
Restructur-
ing
$M
Lease-
related
items
$M
Accelerated
software
amortisation
$M
Asian
associates
impairment
$M
Asian
associate
AASB 9
adjustment
$M
Total
$M
Divested
business
results
1

$M
Customer
remediation
$M
Restructur-
ing
$M
Lease-
related
items
$M
Asian
associates
impairment
$M
Total
$M
Profit before income tax
Australia Retail and Commercial
-
-
(169)
-
(4)
(36)
(31)
-
-
(240)
-
(101)
(85)
(32)
-
(218)
Institutional
-
-
(20)
-
(13)
(13)
(38)
-
-
(84)
-
-
(4)
(11)
-
(15)
New Zealand
-
39
(50)
(27)
(20)
(1)
(11)
-
-
(70)
34
(26)
(11)
(3)
-
(6)
Pacific
-
-
(15)
(50)
-
(1)
-
-
-
(66)
-
(2)
-
(2)
-
(4)
TSO and Group Centre
2

(44)
2
-
-
(19)
31
(117)
-
(68)
(215)
4
-
(5)
(35)
(815)
(851)
Profit before income tax
(44)
41
(254)
(77)
(56)
(20)
(197)
-
(68)
(675)
38
(129)
(105)
(83)
(815)
(1,094)
Income tax benef
it/(expense)
and non-controlling interests
10
(11)
66
-
15
6
59
-
2
147
(11)
38
31
25
-
83
Cash profit/(loss) from continuing operations
(34)
30
(188)
(77)
(41)
(14)
(138)
-
(66)
(528)
27
(91)
(74)
(58)
(815)
(1,011)
1.
For business results that relate to completed divestments, comparative information has been restated for large/notable items i
ncluded in the September 2020 half.
2.
TSO and Group Centre includes the Gain/(Loss) on sale from divestments in the September 2020 full year and September 2019 full
year. It also includes a component of
the divested business results for the complet
ed sale of UDC, for all periods presented,
and Paymark in the September 2019
full year.

SUMMARY


19
Full Time Equivalent Staff

As at 30 September 2020, ANZ employed 38,579 staff (Mar 20: 38,939; Sep 19: 39,060) on a full-time equivalent (FTE) basis.

Division
Half Year Full Year

Sep 20 Mar 20 Movt Sep 20 Sep 19 Movt
Australia Retail and Commercial 14,078 14,061 0% 14,078 13,903 1%
Institutional
5,291 5,350 -1% 5,291 5,468 -3%
New Zealand
5,761 6,103 -6% 5,761 6,121 -6%
Pacific
1,113 1,108 0% 1,113 1,086 2%
TSO and Group Centre
11,263 11,212 0% 11,263 11,010 2%
Total FTE from continuing operations
37,506 37,834 -1% 37,506 37,588 0%
Discontinued operations
1
1,073 1,105 -3% 1,073 1,472 -27%
Total FTE
38,579 38,939 -1% 38,579 39,060 -1%
Average FTE 38,798 39,154 -1% 38,976 39,358 -1%

Geography
Half Year Full Year

Sep 20 Mar 20 Movt Sep 20 Sep 19 Movt
Australia 18,689 18,823 -1% 18,689 18,874 -1%
Asia, Pacific, Europe & America
12,680 12,584 1% 12,680 12,695 0%
New Zealand
7,210 7,532 -4% 7,210 7,491 -4%
Total FTE
38,579 38,939 -1% 38,579 39,060 -1%
1.
The discontinued operations FTE is based on an estimate of the staff working in the divested businesses based on an allocation methodology and includes staff retained in the Group
working on transitioning the sold businesses to the purchasers.

Other Non-Financial Information


Half Year

Full Year
Shareholder value - ordinary shares
Sep 20 Mar 20 Movt

Sep 20 Sep 19 Movt
Share price ($)

- high 21.22 28.67 -26% 28.67 29.30 -2%
- low
15.07 14.10 7% 14.10 22.98 -39%
- closing

17.22 16.96 2% 17.22 28.52 -40%
Closing market capitalisation of ordinary shares ($B)
48.8 48.1 1% 48.8 80.8 -40%
Total shareholder returns (TSR)
2.9% -38.7% large -36.9% 9.2% large



As at Sep 20
Credit Ratings

Short-
Term
Long-
Term Outlook
Moody's Investor Services P-1 Aa3 Stable
Standard & Poor's A-1+ AA- Negative
Fitch Ratings F1 A+ Negative

SUMMARY


20
This page has been left blank intentionally

GROUP RESULTS


21

CONTENTS Page

Cash Profit 22
Net Interest Income - continuing operations 23
Other Operating Income - continuing operations 25
Operating Expenses - continuing operations 28
Software Capitalisation - continuing operations 30
Credit Risk - continuing operations 31
Income Tax Expense - continuing operations 38
Impact of Foreign Currency Translation - continuing operations 39
Earnings Related Hedges - continuing operations 40
Earnings per Share - continuing operations 40
Dividends - continuing operations 41
Condensed Balance Sheet - including discontinued operations 42
Liquidity Risk - including discontinued operations 43
Funding - including discontinued operations 44
Capital Management - including discontinued operations 45
Leverage Ratio - including discontinued operations 48
Capital Management - Other Developments 49

GROUP RESULTS


22
Non-IFRS Information
Statutory profit is prepared in accordance with recognition and measurement requirements of Australian Accounting Standards, which comply with
International Financial Reporting Standards (IFRS). The Group provides additional measures of performance in the Consolidated Financial Report &
Dividend Announcement which are prepared on a basis other than in accordance with accounting standards. The guidance provided in Australian
Securities and Investments Commission (ASIC) Regulatory Guide 230 has been followed when presenting this information.
Cash Profit
Cash profit, a non-IFRS measure, represents ANZ’s preferred measure of the result of the core business activities of the Group, enabling readers to
assess Group and Divisional performance against prior periods and against peer institutions. To calculate cash profit, the Group excludes non-core items
from statutory profit (refer to Definitions on pages 126 to 127 for further details). The adjustments made in arriving at cash profit are included in statutory
profit which is subject to audit within the context of the external auditor’s audit of the 2020 ANZ Annual Financial Statements (when released). Cash profit
is not subject to audit by the external auditor. The external auditor has informed the Audit Committee that cash profit adjustments have been determined
on a consistent basis across each period presented.
This Group Results section is reported on a cash profit basis for continuing operations unless otherwise stated. For information on
discontinued operations please refer to the Guide to Full Year Results on page 8.

Half Year

Full Year

Sep 20
$M
Mar 20
$M Movt

Sep 20
$M
Sep 19
$M Movt
Statutory profit attributable to shareholders of the Company from
continuing operations
2,040 1,635 25% 3,675 6,296 -42%


Adjustments between statutory profit and cash profit
1


Revaluation of policy liabilities - - n/a - 77 -100%
Economic hedges
461 (340) large 121 118 3%
Revenue and expense hedges
(156) 120 large (36) (19) 89%
Structured credit intermediation trades
- (2) -100% (2) (2) 0%
Total adjustments between statutory profit and cash profit from
continuing operations
305 (222) large 83 174 -52%
Cash profit from continuing operations 2,345 1,413 66% 3,758 6,470 -42%
1.
Refer to pages 75 to 79 for analysis of the adjustments between statutory profit and cash profit.

Group performance - cash profit
Half Year Full Year

Sep 20
$M
Mar 20
$M Movt
Sep 20
$M
Sep 19
$M Movt
Net interest income 6,827 7,222 -5% 14,049 14,339 -2%
Other operating income
2,346 1,357 73% 3,703 4,690 -21%
Operating income
9,173 8,579 7% 17,752 19,029 -7%
Operating expenses (4,778) (4,605) 4% (9,383) (9,071) 3%
Profit before credit impairment and income tax
4,395 3,974 11% 8,369 9,958 -16%
Credit impairment charge (1,064) (1,674) -36% (2,738) (795) large
Profit before income tax
3,331 2,300 45% 5,631 9,163 -39%
Income tax expense (986) (886) 11% (1,872) (2,678) -30%
Non-controlling interests
- (1) -100% (1) (15) -93%
Cash profit from continuing operations
2,345 1,413 66% 3,758 6,470 -42%

Half Year Full Year
Cash profit/(loss) by division
Sep 20
$M
Mar 20
$M Movt
Sep 20
$M
Sep 19
$M Movt
Australia Retail and Commercial 1,123 1,214 -7% 2,337 3,195 -27%
Institutional
1,244 610 large 1,854 1,828 1%
New Zealand
450 567 -21% 1,017 1,399 -27%
Pacific
(82) 20 large (62) 59 large
TSO and Group Centre
(390) (998) -61% (1,388) (11) large
Cash profit from continuing operations
2,345 1,413 66% 3,758 6,470 -42%

GROUP RESULTS


23
Net Interest Income - continuing operations


Half Year

Full Year
Group
Sep 20
$M
Mar 20
$M Movt

Sep 20
$M
Sep 19
$M Movt
Cash net interest income
1
6,827 7,222 -5% 14,049 14,339 -2%
Average interest earning assets
2
869,110 856,652 1% 862,882 813,219 6%
Average deposits and other borrowings
2
690,104 668,514 3% 679,336 638,380 6%
Net interest margin (%) - cash
1.57 1.69 -12 bps 1.63 1.76 -13 bps

Group (excluding Markets business unit)

Cash net interest income
1
6,457 6,822 -5% 13,279 13,848 -4%
Average interest earning assets
2
580,532 576,494 1% 578,514 565,282 2%
Average deposits and other borrowings
2
504,392 477,033 6% 490,740 460,120 7%
Net interest margin (%) - cash
2.22 2.37 -15 bps 2.30 2.45 -15 bps


Half Year

Full Year
Cash profit net interest margin by major division
1

Sep 20
$M
Mar 20
$M Movt

Sep 20
$M
Sep 19
$M Movt
Australia Retail and Commercial

Net interest margin (%) - cash 2.53 2.65 -12 bps 2.59 2.59 0 bps
Average interest earning assets
305,924 305,981 0% 305,953 311,944 -2%
Average deposits and other borrowings
222,191 210,214 6% 215,816 203,781 6%


Institutional

Net interest margin (%) - cash 0.73 0.78 -5 bps 0.76 0.82 -6 bps
Average interest earning assets
2
424,614 415,490 2% 420,052 373,926 12%
Average deposits and other borrowings
2
321,745 305,506 5% 313,625 286,372 10%


New Zealand

Net interest margin (%) - cash 2.20 2.31 -11 bps 2.26 2.33 -7 bps
Average interest earning assets
2
120,104 121,955 -2% 121,030 117,461 3%
Average deposits and other borrowings
2
92,756 90,329 3% 91,542 86,608 6%
1.
Includes large/notable items of -$12 million for the September 2020 full year (Mar 20 half: $32 million; September 2019 full year: $51 million). Refer to pages 14 to 18 for further details on
large/notable items. Also includes the major bank levy of -$406 million for the September 2020 full year (Mar 20 half: -$196 million; September 2019 full year: -$363 million).
2.
Average balance sheet amounts include assets and liabilities classified as held for sale from continuing operations in the September 2019 full year.
Group net interest margin - September 2020 Full Year v September 2019 Full Year
1.
Markets Balance Sheet activities includes the impact of discretionary liquid assets and other Balance Sheet activities.

 September 2020 v September 2019
Net interest margin (-13 bps)
 Impact of rates net of repricing (-4 bps): the impact of central bank rate cuts on low rate deposits, earnings on capital and replicated deposits, net
of repricing.
 Asset and deposit mix (-4 bps): unfavourable product mix from the impacts of customer switching from interest only to principal and interest
home loans in Australia, as well as customers switching from variable to fixed home loans in Australia and New Zealand, and lower unsecured
lending in Australia Retail and Commercial, along with unfavourable divisional lending mix from a higher proportion of Institutional lending. This
was partly offset by favourable deposit mix from growth in at-call deposits.
 Liquidity (-3 bps): predominantly the growth in liquid assets, driven by an increase in system liquidity.

GROUP RESULTS


24
 Wholesale funding and deposits pricing (+1 bps): favourable short term funding costs, partly offset by deposit margin compression.
 Asset pricing (-2 bps): competition in home lending in Australia Retail and Commercial.
 Markets Balance Sheet activities (0 bps): neutral impact year on year.
 Large/notable (-1 bps): the impact of large and notable movements year on year.
Average interest earning assets (+$49.7 billion or +6%)
 Average net loans and advances (+$18.1 billion or +3%): increase primarily driven by growth in Institutional lending and the impact of foreign
currency translation movements.
 Average trading and investment securities (+$13.5 billion or +12%): increase primarily driven by higher liquid assets and trading securities in
Markets, and the impact of foreign currency translation movements.
 Average cash and other liquid assets (+$18.1 billion or +17%): increase primarily driven by higher central bank cash balances, higher collateral
balances and the impact of foreign currency translation movements.
Average deposits and other borrowings (+$41.0 billion or +6%)
 Average deposits and other borrowings (+$41.0 billion or +6%): increase driven by growth in deposits in all divisions, but particularly in
Institutional division, and the impact of foreign currency translation movements.
Group net interest margin - September 2020 Half Year v March 2020 Half Year

1.
Markets Balance Sheet activities includes the impact of discretionary liquid assets and other Balance Sheet activities.
 September 2020 v March 2020
Net interest margin (-12 bps)
 Impact of rates net of repricing (-6 bps): the impact of central bank rate cuts on low rate deposits, earnings on capital and replicated deposits, net
of repricing.
 Asset and deposit mix (-3 bps): unfavourable product mix from the impacts of customer switching from interest only to principal and interest
home loans in Australia, as well as customer switching from variable to fixed home loans in Australia and New Zealand, and lower unsecured
lending in Australia Retail and Commercial along with unfavourable divisional lending mix from a higher proportion of Institutional lending. This
was partly offset by favourable deposit mix from growth in at-call deposits.
 Liquidity (-2 bps): predominantly growth in liquid assets, driven by an increase in system liquidity.
 Wholesale funding and deposit pricing (+2 bps): favourable short term and long term funding costs and deposit price optimisation in Australia
Retail and Commercial and Institutional.
 Asset pricing (-1 bps): competition in home lending in Australia Retail and Commercial, partly offset by higher Institutional lending margins.
 Markets Balance Sheet activities (0 bps): neutral impact for the half.
 Large/notable items (-2 bps): predominantly the impact of higher customer remediation in the September 2020 half.
Average interest earning assets (+$12.5 billion or 1%)
 Average net loans and advances (+$2.8 billion or +0%): increase primarily driven by growth in Institutional lending, and home lending growth in
the Australia Retail and Commercial and New Zealand divisions. This was partly offset by the impact of foreign currency translation movements
and a reduction in Cards and Personal Loans in the Australia Retail and Commercial division.
 Average trading and investment securities (+$6.9 billion or +5%): increase primarily driven by an increase in liquid assets in Markets partly offset
by the impact of foreign currency translation movements.
 Average cash and other liquid assets (+$2.8 billion or +2%): increase primarily driven by higher central bank cash balances, partly offset by the
impact of foreign currency translation movements.
Average deposits and other borrowings (+$21.6 billion or +3%)
 Average deposits and other borrowings (+$21.6 billion or +3%): increase driven by growth in all divisions, partly offset by the impact of foreign
currency translation movements.

GROUP RESULTS


25
Other Operating Income - continuing operations



Half Year

Full Year

Sep 20
$M
Mar 20
$M Movt

Sep 20
$M
Sep 19
$M Movt
Net fee and commission income
1
1,080 1,135 -5% 2,215 2,493 -11%
Markets other operating income
1,120 764 47% 1,884 1,286 47%
Share of associates' profit
20 135 -85% 155 262 -41%
Other
1,2
126 (677) large (551) 649 large
Total cash other operating income from continuing operations
3
2,346 1,357 73% 3,703 4,690 -21%

Half Year Full Year
Other operating income by division
Sep 20
$M
Mar 20
$M Movt
Sep 20
$M
Sep 19
$M Movt
Australia Retail and Commercial 566 595 -5% 1,161 1,347 -14%
Institutional
1,482 1,167 27% 2,649 2,192 21%
New Zealand
226 247 -9% 473 580 -18%
Pacific
34 50 -32% 84 104 -19%
TSO and Group Centre
38 (702) large (664) 467 large
Total cash other operating income from continuing operations
3
2,346 1,357 73% 3,703 4,690 -21%
1.
Excluding the Markets business unit.
2.
Includes foreign exchange earnings, net income from insurance business and the impairment of Asian associates recognised in the March 2020 half.
3.
Includes large/notable items of -$127 million for the September 2020 half (Mar 20 half: -$838 million; Sep 19 full year: $235 million). Refer to items on pages 14 to 18 for further details on
large/notable items.
Other operating income - September 2020 Full Year v September 2019 Full Year


Markets income
Half Year Full Year

Sep 20
$M
Mar 20
$M Movt
Sep 20
$M
Sep 19
$M Movt
Net interest income 370 400 -8% 770 491 57%
Other operating income
1,120 764 47% 1,884 1,286 47%
Total cash Markets income from continuing operations
1,490 1,164 28% 2,654 1,777 49%

GROUP RESULTS


26
Other operating income (excluding large/notable items) Half Year

Full Year

Sep 20
$M
Mar 20
$M Movt

Sep 20
$M
Sep 19
$M Movt
Net fee and commission income
1
1,086 1,164 -7% 2,250 2,537 -11%
Markets other operating income
1,138 764 49% 1,902 1,283 48%
Share of associates' profit
88 135 -35% 223 262 -15%
Other
1,2
161 132 22% 293 373 -21%
Total cash other operating income from continuing operations
2,473 2,195 13% 4,668 4,455 5%

Other operating income by division (excluding large/notable
items)
Half Year Full Year

Sep 20
$M
Mar 20
$M Movt
Sep 20
$M
Sep 19
$M Movt
Australia Retail and Commercial 582 625 -7% 1,207 1,397 -14%
Institutional
1,499 1,163 29% 2,662 2,173 23%
New Zealand
224 255 -12% 479 566 -15%
Pacific
34 50 -32% 84 104 -19%
TSO and Group Centre
134 102 31% 236 215 10%
Total cash other operating income from continuing operations
2,473 2,195 13% 4,668 4,455 5%
1.
Excluding the Markets business unit.
2.
Includes foreign exchange earnings and net income from insurance business.

 September 2020 v September 2019
Other operating income decreased by $987 million (-21%).
Net fee and commission income (-$278 million or -11%)
 $153 million decrease in the Australia Retail and Commercial division primarily driven by lower credit card and international transaction volumes
due to the impact of COVID-19 and fee removals.
 $93 million decrease in the New Zealand division primarily driven by the reduction or removal of fees and lower volume related fee income and
fee waivers due to the impact of COVID-19.
 $52 million decrease in the Institutional division driven by lower merchant transaction fees and loan syndication fees due to the impact of COVID-
19.
 $20 million increase due to lower customer remediation in the September 2020 full year, partially offset by the loss of income from divested
businesses.
Markets income (+$877 million or +49%)
 $566 million increase in Franchise Trading across all asset classes primarily attributable to increased customer sales flow and improved trading
conditions, particularly in International, along with favourable derivative valuation adjustments.
 $259 million increase in Balance Sheet trading driven by decreasing funding costs and increasing value of high quality liquid assets.
 $52 million increase in Franchise Sales due to COVID-19 related customer demand for hedging solutions.
Share of associates’ profit (-$107 million or -41%)
 $68 million decrease due to the Group’s equity accounted share of PT Panin’s transition adjustment on its adoption of AASB 9 Financial
Instruments in 2020.
 $39 million decrease in profits from associates of which $24 million relates to AmBank and $10 million relates to PT Panin.
Other (-$1,200 million)
 $815 million decrease due to the impairment of PT Panin of $220 million and AmBank of $595 million.
 $318 million decrease due to gains on sale ($252 million) primarily from One Path Life NZ and Paymark in the September 2019 full year, a loss
on sale ($38 million) from UDC in the September 2020 full year, and the impact of loss of income from divested businesses ($28 million).
 $79 million decrease in Institutional division due to widening credit spread impacts on loans measured at fair value.
 $38 million decrease in Australia Retail and Commercial division due to lower net insurance revenues of $23 million and lower income from
foreign cash services of $15 million.
 $34 million increase in TSO and Group Centre division due to higher realised gains on economic hedges against foreign currency denominated
revenue streams. These offset net unfavourable foreign currency translations elsewhere in the Group.
 $16 million increase due to the gross up of sublease income on adoption of the new leasing standard (comparatives not restated), partially offset
by higher customer remediation in the September 2020 full year.
Excluding large/notable items, other operating income increased $213 million (5%).

GROUP RESULTS


27
 September 2020 v March 2020
Other operating income increased by $989 million or (+73%).
Net fee and commission income (-$55 million or -5%)
 $37 million decrease in Institutional division driven primarily by lower merchant transaction fees due to COVID-19.
 $26 million decrease in the New Zealand division driven by the reduction or removal of fees and lower volume related fees and fee waivers due
to the impact of COVID-19.
 $8 million increase due to lower customer remediation in the September 2020 half, partially offset by a decrease in the Australia Retail and
Commercial division primarily driven by lower credit card and international transaction volumes due to the impact of COVID-19.
Markets income (+$326 million or +28%)
 $229 million increase in Balance Sheet trading driven by increasing value of high quality liquid assets.
 $139 million increase in Franchise Trading driven by credit trading on elevated volumes and credit spread tightening, along with favourable
derivative valuation adjustments.
 $42 million decrease in Franchise Sales due to demand from customers trending back to pre COVID-19 levels, partially offset by growth in
Capital Markets as corporate clients looked to strengthen their balance sheet by issuing in International markets.
Share of associates’ profit (-$115 million or -85%)
 $68 million decrease due to the Group’s equity accounted share of PT Panin’s transition adjustment on its adoption of AASB 9 Financial
Instruments in 2020.
 $47 million decrease in profits from associates of which $25 million relates to PT Panin and $20 million relates to AmBank.
Other (+$803 million)
 $815 million increase due to the impairment of PT Panin of $220 million and AmBank of $595 million in the March 2020 half.
 $39 million increase in TSO and Group Centre division due to higher realised gains on economic hedges against foreign denominated revenue
streams. These offset unfavourable foreign currency translations elsewhere in the Group.
 $26 million increase due to dividend income from Bank of Tianjin in the September 2020 half.
 $38 million decrease due to a loss on sale of UDC in the September 2020 half.
 $31 million decrease in Australia Retail and Commercial division due to lower net insurance revenues of $17 million and lower income on foreign
cash services of $11 million.
Excluding large/notable items, other operating income increased $278 million (+13%).

GROUP RESULTS


28
Operating Expenses - continuing operations

Half Year Full Year
1


Sep 20
$M
Mar 20
$M Movt
Sep 20
$M
Sep 19
$M Movt
Personnel 2,413 2,465 -2% 4,878 4,765 2%
Premises
384 405 -5% 789 795 -1%
Technology (excluding personnel)
985 839 17% 1,824 1,534 19%
Restructuring
56 105 -47% 161 77 large
Other
940 791 19% 1,731 1,900 -9%
Total cash operating expenses from continuing operations
1
4,778 4,605 4% 9,383 9,071 3%
Full time equivalent staff (FTE) from continuing operations 37,506 37,834 -1% 37,506 37,588 0%
Average full time equivalent staff (FTE) from continuing operations 37,695 37,759 0% 37,728 37,480 1%


Half Year Full Year
1

Expenses by division
Sep 20
$M
Mar 20
$M Movt
Sep 20
$M
Sep 19
$M Movt
Australia Retail and Commercial 2,026 2,065 -2% 4,091 4,074 0%
Institutional
1,268 1,290 -2% 2,558 2,667 -4%
New Zealand
745 690 8% 1,435 1,286 12%
Pacific
129 76 70% 205 150 37%
TSO and Group Centre
610 484 26% 1,094 894 22%
Total cash operating expenses from continuing operations
1
4,778 4,605 4% 9,383 9,071 3%


Half Year Full Year
FTE by division
Sep 20 Mar 20 Movt Sep 20 Sep 19 Movt
Australia Retail and Commercial 14,078 14,061 0% 14,078 13,903 1%
Institutional
5,291 5,350 -1% 5,291 5,468 -3%
New Zealand
5,761 6,103 -6% 5,761 6,121 -6%
Pacific
1,113 1,108 0% 1,113 1,086 2%
TSO and Group Centre
11,263 11,212 0% 11,263 11,010 2%
Total FTE from continuing operations
37,506 37,834 -1% 37,506 37,588 0%
Average FTE from continuing operations 37,695 37,759 0% 37,728 37,480 1%
1.
Includes large/notable items of $501 million for the September 2020 half (Mar 20 half: $268 million; September 2019 full year: $544 million). Refer to items on pages 14 to 18 for further
details on large/notable items.
Operating expenses - September 2020 Full Year v September 2019 Full Year

GROUP RESULTS


29
Expenses (excluding large/notable items) Half Year Full Year

Sep 20
$M
Mar 20
$M Movt
Sep 20
$M
Sep 19
$M Movt
Personnel 2,334 2,401 -3% 4,735 4,671 1%
Premises
372 379 -2% 751 788 -5%
Technology (excluding personnel)
773 787 -2% 1,560 1,526 2%
Restructuring
- - n/a - - n/a
Other
798 770 4% 1,568 1,542 2%
Total cash operating expenses from continuing operations
4,277 4,337 -1% 8,614 8,527 1%

Expenses by division (excluding large/notable items)
Half Year Full Year
1


Sep 20
$M
Mar 20
$M Movt
Sep 20
$M
Sep 19
$M Movt
Australia Retail and Commercial 1,875 1,887 -1% 3,762 3,743 1%
Institutional
1,204 1,275 -6% 2,479 2,575 -4%
New Zealand
624 654 -5% 1,278 1,219 5%
Pacific
73 74 -1% 147 143 3%
TSO and Group Centre
501 447 12% 948 847 12%
Total cash operating expenses from continuing operations
4,277 4,337 -1% 8,614 8,527 1%

 September 2020 v September 2019
Operating expenses increased by $312 million (+3%).
 Personnel expenses increased $113 million (+2%) largely driven by higher investment spend in the New Zealand and Australia Retail and
Commercial divisions, higher customer remediation costs ($80 million), wage inflation and adverse foreign currency translation movements. This
was partially offset by lower variable remuneration and lower business as usual expenses, including reduced employee leave balances.
 Premises expense decreased $6 million (-1%) largely driven lower premises expense in our International network, partially offset by a change in
accounting treatment associated with the new leasing standard (comparatives not restated).
 Technology expenses increased $290 million (+19%) largely as a result of accelerated amortisation of $197 million due to a change in
application of the software amortisation policy, a change in accounting treatment associated with the new leasing standard (comparatives not
restated), an increase in investment spend and customer remediation ($13 million).
 Restructuring expenses increased $84 million largely relating to business and distribution channel changes in the Australia Retail and
Commercial division.
 Other expenses decreased $169 million (-9%) largely due to lower customer remediation ($257 million) and lower travel expenses, partially offset
by higher investment spend and goodwill write-off of $77 million in Pacific and New Zealand divisions.
Excluding large/notable items, operating expenses increased $87 million (+1%).
 September 2020 v March 2020
Operating expenses increased by $173 million (+4%).
 Personnel expenses decreased $52 million (-2%) largely driven by lower business as usual expenses, including reduced employee leave
balances. This was partially offset by higher customer remediation costs ($16 million).
 Premises expenses decreased $21 million (-5%) due to lower lease-related costs and lower premises expense in our International network.
 Technology expenses increased $146 million (+17%) largely as a result of accelerated amortisation of $197 million due to a change in
application of the software amortisation policy, higher investment spend and customer remediation ($13 million). This was partially offset by
lower technology lease-related costs and lower business as usual expenses.
 Restructuring expenses decreased $49 million largely relating to lower business and distribution channel changes in the Australia Retail and
Commercial division in the September 2020 half.
 Other expenses increased $149 million (+19%) largely driven by goodwill write-off of $77 million in Pacific and New Zealand divisions, higher
customer remediation ($38 million) and higher investment spend. This was partially offset by lower travel expenses.
Excluding large/notable items, operating expenses decreased $60 million (-1%).

GROUP RESULTS


30
Software Capitalisation - continuing operations
As at 30 September 2020, the Group’s intangible assets included $1,039 million of costs incurred to acquire and develop software. Details are presented
in the table below:

Half Year Full Year

Sep 20
$M
Mar 20
$M Movt
Sep 20
$M
Sep 19
$M Movt
Balance at start of period 1,263 1,323 -5% 1,323 1,421 -7%
Software capitalised during the period
194 181 7% 375 421 -11%
Amortisation during the period

- Current period amortisation (219) (241) -9% (460) (517) -11%
- Accelerated amortisation
1
(197) - n/a (197) - n/a
Software impaired/written-off
- (2) -100% (2) (4) -50%
Foreign currency translation movements
(2) 2 large - 2 -100%
Total capitalised software from continuing operations
1,039 1,263 -18% 1,039 1,323 -21%

Net book value by division Half Year Full Year

Sep 20
$M
Mar 20
$M Movt
Sep 20
$M
Sep 19
$M Movt
Australia Retail and Commercial 147 209 -30% 147 260 -43%
Institutional
139 196 -29% 139 223 -38%
New Zealand
7 8 -13% 7 7 0%
TSO and Group Centre
746 850 -12% 746 833 -10%
Total from continuing operations
1,039 1,263 -18% 1,039 1,323 -21%


Full Year

Australia
Retail and
Commercial
Institutional New Zealand
TSO and
Group Centre
Total from
continuing
operations

Sep 20
$M
Sep 20
$M
Sep 20
$M
Sep 20
$M
Sep 20
$M
Balance at start of period 260 223 7 833 1,323
Software capitalised during the period
41 42 7 285 375
Amortisation during the period
- Current period amortisation (123) (88) (5) (244) (460)
- Accelerated amortisation
1
(31) (38) (2) (126) (197)
Software impaired/written-off
- - - (2) (2)
Foreign currency translation movements
- - - - -
Total capitalised software from continuing operations
147 139 7 746 1,039
1.
In the September 2020 half, the Group amended the application of its software amortisation policy to reflect the shorter useful life of software caused by rapidly changing technology and
business requirements. As a result, the Group recognised accelerated amortisation of $197 million during the September 2020 half. Refer to Note 1 for further details.

GROUP RESULTS


31
Credit Risk – continuing operations
The tables below provide information about the credit provisions of the Group.
The impact and duration of COVID-19 on the global economy and how governments, businesses and consumers respond is uncertain. The Expected
Credit Loss (ECL) charge for the half year and ECL provisions as at 30 September 2020 are therefore partly based on management judgement with
respect to the impacts of COVID-19 on the Group’s credit exposures. The judgements and assumptions made by management are based on a variety of
internal and external information, as well as the Group’s experience with respect to the performance of the portfolio under previous stressed conditions.
Refer to Note 1 of the Condensed Consolidated Financial Statements for further information.

Credit impairment charge/(release)



Collectively assessed

Half Year Movement Full Year Movement
Division
Sep 20
$M
Mar 20
$M
Sep 20
v. Mar 20
Sep 20
$M
Sep 19
$M
Sep 20
v. Sep 19
Australia Retail and Commercial 526 525 0% 1,051 7 large
Institutional 4 369 -99% 373 10 large
New Zealand
104 144 -28% 248 12 large
Pacific
35 10 large 45 (12) large
TSO and Group Centre
- - n/a - - n/a
Total 669 1,048 -36% 1,717 17 large


Individually assessed

Half Year Movement Full Year Movement
Division
Sep 20
$M
Mar 20
$M
Sep 20
v. Mar 20
Sep 20
$M
Sep 19
$M
Sep 20
v. Sep 19
Australia Retail and Commercial 278 318 -13% 596 705 -15%
Institutional 49 272 -82% 321 (12) large
New Zealand
62 35 77% 97 75 29%
Pacific
6 1 large 7 11 -36%
TSO and Group Centre
- - n/a - (1) -100%
Total 395 626 -37% 1,021 778 31%

Total

Half Year Movement Full Year Movement
Division
Sep 20
$M
Mar 20
$M
Sep 20
v. Mar 20
Sep 20
$M
Sep 19
$M
Sep 20
v. Sep 19
Australia Retail and Commercial 804 843 -5% 1,647 712 large
Institutional 53 641 -92% 694 (2) large
New Zealand
166 179 -7% 345 87 large
Pacific
41 11 large 52 (1) large
TSO and Group Centre
- - n/a - (1) -100%
Total 1,064 1,674 -36% 2,738 795 large

GROUP RESULTS


32
September 2020 Full Year Collectively Assessed

Individually Assessed



Stage 1 Stage 2 Stage 3 Total
Stage 3 -
New and
increased
Stage 3 -
Recoveries
and write-
backs Total Total
Division
$M $M $M $M $M $M $M $M
Australia Retail and Commercial
228 805 18 1,051 965 (369) 596 1,647
Institutional
203 178 (8) 373 451 (130) 321 694
New Zealand
20 190 38 248 147 (50) 97 345
Pacific
4 37 4 45 12 (5) 7 52
TSO and Group Centre
- - - - - - - -
Total
455 1,210 52 1,717 1,575 (554) 1,021 2,738


September 2019 Full Year Collectively Assessed

Individually Assessed



Stage 1 Stage 2 Stage 3 Total
Stage 3 -
New and
increased
Stage 3 -
Recoveries
and write-
backs Total Total
Division
$M $M $M $M $M $M $M $M
Australia Retail and Commercial (35) (26) 68 7 1,173 (468) 705 712
Institutional 27 (13) (4) 10 55 (67) (12) (2)
New Zealand 1 10 1 12 131 (56) 75 87
Pacific (4) (6) (2) (12) 16 (5) 11 (1)
TSO and Group Centre - - - - - (1) (1) (1)
Total (11) (35) 63 17 1,375 (597) 778 795

September 2020 Half Year Collectively Assessed

Individually Assessed



Stage 1 Stage 2 Stage 3 Total
Stage 3 -
New and
increased
Stage 3 -
Recoveries
and write-
backs Total Total
Division
$M $M $M $M $M $M $M $M
Australia Retail and Commercial
123 410 (7) 526 454 (176) 278 804
Institutional
- 1 3 4 124 (75) 49 53
New Zealand
(19) 104 19 104 88 (26) 62 166
Pacific
(3) 34 4 35 9 (3) 6 41
TSO and Group Centre
- - - - - - - -
Total
101 549 19 669 675 (280) 395 1,064


March 2020 Half Year Collectively Assessed

Individually Assessed



Stage 1 Stage 2 Stage 3 Total
Stage 3 -
New and
increased
Stage 3 -
Recoveries
and write-
backs Total Total
Division
$M $M $M $M $M $M $M $M
Australia Retail and Commercial 105 395 25 525 511 (193) 318 843
Institutional 203 177 (11) 369 327 (55) 272 641
New Zealand 39 86 19 144 59 (24) 35 179
Pacific 7 3 - 10 3 (2) 1 11
TSO and Group Centre - - - - - - - -
Total 354 661 33 1,048 900 (274) 626 1,674
Collectively assessed credit impairment charge
 September 2020 v September 2019
The collectively assessed credit impairment charge increased by $1,700 million primarily driven by a $1,044 million increase in the Australia Retail
and Commercial division, a $363 million increase in the Institutional division and a $236 million increase in the New Zealand division. The significant
increases across all divisions were due to forward-looking assessments of the impacts of the COVID-19 pandemic driven by the deterioration in the
economic outlook as well as management adjustments to recognise the risk of credit quality deterioration expected to emerge as COVID-19 stimulus
and support programs ease.
 September 2020 v March 2020
The $669 million collectively assessed credit impairment charge in the September 2020 half was due to forward-looking assessments of the impacts
of the COVID-19 pandemic recognised by way of management adjustments to recognise the risk of credit quality deterioration expected to emerge as
COVID-19 stimulus and support programs ease, including the impact of an extended Victorian lockdown. The charge decreased by $379 million
compared to March primarily driven by a $365 million decrease in the Institutional division. The Institutional collectively assessed provisions were flat
for the September 2020 half with credit migration experienced during the September 2020 half offset by an improvement in the forward-looking base
case relative to March 2020 half.

GROUP RESULTS


33
Individually assessed credit impairment charge
 September 2020 v September 2019
The individually assessed credit impairment charge increased by $243 million primarily due to a single name impairment in the Institutional division.
This was partially offset by improved delinquencies in the Australia Retail portfolios combined with ongoing lower portfolio growth in the unsecured
portfolio, and lower provisions in the Commercial portfolio.
 September 2020 v March 2020
The individually assessed credit impairment charge decreased by $231 million primarily due to a single name impairment in the March 2020 half in
the Institutional division. The decrease in Australia Retail and Commercial division was driven by lower provisions in the Commercial portfolio which
was partially offset by increases in New Zealand division due to a small number of new single name impairments.

Allowance for expected credit losses
1


Collectively assessed

As at Movement
Division
Sep 20
$M
Mar 20
$M
Sep 19
$M
Sep 20
v. Mar 20
Sep 20
v. Sep 19
Australia Retail and Commercial 2,845 2,320 1,795 23% 58%
Institutional 1,513 1,590 1,169 -5% 29%
New Zealand
570 541 374 5% 52%
Pacific
80 50 38 60% large
TSO and Group Centre
- - - n/a n/a
Total 5,008 4,501 3,376 11% 48%



Individually assessed

As at Movement
Division
Sep 20
$M
Mar 20
$M
Sep 19
$M
Sep 20
v. Mar 20
Sep 20
v. Sep 19
Australia Retail and Commercial 610 582 558 5% 9%
Institutional 158 406 160 -61% -1%
New Zealand
102 79 72 29% 42%
Pacific
21 26 24 -19% -13%
TSO and Group Centre
- - - n/a n/a
Total 891 1,093 814 -18% 9%



Total provision

As at Movement
Division
Sep 20
$M
Mar 20
$M
Sep 19
$M
Sep 20
v. Mar 20
Sep 20
v. Sep 19
Australia Retail and Commercial 3,455 2,902 2,353 19% 47%
Institutional 1,671 1,996 1,329 -16% 26%
New Zealand
672 620 446 8% 51%
Pacific
101 76 62 33% 63%
TSO and Group Centre
- - - n/a n/a
Total 5,899 5,594 4,190 5% 41%
1.
Includes allowance for expected credit losses for Net loans and advances – at amortised cost, Investment securities – debt securities at amortised cost and Off-balance sheet commitments -
undrawn and contingent facilities.

GROUP RESULTS


34
Allowance for expected credit losses, cont'd
1


As at Sep 20

Collectively assessed
Individually
assessed

Division
Stage 1
$M
Stage 2
$M
Stage 3
$M
Total
$M
Stage 3
$M
Total
$M
Australia Retail and Commercial 597 1,886 362 2,845 610 3,455
Institutional
1,056 426 31 1,513 158 1,671
New Zealand
147 346 77 570 102 672
Pacific
20 46 14 80 21 101
TSO and Group Centre
-
- - - - -
Total
1,820 2,704 484 5,008 891 5,899

As at Mar 20

Collectively assessed
Individually
assessed

Division
Stage 1
$M
Stage 2
$M
Stage 3
$M
Total
$M
Stage 3
$M
Total
$M
Australia Retail and Commercial 474 1,477 369 2,320 582 2,902
Institutional 1,115 444 31 1,590 406 1,996
New Zealand 200 279 62 541 79 620
Pacific 26 13 11 50 26 76
TSO and Group Centre
-
- - - - -
Total 1,815 2,213 473 4,501 1,093 5,594

As at Sep 19

Collectively assessed
Individually
assessed

Division
Stage 1
$M
Stage 2
$M
Stage 3
$M
Total
$M
Stage 3
$M
Total
$M
Australia Retail and Commercial 370 1,082 343 1,795 558 2,353
Institutional 872 257 40 1,169 160 1,329
New Zealand 152 182 40 374 72 446
Pacific 18 9 11 38 24 62
TSO and Group Centre
-
- - - - -
Total 1,412 1,530 434 3,376 814 4,190
1.
Includes allowance for expected credit losses for Net loans and advances – at amortised cost, Investment securities – debt securities at amortised cost and Off-balance sheet commitments -
undrawn and contingent facilities.

GROUP RESULTS


35
Long-Run Loss Rates
Management believes that disclosure of modelled long-run historical loss rates for individually assessed provisions assists in assessing the longer term
expected loss rates of the lending portfolio as it removes the volatility of reported earnings created by the use of accounting losses. The long-run loss
methodology used for economic profit is an internal measure and is not based on the credit loss recognition principles of AASB 9 Financial Instruments.
In addition, given it is based on an average historical long-run loss rate it does not reflect the potential forward looking impacts associated with COVID-
19.


As at
Long-run loss as a % of gross lending assets
Sep 20 Mar 20 Sep 19
Australia Retail and Commercial division

0.27% 0.28% 0.29%
New Zealand division

0.16% 0.19% 0.18%
Institutional division

0.30% 0.25% 0.25%
Total Group

0.26% 0.26% 0.26%


Gross Impaired Assets



As at

Movement


Sep 20
$M
Mar 20
$M
Sep 19
$M

Sep 20
v. Mar 20
Sep 20
v. Sep 19
Impaired loans
1


2,001 2,209 1,711 -9% 17%
Restructured items
2


254 226 267 12% -5%
Non-performing commitments and contingencies
1
204 164 51 24% large
Gross impaired assets
2,459 2,599 2,029 -5% 21%
Individually assessed provisions
Impaired loans
(851) (1,055) (791) -19% 8%
Non-performing commitments and contingencies
(40) (38) (23) 5% 74%
Net impaired assets
1,568 1,506 1,215 4% 29%

Gross impaired assets by division

Australia Retail and Commercial 1,634 1,544 1,468 6% 11%
Institutional
434 742 265 -42% 64%
New Zealand
347 264 245 31% 42%
Pacific
44 49 51 -10% -14%
TSO and Group Centre
- - - n/a n/a
Gross impaired assets
2,459 2,599 2,029 -5% 21%

Gross impaired assets by size of exposure
Less than $10 million 1,713 1,680 1,593 2% 8%
$10 million to $100 million
339 349 247 -3% 37%
Greater than $100 million
407 570 189 -29% large
Gross impaired assets
2,459 2,599 2,029 -5% 21%
1.
Impaired loans and non-performing commitments and contingencies do not include exposures which are included in collectively assessed Stage 3 ECL, which comprise unsecured retail
exposures greater than 90 days past due and defaulted but well secured exposures.
2.
Restructured items are facilities where the original contractual terms have been modified for reasons related to the financial difficulties of the customer. Restructuring may consist of
reduction of interest, principal or other payments legally due, or an extension in maturity materially beyond those typically offered to new facilities with similar risk.
 September 2020 v September 2019
Gross impaired assets increased $430 million (21%) driven by the Institutional division ($169 million), Australia Retail and Commercial division ($166
million) and New Zealand division ($102 million). The increase in the Institutional division primarily relates to impairments on a small number of single
name exposures primarily in the March 2020 half. The Australia Retail and Commercial division increase was driven by home loans with a
combination of the implementation of a more market responsive collateral valuation methodology and impairments as 90 days past due exposures
increased in the March 2020 half, combined with impairments on a small number of single name exposures in the commercial portfolio. The increase
in New Zealand was driven by impairments on a small number of single name commercial exposures.
 September 2020 v March 2020
Gross impaired assets decreased $140 million (5%) driven by the Institutional division ($308 million), offset by increases in Australia Retail and
Commercial division ($90 million) and New Zealand division ($83 million). The decrease in the Institutional division relates to write-offs on a small
number of single named exposures. The increase in Australia Retail and Commercial division was driven by home loan impairments as 90 days past
due exposures increased primarily in March 2020 half. The increase in New Zealand division was driven by impairment on a single name exposure in
the commercial portfolio.

The Group’s individually assessed provision coverage ratio on impaired assets was 36.2% at 30 September 2020 (Mar 20: 42.1%; Sep 19: 40.1%).

GROUP RESULTS


36
New Impaired Assets


Half Year Full Year

Sep 20
$M
Mar 20
$M Movt
Sep 20
$M
Sep 19
$M Movt
Impaired loans 1,081 1,407 -23% 2,488 1,927 29%
Restructured items
47 23 large 70 42 67%
Non-performing commitments and contingencies
91 140 -35% 231 38 large
Total new impaired assets
1,219 1,570 -22% 2,789 2,007 39%
New impaired assets by division
Australia Retail and Commercial 775 870 -11% 1,645 1,631 1%
Institutional
197 571 -65% 768 78 large
New Zealand
236 125 89% 361 278 30%
Pacific
11 4 large 15 20 -25%
TSO and Group Centre
- - n/a - - n/a
Total new impaired assets
1,219 1,570 -22% 2,789 2,007 39%
 September 2020 v September 2019
New impaired assets increased $782 million (39%) with increases in Institutional division ($690 million) related to a small number of impairments of
single name exposures. New Zealand division increases ($83 million) related to a small number of impairments of single name exposures in the
commercial portfolio.
 September 2020 v March 2020
New impaired assets decreased by $351 million (22%) driven by Institutional division ($374 million) and Australia Retail and Commercial division
($95 million), partially offset with increase in New Zealand division ($111 million). The decreases in Institutional relate to a small number of
impairments of single name exposures in the March 2020 half not repeated in the September 2020 half. The decrease in Australia Retail and
Commercial division is driven by home loans due to the continued COVID-19 support in place. This was partially offset by New Zealand driven by a
small number of impairments of single name exposures in the commercial portfolio.


Ageing analysis of net loans and advances that are past due but not impaired
1,2



As at Movement

Sep 20
$M
Mar 20
$M
Sep 19
$M
Sep 20
v. Mar 20
Sep 20
v. Sep 19
1-29 days 5,161 9,114 8,383 -43% -38%
30-59 days
1,028 2,772 2,255 -63% -54%
60-89 days
569 1,368 1,369 -58% -58%
>90 days
3,844 3,621 3,744 6% 3%
Total
10,602 16,875 15,751 -37% -33%
1.
In the September 2019 half, ANZ implemented a more market responsive collateral valuation methodology for the home loan portfolio in Australia which increased the number of home
loans being classified as impaired rather than past due. Comparative information was not restated for the change in methodology.
2.
Excludes eligible customers impacted by COVID-19 who applied and were granted or are in the process of being granted a 6 month repayment deferral package as at 31 March 2020.
Customers who were 30 days past due or greater were not eligible for the 6 month repayment deferral packages.
 September 2020 v September 2019
Net loans and advances past due but not impaired decreased $5,149 million primarily driven by Australia Retail and Commercial division home loan
portfolio in the 1-29 days and 30-59 days segments due to the customer uptake of COVID-19 deferral packages in the September 2020 half.
 September 2020 v March 2020
Net loans and advances past due but not impaired decreased $6,273 million primarily driven by Australia Retail and Commercial division home loan
portfolio in the 1-29 days and 30-59 days segments due to the customer uptake of COVID-19 deferral packages in the September 2020 half.

GROUP RESULTS


37
Loan Deferral and Relief Packages
1

Since March 2020, the Group has offered various forms of assistance to customers to counteract the impact of COVID-19 on the ability of customers to
meet their loan obligations. The assistance provided has included arrangements such as temporary deferral of principal and interest repayments,
replacing principal and interest with interest only repayments, and extension of loan maturity dates.
The Group does not consider that when a customer is first provided assistance, all other things being equal, that there has been a Significant Increase in
Credit Risk (SICR) and a consequent impact on ECL when assessing provisions. Subsequent to take-up, customers have been contacted to discuss
available options once the packages reach their end date. This additional information on the customer’s financial position and ability to recommence their
loan repayments is used to assist in classification of customers into risk categories. Customers in higher risk categories, and those who have requested a
deferral extension, have been classified as having a SICR. The Group continues to work with our customers on arrangements in respect of their loan
obligations once the assistance package has ceased.
The categories of assistance packages provided and the amounts outstanding as at 30 September 2020 are noted in the following table:


Australia Geography New Zealand Geography
Total


At 30 September 2020 At 30 September 2020
At 30 September
2020
Assistance package category

$M $M $M
Loan deferral package


Retail

26,117 3,705
29,822
Commercial and other

8,989 193 9,182
Interest Only


Retail

126 2,287
2,413
Commercial and other

33 494 527
Term extensions



Retail

3 611 614
Commercial and other

24 66 90
Total

35,292 7,356 42,648



Retail

26,246 6,603 32,849
Commercial and other

9,046 753 9,799
Total

35,292 7,356
42,648
1.
COVID-19 loan deferral packages are available to customers if either their loan repayments are less than 30 days past due, or if their repayments are less than 90 days past due but were up
to date at 1 March 2020.