Suncorp Bank acquisition accounting impact 2H24

ANZ Group Holdings Limited
9/833 Collins Street Docklands Victoria 3008 Australia
ABN 16 659 510 791

News Release
For Release: 28 October 2024

Suncorp Bank one-off acquisition related accounting
adjustments impacting second half 2024 results

ANZ today provided an update on accounting related adjustments impacting the 2024
second half results arising from ANZ’s acquisition of Suncorp Bank on 31 July 2024.

The ANZ Banking Group 2024 second half Statutory and Cash Profit will be impacted by an
estimated net after tax charge of $196m in respect of one-off acquisition accounting related
adjustments, with a net ~2 bps reduction to ANZ’s Level 2 Common Equity Tier 1 (CET1)
Capital.

The acquisition accounting related adjustments outlined below had no impact on the
assessed value of the acquired Suncorp Bank business nor the purchase price paid.
1


The charge is comprised of:
• An accelerated software amortisation charge of $36m ($25m after tax)
This accelerated amortisation charge aligns Suncorp Bank’s software capitalisation policy
to ANZ’s.
• A Collectively Assessed Credit Impairment Charge (CIC) of $244m ($171m
after tax)
As required by the applicable accounting standards (AASB9 and AASB3):
Upon completion, the lending portfolio of Suncorp Bank was consolidated into the
ANZ Banking Group. Following this, ANZ was required to recognise the performing
loans from the Suncorp portfolio without acknowledging Suncorp’s pre-existing
provisions for expected credit losses (‘ECL’).
ANZ then had to establish an ECL allowance for the acquired portfolio using its own
methodology, a related credit impairment charge is recorded in the Income
Statement.
Since ANZ could not recognise the existing Suncorp Bank ECL under accounting
rules, the initial carrying value for that portfolio increased, leading to a proportional
reduction in acquisition-related goodwill.
This CIC does not reflect a change in the credit quality of the portfolio and therefore, it is
considered a one-time charge.

CONFERENCE CALL FOR ANALYSTS

Given the technical nature of this information, ANZ will host a conference call for analysts
and investors at 2pm today AEDT with its Group General Manager of Finance. Details will be
distributed separately.


1
The agreed purchase price was based on a fixed premium above Suncorp Bank net tangible assets which included a reduction for
Suncorp’s existing ECL provision.

HOW ANZ WILL REPORT SUNCORP BANK IN THE FULL YEAR 2024 RESULT

ANZ Group Holdings Limited second half 2024 results will be announced on Friday 8
November 2024.

In the FY24 reporting, Suncorp Bank will be presented as a separate division. Given the
second half result includes only two months of Suncorp Bank's earnings, the discussion
materials for some Group disclosures will be adjusted to reflect underlying trends excluding
the Suncorp Bank Division.


For media enquiries contact:
Lachlan McNaughton
Head of Media Relations
Tel: +61 457 494 414

Amanda Schultz
Media and Public Relations Manager
Tel: +61 401 532 325
For analyst enquiries contact:
Jill Campbell
Group General Manager, Investor Relations
Tel: +61 412 047 448

Cameron Davis
Executive Manager, Investor Relations
Tel: +61 421 613 819


Approved for distribution by ANZ’s Continuous Disclosure Committee