Update on large/notable items in 1H21 results

Australia and New Zealand Banking Group Limited
9/833 Collins Street Docklands Victoria 3008 Australia
ABN 11 005 357 522

News Release
For Release: 30 April 20 21
Update on large/notable items in 1 H21 results

ANZ today announced its first half 2021 Cash Profit will be impacted by a number of
large/notable items:

• $135m (after tax) of equity accounted losses from AMMB Holding Berhad (‘AmBank’)
relating to goodwill impairment recognised by AmBank at 31 March 2021 (no impact on
ANZ’s Common Equity Tier 1 ‘CET1’ capital).

• $251m (after tax) relating to the write-down of goodwill attributable to the ANZ Share
Investing business
1
as a result of that business being reclassified as held-for -sale,
reflecting a continuation of the bank’s simplification strategy (no impact on ANZ’s CET1
capital).

• $108m (after tax) of additional customer remediation charges.

• $63m (after tax) comprised of restructuring charges and other smaller divestment
impacts.

These large/notable items announced today are in addition to those previously advised
during the half, namely:

• $48m (after tax) in respect of the agreement to settle a class action brought against
ANZ in the United States during 2016
2
, and related legal and other costs.

• $212m (after tax) of equity accounted losses from AmBank relating to the agreed
settlement with the Malaysian Ministry of Finance as announced on 1 March
3
(no impact
on ANZ’s CET1 capital).


In aggregate, ANZ’s first half 2021 Cash Profit after tax will be impacted by $817m,
equivalent to ~5 basis points of CET1 capital.

Tables included on the next page.

1
Arising from the acquisition of E-Trade Australia Ltd in 2007
2
ANZ news release of 22 March 2021 ‘ANZ agrees to settle US class action complaint’
3
ANZ news release 1 March 2021 ‘Update on AMMB Holdings’

The following tables are provided to illustrate the impacts of the above items to continuing
Cash Profit after tax (versus prior comparable period and half on half):

Item 1H 2021
($m)
1H 2020
($m)
Movement
($m)
Asian associate items 347 - 347
Divestment impacts 238 (27) 265
Customer remediation 108 91 17
Restructuring 76 74 2
Litigation settlements 48 - 48
Asian associate impairments - 815 (815)
Lease-related items - 34 (34)
Total 817 987 (170)

Item 1H 2021
($m)
2H 2020
($m)
Movement
($m)
Asian associate items 347 66 281
Divestment impacts 238 4 234
Customer remediation 108 188 (80)
Restructuring 76 41 35
Litigation settlements 48 - 48
Accelerated software amortisation - 138 (138)
Goodwill write-off - 77 (77)
Total 817 514 303










For media enquiries contact:

Stephen Ries, +61 409 655 551










For analyst enquiries contact:

Jill Campbell, +61 3 8654 7749
Cameron Davis, +61 3 8654 7716
The recurring impact of the new lease accounting standard (AASB 16) adopted on 1 October 2019 has
been removed from previously reported large/notable items as the 2020 comparative periods are now
presented on a consistent basis to the March 2021 half.


Approved for distribution by ANZ’s Continuous Disclosure Committee

Large/Notable items - continuing operations

The Group has recognised some large/notable items within cash profit from continuing operations. These items are shown in the tables below.


March 2021 Half Year

March 2020 Half Year

Large/notable items included in continuing cash profit

Large/notable items included in continuing cash profit

Gain/(Loss)
on sale from
divestments
$M
Customer
remediation
$M
Litigation
settlements
$M
Restruc-
turing
$M
Asian
associate
items
$M
Total
$M
Divested
business results
$M
Customer
remediation
$M
Restructuring
$M
Lease-related
items
1

$M
Asian associate
impairments
$M
Total
$M
Cash Profit
Net interest income - (56) - - -
(56)
75 (22) - - -
53
Other operating income
(238) (18) - - (347)
(603)
1 (36) - - (815)
(850)
Operating income (238) (74) - - (347)
(659)
76 (58) - - (815)
(797)
Operating expenses - (92) (69) (105) -
(266)
(18) (71) (105) (50) -
(244)
Profit before credit impairment
and income tax
(238) (166) (69) (105) (347)
(925)
58 (129) (105) (50) (815)
(1,041)
Credit impairment (charge)/
release
- - - - -
-
(20) - - - -
(20)
Profit before income tax (238) (166) (69) (105) (347)
(925)
38 (129) (105) (50) (815)
(1,061)
Income tax benefit/(expense)
and non-controlling interests
- 58 21 29 -
108
(11) 38 31 16 -
74
Cash profit/(loss)
from continuing operations
(238) (108) (48) (76) (347)
(817)
27 (91) (74) (34) (815)
(987)


March 2021 Half Year September 2020 Half Year

Large/notable items included in continuing cash profit Large/notable items included in continuing cash profit

Gain/(Loss)
on sale from
divestments
$M
Customer
remediation
$M
Litigation
settlements
$M
Restruc-
turing
$M
Asian
associate
items
$M
Total
$M
Gain/(Loss)
on sale from
divestments
$M
Divested
business
results
$M
Customer
remediation
$M
Goodwill
write-off
$M
Restruc-
turing
$M
Lease-
related
items
1

$M
Accelerated
software
amortisation
$M
Asian
associate
items
$M
Total
$M
Cash Profit




Net interest income - (56) - - -
(56)
- 59 (84) - - - - -
(25)
Other operating income (238) (18) - - (347)
(603)
(38) 1 (32) - - - - (68)
(137)
Operating income (238) (74) - - (347)
(659)
(38) 60 (116) - - - - (68)
(162)
Operating expenses - (92) (69) (105) -
(266)
(6) (16) (138) (77) (56) - (197) -
(490)
Profit before credit impairment
and income tax
(238) (166) (69) (105) (347)
(925)
(44) 44 (254) (77) (56) - (197) (68)
(652)
Credit impairment (charge)/
release
- - - - -
-
- (3) - - - - - -
(3)
Profit before income tax (238) (166) (69) (105) (347)
(925)
(44) 41 (254) (77) (56) - (197) (68)
(655)
Income tax benefit/(expense)
and non-controlling interests
- 58 21 29 -
108
10 (11) 66 - 15 - 59 2
141
Cash profit/(loss)
from continuing operations
(238) (108) (48) (76) (347)
(817)
(34) 30 (188) (77) (41) - (138) (66)
(514)
1.
Comparative numbers have been restated to remove the recurring impact of the new lease accounting standard (AASB 16) adopted on 1 October 2019 as the 2020 comparative periods are now presented on a consistent basis to the March 2021 half.

Large/Notable items - continuing operations

The Group has recognised some large/notable items within cash profit from continuing operations. The impact of these items on the divisional results are shown in the tables below.




March 2021 Half Year

March 2020 Half Year

Large/notable items included in continuing cash profit

Large/notable items included in continuing cash profit

Gain/(Loss)
on sale from
divestments
$M
Customer
remediation
$M
Litigation
settlements
$M
Restruc-
turing
$M
Asian
associate
items
$M
Total
$M
Divested
business results
$M
Customer
remediation
$M
Restructuring
$M
Lease-related
items
1

$M
Asian associate
impairments
$M
Total
$M
Profit before income tax
Australia Retail and Commercial (251) (191) - (40) -
(482)
- (101) (85) (15) -
(201)
Institutional
- 25 (69) (16) -
(60)
- - (4) (7) -
(11)
New Zealand
13 - - (10) -
3
34 (26) (11) - -
(3)
Pacific
- - - (1) -
(1)
- (2) - (2) -
(4)
TSO and Group Centre
- - - (38) (347)
(385)
4 - (5) (26) (815)
(842)
Profit before income tax
(238) (166) (69) (105) (347)
(925)
38 (129) (105) (50) (815)
(1,061)
Income tax benefit/(expense)
and non-controlling interests
- 58 21 29 -
108
(11) 38 31 16 -
74
Cash profit/(loss)
from continuing operations
(238) (108) (48) (76) (347)
(817)
27 (91) (74) (34) (815)
(987)


March 2021 Half Year

September 2020 Half Year

Large/notable items included in continuing cash profit

Large/notable items included in continuing cash profit

Gain/(Loss)
on sale from
divestments
$M
Customer
remediation
$M
Litigation
settlements
$M
Restruc-
turing
$M
Asian
associate
items
$M
Total
$M
Gain/(Loss)
on sale from
divestments
$M
Divested
business
results
$M
Customer
remediation
$M
Goodwill
write-off
$M
Restruc-
turing
$M
Lease-
related
items
1

$M
Accelerated
software
amorisation
$M
Asian
associate
items
$M
Total
$M
Profit before income tax
Australia Retail and Commercial (251) (191) - (40) -
(482)
- - (169) - (4) (19) (31) -
(223)
Institutional - 25 (69) (16) -
(60)
- - (20) - (13) (7) (38) -
(78)
New Zealand 13 - - (10) -
3
- 39 (50) (27) (20) - (11) -
(69)
Pacific - - - (1) -
(1)
- - (15) (50) - (1) - -
(66)
TSO and Group Centre - - - (38) (347)
(385)
(44) 2 - - (19) 27 (117) (68)
(219)
Profit before income tax (238) (166) (69) (105) (347)
(925)
(44) 41 (254) (77) (56) - (197) (68)
(655)
Income tax benefit/(expense)
and non-controlling interests
- 58 21 29 -
108
10 (11) 66 - 15 - 59 2
141
Cash profit/(loss)
from continuing operations
(238) (108) (48) (76) (347)
(817)
(34) 30 (188) (77) (41) - (138) (66)
(514)
1.
Comparative numbers have been restated to remove the recurring impact of the new lease accounting standard (AASB 16) adopted on 1 October 2019 as the 2020 comparative periods are now presented on a consistent basis to the March 2021 half.
.