2023 Half Year Results Documents

ANZ Group Holdings Limited
ABN 16 659 510 791
Half Year
31 March 2023
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 2022 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: ANZ Group Holdings Limited
ABN 16 659 510 791



Report for the half year ended 31 March 2023



Operating Results
1



AUD million


Statutory operating income

6% to 10,139





Statutory profit attributable to shareholders of the Company

0% to 3,547





Cash profit
2


23% to 3,821














Dividends
3


Cents

Franked

per

amount

share

per share


Proposed interim dividend
4


81

100%












Record date for determining entitlements to the proposed 2023 interim dividend 16 May 2023



Payment date for the proposed 2023 interim dividend 3 July 2023


Dividend Reinvestment Plan and Bonus Option Plan

ANZ Group Holdings Limited has a Dividend Reinvestment Plan (DRP) and a Bonus Option Plan (BOP) that will operate in respect of the proposed 2023
interim dividend. For the 2023 interim dividend, ANZ intends to provide shares under the DRP through an on-market purchase and BOP through the
issue of new shares. The 'Acquisition Price' to be used in determining the number of shares to be provided under the DRP and BOP will be calculated by
reference to the arithmetic average of the daily volume weighted average sale price of all fully paid ANZ ordinary shares sold in the ordinary course of
trading on the ASX and Cboe Australia during the ten trading days commencing on 19 May 2023, 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 2023 interim dividend must be received by ANZ's Share Registrar by 5.00pm
(Australian Eastern Standard Time) on 17 May 2023. 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 19 May 2023.








1.
Unless otherwise noted, all comparisons are to the consolidated financial information for the half year ended 31 March 2022 for Australia New Zealand Banking Group Limited, which was
replaced by ANZ Group Holdings Limited as the listed entity on 3 January 2023.
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 loss adjusted from statutory profit to arrive at cash profit was $274 million. 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.

ANZ GROUP HOLDINGS LIMITED ABN 16 659 510 791


3


CONSOLIDATED FINANCIAL REPORT, DIVIDEND ANNOUNCEMENT AND APPENDIX 4D
Half year ended 31 March 2023



CONTENTS PAGE



Disclosure Summary 5
Summary 7
Group Results 19
Divisional Results 49
Profit Reconciliation 71
Condensed Consolidated Financial Statements 75
Supplementary Information 119
Definitions 131
ASX Appendix 4D - Cross Reference Index 135
Alphabetical Index 136
























This Consolidated Financial Report, Dividend Announcement and Appendix 4D (Results Announcement) has been prepared for ANZ Group Holdings
Limited (ANZGHL, Company, parent entity) and its subsidiaries (ANZ Group, ANZ, Group, the consolidated entity, us, we, or our). ANZGHL replaced
Australia and New Zealand Banking Group Limited (ANZBGL) as the listed entity on 3 January 2023 under a scheme of arrangement approved by
shareholders at the Annual General Meeting on 23 December 2022.
All amounts are in Australian dollars unless otherwise stated. The ANZ Group has a formally constituted Audit Committee of the Board of Directors. The
Condensed Consolidated Financial Statements were approved by resolution of the Board of Directors on 4 May 2023.

DISCLAIMER & IMPORTANT NOTICE:
The material in the Results Announcement contains general background information about the ANZ Group’s activities current as at 4 May 2023. 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 Group’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 Group 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 Group 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.

ANZ GROUP HOLDINGS LIMITED ABN 16 659 510 791


4
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DISCLOSURE SUMMARY


5

SUMMARY OF 2023 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/reporting/results-announcement/.

ANZ Group Holdings Limited
• 2023 Consolidated Financial Report, Dividend Announcement and Appendix 4D
• 2023 Half Year Results Investor Discussion Pack
• News Release
• Key Financial Data (available on ANZ Shareholder website only)

Australia and New Zealand Banking Group Limited
• 2023 Australia and New Zealand Banking Group Limited Consolidated Half Year Report
• 2023 March Pillar 3 Disclosure
• 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 12
Full Time Equivalent Staff 17
Other Non-Financial Information 17

SUMMARY


8
Guide to Half Year Results
ESTABLISHMENT OF A NEW GROUP ORGANISATIONAL STRUCTURE
On 3 January 2023, Australia and New Zealand Banking Group Limited (ANZBGL) established by a scheme of arrangement, a non-operating holding
company, ANZ Group Holdings Limited (ANZGHL), as the new listed parent holding company of the ANZ Group and implemented a restructure to
separate ANZ’s banking and certain non-banking businesses into the ANZ Bank Group and ANZ Non-Bank Group (Restructure). The ANZ Bank Group
comprises the majority of the businesses and subsidiaries that were held in ANZBGL prior to the Restructure. The ANZ Non-Bank Group comprises
banking-adjacent businesses developed or acquired by the ANZ Group to focus on bringing new technology and banking-adjacent services to the ANZ
Group’s customers, and a separate service company.
This Results Announcement has been prepared for the ANZ Group Holdings Limited consolidated group and reflects a continuation of the ANZ Group
prior to the Restructure. Refer to Establishment of a New Group Organisational Structure section in Supplementary Information for further details.
A copy of the Australia and New Zealand Banking Group Limited Consolidated Half Year Report is 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/reporting/results-announcement/.
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 and
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 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
There are no discontinued operations in the current period.
Profit/(Loss) from discontinued operations in the comparative periods relates to immaterial residual operational costs from divested wealth businesses
and partial recovery of certain costs based on Transition Service Agreements, which ceased in April 2022.
DIVISIONAL PERFORMANCE
The presentation of divisional results has been impacted by the following structural changes during the period. Prior period comparatives have been
restated:
• Business Restructure - the non-banking businesses held in the Australia Commercial and Institutional divisions were transferred to the Group Centre
division. As a result of this transfer, Group Centre division holds all interests in the ANZ Non-Bank Group.
• Corporate customer re-segmentation - certain business and property finance customers were transferred from the New Zealand division to the
Institutional division to better align customer needs with the right support and expertise delivery.
• Cost reallocations - certain costs were reallocated across the Australia Retail, Australia Commercial, Institutional and Group Centre divisions.
Other than those described above, there have been no other significant changes. The divisions reported are consistent with internal reporting provided to
the chief operating decision maker, being the Chief Executive Officer.

SUMMARY


9
Statutory Profit Results






Half Year

Movement


Mar 23
$M
Sep 22
$M
Mar 22
$M

Mar 23
v. Sep 22
Mar 23
v. Mar 22
Net interest income

8,503 7,774 7,100

9% 20%
Other operating income

1,636 2,110 2,442

-22% -33%
Operating income

10,139 9,884 9,542

3% 6%
Operating expenses

(4,997) (4,788) (4,791)

4% 4%
Profit before credit impairment and income tax

5,142 5,096 4,751

1% 8%
Credit impairment (charge)/release

(133) (52) 284

large large
Profit before income tax

5,009 5,044 5,035

-1% -1%
Income tax expense and non-controlling interests

(1,462) (1,441) (1,500)

1% -3%
Profit attributable to shareholders of the Company from continuing operations

3,547 3,603 3,535

-2% 0%
Profit/(Loss) from discontinued operations

- (14) (5)

large large
Profit attributable to shareholders of the Company

3,547 3,589 3,530

-1% 0%

Earnings Per Ordinary Share (cents)

Half Year

Movement

Reference
Page
Mar 23 Sep 22 Mar 22

Mar 23
v. Sep 22
Mar 23
v. Mar 22
Basic
92
118.5 125.4 124.6

-6% -5%
Diluted 92
112.8 117.5 116.7 -4% -3%



Half Year


Reference
Page
Mar 23 Sep 22 Mar 22
Ordinary Share Dividends (cents)


Interim
1
81 - 72
Final
1
- 74 -
Total 91
81 74 72
Ordinary share dividend payout ratio
2
91 68.6% 61.7% 57.0%
Profitability Ratios

Return on average ordinary shareholders' equity
3
10.6% 11.4% 11.3%
Return on average assets
0.64% 0.67% 0.70%
Net interest margin
1.75% 1.68% 1.58%
Net interest income to average credit RWAs
4.77% 4.39% 4.10%
Efficiency Ratios

Operating expenses to operating income 49.3% 48.8% 50.5%
Operating expenses to average assets
0.90% 0.91% 0.96%
Credit Impairment Charge/(Release)

Individually assessed credit impairment charge/(release) ($M) (30) (8) 87
Collectively assessed credit impairment charge/(release) ($M)
163 60 (371)
Total credit impairment charge/(release) ($M) 98
133 52 (284)
Individually assessed credit impairment charge as a % of average gross loans and advances
4
(0.01%) 0.00% 0.03%
Total credit impairment charge/(release) as a % of average gross loans and advances
4
0.04% 0.02% (0.09%)
1.
Fully franked for Australian tax purposes (30% tax rate) and carry New Zealand imputation credits of NZD 9 cents for the proposed 2023 interim dividend (2022 final dividend: NZD 9 cents;
2022 interim dividend: NZD 9 cents).
2.
Dividend payout ratio for the March 2023 half is calculated using the proposed 2023 interim dividend of $2,433 million, based on the forecast number of ordinary shares on issue at the
dividend record date. Dividend payout ratios for the September 2022 half and the March 2022 half were calculated using actual dividends of $2,213 million and $2,012 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 23
$M
Sep 22
$M
Mar 22
$M

Mar 23
v. Sep 22
Mar 23
v. Mar 22
Net interest income

8,503 7,774 7,100

9% 20%
Other operating income

2,025 1,825 1,848

11% 10%
Operating income

10,528 9,599 8,948

10% 18%
Operating expenses

(4,997) (4,788) (4,791)

4% 4%
Cash profit before credit impairment and income tax

5,531 4,811 4,157

15% 33%
Credit impairment (charge)/release

(133) (52) 284

large large
Cash profit before income tax

5,398 4,759 4,441

13% 22%
Income tax expense and non-controlling interests

(1,577) (1,357) (1,328)

16% 19%
Cash profit from continuing operations

3,821 3,402 3,113

12% 23%
Cash profit/(loss) from discontinued operations

- (14) (5)

large large
Cash profit

3,821 3,388 3,108

13% 23%

Earnings Per Ordinary Share (cents) Half Year

Movement

Mar 23 Sep 22 Mar 22

Mar 23
v. Sep 22
Mar 23
v. Mar 22
Basic 127.6 118.4 109.7 8% 16%
Basic - continuing operations
127.6 118.8 109.9 7% 16%
Diluted
121.1 111.1 103.1 9% 17%


Weighted Average Number of Ordinary Shares (M)
Basic
2,994.1 2,862.5 2,832.9 5% 6%
Diluted
3,278.3 3,145.5 3,103.8 4% 6%
Cash Profit Used in Calculating Earnings Per Ordinary Share ($M)

Basic
3,821 3,388 3,108 13% 23%
Diluted
3,971 3,495 3,200 14% 24%


Half Year

Reference
Page
Mar 23 Sep 22 Mar 22
Ordinary Share Dividends
Ordinary share dividend payout ratio
2


63.7% 65.3% 64.7%
Profitability Ratios

Return on average ordinary shareholders' equity
3


11.4% 10.7% 10.0%
Return on average assets


0.69% 0.64% 0.62%
Return on average RWA


1.7% 1.5% 1.5%
Net interest margin
1.75% 1.68% 1.58%
Net interest income to average credit RWAs
4.77% 4.39% 4.10%
Efficiency Ratios

Operating expenses to operating income
4


47.5% 50.3% 53.9%
Operating expenses to average assets
5
0.90% 0.91% 0.96%
Credit Impairment Charge/(Release)


Individually assessed credit impairment charge/(release) ($M)

(30) (8) 87
Collectively assessed credit impairment charge/(release) ($M)
163 60 (371)
Total credit impairment charge/(release) ($M)

29 133 52 (284)
Individually assessed credit impairment charge as a % of average gross loans and advances
6
(0.01%) 0.00% 0.03%
Total credit impairment charge/(release) as a % of average gross loans and advances
6
0.04% 0.02% (0.09%)
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.
2.
Dividend payout ratio for the March 2023 half is calculated using the proposed 2023 interim dividend of $2,433 million, based on the forecast number of ordinary shares on issue at the
dividend record date. Dividend payout ratios for the September 2022 half and the March 2022 half were calculated using actual dividends of $2,213 million and $2,012 million respectively.
3.
Average ordinary shareholders’ equity excludes non-controlling interests. Return on average shareholders’ equity - continuing operations for the March 2023 half was 11.4% (Sep 22 half:
10.8%; Mar 22 half: 10.0%).
4.
Operating expenses to operating income - continuing operations for the March 2023 half was 47.5% (Sep 22 half: 49.9%; Mar 22 half: 53.5%).
5.
Operating expenses to average assets - continuing operations for the March 2023 half was 0.90% (Sep 22 half: 0.90%; Mar 22 half: 0.95%).
6.
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 23 Sep 22 Mar 22
Mar 23
v. Sep 22
Mar 23
v. Mar 22
Capital Management (Level 2)
1



Common Equity Tier 1

- APRA 44
13.2% 12.3% 11.5%
- Internationally Comparable
2
44 18.9% 19.2% 18.0%
Credit risk weighted assets ($B) 45
345.3 359.4 348.8 -4% -1%
Total risk weighted assets ($B) 45
435.5 454.7 437.9 -4% -1%
APRA Leverage Ratio 47
5.3% 5.4% 5.2%
Balance Sheet: Key Items




Gross loans and advances ($B) 693.7 676.0 655.0 3% 6%
Net loans and advances ($B)
690.1 672.4 651.4 3% 6%
Total assets ($B)
1,111.2 1,085.6 1,017.4 2% 9%
Customer deposits ($B)
648.6 620.4 611.1 5% 6%
Total equity ($B)
69.6 66.4 61.8 5% 13%


Half Year Movement
Balance Sheet: Average Balances
Mar 23
$B
Sep 22
$B
Mar 22
$B
Mar 23
v. Sep 22
Mar 23
v. Mar 22
Average gross loans and advances 693.5 661.0 647.0 5% 7%
Average customer deposits
637.8 620.2 609.5 3% 5%
Average assets

1,112.3 1,062.0 1,009.8 5% 10%
Average ordinary shareholders' equity
3


67.1 62.9 62.5 7% 7%
Average RWA

451.9 445.5 427.3 1% 6%
Average credit RWA

357.3 353.5 347.3 1% 3%
Average interest earning assets
973.0 920.3 899.7 6% 8%
Average deposits and other borrowings
826.2 792.6 768.1 4% 8%

As at Movement
Liquidity Risk
Reference
Page
Mar 23 Sep 22 Mar 22
Mar 23
v. Sep 22
Mar 23
v. Mar 22
Liquidity Coverage Ratio
4
41 128% 129% 132% -1% -4%
Net Stable Funding Ratio 42
119% 119% 123% 0% -4%

As at Movement
Impaired Assets
Reference
Page
Mar 23 Sep 22 Mar 22
Mar 23
v. Sep 22
Mar 23
v. Mar 22
Gross impaired assets ($M) 33 1,210 1,445 1,709 -16% -29%
Gross impaired assets as a % of gross loans and advances
0.17% 0.21% 0.26%
Net impaired assets ($M) 33
789 903 1,073 -13% -26%
Net impaired assets as a % of shareholders' equity
1.1% 1.4% 1.7%
Individually assessed provision ($M) 31 421 542 636 -22% -34%
Individually assessed provision as a % of gross impaired assets
34.8% 37.5% 37.2%
Collectively assessed provision ($M) 31
4,040 3,853 3,757 5% 8%
Collectively assessed provision as a % of credit risk weighted assets
1.17% 1.07% 1.08%
Net Tangible Assets
Net tangible assets attributable to ordinary shareholders ($B)
5
65.0 62.0 57.7 5% 13%
Net tangible assets per ordinary share ($)
21.66 20.75 20.64 4% 5%
1.
March 2023 includes impacts on risk weighted assets from APRA Capital Reform. Refer to APRA Capital Reform section on page 44 for further details.
2.
Refer to page 46 for further details regarding the differences between APRA and Internationally Comparable standards.
3.
Average ordinary shareholders’ equity excludes non-controlling interests.
4.
Liquidity Coverage Ratio is calculated on a half year average basis.
5.
Equals total shareholders’ equity less total non-controlling interests, goodwill and other intangible assets.

SUMMARY


12
Large/Notable Items
Large/notable items included in cash profit are described below.
Business divestments/closures
There were no material divestment/closures during the March 2023 half. The financial impacts from divestments/closures in prior periods and the
business results for these divestments are summarised below.


Gain/(Loss) from
divestments/closures
Completed divested business
results

Total
Half Year Half Year

Half Year
Cash Profit Impact
Mar 23
$M
Sep 22
$M
Mar 22
$M
Mar 23
$M
Sep 22
$M
Mar 22
$M

Mar 23
$M
Sep 22
$M
Mar 22
$M
ANZ Worldline partnership - - 307 - - 60

- - 367
Financial planning and advice business
- - (69) - 2 3

- 2 (66)
Legal entity rationalisation
- - (65) - - -

- - (65)
Other business divestments/closures
- (8) (5) - - -

- (8) (5)
Cash profit/(loss) before income tax
- (8) 168 - 2 63

- (6) 231
Income tax benefit/(expense) and non-
controlling interests
- - 37 - - (19)

- - 18
Cash profit/(loss)
- (8) 205 - 2 44

- (6) 249
• ANZ Worldline partnership
The Group announced in December 2020 that it had entered into a partnership with Worldline SA (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. During
the March 2022 half, the transaction completed and the Group recognised a $307 million gain in Other operating income and a $28 million income
tax benefit in the Australia Commercial division. The divested business results were recognised across the Australia Commercial and Institutional
divisions.
• 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 Commercial
division. The transaction completed in the September 2022 half and the divested business results were recognised in the Australia Commercial
division.
• Legal entity rationalisation
During the March 2022 half, in order to simplify the Group’s legal entity structure, the businesses 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 business divestments/closures
During the March 2022 half, the Group announced the planned closure of the ANZ American Territories (ANZ American Samoa and ANZ Guam). A
loss of $18 million, comprising restructuring expenses of $12 million and a credit impairment charge of $6 million, was recognised in the Pacific
division during the period. During the September 2022 half, a further $8 million loss was recognised, comprising a $7 million loss in Other operating
income and restructuring expenses of $1 million.
During the March 2022 half, the Group also 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.
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 23 Sep 22 Mar 22
Cash Profit Impact
$M $M $M
Operating income
(17) (9) (25)
Operating expenses
(43) (42) (148)
Cash profit/(loss) before income tax
(60) (51) (173)
Income tax benefit/(expense) and non-controlling interests 18 8 50
Cash profit/(loss)
(42) (43) (123)

SUMMARY


13
Restructuring
In addition to the restructuring expenses associated with business divestments/closures in prior periods, the Group recognised restructuring expenses of
$38 million after tax in the March 2023 half year relating to operational changes predominantly in the Australia Retail and Group Centre divisions
(Sep 22 half: $37 million; Mar 22 half: $31 million).
Transaction related costs
During the March 2023 half, the Group incurred transaction related costs of $44 million (Sep 22 half: $10 million; Mar 22 half: nil) after tax associated with
establishing the new group organisational structure and the pending Suncorp Bank acquisition.
Property rationalisation
During the March 2023 half, the Group entered into sale and leaseback contracts for the data centres in Australia to align with its long term strategy of
simplifying its technology environment and migrating on-premise applications to cloud-based solutions. As a result of this, the Group recognised
$37 million loss after tax on reclassification of these data centres to held for sale.
During the September 2022 half, the Group early terminated the head lease on the 55 Collins Street Melbourne building resulting in a net loss after tax of
$17 million. The loss comprised a $31 million gain in Other operating income on lease modification arising from remeasurement of the lease liability and
right-of-use asset net of a $8 million lease termination payment, a $47 million loss in Operating expenses associated with lease exit costs including
accelerated depreciation and asset write-offs, and an income tax benefit of $7 million.
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 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.

SUMMARY
14
Large/Notable items




Cash Profit Results
March 2023 Half Year v. March 2022 Ha
lf Year
March 2023 Half Year v. September 2022 Half Year

Mar 23
Large/
notables
Mar 23
ex. Large/
notables Mar 22
Large/
notables
Mar 22
ex. Large/
notables
Movt
ex. Large/
notables
Mar 23
Large/
notables
Mar 23
ex. Large/
notables Sep 22
Large/
notables
Sep 22
ex. Large/
notables
Movt
ex. Large/
notables

$M
$M
$M $M $M $M %
$M
$M
$M $M $M $M %
Net interest income
8,503
(10)
8,513
7,100 (3) 7,103 20%
8,503
(10)
8,513
7,774 3 7,771 10%
Other operating income
2,025
(50)
2,075
1,848 272 1,576 32%
2,025
(50)
2,075
1,825 15 1,810 15%
Operating income
10,528
(60)
10,588
8,948 269 8,679 22%
10,528
(60)
10,588
9,599 18 9,581 11%
Operating expenses
(4,997)
(153)
(4,844)
(4,791) (247) (4,544) 7%
(4,997)
(153)
(4,844)
(4,788) (162) (4,626) 5%
Cash profit before credit impairment and income tax
5,531
(213)
5,744
4,157 22 4,135 39%
5,531
(213)
5,744
4,811 (144) 4,955 16%
Credit impairment (charge)/release
(133)
-
(133)
284 (4) 288 large
(133)
-
(133)
(52) - (52) large
Cash profit/(loss) before income tax
5,398
(213)
5,611
4,441 18 4,423 27%
5,398
(213)
5,611
4,759 (144) 4,903 14%
Income tax benefit/(expense) and non-controlling interests
(1,577)
52
(1,629)
(1,328) (59) (1,269) 28%
(1,577)
52
(1,629)
(1,357) 31 (1,388) 17%
Cash profit/(loss)
3,821
(161)
3,982
3,113 (41) 3,154 26%
3,821
(161)
3,982
3,402 (113) 3,515 13%

Cash Profit/(Loss) By Division
March 2023 Half Year v. March 2022
Half Year

March 2023 Half Year v. September 2022 Half Year

Mar 23
Large/
notables
Mar 23
ex. Large/
notables Mar 22
Large/
notables
Mar 22
ex. Large/
notables
Movt
ex. Large/
notables
Mar 23
Large/
notables
Mar 23
ex. Large/
notables Sep 22
Large/
notables
Sep 22
ex. Large/
notables
Movt
ex. Large/
notables

$M
$M
$M $M $M $M %
$M
$M
$M $M $M $M %
Australia Retail
1,026
(55)
1,081
937 (131) 1,068 1%
1,026
(55)
1,081
1,072 (52) 1,124 -4%
Australia Commercial
739
(4)
743
883 314 569 31%
739
(4)
743
668 8 660 13%
Institutional
1,597
(5)
1,602
809 (140) 949 69%
1,597
(5)
1,602
1,128 (2) 1,130 42%
New Zealand
774
(5)
779
704 (4) 708 10%
774
(5)
779
745 14 731 7%
Pacific
34
(2)
36
(6) (18) 12 large
34
(2)
36
15 (9) 24 50%
Group Centre
(349)
(90)
(259)
(214) (62) (152) 70%
(349)
(90)
(259)
(226) (72) (154) 68%
Cash profit/(loss)
3,821
(161)
3,982
3,113 (41) 3,154 26%
3,821
(161)
3,982
3,402 (113) 3,515 13%

SUMMARY
15
Large/Notable items
The Group has recognised some large/notable items within cash profit. These items are shown in the tables below.




March 2023 Half Year

March 2022 Half Year

Large/notable items included in continuing cash profit

Large/notable items included in continuing cash profit

Customer
remediation
$M
Restructuring
$M
Transaction
related costs
$M
Property
rationalisation
$M
Total
$M
Business
divestments/
closures
$M
Customer
remediation
$M
Restructuring
1

$M
Litigation
settlements
$M
Withholding
tax
$M
Total
$M
Cash Profit
Net interest income
(10)
-
-
-
(10)
- (3) - -
-
(3)
Other operating income
(7)
-
-
(43)
(50)
294 (22) - -
-
272
Operating income
(17)
-
-
(43)
(60)
294 (25) - -
-
269
Operating expenses
(43)
(54)
(56)
-
(153)
(59) (148) (30) (10)
-
(247)
Cash profit before credit impairment and income tax
(60)
(54)
(56)
(43)
(213)
235 (173) (30) (10)
-
22
Credit impairment (charge)/release
-
-
-
-
-
(4) - - -
-
(4)
Cash profit before income tax
(60)
(54)
(56)
(43)
(213)
231 (173) (30) (10)
-
18
Income tax benefit/(expense) and non-controlling interests
18
16
12
6
52
18 50 (1) - (126)
(59)
Cash profit/(loss)
(42)
(38)
(44)
(37)
(161)
249 (123) (31) (10) (126)
(41)

March 2023 Half Year

September 2022 Half Year

Large/notable items included in continuing cash profit

Large/notable items included in continuing cash profit

Customer
remediation
$M
Restructuring
$M
Transaction
related costs
$M
Property
rationalisation
$M
Total
$M
Business
divestments/
closures
$M
Customer
remediation
$M
Restructuring
1

$M
Transaction
related costs
$M
Property
rationalisation
$M
Total
$M
Cash Profit

Net interest income
(10)
-
-
-
(10)
- 3 - -
-
3
Other operating income
(7)
-
-
(43)
(50)
4 (12) - -
23
15
Operating income
(17)
-
-
(43)
(60)
4 (9) - - 23
18
Operating expenses
(43)
(54)
(56)
-
(153)
(10) (42) (51) (12) (47)
(162)
Cash profit before credit impairment and income tax
(60)
(54)
(56)
(43)
(213)
(6) (51) (51) (12) (24)
(144)
Credit impairment (charge)/release
-
-
-
-
-
- - - - -
-
Cash profit before income tax
(60)
(54)
(56)
(43)
(213)
(6) (51) (51) (12) (24)
(144)
Income tax benefit/(expense) and non-controlling interests
18
16
12
6
52
- 8 14 2 7
31
Cash profit/(loss)
(42)
(38)
(44)
(37)
(161)
(6) (43) (37) (10) (17)
(113)
1.
Restructuring expense before tax of $51 million for the Septem
ber 2022 half and $30 million for the March 2022 half do not inc
lude restructuring expenses incurred as part of the business di
vestments/closures of $1 million for the September 2022 half and
$19 million for the March 2022 half.

SUMMARY
16
Large/Notable items
The Group has reco
g
nised some lar
g
e/notable items within cash profit. The impact of these items on the divisional results are shown in the tables below.



March 2023 Half Year

March 2022 Half Year

Large/notable items included in continuing cash profit

Large/notable items included in continuing cash profit

Customer
remediation
$M
Restructuring
$M
Transaction
related costs
$M
Property
rationalisation
$M
Total
$M
Business
divestments/
closures
$M
Customer
remediation
$M
Restructuring
1

$M
Litigation
settlements
$M
Withholding
tax
$M
Total
$M
Cash profit before income tax
Australia Retail
(52)
(27)
-
-
(79)
(3) (166) (13)
-
-
(182)
Australia Commercial
(4)
(2)
-
-
(6)
297 (1) (1) -
-
295
Institutional
-
(7)
-
-
(7)
7 (6) (4) (10)
-
(13)
New Zealand
(1)
(6)
-
-
(7)
- - (6) - -
(6)
Pacific
(3)
-
-
-
(3)
(18) - - -
-
(18)
Group Centre
-
(12)
(56)
(43)
(111)
(52) - (6) -
-
(58)
Cash profit before income tax
(60)
(54)
(56)
(43)
(213)
231 (173) (30) (10)
-
18
Income tax benefit/(expense) and non-controlling interests
18
16
12
6
52
18 50 (1) - (126)
(59)
Cash profit/(loss)
(42)
(38)
(44)
(37)
(161)
249 (123) (31) (10) (126)
(41)

March 2023 Half Year

September 2022 Half Year

Large/notable items included in continuing cash profit

Large/notable items included in continuing cash profit

Customer
remediation
$M
Restructuring
$M
Transaction
related costs
$M
Property
rationalisation
$M
Total
$M
Business
divestments/
closures
$M
Customer
remediation
$M
Restructuring
1

$M
Transaction
related costs
$M
Property
rationalisation
$M
Total
$M
Cash profit before income tax
Australia Retail
(52)
(27)
-
-
(79)
- (53) (19) -
-
(72)
Australia Commercial
(4)
(2)
-
-
(6)
1 6 3 -
-
10
Institutional
-
(7)
-
-
(7)
1 8 (17) -
-
(8)
New Zealand
(1)
(6)
-
-
(7)
- 25 (6) -
-
19
Pacific
(3)
-
-
-
(3)
(8) (1) - -
-
(9)
Group Centre
-
(12)
(56)
(43)
(111)
- (36) (12) (12) (24)
(84)
Cash profit before income tax
(60)
(54)
(56)
(43)
(213)
(6) (51) (51) (12) (24)
(144)
Income tax benefit/(expense) and non-controlling interests
18
16
12
6
52
- 8 14 2 7
31
Cash profit/(loss)
(42)
(38)
(44)
(37)
(161)
(6) (43) (37) (10) (17)
(113)
1.
Restructuring expense before tax of $51 million for the Septem
ber 2022 half and $30 million for the March 2022 half do not inc
lude restructuring expenses incurred as part of the business di
vestments/closures of $1 million for the September 2022 half and
$19 million for the March 2022 half.

SUMMARY


17
Full Time Equivalent Staff
1
As at 31 March 2023, ANZ employed 39,802 staff (Sep 22: 39,381; Mar 22: 40,169) on a full time equivalent (FTE) basis.

Division

As at

Movement

Mar 23 Sep 22 Mar 22
Mar 23
v. Sep 22
Mar 23
v. Mar 22
Australia Retail 11,199 11,107 11,475 1% -2%
Australia Commercial
3,607 3,551 3,528 2% 2%
Institutional
6,353 6,316 6,323 1% 0%
New Zealand
6,785 6,793 6,939 0% -2%
Pacific
1,037 1,086 1,092 -5% -5%
Group Centre
10,821 10,319 10,329 5% 5%
Total FTE from continuing operations
39,802 39,172 39,686 2% 0%
Discontinued operations - 209 483 large large
Total FTE including discontinued operations
39,802 39,381 40,169 1% -1%
Average FTE from continuing operations 39,589 39,254 40,092 1% -1%
Average FTE including discontinued operations
39,589 39,627 40,601 0% -2%

Geography
As at

Movement

Mar 23 Sep 22 Mar 22
Mar 23
v. Sep 22
Mar 23
v. Mar 22
Australia 19,575 19,396 19,807 1% -1%
Rest of World
12,975 12,705 12,931 2% 0%
New Zealand
7,252 7,280 7,431 0% -2%
Total FTE
39,802 39,381 40,169 1% -1%
1.
Comparative information has been restated to include FTE of the consolidated investments managed by 1835i Group Pty Ltd in the Group Centre division (FTE: Sep 22: 185; Mar 22: 157;
Average FTE: Sep 22 half: 172; Mar 22 half: 79).


Other Non-Financial Information


Half Year

Movement
Shareholder value - ordinary shares

Mar 23 Sep 22 Mar 22

Mar 23
v. Sep 22
Mar 23
v. Mar 22
Share price ($)
- high
26.08 28.25 28.98 -8% -10%
- low
22.39 20.95 24.65 7% -9%
- closing

22.93 22.80 27.60 1% -17%
Closing market capitalisation of ordinary shares ($B)
68.9 68.2 77.1 1% -11%
Total shareholder returns (TSR)
3.6% -14.4% 0.5% large large



As at Mar 23
ANZBGL Credit ratings

Short-
Term
Long-
Term Outlook
Moody's Investors Service P-1 Aa3 Stable
S&P Global Ratings 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 21
Cash Other Operating Income 23
Cash Operating Expenses 26
Software Capitalisation 28
Credit Risk 29
Cash Income Tax Expense 35
Impact of Foreign Currency Translation 36
Earnings Related Hedges 38
Cash Earnings Per Share 38
Dividends 39
Economic Profit 39
Condensed Balance Sheet 40
Liquidity Risk 41
Funding 42
Capital Management 43
Leverage Ratio 47
Capital Management - Other Developments 48

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
IFRS. The Group provides additional measures of performance in the Consolidated Financial Report and 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 134 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 23
$M
Sep 22
$M
Mar 22
$M
Mar 23
v. Sep 22
Mar 23
v. Mar 22
Statutory profit attributable to shareholders of the Company from
continuing operations

3,547 3,603 3,535 -2% 0%


Adjustments between statutory profit and cash profit
1

Economic hedges

190 (196) (373) large large
Revenue and expense hedges

84 (5) (49) large large
Total adjustments between statutory profit and cash profit
274 (201) (422) large large
Cash profit from continuing operations 3,821 3,402 3,113 12% 23%
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 23
$M
Sep 22
$M
Mar 22
$M

Mar 23
v. Sep 22
Mar 23
v. Mar 22
Net interest income 8,503 7,774 7,100 9% 20%
Other operating income
2,025 1,825 1,848 11% 10%
Operating income
10,528 9,599 8,948 10% 18%
Operating expenses (4,997) (4,788) (4,791) 4% 4%
Cash profit before credit impairment and income tax
5,531 4,811 4,157 15% 33%
Credit impairment (charge)/release (133) (52) 284 large large
Cash profit before income tax
5,398 4,759 4,441 13% 22%
Income tax expense and non-controlling interests (1,577) (1,357) (1,328) 16% 19%
Cash profit from continuing operations
3,821 3,402 3,113 12% 23%

Half Year Movement
Cash Profit/(Loss) by Division
Mar 23
$M
Sep 22
$M
Mar 22
$M
Mar 23
v. Sep 22
Mar 23
v. Mar 22
Australia Retail

1,026 1,072 937

-4% 9%
Australia Commercial

739 668 883

11% -16%
Institutional
1,597 1,128 809 42% 97%
New Zealand
774 745 704 4% 10%
Pacific
34 15 (6) large large
Group Centre
(349) (226) (214) 54% 63%
Cash profit from continuing operations
3,821 3,402 3,113 12% 23%

GROUP RESULTS


21
Cash Net Interest Income


Half Year

Movement
Group

Mar 23
$M
Sep 22
$M
Mar 22
$M

Mar 23
v. Sep 22
Mar 23
v. Mar 22
Net interest income
1
8,503 7,774 7,100 9% 20%
Average interest earning assets
972,972 920,340 899,678 6% 8%
Average deposits and other borrowings
826,160 792,561 768,118 4% 8%
Net interest margin (%)
1.75 1.68 1.58 7 bps 17 bps
Group (excluding Markets business unit)

Net interest income
1
8,339 7,483 6,684 11% 25%
Average interest earning assets
687,563 659,400 645,467 4% 7%
Average deposits and other borrowings
628,973 608,962 593,241 3% 6%
Net interest margin (%)
2.43 2.26 2.08 17 bps 35 bps



Half Year

Movement
Net interest margin by major division
1


Mar 23
$M
Sep 22
$M
Mar 22
$M

Mar 23
v. Sep 22
Mar 23
v. Mar 22
Australia Retail

Net interest margin (%) - cash

2.39 2.29 2.21

10 bps 18 bps
Average interest earning assets

253,743 245,434 245,462

3% 3%
Average deposits and other borrowings

152,392 147,689 143,888

3% 6%
Australia Commercial
2


Net interest margin (%) - cash

2.72 2.30 1.90

42 bps 82 bps
Average interest earning assets

60,860 59,568 58,162

2% 5%
Average deposits and other borrowings

113,276 115,269 114,924

-2% -1%


Institutional

Net interest margin (%) - cash

0.91 0.91 0.88

0 bps 3 bps
Average interest earning assets

454,334 421,500 403,894

8% 12%
Average deposits and other borrowings

355,905 341,058 327,112

4% 9%


New Zealand

Net interest margin (%) - cash

2.67 2.61 2.33

6 bps 34 bps
Average interest earning assets

118,639 115,874 116,779

2% 2%
Average deposits and other borrowings
102,113 100,984 101,729 1% 0%
1.
Includes the major bank levy of -$175 million for the March 2023 half (Sep 22 half: -$175 million; Mar 22 half: -$165 million).
2.
Australia Commercial division generates positive net interest income from surplus deposits held. Accordingly, $59.3 billion of average deposits for the March 2023 half (Sep 22 half:
$62.8 billion; Mar 22 half: $64.1 billion) have been included within average net interest earning assets for the net interest margin calculation to align with internal management reporting
view.
Group net interest margin - March 2023 Half Year v March 2022 Half Year


• March 2023 v March 2022
Net interest margin (+17 bps)
• Asset pricing (-18 bps): primarily driven by home loan pricing competition in the Australia Retail and New Zealand divisions.
• Deposit pricing and wholesale funding (+37 bps): driven by favourable deposit margins from a rising interest rate environment.
• Asset and funding mix (-4 bps): driven by unfavourable deposit mix with a shift towards lower margin term deposits, increased term wholesale
funding relative to customer deposits, and unfavourable asset mix with higher growth in the Institutional division. This was partially offset by
favourable lending mix with a shift towards higher margin variable rate home loans.

GROUP RESULTS


22
• Capital and replicating portfolio (+14 bps): primarily driven by a rising interest rate environment.
• Liquidity (-3 bps): driven by growth in lower yielding liquid assets to replace the Committed Liquidity Facility (CLF), and other increases in liquid
assets to meet regulatory compliance requirements.
• Markets activities (-9 bps): lower net interest income was driven by higher funding costs, primarily on commodity and fixed income assets where
the related revenues are recognised as Other operating income.
Average interest earning assets (+73.3 billion or +8%)
• Average net loans and advances (+42.2 billion or +7%): driven by lending growth across all divisions, and the impact of foreign currency
translation movements.
• Average trading assets and investment securities (+5.0 billion or +4%): driven by higher liquid assets partially offset by the impact of foreign
currency translation movements.
• Average cash and other liquid assets (+26.2 billion or +15%): driven by higher central bank balances and higher reverse repurchase agreements.
Average deposits and other borrowings (+58.0 billion or +8%)
• Average deposits and other borrowings (+58.0 billion or +8%): driven by growth in term deposits across all divisions, and increases in commercial
paper and certificates of deposit, partially offset by lower at-call deposits.

Group net interest margin - March 2023 Half Year v September 2022 Half Year

• March 2023 v September 2022
Net interest margin (+7 bps)
• Asset pricing (-9 bps): primarily driven by home loan pricing competition in the Australia Retail and New Zealand divisions.
• Deposit pricing and wholesale funding (+20 bps): driven by favourable deposit margins from a rising interest rate environment.
• Asset and funding mix (-3 bps): driven by unfavourable deposit mix with a shift towards lower margin term deposits, increased term wholesale
funding relative to customer deposits, and unfavourable asset mix with higher growth in the Institutional division. This was partially offset by
favourable lending mix with a shift towards higher margin variable rate home loans.
• Capital and replicating portfolio (+7 bps): primarily driven by rising interest rate environment.
• Liquidity (-2 bps): driven by growth in lower yielding liquid assets to replace CLF, and other increases in liquid assets to meet regulatory
compliance requirements.
• Markets activities (-6 bps): lower net interest income was driven by higher funding costs, primarily on commodity and fixed income assets where
the related revenues are recognised as Other operating income.
Average interest earning assets (+52.6 billion or +6%)
• Average net loans and advances (+29.8 billion or +5%): driven by lending growth across all divisions, and the impact of foreign currency
translation movements.
• Average trading assets and investment securities (+3.7 billion or +3%): driven by higher liquid assets, partially offset by the impact of foreign
currency translation movements.
• Average cash and other liquid assets (+19.2 billion or +11%): driven by higher central bank balances and higher reverse repurchase agreements.
Average deposits and other borrowings (+33.6 billion or +4%)
• Average deposits and other borrowings (+33.6 billion or +4%): driven by growth in term deposits in all divisions, increases in commercial paper,
and certificate of deposits and the impact of foreign currency translation movements. This was partially offset by lower at-call deposits in all
divisions.

GROUP RESULTS


23
Cash Other Operating Income



Half Year

Movement


Mar 23
$M
Sep 22
$M
Mar 22
$M

Mar 23
v. Sep 22
Mar 23
v. Mar 22
Net fee and commission income
1


890 954 953 -7% -7%
Markets other operating income

985 464 396 large large
Share of associates' profit/(loss)

101 103 74 -2% 36%
Other
1


49 304 425 -84% -88%
Total
2,025 1,825 1,848 11% 10%
Total excluding large/notable items
2
2,075 1,810 1,576 15% 32%

Half Year Movement
Other operating income by division
Mar 23
$M
Sep 22
$M
Mar 22
$M
Mar 23
v. Sep 22
Mar 23
v. Mar 22
Australia Retail

281 353 269 -20% 4%
Australia Commercial

175 185 477 -5% -63%
Institutional
1,373 868 783 58% 75%
New Zealand
199 216 244 -8% -18%
Pacific
40 34 34 18% 18%
Group Centre
(43) 169 41 large large
Total
2,025 1,825 1,848 11% 10%



Half Year Movement
Markets income
Mar 23
$M
Sep 22
$M
Mar 22
$M
Mar 23
v. Sep 22
Mar 23
v. Mar 22
Net interest income 164 291 416 -44% -61%
Other operating income
985 464 396 large large
Total
1,149 755 812 52% 42%
1.
Excluding the Markets business unit.
2.
Refer to pages 12 to 16 for details of large/notable items.

GROUP RESULTS


24
Other operating income - March 2023 Half Year v March 2022 Half Year

• March 2023 v March 2022
Other operating income increased $177 million (+10%).
Net fee and commission income (-$63 million or -7%)
• $71 million decrease in the Australia Commercial division driven by lower revenue following business divestments.
• $14 million decrease in the New Zealand division primarily driven by lower funds management fees.
• $21 million increase in the Australia Retail division driven by higher cards revenue reflecting an increase in consumer spending, new home loan
offset account fees, and lower customer remediation.
• $16 million increase in the Institutional division (excluding Markets) driven by higher guarantee fees in Transaction Banking and higher deal
activities in Corporate Finance, partially offset by lower revenue following business divestment.
Markets income (+$337 million or +42%)
Markets income increased $337 million driven by a $589 million increase in Other operating income, partially offset by a $252 million decrease in Net
interest income. The decrease in Net interest income was driven by higher funding costs, primarily commodity and fixed income assets where the
related revenues were recognised as Other operating income. The $337 million increase was attributable to the following business activities:
• $133 million increase in Balance Sheet driven by favourable yield curve movements and portfolio repricing.
• $83 million increase in Foreign Exchange driven by customer demand for hedging solutions, with continued foreign exchange volatility and
interest rate differentials across currencies, and generally more favourable trading conditions.
• $80 million increase in Credit and Capital Markets driven by more favourable credit trading conditions and higher levels of customer issuances.
• $37 million increase in Derivative Valuation Adjustments with lower credit valuation adjustments arising from tightening credit spreads, and lower
currency and interest rate volatility.
• $27 million increase in Commodities driven by more favourable trading conditions and sustained customer demand for hedging solutions.
• $23 million decrease in Rates driven by less favourable trading conditions than the March 2022 half, partially offset by increased customer
demand for hedging solutions as interest rates increased.
Share of associates’ profit/(loss) (+$27 million or +36%)
• $27 million increase in share of associates’ profits primarily driven by P.T. Bank Pan Indonesia (PT Panin) ($32 million) and AMMB Holdings
Berhad (AmBank) ($12 million), partially offset by equity accounted losses in Worldline Australia Pty Ltd ($17 million).
Other (-$376 million or -88%)
• $231 million decrease in the Australia Commercial division driven by a gain on completion of the ANZ Worldline partnership ($307 million),
partially offset by a loss on sale of the financial planning and advice business ($62 million), both in the March 2022 half.
• $99 million decrease in the Group Centre division primarily driven by lower valuation adjustments from investments measured at fair value
($48 million), a loss on reclassification of data centres to held for sale ($43 million), and lower realised gains on economic hedges against foreign
currency denominated revenue streams offsetting net favourable foreign currency translations elsewhere in the Group ($42 million). This was
partially offset 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) in the March 2022 half.
• $31 million decrease in the New Zealand division driven by realised gains from the sale of government securities in the March 2022 half.

GROUP RESULTS


25
• March 2023 v September 2022
Other operating income increased $200 million (+11%).
Net fee and commission income (-$64 million or -7%)
• $27 million decrease in the Australia Retail division driven by higher cards travel insurance premium reflecting the recovery in domestic and
international travel, the timing of recognition of cards incentives, and seasonality of fees.
• $16 million decrease in the New Zealand division driven by lower cards revenue due to the reduction in domestic interchange rates.
Markets income (+$394 million or +52%)
Markets income increased $394 million driven by a $521 million increase in Other operating income, partially offset by a $127 million decrease in Net
interest income. The decrease in Net interest income was driven by higher funding costs, primarily commodity and fixed income assets where the
related revenues were recognised as Other operating income. The $394 million increase was primarily attributable to the following business activities:
• $150 million increase in Balance Sheet driven by favourable outcomes from yield curve movements and portfolio repricing.
• $62 million increase in Derivative Valuation Adjustments with lower credit valuation adjustments arising from tightening credit spreads, and lower
currency and interest rate volatility.
• $59 million increase in Credit and Capital Markets driven by more favourable credit trading conditions, and higher levels of customer issuances.
• $50 million increase in Commodities driven by more favourable trading conditions, and increased customer demand for hedging solutions.
• $47 million increase in Rates driven by increased customer demand for hedging solutions, partially offset by less favourable trading conditions.
• $26 million increase in Foreign Exchange driven by customer demand for hedging solutions arising from continuing volatility and interest rate
differentials across currencies, and more favourable trading conditions.
Other (-$255 million or -84%)
• $207 million decrease in the Group Centre division driven by lower realised gains on economic hedges against foreign currency denominated
revenue streams offsetting net favourable foreign currency translations elsewhere in the Group ($59 million), lower valuation adjustments from
investments measured at fair value ($49 million), a loss on reclassification of data centres in Australia to held for sale ($43 million) and a net gain
on modification of a significant lease arrangement in the September 2022 half ($23 million).
• $45 million decrease in the Australia Retail division driven by lower insurance-related income.

GROUP RESULTS


26
Cash Operating Expenses


Half Year Movement

Mar 23
$M
Sep 22
$M
Mar 22
$M
Mar 23
v. Sep 22
Mar 23
v. Mar 22
Personnel 2,893 2,642 2,654 10% 9%
Premises
334 380 341 -12% -2%
Technology
836 806 815 4% 3%
Restructuring
54 52 49 4% 10%
Other
880 908 932 -3% -6%
Total 4,997 4,788 4,791 4% 4%
Total excluding large/notable items
1
4,844 4,626 4,544 5% 7%



Half Year

Movement
Operating expenses by division

Mar 23
$M
Sep 22
$M
Mar 22
$M
Mar 23
v. Sep 22
Mar 23
v. Mar 22
Australia Retail

1,745 1,656 1,741

5% 0%
Australia Commercial

685 652 649

5% 6%
Institutional

1,328 1,293 1,273

3% 4%
New Zealand

630 622 651

1% -3%
Pacific

74 73 80

1% -8%
Group Centre

535 492 397

9% 35%
Total
4,997 4,788 4,791 4% 4%



Half Year

Movement
FTE by division
Mar 23 Sep 22 Mar 22
Mar 23
v. Sep 22
Mar 23
v. Mar 22
Australia Retail

11,199 11,107 11,475

1% -2%
Australia Commercial

3,607 3,551 3,528

2% 2%
Institutional

6,353 6,316 6,323

1% 0%
New Zealand

6,785 6,793 6,939

0% -2%
Pacific

1,037 1,086 1,092

-5% -5%
Group Centre
2


10,821 10,319 10,329

5% 5%
Total FTE
39,802 39,172 39,686 2% 0%
Average FTE
2


39,589 39,254 40,092 1% -1%
1.
Refer to pages 12 to 16 for further details on large/notable items.
2.
Comparative information has been restated to include FTE of the consolidated investments managed by 1835i Group Pty Ltd in the Group Centre division (FTE: Sep 22: 185; Mar 22: 157;
Average FTE: Sep 22 half: 172; Mar 22 half: 79).

GROUP RESULTS


27
Operating expenses - March 2023 Half Year v March 2022 Half Year

• March 2023 v March 2022
Operating expenses increased by $206 million (+4%).
• Personnel expenses increased $239 million (+9%) driven by inflationary impacts on wages including the revaluation of leave provisions, and
incremental run costs associated with strategic initiatives including Cloud and ANZ Plus. This was partially offset by continued back and middle-
office optimisation.
• Technology expenses increased $21 million (+3%) driven by higher software licence costs and inflationary impacts on vendor contracts. This
was partially offset by benefits from simplifying network infrastructure, lower amortisation, and reduction in spend on regulatory and compliance
initiatives.
• Other expenses decreased $52 million (-6%) driven by a reduction in regulatory and compliance initiatives, partially offset by increases in
transaction related costs and costs previously attributed to discontinued operations.
• March 2023 v September 2022
Operating expenses increased by $209 million (+4%).
• Personnel expenses increased $251 million (+10%) driven by inflationary impacts on wages including the revaluation of leave provisions,
incremental run costs associated with strategic initiatives including Cloud and ANZ Plus, and the impact of unfavourable foreign currency
translation movements. This was partially offset by continued back and middle-office optimisation.
• Premises expenses decreased $46 million (-12%) driven by the modification of a significant lease arrangement in the September 2022 half.
• Technology expenses increased $30 million (+4%) driven by higher software licence costs and inflationary impacts on vendor contracts. This
was partially offset by benefits from simplifying network infrastructure, lower amortisation, and reduction in spend on regulatory and compliance
initiatives.
• Other expenses decreased $28 million (-3%) driven by a reduction in regulatory and compliance initiatives, partially offset by increases in
transaction related costs and costs previously attributed to discontinued operations.

GROUP RESULTS


28
Software Capitalisation
Capitalised software comprises both costs incurred to develop software 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 23
$M
Sep 22
$M
Mar 22
$M

Mar 23
v. Sep 22
Mar 23
v. Mar 22
Balance at start of period 896 924 960 -3% -7%
Software capitalised during the period
143 160 155 -11% -8%
Amortisation during the period
(163) (186) (189) -12% -14%
Software impaired/written-off
- (1) (2) large large
Foreign currency translation
1 (1) - large n/a
Total capitalised software
877 896 924 -2% -5%

Capitalised software by division As at

Movement

Mar 23
$M
Sep 22
$M
Mar 22
$M

Mar 23
v. Sep 22
Mar 23
v. Mar 22
Australia Retail 132 141 147 -6% -10%
Australia Commercial
86 74 59 16% 46%
Institutional
415 405 399 2% 4%
New Zealand
14 15 20 -7% -30%
Group Centre
230 261 299 -12% -23%
Total capitalised software
877 896 924 -2% -5%

GROUP RESULTS


29
Credit Risk
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.
Allowance for expected credit losses


As at Movement

Mar 23
$M
Sep 22
$M
Mar 22
$M
Mar 23
v. Sep 22
Mar 23
v. Mar 22
Collectively assessed allowance for ECL 4,040 3,853 3,757 5% 8%
Individually assessed allowance for ECL
421 542 636 -22% -34%
Total allowance for ECL
4,461 4,395 4,393 2% 2%

Credit impairment charge/(release)


Half Year Movement

Mar 23
$M
Sep 22
$M
Mar 22
$M
Mar 23
v. Sep 22
Mar 23
v. Mar 22
Collectively assessed credit impairment charge/(release) 163 60 (371) large large
Individually assessed credit impairment charge/(release)
(30) (8) 87 large large
Total credit impairment charge/(release)
133 52 (284) large large


Credit impairment charge/(release) by division


Half Year Movement
Collectively assessed
Mar 23
$M
Sep 22
$M
Mar 22
$M
Mar 23
v. Sep 22
Mar 23
v. Mar 22
Australia Retail 50 (11) (158) large large
Australia Commercial
57 (5) (165) large large
Institutional
5 13 (26) -62% large
New Zealand
66 79 (18) -16% large
Pacific
(15) (16) (3) -6% large
Group Centre
- - (1) n/a large
Total collectively assessed 163 60 (371) large large

Individually assessed

Australia Retail 32 (5) 45 large -29%
Australia Commercial
9 (6) 43 large -79%
Institutional
(79) (15) 1 large large
New Zealand
9 (3) (13) large large
Pacific
(1) 7 6 large large
Group Centre
- 14 5 large large
Total individually assessed (30) (8) 87 large large

Total credit impairment charge/(release)

Australia Retail 82 (16) (113) large large
Australia Commercial
66 (11) (122) large large
Institutional
(74) (2) (25) large large
New Zealand
75 76 (31) -1% large
Pacific
(16) (9) 3 78% large
Group Centre
- 14 4 large large
Total credit impairment charge/(release) 133 52 (284) large large

GROUP RESULTS


30
Credit impairment charge/(release) by division, 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 2023 Half Year $M $M $M $M $M $M $M $M
Australia Retail
(39) 78 11 50 94 (62) 32 82
Australia Commercial
(2) 75 (16) 57 62 (53) 9 66
Institutional
43 (31) (7) 5 57 (136) (79) (74)
New Zealand
(2) 58 10 66 21 (12) 9 75
Pacific
(1) (8) (6) (15) 3 (4) (1) (16)
Group Centre
- - - - - - - -
Total
(1) 172 (8) 163 237 (267) (30) 133


September 2022 Half Year
Australia Retail 27 (28) (10) (11) 97 (102) (5) (16)
Australia Commercial (6) 46 (45) (5) 76 (82) (6) (11)
Institutional 50 (46) 9 13 12 (27) (15) (2)
New Zealand 39 38 2 79 24 (27) (3) 76
Pacific 3 (13) (6) (16) 10 (3) 7 (9)
Group Centre - - - - - 14 14 14
Total 113 (3) (50) 60 219 (227) (8) 52


March 2022 Half Year
Australia Retail (21) (131) (6) (158) 121 (76) 45 (113)
Australia Commercial 77 (260) 18 (165) 118 (75) 43 (122)
Institutional 54 (71) (9) (26) 38 (37) 1 (25)
New Zealand 3 (23) 2 (18) 15 (28) (13) (31)
Pacific (5) - 2 (3) 9 (3) 6 3
Group Centre (1) - - (1) - 5 5 4
Total 107 (485) 7 (371) 301 (214) 87 (284)

Collectively assessed credit impairment charge/(release)
• March 2023 v March 2022
The collectively assessed impairment charge of $163 million for the March 2023 half was driven by deterioration in economic outlook, a net increase
in management temporary adjustments, and deterioration in credit risk. This was partially offset by an improvement in portfolio composition,
particularly in the Institutional division.
The collectively assessed credit impairment release of $371 million for the March 2022 half was driven by improvements in credit risk, favourable
changes in portfolio composition, and a net release of management temporary adjustments. This was partially offset by an increase for the downside
risks associated with the economic outlook.
• March 2023 v September 2022
The collectively assessed impairment charge of $163 million for the March 2023 half was driven by deterioration in economic outlook, a net increase
in management temporary adjustments, and deterioration in credit risk. This was partially offset by an improvement in portfolio composition,
particularly in the Institutional division.
The collectively assessed impairment charge of $60 million for the September 2022 half was driven by worsening base economic forecast and
increasing downside risks associated with the economic outlook. This was partially offset by portfolio risk and composition improvements, and a net
release of management temporary adjustments.
Individually assessed credit impairment charge/(release)
• March 2023 v March 2022
The individually assessed credit impairment charge decreased $117 million driven by decreases in the Institutional division (-$80 million) due to
significant write-backs and recoveries, the Australia Commercial (-$34 million) and Australia Retail (-$13 million) divisions due to subdued
delinquency flows. This was partially offset by the New Zealand division (+$22 million) due to lower write-backs.
• March 2023 v September 2022
The individually assessed credit impairment release increased $22 million driven by Institutional division (-$64 million) due to significant write-back
and recoveries. This was partially offset by increases in the Australian Retail (+$37 million) and Australia Commercial (+$15 million) divisions due to
lower write-backs and recoveries, and the New Zealand (+$12 million) division due to lower recoveries.

GROUP RESULTS


31
Allowance for expected credit losses by division
1


As at Movement
Collectively assessed
Mar 23
$M
Sep 22
$M
Mar 22
$M
Mar 23
v. Sep 22
Mar 23
v. Mar 22
Australia Retail 949 899 909 6% 4%
Australia Commercial
1,033 976 982 6% 5%
Institutional
1,451 1,452 1,382 0% 5%
New Zealand
543 448 393 21% 38%
Pacific
63 77 89 -18% -29%
Group Centre
1 1 2 0% -50%
Total collectively assessed 4,040 3,853 3,757 5% 8%


Individually assessed

Australia Retail 68 75 106 -9% -36%
Australia Commercial
149 188 258 -21% -42%
Institutional
129 200 202 -36% -36%
New Zealand
47 46 45 2% 4%
Pacific
28 33 25 -15% 12%
Group Centre
- - - n/a n/a
Total individually assessed 421 542 636 -22% -34%


Allowance for ECL

Australia Retail 1,017 974 1,015 4% 0%
Australia Commercial
1,182 1,164 1,240 2% -5%
Institutional
1,580 1,652 1,584 -4% 0%
New Zealand
590 494 438 19% 35%
Pacific
91 110 114 -17% -20%
Group Centre
1 1 2 0% -50%
Total allowance for ECL 4,461 4,395 4,393 2% 2%
1.
Includes allowance for ECL 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
Allowance for expected credit losses by division, cont'd
1



Collectively assessed

Individually
assessed

As at March 2023
Stage 1
$M
Stage 2
$M
Stage 3
$M
Total
$M
Stage 3
$M
Total
$M
Australia Retail 107 660 182 949 68 1,017
Australia Commercial
350 586 97 1,033 149 1,182
Institutional
1,159 274 18 1,451 129 1,580
New Zealand
141 333 69 543 47 590
Pacific
16 28 19 63 28 91
Group Centre
1 - - 1 - 1
Total
1,774 1,881 385 4,040 421 4,461

As at September 2022
Australia Retail 145 583 171 899 75 974
Australia Commercial 352 511 113 976 188 1,164
Institutional 1,124 303 25 1,452 200 1,652
New Zealand 134 259 55 448 46 494
Pacific 16 36 25 77 33 110
Group Centre 1 - - 1 - 1
Total 1,772 1,692 389 3,853 542 4,395

As at March 2022
Australia Retail 119 609 181 909 106 1,015
Australia Commercial 358 465 159 982 258 1,240
Institutional 1,025 342 15 1,382 202 1,584
New Zealand 102 236 55 393 45 438
Pacific 12 47 30 89 25 114
Group Centre 1 1 - 2 - 2
Total 1,617 1,700 440 3,757 636 4,393
1.
Includes allowance for ECL 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


33
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 23 Sep 22 Mar 22
Australia Retail

0.11% 0.11% 0.12%
Australia Commercial

0.53% 0.56% 0.62%
New Zealand

0.10% 0.11% 0.12%
Institutional

0.19% 0.21% 0.21%
Total Group

0.17% 0.19% 0.20%

Non-Performing Credit Exposures




As at

Movement

Mar 23
$M
Sep 22
$M
Mar 22
$M

Mar 23
v. Sep 22
Mar 23
v. Mar 22
Impaired loans
1
804 1,043 1,286 -23% -37%
Restructured items
2
382 376 375 2% 2%
Non-performing commitments, contingencies and derivatives
1
24 26 48 -8% -50%
Gross impaired assets
1,210 1,445 1,709 -16% -29%
Non-performing credit exposures not impaired 3,089 3,065 3,365 1% -8%
Total non-performing credit exposures
3
4,299 4,510 5,074 -5% -15%

Gross impaired assets by division

Australia Retail 415 390 324 6% 28%
Australia Commercial
288 360 533 -20% -46%
Institutional
302 425 683 -29% -56%
New Zealand
100 93 113 8% -12%
Pacific
105 177 56 -41% 88%
Gross impaired assets
1,210 1,445 1,709 -16% -29%

Gross impaired assets by size of exposure
Less than $10 million 956 1,084 1,054 -12% -9%
$10 million to $100 million
123 131 221 -6% -44%
Greater than $100 million
131 230 434 -43% -70%
Gross impaired assets
1,210 1,445 1,709 -16% -29%

Individually assessed provisions
Impaired loans
(414) (533) (619) -22% -33%
Non-performing commitments, contingencies and derivatives
(7) (9) (17) -22% -59%
Net impaired assets
789 903 1,073 -13% -26%
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 2023 v March 2022
Gross impaired assets decreased $499 million (-29%) driven by decreases in the Institutional division (-$381 million) due to the upgrade and
repayments of several single name exposures, and the Australia Commercial division (-$245 million) due to underlying delinquency flows remaining
subdued and the upgrade and repayments of several single name exposures. This was partially offset by increases in the Australia Retail division
($91 million) driven by well-secured home loans being classified as restructured exposures, and by the Pacific division ($49 million) driven by
exposures rolling off local COVID-19 support packages and classified as restructured exposures during the September 2022 half.
• March 2023 v September 2022
Gross impaired assets decreased $235 million (-16%) driven by decreases in the Institutional division (-$123 million) due to the upgrade and
repayments of several single name exposures, the Australia Commercial division (-$72 million) due to underlying delinquency flows remaining
subdued, and the Pacific division (-$72 million) due to the upgrade of restructured exposures. This was partially offset by an increase in the Australia
Retail division (+$25 million) driven by well-secured home loans being classified as restructured exposures.
The Group’s individually assessed provision coverage ratio on impaired assets was 34.9% at 31 March 2023 (Sep 22: 37.5%; Mar 22: 37.2%;).

GROUP RESULTS


34
New Impaired Assets


Half Year

Movement

Mar 23
$M
Sep 22
$M
Mar 22
$M
Mar 23
v. Sep 22
Mar 23
v. Mar 22
Impaired loans
1


405 320 478

27% -15%
Restructured items
2


122 274 138

-55% -12%
Non-performing commitments and contingencies
1
11 5 23 large -52%
Total new impaired assets
538 599 639 -10% -16%
New impaired assets by division
Australia Retail 221 279 202 -21% 9%
Australia Commercial
93 109 191 -15% -51%
Institutional
156 56 185 large -16%
New Zealand
63 34 51 85% 24%
Pacific
5 121 10 -96% -50%
Total new impaired assets
538 599 639 -10% -16%
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 2023 v March 2022
New impaired assets decreased $101 million (-16%) driven by decreases in the Institutional division (-$29 million) reflecting a number of single name
exposures recognised in the March 2022 half, and the Australia Commercial division (-$98 million) with underlying delinquency flows remaining
subdued. This was partially offset by increases in the Australia Retail division ($19 million) driven by restructured home loans, and the New Zealand
division ($12 million) driven by the retail portfolio.
• March 2023 v September 2022
New impaired assets decreased by $61 million (-9%) driven by decreases in the Pacific (-$116 million) and Australia Retail (-$58 million) divisions
due to high number of restructures recognised in the September 2022 half, and Australia Commercial division (-$16 million) with underlying
delinquency flows remaining subdued. This was partially offset by increases in the Institutional division ($100 million) reflecting impairment of several
single name exposures, and the New Zealand division ($29 million) driven by both the retail and commercial portfolios.

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


As at Movement

Mar 23
$M
Sep 22
$M
Mar 22
$M
Mar 23
v. Sep 22
Mar 23
v. Mar 22
1-29 days 6,213 5,322 4,676 17% 33%
30-59 days
1,965 1,243 1,368 58% 44%
60-89 days
759 598 635 27% 20%
90+ days
2,502 2,402 2,823 4% -11%
Total
11,439 9,565 9,502 20% 20%
• March 2023 v March 2022
Net loans and advances past due but not impaired increased $1,937 million (20%). The increase was primarily driven by home loan portfolios in the
Australia Retail and New Zealand divisions. This was partially offset by a decrease in the 90+ days category driven by subdued underlying
delinquency flows in the Australia Commercial division.
• March 2023 v September 2022
Net loans and advances past due but not impaired increased $1,874 million (20%). The increases across all ageing categories were predominantly
driven by home loan portfolios in the Australia Retail and New Zealand divisions.

GROUP RESULTS


35
Cash Income Tax Expense


Half Year

Movement


Mar 23
$M
Sep 22
$M
Mar 22
$M

Mar 23
v. Sep 22
Mar 23
v. Mar 22
Income tax expense from cash profit

1,563 1,356 1,328 15% 18%
Effective tax rate
29.0% 28.5% 29.9%
• March 2023 v March 2022
The effective tax rate decreased from 29.9% to 29.0%. The decrease of 90 bps was driven by lower withholding tax expense on foreign dividends
(-280 bps), lower net non-tax assessable gain from divestments/closures (-77 bps), and higher offshore earnings that attract a lower rate of tax
(-54 bps). This was partially offset by the non-tax assessable gain on completion of the Worldline partnership in the March 2022 half (272 bps),
higher prior period adjustments booked in the March 2022 half (25 bps), and higher non-deductible interest on convertible instruments (23 bps).
• March 2023 v September 2022
The effective tax rate increased from 28.5% to 29.0%. The increase of 50 bps was driven by higher prior period adjustments booked in the
September 2022 half (32 bps), higher equity accounted earnings (8 bps), and higher non-deductible interest on convertible instruments (12 bps).
This was partially offset by lower net non-tax assessable gain from divestments/closures (-8 bps).

GROUP RESULTS


36
Impact of Foreign Currency Translation
The following tables present the Group’s comparative 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 2023 Half Year v March 2022 Half Year

Half Year Movement

Actual
FX
unadjusted
FX
impact
FX
adjusted
FX
unadjusted
FX
adjusted

Mar 23
$M
Mar 22
$M
Mar 22
$M
Mar 22
$M
Mar 23
v. Mar 22
Mar 23
v. Mar 22
Net interest income 8,503 7,100 (9) 7,091 20% 20%
Other operating income
2,025 1,848 (11) 1,837 10% 10%
Operating income
10,528 8,948 (20) 8,928 18% 18%
Operating expenses (4,997) (4,791) (4) (4,795) 4% 4%
Cash profit before credit impairment and income tax
5,531 4,157 (24) 4,133 33% 34%
Credit impairment (charge)/release (133) 284 (1) 283 large large
Cash profit before income tax
5,398 4,441 (25) 4,416 22% 22%
Income tax expense and non-controlling interests (1,577) (1,328) 11 (1,317) 19% 20%
Cash profit from continuing operations
3,821 3,113 (14) 3,099 23% 23%



Cash profit/(loss) from continuing operations by division



Australia Retail

1,026 937 - 937

9% 9%
Australia Commercial

739 883 - 883

-16% -16%
Institutional

1,597 809 12 821

97% 95%
New Zealand

774 704 (18) 686

10% 13%
Pacific

34 (6) - (6)

large large
Group Centre
(349) (214) (8) (222) 63% 57%
Cash profit from continuing operations
3,821 3,113 (14) 3,099 23% 23%



Net loans and advances by division



Australia Retail

300,581 284,548 - 284,548

6% 6%
Australia Commercial

59,911 57,625 - 57,625

4% 4%
Institutional

208,265 188,177 7,100 195,277

11% 7%
New Zealand

120,262 116,403 879 117,282

3% 3%
Pacific

1,661 1,664 86 1,750

0% -5%
Group Centre
(593) 3,019 - 3,019 large large
Net loans and advances
690,087 651,436 8,065 659,501 6% 5%

Customer deposits by division



Australia Retail

156,374 147,000 - 147,000

6% 6%
Australia Commercial

113,011 116,420 - 116,420

-3% -3%
Institutional

278,089 247,173 13,505 260,678

13% 7%
New Zealand

97,958 96,765 730 97,495

1% 0%
Pacific

3,562 3,763 210 3,973

-5% -10%
Group Centre
(367) (67) - (67) large large
Customer deposits
648,627 611,054 14,445 625,499 6% 4%

GROUP RESULTS


37
March 2023 Half Year v September 2022 Half Year

Half Year Movement

Actual
FX
unadjusted
FX
impact
FX
adjusted
FX
unadjusted
FX
adjusted

Mar 23
$M
Sep 22
$M
Sep 22
$M
Sep 22
$M
Mar 23
v. Sep 22
Mar 23
v. Sep 22
Net interest income 8,503 7,774 55 7,829 9% 9%
Other operating income
2,025 1,825 (11) 1,814 11% 12%
Operating income
10,528 9,599 44 9,643 10% 9%
Operating expenses (4,997) (4,788) (30) (4,818) 4% 4%
Cash profit before credit impairment and income tax
5,531 4,811 14 4,825 15% 15%
Credit impairment (charge)/release (133) (52) 2 (50) large large
Cash profit before income tax
5,398 4,759 16 4,775 13% 13%
Income tax expense and non-controlling interests (1,577) (1,357) (1) (1,358) 16% 16%
Cash profit from continuing operations
3,821 3,402 15 3,417 12% 12%



Cash profit/(loss) from continuing operations by division



Australia Retail

1,026 1,072 - 1,072

-4% -4%
Australia Commercial

739 668 - 668

11% 11%
Institutional

1,597 1,128 19 1,147

42% 39%
New Zealand

774 745 11 756

4% 2%
Pacific

34 15 1 16

large large
Group Centre
(349) (226) (16) (242) 54% 44%
Cash profit from continuing operations
3,821 3,402 15 3,417 12% 12%



Net loans and advances by division



Australia Retail

300,581 290,322 - 290,322

4% 4%
Australia Commercial

59,911 59,727 - 59,727

0% 0%
Institutional

208,265 207,241 (804) 206,437

0% 1%
New Zealand

120,262 113,288 7,107 120,395

6% 0%
Pacific

1,661 1,754 - 1,754

-5% -5%
Group Centre
(593) 75 - 75 large large
Net loans and advances
690,087 672,407 6,303 678,710 3% 2%



Customer deposits by division



Australia Retail

156,374 149,953 - 149,953

4% 4%
Australia Commercial

113,011 112,195 - 112,195

1% 1%
Institutional

278,089 262,534 (2,047) 260,487

6% 7%
New Zealand

97,958 92,032 5,774 97,806

6% 0%
Pacific

3,562 3,776 (19) 3,757

-6% -5%
Group Centre
(367) (61) - (61) large large
Customer deposits
648,627 620,429 3,708 624,137 5% 4%

GROUP RESULTS


38
Earnings Related Hedges
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 Rest of World
geography. Details of these hedges are set out below.


Half Year
NZD Economic hedges
Mar 23
$M
Sep 22
$M
Mar 22
$M
Net open NZD position (notional principal)
1,2
3,011 2,585 2,630
Amount taken to income (pre-tax statutory basis)
3
(148) 113 63
Amount taken to income (pre-tax cash basis)
4
16 38 7
USD Economic hedges
Net open USD position (notional principal)
1,2
750 685 529
Amount taken to income (pre-tax statutory basis)
3
28 (80) 21
Amount taken to income (pre-tax cash basis)
4
(20) (12) 6
1.
Value in AUD at contracted rate.
2.
The following hedges were in place to partially hedge future earnings against adverse movements in exchange rates, at a NZD forward rate of NZD 1.10/AUD as at 31 March 2023 (Sep 22:
NZD1.09/AUD; Mar 22: NZD 1.07/AUD), and a USD forward rate of USD 0.69/AUD as at 31 March 2023 (Sep 22: USD 0.71/AUD; Mar 22: USD 0.75/AUD).


Half Year

Mar 23 Sep 22 Mar 22
NZD Economic Hedges

At period end (NZD billion)
3.3 2.8 2.8
Matured during the period (NZD billion)
1.3 1.2 1.1
USD Economic Hedges

At period end (USD billion)
0.5 0.5 0.4
Matured during the period (USD billion)
0.1 0.1 0.2
3.
Unrealised valuation movement plus realised revenue from matured or closed out hedges.
4.
Realised revenue from closed out hedges.
An unrealised loss on the outstanding NZD and USD economic hedges of $116 million for the March 2023 half (Sep 22 half: $7 million gain; Mar 22 half:
$71 million gain) was recorded in statutory profit. This unrealised loss is treated as an adjustment to statutory profit in calculating cash profit (included in
revenue and expense hedge adjustments) as these are hedges of future NZD and USD revenues.


Cash Earnings Per Share



Half Year

Movement

Mar 23Sep 22Mar 22

Mar 23
v. Sep 22
Mar 23
v. Mar 22
Cash earnings per share from continuing operations (cents)



Basic



127.6 118.8 109.9 7%16%
Diluted

121.1 111.6 103.3 9%17%
Cash weighted average number of ordinary shares (M)

Basic

2,994.1 2,862.5 2,832.9 5%6%
Diluted

3,278.3 3,145.5 3,103.8 4%6%
Cash profit from continuing operations ($M)

3,821 3,402 3,113 12%23%
Cash profit from continuing operations used in calculating
diluted cash earnings per share ($M)

3,971 3,509 3,205 13%24%

GROUP RESULTS


39
Dividends



Half Year

Movement
Dividend per ordinary share (cents)
1
Mar 23 Sep 22 Mar 22

Mar 23
v. Sep 22
Mar 23
v. Mar 22
Interim

81 - 72
Final
- 74 -
Total
81 74 72 9% 13%
Ordinary share dividends used in payout ratio ($M)
2,3
2,433 2,213 2,012
Cash profit from continuing operations ($M)
3,821 3,402 3,113 12% 23%
Ordinary share dividend payout ratio (cash continuing basis)
3
63.7% 65.0% 64.6%
1.
Fully franked for Australian tax purposes (30% tax rate) and carry New Zealand imputation credits of NZD 9 cents for the proposed 2023 interim dividend (2022 final dividend: NZD 9 cents;
2022 interim dividend: NZD 9 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 $13 million (Sep 22 half: nil; Mar 22
half: $2 million).
3.
Dividend payout ratio is calculated using the proposed 2023 interim dividend of $2,433 million, based on the forecast number of ordinary shares on issue at the dividend record date.
Dividend payout ratios for the September 2022 half and March 2022 half were calculated using actual dividends.

The Directors propose an interim dividend of 81 cents be paid on each eligible fully paid ANZ ordinary share on 3 July 2023. The proposed 2023 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

Half Year Movement

Mar 23
$M
Sep 22
$M
Mar 22
$M

Mar 23
v. Sep 22
Mar 23
v. Mar 22
Statutory profit attributable to shareholders of the Company from
continuing operations

3,547 3,603 3,535

-2% 0%
Adjustments between statutory profit and cash profit from continuing operations
274 (201) (422) large large
Cash profit from continuing operations
3,821 3,402 3,113 12% 23%
Economic credit cost adjustment (333) (412) (675) -19% -51%
Imputation credits
625 526 405 19% 54%
Economic return from continuing operations
4,113 3,516 2,843 17% 45%
Cost of capital (3,268) (3,072) (3,028) 6% 8%
Economic profit from continuing operations
845 444 (185) 90% large

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, estimated based on 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 9.75% with comparative periods restated accordingly).
Economic profit increased by $1,030 million against the March 2022 half driven by higher cash profit, favourable economic credit cost adjustment and
higher imputation credits, partially offset by higher cost of capital.
Economic profit increased by $401 million against the September 2022 half, impacted by higher cash profit, favourable economic credit cost adjustment
and higher imputation credits, partially offset by higher cost of capital.

GROUP RESULTS


40
Condensed Balance Sheet


As at

Movement
Assets
Mar 23
$B
Sep 22
$B
Mar 22
$B

Mar 23
v. Sep 22
Mar 23
v. Mar 22
Cash / Settlement balances owed to ANZ / Collateral paid 225.1 185.6 186.0 21% 21%
Trading assets and investment securities
133.6 121.4 119.2 10% 12%
Derivative financial instruments
45.6 90.2 45.2 -49% 1%
Net loans and advances
690.1 672.4 651.4 3% 6%
Other
16.8 16.0 15.6 5% 8%
Total assets
1,111.2 1,085.6 1,017.4 2% 9%
Liabilities
Settlement balances owed by ANZ / Collateral received 31.0 30.0 26.5 3% 17%
Deposits and other borrowings
842.6 797.3 780.3 6% 8%
Derivative financial instruments
46.2 85.1 47.8 -46% -3%
Debt issuances
106.2 93.7 87.2 13% 22%
Other
15.6 13.2 13.8 18% 13%
Total liabilities
1,041.6 1,019.3 955.6 2% 9%
Total equity 69.6 66.4 61.8 5% 13%

• March 2023 v March 2022
• Cash / Settlement balances owed to ANZ / Collateral paid increased $39.1 billion (+21%) driven by increases in balances with central banks
($24.0 billion), reverse repurchase agreements ($9.3 billion), and the impact of foreign currency translation movements, partially offset by a
decrease in collateral paid ($2.5 billion).
• Trading assets and investment securities increased $14.4 billion (+12%) driven by an increase in semi-government bonds as part of portfolio
rebalancing, and the impact of foreign currency translation movements.
• Net loans and advances increased $38.7 billion (+6%) driven by home loan growth in the Australia Retail ($14.6 billion), higher lending volumes
in the Institutional ($13.0 billion), New Zealand ($3.0 billion) and Australia Commercial ($2.3 billion) divisions, and the impact of foreign currency
translation movements.
• Settlement balances owed by ANZ / Collateral received increased $4.5 billion (+17%) driven by higher cash clearing account balances and
higher collateral received.
• Deposits and other borrowings increased $62.3 billion (+8%) driven by increases in customer deposits across the Institutional ($17.4 billion) and
Australia Retail ($9.4 billion) divisions, certificates of deposit ($7.0 billion), commercial paper ($7.0 billion), deposits from banks and repurchase
agreements ($5.2 billion), and the impact of foreign currency translation movements. This was partially offset by a decrease in customer deposits
in the Australia Commercial ($3.4 billion) division.
• Debt issuances increased $19.0 billion (+22%) driven by issue of new senior and subordinated debt, including ANZ Capital Notes 8, and the
impact of foreign currency translation movements.
• March 2023 v September 2022
• Cash / Settlement balances owed to ANZ / Collateral paid increased $39.5 billion (+21%) driven by increases in balances with central banks
($17.9 billion), settlement balances owed to ANZ ($11.6 billion), and reverse repurchase agreements ($11.5 billion), partially offset by a decrease
in collateral paid ($3.2 billion).
• Trading assets and investment securities increased $12.2 billion (+10%) primarily driven by an increase in semi-government bonds as part of
portfolio rebalancing.
• Derivative financial assets and liabilities decreased $44.6 billion (-49%) and $38.9 billion (-46%) respectively driven by the maturity and/or
unwind of positions held in the prior period that were impacted by market rate movements, primarily the significant strengthening of the USD.
• Net loans and advances increased $17.7 billion (+3%) driven by home loan growth in the Australia Retail division ($10.1 billion), higher lending
volumes in the Institutional division ($1.8 billion), and the impact of foreign currency translation movements.
• Deposits and other borrowings increased $45.3 billion (+6%) driven by increases in customer deposits across the Institutional ($17.6 billion) and
Australia Retail ($6.4 billion) divisions, certificates of deposit ($10.5 billion), deposits from banks and repurchase agreements ($7.8 billion), and
the impact of foreign currency translation movements.
• Debt issuances increased $12.5 billion (+13%) driven by the issue of new senior and subordinated debt, including ANZ Capital Notes 8, and the
impact of foreign currency translation movements.

GROUP RESULTS


41
Liquidity Risk
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 relevant Boards.
Following the Restructure on 3 January 2023, the Group has operated under a non-operating holding company structure whereby:
• ANZBGL’s liquidity risk management framework remains unchanged and continues to operate its own liquidity and funding program, governance
frameworks and reporting regime reflecting its authorised deposit-taking institution (ADI) operations;
• ANZGHL (parent entity) has no material liquidity risk given the structure and nature of the balance sheet; and
• ANZ Non-Bank Group is not expected to have separate funding arrangements and will rely on ANZGHL for funding.
Furthermore, a separate liquidity policy has been established for ANZGHL and ANZ Bank Group to reflect the differing nature of liquidity risk inherent in
each business model. ANZGHL will ensure that the parent entity and ANZ Non-Bank Group holds sufficient cash reserves to meet operating and
financing requirements.
Separately, ANZ Bank Group’s approach to liquidity risk management incorporates two key components:
• Scenario modelling of funding sources
ANZBGL Group’s liquidity risk appetite is defined by the ability to meet a range of regulatory requirements and internal liquidity metrics mandated by
the ANZBGL 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.
Consistent with APRA’s requirement, ANZ’s CLF was nil at 31 March 2023 (Sep 22: $2.7 billion; Mar 22: $8.0 billion).
• Liquid assets
ANZBGL Group holds a portfolio of high quality unencumbered liquid assets in order to protect ANZBGL 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.
ANZBGL 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 ANZBGL Board.

Half Year Average
1


Movement

Mar 23
$B
Sep 22
$B
Mar 22
$B

Mar 23
v. Sep 22
Mar 23
v. Mar 22
Market Values Post Discount

HQLA1 253.5 228.2 224.1

11% 13%
HQLA2
9.7 8.3 7.6

17% 28%
Internal residential mortgage backed securities
2
- 0.3 3.2

large large
Other ALA
2
2.7 5.3 6.2

-49% -56%
Total liquid assets
265.9 242.1 241.1 10% 10%
Cash flows modelled under stress scenario

Cash outflows 268.8 245.9 230.3 9% 17%
Cash inflows
60.5 58.5 47.2 3% 28%
Net cash outflows
208.3 187.4 183.1 11% 14%
Liquidity Coverage Ratio
3, 4
128% 129% 132% -1% -4%
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 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.
4.
LCR remained above the regulatory minimum thresholds throughout the periods.

GROUP RESULTS


42
Funding
The ANZ Bank Group targets a diversified funding base, avoiding undue concentrations by investor type, maturity, market source and currency.
During the March 2023 half, the ANZ Bank Group issued $23.9 billion of term wholesale funding (excluding Additional Tier 1 Capital) with a remaining
term greater than one year as at 31 March 2023, and $1.5 billion of Additional Tier 1 Capital.
The following table shows the ANZ Bank Group’s total funding composition:

As at Movement
ANZ Bank Group
Mar 23
$B
Sep 22
$B
Mar 22
$B

Mar 23
v. Sep 22
Mar 23
v. Mar 22
Customer deposits and other liabilities
Australia Retail 156.4 150.0 147.0 4% 6%
Australia Commercial
113.0 112.2 116.4 1% -3%
Institutional
278.1 262.5 247.1 6% 13%
New Zealand
98.0 92.0 96.8 7% 1%
Pacific
3.6 3.8 3.8 -5% -5%
Group Centre
(0.1) (0.1) - 0% n/a
Customer deposits
649.0 620.4 611.1 5% 6%
Other funding liabilities
1
12.1 8.0 9.6 51% 26%
Total customer liabilities (funding)
661.1 628.4 620.7 5% 7%
Wholesale funding
Unsubordinated debt and central bank term funding
2
97.1 89.0 86.4 9% 12%
Subordinated debt
3
32.7 27.3 22.6 20% 45%
Certificates of deposit
44.5 34.0 36.9 31% 21%
Commercial paper
38.8 39.2 31.9 -1% 22%
Other wholesale borrowings
4
122.5 110.8 111.3 11% 10%
Total wholesale funding
335.6 300.3 289.1 12% 16%
Shareholders' equity 68.6 66.4 61.8 3% 11%
Total funding 1,065.3 995.1 971.6 7% 10%
1.
Includes interest accruals, payables and other liabilities, provisions and net tax provisions, and excludes liability for acceptances as they do not provide net funding.
2.
Includes RBA TFF of $20.1 billion (Sep 22: $20.1 billion; Mar 22: $20.1 billion), RBNZ FLP of $3.2 billion (Sep 22: $2.3 billion; Mar 22: $1.4 billion) and TLF of $0.3 billion
(Sep 22: $0.3 billion; Mar 22: $0.3 billion).
3.
Includes subordinated debt issued by ANZ Bank New Zealand which constitutes Tier 2 capital under RBNZ requirements but does not meet the APRA Tier 2 requirements, and USD 300
million perpetual subordinated notes which ceased to be treated as Basel 3 transitional Tier 2 capital under APRA’s capital framework from 1 January 2022.
4.
Includes borrowings from banks, securities sold under repurchase agreements, net derivative balances, special purpose vehicles, other borrowings, and RBA open repurchase
arrangements netted down by the corresponding exchange settlement account cash balance.

Net Stable Funding Ratio
The following table shows the Level 2 Net Stable Funding Ratio (NSFR) composition:

As at Movement

Mar 23
$B
Sep 22
$B
Mar 22
$B

Mar 23
v. Sep 22
Mar 23
v. Mar 22
Required Stable Funding
1

Retail & small and medium enterprises, corporate loans <35% risk weight
2
200.5 204.8 202.2 -2% -1%
Retail & small and medium enterprises, corporate loans >35% risk weight
2
221.3 198.2 190.7 12% 16%
Other lending
3
37.2 36.2 32.6 3% 14%
Liquid assets
13.1 12.0 11.5 9% 14%
Other assets
4
45.2 39.7 36.5 14% 24%
Total Required Stable Funding
517.3 490.9 473.5 5% 9%
Available Stable Funding
1

Retail & small and medium enterprise customer deposits 292.9 282.6 301.5 4% -3%
Corporate, public sector entities & operational deposits
136.9 132.7 118.4 3% 16%
Central bank & other financial institution deposits
4.7 4.8 4.0 -2% 18%
Term funding
5
71.3 63.1 69.7 13% 2%
Short term funding & other liabilities
8.5 7.7 5.0 10% 70%
Capital
99.4 93.5 84.2 6% 18%
Total Available Stable Funding
613.7 584.4 582.8 5% 5%
Net Stable Funding Ratio
6
119% 119% 123% 0% -4%
1.
NSFR factored balance as per APRA Prudential Regulatory Standard APS 210 Liquidity.
2.
Risk weighting as per APRA Prudential Regulatory Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk.
3.
Includes loans to financial institutions and central banks, and non-performing loans.
4.
Includes off-balance sheet items, net derivatives and other assets.
5.
Includes balances from the drawdown of the RBA and RBNZ Funding Facilities (TFF, FLP and TLF).
6.
The regulatory minimum NSFR is 100%.

GROUP RESULTS


43
Capital Management
ANZ’s capital management framework includes managing capital at Level 1, Level 2 and ANZGHL Group.
ANZ’s framework includes managing to Board approved risk appetite settings and maintaining all regulatory requirements. APRA requirements at Level 1
and Level 2 include ANZ operating at or above APRAs expectation for Domestic Systematically Important Banks (D-SIBs) following the implementation of
APRA’s Capital Reform which was effective January 2023.
APRA’s authority for ANZGHL to be a non-operating holding company (NOHC) of an ADI includes five conditions for ANZ’s capital management
framework. Two of these are quantitative requirements being:
• ANZGHL must always ensure that the quality and quantity of the total capital of the Level 3 group is equivalent to, or greater than, the quality and
quantity of the sum of the total capital of the consolidated ANZ Bank Group and the consolidated ANZ Non-Bank Group.
• ANZGHL must calculate and manage capital for the ANZ Non-Bank Group in accordance with an Economic Capital Model (ECM), which requires the
amount of capital held, in the form of Common Equity Tier 1 (CET1), to be equal to or greater than the capital requirement as calculated under the
ECM.
ANZ has implemented an ECM to calculate the capital to support the ANZ Non-Bank Group operations. The material risks included in the Non-Bank
Group currently are investment risk and fixed asset risk.
ANZ’s compliance with these two conditions is presented in the following two tables:
As at Mar 23 As at Sep 22 As at Mar 22 Movement

ANZ Bank
Group
1

$M
ANZ Non-
Bank
Group
$M
ANZGHL
$M
ANZ Group
$M
ANZ Group
$M
ANZ Group
$M
Mar 23
v. Sep 22
Mar 23
v. Mar 22
Shareholders' equity and non-controlling
interests
68,625 739 245 69,609 66,401 61,756

5% 13%
Prudential adjustments to shareholders'
equity
(358) - - (358) (175) 180 large large
Gross Common Equity Tier 1 capital
68,267 739 245 69,251 66,226 61,936 5% 12%
Deductions (10,887) - - (10,887) (10,354) (11,425) 5% -5%
Common Equity Tier 1 capital
57,380 739 245 58,364 55,872 50,511 4% 16%

Tier 1 capital 65,564 739 245 66,548 63,558 58,001 5% 15%
Tier 2 capital
24,068 - - 24,068 19,277 14,780 25% 63%
Total qualifying capital
89,632 739 245 90,616 82,835 72,781 9% 25%
1.
ANZ Bank Group shareholders’ equity and non-controlling interests are adjusted for capital deductions, including deconsolidated entity adjustments, to calculate ANZ Level 2 CET1, Tier 1,
Tier 2 and total qualifying capital.


ANZ Non-Bank Group
As at Mar 23

Economic Capital
Required
$M
Actual Capital
1
$M
Actual vs
Economic Capital
$M
ANZ Non-Bank Group 674 772 98
1.
This represents the aggregation of ANZ NBH Pty Ltd and ANZ Group Services Pty Ltd’s shareholders’ equity.