Chairman’s Message 1H22

Australia and New Zealand Banking Group Limited ABN 11 005 357 522


30 June 2022

Market Announcements Office
ASX Limited
Level 4
20 Bridge Street
SYDNEY NSW 2000






Chairman’s Message 1H22


The attached Chairman’s Message for 1H22 is being made available to ANZ shareholders
in conjunction with the despatch of the 2022 Interim Dividend Statements. It has been
approved for distribution by ANZ’s Company Secretary.

Yours faithfully




Simon Pordage
Company Secretary
Australia and New Zealand Banking Group Limited









Corporate Governance
ANZ Centre Melbourne, Level 9, 833 Collins Street, Docklands Vic 3008
GPO Box 254, MELBOURNE VIC 3001 AUSTRALIA
www.anz.com

Looking at the performance of the Group, the Board was
pleased with the progress we have made in the continuing
transformation of ANZ.
In Australia, we passed an important milestone in the
technology transformation of the retail bank called
ANZ Plus.
So far this has delivered 20 new technology platforms and
hundreds of new automated processes. Once complete it
will equip ANZ with modern cloud-based technology and
make ANZ a more agile and competitive bank. Our first
product on ANZ Plus is a ‘Savings & Transact’ proposition
to help customers better manage their financial wellbeing.
During the half we also made good progress in improving
our home loan processing times in Australia. This saw
positive balance sheet momentum and we remain on track
to grow our home loan book in line with the other major
banks by the end of our financial year.
New Zealand had an excellent half, delivering good growth
across all our product lines, with our home loan business a
particular highlight.
The Institutional bank continued to highlight the benefits
of our diversified portfolio with customer revenue again
growing. We also saw strong growth in the payments we
process on behalf of our financial institution customers,
which is a fast growing and profitable business.
From a credit quality perspective, your bank remains
in a strong position with customers, in general terms,
emerging from the last two pandemic years in good shape.
This strength was reflected in our decision to release
almost $300 million of credit provisions while our collective
provision balance of $3.8 billion is around $380 million
higher than what it was prior to the pandemic.
Non-Operating Holding Company
You may have seen reports that we intend to lodge
a formal application with the Australian Prudential
Regulation Authority (APRA) to establish a non-operating
holding company.
If this proposal proceeds, a new listed parent holding
company will be created with two wholly-owned distinct
groups of entities sitting directly beneath it.
These would include a ‘Banking Group’ which would
comprise the current Australia and New Zealand Banking
Group Limited and the majority of its present-day
subsidiaries, and a ‘Non-Banking Group’.
The ‘Non-Banking Group’ will allow ANZ to offer our
customers the best non-banking technology and services
in a more efficient way. A good example is the investments
we currently hold in 1835i, which is our external
innovation and venture capital partner.
This structure is consistent with how many banks are
structured and will provide ANZ with greater flexibility and
the potential to create additional value for shareholders
over time. Importantly, APRA will continue to regulate the
Banking Group in the same way it does today.
Right now, shareholders don’t need to do anything. If
the proposal receives regulatory approval, shareholders
will have the opportunity to vote on the proposed new
structure during our Annual General Meeting in December.
Further updates will be published on shareholder.anz.com.
Finally, I would like to acknowledge all our people
across our network. They have again done a terrific job
delivering for their customers, our shareholders and the
broader community.
Regards
PAUL O’SULLIVAN
CHAIRMA
N
283499_33_V5
2022 HALF YEAR HIGHLIGHTS
-3%No change -2%
$3,113 million
CASH PROFIT
1
(Continuing operations)
72 cents
DIVIDEND PER SHARE
111 cents
CASH EARNINGS PER ORDINARY SHARE
(Continuing operations)
2H21 $3,208 million2H21 72 cents2H21 113 cents
1
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). Refer pages 71 to 73
of the First Half 2022 Results Announcement for further details.
A message from ANZ’s Chairman
Paul O’Sullivan
I am pleased to provide an overview of ANZ’s First Half 2022 Financial Results.
ANZ reported a Statutory Profit after tax for the half year ended 31 March 2022 of
$3,530 million, up 10% on the previous half.
Cash profit (from continuing operations), which excludes non-core items included in
our statutory result, was $3,113 million. While this was up 4% on the same period in
2021, it was down 3% on the previous half.
ANZ’s Common Equity Tier 1 Ratio was strong at 11.5% and Cash Return on Equity
was 10%.
The Interim Dividend payment of 72 cents per share, fully franked, amounts to
approximately $2 billion that is being paid to you, our shareholders.