First Quarter Trading Update

Australia and New Zealand Banking Group Limited
9/833 Collins Street Docklands Victoria 3008 Australia
ABN 11 005 357 522
News Release
For Release: 18 February 2021

First Quarter Trading Update

ANZ today announced an unaudited statutory profit after tax for the first quarter to 31
December 2020 of $1,624 million with an unaudited cash profit from continuing operations
of $1,810 million, up 54% on the average of the last two quarters of 2020.

FINANCIAL PERFORMANCE SUMMARY

Earnings ($m) 1H20
Quarterly
Average
2H20
Quarterly
Average
1Q21

Statutory Profit After Tax 773 1,016 1,624
Cash Profit (Continuing Operations) 707 1,173 1,810
Cash Profit (Continuing & ex large/notable
items)
1

1,200 1,429 1,843
Profit Before Credit Impairment & Tax 2,508 2,524 2,435
Credit Impairment Charge / (Release) 827 531 (150)
Individual Provision Charge / (Release) 311 194 23
Collective Provision Charge / (Release) 516 337 (173)
Capital (%) Mar-20 Sep-20 Dec-20
APRA Level 2 CET1 Ratio 10.8 11.3 11.7
APRA Level 2 CET1 Ratio (Pro forma
2
) ~11.8
1 Earnings on continuing & ex large / notable basis unless otherwise stated
2 Pro forma adjustments include conversion of NZ capital notes in 2022

CEO COMMENTARY

ANZ Chief Executive Shayne Elliott said: “This is a strong performance in volatile trading
conditions that again highlights the benefits of disciplined execution of our strategy as well
as maintaining a simpler and well balanced portfolio of businesses.

“We’re pleased to have achieved these results for shareholders while also helping customers
in difficulty and providing the vital lending needed to support the economic recovery. All our
major businesses performed well through the quarter with market share gains in our key
home loan market in Australia as well as record home loan volumes in New Zealand.

“Our diversified portfolio in Institutional delivered again for shareholders with a strong
contribution from our international network. Markets had another solid quarter although
revenue was down relative to the historic highs we experienced at the end of last year.

“Margins were up across the group due to higher volume growth in targeted segments and a
disciplined and active approach to risk and pricing. The combination drove Group revenue up
4% for the quarter when excluding the impact of our Markets business.

“The small release in the collective provision reflected improved economic conditions,
particularly here in Australia. However, recent lockdowns in Perth, Brisbane, Melbourne and
Auckland demonstrate how quickly things can change and we believe our current settings
are both prudent and appropriate given this uncertainty.

“From an operational perspective, we successfully managed a significant increase in
customer and transaction volumes while keeping costs in check and operating with the
majority of our employees still working remotely. We have been focussed on costs for many
years and we were again able to reduce how much we spent on running the bank while
investing in initiatives that will deliver long-term benefits to shareholders.

“We again strengthened our capital position resulting in a further increase in net tangible
assets per share.

“ANZ is well positioned heading into the remainder of 2021 with good momentum in our
core activities. The work done to simplify and de-risk the business over the past five years
set us up well and we have the capital, liquidity and operational capacity to continue to
support our customers and the broader economy through what remains a volatile period,”
Mr Elliott said.

COVID-19 SUPPORT

ANZ supported ~145k home loan and commercial customers in Australia and New Zealand
with repayment deferrals to help them manage the impact of COVID-19. Approximately 1%
of home loan customers in Australia and New Zealand are still receiving COVID support. In
Australia, 84% of deferred home loans have rolled off with 98% returning to repayment. In
New Zealand, 92% of loan deferrals have rolled off with 86% returning to repayments.

Australian Deferrals

Housing
#Accounts
Housing
FUM
Business
#Accounts
Business
FUM
Total loan deferrals provided 96k $33b 23.8k $10b
Active deferrals 15k $6b 2.5k $1b
Loans completed deferral 81k $27b 21.3k $9b
- Returned to repayment 98% 97% 90% 90%
- Restructured 1% 2% 6% 7%
- Transferred to hardship 1% 1% 4% 3%

CREDIT QUALITY

The total provision result in the December quarter was a net release of $150m. This
comprises an individually assessed provision (IP) charge of $23m and a collective provision
(CP) release of $173m. The release of CP is equivalent to ~10% of the $1.7b set aside
during FY20. The low IP charge reflects the continued effect of Government and bank
support packages for customers affected by COVID-19. The CP release is prudent when
balancing the improvement in the economic outlook at the end of the December quarter
with the level of ongoing uncertainty. As at 31 December, the CP balance of $4,801 million
represents additional reserves of $1,425 million compared to pre-COVID levels at 30
September 2019.

Interviews regarding the trading update, including with Chief Executive Officer
Shayne Elliott, can be found at bluenotes.anz.com
.

For media enquiries contact:

Stephen Ries
Head of Corporate Communications
Tel: +61 409 655 551
For analyst enquiries:

Jill Campbell
GGM Investor Relations
+61 3 8654 7749



Cameron Davis,
Executive Manager –
Investor Relations
Tel: +61 8654 7716

Approved for distribution by ANZ’s Continuous Disclosure Committee