ANZ 2022 Half Year Results Documents

Australia and New Zealand Banking Group Limited

ABN 11 005 357 522







Half Year
31 March 2022






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 2021 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 2022



Operating Results
1



AUD million


Statutory operating income from continuing operations

14% to 9,542





Statutory profit attributable to shareholders

20% to 3,530





Cash profit
2


4% to 3,108


Cash profit from continuing operations
2


4% to 3,113








Dividends
3


Cents

Franked

per

amount

share

per share


Proposed interim dividend
4


72

100%












Record date for determining entitlements to the proposed 2022 interim dividend 10 May 2022



Payment date for the proposed 2022 interim dividend 1 July 2022


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 2022 interim dividend. For the 2022 interim dividend, ANZ intends to provide shares under the DRP and BOP through the issue
of new shares. The 'Acquisition Price' to be used in determining the number of shares to be provided under the DRP and BOP will be calculated by
reference to the arithmetic average of the daily volume weighted average sale price of all fully paid ANZ ordinary shares sold in the ordinary course of
trading on the ASX and Chi-X during the ten trading days commencing on 13 May 2022, 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 2022 interim dividend must be received by ANZ's Share Registrar by 5.00pm
(Australian Eastern Standard Time) on 11 May 2022. Subject to receiving effective contrary instructions from the shareholder, dividends payable to
shareholders with a registered address in the United Kingdom (including the Channel Islands and the Isle of Man) or New Zealand will be converted to
Pounds Sterling or New Zealand Dollars respectively at an exchange rate calculated on 13 May 2022.








1.
Unless otherwise noted, all comparisons are to the half year ended 31 March 2021.
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 a reduction to statutory profit of $422 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 9 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 2022



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 (Results Announcement) 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 3 May 2022.

DISCLAIMER & IMPORTANT NOTICE:
The material in the Results Announcement contains general background information about the Bank’s activities current as at 3 May 2022. It is information
given in summary form and does not purport to be complete. It is not intended to be and should not be relied upon as advice to investors or potential
investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered,
with or without professional advice when deciding if an investment is appropriate.
The Results Announcement may contain forward-looking statements or opinions including statements regarding our intent, belief or current expectations
with respect to ANZ’s business operations, market conditions, results of operations and financial condition, capital adequacy, specific provisions and risk
management practices. When used in the Results Announcement, the words ‘forecast’, ‘estimate’, ‘project’, ‘intend’, ‘anticipate’, ‘believe’, ‘expect’, ‘may’,
‘probability’, ‘risk’, ‘will’, ‘seek’, ‘would’, ‘could’, ‘should’ and similar expressions, as they relate to ANZ and its management, are intended to identify
forward-looking statements or opinions. Those statements are usually predictive in character; or may be affected by inaccurate assumptions or unknown
risks and uncertainties or may differ materially from results ultimately achieved. As such, these statements should not be relied upon when making
investment decisions. These statements only speak as at the date of publication and no representation is made as to their correctness on or after this
date. Forward-looking statements constitute ‘forward-looking statements’ for the purposes of the United States Private Securities Litigation Reform Act of
1995. ANZ does not undertake any obligation to publicly release the result of any revisions to these forward-looking statements to reflect events or
circumstances after the date hereof to reflect the occurrence of unanticipated events.

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


4
This page has been left blank intentionally

DISCLOSURE SUMMARY


5

SUMMARY OF 2022 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 2022 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 2022
 Key Financial Data Summary (available on website only)
 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 11
Large/Notable Items - continuing operations 12
Full Time Equivalent Staff 17
Other Non-Financial Information 17

SUMMARY


8
Guide to Half Year Results
NON-IFRS INFORMATION
Statutory profit is prepared in accordance with the 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 12 to 16 for details of
large/notable items.
DISCONTINUED OPERATIONS
The Group completed the sale of its aligned dealer groups business to IOOF Holdings Limited (now known as Insignia Financial Limited) on 1 October
2018, its life insurance business to Zurich Financial Services Australia on 31 May 2019 and its OnePath pensions and investments business to IOOF
Holdings Limited on 31 January 2020.
The financial results of these divested businesses are treated as discontinued operations from a financial reporting perspective. The financial results after
transaction completion primarily relate to residual operational costs on separation and partial recovery of certain costs based on the respective Transition
Service Agreements.
There were no material financial impacts from the discontinued operations in the current or prior comparative periods.
DIVISIONAL PERFORMANCE - CONTINUING OPERATIONS
On 1 March 2022,
the Group announced a structural change to the existing Australia Retail and Commercial division, and the digital businesses in the
Group Centre division (formerly known as the Technology, Services & Operations (TSO) and Group Centre division). This involves the integration of the
Australian retail and digital businesses, and the separation of the Australian commercial business into a new division. The new reporting segments will be
reflected in the September 2022 half to align with the implementation of the changes from 1 April 2022. The segment disclosures in this document remain
unchanged from those reported at 30 September 2021 and are consistent with internal reporting provided to the chief operating decision maker, being the
Chief Executive Officer, during the March 2022 half.
The presentation of divisional results has been impacted by the following structural changes during the period. Prior period comparatives have been
restated:
 Australia Retail and Commercial division - re-segmentation of customers from Business Banking to Small Business Banking within the division;
 Institutional division - a number of small operations were transferred from Markets to Central Functions within the division;
 the completion of the transfer of Banking Services operations from the Group Centre division to the Institutional division. As the associated costs
were previously recharged, there is no change to the previously reported divisional cash profits, however divisional balance sheets and full-time
equivalent employees (FTEs) have been restated to reflect this change.

SUMMARY


9
Statutory Profit Results






Half Year

Movement


Mar 22
$M
Sep 21
$M
Mar 21
$M

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Net interest income

7,100 7,175 6,986

-1% 2%
Other operating income

2,442 1,878 1,381

30% 77%
Operating income

9,542 9,053 8,367

5% 14%
Operating expenses

(4,791) (4,569) (4,482)

5% 7%
Profit before credit impairment and income tax

4,751 4,484 3,885

6% 22%
Credit impairment (charge)/release

284 76 491

large -42%
Profit before income tax

5,035 4,560 4,376

10% 15%
Income tax expense and non-controlling interests

(1,500) (1,332) (1,425)

13% 5%
Profit attributable to shareholders of the Company from continuing operations

3,535 3,228 2,951

10% 20%
Profit/(Loss) from discontinued operations

(5) (9) (8)

-44% -38%
Profit attributable to shareholders of the Company

3,530 3,219 2,943

10% 20%

Earnings Per Ordinary Share (cents)

Half Year

Movement

Reference
Page
Mar 22 Sep 21 Mar 21

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Basic
93
125.7 113.4 103.7

11% 21%
Diluted 93
117.7 106.7 98.4 10% 20%



Half Year


Reference
Page
Mar 22 Sep 21 Mar 21
Ordinary Share Dividends (cents)


Interim
1
92 72 - 70
Final
1
92 - 72 -
Total 92
72 72 70
Ordinary share dividend payout ratio
2
92 57.0% 63.1% 67.7%
Profitability Ratios

Return on average ordinary shareholders' equity
3
11.3% 10.2% 9.5%
Return on average assets
0.70% 0.63% 0.56%
Net interest margin
1.58% 1.65% 1.63%
Net interest income to average credit RWAs
4.10% 4.18% 3.99%
Efficiency Ratios

Operating expenses to operating income 50.5% 50.9% 53.8%
Operating expenses to average assets
0.96% 0.90% 0.87%
Credit Impairment Charge/(Release)

Individually assessed credit impairment charge ($M) 87 69 187
Collectively assessed credit impairment charge/(release) ($M)
(371) (145) (678)
Total credit impairment charge/(release) ($M) 100
(284) (76) (491)
Individually assessed credit impairment charge as a % of average gross loans and advances
4
0.03% 0.02% 0.06%
Total credit impairment charge/(release) as a % of average gross loans and advances
4
(0.09%) (0.02%) (0.16%)
1.
Fully franked for Australian tax purposes (30% tax rate) and carry New Zealand imputation credits of NZD 9 cents for the proposed 2022 interim dividend (2021 final dividend: NZD 8 cents;
2021 interim dividend: NZD 8 cents).
2.
Dividend payout ratio for the March 2022 half is calculated using the proposed 2022 interim dividend of $2,012 million, based on the forecast number of ordinary shares on issue at the
dividend record date. Dividend payout ratios for the September 2021 half and the March 2021 half were calculated using actual dividends of $2,030 million and $1,992 million respectively.
3.
Average ordinary shareholders’ equity excludes non-controlling interests.
4.
Credit impairment charge/(release) 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 22
$M
Sep 21
$M
Mar 21
$M

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Net interest income

7,100 7,175 6,986

-1% 2%
Other operating income

1,848 1,849 1,437

0% 29%
Operating income

8,948 9,024 8,423

-1% 6%
Operating expenses

(4,791) (4,569) (4,482)

5% 7%
Profit before credit impairment and income tax

4,157 4,455 3,941

-7% 5%
Credit impairment (charge)/release

284 76 491

large -42%
Profit before income tax

4,441 4,531 4,432

-2% 0%
Income tax expense and non-controlling interests

(1,328) (1,323) (1,442)

0% -8%
Cash profit from continuing operations

3,113 3,208 2,990

-3% 4%
Cash profit/(loss) from discontinued operations

(5) (9) (8)

-44% -38%
Cash profit

3,108 3,199 2,982

-3% 4%

Earnings Per Ordinary Share (cents) Half Year

Movement

Reference
Page
Mar 22 Sep 21 Mar 21

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Basic 110.7 112.7 105.0 -2% 5%
Basic - continuing operations 37
110.8 113.0 105.3 -2% 5%
Diluted
104.0 106.1 99.6 -2% 4%


Half Year

Reference
Page
Mar 22 Sep 21 Mar 21
Ordinary Share Dividends
Ordinary share dividend payout ratio
2


64.7% 63.5% 66.8%
Ordinary share dividend payout ratio - continuing operations
2


38 64.6% 63.3% 66.6%
Profitability Ratios

Return on average ordinary shareholders' equity
3


10.0% 10.2% 9.7%
Return on average assets


0.62% 0.62% 0.57%
Net interest margin
1.58% 1.65% 1.63%
Net interest income to average credit RWAs
4.10% 4.18% 3.99%
Efficiency Ratios

Operating expenses to operating income

53.9% 51.0% 53.5%
Operating expenses to average assets
0.96% 0.90% 0.87%
Credit Impairment Charge/(Release)


Individually assessed credit impairment charge ($M)

29 87 69 187
Collectively assessed credit impairment charge/(release) ($M) 29
(371) (145) (678)
Total credit impairment charge/(release) ($M)

29 (284) (76) (491)
Individually assessed credit impairment charge as a % of average gross loans and advances
4
0.03% 0.02% 0.06%
Total credit impairment charge/(release) as a % of average gross loans and advances
4
(0.09%) (0.02%) (0.16%)
Cash Profit/(Loss) By Division - continuing operations Half Year

Movement

Mar 22
$M
Sep 21
$M
Mar 21
$M

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Australia Retail and Commercial

1,986 1,835 1,782 8% 11%
Institutional
730 939 948 -22% -23%
New Zealand
787 737 771 7% 2%
Pacific
(6) (10) 7 -40% large
Group Centre
(384) (293) (518) 31% -26%
Cash profit from continuing operations
3,113 3,208 2,990 -3% 4%
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 12 to 16 for information on large/notable items included in cash profit from continuing operations.
2.
Dividend payout ratio for the March 2022 half is calculated using the proposed 2022 interim dividend of $2,012 million, based on the forecast number of ordinary shares on issue at the
dividend record date. Dividend payout ratios for the September 2021 half and the March 2021 half were calculated using actual dividends of $2,030 million and $1,992 million respectively.
3.
Average ordinary shareholders’ equity excludes non-controlling interests.
4.
Credit impairment charge/(release) used in the ratio relates to gross loans and advances and off-balance sheet commitments - undrawn and contingent liabilities.

SUMMARY


11
Key Balance Sheet Metrics


As at Movement

Reference
Page
Mar 22 Sep 21 Mar 21
Mar 22
v. Sep 21
Mar 22
v. Mar 21
Capital Management


Common Equity Tier 1 (Level 2)

- APRA Basel 3 42
11.5% 12.3% 12.4%
- Internationally Comparable Basel 3
1
42 18.0% 18.3% 18.1%
Credit risk weighted assets ($B) 42
348.8 342.5 341.9 2% 2%
Total risk weighted assets ($B) 42
437.9 416.1 408.2 5% 7%
APRA Leverage Ratio 44
5.2% 5.5% 5.5%
Balance Sheet: Key Items


Gross loans and advances ($B) 655.0 633.8 618.6 3% 6%
Net loans and advances ($B)
651.4 629.7 614.4 3% 6%
Total assets ($B)
1,017.4 978.9 1,018.3 4% 0%
Customer deposits ($B)
611.1 593.6 561.5 3% 9%
Total equity ($B)
61.8 63.7 62.6 -3% -1%

As at Movement
Liquidity Risk
Reference
Page
Mar 22 Sep 21 Mar 21
Mar 22
v. Sep 21
Mar 22
v. Mar 21
Liquidity Coverage Ratio
2
40 132% 136% 138% -4% -6%
Net Stable Funding Ratio 41
123% 124% 121% -1% 2%

As at Movement

Reference
Page
Mar 22 Sep 21 Mar 21
Mar 22
v. Sep 21
Mar 22
v. Mar 21
Impaired Assets


Gross impaired assets ($M) 32
1,709 1,965 2,473 -13% -31%
Gross impaired assets as a % of gross loans and advances
0.26% 0.31% 0.40%
Net impaired assets ($M) 32
1,073 1,278 1,664 -16% -36%
Net impaired assets as a % of shareholders' equity
1.7% 2.0% 2.7%
Individually assessed provision ($M) 31 636 687 809 -7% -21%
Individually assessed provision as a % of gross impaired assets
37.2% 35.0% 32.7%
Collectively assessed provision ($M) 31
3,757 4,195 4,285 -10% -12%
Collectively assessed provision as a % of credit risk weighted assets
1.08% 1.22% 1.25%
Net Tangible Assets
Net tangible assets attributable to ordinary shareholders ($B)
3
57.7 59.5 58.5 -3% -1%
Net tangible assets per ordinary share ($)
20.64 21.09 20.57 -2% 0%


As at Movement
Net Loans and Advances by division
Mar 22
$B
Sep 21
$B
Mar 21
$B
Mar 22
v. Sep 21
Mar 22
v. Mar 21
Australia Retail and Commercial 342.2 341.2 344.3 0% -1%
Institutional
4
175.0 158.2 147.5 11% 19%
New Zealand
5
129.6 128.5 120.5 1% 8%
Pacific
1.7 1.8 1.7 -6% 0%
Group Centre
2.9 - 0.4 n/a large
Net loans and advances by division
651.4 629.7 614.4 3% 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.
4.
Excluding the impact of foreign currency translation, the Institutional division Net loans and advances increased 13% compared to September 2021 and 18% compared to March 2021.
5.
Excluding the impact of foreign currency translation, the New Zealand division Net loans and advances increased 4% compared to September 2021 and 6% compared to March 2021.

SUMMARY


12
Large/Notable Items - continuing operations
Large/notable items included in cash profit from continuing operations are described below.
Business Divestments/Closures
The following divestments and business closures form part of continuing operations as they did not qualify as discontinued operations under accounting
standards. The financial impacts from these divestments/closures are summarised below including the business results for those divestments that have
completed during the half.


Gain/(Loss) from divestments/closures Completed divested business results
Half Year Half Year
Cash Profit Impact
Mar 22
$M
Sep 21
$M
Mar 21
$M
Mar 22
$M
Sep 21
$M
Mar 21
$M
ANZ Worldline partnership 307 - - 60 46 77
ANZ Share Investing
- - (251) - - -
Financial planning and advice business
(69) - - - - -
Legal entity rationalisation
(65) - - - - -
Other divestments
(5) - 13 - - -
Profit/(Loss) before income tax
168 - (238) 60 46 77
Income tax benefit/(expense) and non-controlling interests 37 - - (18) (14) (23)
Cash profit/(loss) from continuing operations
205 - (238) 42 32 54
 ANZ Worldline partnership
The Group announced in December 2020 that it had entered into a partnership with the European-based payments company Worldline AS
(Worldline). The partnership arrangement involves ANZ and Worldline forming a newly created merchant acquiring group, with ANZ and Worldline
holding 49% and 51% interests respectively. The transaction completed in the March 2022 half and the Group recognised a $307 million gain in
Other operating income and an income tax benefit of $28 million in the Australia Retail and Commercial division. The divested business results were
recognised across the Australia Retail and Commercial and Institutional divisions.
 ANZ Share Investing
During the March 2021 half, the Group recognised a $251 million loss in Other operating income on reclassifying its ANZ Share Investing business
as held for sale in the Australia Retail and Commercial division. This transaction completed during the September 2021 half with no further gain or
loss recognised.
 Financial planning and advice business
During the March 2022 half, the Group agreed to sell its financial planning and advice business servicing the affluent customer segment to Zurich
Financial Services Australia Ltd. As a result of the transaction, the Group recognised a $62 million loss largely comprising a goodwill write-off of $40
million in Other operating income, restructuring expenses of $7 million, and an income tax benefit of $9 million in the Australia Retail and Commercial
division.
 Legal entity rationalisation
During the March 2022 half, in order to simplify the Group’s legal entity structure, the business previously conducted by Minerva Holdings Limited
(Minerva) in the United Kingdom and ANZ Asia Limited (ANZ Asia) in Hong Kong were dissolved. As a result, the associated foreign currency
translation reserves were recycled from Other comprehensive income to profit or loss, resulting in a $65 million loss recognised in Other operating
income in the Group Centre division.
 Other divestments
During the March 2022 half, the Group announced the planned closure of the ANZ American Territories (ANZ American Samoa and ANZ Guam). A
cost of $18 million, comprising restructuring expenses of $12 million and a credit impairment charge of $6 million, was recognised in the Pacific
division. In addition, the Group released excess provisions originally raised as part of the UDC Finance and Paymark Limited divestments completed
in prior years and recognised a $13 million gain in Other operating income in the Group Centre division.
During the March 2021 half, the Group disposed of its rights and obligations relating to a legacy portfolio of insurance underwritten by Tower Limited
(Tower) to Tower and recognised a $13 million gain in Other operating income in the New Zealand division.

SUMMARY


13
Customer remediation
Customer remediation includes provisions for expected refunds to customers, remediation project costs and related customer and regulatory claims,
penalties and litigation costs and outcomes.


Half Year

Mar 22 Sep 21Mar 21
Cash Profit Impact
$M $M$M
Operating income
(25) (68)(74)
Operating expenses
(148) (93)(92)
Profit/(Loss) before income tax
(173) (161)(166)
Income tax benefit/(expense) and non-controlling interests 50 4858
Cash profit/(loss) from continuing operations
(123) (113)(108)

Litigation settlements
During the March 2022 half, the Group entered into an in-principle agreement to settle a United States class action related to the trading of products
based on certain benchmark reference rates and recognised expenses of $10 million after tax in relation to the proposed settlement and related costs.
The settlement is without admission of liability and remains subject to negotiation and execution of complete settlement terms as well as court approval.
During the March 2021 half, the Group reached an agreement to settle a separate United States class action related to other benchmark based products
and activities and recognised expenses of $48 million after tax. The settlement is without admission of liability and remains subject to court approval.
Restructuring
In addition to the restructuring expenses associated with business divestments/closures, the Group recognised restructuring expenses of $31 million after
tax in the March 2022 half year (Sep 21 half: $16 million; Mar 21 half: $76 million) relating to operational changes across all divisions.
Withholding tax
During the March 2022 half, a dividend payment of $714 million (net of withholding tax) was made by ANZ Papua New Guinea (ANZ PNG) to Australia
and New Zealand Banking Group Limited (ANZBGL) in order to rebalance capital positions within the Group in response to APRA’s changes in the capital
requirements for subsidiaries. ANZBGL made a capital injection into ANZ PNG equivalent to the dividend, net of withholding tax. As a result of the
dividend payment, a dividend withholding tax expense of $126 million was recognised during the period.
Asian associate items

Half Year

Mar 22 Sep 21Mar 21

$M $M$M
AmBank 1MDB settlement
1
- -(212)
AmBank goodwill impairment
2
- -(135)
Profit/(Loss) before income tax
- -(347)
Income tax benefit/(expense) and non-controlling interests - --
Cash profit/(loss) from continuing operations
- -(347)
1.
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.
2.
AmBank partially impaired goodwill and the Group recognised a $135 million reduction in equity accounted earnings after tax reflecting its share of the impairment during the March 2021
half.

SUMMARY
14
Large/Notable items - continuing operations

Cash Profit Results
March 2022 Half Year v. March 2021 Ha
lf Year
March 2022 Half Year v. September 2021 Half Year

Mar 22
Large/
notables
Mar 22
ex. Large/
notables Mar 21
Large/
notables
Mar 21
ex. Large/
notables
Movt
ex. Large/
notables
Mar 22
Large/
notables
Mar 22
ex. Large/
notables Sep 21
Large/
notables
Sep 21
ex. Large/
notables
Movt
ex. Large/
notables

$M
$M
$M $M $M $M %
$M
$M
$M $M $M $M %
Net interest income
7,100
(3)
7,103
6,986 (56) 7,042 1%
7,100
(3)
7,103
7,175 (30) 7,205 -1%
Other operating income
1,848
258
1,590
1,437 (500) 1,937 -18%
1,848
258
1,590
1,849 39 1,810 -12%
Operating income
8,948
255
8,693
8,423 (556) 8,979 -3%
8,948
255
8,693
9,024 9 9,015 -4%
Operating expenses
(4,791)
(236)
(4,555)
(4,482) (295) (4,187) 9%
(4,791)
(236)
(4,555)
(4,569) (146) (4,423) 3%
Profit before credit impairment and income tax
4,157
19
4,138
3,941 (851) 4,792 -14%
4,157
19
4,138
4,455 (137) 4,592 -10%
Credit impairment (charge)/release
284
(4)
288
491 3 488 -41%
284
(4)
288
76 - 76 large
Profit/(Loss) before income tax
4,441
15
4,426
4,432 (848) 5,280 -16%
4,441
15
4,426
4,531 (137) 4,668 -5%
Income tax benefit/(expense) and non-controlling interests
(1,328)
(58)
(1,270)
(1,442) 85 (1,527) -17%
(1,328)
(58)
(1,270)
(1,323) 40 (1,363) -7%
Cash profit/(loss) from continuing operations
3,113
(43)
3,156
2,990 (763) 3,753 -16%
3,113
(43)
3,156
3,208 (97) 3,305 -5%

Cash Profit/(Loss) By Division
March 2022 Half Year v. March 2021
Half Year

March 2022 Half Year v. September 2021 Half Year

Mar 22
Large/
notables
Mar 22
ex. Large/
notables Mar 21
Large/
notables
Mar 21
ex. Large/
notables
Movt
ex. Large/
notables
Mar 22
Large/
notables
Mar 22
ex. Large/
notables Sep 21
Large/
notables
Sep 21
ex. Large/
notables
Movt
ex. Large/
notables

$M
$M
$M $M $M $M %
$M
$M
$M $M $M $M %
Australia Retail and Commercial
1,986
181
1,805
1,782 (373) 2,155 -16%
1,986
181
1,805
1,835 (76) 1,911 -6%
Institutional
730
(140)
870
948 (21) 969 -10%
730
(140)
870
939 (6) 945 -8%
New Zealand
787
(4)
791
771 6 765 3%
787
(4)
791
737 (11) 748 6%
Pacific
(6)
(18)
12
7 (1) 8 50%
(6)
(18)
12
(10) (1) (9) large
Group Centre
(384)
(62)
(322)
(518) (374) (144) large
(384)
(62)
(322)
(293) (3) (290) 11%
Cash profit/(loss) from continuing operations
3,113
(43)
3,156
2,990 (763) 3,753 -16%
3,113
(43)
3,156
3,208 (97) 3,305 -5%

SUMMARY
15
Large/Notable items - continuing operations



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



March 2022 Half Year

March 2021 Half Year

Large/notable items included in continuing cash profit

Large/notable items included in continuing cash profit

Gain/(Loss)
from
divestments
/closures
$M
Divested
business
results
$M
Customer
remediation
$M
Litigation
settlements
$M
Restructuring
1

$M
Withholding
tax
$M
Total
$M
Gain/(Loss)
from
divestments
/closures
$M
Divested
business
results
$M
Customer
remediation
$M
Litigation
settlements
$M
Restructuring
$M
Asian
associate
items
$M
Total
$M
Cash Profit
Net interest income
-
-
(3)
-
-
-
(3)
- - (56) -
- -
(56)
Other operating income
193
87
(22)
-
-
-
258
(238) 103
(18)
-
- (347)
(500)
Operating income
193
87
(25)
-
-
-
255
(238) 103
(74)
-
- (347)
(556)
Operating expenses
(19)
(29)
(148)
(10)
(30)
-
(236)
- (29) (92) (69) (105) -
(295)
Profit before credit impairment and income tax
174
58
(173)
(10)
(30)
-
19
(238) 74 (166) (69) (105) (347)
(851)
Credit impairment (charge)/ release
(6)
2
-
-
-
-
(4)
- 3 - -
- -
3
Profit before income tax
168
60
(173)
(10)
(30)
-
15
(238) 77 (166) (69) (105) (347)
(848)
Income tax benefit/(expense) and non-controlling interests
37
(18)
50
-
(1)
(126)
(58)
- (23) 58 21
29
-
85
Cash profit/(loss) from continuing operations
205
42
(123)
(10)
(31)
(126)
(43)
(238) 54 (108) (48)
(76) (347)
(763)

March 2022 Half Year

September 2021 Half Year

Large/notable items included in continuing cash profit

Large/notable items included in continuing cash profit

Gain/(Loss)
from
divestments
/closures
$M
Divested
business
results
$M
Customer
remediation
$M
Litigation
settlements
$M
Restructuring
1

$M
Withholding
tax
$M
Total
$M
Gain/(Loss)
from
divestments
/closures
$M
Divested
business
results
$M
Customer
remediation
$M
Litigation
settlements
$M
Restructuring
$M
Asian
associate
items
$M
Total
$M
Cash Profit

Net interest income
-
-
(3)
-
-
-
(3)
- - (30) -
- -
(30)
Other operating income
193
87
(22)
-
-
-
258
- 77 (38) -
-
-
39
Operating income
193
87
(25)
-
-
-
255
- 77 (68) -
-
-
9
Operating expenses
(19)
(29)
(148)
(10)
(30)
-
(236)
- (31) (93) -
(22)
-
(146)
Profit before credit impairment and income tax
174
58
(173)
(10)
(30)
-
19
- 46 (161) -
(22)
-
(137)
Credit impairment (charge)/ release
(6)
2
-
-
-
-
(4)
- - - -
- -
-
Profit before income tax
168
60
(173)
(10)
(30)
-
15
- 46 (161) -
(22)
-
(137)
Income tax benefit/(expense) and non-controlling interests
37
(18)
50
-
(1)
(126)
(58)
- (14) 48
-
6
-
40
Cash profit/(loss) from continuing operations
205
42
(123)
(10)
(31)
(126)
(43)
- 32 (113) -
(16)
-
(97)
1.
Restructuring expense before tax of $30 million (Sep 21: $22
million; Mar 21: $105 million) does
not include restructuring exp
enses of $19 million (Sep 21: nil; Mar 21: nil) incurred as part of the business divestments/closures.

SUMMARY
16
Large/Notable items - continuing operations

The Group has reco
g
nised some lar
g
e/notable items within cash profit from continuin
g
operations. The impact of these items on the divisional results are shown in the tables below.





March 2022 Half Year

March 2021 Half Year

Large/notable items included in continuing cash profit

Large/notable items included in continuing cash profit

Gain/(Loss)
from
divestments
/closures
$M
Divested
business
results
$M
Customer
remediation
$M
Litigation
settlements
$M
Restructuring
1

$M
Withholding
tax
$M
Total
$M
Gain/(Loss)
from
divestments
/closures
$M
Divested
business
results
$M
Customer
remediation
$M
Litigation
settlements
$M
Restructuring
$M
Asian
associate
items
$M
Total
$M
Profit before income tax
Australia Retail and Commercial
238
53
(167)
-
(14)
-
110
(251) 59 (191) -
(40)
-
(423)
Institutional
-
7
(6)
(10)
(4)
-
(13)
- 18 25 (69) (16)
-
(42)
New Zealand
-
-
-
-
(6)
-
(6)
13 - - - (10) -
3
Pacific
(18)
-
-
-
-
-
(18)
- - - - (1) -
(1)
Group Centre
(52)
-
-
-
(6)
-
(58)
- - - - (38) (347)
(385)
Profit before income tax
168
60
(173)
(10)
(30)
-
15
(238) 77 (166) (69) (105) (347)
(848)
Income tax benefit/(expense) and non-controlling interests
37
(18)
50
-
(1)
(126)
(58)
- (23) 58 21
29
-
85
Cash profit/(loss) from continuing operations
205
42
(123)
(10)
(31)
(126)
(43)
(238) 54 (108) (48)
(76) (347)
(763)

March 2022 Half Year

September 2021 Half Year

Large/notable items included in continuing cash profit

Large/notable items included in continuing cash profit

Gain/(Loss)
from
divestments
/closures
$M
Divested
business
results
$M
Customer
remediation
$M
Litigation
settlements
$M
Restructuring
1

$M
Withholding
tax
$M
Total
$M
Gain/(Loss)
from
divestments
/closures
$M
Divested
business
results
$M
Customer
remediation
$M
Litigation
settlements
$M
Restructuring
$M
Asian
associate
items
$M
Total
$M
Profit before income tax
Australia Retail and Commercial
238
53
(167)
-
(14)
-
110
- 48 (146) -
(12)
-
(110)
Institutional
-
7
(6)
(10)
(4)
-
(13)
- (2) 3 -
(8) -
(7)
New Zealand
-
-
-
-
(6)
-
(6)
- - (16) -
1 -
(15)
Pacific
(18)
-
-
-
-
-
(18)
- - (2) -
- -
(2)
Group Centre
(52)
-
-
-
(6)
-
(58)
- - - - (3) -
(3)
Profit before income tax
168
60
(173)
(10)
(30)
-
15
- 46 (161) -
(22)
-
(137)
Income tax benefit/(expense) and non-controlling interests
37
(18)
50
-
(1)
(126)
(58)
- (14) 48
-
6
-
40
Cash profit/(loss) from continuing operations
205
42
(123)
(10)
(31)
(126)
(43)
- 32 (113) -
(16)
-
(97)
1.
Restructuring expense before tax of $30 million (Sep 21: $22
million; Mar 21: $105 million) does
not include restructuring exp
enses of $19 million (Sep 21: nil; Mar 21: nil) incurred as part of the business divestments/closures.

SUMMARY


17
Full Time Equivalent Staff

As at 31 March 2022, ANZ employed 40,012 staff (Sep 21: 40,221; Mar 21: 38,555) on a full-time equivalent (FTE) basis.

Division

As at

Movement

Mar 22 Sep 21 Mar 21
Mar 22
v. Sep 21
Mar 22
v. Mar 21
Australia Retail and Commercial 14,505 14,480 14,118 0% 3%
Institutional
1
6,236 6,196 6,061 1% 3%
New Zealand
7,026 7,060 6,691 0% 5%
Pacific
1,092 1,089 1,101 0% -1%
Group Centre
1,2
10,670 10,859 9,873 -2% 8%
Total FTE from continuing operations
39,529 39,684 37,844 0% 4%
Discontinued operations 483 537 711 -10% -32%
Total FTE including discontinued operations
40,012 40,221 38,555 -1% 4%
Average FTE from continuing operations 40,013 38,489 37,594 4% 6%
Average FTE including discontinued operations
40,522 39,093 38,532 4% 5%

Geography
As at

Movement

Mar 22 Sep 21 Mar 21
Mar 22
v. Sep 21
Mar 22
v. Mar 21
Australia 19,650 19,552 18,664 1% 5%
Asia, Pacific, Europe & America
12,931 13,196 12,678 -2% 2%
New Zealand
7,431 7,473 7,213 -1% 3%
Total FTE
40,012 40,221 38,555 -1% 4%
1.
FTE has been restated to reflect the transfer of Banking Services from the Group Centre division to the Institutional division during the March 2022 half (Sep 21: 864; Mar 21: 846).
2.
Excludes FTE of the consolidated investments managed by 1835i Group Pty Ltd (1835i).


Other Non-Financial Information


Half Year

Movement
Shareholder value - ordinary shares

Mar 22 Sep 21 Mar 21

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Share price ($)
- high
28.98 29.64 29.55 -2% -2%
- low
24.65 26.65 16.97 -8% 45%
- closing

27.60 28.15 28.18 -2% -2%
Closing market capitalisation of ordinary shares ($B)
77.1 79.5 80.2 -3% -4%
Total shareholder returns (TSR)
0.5% 2.4% 66.6% large large



As at Mar 22
Credit ratings

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

SUMMARY


18
This page has been left blank intentionally

GROUP RESULTS


19


CONTENTS Page

Cash Profit 20
Cash Net Interest Income - continuing operations 21
Cash Other Operating Income - continuing operations 23
Cash Operating Expenses - continuing operations 26
Investment Spend - continuing operations 28
Software Capitalisation - continuing operations 28
Credit Risk - continuing operations 29
Cash Income Tax Expense - continuing operations 34
Impact of Foreign Currency Translation - continuing operations 35
Earnings Related Hedges - continuing operations 37
Cash 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 the 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.



Half Year

Movement


Mar 22
$M
Sep 21
$M
Mar 21
$M
Mar 22
v. Sep 21
Mar 22
v. Mar 21
Statutory profit attributable to shareholders of the Company from
continuing operations

3,535 3,228 2,951 10% 20%


Adjustments between statutory profit and cash profit
1

Economic hedges

(373) (128) 51 large large
Revenue and expense hedges

(49) 108 (12) large large
Total adjustments between statutory profit and cash profit from
continuing operations

(422) (20) 39 large large
Cash profit from continuing operations 3,113 3,208 2,990 -3% 4%
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 22
$M
Sep 21
$M
Mar 21
$M
Mar 22
v. Sep 21
Mar 22
v. Mar 21
Net interest income 7,100 7,175 6,986 -1% 2%
Other operating income
1,848 1,849 1,437 0% 29%
Operating income
8,948 9,024 8,423 -1% 6%
Operating expenses (4,791) (4,569) (4,482) 5% 7%
Profit before credit impairment and income tax
4,157 4,455 3,941 -7% 5%
Credit impairment (charge)/release 284 76 491 large -42%
Profit before income tax
4,441 4,531 4,432 -2% 0%
Income tax expense and non-controlling interests (1,328) (1,323) (1,442) 0% -8%
Cash profit from continuing operations
3,113 3,208 2,990 -3% 4%

Half Year Movement
Cash Profit/(Loss) by Division
Mar 22
$M
Sep 21
$M
Mar 21
$M
Mar 22
v. Sep 21
Mar 22
v. Mar 21
Australia Retail and Commercial

1,986 1,835 1,782

8% 11%
Institutional
730 939 948 -22% -23%
New Zealand
787 737 771 7% 2%
Pacific
(6) (10) 7 -40% large
Group Centre
(384) (293) (518) 31% -26%
Cash profit from continuing operations
3,113 3,208 2,990 -3% 4%

GROUP RESULTS


21
Cash Net Interest Income - continuing operations


Half Year

Movement
Group

Mar 22
$M
Sep 21
$M
Mar 21
$M

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Net interest income
1
7,100 7,175 6,986 -1% 2%
Average interest earning assets
899,678 869,825 857,524 3% 5%
Average deposits and other borrowings
768,118 728,925 696,066 5% 10%
Net interest margin (%)
1.58 1.65 1.63 -7 bps -5 bps
Group (excluding Markets business unit)

Net interest income
1
6,684 6,736 6,584 -1% 2%
Average interest earning assets
645,467 618,904 580,971 4% 11%
Average deposits and other borrowings
593,241 563,767 532,132 5% 11%
Net interest margin (%)
2.08 2.17 2.27 -9 bps -19 bps



Half Year

Movement
Net interest margin by major division
1


Mar 22
$M
Sep 21
$M
Mar 21
$M

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Australia Retail and Commercial

Net interest margin (%) - cash

2.55 2.59 2.56

-4 bps -1 bps
Average interest earning assets

303,623 308,937 311,211

-2% -2%
Average deposits and other borrowings

258,812 245,089 240,094

6% 8%


Institutional

Net interest margin (%) - cash

0.83 0.85 0.77

-2 bps 6 bps
Average interest earning assets

390,901 374,019 397,339

5% -2%
Average deposits and other borrowings

323,662 302,551 292,475

7% 11%


New Zealand

Net interest margin (%) - cash

2.33 2.34 2.32

-1 bps 1 bps
Average interest earning assets

129,773 125,729 120,580

3% 8%
Average deposits and other borrowings
105,179 100,444 95,864 5% 10%
1.
Includes large/notable items of -$3 million for the March 2022 half (Sep 21 half: -$30 million; Mar 21 half: -$56 million). Refer to pages 12 to 16 for further details on large/notable items. Also
includes the major bank levy of -$165 million for the March 2022 half (Sep 21 half: -$157 million; Mar 21 half: -$189 million).

Group net interest margin - March 2022 Half Year v March 2021 Half Year

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

 March 2022 v March 2021
Net interest margin (-5 bps)
 Wholesale funding & deposit pricing (+8 bps): driven by deposit margin management across all divisions and wholesale funding costs.
 Asset pricing (-10 bps): driven by pricing competition in home lending in the Australia Retail and Commercial and New Zealand divisions.
 Asset and funding mix (-3 bps): driven by unfavourable product mix reflecting impacts of customers switching from variable to fixed rate home
loans, lower unsecured lending and lower overall growth in the Australia Retail and Commercial division. This was partially offset by favourable
deposit mix with growth in at-call deposits, and increased customer deposits relative to wholesale funding.
 Liquidity (-5 bps): driven by growth in lower yielding liquid assets.
 Earnings on capital and replicating portfolio (+1 bps): driven by growth in volumes, partially offset by a lower earnings yield.
 Markets Balance Sheet activities (+3 bps): driven by a reduction in lower margin Markets average interest earning assets.
 Large/notable items (+1 bps): driven by reduced customer remediation.

GROUP RESULTS


22
Average interest earning assets (+42.2 billion or +5%)
 Average net loans and advances (+20.6 billion or +4%): driven by lending growth in the Institutional division, home loan growth in the New
Zealand division and the impact of foreign currency translation movements, partially offset by a decline in the Australia Retail and Commercial
division.
 Average trading and investment securities (-24.1 billion or -17%): driven primarily by portfolio rebalancing activities in Markets, partially offset by
the impact of foreign currency translation movements over the period.
 Average cash and other liquid assets (+45.6 billion or +36%): driven by higher central bank balances, partially offset by lower reverse repurchase
agreements.
Average deposits and other borrowings (+$72.0 billion or +10%)
 Average deposits and other borrowings (+$72.0 billion or +10%): driven by growth in at-call deposits across all divisions and increases in
commercial paper and certificates of deposit, partially offset by lower term deposits.

Group net interest margin - March 2022 Half Year v September 2021 Half Year

1.
Markets Balance Sheet activities includes the impact of discretionary liquid assets and other Balance Sheet activities.
 March 2022 v September 2021
Net interest margin (-7 bps)
 Wholesale funding & deposit pricing (+4 bps): driven by deposit margin management across all divisions and wholesale funding costs.
 Asset pricing (-6 bps): driven by continued competition in home lending in the Australia Retail and Commercial and New Zealand divisions.
 Asset and funding mix (-3 bps): driven by the impacts of customers switching from variable to fixed rate home loans and lower growth in the
Australia Retail and Commercial division. This was partially offset by favourable deposit mix with growth in at-call deposits, and increased
customer deposits relative to wholesale funding.
 Liquidity (-2 bps): driven by growth in lower yielding liquid assets.
 Earnings on capital and replicating portfolio (+1 bps): driven by growth in volumes and improvement in earnings yield.
 Markets Balance Sheet activities (-2 bps): driven primarily by an increase in lower margin Markets average interest earning assets.
 Large/notable items (+1 bps): driven by lower customer remediation.
Average interest earning assets (+29.9 billion or +3%)
 Average net loans and advances (+19.8 billion or +3%): driven by growth in Institutional lending as well as home lending growth in the New
Zealand division and the impact of foreign currency translation movements, partially offset by a decline in the Australia Retail and Commercial
division.
 Average trading and investment securities (-10.2 billion or -8%): driven primarily by portfolio rebalancing activities in Markets, partially offset by
the impact of foreign currency translation movements over the period.
 Average cash and other liquid assets (+20.3 billion or +13%): driven by higher central bank balances and higher reverse repurchase agreements.
Average deposits and other borrowings (+$39.2 billion or +5%)
 Average deposits and other borrowings (+$39.2 billion or +5%): driven by growth in at-call deposits across all divisions, increases in commercial
paper and the impact of foreign currency translation movements, partially offset by lower term deposits and certificates of deposits.

GROUP RESULTS


23
Cash Other Operating Income - continuing operations



Half Year

Movement


Mar 22
$M
Sep 21
$M
Mar 21
$M

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Net fee and commission income
1


953 1,052 1,011 -9% -6%
Markets other operating income

396 492 638 -20% -38%
Share of associates' profit/(loss)

74 66 (242) 12% large
Other
1


425 239 30 78% large
Total
1,848 1,849 1,437 0% 29%

Half Year Movement
Other operating income by division
Mar 22
$M
Sep 21
$M
Mar 21
$M
Mar 22
v. Sep 21
Mar 22
v. Mar 21
Australia Retail and Commercial

746 587 302 27% large
Institutional
782 864 1,014 -9% -23%
New Zealand
245 231 238 6% 3%
Pacific
34 32 33 6% 3%
Group Centre
41 135 (150) -70% large
Total
1,848 1,849 1,437 0% 29%

Markets income

Half Year Movement

Mar 22
$M
Sep 21
$M
Mar 21
$M
Mar 22
v. Sep 21
Mar 22
v. Mar 21
Net interest income 416 439 402 -5% 3%
Other operating income
396 492 638 -20% -38%
Total
812 931 1,040 -13% -22%

Other operating income (excluding large/notable items)
Other operating income included a number of items collectively referred to as large/notable items of $258 million for the March 2022 half (Sep 21 half:
$39 million; Mar 21 half: -$500 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 12 to 16 for further details on large/notable items.

Other operating income (excluding large/notable items)

Half Year

Movement


Mar 22
$M
Sep 21
$M
Mar 21
$M

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Net fee and commission income
1


883 1,012 948 -13% -7%
Markets other operating income

396 491 610 -19% -35%
Share of associates' profit/(loss)

74 66 105 12% -30%
Other
1


237 241 274 -2% -14%
Total excluding large/notable items
1,590 1,810 1,937 -12% -18%

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

Mar 22
$M
Sep 21
$M
Mar 21
$M
Mar 22
v. Sep 21
Mar 22
v. Mar 21
Australia Retail and Commercial

452 566 522 -20% -13%
Institutional
766 846 960 -9% -20%
New Zealand
245 231 225 6% 9%
Pacific
34 32 33 6% 3%
Group Centre
93 135 197 -31% -53%
Total excluding large/notable items
1,590 1,810 1,937 -12% -18%
1.
Excluding the Markets business unit.

GROUP RESULTS


24
Other operating income - March 2022 Half Year v March 2021 Half Year

 March 2022 v March 2021
Other operating income increased by $411 million (+29%). Excluding large/notable items, Other operating income decreased $347 million (-18%).
Net fee and commission income (-$58 million or -6%)
 $59 million decrease in the Australia Retail and Commercial division largely driven by Breakfree package fee changes.
 $16 million decrease from lower divested business results in the Australia Retail and Commercial and Institutional divisions.
 $23 million increase driven by lower customer remediation.
Markets income (-$228 million or -22%)
Markets income decreased $228 million (-22%) driven by a $242 million decrease in Other operating income, partially offset by a $14 million increase
in Net interest income. This was primarily attributable to the following business activities:
 $179 million decrease in Balance Sheet income from lower realised gains and unfavourable mark-to-market movements attributable to
steepening yield curves.
 $107 million decrease in Credit and Capital Markets income driven by stronger Credit Trading conditions in the March 2021 half.
 $22 million decrease from Derivative Valuation Adjustments from higher mark-to-market credit valuation adjustments.
 $53 million increase in Rates income driven by more favourable trading conditions in a rising interest-rate environment.
 $17 million increase in Foreign Exchange income driven by customer demand for hedging solutions with increased volatility and interest rate
differentials across currencies, partially offset by the release of customer remediation provisions in the March 2021 half.
 $10 million increase in Commodities income driven by increased demand for hedging solutions and more favourable trading conditions.
Share of associates’ profit/(loss) (+$316 million)
 $347 million increase driven by the Group’s share of charges recognised by AmBank in the March 2021 half in respect of the 1MDB settlement
($212 million) and goodwill impairment ($135 million).
 $31 million decrease in share of associates’ profits from PT Panin ($41 million), partially offset by an increase from AmBank ($10 million).
Other (+$395 million)
 $431 million increase driven by divestments/closures:
- $496 million increase in the Australia Retail and Commercial division from the gain on sale on completion of the ANZ Worldline partnership
($307 million) and the loss on reclassification of ANZ Share Investing to held for sale ($251 million) in the March 2021 half, partially offset by
loss on sale of the financial planning and advice business ($62 million).
- $52 million decrease in the Group Centre division driven by the recycling of foreign currency translation reserves from Other comprehensive
income to profit or loss on dissolution of Minerva and ANZ Asia ($65 million), partially offset by the release of excess provisions originally
raised as part of the UDC Finance and Paymark Limited divestments completed in the prior years ($13 million).
- $13 million decrease in the New Zealand division from the gain on sale of a legacy insurance portfolio to Tower in the March 2021 half.
 $29 million increase in the New Zealand division driven by realised gains from the sale of government securities.
 $18 million increase in the Institutional division driven by higher international payment volumes in Transaction Banking and favourable
adjustments to loans measured at fair value in Corporate Finance.
 $76 million decrease in the Group Centre division primarily driven by lower realised gains on economic hedges against foreign currency
denominated revenue streams offsetting net favourable foreign currency translations elsewhere in the Group and lower valuation adjustments
from investments measured at fair value in the digital business.
 $11 million decrease in the Australia Retail and Commercial division driven by a gain on disposal of the offsite ATM network in the March 2021
half.

GROUP RESULTS


25
 March 2022 v September 2021
Other operating income decreased by $1 million (flat). Excluding large/notable items, Other operating income decreased $220 million (-12%).
Net fee and commission income (-$99 million or -9%)
 $113 million decrease in the Australia Retail and Commercial division driven by Breakfree package fee changes, the timing of recognition of
cards incentives and seasonality of fees.
 $15 million decrease in the New Zealand division driven by the removal or reduction of funds under management fees.
 $30 million increase driven by lower customer remediation.
Markets income (-$119 million or -13%)
Markets income decreased $119 million (-13%) driven by a $96 million (-20%) decrease in Other operating income and a $23 million (-5%) decrease
in Net interest income. This was primarily attributable to the following business activities:
 $222 million decrease in Balance Sheet income with lower realised gains following portfolio rebalancing in the prior half, and lower interest
income.
 $29 million decrease in Credit and Capital Markets income driven by lower fee revenues from reduced customer issuance volumes and valuation
impacts from widening credit spreads.
 $8 million decrease from Derivative Valuation Adjustments from higher mark-to-market credit valuation adjustments.
 $62 million increase in Foreign Exchange income driven by customer demand for hedging solutions with increased volatility and interest rate
differentials across currencies.
 $57 million increase in Rates income driven by more favourable trading conditions in a rising interest-rate environment.
 $21 million increase in Commodities income driven by increased demand for hedging solutions and more favourable trading conditions.
Share of associates’ profit/(loss) (+$8 million or +12%)
 $8 million increase in the share of associates’ profits from AmBank ($34 million), partially offset by a decrease from PT Panin ($26m).
Other (+$186 million or +78%)
 $193 million increase driven by divestments/closures:
- $245 million increase in the Australia Retail and Commercial division from the gain on sale on completion of the ANZ Worldline partnership
($307 million) partially offset by loss on sale of the financial planning and advice business ($62 million).
- $52 million decrease in the Group Centre division driven by the recycling of foreign currency translation reserves from Other comprehensive
income to profit or loss on dissolution of Minerva and ANZ Asia ($65 million) partially offset by the release of excess provisions originally
raised as part of the UDC Finance and Paymark Limited divestments completed in the prior years ($13 million).
 $29 million increase in the New Zealand division driven by realised gains from the sale of government securities.
 $15 million increase in the Institutional division driven by higher international payment volumes in Transaction Banking and favourable
adjustments to loans measured at fair value in Corporate Finance.
 $50 million decrease in the Group Centre division primarily driven by lower realised gains on economic hedges against foreign currency
denominated revenue streams offsetting net favourable foreign currency translations elsewhere in the Group and lower valuation adjustments
from investments measured at fair value in the digital business.

GROUP RESULTS


26
Cash Operating Expenses - continuing operations


Half Year Movement

Mar 22
$M
Sep 21
$M
Mar 21
$M
Mar 22
v. Sep 21
Mar 22
v. Mar 21
Personnel 2,654 2,497 2,449 6% 8%
Premises
341 355 350 -4% -3%
Technology
815 803 785 1% 4%
Restructuring
49 22 105 large -53%
Other
932 892 793 4% 18%
Total
4,791 4,569 4,482 5% 7%



Half Year

Movement
Operating expenses by division

Mar 22
$M
Sep 21
$M
Mar 21
$M

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Australia Retail and Commercial

2,155 2,024 2,000

6% 8%
Institutional

1,241 1,173 1,274

6% -3%
New Zealand

678 702 623

-3% 9%
Pacific

80 73 71

10% 13%
Group Centre

637 597 514

7% 24%
Total
4,791 4,569 4,482 5% 7%



Half Year

Movement
FTE by division

Mar 22 Sep 21 Mar 21

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Australia Retail and Commercial

14,505 14,480 14,118

0% 3%
Institutional
1


6,236 6,196 6,061

1% 3%
New Zealand

7,026 7,060 6,691

0% 5%
Pacific

1,092 1,089 1,101

0% -1%
Group Centre
1,2


10,670 10,859 9,873

-2% 8%
Total FTE
39,529 39,684 37,844 0% 4%
Average FTE 40,013 38,489 37,594 4% 6%
1.
FTE has been restated to reflect the transfer of Banking Services from the Group Centre division to the Institutional division during the March 2022 half (Sep 21: 864; Mar 21: 846).
2.
Excludes FTE of the consolidated investments managed by 1835i.


Operating expenses (excluding large/notable items)
Operating expenses included a number of items collectively referred to as large/notable items of $236 million for the March 2022 half (Sep 21 half:
$146 million; Mar 21 half: $295 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 12 to 16 for further details on large/notable items.

Expenses (excluding large/notable items)

Half Year Movement

Mar 22
$M
Sep 21
$M
Mar 21
$M
Mar 22
v. Sep 21
Mar 22
v. Mar 21
Personnel 2,601 2,432 2,390 7% 9%
Premises
341 355 351 -4% -3%
Technology
801 779 763 3% 5%
Restructuring
- - - n/a n/a
Other
812 857 683 -5% 19%
Total excluding large/notable items
4,555 4,423 4,187 3% 9%

Expenses by division (excluding large/notable items)

Half Year

Movement


Mar 22
$M
Sep 21
$M
Mar 21
$M

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Australia Retail and Commercial

1,974 1,918 1,857

3% 6%
Institutional

1,210 1,149 1,171

5% 3%
New Zealand

672 691 613

-3% 10%
Pacific

68 71 70

-4% -3%
Group Centre

631 594 476

6% 33%
Total excluding large/notable items
4,555 4,423 4,187 3% 9%

GROUP RESULTS


27
Operating expenses - March 2022 Half Year v March 2021 Half Year

 March 2022 v March 2021
Operating expenses increased by $309 million (+7%). Excluding large/notable items, operating expenses increased $368 million (+9%).
 Personnel expenses increased $205 million (+8%) driven by higher resourcing during the period to support investments to meet regulatory and
compliance obligations and to develop digital capabilities, as well as Home Loan processing. Wage inflation and the impact of unfavourable
foreign currency translation movements also contributed to the overall increase. This was partially offset by the benefits of customers continuing
to embrace digital channels and productivity improvements arising from technology and back-office optimisation.
 Premises expenses decreased $9 million (-3%) driven by ongoing optimisation of property footprint and the sale of the offsite ATM network.
 Technology expenses increased $30 million (+4%) driven by higher software license costs and increased spend on investment initiatives,
partially offset by lower amortisation charges.
 Restructuring expenses decreased $56 million (-53%) with lower charges across all divisions.
 Other expenses increased $139 million (+18%) driven by increased spend on investment initiatives and higher customer remediation. This was
partially offset by expenses relating to a litigation settlement agreed in the March 2021 half.
 March 2022 v September 2021
Operating expenses increased by $222 million (+5%). Excluding large/notable items, operating expenses increased $132 million (+3%).
 Personnel expenses increased $157 million (+6%) resulting from higher resourcing during the period to support investments to meet regulatory
and compliance obligations and to develop digital capabilities, as well as Home Loan processing. Wage inflation and the impact of unfavourable
foreign currency translation movements also contributed to the overall increase. This was partially offset by the benefits of customers continuing
to embrace digital channels and productivity improvements arising from technology and back-office optimisation.
 Premises expenses decreased $14 million (-4%) driven by ongoing optimisation of property footprint and the sale of the offsite ATM network.
 Technology expenses increased $12 million (+1%) driven by higher software licence costs, partially offset by lower amortisation charges.
 Restructuring expenses increased $27 million driven by the planned closure of ANZ American Territories and retrenchment costs relating to the
business changes in the Australia Retail and Commercial division.
 Other expenses increased $40 million (+4%) driven by higher customer remediation partially offset by seasonally lower marketing spend.

GROUP RESULTS


28
Investment Spend - continuing operations

Half Year

Movement


Mar 22
$M
Sep 21
$M
Mar 21
$M

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Investment expensed
1
913 841 593 9% 54%
Investment capitalised
130 217 159 -40% -18%
Total investment spend from continuing operations
1
1,043 1,058 752 -1% 39%



Investment spend by division Half Year

Movement

Mar 22
$M
Sep 21
$M
Mar 21
$M

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Australia Retail and Commercial 332 319 236 4% 41%
Institutional
2
144 161 123 -11% 17%
New Zealand
136 147 98 -7% 39%
Group Centre
2
431 431 295 0% 46%
Total investment spend from continuing operations
1,043 1,058 752 -1% 39%
1.
Includes investment expensed associated with large/notable items of $56 million (Sep 21 half: $79 million; Mar 21 half: $82 million).

2.
Investment spend from continuing operations has been restated to reflect the transfer of Banking Services from the Group Centre division to the Institutional division in the March 2022 half
(Sep 21: $53 million; Mar 21: $40 million).



Software Capitalisation - continuing operations
Capitalised software comprises both costs incurred to develop software, which are included within investment spend, and costs to acquire software.
These costs are capitalised as intangible assets and amortised over the expected useful lives. Details are presented in the table below:


Half Year

Movement


Mar 22
$M
Sep 21
$M
Mar 21
$M

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Balance at start of period 960 961 1,039 0% -8%
Software capitalised during the period
155 200 156 -23% -1%
Amortisation during the period
(189) (201) (233) -6% -19%
Software impaired/written-off
(2) - (1) n/a 100%
Total capitalised software from continuing operations
924 960 961 -4% -4%

Capitalised software by division As at

Movement

Mar 22
$M
Sep 21
$M
Mar 21
$M

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Australia Retail and Commercial 123 130 133 -5% -8%
Institutional
1
399 393 386 2% 3%
New Zealand
20 14 8 43% large
Group Centre
1
382 423 434 -10% -12%
Total capitalised software from continuing operations
924 960 961 -4% -4%
1.
Software capitalisation from continuing operations has been restated to reflect the transfer of Banking Services operations from the Group Centre division to the Institutional division in the
March 2022 half (Sep 21: $262 million; Mar 21: $251 million).

GROUP RESULTS


29
Credit Risk - continuing operations
The Group’s assessment of expected credit losses (ECL) from its credit portfolio is subject to judgements and estimates made by management based on
a variety of internal and external information, as well as the Group’s experience of the performance of the portfolio under previously stressed conditions.
Refer to Note 1 of the Condensed Consolidated Financial Statements for further information.

Credit impairment char
ge/(release)


Half Year Movement
Collectively assessed
Mar 22
$M
Sep 21
$M
Mar 21
$M
Mar 22
v. Sep 21
Mar 22
v. Mar 21
Australia Retail and Commercial (323) (106) (515) large -37%
Institutional
(27) (49) (110) -45% -75%
New Zealand
(17) (8) (53) large -68%
Pacific
(3) 15 - large n/a
Group Centre
(1) 3 - large n/a
Total collectively assessed (371) (145) (678) large -45%

Individually assessed

Australia Retail and Commercial 88 61 134 44% -34%
Institutional
(8) 15 55 large large
New Zealand
(4) (10) (5) -60% -20%
Pacific
6 3 3 100% 100%
Group Centre
5 - - n/a n/a
Total individually assessed 87 69 187 26% -53%

Total credit impairment charge/(release)

Australia Retail and Commercial (235) (45) (381) large -38%
Institutional
(35) (34) (55) 3% -36%
New Zealand
(21) (18) (58) 17% -64%
Pacific
3 18 3 -83% 0%
Group Centre
4 3 - 33% n/a
Total credit impairment charge/(release) (284) (76) (491) large -42%

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 2022 Half Year $M $M $M $M $M $M $M $M
Australia Retail and Commercial
56 (391) 12 (323) 239 (151) 88 (235)
Institutional
53 (71) (9) (27) 20 (28) (8) (35)
New Zealand
4 (23) 2 (17) 33 (37) (4) (21)
Pacific
(5) - 2 (3) 9 (3) 6 3
Group Centre
(1) - - (1) - 5 5 4
Total
107 (485) 7 (371) 301 (214) 87 (284)


September 2021 Half Year
Australia Retail and Commercial (32) (62) (12) (106) 285 (224) 61 (45)
Institutional (14) (41) 6 (49) 57 (42) 15 (34)
New Zealand 8 (10) (6) (8) 21 (31) (10) (18)
Pacific (1) 5 11 15 6 (3) 3 18
Group Centre 3 - - 3 - - - 3
Total (36) (108) (1) (145) 369 (300) 69 (76)


March 2021 Half Year
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
Group Centre - - - - - - - -
Total (233) (396) (49) (678) 455 (268) 187 (491)

Collectively assessed credit impairment charge/(release)
 March 2022 v March 2021
The collectively assessed credit impairment release decreased $307 million (-45%) driven by lower releases across the Australia Retail and
Commercial ($192 million), Institutional ($83 million) and New Zealand ($36 million) divisions. Collectively assessed credit impairment provision
decreased substantially in the March 2021 half primarily due to improvements in the economic outlook and improvements in portfolio mix. The
collectively assessed credit impairment release in the March 2022 half was primarily driven by underlying improvement in risk profile, portfolio mix
and the reduction in COVID-19 specific management overlays, partially offset by changes in economic scenario weights and new management
overlays for floods.
 March 2022 v September 2021
The collectively assessed credit impairment release increased $226 million driven a higher release in the Australia Retail and Commercial division
($217 million). Collectively assessed credit impairment provisions decreased in the September 2021 half as a result of underlying changes in portfolio
risk combined with a relatively stable view of forward-looking economic outlook. The collectively assessed credit impairment release in the March
2022 half was primarily driven by underlying improvement in risk profile, portfolio mix and the reduction in COVID-19 specific management overlays,
partially offset by changes in economic scenario weights and new management overlays for floods.
Individually assessed credit impairment charge/(release)
 March 2022 v March 2021
The individually assessed credit impairment charge decreased $100 million (-53%) driven by decreases across the Australia Retail and Commercial
division (-$46 million) with underlying delinquency and impairment flows remaining subdued post government and bank COVID-19 support packages,
and the Institutional division (-$63 million) due to higher impairments taken in the March 2021 half.
 March 2022 v September 2021
The individually assessed credit impairment charge increased by $18 million (26%) driven by increases across the Australia Retail and Commercial
division ($27 million) with lower write-backs in the Home Loans, Business Banking and Small Business Banking portfolios, and the New Zealand
division ($6 million) substantially driven by a single name exposure. This was partially offset by a decrease in the Institutional division (-$23 million)
with lower transition to impairment over the period.

GROUP RESULTS


31
Allowance for expected credit losses
1


As at Movement
Collectively assessed
Mar 22
$M
Sep 21
$M
Mar 21
$M
Mar 22
v. Sep 21
Mar 22
v. Mar 21
Australia Retail and Commercial 1,891 2,225 2,331 -15% -19%
Institutional
1,280 1,346 1,364 -5% -6%
New Zealand
495 526 513 -6% -4%
Pacific
89 95 77 -6% 16%
Group Centre
2 3 - -33% n/a
Total collectively assessed 3,757 4,195 4,285 -10% -12%


Individually assessed

Australia Retail and Commercial 364 406 520 -10% -30%
Institutional
185 195 191 -5% -3%
New Zealand
62 63 79 -2% -22%
Pacific
25 23 19 9% 32%
Group Centre
- - - n/a n/a
Total individually assessed 636 687 809 -7% -21%


Allowance for ECL

Australia Retail and Commercial 2,255 2,631 2,851 -14% -21%
Institutional
1,465 1,541 1,555 -5% -6%
New Zealand
557 589 592 -5% -6%
Pacific
114 118 96 -3% 19%
Group Centre
2 3 - -33% n/a
Total allowance for ECL 4,393 4,882 5,094 -10% -14%


Collectively assessed
Individually
assessed

As at March 2022
Stage 1
$M
Stage 2
$M
Stage 3
$M
Total
$M
Stage 3
$M
Total
$M
Australia Retail and Commercial 477 1,074 340 1,891 364 2,255
Institutional
973 292 15 1,280 185 1,465
New Zealand
154 286 55 495 62 557
Pacific
12 47 30 89 25 114
Group Centre
1 1 - 2 - 2
Total
1,617 1,700 440 3,757 636 4,393

As at September 2021
Australia Retail and Commercial 430 1,467 328 2,225 406 2,631
Institutional 949 373 24 1,346 195 1,541
New Zealand 154 317 55 526 63 589
Pacific 18 48 29 95 23 118
Group Centre 3 - - 3 - 3
Total 1,554 2,205 436 4,195 687 4,882

As at March 2021
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
Group Centre - - - - - -
Total 1,561 2,292 432 4,285 809 5,094
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. For Investment securities – debt securities at FVOCI, the allowance for ECL is recognised in Other comprehensive income with a corresponding charge to
profit or loss.

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 by removing 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.



As at
Long-run loss as a % of gross lending assets by division
Mar 22 Sep 21 Mar 21
Australia Retail and Commercial

0.20% 0.22% 0.24%
New Zealand

0.12% 0.13% 0.15%
Institutional

0.21% 0.25% 0.25%
Total Group

0.20% 0.22% 0.23%


Non-Performing Credit Exposures




As at

Movement

Mar 22
$M
Sep 21
$M
Mar 21
$M

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Impaired loans
1
1,286 1,549 1,941 -17% -34%
Restructured items
2
375 355 300 6% 25%
Non-performing commitments, contingencies and derivatives
1
48 61 232 -21% -79%
Gross impaired assets
1,709 1,965 2,473 -13% -31%
Non-performing credit exposures not impaired 3,365 3,538 3,998 -5% -16%
Total non-performing credit exposures
3
5,074 5,503 6,471 -8% -22%

Gross impaired assets by division

Australia Retail and Commercial 857 1,041 1,228 -18% -30%
Institutional
641 704 892 -9% -28%
New Zealand
155 164 310 -5% -50%
Pacific
56 56 43 0% 30%
Gross impaired assets
1,709 1,965 2,473 -13% -31%

Gross impaired assets by size of exposure
Less than $10 million 1,054 1,289 1,474 -18% -28%
$10 million to $100 million
221 222 267 0% -17%
Greater than $100 million
434 454 732 -4% -41%
Gross impaired assets
1,709 1,965 2,473 -13% -31%



Individually assessed provisions
Impaired loans
(619) (666) (778) -7% -20%
Non-performing commitments and contingencies and derivatives
(17) (21) (31) -19% -45%
Net impaired assets
1,073 1,278 1,664 -16% -36%
1.
Impaired loans and non-performing commitments, contingencies and derivatives 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 and are collectively assessed for
Stage 3 ECL. 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.
3.
Non-performing credit exposures are aligned with the definition in APS220 Credit Risk Management.
 March 2022 v March 2021
Gross impaired assets decreased $764 million (-31%) driven by decreases across the Australia Retail and Commercial division (-$371 million) with
underlying delinquency flows remaining subdued due to government and bank COVID-19 support packages, the Institutional division (-$251 million)
driven by the upgrade and repayments of several single name exposures, and the New Zealand division (-$155 million) with the upgrade of a large
Agribusiness customer and a number of Agribusiness asset sales in the September 2021 half.
 March 2022 v September 2021
Gross impaired assets decreased $256 million (-13%) driven by decreases across the Australia Retail and Commercial division (-$184 million) with
underlying delinquency flows remaining subdued post government and bank COVID-19 support packages, and the Institutional division (-$63 million)
due to the repayments of several single name exposures.
The Group’s individually assessed provision coverage ratio on impaired assets was 37.2% at 31 March 2022 (Sep 21: 35.0%; Mar 21: 32.7%).

GROUP RESULTS


33
New Impaired Assets


Half Year

Movement

Mar 22
$M
Sep 21
$M
Mar 21
$M

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Impaired loans
1


478 508 798

-6% -40%
Restructured items
2


138 70 239

97% -42%
Non-performing commitments and contingencies
1
23 33 84 -30% -73%
Total new impaired assets
639 611 1,121 5% -43%
New impaired assets by division
Australia Retail and Commercial 393 461 421 -15% -7%
Institutional
137 62 602 large -77%
New Zealand
99 75 69 32% 43%
Pacific
10 13 29 -23% -66%
Total new impaired assets
639 611 1,121 5% -43%
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 and are collectively assessed for
Stage 3 ECL. 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 2022 v March 2021
New impaired assets decreased $482 million (-43%) driven by the Institutional division (-$465 million) by a small number of well secured single name
exposures taken in March 2021 half, and the Australia Retail and Commercial division (-$28 million) with underlying delinquency flows remaining
subdued post government and bank COVID-19 support packages. This was partially offset by an increase in the New Zealand division ($30 million)
driven by the impairment of a single name exposure.
 March 2022 v September 2021
New impaired assets increased by $28 million (5%) driven by the Institutional division ($75 million) with the impairment of a small number of well
secured single name exposures, and the New Zealand division ($24 million) driven by the impairment of a single name exposure. This was partially
offset by a decrease in the Australia Retail and Commercial division (-$68 million) with underlying delinquency flows remaining subdued post
government and bank COVID-19 support packages.

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



As at Movement

Mar 22
$M
Sep 21
$M
Mar 21
$M
Mar 22
v. Sep 21
Mar 22
v. Mar 21
1-29 days 4,676 4,757 5,657 -2% -17%
30-59 days
1,368 1,751 1,732 -22% -21%
60-89 days
635 860 691 -26% -8%
90+ days
2,823 3,065 3,290 -8% -14%
Total
9,502 10,433 11,370 -9% -16%
1.
Excludes eligible customers impacted by COVID-19 who applied for and were granted 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 2022 v March 2021
Net loans and advances past due but not impaired decreased $1,868 million (-16%) across all segments. The decrease was driven by home loans in
Australia and commercial portfolios in Australia and New Zealand due to the underlying delinquency flows remaining subdued reflecting the impact of
government and bank COVID-19 support packages.
 March 2022 v September 2021
Net loans and advances past due but not impaired decreased $931 million (-9%) across all segments. The decrease was driven by home loans in
Australia and commercial portfolios in Australia and New Zealand due to the underlying delinquency flows remaining subdued reflecting the impact of
government and bank COVID-19 support packages.

GROUP RESULTS


34
Cash Income Tax Expense - continuing operations


Half Year

Movement


Mar 22
$M
Sep 21
$M
Mar 21
$M

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Income tax expense from cash profit

1,328 1,322 1,442 0% -8%
Effective tax rate
29.9% 29.2% 32.5%
 March 2022 v March 2021
The effective tax rate decreased from 32.5% to 29.9%. The decrease of 262 bps was driven by the net non-tax assessable gain from
divestments/closures in the March 2022 half (-186 bps), the non-tax deductible impacts of the reclassification of ANZ Share Investing to held for sale
in the March 2021 half (-169 bps) and lower equity accounted earnings (-212 bps). This was partially offset by higher withholding tax expense mainly
due to the dividend payment from ANZ Papua New Guinea (+254 bps).
 March 2022 v September 2021
The effective tax rate increased from 29.2% to 29.9%. The increase of 72 bps was driven by higher withholding tax expense mainly due to the
dividend payment from ANZ Papua New Guinea (+289 bps), partially offset by the net non-tax assessable gain from divestments/closures in the
March 2022 half (-195 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 2022 Half Year v March 2021 Half Year

Half Year Movement

Actual
FX
unadjusted
FX
impact
FX
adjusted
FX
unadjusted
FX
adjusted

Mar 22
$M
Mar 21
$M
Mar 21
$M
Mar 21
$M
Mar 22
v. Mar 21
Mar 22
v. Mar 21
Net interest income 7,100 6,986 29 7,015 2% 1%
Other operating income
1,848 1,437 (12) 1,425 29% 30%
Operating income
8,948 8,423 17 8,440 6% 6%
Operating expenses (4,791) (4,482) (25) (4,507) 7% 6%
Profit before credit impairment and income tax
4,157 3,941 (8) 3,933 5% 6%
Credit impairment (charge)/release 284 491 (1) 490 -42% -42%
Profit before income tax
4,441 4,432 (9) 4,423 0% 0%
Income tax expense and non-controlling interests (1,328) (1,442) 3 (1,439) -8% -8%
Cash profit from continuing operations
3,113 2,990 (6) 2,984 4% 4%



Cash profit/(loss) from continuing operations by division



Australia Retail and Commercial

1,986 1,782 - 1,782

11% 11%
Institutional

730 948 3 951

-23% -23%
New Zealand

787 771 8 779

2% 1%
Pacific

(6) 7 - 7

large large
Group Centre
(384) (518) (17) (535) -26% -28%
Cash profit from continuing operations
3,113 2,990 (6) 2,984 4% 4%



Net loans and advances by division



Australia Retail and Commercial

342,173 344,269 - 344,269

-1% -1%
Institutional

174,986 147,446 558 148,004

19% 18%
New Zealand

129,594 120,482 1,498 121,980

8% 6%
Pacific

1,664 1,713 15 1,728

-3% -4%
Group Centre
3,019 449 - 449 large large
Net loans and advances
651,436 614,359 2,071 616,430 6% 6%

Customer deposits by division



Australia Retail and Commercial

263,420 241,315 - 241,315

9% 9%
Institutional

243,836 223,666 941 224,607

9% 9%
New Zealand

100,102 93,201 1,158 94,359

7% 6%
Pacific

3,763 3,394 30 3,424

11% 10%
Group Centre
(67) (53) - (53) 26% 26%
Customer deposits
611,054 561,523 2,129 563,652 9% 8%

GROUP RESULTS


36
March 2022 Half Year v September 2021 Half Year

Half Year Movement

Actual
FX
unadjusted
FX
impact
FX
adjusted
FX
unadjusted
FX
adjusted

Mar 22
$M
Sep 21
$M
Sep 21
$M
Sep 21
$M
Mar 22
v. Sep 21
Mar 22
v. Sep 21
Net interest income 7,100 7,175 22 7,197 -1% -1%
Other operating income
1,848 1,849 (19) 1,830 0% 1%
Operating income
8,948 9,024 3 9,027 -1% -1%
Operating expenses (4,791) (4,569) (22) (4,591) 5% 4%
Profit before credit impairment and income tax
4,157 4,455 (19) 4,436 -7% -6%
Credit impairment (charge)/release 284 76 2 78 large large
Profit before income tax
4,441 4,531 (17) 4,514 -2% -2%
Income tax expense and non-controlling interests (1,328) (1,323) 4 (1,319) 0% 1%
Cash profit from continuing operations
3,113 3,208 (13) 3,195 -3% -3%



Cash profit/(loss) from continuing operations by division



Australia Retail and Commercial

1,986 1,835 - 1,835

8% 8%
Institutional

730 939 3 942

-22% -23%
New Zealand

787 737 2 739

7% 6%
Pacific

(6) (10) - (10)

-40% -40%
Group Centre
(384) (293) (18) (311) 31% 23%
Cash profit from continuing operations
3,113 3,208 (13) 3,195 -3% -3%



Net loans and advances by division



Australia Retail and Commercial

342,173 341,233 - 341,233

0% 0%
Institutional

174,986 158,231 (2,827) 155,404

11% 13%
New Zealand

129,594 128,466 (3,432) 125,034

1% 4%
Pacific

1,664 1,771 (46) 1,725

-6% -4%
Group Centre
3,019 18 - 18 large large
Net loans and advances
651,436 629,719 (6,305) 623,414 3% 4%



Customer deposits by division



Australia Retail and Commercial

263,420 252,504 - 252,504

4% 4%
Institutional

243,836 239,628 (6,304) 233,324

2% 5%
New Zealand

100,102 97,719 (2,611) 95,108

2% 5%
Pacific

3,763 3,767 (95) 3,672

0% 2%
Group Centre
(67) (35) - (35) 91% 91%
Customer deposits
611,054 593,583 (9,010) 584,573 3% 5%

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 22
$M
Sep 21
$M
Mar 21
$M
Net open NZD position (notional principal)
1
2,630 2,652 2,444
Amount taken to income (pre-tax statutory basis)
2
63 (91) 26
Amount taken to income (pre-tax cash basis)
3
7 2 18
USD Economic hedges
Net open USD position (notional principal)
1
529 528 463
Amount taken to income (pre-tax statutory basis)
2
21 (26) 26
Amount taken to income (pre-tax cash basis)
3
6 38 16
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 2022, the following hedges were in place to partially hedge future earnings against adverse movements in exchange rates:
 NZD 2.8 billion at a forward rate of approximately NZD 1.07/AUD.
 USD 0.4 billion at a forward rate of approximately USD 0.75/AUD.
During the March 2022 half:
 NZD 1.1 billion of economic hedges matured and a realised gain of $7 million (pre-tax) was recorded in cash profit.
 USD 0.2 billion of economic hedges matured and a realised gain of $6 million (pre-tax) was recorded in cash profit.
 An unrealised gain of $71 million (pre-tax) on the outstanding NZD and USD economic hedges was recorded in the statutory profit 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.


Cash Earnings Per Share - continuing operations



Half Year

Movement

Mar 22 Sep 21 Mar 21

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Cash earnings per share (cents) from continuing operations



Basic



110.8 113.0 105.3 -2% 5%
Diluted

104.2 106.4 99.9 -2% 4%
Cash weighted average number of ordinary shares (M)

Basic

2,808.7 2,838.4 2,838.7 -1% -1%
Diluted

3,077.2 3,105.5 3,084.4 -1% 0%
Cash profit from continuing operations ($M)

3,113 3,208 2,990 -3% 4%
Cash profit from continuing operations used in calculating diluted
cash earnings per share ($M)

3,205 3,303 3,082 -3% 4%

GROUP RESULTS


38
Dividends - continuing operations



Half Year

Movement
Dividend per ordinary share (cents) - continuing operations
1
Mar 22 Sep 21 Mar 21

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Interim

72 - 70
Final
- 72 -
Total
72 72 70 0% 3%
Ordinary share dividends used in payout ratio ($M)
2,3
2,012 2,030 1,992
Cash profit from continuing operations ($M)
3,113 3,208 2,990 -3% 4%
Ordinary share dividend payout ratio (cash continuing basis)
3
64.6% 63.3% 66.6%
1.
Fully franked for Australian tax purposes (30% tax rate) and carry New Zealand imputation credits of NZD 9 cents for the proposed 2022 interim dividend (2021 final dividend: NZD 8 cents;
2021 interim dividend: NZD 8 cents).
2.
Dividend paid to ordinary equity holders of the Company. Excludes dividends paid by subsidiaries to the Group’s non-controlling equity holders of $2 million (Sep 21 half: nil;
Mar 21 half: nil).
3.
Dividend payout ratio for the March 2022 half is calculated using the proposed 2022 interim dividend, based on the forecast number of ordinary shares on issue at the dividend record date.
Dividend payout ratios for the September 2021 half and March 2021 half were calculated using actual dividends.

The Directors propose an interim dividend of 72 cents be paid on each eligible fully paid ANZ ordinary share on 1 July 2022. The proposed 2022 interim
dividend will be fully franked for Australian tax purposes. New Zealand imputation credits of NZD 9 cents per ordinary share will also be attached.


Economic Profit - continuing operations

Half Year Movement

Mar 22
$M
Sep 21
$M
Mar 21
$M

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Statutory profit attributable to shareholders of the Company from
continuing operations

3,535 3,228 2,951

10% 20%
Adjustments between statutory profit and cash profit from continuing operations
(422) (20) 39 large large
Cash profit from continuing operations
3,113 3,208 2,990 -3% 4%
Economic credit cost adjustment (675) (561) (895) 20% -25%
Imputation credits
405 560 549 -28% -26%
Economic return from continuing operations
2,843 3,207 2,644 -11% 8%
Cost of capital (2,406) (2,438) (2,390) -1% 1%
Economic profit from continuing operations
437 769 254 -43% 72%

Economic profit is a risk adjusted profit measure used to evaluate business unit performance. This is used for internal management purposes and is not
subject to review by the external auditor.
At a business unit level, capital is allocated based on Regulatory Capital, whereby higher risk businesses attract higher levels of capital. This method is
designed to help drive appropriate risk management and ensure business returns align with the level of risk. Key risks covered include credit risk,
operational risk, market risk and other risks.
Economic profit is calculated via a series of adjustments to cash profit:
 The economic credit cost adjustment replaces the accounting credit loss charge with internal expected loss based on the average long-run loss rate
per annum on the portfolio over an economic cycle.
 The benefit of imputation credits is recognised, measured at 70% of Australian tax.
 The cost of capital is a major component of economic profit. At an ANZ Group level, this is calculated using average ordinary shareholders’ equity
(excluding non-controlling interests), multiplied by the cost of capital rate (currently at 7.75% with comparative periods restated accordingly).
Economic profit increased by $183 million (+72%) against the March 2021 half driven by higher cash profit and favourable economic credit cost
adjustment, partially offset by lower imputation credits and higher cost of capital.
Economic profit decreased by $332 million (-43%) against the September 2021 half year driven by lower cash profit, unfavourable economic credit cost
adjustment and lower imputation credits, partially offset by lower cost of capital.

GROUP RESULTS


39
Condensed Balance Sheet - including discontinued operations


As at

Movement
Assets
Mar 22
$B
Sep 21
$B
Mar 21
$B

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Cash / Settlement balances owed to ANZ / Collateral paid 186.0 168.0 146.3 11% 27%
Trading and investment securities
119.2 127.8 138.3 -7% -14%
Derivative financial instruments
45.2 38.7 104.7 17% -57%
Net loans and advances
651.4 629.7 614.4 3% 6%
Other
15.6 14.7 14.6 6% 7%
Total assets
1,017.4 978.9 1,018.3 4% 0%
Liabilities
Settlement balances owed by ANZ / Collateral received 26.5 23.1 26.7 15% -1%
Deposits and other borrowings
780.3 743.1 706.6 5% 10%
Derivative financial instruments
47.8 36.0 102.9 33% -54%
Debt issuances
87.2 101.1 107.6 -14% -19%
Other
13.8 11.9 11.9 16% 16%
Total liabilities
955.6 915.2 955.7 4% 0%
Total equity 61.8 63.7 62.6 -3% -1%

 March 2022 v March 2021
 Cash / Settlement balances owed to ANZ / Collateral paid increased $39.7 billion (+27%) driven by increases in balances with central banks and
reverse repurchase agreements, partially offset by the impact of foreign currency translation movements.
 Trading and investment securities decreased $19.1 billion (-14%) primarily driven by lower liquid assets in Markets due to portfolio rebalancing
activities in the September 2021 half.
 Derivative financial assets and liabilities decreased $59.5 billion (-57%) and $55.1 billion (-54%) respectively driven by a reduction following a
change made in the September 2021 half in legal arrangements for the settlement of derivative transactions with a central clearing counterparty
(reduction of $55.1 billion in derivative assets and $55.2 billion in derivative liabilities at the date of the change).
 Net loans and advances increased $37.0 billion (+6%) driven by higher lending volumes in the Institutional division (+$27.0 billion), an increase
in the New Zealand division (+$7.6 billion) reflecting home loan growth, an increase in long-dated reverse repurchase agreements (+$2.6 billion)
in Group Treasury and the impact of foreign currency translation movements. This was partially offset by a decrease in the Australia Retail and
Commercial division (-$2.1 billion) driven by home loan contraction.
 Deposits and other borrowings increased $73.7 billion (+10%) driven by increases in customer deposits across the Australia Retail and
Commercial (+$22.1 billion), Institutional (+$19.2 billion) and New Zealand (+$5.7 billion) divisions, increases in deposits from banks and
repurchase agreements (+$11.4 billion), drawdowns of the RBA Term Funding Facility (TFF) and the RBNZ’s Funding for Lending Programme
(FLP) and Term Lending Facility (TLF) (+9.8 billion) and commercial paper (+$5.7 billion), and the impact of foreign currency translation
movements. This was partially offset by decreases in certificates of deposit (-$3.1 billion).
 Debt issuances decreased $20.4 billion (-19%) driven by the redemption of ANZ CN1 and ANZ CN2. This was partially offset by the issuance of
ANZ CN6 and ANZ CN7 and the drawdown of the TFF, classified in Deposits and other borrowings.
 March 2022 v September 2021
 Cash / Settlement balances owed to ANZ / Collateral paid increased $18.0 billion (+11%) driven by increases in balances with central banks and
overnight inter-bank deposits, partially offset by the impact of foreign currency translation movements.
 Trading and investment securities decreased $8.6 billion (-7%) primarily driven by lower liquid assets in Markets and the impact of foreign
currency translation movements.
 Derivative financial assets and liabilities increased $6.5 billion (+17%) and $11.8 billion (+33%) driven by the impact of market rate movements.
 Net loans and advances increased $21.7 billion (+3%) driven by higher lending volumes in the Institutional division (+$19.6 billion), an increase
in the New Zealand division (+$4.6 billion) reflecting home loan growth, an increase in long-dated reverse repurchase agreements (+$3.0 billion)
in Group Treasury, and loan growth in the Australia Retail and Commercial division (+0.9 billion), partially offset by the impact of foreign currency
translation movements.
 Deposits and other borrowings increased $37.2 billion (+5%) driven by increases in customer deposits across the Australia Retail and
Commercial (+$10.9 billion), Institutional (+$10.5 billion) and New Zealand (+$5.0 billion) divisions, increases in deposits from banks and
repurchase agreements (+$15.9 billion) and commercial paper (+$6.3 billion), partially offset by the impact of foreign currency translation
movements.
 Debt issuances decreased $13.9 billion (-14%) driven by the redemption of ANZ CN2 partially replaced by the issuance of ANZ CN7 and the
drawdown of the TFF, classified in Deposits and other borrowings.

GROUP RESULTS


40
Liquidity Risk - including discontinued operations
Liquidity risk is the risk that the Group is unable to meet its payment obligations as they fall due, including repaying depositors or maturing wholesale
debt, or that the Group has insufficient capacity to fund increases in assets. The timing mismatch of cash flows and the related liquidity risk is inherent in
all banking operations and is closely monitored by the Group and managed in accordance with the risk appetite set by the Board.
The Group’s approach to liquidity risk management incorporates two key components:
 Scenario modelling of funding sources
ANZ’s liquidity risk appetite is defined by the ability to meet a range of regulatory requirements and internal liquidity metrics mandated by the Board.
The metrics cover a range of scenarios of varying duration and level of severity. The objective of this framework is to:
 Provide protection against shorter term extreme market dislocation and stress.
 Maintain structural strength in the balance sheet by ensuring that an appropriate amount of longer-term assets are funded with longer-term
funding.
 Ensure that no undue timing concentrations exist in the Group’s funding profile.
A key component of this framework is the Liquidity Coverage Ratio (LCR), which is a severe short term liquidity stress scenario mandated by banking
regulators globally, including APRA. As part of meeting LCR requirements, ANZ has a Committed Liquidity Facility (CLF) with the Reserve Bank of
Australia (RBA). The CLF was established to offset the shortage of available High Quality Liquid Assets (HQLA) in Australia and provides an
alternative form of contingent liquidity. The CLF is collateralised by assets, including internal residential mortgage backed securities, that are eligible
to be pledged as security with the RBA. The total amount of the CLF available to a qualifying Authorised Deposit-taking Institution (ADI) is set
annually by APRA. In September 2021, APRA wrote to ADIs to advise that APRA and the RBA consider there to be sufficient HQLA for ADIs to meet
their LCR requirements, and therefore the use of the CLF should no longer be required beyond 2022.
From 1 January 2022, ANZ’s CLF is $8.0 billion (2021 calendar year end: $10.7 billion). Consistent with APRA’s requirement, ANZ’s CLF will reduce
by $2.7 billion on 1 May 2022, 1 September 2022 and 1 January 2023. This reduction will be managed as part of ANZ’s funding plans over this
period.
 Liquid assets
The Group holds a portfolio of high quality unencumbered liquid assets in order to protect the Group’s liquidity position in a severely stressed
environment, as well as to meet regulatory requirements. High Quality Liquid Assets comprise three categories, with the definitions consistent with
Basel 3 LCR:
 Highest-quality liquid assets (HQLA1): Cash, highest credit quality government, central bank or public sector securities eligible for repurchase
with central banks to provide same-day liquidity.
 High-quality liquid assets (HQLA2): High credit quality government, central bank or public sector securities, high quality corporate debt securities
and high quality covered bonds eligible for repurchase with central banks to provide same-day liquidity.
 Alternative liquid assets (ALA): Assets qualifying as collateral for the CLF and other eligible securities listed by the RBNZ.
In March 2020, in response to the economic impact of COVID-19, the RBA established a Term Funding Facility (TFF). Under the TFF, the RBA has
offered three-year funding to ADIs secured by RBA eligible collateral. ADIs can include the undrawn but available TFF as a liquid asset for the LCR,
representing a committed central bank facility that can be drawn at the ADI’s discretion. As at 1 July 2021, ANZ’s available TFF has been fully drawn.
Prior to the drawdown, the undrawn but available TFF was represented below by the assets that are eligible to be pledged as security with the RBA.
In November 2020, in response to the economic impact of COVID-19, the RBNZ implemented a Funding for Lending Programme (FLP). Under the
FLP the RBNZ offered three-year funding to eligible counterparties secured by approved eligible collateral. APRA has advised that the undrawn but
available FLP can be included as a cash inflow for the LCR, which reduces net cash outflows. As the Level 2 LCR excludes liquid assets held above
the NZ dollar LCR of 100%, the impact of the undrawn but available FLP reduces net cash outflows and Level 2 liquid assets by the same amount.
The Group monitors and manages the size and composition of its liquid assets portfolio on an ongoing basis in line with regulatory requirements and
the risk appetite set by the Board.

Half Year Average

Movement

Mar 22
$B
Sep 21
$B
Mar 21
$B

Mar 22
v. Sep 21
Mar 22
v. Mar 21
Market Values Post Discount
1


HQLA1 224.1 211.5 186.2

6% 20%
HQLA2
7.6 8.5 10.4

-11% -27%
Internal Residential Mortgage Backed Securities
2
3.2 3.3 18.5

-3% -83%
Other ALA
2
6.2 5.5 7.9

13% -22%
Total liquid assets
241.1 228.8 223.0 5% 8%


Cash flows modelled under stress scenario

Cash outflows 230.3 208.1 203.2 11% 13%
Cash inflows
47.2 39.3 41.3 20% 14%
Net cash outflows
183.1 168.8 161.9 8% 13%
Liquidity Coverage Ratio
3
132% 136% 138% -4% -6%
1.
Half year average basis, calculated as prescribed per APRA Prudential Regulatory Standard (APS 210 Liquidity) and consistent with APS 330 requirements.
2.
Comprised of assets qualifying as collateral for the CLF and TFF up to approved facility limit; and any liquid assets as defined in the RBNZ's Liquidity Policy - Annex: Liquidity Assets -
Prudential Supervision Department Document BS13A12.
3.
All currency Level 2 LCR.