ANZ 2021 Half Year Results Documents

Australia and New Zealand Banking Group Limited

ABN 11 005 357 522







Half Year
31 March 2021






Consolidated Financial Report
Dividend Announcement
and Appendix 4D




The Consolidated Financial Report and Dividend Announcement contains information required by Appendix 4D 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 4D


2


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



Report for the half year ended 31 March 2021



Operating Results
1



AUD million


Statutory operating income from continuing operations -6% to 8,367





Statutory profit attributable to shareholders 90% to 2,943





Cash profit
2
large to 2,982


Cash profit from continuing operations
2
large to 2,990








Dividends
3


Cents

Franked

per

amount

share

per share


Proposed interim dividend
4


70

100%












Record date for determining entitlements to the proposed 2021 interim dividend 11 May 2021



Payment date for the proposed 2021 interim dividend 1 July 2021


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 2021 interim dividend. For the 2021 interim dividend, ANZ intends to provide shares under the DRP through an on-market
purchase 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 14 May 2021, 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 2021 interim dividend must be received by
ANZ's Share Registrar by 5.00pm (Australian Eastern Standard Time) on 12 May 2021. 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 14 May 2021.








1
Unless otherwise noted, all comparisons are to the half year ended 31 March 2020.
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 comprise economic hedging and similar accounting items that
represent timing differences that will reverse through earnings in the future. The net after tax adjustment was an increase to statutory profit of $39 million (all attributable to continuing
operations) made up of several items. Refer pages 71 to 73 for further details.
3
There is no conduit foreign income attributed to the dividends.
4
It is proposed that the interim dividend will be fully franked for Australian tax purposes (30% tax rate) and carry New Zealand imputation credits of NZD 8 cents per ordinary share.

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


3

CONSOLIDATED FINANCIAL REPORT, DIVIDEND ANNOUNCEMENT AND APPENDIX 4D
Half year ended 31 March 2021



CONTENTS PAGE



Disclosure Summary 5
Summary 7
Group Results 19
Divisional Results 47
Profit Reconciliation 71
Condensed Consolidated Financial Statements 75
Supplementary Information 121
Definitions 131
ASX Appendix 4D Cross Reference Index 134
Alphabetical Index 135


















This Consolidated Financial Report, Dividend Announcement and Appendix 4D has been prepared for Australia and New Zealand Banking Group Limited
(“ANZBGL”, “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 resolution of a Committee of the Board of Directors on 4 May 2021.
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


4
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DISCLOSURE SUMMARY


5
SUMMARY OF 2021 HALF 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 2021 Half Year Results.

 Consolidated Financial Report, Dividend Announcement and Appendix 4D
 Half Year Results Investor Discussion Pack
 News Release
 APS 330 Pillar III Disclosure as at 31 March 2021
 Key Financial Data Summary
 United Kingdom Disclosure and Transparency Rules Submission

DISCLOSURE SUMMARY


6
This page has been left blank intentionally

SUMMARY


7

CONTENTS Page

Guide to Half Year Results 8
Statutory Profit Results 9
Cash Profit Results 10
Key Balance Sheet Metrics 12
Large/Notable Items - continuing operations 13
Full Time Equivalent Staff 18
Other Non-Financial Information 18

SUMMARY


8
Guide to Half Year Results
CORONAVIRUS (COVID-19)
The COVID-19 pandemic has caused major disruptions to community health and economic activities with wide-ranging impacts across many business
sectors in Australia, New Zealand and globally over the past 12 months. From March 2020, the Group offered various forms of assistance to customers to
counteract the impact of COVID-19. These support packages were phased out during the March 2021 half. In respect of the support packages offered,
94% of home loan support packages in Australia and New Zealand and 90% of business support packages in Australia have reverted back to loan
repayments, with the remaining having been either restructured or transferred to hardship. Refer to Note 10 of the Condensed Consolidated Financial
Statements for further details on loan support packages offered to customers.
Financial Statements Impacts
The ramifications of COVID-19 continue to be uncertain and it remains difficult to predict the impact or duration of the pandemic. In preparing the
Condensed Consolidated Financial Statements, the Group has made various accounting estimates for future events based on forecasts of economic
conditions which reflect expectations and assumptions as at 31 March 2021 that the Group believes are reasonable under the circumstances.
While pervasive across the financial statements, the estimation uncertainty is predominantly related to expected credit losses (ECL) where the Group
recognised a credit impairment release of $491 million pre-tax in the March 2021 half (Sep 20 half: $1,064 million charge; Mar 20 half: $1,674 million
charge). The credit impairment release in the current period was primarily driven by the release of allowance for collectively assessed ECL largely
reflecting the impact of an improved economic outlook relative to the outlook at the September 2020 half.
Refer to Note 1 of the Condensed Consolidated Financial Statements for further details on key estimation uncertainties associated with the preparation of
the 31 March 2021 results.

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 review within the context of the external auditor’s review of the Condensed Consolidated Financial Statements. Cash
profit is not subject to review 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 71 to 73 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
together with comparative information, where relevant, to provide transparency and aid comparison. Refer to pages 13 to 17 for details of
large/notable items.

DISCONTINUED OPERATIONS
The financial results of the divested Wealth Australia businesses 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’.
Refer to Note 13 of the Condensed Consolidated Financial Statements for further information.

SUMMARY


9
Statutory Profit Results






Half Year

Movement


Mar 21
$M
Sep 20
$M
Mar 20
$M

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Net interest income

6,986 6,827 7,222

2% -3%
Other operating income

1,381 1,917 1,671

-28% -17%
Operating income

8,367 8,744 8,893

-4% -6%
Operating expenses

(4,482) (4,778) (4,605)

-6% -3%
Profit before credit impairment and income tax

3,885 3,966 4,288

-2% -9%
Credit impairment (charge)/release

491 (1,064) (1,674)

large large
Profit before income tax

4,376 2,902 2,614

51% 67%
Income tax expense

(1,425) (862) (978)

65% 46%
Non-controlling interests

- - (1)

n/a -100%
Profit attributable to shareholders of the Company from continuing operations

2,951 2,040 1,635

45% 80%
Profit/(Loss) from discontinued operations

(8) (8) (90)

0% -91%
Profit attributable to shareholders of the Company

2,943 2,032 1,545

45% 90%

Earnings Per Ordinary Share (cents)

Half Year

Movement

Reference
Page
Mar 21 Sep 20 Mar 20

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Basic
93
103.7 71.8 54.6

44% 90%
Diluted 93
98.4 66.3 51.5 48% 91%



Half Year


Reference
Page
Mar 21 Sep 20 Mar 20
Ordinary Share Dividends (cents)


Interim
1
92 70 - 25
Final
1
92 - 35 -
Total 92
70 35 25
Ordinary share dividend payout ratio
2
92 67.7% 48.9% 45.9%
Profitability Ratios

Return on average ordinary shareholders' equity
3
9.5% 6.6% 5.1%
Return on average assets
0.56% 0.38% 0.30%
Net interest margin
1.63% 1.57% 1.69%
Net interest income to average credit RWAs
3.99% 3.66% 3.96%
Efficiency Ratios

Operating expenses to operating income 53.8% 55.2% 53.8%
Operating expenses to average assets
0.87% 0.91% 0.92%
Credit Impairment Charge/(Release)

Individually assessed credit impairment charge ($M) 187 395 626
Collectively assessed credit impairment charge/(release) ($M)
(678) 669 1,048
Total credit impairment charge ($M) 100
(491) 1,064 1,674
Individually assessed credit impairment charge as a % of average gross loans and advances
4
0.06% 0.12% 0.20%
Total credit impairment charge/(release) as a % of average gross loans and advances
4
(0.16%) 0.33% 0.53%
1.
Fully franked for Australian tax purposes (30% tax rate) and carry New Zealand imputation credits of NZD 8 cents for the proposed 2021 interim dividend (2020 final dividend: NZD 4 cents;
2020 interim dividend: NZD 3 cents).
2.
Dividend payout ratio for the March 2021 half is calculated using the proposed 2021 interim dividend of $1,992 million, based on the forecast number of ordinary shares on issue at the
dividend record date. Dividend payout ratios for the September 2020 half and the March 2020 half were calculated using actual dividend paid of $994 million and $709 million respectively.
3.
Average ordinary shareholders’ equity excludes non-controlling interests.
4.
Credit impairment charge used in the ratio relates to gross loans and advances and off-balance sheet commitments - undrawn and contingent liabilities.

SUMMARY


10
Cash Profit Results
1




Half Year

Movement


Mar 21
$M
Sep 20
$M
Mar 20
$M

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Net interest income

6,986 6,827 7,222

2% -3%
Other operating income

1,437 2,346 1,357

-39% 6%
Operating income

8,423 9,173 8,579

-8% -2%
Operating expenses

(4,482) (4,778) (4,605)

-6% -3%
Profit before credit impairment and income tax

3,941 4,395 3,974

-10% -1%
Credit impairment (charge)/release

491 (1,064) (1,674)

large large
Profit before income tax

4,432 3,331 2,300

33% 93%
Income tax expense

(1,442) (986) (886)

46% 63%
Non-controlling interests

- - (1)

n/a -100%
Cash profit from continuing operations

2,990 2,345 1,413

28% large
Cash profit/(loss) from discontinued operations

(8) (8) (90)

0% -91%
Cash profit

2,982 2,337 1,323

28% large

Earnings Per Ordinary Share (cents)

Half Year

Movement

Mar 21 Sep 20 Mar 20

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Basic
105.0 82.5 46.7

27% large
Diluted
99.6 75.8 44.7 31% large


Half Year

Reference
Page
Mar 21 Sep 20 Mar 20
Ordinary Share Dividends
Ordinary share dividend payout ratio
2
66.8% 42.5% 53.6%
Profitability Ratios

Return on average ordinary shareholders' equity
3
9.7% 7.6% 4.4%
Return on average assets
0.57% 0.43% 0.26%
Net interest margin
1.63% 1.57% 1.68%
Net interest income to average credit RWAs
3.99% 3.66% 3.96%
Efficiency Ratios

Operating expenses to operating income 53.5% 52.6% 55.2%
Operating expenses to average assets
0.87% 0.90% 0.92%
Credit Impairment Charge/(Release)

Individually assessed credit impairment charge ($M) 29 187 395 626
Collectively assessed credit impairment charge/(release) ($M) 29
(678) 669 1,048
Total credit impairment charge ($M) 29
(491) 1,064 1,674
Individually assessed credit impairment charge as a % of average gross loans and advances
4
0.06% 0.12% 0.20%
Total credit impairment charge/(release) as a % of average gross loans and advances
4
(0.16%) 0.33% 0.53%
Cash Profit/(Loss) By Division Half Year

Movement

Mar 21
$M
Sep 20
$M
Mar 20
$M

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Australia Retail and Commercial

1,782 1,123 1,214 59% 47%
Institutional
948 1,244 610 -24% 55%
New Zealand
771 450 567 71% 36%
Pacific
7 (82) 20 large -65%
TSO and Group Centre
(518) (390) (998) 33% -48%
Discontinued Operations
(8) (8) (90) 0% -91%
Cash profit
2,982 2,337 1,323 28% large
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 71
to 73 for the reconciliation between statutory and cash profit. Refer to pages 13 to 17 for information on large/notable items included in continuing cash profit.
2.
Dividend payout ratio for the March 2021 half is calculated using the proposed 2021 interim dividend of $1,992 million, based on the forecast number of ordinary shares on issue at the
dividend record date. Dividend payout ratios for the September 2020 half and the March 2020 half were calculated using actual dividend paid of $994 million and $709 million respectively.
3.
Average ordinary shareholders’ equity excludes non-controlling interests.
4.
Credit impairment charge used in the ratio relates to gross loans and advances and off-balance sheet commitments - undrawn and contingent liabilities.

SUMMARY


11
Key Cash Profit Metrics
Discontinued Operations
The financial results of the divested Wealth Australia businesses 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.
There were no material financial impacts from the discontinued operations in the March 2021 half.
Continuing Operations
Key cash profit metrics specific to continuing operations are presented in the table below:


Half Year Movement



Mar 21 Sep 20 Mar 20
Mar 21
v. Sep 20
Mar 21
v. Mar 20

Earnings Per Ordinary Share (cents) - continuing operations

Earnings per share (basic) 105.3 82.8 49.9 27% large




Half Year



Mar 21 Sep 20 Mar 20

Ordinary Share Dividends - continuing operations

Ordinary share dividend payout ratio 66.6% 42.4% 50.2%
Profitability Ratios - continuing operations



Return on average ordinary shareholders' equity

9.7% 7.6% 4.7%
Return on average assets

0.57% 0.43% 0.28%
Net interest margin

1.63% 1.57% 1.69%
Net interest income to average credit RWAs
3.99% 3.66% 3.96%
Efficiency Ratios - continuing operations



Operating expenses to operating income

53.2% 52.1% 53.7%
Operating expenses to average assets
0.86% 0.88% 0.90%

SUMMARY


12
Key Balance Sheet Metrics


As at Movement

Reference
Page
Mar 21 Sep 20 Mar 20
Mar 21
v. Sep 20
Mar 21
v. Mar 20
Capital Management


Common Equity Tier 1 (Level 2)

- APRA Basel 3 42
12.4% 11.3% 10.8%
- Internationally Comparable Basel 3
1
42 18.1% 16.7% 15.5%
Credit risk weighted assets ($B) 42
341.9 360.0 386.0 -5% -11%
Total risk weighted assets ($B) 42
408.2 429.4 449.0 -5% -9%
APRA Leverage Ratio 44
5.5% 5.4% 5.0%
Balance Sheet: Key Items


Gross loans and advances ($B) 618.6 622.1 661.3 -1% -6%
Net loans and advances ($B)
614.4 617.1 656.6 0% -6%
Total assets ($B)
1,018.3 1,042.3 1,150.0 -2% -11%
Customer deposits ($B)
561.5 552.4 566.5 2% -1%
Total equity ($B)
62.6 61.3 61.4 2% 2%

As at Movement
Liquidity Risk
Reference
Page
Mar 21 Sep 20 Mar 20
Mar 21
v. Sep 20
Mar 21
v. Mar 20
Liquidity Coverage Ratio
2
40 138% 139% 139% -1% -1%
Net Stable Funding Ratio 41
121% 124% 118% -3% 3%

As at Movement

Reference
Page
Mar 21 Sep 20 Mar 20
Mar 21
v. Sep 20
Mar 21
v. Mar 20
Impaired Assets


Gross impaired assets ($M) 32
2,473 2,459 2,599 1% -5%
Gross impaired assets as a % of gross loans and advances
0.40% 0.40% 0.39%
Net impaired assets ($M) 32
1,664 1,568 1,506 6% 10%
Net impaired assets as a % of shareholders' equity
2.7% 2.6% 2.5%
Individually assessed provision ($M) 31 809 891 1,093 -9% -26%
Individually assessed provision as a % of gross impaired assets
32.7% 36.2% 42.1%
Collectively assessed provision ($M) 31
4,285 5,008 4,501 -14% -5%
Collectively assessed provision as a % of credit risk weighted assets
1.25% 1.39% 1.17%
Net Tangible Assets
Net tangible assets attributable to ordinary shareholders ($B)
3
58.5 56.9 56.4 3% 4%
Net tangible assets per ordinary share ($)
20.57 20.04 19.89 3% 3%


As at Movement
Net Loans And Advances by division
Mar 21
$B
Sep 20
$B
Mar 20
$B
Mar 21
v. Sep 20
Mar 21
v. Mar 20
Australia Retail and Commercial 344.3 339.4 329.8 1% 4%
Institutional
147.5 157.6 199.4 -6% -26%
New Zealand
120.5 116.6 125.2 3% -4%
Pacific
1.7 1.9 2.2 -11% -23%
TSO and Group Centre
0.4 1.6 - -75% n/a
Net loans and advances by division
614.4 617.1 656.6 0% -6%
1.
See page 43 for further details regarding the differences between APRA Basel 3 and Internationally Comparable Basel 3 standards.
2.
Liquidity Coverage Ratio is calculated on a half year average basis.
3.
Equals total shareholders’ equity less total non-controlling interests, goodwill and other intangible assets.

SUMMARY


13
Large/Notable Items - continuing operations
Large/notable items included in cash profit from continuing operations are described below.
Divestment impacts
As the divestments below did not qualify as discontinued operations under accounting standards, they form part of the 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 Divested business results
Half Year Half Year
Cash Profit Impact
Mar 21
$M
Sep 20
$M
Mar 20
$M
Mar 21
$M
Sep 20
$M
Mar 20
$M
UDC - (44) - - 41 38
New Zealand legacy insurance portfolio
13 - - - - -
ANZ Share Investing
(251) - - - - -
Profit/(Loss) before income tax
(238) (44) - - 41 38
Income tax benefit/(expense) and non-controlling interests - 10 - - (11) (11)
Cash profit/(loss) from continuing operations
(238) (34) - - 30 27
 UDC Finance (UDC)
The Group completed the sale of UDC to Shinsei Bank Limited (Shinsei Bank) 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.
 New Zealand legacy insurance portfolio
During the March 2021 half, the Group sold and transferred its rights and obligations relating to servicing a legacy portfolio of insurance underwritten
by Tower Limited (Tower) in the New Zealand division to Tower and recognised a gain after tax of $13 million.
 ANZ Share Investing
During the March 2021 half, the Group reclassified its ANZ Share Investing business as held for sale reflecting a continuation of the Group’s
simplification strategy. As a consequence of remeasuring the net assets at fair value less costs to sell, the Group recognised a loss after tax of $251
million relating to the write-down of goodwill attributable to the business. This had no impact to Common Equity Tier 1 (CET1) capital as it resulted in
an equivalent reduction in capital deductions.

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


Mar 21 Sep 20 Mar 20
Cash Profit Impact $M $M$M
Operating income
(74) (116)(58)

Operating expenses
(92) (138)(71)

Profit/(Loss) before income tax
(166) (254)(129)

Income tax benefit/(expense) and non-controlling interests 58 6638

Cash profit/(loss) from continuing operations
(108) (188)(91)


 Litigation settlements
During the March 2021 half, the Group reached an agreement to settle a United States class action related to the Bank Bill Swap Rate (BBSW) and
the trading of BBSW-based products. The settlement is without admission of liability and remains subject to negotiation and execution of complete
settlement terms as well as court approval. In the March 2021 half, the Group recognised expenses of $48 million after tax in relation to the
settlement and related costs.
 Restructuring
The Group recognised restructuring expenses of $76 million after tax in the March 2021 half (Sep 20 half: $41 million; Mar 20 half: $74 million)
largely relating to business and property changes in the Australia Retail and Commercial division and operational changes in the TSO and Group
Centre division.

SUMMARY


14
 Asian associate items

Half Year



Mar 21 Sep 20 Mar 20


$M $M$M

AmBank 1MDB settlement (212) --


AmBank goodwill impairment (135) --

PT Panin AASB 9 adjustment
- (68)-


Profit/(Loss) before income tax (347) (68)-


Income tax benefit/(expense) and non-controlling interests - 2-


Cash profit/(loss) from continuing operations (347) (66)-


AmBank 1MDB settlement
Following AMMB Holdings Berhad’s (AmBank) agreement with the Malaysian Ministry of Finance to resolve potential claims relating to its
involvement with 1Malaysia Development Berhad (1MDB), the Group recognised a $212 million reduction in equity accounted earnings after tax
reflecting its share of the settlement provision during the March 2021 half. This had no impact to CET1 capital as it resulted in an equivalent reduction
in capital deductions.
AmBank goodwill impairment
During the March 2021 half, AmBank partially impaired goodwill and the Group recognised a $135 million reduction in equity accounted earnings
after tax reflecting its share of the impairment recognised by AmBank. This had no impact to CET1 capital as it resulted in an equivalent reduction in
capital deductions.
PT Panin AASB 9 adjustment
When the Group adopted AASB 9 Financial Instruments on 1 October 2018, an estimate of PT Bank Pan Indonesia (PT Panin)’s transition
adjustment was recognised through opening retained earnings to align accounting policies. During the September 2020 half, PT Panin adopted
AASB 9 and recognised 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 on 1 October 2018. This had no impact to CET1 capital as it resulted in an equivalent
reduction in capital deductions.
 Asian associate impairments
During the March 2020 half, the Group recognised an impairment of $815 million 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 (VIU) calculations at 31 March 2020. AmBank was impaired by $595 million
and PT Panin was impaired by $220 million. This had no impact to CET1 capital as it resulted in an equivalent reduction in capital deductions.
The Group completed VIU assessments and assessment of carrying values as at 31 March 2021 and determined that no adjustment to carrying
values was necessary.
 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 assets remain 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 CET1 capital as it resulted in an equivalent reduction in capital deductions.
 Goodwill write-off
During the September 2020 half, the Group wrote off goodwill of $77 million after tax previously held in the Pacific and New Zealand divisions:
 Pacific division - The impact of COVID-19 on the economies of the Pacific region had been significant and conditions were 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 impairment was
required for the carrying values of other assets in the Pacific division.
 New Zealand division - As a result of changes in the economic environment and outlook, the Group announced its intention to begin winding up
the Bonus Bonds business (“Bonus Bonds”, a managed investment product) in the New Zealand division by 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 CET1 capital as it resulted in an equivalent reduction in capital deductions.
 Lease-related items
Following the adoption of the new lease accounting standard (AASB 16) on 1 October 2019 the Group recognised additional charges which were
presented as a large/notable item at the time as the 2019 comparatives were prepared under the previous lease accounting standard (AASB 117).
During the March 2021 half, the recurring AASB 16 impacts have been removed as the comparative periods are now presented on a consistent basis
to the March 2021 half. The residual lease related item relates to non-recurring items recognised in 2020.

SUMMARY
15
Large/Notable items - continuing operations

Cash Profit Results
Ma
rch 2021 Half Year v March 2020 Half Year

March 2021 Half Year v S
eptember 2020 Half Year

Mar 21
Large/
notables
Mar 21
ex. Large/
notables Mar 20
Large/
notables
1

Mar 20
ex. Large/
notables
Movt
ex. Large/
notables
Mar 21
Large/
notables
Mar 21
ex. Large/
notables Sep 20
Large/
notables
1

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

$M
$M
$M
$M
$M
$M
%
$M
$M
$M $M $M $M %
Net interest income
6,986
(56)
7,042
7,222
53
7,169
-2%
6,986
(56)
7,042
6,827
(25)
6,852
3%
Other operating income
1,437
(603)
2,040
1,357
(850)
2,207
-8%
1,437
(603)
2,040
2,346
(137)
2,483
-18%
Operating income
8,423
(659)
9,082
8,579
(797)
9,376
-3%
8,423
(659)
9,082
9,173
(162)
9,335
-3%
Operating expenses
(4,482)
(266)
(4,216)
(4,605)
(244) (4,361)
-3%
(4,482)
(266)
(4,216)
(4,778)
(490)
(4,288)
-2%
Profit before credit im
pairment and income tax
3,941
(925)
4,866
3,974
(1,041)
5,015
-3%
3,941
(925)
4,866
4,395
(652)
5,047
-4%
Credit impairment (charge)/release
491
-
491
(1,674)
(20) (1,654)
large
491
-
491
(1,064)
(3)
(1,061)
large
Profit/(Loss) before income tax
4,432
(925)
5,357
2,300
(1,061)
3,361
59%
4,432
(925)
5,357
3,331
(655)
3,986
34%
Income tax benefit/(expense)
and non-controlling interests
(1,442)
108
(1,550)
(887)
74
(961)
61%
(1,442)
108
(1,550)
(986)
141
(1,127)
38%
Cash profit/(loss) from continuing operations
2,990
(817)
3,807
1,413
(987)
2,400
59%
2,990
(817)
3,807
2,345
(514)
2,859
33%

Cash Profit/(Loss) By Division
March 2021 Half Year v March 202
0 Half Year

March 2021 Half Y
ear v September 2020 Half Year

Mar 21
Large/
notables
Mar 21
ex. Large/
notables Mar 20
Large/
notables
1

Mar 20
ex. Large/
notables
Movt
ex. Large/
notables
Mar 21
Large/
notables
Mar 21
ex. Large/
notables Sep 20
Large/
notables
1

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

$M
$M
$M
$M
$M
$M
%
$M
$M
$M $M $M $M %
Australia Retail and Commercial
1,782
(414)
2,196
1,214
(141)
1,355
62%
1,782
(414)
2,196
1,123
(156)
1,279
72%
Institutional
948
(34)
982
610
(8)
618
59%
948
(34)
982
1,244
(61)
1,305
-25%
New Zealand
771
6
765
567
(2)
569
34%
771
6
765
450
(58)
508
51%
Pacific
7
(1)
8
20
(3)
23
-65%
7
(1)
8
(82)
(64)
(18)
large
TSO and Group Centre
2

(518)
(374)
(144)
(998)
(833)
(165)
-13%
(518)
(374)
(144)
(390)
(175)
(215)
-33%
Cash profit/(loss) from continuing operations
2,990
(817)
3,807
1,413
(987)
2,400
59%
2,990
(817)
3,807
2,345
(514)
2,859
33%
1.
Comparative numbers have been restated to remove the recurring impact of the new lease accounting standard (AASB 16) adopted o
n 1 October 2019 as the comparative periods are now presented on a consistent basis to the March 2021 half.
2.
TSO and Group Centre included the loss on sale from UDC divestment in the September 2020 half. It also included a component of
the divested business results for the completed sale of UDC in the September and March 2020 halves.

SUMMARY
16
Large/Notable items - continuing operations


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



March 2021 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
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

Se
ptember 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
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 o
n 1 October 2019 as the comparative periods are now presented on a consistent basis to the March 2021 half.

SUMMARY
17
Large/Notable items - continuing operations

The Group has recognised some large/notable items within cash p
rofit 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 include
d in continuing cash profit

Large/notable items include
d 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
2

-
-
-
(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 include
d in continuing cash profit

Large/notable items include
d 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
2

-
-
-
(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 o
n 1 October 2019 as the comparative periods are now presented on a consistent basis to the March 2021 half.
2.
TSO and Group Centre included the loss on sale from UDC divestment in the September 2020 half. It also included a component of
the divested business results for the completed sale of UDC for the September and March 2020 halves.

SUMMARY


18
Full Time Equivalent Staff

As at 31 March 2021, ANZ employed 38,555 staff (Sep 20: 38,579; Mar 20: 38,939) on a full-time equivalent (FTE) basis.

Division

As at

Movement

Mar 21 Sep 20 Mar 20
Mar 21
v. Sep 20
Mar 21
v. Mar 20
Australia Retail and Commercial 14,118 14,078 14,061 0% 0%
Institutional
5,215 5,291 5,350 -1% -3%
New Zealand
1
6,691 6,679 7,009 0% -5%
Pacific
1,101 1,113 1,108 -1% -1%
TSO and Group Centre
1
10,719 10,345 10,306 4% 4%
Total FTE from continuing operations
37,844 37,506 37,834 1% 0%
Discontinued operations
2
711 1,073 1,105 -34% -36%
Total FTE
38,555 38,579 38,939 0% -1%
Average FTE 38,532 38,798 39,154 -1% -2%

Geography

As at

Movement

Mar 21 Sep 20 Mar 20
Mar 21
v. Sep 20
Mar 21
v. Mar 20
Australia 18,664 18,689 18,823 0% -1%
Asia, Pacific, Europe & America
12,678 12,680 12,584 0% 1%
New Zealand
7,213 7,210 7,532 0% -4%
Total FTE
38,555 38,579 38,939 0% -1%
1.
FTE has been restated to reflect the transfer of New Zealand Technology operations from the TSO and Group Centre division to the New Zealand division (Sep 20: 918; Mar 20: 906).
2.
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 in the March 2020 half.


Other Non-Financial Information


Half Year

Movement
Shareholder value - ordinary shares

Mar 21 Sep 20 Mar 20

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Share price ($)
- high
29.55 21.22 28.67 39% 3%
- low
16.97 15.07 14.10 13% 20%
- closing

28.18 17.22 16.96 64% 66%
Closing market capitalisation of ordinary shares ($B)
80.2 48.8 48.1 64% 67%
Total shareholder returns (TSR)
66.6% 2.9% -38.7% large large



As at Mar 21
Credit ratings

Short-
Term
Long-
Term Outlook
Moody's Investor Services P-1 Aa3 Stable
Standard & Poor's A-1+ AA- Negative
Fitch Ratings
1
F1 A+ Negative
1.
On 12 April 2021 Fitch Ratings revised its outlook from Negative to Stable. The long-term and short-term ratings remain unchanged.

GROUP RESULTS


19

CONTENTS Page

Cash Profit 20
Net Interest Income - continuing operations 21
Other Operating Income - continuing operations 23
Operating Expenses - continuing operations 26
Investment Spend - continuing operations 28
Software Capitalisation - continuing operations 28
Credit Risk - continuing operations 29
Income Tax Expense - continuing operations 34
Impact of Foreign Currency Translation - continuing operations 35
Earnings Related Hedges - continuing operations 37
Earnings Per Share - continuing operations 37
Dividends - continuing operations 38
Economic Profit - continuing operations 38
Condensed Balance Sheet - including discontinued operations 39
Liquidity Risk - including discontinued operations 40
Funding - including discontinued operations 41
Capital Management - including discontinued operations 42
Leverage Ratio - including discontinued operations 44
Capital Management - Other Developments 45

GROUP RESULTS


20
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 131 to 132 for further details). The adjustments made in arriving at cash profit are included in statutory
profit which is subject to review within the context of the external auditor’s review of the Condensed Consolidated Financial Statements. Cash profit is not
subject to review 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 from continuing operations unless otherwise stated. For information on
discontinued operations please refer to Note 13 of the Condensed Consolidated Financial Statements.



Half Year

Movement


Mar 21
$M
Sep 20
$M
Mar 20
$M
Mar 21
v. Sep 20
Mar 21
v. Mar 20
Statutory profit attributable to shareholders of the Company from
continuing operations

2,951 2,040 1,635 45% 80%


Adjustments between statutory profit and cash profit
1

Economic hedges

51 461 (340) -89% large
Revenue and expense hedges

(12) (156) 120 -92% large
Structured credit intermediation trades
- - (2) n/a -100%
Total adjustments between statutory profit and cash profit from
continuing operations

39 305 (222) -87% large
Cash profit from continuing operations 2,990 2,345 1,413 28% large
1.
Refer to pages 71 to 73 for analysis of the adjustments between statutory profit and cash profit.

Group performance - cash profit

Half Year

Movement


Mar 21
$M
Sep 20
$M
Mar 20
$M

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Net interest income 6,986 6,827 7,222 2% -3%
Other operating income
1,437 2,346 1,357 -39% 6%
Operating income
8,423 9,173 8,579 -8% -2%
Operating expenses (4,482) (4,778) (4,605) -6% -3%
Profit before credit impairment and income tax
3,941 4,395 3,974 -10% -1%
Credit impairment (charge)/release 491 (1,064) (1,674) large large
Profit before income tax
4,432 3,331 2,300 33% 93%
Income tax expense (1,442) (986) (886) 46% 63%
Non-controlling interests
- - (1) n/a -100%
Cash profit from continuing operations
2,990 2,345 1,413 28% large

Half Year Movement
Cash Profit/(Loss) by Division
Mar 21
$M
Sep 20
$M
Mar 20
$M
Mar 21
v. Sep 20
Mar 21
v. Mar 20
Australia Retail and Commercial

1,782 1,123 1,214

59% 47%
Institutional
948 1,244 610 -24% 55%
New Zealand
771 450 567 71% 36%
Pacific
7 (82) 20 large -65%
TSO and Group Centre
(518) (390) (998) 33% -48%
Cash profit from continuing operations
2,990 2,345 1,413 28% large

GROUP RESULTS


21
Net Interest Income - continuing operations


Half Year

Movement
Group

Mar 21
$M
Sep 20
$M
Mar 20
$M

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Cash net interest income
1
6,986 6,827 7,222 2% -3%
Average interest earning assets
857,524 869,110 856,652 -1% 0%
Average deposits and other borrowings
696,066 690,104 668,514 1% 4%
Net interest margin (%) - cash
1.63 1.57 1.69 6 bps -6 bps
Group (excluding Markets business unit)

Cash net interest income
1
6,584 6,457 6,822 2% -3%
Average interest earning assets
580,971 580,532 576,494 0% 1%
Average deposits and other borrowings
532,132 504,392 477,033 5% 12%
Net interest margin (%) - cash
2.27 2.22 2.37 5 bps -10 bps



Half Year

Movement
Cash profit net interest margin by major division
1


Mar 21
$M
Sep 20
$M
Mar 20
$M

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Australia Retail and Commercial

Net interest margin (%) - cash

2.56 2.53 2.65

3 bps -9 bps
Average interest earning assets

311,211 305,924 305,981

2% 2%
Average deposits and other borrowings

240,094 222,191 210,214

8% 14%


Institutional

Net interest margin (%) - cash

0.77 0.73 0.78

4 bps -1 bps
Average interest earning assets

397,339 424,614 415,490

-6% -4%
Average deposits and other borrowings

292,475 321,745 305,506

-9% -4%


New Zealand

Net interest margin (%) - cash

2.32 2.20 2.31

12 bps 1 bps
Average interest earning assets

120,580 120,104 121,955

0% -1%
Average deposits and other borrowings
95,864 92,756 90,329 3% 6%
1.
Includes large/notable items of -$56 million for the March 2021 half (Sep 20 half: -$25 million; Mar 20 half: $53 million). Refer to pages 13 to 17 for further details on large/notable items.
Also includes the major bank levy of -$189 million for the March 2021 half (Sep 20 half: -$210 million; Mar 20 half: -$196 million).

Group net interest margin - March 2021 Half Year v March 2020 Half Year

1.
Markets Balance Sheet activities includes the impact of discretionary liquid assets and other Balance Sheet activities.

 March 2021 v March 2020
Net interest margin (-6 bps)
 Wholesale funding and deposit pricing (+2 bps): driven by favourable funding costs, partially offset by deposit margin compression.
 Asset pricing (0 bps): higher Institutional lending margins were offset by competition in home lending in the Australia Retail and Commercial
division.
 Asset and funding mix (+2 bps): driven by favourable deposit mix with growth in at-call deposits, as well as customer deposits replacing
wholesale funding. This was partially offset by unfavourable product mix from the impacts of customers switching from variable to fixed home
loans, and lower unsecured lending in the Australia Retail and Commercial, and New Zealand divisions.
 Liquidity (-6 bps): driven by growth in liquid assets.
 Impact of rates net of repricing (-5 bps): driven by the impact of central bank rate cuts on earnings on capital and replicated deposits, net of
repricing.
 Markets Balance Sheet activities (+4 bps): driven by lower Markets average interest earning assets as a result of lower reverse repurchase
agreements and foreign currency translation movements.
 Large/notable (-3 bps): driven by lower net interest income from divested UDC business and higher customer remediation.

GROUP RESULTS


22
Average interest earning assets (+$0.9 billion or flat)
 Average net loans and advances (-$18.2 billion or -3%): driven by decrease in Institutional lending and the impact of foreign currency translation
movements, partially offset by home lending growth in the Australia Retail and Commercial, and New Zealand divisions.
 Average trading and investment securities (+$19.2 billion or +15%): driven by an increase in liquid assets in Markets, partially offset by the
impact of foreign currency translation movements.
 Average cash and other liquid assets (flat): higher central bank balances were offset by lower reverse repurchase agreements and the impact of
foreign currency translation movements.
Average deposits and other borrowings (+$27.6 billion or +4%)
 Average deposits and other borrowings (+$27.6 billion or +4%): driven by growth in deposits across all divisions, partially offset by the impact of
foreign currency translation movements.

Group net interest margin - March 2021 Half Year v September 2020 Half Year

1.
Markets Balance Sheet activities includes the impact of discretionary liquid assets and other Balance Sheet activities.
 March 2021 v September 2020
Net interest margin (+6 bps)
 Wholesale funding and deposit pricing (+4 bps): driven by deposit optimisation across all divisions and favourable wholesale funding costs.
 Asset pricing (+2 bps): driven by higher Institutional lending margins partially offset by competition in home lending in the Australia Retail and
Commercial division.
 Asset and funding mix (+3 bps): driven by favourable deposit mix with growth in at-call deposits and favourable divisional lending mix from
stronger growth in the Australia Retail and Commercial, and New Zealand divisions relative to the Institutional division. This was partially offset by
unfavourable product mix from the impacts of customers switching from variable to fixed home loans, and lower unsecured lending in the Australia
Retail and Commercial, and New Zealand divisions.
 Liquidity (-3 bps): driven by growth in liquid assets.
 Impact of rates net of repricing (-3 bps): driven by the impact of central bank rate cuts on earnings on capital and replicated deposits, net of
repricing.
 Markets Balance Sheet activities (+4 bps): driven by lower Markets average interest earning assets as a result of lower reverse repurchase
agreements and the impact of foreign currency translation movements.
 Large/notable items (-1 bps): driven by lower net interest income from divested UDC business, partially offset by lower customer remediation.
Average interest earning assets (-$11.6 billion or -1%)
 Average net loans and advances (-$20.9 billion or -3%): driven by a decrease in Institutional lending and the impact of foreign currency
translation movements, partially offset by home lending growth in the Australia Retail and Commercial, and New Zealand divisions.
 Average trading and investment securities (+$12.4 billion or +9%): driven by an increase in liquid assets in Markets, partially offset by the impact
of foreign currency translation movements.
 Average cash and other liquid assets (-$3.0 billion or -2%): driven by decreases in settlement balances and reverse repurchase agreements as
well as the impact of foreign currency translation movements, partially offset by higher central bank balances.
Average deposits and other borrowings (+$6.0 billion or +1%)
 Average deposits and other borrowings (+$6.0 billion or +1%): driven by growth in the Australia Retail and Commercial, and New Zealand
divisions, and increases in commercial paper and certificates of deposit, partially offset by a decrease in the Institutional division and the impact
of foreign currency translation movements.

GROUP RESULTS


23
Other Operating Income - continuing operations



Half Year

Movement


Mar 21
$M
Sep 20
$M
Mar 20
$M

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Net fee and commission income
1


1,011 1,080 1,135 -6% -11%
Markets other operating income

638 1,120 764 -43% -16%
Share of associates' profit/(loss)

(242) 20 135 large large
Other
1,2


30 126 (677) -76% large
Total cash other operating income from continuing operations
1,437 2,346 1,357 -39% 6%

Half Year Movement
Other operating income by division
Mar 21
$M
Sep 20
$M
Mar 20
$M
Mar 21
v. Sep 20
Mar 21
v. Mar 20
Australia Retail and Commercial

302 566 595 -47% -49%
Institutional
1,014 1,482 1,167 -32% -13%
New Zealand
238 226 247 5% -4%
Pacific
33 34 50 -3% -34%
TSO and Group Centre
(150) 38 (702) large -79%
Total cash other operating income from continuing operations
1,437 2,346 1,357 -39% 6%

Markets income

Half Year Movement

Mar 21
$M
Sep 20
$M
Mar 20
$M
Mar 21
v. Sep 20
Mar 21
v. Mar 20
Net interest income 402 370 400 9% 1%
Other operating income
638 1,120 764 -43% -16%
Total cash Markets income from continuing operations
1,040 1,490 1,164 -30% -11%
 
Other operating income (excluding large/notable items)
Other operating income included a number of items collectively referred to as large/notable items of -$603 million for the March 2021 half (Sep 20 half:
-$137 million; Mar 20 half: -$850 million). While these items form part of total cash other operating income from continuing operations, they have been
excluded from the tables below given their nature and significance. Refer to items on pages 13 to 17 for further details on large/notable items.

Other operating income (excluding large/notable items)

Half Year

Movement


Mar 21
$M
Sep 20
$M
Mar 20
$M

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Net fee and commission income
1


1,051 1,086 1,163 -3% -10%
Markets other operating income

610 1,138 764 -46% -20%
Share of associates' profit/(loss)

105 88 135 19% -22%
Other
1,2


274 171 145 60% 89%
Total cash other operating income from continuing operations
2,040 2,483 2,207 -18% -8%

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

Mar 21
$M
Sep 20
$M
Mar 20
$M
Mar 21
v. Sep 20
Mar 21
v. Mar 20
Australia Retail and Commercial

596 582 625 2% -5%
Institutional
989 1,498 1,164 -34% -15%
New Zealand
225 225 254 0% -11%
Pacific
33 34 50 -3% -34%
TSO and Group Centre
197 144 114 37% 73%
Total cash other operating income from continuing operations
2,040 2,483 2,207 -18% -8%
1.
Excluding the Markets business unit.
2.
Includes foreign exchange earnings and net income from insurance business.

GROUP RESULTS


24
Other operating income - March 2021 Half Year v March 2020 Half Year


 March 2021 v March 2020
Other operating income increased by $80 million (+6%). Excluding large/notable items, other operating income decreased $167 million (-8%).
Net fee and commission income (-$124 million or -11%)
 $49 million decrease in the Institutional division driven by lower trade-related fees and loan syndication fees.
 $39 million decrease in the Australia Retail and Commercial division driven by lower credit card and international transaction volumes due to
COVID-19 impacts.
 $23 million decrease in the New Zealand division driven by the reduction or removal of fees and lower volume related fee income due to COVID-
19 impacts.
 $12 million decrease driven by higher customer remediation.
Markets income (-$124 million or -11%)
Markets income decreased $124 million (-11%) driven by $126 million (-16%) decrease in Other operating income, partially offset by $2 million (+1%)
increase in Net interest income. This was primarily attributable to the following business activities:
 $130 million decrease in Foreign Exchange income driven by elevated income in the March 2020 half as corporates and financial institutions
sought foreign exchange solutions at the onset of the pandemic, and currency volatility presented favourable trading conditions, partially offset by
lower customer remediation.
 $162 million decrease in Rates income driven by reduced demand for hedging solutions.
 $29 million decrease in Commodities income as the March 2020 half income was elevated from oil price volatility while the March 2021 half had
seen reduced demand for hedging solutions and less favourable trading conditions.
 $164 million increase in Balance Sheet income from increasing value of high quality liquid assets.
 $36 million increase in Credit and Capital Markets income driven by more favourable Credit Trading conditions and higher Sales revenues from
new bond issuance activity by customers.
Share of associates’ profit/(loss) (-$377 million)
 $212 million decrease driven by the Group’s share of AmBank 1MDB settlement in the March 2021 half.
 $135 million decrease driven by the Group’s share of AmBank goodwill impairment in the March 2021 half.
 $30 million decrease in profits from associates from AmBank ($21 million) and PT Panin ($9 million).
Other (+$707 million)
 $815 million increase driven by the impairment of PT Panin ($220 million) and AmBank ($595 million) in the March 2020 half.
 $110 million increase in the TSO and Group Centre division primarily due to realised gains from rebalancing the liquidity portfolio in Treasury
($31 million), and higher realised gains on economic hedges against foreign currency denominated revenue streams ($62 million) which offset
net unfavourable foreign currency translations elsewhere in the Group.
 $27 million increase in the Institutional division primarily driven by widening credit spread impacts on loans measured at fair value in the March
2020 half.
 $238 million decrease driven by the loss on reclassification of ANZ Share Investing to held for sale ($251 million) in the Australia Retail and
Commercial division, partially offset by gain from the sale of a legacy insurance portfolio to Tower ($13 million) in the New Zealand division.

GROUP RESULTS


25
 March 2021 v September 2020
Other operating income decreased by $909 million or (-39%). Excluding large/notable items, other operating income decreased $443 million (-18%).
Net fee and commission income (-$69 million or -6%)
 $33 million decrease driven by higher customer remediation.
 $26 million decrease in the Australia Retail and Commercial division driven by seasonality of unsecured portfolio rebates and incentives, partially
offset by increased customer activity.
 $12 million decrease in the Institutional division driven by lower trade-related fees and loan syndication fees.
Markets income (-$450 million or -30%)
Markets income decreased $450 million (-30%) driven by $482 million (-43%) decrease in Other operating income, partially offset by $32 million
(+9%) increase in Net interest income. This was primarily attributable to the following business activities:
 $210 million decrease in Rates income driven by lower customer hedging demands and excess market liquidity.
 $109 million decrease in Credit and Capital Markets income from the normalisation of trading and issuance levels from elevated conditions in the
September 2020 half.
 $110 million decrease in Derivative valuation adjustments driven by a non-repeat of credit valuation adjustment gains in the September 2020 half.
 $66 million decrease in Balance Sheet income driven by gains recognised in the September 2020 half from yield curve movements.
 $54 million increase in Foreign Exchange income primarily driven by lower customer remediation.
Share of associates’ profit/(loss) (-$262 million)
 $212 million decrease driven by the Group’s share of AmBank 1MDB settlement in the March 2021 half.
 $135 million decrease driven by the Group’s share of AmBank goodwill impairment in the March 2021 half.
 $68 million increase driven by the PT Panin AASB 9 adjustment in the September 2020 half.
 $16 million increase in profits from associates relating to PT Panin.
Other (-$96 million or -76%)
 $238 million decrease driven by loss on reclassification of ANZ Share Investing to held for sale ($251 million) in the Australia Retail and
Commercial division, partially offset by gain from the sale of a legacy insurance portfolio to Tower ($13 million) in the New Zealand division.
 $38 million increase driven by a loss on sale of UDC in the September 2020 half.
 $35 million increase in the TSO and Group Centre division primarily due to realised gains from rebalancing the liquidity portfolio in Treasury ($31
million), and higher realised gains on economic hedges against foreign currency denominated revenue streams ($23 million) which offset net
unfavourable foreign currency translations elsewhere in the Group, partially offset by a $26 million decrease driven by dividend income from Bank
of Tianjin in the September 2020 half.
 $40 million increase in the Australia Retail and Commercial division due to the gain on disposal of the offsite ATM network, reduction in insurance
claims due to lower arrears and higher transaction rebates in the March 2021 half.

GROUP RESULTS


26
Operating Expenses - continuing operations


Half Year Movement

Mar 21
$M
Sep 20
$M
Mar 20
$M
Mar 21
v. Sep 20
Mar 21
v. Mar 20
Personnel 2,449 2,413 2,465 1% -1%
Premises
350 384 405 -9% -14%
Technology
785 985 839 -20% -6%
Restructuring
105 56 105 88% 0%
Other
793 940 791 -16% 0%
Total cash operating expenses from continuing operations
4,482 4,778 4,605 -6% -3%
Full time equivalent staff (FTE) from continuing operations 37,844 37,506 37,834 1% 0%
Average full time equivalent staff (FTE) from continuing operations 37,594 37,695 37,759 0% 0%



Half Year

Movement
Operating expenses by division

Mar 21
$M
Sep 20
$M
Mar 20
$M

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Australia Retail and Commercial

2,000 2,026 2,065

-1% -3%
Institutional

1,274 1,268 1,290

0% -1%
New Zealand

623 745 690

-16% -10%
Pacific

71 129 76

-45% -7%
TSO and Group Centre

514 610 484

-16% 6%
Total cash operating expenses from continuing operations
4,482 4,778 4,605 -6% -3%



Half Year

Movement
FTE by division

Mar 21 Sep 20 Mar 20

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Australia Retail and Commercial

14,118 14,078 14,061

0% 0%
Institutional

5,215 5,291 5,350

-1% -3%
New Zealand
1


6,691 6,679 7,009

0% -5%
Pacific

1,101 1,113 1,108

-1% -1%
TSO and Group Centre
1


10,719 10,345 10,306

4% 4%
Total FTE from continuing operations
37,844 37,506 37,834 1% 0%
Average FTE from continuing operations 37,594 37,695 37,759 0% 0%
1.
FTE has been restated to reflect the transfer of New Zealand Technology operations from the TSO and Group Centre division to the New Zealand division (Sep 20: 918; Mar 20: 906).


Operating expenses (excluding large/notable items)
Operating expenses included a number of items collectively referred to as large/notable items of $266 million for the March 2021 half (Sep 20 half: $490
million; Mar 20 half: $244 million). While these items form part of total cash operating expenses from continuing operations, they have been excluded
from the tables below given their nature and significance. Refer to pages 13 to 17 for further details on large/notable items.

Expenses (excluding large/notable items)

Half Year Movement


Mar 21
$M
Sep 20
$M
Mar 20
$M
Mar 21
v. Sep 20
Mar 21
v. Mar 20

Personnel 2,396 2,334 2,401 3% 0%

Premises 351 383 404 -8% -13%

Technology 780 773 787 1% -1%

Restructuring - - - n/a n/a

Other 689 798 769 -14% -10%

Total cash operating expenses from continuing operations 4,216 4,288 4,361 -2% -3%


Expenses by division (excluding large/notable items)

Half Year

Movement


Mar 21
$M
Sep 20
$M
Mar 20
$M

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Australia Retail and Commercial

1,869 1,892 1,904

-1% -2%
Institutional

1,188 1,207 1,278

-2% -7%
New Zealand

613 622 653

-1% -6%
Pacific

70 73 74

-4% -5%
TSO and Group Centre

476 494 452

-4% 5%
Total cash operating expenses from continuing operations
4,216 4,288 4,361 -2% -3%

GROUP RESULTS


27
Operating expenses - March 2021 Half Year v March 2020 Half Year


 March 2021 v March 2020
Operating expenses decreased by $123 million (-3%). Excluding large/notable items, operating expenses decreased $145 million (-3%).
 Personnel expenses decreased $16 million (-1%) resulting from investment in digital capabilities and process automation which contributed to
lower average FTE in the current period, and the impact of favourable foreign currency translation movements. This was partially offset by wage
inflation and higher employee leave expenses from granting all employees ‘thank-you’ leave to recognise their support during COVID-19.
 Premises expenses decreased $55 million (-14%) driven by ongoing optimisation of our property footprint.
 Technology expenses decreased $54 million (-6%) resulting from lease-related items in the March 2020 half.
 Restructuring expenses were flat, with lower business and distribution channel changes in the Australia Retail and Commercial division, offset by
operational changes in the TSO and Group Centre division in the March 2021 half.
 Other expenses increased $2 million (flat) as a litigation settlement ($69 million), higher customer remediation ($17 million) offset lower
marketing and travel expenses.

 March 2021 v September 2020
Operating expenses decreased by $296 million (-6%). Excluding large/notable items, operating expenses decreased $72 million (-2%).
 Personnel expenses increased $36 million (+1%) driven by higher employee leave expenses, partially from granting all employees ‘thank-you’
leave to recognise their support during COVID-19, wage inflation and additional resourcing needed to provide COVID-19 hardship support. This
was partially offset by investment in digital capabilities and process automation which contributed to lower average FTE in the current period,
favourable foreign currency translation movements and lower customer remediation costs ($16 million).
 Premises expenses decreased $34 million (-9%) driven by ongoing optimisation of our property footprint.
 Technology expenses decreased $200 million (-20%) largely as a result of accelerated amortisation of $197 million due to a change in
application of the software capitalisation policy in the September 2020 half.
 Restructuring expenses increased $49 million (+88%) relating to business and property changes in the Australia Retail and Commercial division,
and operational changes in the TSO and Group Centre division.
 Other expenses decreased $147 million (-16%) driven by a goodwill write-off in the Pacific and New Zealand divisions in the September 2020
half ($77 million), lower customer remediation ($22 million) and lower marketing expenses and lower BAU expenses. This was partially offset by
a litigation settlement recognised in the March 2021 half ($69 million).

GROUP RESULTS


28
Investment Spend - continuing operations

Half Year

Movement


Mar 21
$M
Sep 20
$M
Mar 20
$M

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Investment expensed 609 608 491 0% 24%
Investment capitalised
160 224 198 -29% -19%
Total investment spend from continuing operations
769 832 689 -8% 12%



Investment spend by division Half Year

Movement

Mar 21
$M
Sep 20
$M
Mar 20
$M

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Australia Retail and Commercial 253 269 217 -6% 17%
Institutional
83 86 78 -3% 6%
New Zealand
98 132 94 -26% 4%
Pacific
- - - n/a n/a
TSO and Group Centre
335 345 300 -3% 12%
Total investment spend from continuing operations
769 832 689 -8% 12%


Software Capitalisation - continuing operations
As at 31 March 2021, the Group’s intangible assets included $961 million of costs incurred to acquire and develop software. Details are presented in the
table below:

Half Year

Movement


Mar 21
$M
Sep 20
$M
Mar 20
$M

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Balance at start of period 1,039 1,263 1,323 -18% -21%
Software capitalised during the period
156 194 181 -20% -14%
Amortisation during the period

- Current period amortisation
(233) (219) (241) 6% -3%
- Accelerated amortisation
1
- (197) - -100% n/a
Software impaired/written-off
(1) - (2) n/a -50%
Foreign currency translation movements
- (2) 2 -100% -100%
Total capitalised software from continuing operations
961 1,039 1,263 -8% -24%

Capitalised software by division As at

Movement

Mar 21
$M
Sep 20
$M
Mar 20
$M

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Australia Retail and Commercial 133 147 209 -10% -36%
Institutional
135 139 196 -3% -31%
New Zealand
8 16 33 -50% -76%
TSO and Group Centre
685 737 825 -7% -17%
Total capitalised software from continuing operations
961 1,039 1,263 -8% -24%
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 which was recognised in the following divisions:


Accelerated amortisation
Sep 20 half
$M
Australia Retail and Commercial 31
Institutional 38
New Zealand 11
TSO and Group Centre 117
Total 197

GROUP RESULTS


29
Credit Risk - continuing operations
The impact and duration of COVID-19 on the global economy and how governments, businesses and consumers respond remains uncertain. This
uncertainty is reflected in the Group’s assessment of expected credit losses (ECL) from its credit portfolio which are subject to a number of management
judgements and estimates. The judgements and estimates made by management were 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 previously stressed conditions. Refer to Note 1 of the Condensed
Consolidated Financial Statements for further information.
Loan Deferral and Relief Packages (Support Packages)
From March 2020 the Group 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 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.
These support packages were phased out during the March 2021 half. In the case of home loan support packages, 94% of all loans in Australia and New
Zealand where customers took advantage of a support package have reverted back to loan repayments, with the remaining 6% having been either
restructured or transferred to hardship. For business loan support packages in Australia, 90% of loans have returned to loan payments, with the
remaining 10% having been restructured or transferred to hardship. For those customers who took up loan support packages, it is considered that the
packages, as well as government support measures, may have obscured repayment delinquencies that might otherwise have occurred over the loan
deferral period and those that may still occur in the future. Thus the Group has provided a component of ECL for expected delinquencies and increases in
significant increase in credit risk (SICR).
Facilities which transitioned to interest-only or took up term extensions offered as a result of COVID-19, are now subsumed within the normal loan
population and are managed accordingly.

Credit impairment charge/(release)




Half Year Movement
Collectively assessed
Mar 21
$M
Sep 20
$M
Mar 20
$M
Mar 21
v. Sep 20
Mar 21
v. Mar 20
Australia Retail and Commercial (515) 526 525 large large
Institutional
(110) 4 369 large large
New Zealand
(53) 104 144 large large
Pacific
- 35 10 -100% -100%
Total collectively assessed (678) 669 1,048 large large

Individually assessed

Australia Retail and Commercial 134 278 318 -52% -58%
Institutional
55 49 272 12% -80%
New Zealand
(5) 62 35 large large
Pacific
3 6 1 -50% large
Total individually assessed 187 395 626 -53% -70%

Total credit impairment charge/(release)

Australia Retail and Commercial (381) 804 843 large large
Institutional
(55) 53 641 large large
New Zealand
(58) 166 179 large large
Pacific
3 41 11 -93% -73%
Total credit impairment charge/(release) (491) 1,064 1,674 large large

GROUP RESULTS


30
Credit impairment charge/(release), cont'd


Collectively assessed

Individually assessed



Stage 1 Stage 2 Stage 3 Total
Stage 3 -
New and
increased
Stage 3 -
Recoveries
and write-
backs Total Total
March 2021 Half Year $M $M $M $M $M $M $M $M
Australia Retail and Commercial
(136) (357) (22) (515) 326 (192) 134 (381)
Institutional
(89) (8) (13) (110) 88 (33) 55 (55)
New Zealand
(6) (30) (17) (53) 34 (39) (5) (58)
Pacific
(2) (1) 3 - 7 (4) 3 3
Total
(233) (396) (49) (678) 455 (268) 187 (491)


September 2020 Half Year
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
Total 101 549 19 669 675 (280) 395 1,064


March 2020 Half Year
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
Total 354 661 33 1,048 900 (274) 626 1,674
Collectively assessed credit impairment (charge)/release
 March 2021 v March 2020
The collectively assessed credit impairment charge decreased $1,726 million driven by decreases across the Australia Retail and Commercial
(-$1,040 million), Institutional (-$479 million) and New Zealand (-$197 million) divisions. Collectively assessed credit impairment provision increased
substantially in the March 2020 half driven by the forward-looking impacts of the COVID-19 pandemic. Improvement in the economic outlook together
with a reduction in volumes, and improvements in portfolio mix and risk resulted in collectively assessed credit impairment provision releases in the
March 2021 half.
 March 2021 v September 2020
The collectively assessed credit impairment charge decreased $1,347 million driven by decreases across the Australia Retail and Commercial
(-$1,041 million), Institutional (-$114 million) and New Zealand (-$157 million) divisions. Collectively assessed credit impairment provision increased
substantially in the September 2020 half driven by the forward-looking impacts of the COVID-19 pandemic. Improvement in the economic outlook
together with a reduction in volumes, and improvements in portfolio mix and risk resulted in collectively assessed credit impairment provision
releases in the March 2021 half.
Individually assessed credit impairment (charge)/release
 March 2021 v March 2020
The individually assessed credit impairment charge decreased by $439 million (-70%) driven by decreases across the Institutional (-$217 million),
Australia Retail and Commercial (-$184 million), and New Zealand (-$40 million) divisions. The individually assessed credit impairment charges
remained subdued due to the impact of COVID-19 support packages.
 March 2021 v September 2020
The individually assessed credit impairment charge decreased by $208 million (-53%) driven by decreases across the Australia Retail and
Commercial (-$144 million), and New Zealand (-$67 million) divisions. The individually assessed credit impairment charges remained subdued due to
the impact of COVID-19 support packages.

GROUP RESULTS


31
Allowance for expected credit losses
1


As at Movement
Collectively assessed
Mar 21
$M
Sep 20
$M
Mar 20
$M
Mar 21
v. Sep 20
Mar 21
v. Mar 20
Australia Retail and Commercial 2,331 2,845 2,320 -18% 0%
Institutional
1,364 1,513 1,590 -10% -14%
New Zealand
513 570 541 -10% -5%
Pacific
77 80 50 -4% 54%
Total collectively assessed 4,285 5,008 4,501 -14% -5%


Individually assessed

Australia Retail and Commercial 520 610 582 -15% -11%
Institutional
191 158 406 21% -53%
New Zealand
79 102 79 -23% 0%
Pacific
19 21 26 -10% -27%
Total individually assessed 809 891 1,093 -9% -26%


Allowance for ECL

Australia Retail and Commercial 2,851 3,455 2,902 -17% -2%
Institutional
1,555 1,671 1,996 -7% -22%
New Zealand
592 672 620 -12% -5%
Pacific
96 101 76 -5% 26%
Total allowance for ECL 5,094 5,899 5,594 -14% -9%


Collectively assessed
Individually
assessed

As at March 2021
Stage 1
$M
Stage 2
$M
Stage 3
$M
Total
$M
Stage 3
$M
Total
$M
Australia Retail and Commercial 462 1,530 339 2,331 520 2,851
Institutional
940 407 17 1,364 191 1,555
New Zealand
141 313 59 513 79 592
Pacific
18 42 17 77 19 96
Total
1,561 2,292 432 4,285 809 5,094

As at September 2020
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
Total 1,820 2,704 484 5,008 891 5,899

As at March 2020
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
Total 1,815 2,213 473 4,501 1,093 5,594
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


32
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 may not fully reflect the potential impacts associated with COVID-19.


As at
Long-run loss as a % of gross lending assets by division
Mar 21 Sep 20 Mar 20
Australia Retail and Commercial

0.24% 0.27% 0.28%
New Zealand

0.15% 0.16% 0.19%
Institutional

0.25% 0.30% 0.25%
Total Group

0.23% 0.26% 0.26%


Gross Impaired Assets




As at

Movement

Mar 21
$M
Sep 20
$M
Mar 20
$M

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Impaired loans
1
1,941 2,001 2,209 -3% -12%
Restructured items
2
300 254 226 18% 33%
Non-performing commitments and contingencies
1
232 204 164 14% 41%
Gross impaired assets
2,473 2,459 2,599 1% -5%
Individually assessed provisions
Impaired loans
(778) (851) (1,055) -9% -26%
Non-performing commitments and contingencies
(31) (40) (38) -23% -18%
Net impaired assets
1,664 1,568 1,506 6% 10%

Gross impaired assets by division

Australia Retail and Commercial 1,228 1,634 1,544 -25% -20%
Institutional
892 434 742 large 20%
New Zealand
310 347 264 -11% 17%
Pacific
43 44 49 -2% -12%
Gross impaired assets
2,473 2,459 2,599 1% -5%

Gross impaired assets by size of exposure
Less than $10 million 1,474 1,713 1,680 -14% -12%
$10 million to $100 million
267 339 349 -21% -23%
Greater than $100 million
732 407 570 80% 28%
Gross impaired assets
2,473 2,459 2,599 1% -5%
1.
Impaired loans and non-performing commitments and contingencies do not include exposures that are collectively assessed for Stage 3 ECL, which comprise unsecured retail exposures of
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.
 March 2021 v March 2020
Gross impaired assets decreased $126 million (-5%) driven by a decrease in the Australia Retail and Commercial division (-$316 million), partially
offset by increases in the Institutional ($150 million) and New Zealand ($46 million) divisions. The decrease in the Australia Retail and Commercial
division was driven by the repayment of a single name restructured exposure and decreases in the retail portfolio as underlying delinquency flows
remained subdued due to COVID-19 support packages. The increases in the Institutional and New Zealand divisions were driven by impairments of
a small number of well secured single name exposures.
 March 2021 v September 2020
Gross impaired assets increased $14 million (1%) driven by an increase in the Institutional division ($458 million), partially offset by decreases in the
Australia Retail and Commercial (-$406 million), and New Zealand (-$37 million) divisions. The increase in the Institutional division was driven by
impairments on a small number of well secured single name exposures. The decrease in the Australia Retail and Commercial division was driven by
the repayment of a single name restructured exposure and decrease in the retail portfolio as underlying delinquency flows remained subdued due to
COVID-19 support packages. The decrease in the New Zealand division was driven by the underlying delinquency flows that remained subdued due
to COVID-19 support package.
The Group’s individually assessed provision coverage ratio on impaired assets was 32.7% at 31 March 2021 (Sep 20: 36.2%; Mar 20: 42.1%).

GROUP RESULTS


33
New Impaired Assets


Half Year

Movement

Mar 21
$M
Sep 20
$M
Mar 20
$M

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Impaired loans
1


798 1,081 1,407

-26% -43%
Restructured items
2


239 47 23

large large
Non-performing commitments and contingencies
1
84 91 140 -8% -40%
Total new impaired assets
1,121 1,219 1,570 -8% -29%
New impaired assets by division
Australia Retail and Commercial 421 775 870 -46% -52%
Institutional
602 197 571 large 5%
New Zealand
69 236 125 -71% -45%
Pacific
29 11 4 large large
Total new impaired assets
1,121 1,219 1,570 -8% -29%
1.
Impaired loans and non-performing commitments and contingencies do not include exposures that are collectively assessed for Stage 3 ECL, which comprise unsecured retail exposures of
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.
 March 2021 v March 2020
New impaired assets decreased $449 million (-29%) driven by the Australia Retail and Commercial (-$449 million), and New Zealand (-$56 million)
divisions due to continued COVID-19 support programs which were in place over the March 2021 half.
 March 2021 v September 2020
New impaired assets decreased by $98 million (-8%) driven by the Australia Retail and Commercial (-$354 million), and New Zealand (-$167 million)
divisions, partially offset by an increase in the Institutional division ($405 million). The decrease in the Australia Retail and Commercial, and New
Zealand divisions were due to continued COVID-19 support programs which were in place over the March 2021 half. The increase in the Institutional
division was driven by impairments of a small number of well secured single name exposures.


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



As at Movement

Mar 21
$M
Sep 20
$M
Mar 20
$M
Mar 21
v. Sep 20
Mar 21
v. Mar 20
1-29 days 5,657 5,161 9,114 10% -38%
30-59 days
1,732 1,028 2,772 68% -38%
60-89 days
691 569 1,368 21% -49%
90+ days
3,290 3,844 3,621 -14% -9%
Total
11,370 10,602 16,875 7% -33%
1.
Excludes eligible customers impacted by COVID-19 who applied for and were granted a 6 month repayment deferral packages for the duration of the deferral. Customers who were 30 days
past due or greater were not eligible for the 6 month repayment deferral packages.
 March 2021 v March 2020
Net loans and advances past due but not impaired decreased $5,505 million (-33%) driven by decreases across all segments in the Australia Retail
and Commercial, and New Zealand divisions home loan portfolio due to the customer uptake of COVID-19 support packages from March 2020.
 March 2021 v September 2020
Net loans and advances past due but not impaired increased $768 million (+7%) driven primarily by the Australia Retail and Commercial division
home loan portfolio in the 1-29 days and 30-59 days segments due to a small number of customers who have become delinquent after rolling off
COVID-19 support packages. The decrease in the 90+ days segment relates to a reduced flow of accounts entering delinquency in prior periods
driven by COVID-19 support packages.

GROUP RESULTS


34
Income Tax Expense - continuing operations



Half Year

Movement


Mar 21
$M
Sep 20
$M
Mar 20
$M

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Income tax expense on cash profit

1,442 986 886 46% 63%
Effective tax rate (cash profit)
32.5% 29.6% 38.5%
 March 2021 v March 2020
The effective tax rate decreased from 38.5% to 32.5%. The decrease of 600 bps was driven by the non-tax deductible impairment of investments in
AmBank and PT Panin in the March 2020 half (-1,065 bps), partially offset by the non-tax deductible impacts of the reclassification of ANZ Share
Investing to held for sale in the March 2021 half (+170 bps) and lower equity accounted earnings due to the AmBank 1MDB settlement and goodwill
impairment (+235 bps) and lower other equity accounted earnings (+106 bps).
 March 2021 v September 2020
The effective tax rate increased from 29.6% to 32.5%. The increase of 290 bps was driven by the non-tax deductible impacts of the reclassification of
ANZ Share Investing to held for sale in the March 2021 half (+170 bps) and lower equity accounted earnings due to the AmBank 1MDB settlement
and goodwill impairment (+235 bps), partially offset by higher other equity accounted earnings primarily from PT Panin (-54 bps).

GROUP RESULTS


35
Impact of Foreign Currency Translation - continuing operations
The following tables present the Group’s cash profit results, net loans and advances and customer deposits neutralised for the impact of foreign currency
translation movements. Comparative data has been adjusted to remove the translation impact of foreign currency movements by retranslating prior
period comparatives at current period foreign exchange rates.

March 2021 Half Year v March 2020 Half Year

Half Year Movement

Actual
FX
unadjusted
FX
impact
FX
adjusted
FX
unadjusted
FX
adjusted

Mar 21
$M
Mar 20
$M
Mar 20
$M
Mar 20
$M
Mar 21
v. Mar 20
Mar 21
v. Mar 20
Net interest income 6,986 7,222 (98) 7,124 -3% -2%
Other operating income
1,437 1,357 (2) 1,355 6% 6%
Operating income
8,423 8,579 (100) 8,479 -2% -1%
Operating expenses (4,482) (4,605) 95 (4,510) -3% -1%
Profit before credit impairment and income tax
3,941 3,974 (5) 3,969 -1% -1%
Credit impairment (charge)/release 491 (1,674) 41 (1,633) large large
Profit before income tax
4,432 2,300 36 2,336 93% 90%
Income tax expense (1,442) (886) (16) (902) 63% 60%
Non-controlling interests
- (1) - (1) -100% -100%
Cash profit from continuing operations
2,990 1,413 20 1,433 large large



Cash profit from continuing operations by division



Australia Retail and Commercial

1,782 1,214 - 1,214

47% 47%
Institutional

948 610 (4) 606

55% 56%
New Zealand

771 567 (11) 556

36% 39%
Pacific

7 20 (1) 19

-65% -63%
TSO and Group Centre
(518) (998) 36 (962) -48% -46%
Cash profit from continuing operations
2,990 1,413 20 1,433 large large



Net loans and advances by division



Australia Retail and Commercial

344,269 329,812 - 329,812

4% 4%
Institutional

147,446 199,410 (14,007) 185,403

-26% -20%
New Zealand

120,482 125,195 (7,182) 118,013

-4% 2%
Pacific

1,713 2,176 (241) 1,935

-21% -11%
TSO and Group Centre
449 16 (1) 15 large large
Net loans and advances
614,359 656,609 (21,431) 635,178 -6% -3%

Customer deposits by division



Australia Retail and Commercial

241,315 212,990 - 212,990

13% 13%
Institutional

223,666 258,517 (28,460) 230,057

-13% -3%
New Zealand

93,201 91,175 (5,231) 85,944

2% 8%
Pacific

3,394 3,845 (432) 3,413

-12% -1%
TSO and Group Centre
(53) (32) (1) (33) 66% 61%
Customer deposits
561,523 566,495 (34,124) 532,371 -1% 5%

GROUP RESULTS


36
March 2021 Half Year v September 2020 Half Year
Half Year Movement

Actual
FX
unadjusted
FX
impact
FX
adjusted
FX
unadjusted
FX
adjusted

Mar 21
$M
Sep 20
$M
Sep 20
$M
Sep 20
$M
Mar 21
v. Sep 20
Mar 21
v. Sep 20
Net interest income 6,986 6,827 (46) 6,781 2% 3%
Other operating income
1,437 2,346 3 2,349 -39% -39%
Operating income
8,423 9,173 (43) 9,130 -8% -8%
Operating expenses (4,482) (4,778) 54 (4,724) -6% -5%
Profit before credit impairment and income tax
3,941 4,395 11 4,406 -10% -11%
Credit impairment (charge)/release 491 (1,064) 2 (1,062) large large
Profit before income tax
4,432 3,331 13 3,344 33% 33%
Income tax expense (1,442) (986) (4) (990) 46% 46%
Non-controlling interests
- - - - n/a n/a
Cash profit from continuing operations
2,990 2,345 9 2,354 28% 27%



Cash profit from continuing operations by division



Australia Retail and Commercial

1,782 1,123 - 1,123

59% 59%
Institutional

948 1,244 (19) 1,225

-24% -23%
New Zealand

771 450 2 452

71% 71%
Pacific

7 (82) 5 (77)

large large
TSO and Group Centre
(518) (390) 21 (369) 33% 40%
Cash profit from continuing operations
2,990 2,345 9 2,354 28% 27%



Net loans and advances by division



Australia Retail and Commercial

344,269 339,381 - 339,381

1% 1%
Institutional

147,446 157,634 (3,348) 154,286

-6% -4%
New Zealand

120,482 116,625 (980) 115,645

3% 4%
Pacific

1,713 1,866 (71) 1,795

-8% -5%
TSO and Group Centre
449 1,587 - 1,587 -72% -72%
Net loans and advances
614,359 617,093 (4,399) 612,694 0% 0%



Customer deposits by division



Australia Retail and Commercial

241,315 234,594 - 234,594

3% 3%
Institutional

223,666 223,288 (7,871) 215,417

0% 4%
New Zealand

93,201 91,004 (765) 90,239

2% 3%
Pacific

3,394 3,534 (129) 3,405

-4% 0%
TSO and Group Centre
(53) (57) - (57) -7% -7%
Customer deposits
561,523 552,363 (8,765) 543,598 2% 3%

GROUP RESULTS


37
Earnings Related Hedges - continuing operations
Where it is considered appropriate, the Group takes out economic hedges against larger foreign exchange denominated revenue streams (primarily New
Zealand Dollar and US Dollar). New Zealand Dollar exposure relates to the New Zealand geography and USD exposures relate to Asia, Pacific, Europe &
America geography. Details of these hedges are set out below.


Half Year
NZD Economic hedges
Mar 21
$M
Sep 20
$M
Mar 20
$M
Net open NZD position (notional principal)
1
2,444 2,276 3,165
Amount taken to income (pre-tax statutory basis)
2
26 149 (156)
Amount taken to income (pre-tax cash basis)
3
18 19 (13)
USD Economic hedges
Net open USD position (notional principal)
1
463 453 662
Amount taken to income (pre-tax statutory basis)
2
26 87 (39)
Amount taken to income (pre-tax cash basis)
3
16 (8) (15)
1.
Value in AUD at contracted rate.
2.
Unrealised valuation movement plus realised revenue from matured or closed out hedges.
3.
Realised revenue from closed out hedges.
As at 31 March 2021, the following hedges were in place to partially hedge future earnings against adverse movements in exchange rates:
 NZD 2.6 billion at a forward rate of approximately NZD 1.06/AUD.
 USD 0.3 billion at a forward rate of approximately USD 0.67/AUD.
During the March 2021 half:
 NZD 1.0 billion of economic hedges matured and a realised gain of $18 million (pre-tax) was recorded in cash profit.
 USD 0.2 billion of economic hedges matured and a realised gain of $16 million (pre-tax) was recorded in cash profit.
 An unrealised gain of $18 million (pre-tax) on the outstanding NZD and USD economic hedges were recorded in the statutory Income Statement
during the half. This unrealised gain has been treated as an adjustment to statutory profit in calculating cash profit as these are hedges of future NZD
and USD revenues.


Earnings Per Share - continuing operations



Half Year

Movement

Mar 21 Sep 20 Mar 20

Mar 21
v. Sep 20
Mar 21
v. Mar 20
Cash earnings per share (cents) from continuing operations



Basic



105.3 82.8 49.9 27% large
Diluted

99.9 76.1 47.5 31% large
Cash weighted average number of ordinary shares (M)

Basic

2,838.7 2,831.2 2,830.6 0% 0%
Diluted

3,084.4 3,200.7 3,238.6 -4% -5%
Cash profit from continuing operations ($M)

2,990 2,345 1,413 28% large
Cash profit from continuing operations used in calculating diluted
cash earnings per share ($M)

3,082 2,435 1,537 27% large