2025 Half Year Results Documents
ANZ Group Holdings Limited
ABN 16 659 510 791
Half Year
31 March 2025
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 the 2024 ANZ Group Holdings Limited 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 2025
Operating Results
1
AUD million
Statutory operating income
10% to 11,179
Statutory profit attributable to shareholders of the Company
7% to 3,642
Cash profit
2
0% to 3,568
Dividends
3
Cents
Franked
per
amount
share
per share
Proposed interim dividend
4
83
70%
Record date for determining entitlements to the proposed 2025 interim dividend 14 May 2025
Payment date for the proposed 2025 interim dividend 1 July 2025
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 2025
interim dividend. For the 2025 interim dividend, ANZ intends to provide shares under the DRP and BOP through the issue of new shares. The 'Acquisition
Price' to be used in determining the number of shares to be provided under the DRP and BOP will be calculated by reference to the arithmetic average of
the daily volume weighted average sale price of all fully paid ANZ ordinary shares sold in the ordinary course of trading on the ASX and Cboe Australia
during a pricing period commencing on 19 May 2025, and then rounded to the nearest whole cent. The Pricing Period will be 10 trading days. 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 2025 interim dividend must be received by ANZ's Share Registrar by 5.00pm
(Australian Eastern Standard Time) on 15 May 2025. 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 2025.
1.
Unless otherwise noted, all comparisons are to the consolidated financial information for the half year ended 31 March 2024.
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. As part of the
acquisition accounting relating to the Suncorp Bank acquisition, the Group recognised a number of intangible assets. The amortisation of these intangible assets is treated as a cash profit
adjustment. Apart from the change above, the non-core items are calculated consistently period on period and comprise economic hedging and similar accounting items that represent
timing differences that will reverse through earnings in the future. The net after tax gain adjusted from statutory profit to arrive at cash profit was $74 million. Refer to pages 73 to 75 for
further details.
3.
The unfranked portion of the proposed interim dividend will be sourced from the Group’s conduit foreign income account.
4.
It is proposed that the interim dividend of 83 cents will be partially franked at 70% for Australian tax purposes (30% tax rate) and carry New Zealand imputation credits of NZD 12 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 2025
CONTENTS PAGE
Disclosure Summary 5
Summary 7
Group Results 17
Divisional Results 49
Profit Reconciliation 73
Condensed Consolidated Financial Statements 77
Supplementary Information 119
Definitions 129
ASX Appendix 4D - Cross Reference Index 133
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, the consolidated entity, us, we, or our).
All amounts are in Australian dollars unless otherwise stated. The Condensed Consolidated Financial Statements were approved by resolution of the
Board of Directors on 7 May 2025.
DISCLAIMER & IMPORTANT NOTICE:
The material in the Results Announcement contains general background information about the Group’s activities current as at 7 May 2025. 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 the Group’s business operations, market conditions, results of operations and financial condition, capital adequacy, sustainability
objectives or targets, specific provisions and risk management practices. When used in the Results Announcement, the words ‘forecast’, ‘estimate’, ‘goal’,
‘target’, ‘indicator’, ‘plan’, ‘pathway’, ‘ambition’, ‘modelling’, ‘project’, ‘intend’, ‘anticipate’, ‘believe’, ‘expect’, ‘may’, ‘probability’, ‘risk’, ‘will’, ‘seek’, ‘would’,
‘could’, ‘should’ and similar expressions, as they relate to the Group and its management, are intended to identify forward-looking statements or opinions.
Those statements are usually predictive in character; and 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. The 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
This page has been left blank intentionally
DISCLOSURE SUMMARY
5
SUMMARY OF 2025 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
• 2025 Half Year Consolidated Financial Report, Dividend Announcement and Appendix 4D
• 2025 Half Year Results Investor Discussion Pack
• News Release
• Key Financial Data (available on ANZ Shareholder website only)
Australia and New Zealand Banking Group Limited
• 2025 Half Year Consolidated Financial Report
• 2025 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 Results 8
Statutory Profit Results 9
Cash Profit Results 10
Key Balance Sheet Metrics 11
Cash Profit Results (excl. Suncorp Bank) 12
Key Balance Sheet Metrics (excl. Suncorp Bank) 12
Cash Profit Results (Banking View) 13
Key Balance Sheet Metrics (Banking View) 15
Full Time Equivalent Staff 16
Other Non-Financial Information 16
SUMMARY
8
Guide to Results
NON-IFRS INFORMATION
Statutory profit is prepared in accordance with the recognition and measurement requirements of Australian Accounting Standards, which comply with
International Financial Reporting Standards (IFRS). The Group provides additional measures of performance in the Results 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 the Group’s preferred measure of the result of its core business activities, 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 pages 73 to 75 for analysis of the adjustments between statutory profit and cash profit and Definitions on pages 129 to 132 for
further details). The adjustments made in arriving at cash profit are included in statutory profit which is subject to review within the context of the external
auditor’s review of the Condensed Consolidated Financial Statements. Cash profit is not subject to review by the external auditor. As part of the
acquisition accounting relating to the Suncorp Bank acquisition, the Group recognised a number of intangible assets. The amortisation of these intangible
assets is treated as a cash profit adjustment. Except for the new item above, the cash profit adjustments have been determined on a consistent basis
across each period presented.
Pro-forma Results (excl. Suncorp Bank)
The reported results for the March 2025 and September 2024 halves include 6 months and 2 months results for Suncorp Bank respectively, presented as
Suncorp Bank division throughout the Results Announcement.
Pro-forma results excluding Suncorp Bank have been included where relevant to provide transparency and aid comparison.
Cash Profit Results (Banking View)
Cash profit results (Banking View) is provided to reflect the following three broader business activities of the Group:
• Banking includes Australia Retail, Australia Commercial, New Zealand, Institutional (excluding Markets business unit), Suncorp Bank and Pacific
divisions delivering lending, trade, deposits and payment services and is managed to optimise net interest margin and return on equity.
• Markets is complementary to the Banking business, acts as an intermediary for risk management solutions and is managed for revenue and to
optimise return on equity.
• Group Centre provides operational support and treasury functions, and is managed for cost efficiency and capital optimisation.
SUNCORP BANK ACQUISITION
On 31 July 2024, the Group acquired 100% of the shares in SBGH Limited, the immediate holding company of Norfina Limited (formerly known as
Suncorp-Metway Limited, and trading as Suncorp Bank).
During the March 2025 half, the Group progressed its purchase price allocation (PPA), to identify and measure the assets acquired and liabilities
assumed at acquisition date. The adjustments to provisionally determined balances arising from the PPA exercise included the recognition of core
deposit and brand intangible assets, fair value adjustments to gross loans and advances to reflect changes in interest rates and credit since loan
origination, provisions for contingent liabilities and related indemnities and related deferred tax balances with a corresponding decrease to goodwill of
$197 million. The impacts on the provisional balances as at 31 July 2024 are disclosed in Note 19 Suncorp Bank acquisition. Prior periods have not been
restated.
Suncorp Bank acquisition related adjustments
During the March 2025 half, the Group recognised an after-tax charge of $22 million for the following PPA related adjustments:
• Net interest income of $50 million ($35 million after tax) from unwinding of fair value adjustments recognised against loans and advances, deposits
and debt issuance over the residual maturities of the underlying financial assets and liabilities. This was recognised in the Suncorp Bank division.
• Amortisation of acquired intangible assets of $82 million ($57 million after tax). The acquisition of Suncorp Bank resulted in the recognition of
intangible assets of $685 million comprising core deposit and brand intangibles, which are being amortised over their useful lives ranging between 3
to 6 years. This charge was recognised as an adjustment between statutory profit and cash profit. The amortisation is removed from cash profit as
the assets and associated amortisation only arise through acquisition accounting and would not occur in the ordinary course of business.
During the September 2024 half, the Group recognised an after-tax charge of $196 million for the following acquisition related adjustments:
• Collectively assessed credit impairment charge of $244 million ($171 million after tax) for Suncorp Bank’s performing loans and advances. In
accordance with Australian Accounting Standards requirements, the Group consolidated Suncorp Bank’s loans and advances on 31 July 2024,
however the Group was not permitted to recognise an allowance for ECL on the performing loans and advances, leading to a proportional reduction
in acquisition-related goodwill that would otherwise have been recognised. Subsequently, the Group was required to recognise a collectively
assessed allowance for ECL estimated using the Group’s ECL methodologies, with a corresponding collectively assessed credit impairment charge
recognised in the Group’s Income Statement. This was recognised in the Suncorp Bank division.
• Accelerated software amortisation expense of $36 million ($25 million after tax) on alignment to the Group’s software capitalisation policy. This was
recognised in the Suncorp Bank division.
SUMMARY
9
Statutory Profit Results
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Net interest income
8,869 8,170 7,899
9% 12%
Other operating income
2,310 2,232 2,246
3% 3%
Operating income
11,179 10,402 10,145
7% 10%
Operating expenses
(5,824) (5,526) (5,215)
5% 12%
Profit before credit impairment and income tax
5,355 4,876 4,930
10% 9%
Credit impairment (charge)/release
(145) (336) (70)
-57% large
Profit before income tax
5,210 4,540 4,860
15% 7%
Income tax expense
(1,547) (1,391) (1,439)
11% 8%
Non-controlling interests
(21) (21) (14)
0% 50%
Profit attributable to shareholders of the Company
3,642 3,128 3,407
16% 7%
Earnings Per Ordinary Share (cents)
Half Year
Movement
Mar 25 Sep 24 Mar 24
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Basic
122.5 104.4 113.5
17% 8%
Diluted
119.3 103.1 111.5 16% 7%
Half Year
Reference
Page
Mar 25 Sep 24 Mar 24
Ordinary Share Dividends (cents)
1,2
Interim
- partially franked 83 - 83
Final
- partially franked
- 83 -
Total 90
83 83 83
Ordinary share dividend payout ratio
3
90 67.7% 79.0% 73.3%
Profitability Ratios
Return on average ordinary shareholders' equity
4
10.4% 9.1% 9.7%
Return on average assets
0.55% 0.53% 0.59%
Net interest margin
1.56% 1.58% 1.56%
Net interest income to average credit RWA
4.78% 4.68% 4.55%
Efficiency Ratios
Operating expenses to operating income 52.1% 53.1% 51.4%
Operating expenses to average assets
0.89% 0.94% 0.90%
Credit Impairment Char
ge/(Release)
Individually assessed credit impairment charge/(release) ($M) 159 106 38
Collectively assessed credit impairment charge/(release) ($M)
5
(14) 230 32
Total credit impairment charge/(release) ($M) 97
145 336 70
Individually assessed credit impairment charge/(release) as a % of average gross loans and advances
6
0.04% 0.03% 0.01%
Total credit impairment charge/(release) as a % of average gross loans and advances
6
0.04% 0.09% 0.02%
1.
Partially franked at 70% for Australian tax purposes (30% tax rate) for the proposed 2025 interim dividend (2024 final dividend: partially franked at 70%; 2024 interim dividend: partially
franked at 65%).
2.
Carry New Zealand imputation credits of NZD 12 cents for the proposed 2025 interim dividend (2024 final dividend: NZD 12 cents; 2024 interim dividend: NZD 12 cents).
3.
Dividend payout ratio for the March 2025 half is calculated using the proposed 2025 interim dividend of $2,466 million, based on the forecast number of ordinary shares on issue at the
dividend record date. Dividend payout ratios for the September 2024 and March 2024 halves were calculated using actual dividends of $2,472 million and $2,496 million respectively.
4.
Average ordinary shareholders’ equity excludes non-controlling interests.
5.
Includes Suncorp Bank acquisition related collectively assessed credit impairment charge of $244 million for the September 2024 half (refer to Guide to Results on page 8 for further
information).
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
10
Cash Profit Results
1
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Net interest income
8,869 8,170 7,899
9% 12%
Other operating income
2,126 2,292 2,448
-7% -13%
Operating income
10,995 10,462 10,347
5% 6%
Operating expenses
(5,742) (5,526) (5,215)
4% 10%
Cash profit before credit impairment and income tax
5,253 4,936 5,132
6% 2%
Credit impairment (charge)/release
(145) (336) (70)
-57% large
Cash profit before income tax
5,108 4,600 5,062
11% 1%
Income tax expense
(1,519) (1,406) (1,496)
8% 2%
Non-controlling interests
(21) (21) (14)
0% 50%
Cash profit
3,568 3,173 3,552
12% 0%
Earnings Per Ordinary Share (cents) Half Year
Movement
Mar 25 Sep 24 Mar 24
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Basic 120.1 105.9 118.3 13% 2%
Diluted
117.0 104.5 116.0 12% 1%
Half Year
Reference
Pa
ge Mar 25 Sep 24 Mar 24
Ordinary Share Dividends
Ordinary share dividend payout ratio
2
69.1% 77.9% 70.3%
Profitability Ratios
Return on average ordinary shareholders' equity
3
10.2% 9.2% 10.1%
Return on average assets
0.54% 0.54% 0.61%
Return on average RWA
1.55% 1.44% 1.65%
Net interest margin
1.56% 1.58% 1.56%
Net interest margin (Banking)
2.38% 2.44% 2.50%
Net interest income to average credit RWA
4.78% 4.68% 4.55%
Net interest income to average credit RWA (Banking)
5.22% 5.17% 5.04%
Efficienc
y Ratios
Operating expenses to operating income
52.2% 52.8% 50.4%
Operating expenses to average assets
0.87% 0.94% 0.90%
Credit Impairment Charge/(Release)
Individually assessed credit impairment charge/(release) ($M)
159 106 38
Collectively assessed credit impairment charge/(release) ($M)
4
(14) 230 32
Total credit impairment charge/(release) ($M)
28 145 336 70
Individually assessed credit impairment charge/(release) as a % of average gross loans and advances
5
0.04% 0.03% 0.01%
Total credit impairment charge/(release) as a % of average gross loans and advances
5
0.04% 0.09% 0.02%
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 73 to
75 for the reconciliation between statutory and cash profit.
2.
Dividend payout ratio for the March 2025 half is calculated using the proposed 2025 interim dividend of $2,466 million, based on the forecast number of ordinary shares on issue at the
dividend record date. Dividend payout ratios for the September 2024 and March 2024 halves were calculated using actual dividends of $2,472 million and $2,496 million respectively.
3.
Average ordinary shareholders’ equity excludes non-controlling interests.
4.
Includes Suncorp Bank acquisition related collective assessed credit impairment charge of $244 million for the September 2024 half (refer to Guide to Results on page 8 for further
information).
5.
Credit impairment charge/(release) used in the ratio relates to gross loans and advances and off-balance sheet commitments - undrawn and contingent liabilities.
SUMMARY
11
Key Balance Sheet Metrics
As at Movement
Reference
Page
Mar 25 Sep 24 Mar 24
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Capital Management (Level 2)
Common Equity Tier 1
- APRA 45
11.8% 12.2% 13.5%
- Basel Harmonised 45
17.0% 17.6% 19.7%
Credit risk weighted assets ($B) 46
378.1 361.2 348.4 5% 9%
Total risk weighted assets ($B) 46
469.0 446.6 432.8 5% 8%
APRA Leverage Ratio 47
4.4% 4.7% 5.4%
Balance Sheet: Key Items
Gross loans and advances ($B) 824.0 807.1 718.7 2% 15%
Net loans and advances ($B)
820.2 803.4 715.2 2% 15%
Total assets ($B)
1,302.6 1,229.1 1,089.7 6% 20%
Customer deposits ($B)
756.6 715.2 641.1 6% 18%
Total shareholders' equity ($B)
72.3 70.6 71.1 2% 2%
Half Year Movement
Balance Sheet: Avera
ge Balances
Mar 25
$B
Sep 24
$B
Mar 24
$B
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Average gross loans and advances 825.2 753.6 714.0 10% 16%
Average assets
1,318.0 1,181.7 1,163.0 12% 13%
Average customer deposits
749.2 675.2 663.6 11% 13%
Average ordinary shareholders' equity
1
70.5 68.9 70.3 2% 0%
Average interest earning assets
1,142.1 1,031.6 1,015.6 11% 12%
Average deposits and other borrowings
956.0 857.9 859.8 11% 11%
Average RWA
462.1 439.4 430.8 5% 7%
Average credit RWA
372.1 349.2 347.3 7% 7%
As at Movement
Liquidit
y and Funding
Reference
Page Mar 25 Sep 24 Mar 24
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Liquidity Coverage Ratio
2
42 132% 132% 134% 0% -2%
Net Stable Funding Ratio 43
117% 116% 118% 1% -1%
As at Movement
Impaired Assets
Reference
Page
Mar 25 Sep 24 Mar 24
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Gross impaired assets ($M) 33 2,252 1,693 1,518 33% 48%
Gross impaired assets as a % of gross loans and advances
0.27% 0.21% 0.21%
Net impaired assets ($M) 33
1,888 1,385 1,193 36% 58%
Net impaired assets as a % of shareholders' equity
2.61% 1.96% 1.68%
Individually assessed provision ($M) 31
364 308 325 18% 12%
Individually assessed provision as a % of gross impaired assets
16.2% 18.2% 21.4%
Collectively assessed provision ($M) 31
4,280 4,247 4,046 1% 6%
Collectively assessed provision as a % of credit risk weighted assets
1.13% 1.18% 1.16%
Net Tangible Assets
Net tangible assets attributable to ordinary shareholders ($B)
3
65.7 64.3 66.3 2% -1%
Net tangible assets per ordinary share ($)
22.14 21.60 22.05 3% 0%
1.
Average ordinary shareholders’ equity excludes non-controlling interests.
2.
Liquidity Coverage Ratio is calculated on a half year average basis.
3.
Equals total shareholders’ equity less total non-controlling interests, goodwill and other intangible assets.
SUMMARY
12
Cash Profit Results (excl. Suncorp Bank)
The reported results for the March 2025 and the September 2024 halves include 6 months and 2 months results for Suncorp Bank respectively. Pro-
forma results excluding Suncorp Bank have been presented below to aid comparison.
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Net interest income
8,046 7,919 7,899
2% 2%
Other operating income
2,096 2,286 2,448
-8% -14%
Operating income
10,142 10,205 10,347
-1% -2%
Operating expenses
(5,309) (5,338) (5,215)
-1% 2%
Cash profit before credit impairment and income tax
4,833 4,867 5,132
-1% -6%
Credit impairment (charge)/release
(134) (93) (70)
44% 91%
Cash profit before income tax
4,699 4,774 5,062
-2% -7%
Income tax expense
(1,396) (1,458) (1,496)
-4% -7%
Non-controlling interests
(21) (21) (14)
0% 50%
Cash profit (excl. Suncorp Bank)
3,282 3,295 3,552
0% -8%
Key Balance Sheet Metrics (excl. Suncorp Bank)
As at Movement
Balance Sheet: Key Items (excl. Suncorp Bank)
Mar 25
$B
Sep 24
$B
Mar 24
$B
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Net loans and advances 748.7 732.5 715.2 2% 5%
Deposits and other borrowings
908.8 841.2 806.7 8% 13%
Total risk weighted assets
435.7 413.2 432.8 5% 1%
SUMMARY
13
Cash Profit Results (Banking View)
Cash profit results (Banking View) is provided to reflect the following three broader business activities of the Group: Banking (which includes the Australia
Retail, Australia Commercial, New Zealand, Institutional (excluding Markets business unit), Suncorp Bank and Pacific divisions), Markets and Group
Centre.
March 2025 Half Year
Banking
$M
Markets
$M
Group Centre
$M
Group
$M
Net interest income
8,599 82 188 8,869
Other operating income
1,084 991 51 2,126
Operating income
9,683 1,073 239 10,995
Operating expenses (4,584) (605) (553) (5,742)
Cash profit before credit impairment and income tax
5,099 468 (314) 5,253
Credit impairment (charge)/release (156) 11 - (145)
Cash profit before income tax
4,943 479 (314) 5,108
Income tax (expense)/benefit (1,446) (137) 64 (1,519)
Non-controlling interests
(1) - (20) (21)
Cash profit
3,496 342 (270) 3,568
Ratios
Return on average ordinary shareholders' equity (%)
1
13.9% 10.1% n/a 10.2%
Return on average RWA (%)
1.82% 1.22% n/a 1.55%
Net interest margin (%)
2.38% n/a n/a 1.56%
Operating expenses to operating income (%)
47.3% 56.4% n/a 52.2%
March 2024 Half Year
Banking
$M
Markets
$M
Group Centre
$M
Group
$M
Net interest income 7,769 (64) 194 7,899
Other operating income 1,133 1,276 39 2,448
Operating income 8,902 1,212 233 10,347
Operating expenses (4,092) (597) (526) (5,215)
Cash profit before credit impairment and income tax 4,810 615 (293) 5,132
Credit impairment (charge)/release (68) (2) - (70)
Cash profit before income tax 4,742 613 (293) 5,062
Income tax (expense)/benefit (1,380) (171) 55 (1,496)
Non-controlling interests (1) - (13) (14)
Cash profit 3,361 442 (251) 3,552
Ratios
Return on average ordinary shareholders' equity (%)
1
14.5% 13.0% n/a 10.1%
Return on average RWA (%) 1.83% 1.62% n/a 1.65%
Net interest margin (%) 2.50% n/a n/a 1.56%
Operating expenses to operating income (%) 46.0% 49.3% n/a 50.4%
March 2025 Half Year v March 2024 Half Year Banking Markets Group Centre Group
Net interest income 11% large -3% 12%
Other operating income -4% -22% 31% -13%
Operating income 9% -11% 3% 6%
Operating expenses 12% 1% 5% 10%
Cash profit before credit impairment and income tax 6% -24% 7% 2%
Credit impairment (charge)/release large large n/a large
Cash profit before income tax 4% -22% 7% 1%
Income tax (expense)/benefit 5% -20% 16% 2%
Non-controlling interests 0% n/a 54% 50%
Cash profit 4% -23% 8% 0%
1.
For Banking and Markets, capital is allocated based on regulatory capital. At the Group level, this is based on ordinary shareholders’ equity (excluding non-controlling interests).
SUMMARY
14
Cash Profit Results (Banking View), cont’d
March 2025 Half Year
Banking
$M
Markets
$M
Group Centre
$M
Group
$M
Net interest income
8,599 82 188 8,869
Other operating income
1,084 991 51 2,126
Operating income
9,683 1,073 239 10,995
Operating expenses (4,584) (605) (553) (5,742)
Cash profit before credit impairment and income tax
5,099 468 (314) 5,253
Credit impairment (charge)/release (156) 11 - (145)
Cash profit before income tax
4,943 479 (314) 5,108
Income tax (expense)/benefit (1,446) (137) 64 (1,519)
Non-controlling interests
(1) - (20) (21)
Cash profit
3,496 342 (270) 3,568
Ratios
Return on average ordinary shareholders' equity (%)
1
13.9% 10.1% n/a 10.2%
Return on average RWA (%)
1.82% 1.22% n/a 1.55%
Net interest margin (%)
2.38% n/a n/a 1.56%
Operating expenses to operating income (%)
47.3% 56.4% n/a 52.2%
September 2024 Half Year
Banking
$M
Markets
$M
Group Centre
$M
Group
$M
Net interest income 8,007 (67) 230 8,170
Other operating income 1,202 1,039 51 2,292
Operating income 9,209 972 281 10,462
Operating expenses (4,334) (577) (615) (5,526)
Cash profit before credit impairment and income tax 4,875 395 (334) 4,936
Credit impairment (charge)/release (326) (8) (2) (336)
Cash profit before income tax 4,549 387 (336) 4,600
Income tax (expense)/benefit (1,345) (112) 51 (1,406)
Non-controlling interests (1) - (20) (21)
Cash profit 3,203 275 (305) 3,173
Ratios
Return on average ordinary shareholders' equity (%)
1
13.6% 8.1% n/a 9.2%
Return on average RWA (%) 1.76% 1.01% n/a 1.44%
Net interest margin (%) 2.44% n/a n/a 1.58%
Operating expenses to operating income (%) 47.1% 59.4% n/a 52.8%
March 2025 Half Year v September 2024 Half Year Banking Markets Group Centre Group
Net interest income 7% large -18% 9%
Other operating income -10% -5% 0% -7%
Operating income 5% 10% -15% 5%
Operating expenses 6% 5% -10% 4%
Cash profit before credit impairment and income tax 5% 18% -6% 6%
Credit impairment (charge)/release -52% large large -57%
Cash profit before income tax 9% 24% -7% 11%
Income tax (expense)/benefit 8% 22% 25% 8%
Non-controlling interests 0% n/a 0% 0%
Cash profit 9% 24% -11% 12%
1.
For Banking and Markets, capital is allocated based on regulatory capital. At the Group level, this is based on ordinary shareholders’ equity (excluding non-controlling interests).
SUMMARY
15
Key Balance Sheet Metrics (Banking View)
As at March 2025
Banking Markets Group Centre Group
Balance Sheet: Key Items
Net loans and advances ($B)
779.9 40.9 (0.6) 820.2
Customer deposits ($B)
623.3 134.6 (1.3) 756.6
Total risk weighted assets ($B)
388.6 54.5 25.9 469.0
Balance Sheet: Average Balance
Average interest earning assets ($B)
726.0 363.7 52.4 1,142.1
As at September 2024
Bankin
g Markets Group Centre Group
Balance Sheet: Key Items
Net loans and advances ($B) 756.4 47.6 (0.6) 803.4
Customer deposits ($B) 607.0 109.7 (1.5) 715.2
Total risk weighted assets ($B) 377.6 50.8 18.2 446.6
Balance Sheet: Average Balance
Average interest earning assets ($B) 655.9 340.2 35.5 1,031.6
As at March 2024
Bankin
g Markets Group Centre Group
Balance Sheet: Key Items
Net loans and advances ($B) 670.6 45.2 (0.6) 715.2
Customer deposits ($B) 543.2 98.2 (0.3) 641.1
Total risk weighted assets ($B) 362.3 56.3 14.2 432.8
Balance Sheet: Average Balance
Average interest earning assets ($B) 620.6 331.0 64.0 1,015.6
March 2025 Half Year v September 2024 Half Year
Banking Markets Group Centre Group
Balance Sheet: Key Items
Net loans and advances ($B) 3% -14% 0% 2%
Customer deposits ($B) 3% 23% -13% 6%
Total risk weighted assets ($B) 3% 7% 42% 5%
Balance Sheet: Average Balance
Average interest earning assets ($B) 11% 7% 48% 11%
March 2025 Half Year v March 2024 Half Year
Bankin
g Markets Group Centre Group
Balance Sheet: Key Items
Net loans and advances ($B) 16% -10% 0% 15%
Customer deposits ($B) 15% 37% large 18%
Total risk weighted assets ($B) 7% -3% 82% 8%
Balance Sheet: Average Balance
Average interest earning assets ($B) 17% 10% -18% 12%
SUMMARY
16
Full Time Equivalent Staff
As at 31 March 2025, the Group employed 43,094 staff (Sep 24: 42,370; Mar 24: 40,262) on a full time equivalent (FTE) basis.
Division
As at
Movement
Mar 25 Sep 24 Mar 24
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Australia Retail 10,950 10,832 11,383 1% -4%
Australia Commercial
3,361 3,294 3,442 2% -2%
Institutional
6,460 6,272 6,310 3% 2%
New Zealand
6,680 6,756 6,754 -1% -1%
Suncorp Bank
2,791 2,798 - 0% n/a
Pacific
1,014 985 972 3% 4%
Group Centre
11,838 11,433 11,401 4% 4%
Total FTE
43,094 42,370 40,262 2% 7%
Average FTE 42,591 40,855 40,392 4% 5%
Total FTE (excl. Suncorp Bank) 40,303 39,572 40,262 2% 0%
Average FTE (excl. Suncorp Bank) 39,953 39,957 40,392 0% -1%
Geography
As at
Movement
Mar 25 Sep 24 Mar 24
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Australia 21,479 21,290 19,335 1% 11%
New Zealand
6,903 7,003 7,185 -1% -4%
Rest of World
14,712 14,077 13,742 5% 7%
Total FTE
43,094 42,370 40,262 2% 7%
Other Non-Financial Information
Half Year
Movement
Shareholder value - ordinar
y shares
Mar 25 Sep 24 Mar 24
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Share price ($)
- high
32.80 31.94 29.90 3% 10%
- low
27.89 27.10 23.90 3% 17%
- closing
29.09 30.48 29.40 -5% -1%
Closing market capitalisation of ordinary shares ($B)
86.4 90.8 88.4 -5% -2%
Total shareholder return
-2.0% 6.7% 19.0% large large
As at Mar 25
ANZBGL credit ratin
gs
Short-
Term
Long-
Term Outlook
Moody's Investors Service P-1 Aa2 Stable
S&P Global Ratings A-1+ AA- Stable
Fitch Ratings F1+ AA- Stable
GROUP RESULTS
17
CONTENTS Page
Cash Profit 18
Cash Net Interest Income 19
Cash Other Operating Income 22
Cash Operating Expenses 25
Investment Spend 27
Software Capitalisation 27
Credit Risk 28
Cash Income Tax Expense 36
Impact of Foreign Currency Translation 37
Earnings Related Hedges 39
Cash Earnings Per Share 39
Dividends 40
Condensed Balance Sheet 41
Liquidity Risk 42
Funding 43
Capital Management 44
Leverage Ratio 47
Capital Management - Other Developments 48
GROUP RESULTS
18
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 Results Announcement which are prepared on a basis other than in accordance
with accounting standards. The guidance provided in ASIC Regulatory Guide 230 has been followed when presenting this information.
Cash Profit
Cash profit, a non-IFRS measure, represents the Group’s preferred measure of the result of its core business activities, 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 pages 73 to 75 for analysis of the adjustments between statutory profit and cash profit and to Definitions on pages 129 to 132 for
further details). The adjustments made in arriving at cash profit are included in statutory profit which is subject to review within the context of the external
auditor’s review of the Condensed Consolidated Financial Statements. Cash profit is not subject to review by the external auditor. As part of the
acquisition accounting relating to the Suncorp Bank acquisition, the Group recognised a number of intangible assets. The amortisation of these intangible
assets is treated as a cash profit adjustment. Apart from the new item above, the 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 unless otherwise stated.
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Statutory profit attributable to shareholders of the Company
3,642 3,128 3,407 16% 7%
Adjustments between statutory profit and cash profit
Economic hedges
(167) 67 197 large large
Revenue and expense hedges
36 (22) (52) large large
Amortisation of acquired intangible assets
57 - - n/a n/a
Total adjustments between statutory profit and cash profit
(74) 45 145 large large
Cash profit 3,568 3,173 3,552 12% 0%
Group performance - cash profit
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Net interest income 8,869 8,170 7,899 9% 12%
Other operating income
2,126 2,292 2,448 -7% -13%
Operating income
10,995 10,462 10,347 5% 6%
Operating expenses (5,742) (5,526) (5,215) 4% 10%
Cash profit before credit impairment and income tax
5,253 4,936 5,132 6% 2%
Credit impairment (charge)/release (145) (336) (70) -57% large
Cash profit before income tax
5,108 4,600 5,062 11% 1%
Income tax expense (1,519) (1,406) (1,496) 8% 2%
Non-controlling interests
(21) (21) (14) 0% 50%
Cash profit
3,568 3,173 3,552 12% 0%
Cash profit (excl. Suncorp Bank) 3,282 3,295 3,552 0% -8%
Half Year Movement
Cash profit/(loss) by division
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Australia Retail
705 813 794
-13% -11%
Australia Commercial
655 677 665
-3% -2%
Institutional
1,380 1,336 1,522 3% -9%
New Zealand
792 745 791 6% 0%
Suncorp Bank
286 (122) - large n/a
Pacific
20 29 31 -31% -35%
Group Centre
(270) (305) (251) -11% 8%
Cash profit
3,568 3,173 3,552 12% 0%
GROUP RESULTS
19
Cash Net Interest Income
Half Year
Movement
Group
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Net interest income
1
8,869 8,170 7,899 9% 12%
Average interest earning assets
1,142,128 1,031,611 1,015,621 11% 12%
Average deposits and other borrowings
956,023 857,919 859,764 11% 11%
Net interest margin (%)
1.56 1.58 1.56 -2 bps 0 bps
Banking business, which offers lending, trade, deposits, and payment services to retail, commercial and institutional customers, is managed to optimise
net interest margin and return on equity. For ANZ, Banking business includes the Australia Retail, Australia Commercial, New Zealand, Institutional
(excluding Markets business unit), Suncorp Bank and Pacific divisions. Banking net interest margins are disclosed below to explain the underlying drivers
of the Group’s net interest margins. The Markets business unit and Group Centre division are excluded from Banking net interest margin to remove
volatility that is not reflective of the underlying drivers of net interest margin movements.
Half Year
Movement
Banking
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Net interest income 8,599 8,007 7,769 7% 11%
Average interest earning assets
725,955 655,895 620,642 11% 17%
Average deposits and other borrowings
637,311 583,507 554,269 9% 15%
Net interest margin (%)
2.38 2.44 2.50 -6 bps -12 bps
Half Year
Movement
Net interest margin by major division
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Australia Retail
Net interest margin (%) - cash
1.84 1.89 1.94
-5 bps -10 bps
Average interest earning assets
282,858 277,098 269,406
2% 5%
Average deposits and other borrowings
180,088 174,248 168,912
3% 7%
Australia Commercial
2
Net interest margin (%) - cash
2.53 2.59 2.60
-6 bps -7 bps
Average interest earning assets
65,943 65,482 63,623
1% 4%
Average deposits and other borrowings
120,150 116,314 115,357
3% 4%
Institutional (excl. Markets business unit)
Net interest margin (%) - cash
3
2.24 2.36 2.39
-12 bps -15 bps
Average interest earning assets
174,548 162,905 162,856
7% 7%
Average deposits and other borrowings
164,903 162,563 159,851
1% 3%
New Zealand
Net interest margin (%) - cash
2.60 2.57 2.56
3 bps 4 bps
Average interest earning assets
122,635 122,283 122,613
0% 0%
Average deposits and other borrowings
105,628 105,751 106,417 0% -1%
Suncorp Bank
Net interest margin (%) - cash
2.12 1.93 -
19 bps n/a
Average interest earning assets
4
77,792 26,023 -
large n/a
Average deposits and other borrowings
4
62,837 20,976 - large n/a
1.
Includes the major bank levy of -$220 million for the March 2025 half (Sep 24 half: -$197 million; Mar 24 half: -$192 million).
2.
Australia Commercial division generates positive net interest income from surplus deposits held. Accordingly, $60.1 billion of average deposits for the March 2025 half (Sep 24 half:
$57.0 billion; Mar 24 half: $58.1 billion) have been included within average net interest earning assets for the net interest margin calculation to align with the internal management reporting
view.
3.
Net interest margin for the Institutional division including the Markets business unit was 0.76% for the March 2025 half (Sep 24 half: 0.74%; Mar 24 half: 0.76%).
4.
September 2024 half was based on 2 months of balances from the date of acquisition.
GROUP RESULTS
20
Banking net interest margin - March 2025 Half Year v March 2024 Half Year
• March 2025 v March 2024
Banking net interest margin (-12 bps)
• Assets pricing (-1 bps): driven by pricing competition in the Australia Retail, Australia Commercial and Institutional (excluding Markets business
unit) divisions, partially offset by favourable home loan lending margin in the New Zealand division.
• Deposits pricing (-4 bps): driven by pricing competition in the New Zealand division.
• Wholesale funding (-3 bps): driven by higher funding volumes and funding spreads.
• Assets and funding mix (-3 bps): driven by unfavourable deposit mix with a shift towards lower margin term deposits, and higher lending growth in
the Institutional (excluding Markets business unit) division relative to other divisions.
• Capital and replicating portfolio (+4 bps): driven by higher interest rates, partially offset by lower volumes, and reduction in capital due to the
completion of Suncorp Bank acquisition and share buy-back.
• Other (-5 bps): impact to Banking net interest margin from a range of factors including the acquisition of Suncorp Bank and higher customer
remediation.
Banking average interest earning assets
• Banking average interest earning assets increased $105.3 billion (17%) driven by the impact of Suncorp Bank acquisition, and lending growth in
the Australia Retail and Institutional (excluding Markets business unit) divisions. This was partially offset by the impact of foreign currency
translation.
Banking average deposits and other borrowings
• Banking average deposits and other borrowings increased $83.0 billion (15%) driven by the impact of Suncorp Bank acquisition, and growth in at-
call deposits and term deposits. This was partially offset by decreases in repurchase agreements and commercial paper, and the impact of
foreign currency translation.
GROUP RESULTS
21
Banking net interest margin - March 2025 Half Year v September 2024 Half Year
• March 2025 v September 2024
Banking net interest margin (-6 bps)
• Assets pricing (0 bps): pricing competition in the Australia Retail, Australia Commercial and Institutional (excluding Markets business unit)
divisions, offset by favourable home loan lending margin in the New Zealand division.
• Deposits pricing (-2 bps): driven by pricing competition in the New Zealand division, partially offset by margin improvement in the Australia Retail
division.
• Wholesale funding (-2 bps): driven by higher funding volumes and funding spreads.
• Assets and funding mix (-1 bps): driven by higher lending growth in the Institutional (excluding Markets business unit) division relative to other
divisions.
• Capital and replicating portfolio (+2 bps): driven by higher interest rates, partially offset by lower volumes.
• Other (-3 bps): impact to Banking net interest margin from a range of factors including the acquisition of Suncorp Bank and higher customer
remediation.
Banking average interest earning assets
• Banking average interest earning assets increased $70.0 billion (11%) driven by the impact of Suncorp Bank acquisition, lending growth in the
Australia Retail and Institutional (excluding Markets business unit) divisions, and impacts of foreign currency translation.
Banking average deposits and other borrowings
• Banking average deposits and other borrowings increased $53.8 billion (9%) driven by the impact of Suncorp Bank acquisition, growth in at-call
deposits and term deposits, and the impact of foreign currency translation. This was partially offset by decreases in repurchase agreements and
commercial paper.
GROUP RESULTS
22
Cash Other Operating Income
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Net fee and commission income
1
855 956 919 -11% -7%
Markets other operating income
991 1,039 1,276 -5% -22%
Other
1,2
280 297 253 -6% 11%
Total
2,126 2,292 2,448 -7% -13%
Total (excl. Suncorp Bank) 2,096 2,286 2,448 -8% -14%
Half Year Movement
Other operatin
g income by division
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Australia Retail
269 363 301 -26% -11%
Australia Commercial
153 173 169 -12% -9%
Institutional
1,386 1,461 1,687 -5% -18%
New Zealand
193 191 208 1% -7%
Suncorp Bank
30 6 - large n/a
Pacific
44 47 44 -6% 0%
Group Centre
51 51 39 0% 31%
Total
2,126 2,292 2,448 -7% -13%
The Markets business unit is managed on a total revenue basis, with volatility in the Net interest income component not being a true reflection of overall
return for the business. Markets Net interest income and Other operating income are summarised in the table below with corresponding commentaries
provided on a total Markets income basis.
Half Year Movement
Markets income
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Net interest income
3
82 (67) (64) large large
Other operating income
3
991 1,039 1,276 -5% -22%
Total
1,073 972 1,212 10% -11%
1.
Excluding the Markets business unit.
2.
Including Share of associates’ profit/(loss) of $38 million for the March 2025 half (Sep 24 half: $21 million; Mar 24 half: $84 million).
3.
Net interest income includes funding costs in the Franchise trading book, primarily on commodity assets, where the related revenue is recognised as Other operating income.
GROUP RESULTS
23
Other operating income - March 2025 Half Year v March 2024 Half Year
• March 2025 v March 2024
Other operating income decreased $322 million (13%). Excluding Suncorp Bank, Other operating income decreased $352 million (14%).
Net fee and commission income
Net fee and commission income decreased $64 million (7%) driven by:
• $32 million decrease in the Australia Retail division driven by higher customer remediation.
• $30 million decrease in the Institutional division (excluding Markets business unit) driven by lower non-lending fees in Corporate Finance.
• $14 million decrease in the New Zealand division driven by lower non-lending fees.
• $21 million increase from the impact of Suncorp Bank acquisition.
Markets income
Markets income decreased $139 million (11%) with a $285 million decrease in Other operating income, partially offset by a $146 million increase in
Net interest income. The net $139 million decrease was attributable to the following business activities:
• $119 million decrease in Franchise Revenue across all business lines amid more challenging trading conditions. Commodities revenue
decreased due to varied trading conditions in precious metals. Foreign Exchange revenues decreased as higher customer activity was more than
offset by lower trading gains in the context of market uncertainty. Rates revenue decreased due to more challenging trading conditions in
international markets. Credit and Capital Markets revenue decreased as market participants considered the potential for credit spreads to widen,
partially offset by sustained customer issuance activity.
• $37 million decrease in Derivative valuation adjustments driven by lower gains (net of hedges) from credit and funding spread movements.
• $17 million increase in Balance Sheet revenues from higher average levels of investment securities and increased yields, partially offset by fewer
short-term interest rate changes.
Other
Other income increased $27 million (+11%) driven by:
• $14 million increase in the Institutional (excluding Markets business unit) division predominantly driven by higher foreign exchange-related
earnings in Transaction Banking, Corporate Finance and Central Functions.
• $11 million increase in the Group Centre division driven by:
- $45 million increase from higher realised gains on economic hedges against foreign currency denominated revenue streams offsetting net
unfavourable foreign currency translations elsewhere in the Group,
- $21 million increase from a loss on disposal of investment in AMMB Holdings Berhad (AmBank) in the March 2024 half,
- $45 million decrease in Share of associates’ profit/(loss) driven by the loss of equity accounted earnings following the disposal of AmBank
($65 million), partially offset by an increase in P.T. Bank Pan Indonesia (Panin) ($23 million).
• $9 million increase from the impact of Suncorp Bank acquisition.
• March 2025 v September 2024
Other operating income decreased $166 million (7%). Excluding Suncorp Bank, Other operating income decreased $190 million (8%).
Net fee and commission income
Net fee and commission income decreased $101 million (11%) driven by:
• $69 million decrease in the Australia Retail division driven by lower cards revenue due to timing of cards incentives.
• $32 million decrease in the Institutional division (excluding Markets business unit) driven by lower non-lending fees in Corporate Finance.
• $16 million decrease in the Australia Commercial division driven by lower cards revenue due to seasonality of fees and lower non-lending fees.
• $15 million increase from the impact of Suncorp Bank acquisition part way through the September 2024 half.
GROUP RESULTS
24
Markets income
Markets income increased $101 million (10%) with a $149 million increase in Net interest income partially offset by a $48 million decrease in Other
operating income. The net $101 million increase was attributable to the following business activities:
• $69 million increase in Franchise Revenue driven by Rates, Foreign Exchange and Commodities, partially offset by Credit and Capital Markets.
Rates revenue increased driven by higher customer demand for hedging and financing solutions. Foreign Exchange revenue increased due to
higher volatility resulting in higher customer demand. Commodities revenue increased, capitalising on physical commodity management
capabilities in the context of tariff uncertainty. This was partially offset by Credit and Capital Markets as market participants considered the
potential for credit spreads to widen, partially offset by sustained customer issuance activity.
• $54 million increase in Balance Sheet revenues from higher average levels of investment securities and increased yields.
• $22 million decrease in Derivative valuation adjustments driven by lower gains (net of hedges) from credit and funding spread movements.
Other
Other income decreased $17 million (6%) driven by:
• $28 million decrease in the Australia Retail division due to lower insurance-related income.
• $9 million increase from the impact of Suncorp Bank acquisition part way through the September 2024 half.
• $1 million increase in the Group Centre division driven by:
- $23 million increase from higher realised gains on economic hedges against foreign currency denominated revenue streams offsetting net
unfavourable foreign currency translations elsewhere in the Group,
- $17 million increase from higher share of associates’ profit in Panin,
- $13 million increase from higher gain on recycling of foreign currency translation reserve from other comprehensive income to profit or loss on
dissolution of international entities,
- $46 million decrease from non-recurring items in the September 2024 half, including release of excess provisions following a legal settlement
and a dividend from Bank of Tianjin.
GROUP RESULTS
25
Cash Operating Expenses
Half Year Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Personnel 3,312 3,116 3,062 6% 8%
Premises
348 338 321 3% 8%
Technology
1,057 1,017 898 4% 18%
Restructuring
85 94 141 -10% -40%
Other
940 961 793 -2% 19%
Total
5,742 5,526 5,215 4% 10%
Total (excl. Suncorp Bank) 5,309 5,338 5,215 -1% 2%
Half Year
Movement
Operating expenses by division
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Australia Retail
1,781 1,781 1,735
0% 3%
Australia Commercial
755 744 763
1% -1%
Institutional
1,461 1,431 1,444
2% 1%
New Zealand
685 699 677
-2% 1%
Suncorp Bank
433 188 -
large n/a
Pacific
74 68 70
9% 6%
Group Centre
553 615 526
-10% 5%
Total
5,742 5,526 5,215 4% 10%
Half Year
Movement
FTE by division
Mar 25 Sep 24 Mar 24
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Australia Retail
10,950 10,832 11,383
1% -4%
Australia Commercial
3,361 3,294 3,442
2% -2%
Institutional
6,460 6,272 6,310
3% 2%
New Zealand
6,680 6,756 6,754
-1% -1%
Suncorp Bank
2,791 2,798 -
0% n/a
Pacific
1,014 985 972
3% 4%
Group Centre
11,838 11,433 11,401
4% 4%
Total FTE
43,094 42,370 40,262 2% 7%
Average FTE 42,591 40,855 40,392 4% 5%
Total FTE (excl. Suncorp Bank)
40,303 39,572 40,262
2% 0%
Average FTE (excl. Suncorp Bank) 39,953 39,957 40,392 0% -1%
GROUP RESULTS
26
Operating expenses - March 2025 Half Year v March 2024 Half Year
• March 2025 v March 2024
Operating expenses increased $527 million (10%). Excluding Suncorp Bank, Operating expenses increased $94 million (2%).
• Personnel expenses increased $250 million (8%) driven by the impact of Suncorp Bank acquisition ($229 million), and inflationary impacts on
wages, partially offset by benefits from productivity initiatives.
• Premises expenses increased $27 million (8%) driven by the impact of Suncorp Bank acquisition ($28 million).
• Technology expenses increased $159 million (18%) driven by the impact of Suncorp Bank acquisition ($118 million), higher software licence
costs and inflationary impacts on vendor costs. This was partially offset by benefits from technology simplification.
• Restructuring expenses decreased $56 million (40%) driven by reduction in operational changes across the Group.
• Other expenses increased $147 million (19%) driven by the impact of Suncorp Bank acquisition ($58 million) and higher investment spend.
• March 2025 v September 2024
Operating expenses increased $216 million (4%). Excluding Suncorp Bank, Operating expenses decreased $29 million (1%).
• Personnel expenses increased $196 million (6%) driven by the impact of Suncorp Bank acquisition part way through the September 2024 half
($150 million), and inflationary impacts on wages, partially offset by productivity initiatives.
• Premises expenses increased $10 million (3%) driven by the impact of Suncorp Bank acquisition part way through the September 2024 half
($19 million).
• Technology expenses increased $40 million (4%) driven by the impact of Suncorp Bank acquisition part way through the September 2024 half
($33 million), and inflationary impacts on vendor costs, partially offset by investment spend seasonality and productivity initiatives.
• Restructuring expenses decreased $9 million (10%) driven by reduction in operational changes across the Group.
• Other expenses decreased $21 million (2%) largely driven by investment spend seasonality partially offset by the impact of Suncorp Bank
acquisition part way through the September 2024 half ($43 million).
GROUP RESULTS
27
Investment Spend
Investment spend includes allocation of funds towards initiatives that support substantial changes and does not include those that are smaller and/or
more routine in nature.
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Investment expensed 612 707 550 -13% 11%
Investment capitalised
158 175 111 -10% 42%
Total investment spend
770 882 661 -13% 16%
Total investment spend (excl. Suncorp Bank) 734 868 661 -15% 11%
Investment spend by division Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Australia Retail 218 234 199 -7% 10%
Australia Commercial
46 65 55 -29% -16%
Institutional
109 121 104 -10% 5%
New Zealand
76 93 71 -18% 7%
Suncorp Bank
36 14 - large n/a
Pacific
1 1 1 0% 0%
Group Centre
284 354 231 -20% 23%
Total investment spend
770 882 661 -13% 16%
Software Capitalisation
Capitalised software comprises all costs incurred to develop and 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 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Balance at start of period 1,020 905 919 13% 11%
Software capitalised during the period
1
159 288 146 -45% 9%
Amortisation during the period
2
(148) (173) (151) -14% -2%
Software impaired/written-off
(30) - (9) n/a large
Foreign currency translation
- - - n/a n/a
Total capitalised software
1,001 1,020 905 -2% 11%
Total capitalised software (excl. Suncorp Bank) 948 956 905 -1% 5%
Capitalised software by division As at
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Australia Retail 128 126 117 2% 9%
Australia Commercial
22 133 113 -83% -81%
Institutional
490 475 453 3% 8%
New Zealand
21 18 13 17% 62%
Suncorp Bank
53 64 - -17% n/a
Group Centre
287 204 209 41% 37%
Total capitalised software
1,001 1,020 905 -2% 11%
1.
Includes $103 million from the acquisition of Suncorp Bank for the September 2024 half.
2.
Includes $36 million accelerated amortisation expense from Suncorp Bank on alignment to the Group’s software capitalisation policy for the September 2024 half.
GROUP RESULTS
28
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 a variety of conditions. Refer to
Note 9 Allowance for expected credit losses for further information.
Credit impairment charge/(release)
Half Year Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Collectively assessed credit impairment charge/(release) (14) 230 32 large large
Individually assessed credit impairment charge/(release)
159 106 38 50% large
Total credit impairment charge/(release)
145 336 70 -57% large
Total credit impairment charge/(release) (excl. Suncorp Bank) 134 93 70 44% 91%
Credit impairment charge/(release) analysis
Half Year Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
New and increased provisions (net of releases)
- Collectively assessed (14) 230 32 large large
- Individually assessed
301 264 201 14% 50%
Write-backs
(69) (99) (85) -30% -19%
Recoveries of amounts previously written-off
(73) (59) (78) 24% -6%
Total credit impairment charge/(release)
145 336 70 -57% large
Credit impairment char
ge/(release) by division
Half Year Movement
Collectively assessed
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Australia Retail 16 (23) (6) large large
Australia Commercial
(9) (1) 9 large large
Institutional
11 14 43 -21% -74%
New Zealand
(25) (4) (10) large large
Suncorp Bank
(3) 244 - large n/a
Pacific
(2) (2) (4) 0% -50%
Group Centre
(2) 2 - large n/a
Total collectively assessed (14) 230 32 large large
Individually assessed
Australia Retail 47 51 49 -8% -4%
Australia Commercial
59 46 26 28% large
Institutional
17 (18) (49) large large
New Zealand
21 28 14 -25% 50%
Suncorp Bank
14 (1) - large n/a
Pacific
(1) - (2) n/a -50%
Group Centre
2 - - n/a n/a
Total individually assessed 159 106 38 50% large
Total credit impairment charge/(release)
Australia Retail 63 28 43 large 47%
Australia Commercial
50 45 35 11% 43%
Institutional
28 (4) (6) large large
New Zealand
(4) 24 4 large large
Suncorp Bank
1
11 243 - -95% n/a
Pacific
(3) (2) (6) 50% -50%
Group Centre
- 2 - large n/a
Total credit impairment charge/(release) 145 336 70 -57% large
1.
Includes $244 million credit impairment charge recognised on performing loans and advances for the September 2024 half (refer to Guide to Results on page 8 for further information).
GROUP RESULTS
29
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 2025 Half Year $M $M $M $M $M $M $M $M
Australia Retail
(14) (3) 33 16 98 (51) 47 63
Australia Commercial
(34) 22 3 (9) 93 (34) 59 50
Institutional
(42) 45 8 11 51 (34) 17 28
New Zealand
(10) (19) 4 (25) 38 (17) 21 (4)
Suncorp Bank
(9) 3 3 (3) 18 (4) 14 11
Pacific
(1) (2) 1 (2) 1 (2) (1) (3)
Group Centre
(2) - - (2) 2 - 2 -
Total
(112) 46 52 (14) 301 (142) 159 145
September 2024 Half Year
Australia Retail (11) (29) 17 (23) 103 (52) 51 28
Australia Commercial (1) (34) 34 (1) 80 (34) 46 45
Institutional 15 1 (2) 14 35 (53) (18) (4)
New Zealand (12) 14 (6) (4) 42 (14) 28 24
Suncorp Bank 93 150 1 244 1 (2) (1) 243
Pacific (4) 5 (3) (2) 3 (3) - (2)
Group Centre 2 - - 2 - - - 2
Total 82 107 41 230 264 (158) 106 336
March 2024 Half Year
Australia Retail 13 (42) 23 (6) 91 (42) 49 43
Australia Commercial 10 (9) 8 9 58 (32) 26 35
Institutional - 9 34 43 21 (70) (49) (6)
New Zealand 11 (30) 9 (10) 30 (16) 14 4
Suncorp Bank - - - - - - - -
Pacific 2 (2) (4) (4) 1 (3) (2) (6)
Group Centre - - - - - - - -
Total 36 (74) 70 32 201 (163) 38 70
GROUP RESULTS
30
Collectively assessed credit impairment charge/(release)
• March 2025 v March 2024
The collectively assessed impairment release of $14 million for the March 2025 half was driven by a revision to modelling assumptions for the severe
scenario and a small improvement in base case economic assumptions. This was partially offset by deterioration in credit risk profile particularly in
the Institutional and Australia Commercial divisions, portfolio growth, and a net increase in management temporary adjustments for increased
uncertainty and economic volatility.
The collectively assessed impairment charge of $32 million for the March 2024 half was driven by deterioration in credit risk profile across all
divisions, and portfolio growth. This was partially offset by a reduction in management temporary adjustments as anticipated risks are now
represented in portfolio credit profiles.
• March 2025 v September 2024
The collectively assessed impairment release of $14 million for the March 2025 half was driven by a revision to modelling assumptions for the severe
scenario and a small improvement in base case economic assumptions. This was partially offset by deterioration in credit risk profile particularly in
the Institutional and Australia Commercial divisions, portfolio growth, and a net increase in management temporary adjustments for increased
uncertainty and economic volatility.
The collectively assessed impairment charge of $230 million for the September 2024 half was driven by the acquisition of Suncorp Bank
($244 million). Excluding Suncorp Bank, the collectively assessed impairment release of $14 million was driven by improvement in economic outlook,
partially offset by deterioration in credit risk profile across all divisions, and portfolio growth.
Individually assessed credit impairment charge/(release)
• March 2025 v March 2024
The individually assessed credit impairment charge increased $121 million driven by the Institutional division ($66 million) due to lower recoveries
and writebacks and new impairments on several single name customers, the Australia Commercial division ($33 million) due to impairment flows in
the SME Banking and Agri portfolios, and the Suncorp Bank division ($14m) due to new impairments in the commercial property portfolio.
• March 2025 v September 2024
The individually assessed credit impairment charge increased $53 million (50%) driven by the Institutional division ($35 million) due to lower
recoveries and writebacks and new impairments on several single name customers, the Australia Commercial division ($13 million) due to
impairment flows in the SME Banking and Agri portfolios, and the Suncorp Bank division ($15 million) due to new impairments in the commercial
property portfolio.
GROUP RESULTS
31
Allowance for expected credit losses
1
As at Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Collectively assessed allowance for ECL 4,280 4,247 4,046 1% 6%
Individually assessed allowance for ECL
364 308 325 18% 12%
Total allowance for ECL
4,644 4,555 4,371 2% 6%
Net loans and advances at amortised cost 3,761 3,675 3,489 2% 8%
Off-balance sheet commitments - undrawn and contingent 852 846 849 1% 0%
Investment securities - debt securities at amortised cost
31 34 33 -9% -6%
Total allowance for ECL
4,644 4,555 4,371 2% 6%
Allowance for expected credit losses by division
1
As at Movement
Collectivel
y assessed
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Australia Retail 942 925 948 2% -1%
Australia Commercial
1,040 1,049 1,050 -1% -1%
Institutional
1,491 1,438 1,458 4% 2%
New Zealand
507 539 542 -6% -6%
Suncorp Bank
254 248 - 2% n/a
Pacific
45 45 48 0% -6%
Group Centre
1 3 - -67% n/a
Total collectively assessed 4,280 4,247 4,046 1% 6%
Individually assessed
Australia Retail 52 54 61 -4% -15%
Australia Commercial
139 133 121 5% 15%
Institutional
96 58 88 66% 9%
New Zealand
52 51 38 2% 37%
Suncorp Bank
14 - - n/a n/a
Pacific
11 12 17 -8% -35%
Group Centre
- - - n/a n/a
Total individually assessed 364 308 325 18% 12%
Allowance for ECL
Australia Retail 994 979 1,009 2% -1%
Australia Commercial
1,179 1,182 1,171 0% 1%
Institutional
1,587 1,496 1,546 6% 3%
New Zealand
559 590 580 -5% -4%
Suncorp Bank
268 248 - 8% n/a
Pacific
56 57 65 -2% -14%
Group Centre
1 3 - -67% n/a
Total allowance for ECL 4,644 4,555 4,371 2% 6%
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 2025
Stage 1
$M
Stage 2
$M
Stage 3
$M
Total
$M
Stage 3
$M
Total
$M
Australia Retail 108 597 237 942 52 994
Australia Commercial
385 511 144 1,040 139 1,179
Institutional
1,179 263 49 1,491 96 1,587
New Zealand
124 307 76 507 52 559
Suncorp Bank
84 153 17 254 14 268
Pacific
17 22 6 45 11 56
Group Centre
- 1 - 1 - 1
Total
1,897 1,854 529 4,280 364 4,644
As at September 2024
Australia Retail 121 600 204 925 54 979
Australia Commercial 418 489 142 1,049 133 1,182
Institutional 1,180 217 41 1,438 58 1,496
New Zealand 137 329 73 539 51 590
Suncorp Bank 92 150 6 248 - 248
Pacific 18 23 4 45 12 57
Group Centre 2 1 - 3 - 3
Total 1,968 1,809 470 4,247 308 4,555
As at March 2024
Australia Retail 131 631 186 948 61 1,009
Australia Commercial 420 522 108 1,050 121 1,171
Institutional 1,197 218 43 1,458 88 1,546
New Zealand 148 315 79 542 38 580
Suncorp Bank - - - - - -
Pacific 22 19 7 48 17 65
Group Centre - - - - - -
Total 1,918 1,705 423 4,046 325 4,371
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.
Allowance for expected credit losses
• March 2025 v March 2024
The allowance for ECL increased $273 million (6%) driven by a $234 million increase in collectively assessed allowance for ECL, and a $39 million
increase in the individually assessed allowance for ECL. The increase in collectively assessed allowance for ECL was driven by additional allowance
for ECL for Suncorp Bank ($254 million), deterioration in credit risk profile across all divisions ($153 million), portfolio growth ($45 million), net
increase in management temporary adjustments ($20 million) for increased uncertainty and economic volatility, and the impact of foreign currency
translation ($5 million). This was partially offset by improvement in economic outlook ($243 million) from a revision to modelling assumptions for the
severe scenario and a small improvement in base case economic assumptions. The increase in individually assessed allowance for ECL was driven
by increases in the Australia Commercial division ($18 million) due to higher impairments in the SME Banking portfolio, New Zealand division
($14 million) due to higher impairment flows in the Business & Agri portfolio, Suncorp Bank ($14 million) due to new impairments in the commercial
property portfolio, and Institutional division ($8 million) due to increase in new impairments and lower write-backs.
• March 2025 v September 2024
The allowance for ECL increased $89 million (2%) driven by a $33 million increase in collectively assessed allowance for ECL and a $56 million
increase in individually assessed allowance for ECL. The increase in collectively assessed allowance for ECL was driven by deterioration in credit
risk profile across the Institutional and Australia Commercial divisions ($50 million), impact of foreign currency translation ($47 million), portfolio
growth ($17 million), and a net increase in management temporary adjustments ($14 million) for increased uncertainty and economic volatility,
partially offset by a revision to modelling assumptions for the severe scenario ($72 million) and a small improvement in base case economic
assumptions ($23 million). The increase in individually assessed allowance for ECL was driven by an increase in the Institutional division ($38 million)
due to increase in new impairments and lower write-backs, and the Suncorp Bank division ($14 million) due to new impairments in the commercial
property portfolio.
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 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 25Sep 24Mar 24
Australia Retail 0.12%0.11%0.09%
Australia Commercial 0.53%0.52%0.53%
Institutional
0.21%0.20%0.21%
New Zealand
0.17%0.17%0.13%
Suncorp Bank
0.15%0.14%n/a
Total Group
0.19%0.18%0.18%
Non-Performing Credit Exposures
As at
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Impaired loans
1
1,020 881 880 16% 16%
Restructured items
2
1,152 786 589 47% 96%
Non-performing commitments, contingencies and derivatives
1
80 26 49 large 63%
Gross impaired assets
2,252 1,693 1,518 33% 48%
Non-performing credit exposures not impaired
1
6,082 5,787 4,495 5% 35%
Total non-performing credit exposures
3
8,334 7,480 6,013 11% 39%
Gross impaired assets by division
Australia Retail 1,204 870 669 38% 80%
Australia Commercial
386 291 261 33% 48%
Institutional
319 284 437 12% -27%
New Zealand
195 158 119 23% 64%
Suncorp Bank
123 66 - 86% n/a
Pacific
25 24 32 4% -22%
Gross impaired assets
2,252 1,693 1,518 33% 48%
Gross impaired assets by size of exposure
Less than $10 million 1,763 1,422 1,095 24% 61%
$10 million to $100 million
489 271 262 80% 87%
Greater than $100 million
- - 161 n/a large
Gross impaired assets
2,252 1,693 1,518 33% 48%
Individually assessed provisions
Impaired loans
(346) (303) (320) 14% 8%
Non-performing commitments, contingencies and derivatives
(18) (5) (5) large large
Net impaired assets
1,888 1,385 1,193 36% 58%
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 wholesale and retail exposures. These collectively assessed exposures are included in Non-performing credit
exposures not impaired.
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. Upon restructuring, an exposure's delinquency status may be re-aged where certain conditions are met.
3.
Non-performing credit exposures are aligned with the definition in APS220 Credit Risk Management.
• March 2025 v March 2024
Gross impaired assets increased $734 million (48%) driven by increases in the Australia Retail division ($535 million) due to restructured home loan
facilities, the Australia Commercial ($125 million) and New Zealand ($76 million) divisions due to portfolio deterioration, and acquisition of Suncorp
Bank ($123 million). This was partially offset by a decrease in the Institutional division ($118 million) due to upgrade of several single name
exposures.
Non-performing credit exposures not impaired increased $1,587 million (35%) driven by defaults on well secured mortgages in the Australia Retail
and New Zealand divisions where 90+ days past due delinquency rates have increased and acquisition of Suncorp Bank.
GROUP RESULTS
34
• March 2025 v September 2024
Gross impaired assets increased $559 million (33%) driven by increases in the Australia Retail division ($334 million) due to restructured home loan
facilities, the Australia Commercial division ($95 million) due to a new single name impairment in the Agri portfolio, the Suncorp Bank division
($57 million) due to new impairments in the commercial property portfolio, the New Zealand division ($37 million) due to credit deterioration across all
portfolios and the Institutional division ($35 million) due to downgrade of several single name exposures.
Non-performing credit exposures not impaired increased $295 million (5%) driven by defaults on well secured mortgages in the Australia Retail and
New Zealand divisions where 90+ days past due delinquency rates have increased.
The Group’s individually assessed provision coverage ratio on gross impaired assets was 16.2% at 31 March 2025 (Sep 24: 18.2%: Mar 24: 21.4%).
The decrease in ratio was driven by increase in well secured gross impaired assets relative to the increase in individually assessed allowance for
ECL.
New Impaired Assets
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Impaired loans
1
621 498 359
25% 73%
Restructured items
2
554 330 269
68% large
Non-performing commitments and contingencies
1
79 31 2 large large
Total new impaired assets
1,254 859 630 46% 99%
New impaired assets by division
Australia Retail 654 454 323 44% large
Australia Commercial
223 132 122 69% 83%
Institutional
154 141 98 9% 57%
New Zealand
140 119 84 18% 67%
Suncorp Bank
78 2 - large n/a
Pacific
5 11 3 -55% 67%
Total new impaired assets
1,254 859 630 46% 99%
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. Upon restructuring, an exposure’s delinquency status may be re-aged where certain conditions are met.
• March 2025 v March 2024
New impaired assets increased $624 million (99%) driven by the Australia Retail division ($331 million) due to higher new impairment flows from
restructured home loan facilities, the Australia Commercial division ($101 million) due to a new single name impairment in the Agri portfolio, the
Suncorp Bank division ($78 million) due to new impairments in the commercial property portfolio, the Institutional division ($56 million) due to
downgrade of several single name exposures, and the New Zealand division ($56 million) due to credit deterioration across all portfolios.
• March 2025 v September 2024
New impaired assets increased $395 million (46%) driven by the Australia Retail division ($200 million) due to higher new impairment flows from
restructured home loan facilities, the Australia Commercial division ($91 million) due to a new single name impairment in the Agri portfolio, the
Suncorp Bank division ($76 million) due to new impairments in the commercial property portfolio, the New Zealand division ($21 million) due to credit
deterioration across all portfolios and the Institutional division ($13 million) due to downgrade of several single name exposures.
GROUP RESULTS
35
Ageing analysis of net loans and advances that are past due but not impaired
As at Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
1-29 days 8,176 7,746 6,927 6% 18%
30-59 days
2,509 2,095 2,337 20% 7%
60-89 days
1,281 1,368 1,234 -6% 4%
90+ days
4,556 4,173 3,490 9% 31%
Total
16,522 15,382 13,988 7% 18%
• March 2025 v March 2024
Net loans and advances past due but not impaired increased $2,534 million (18%) across all ageing categories driven by the impact of Suncorp Bank
acquisition ($1,858 million), and increases in the Australia Retail ($585 million) and New Zealand divisions ($273 million) in home loan portfolios.
• March 2025 v September 2024
Net loans and advances past due but not impaired increased $1,140 million (7%) across the 1-29 days, 30-59 days, and 90+ days ageing categories
driven by increases in the Australia Retail ($472 million) and New Zealand ($88 million) divisions in home loan portfolios.
GROUP RESULTS
36
Cash Income Tax Expense
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Cash profit before income tax 5,108 4,600 5,062
11% 1%
Prima facie income tax expense at 30%
1,532 1,380 1,519
11% 1%
Tax effect of permanent differences:
Share of associates' (profit)/loss
(11) (7) (25)
57% -56%
Interest on convertible instruments
58 60 64
-3% -9%
Overseas tax rate differential
(80) (72) (90)
11% -11%
Provision for foreign tax on dividend repatriation
11 15 21
-27% -48%
Other
9 19 (2) -53% large
Subtotal
1,519 1,395 1,487 9% 2%
Income tax (over)/under provided in previous years - 11 9 -100% -100%
Income tax expense from cash profit
1,519 1,406 1,496 8% 2%
Australia 795 723 765 10% 4%
Overseas 724 683 731 6% -1%
Income tax expense from cash profit
1,519 1,406 1,496 8% 2%
Effective tax rate 29.7% 30.6% 29.6%
• March 2025 v March 2024
The effective tax rate increased from 29.6% to 29.7%. The increase of 10 bps was driven by lower equity accounted earnings (28 bps), lower relative
contribution from offshore earnings that attract a lower rate of tax (21 bps) and various other small items (12 bps), partially offset by lower withholding
tax expense on foreign dividends (20 bps), lower prior period adjustments (18 bps), and lower non-deductible interest on convertible instruments
(13 bps).
• March 2025 v September 2024
The effective tax rate decreased from 30.6% to 29.7%. The decrease of 90 bps was driven by lower prior period adjustments (24 bps), lower non-
deductible interest on convertible instruments (17 bps), lower withholding tax expense on foreign dividends (11 bps), higher equity accounted
earnings (6 bps) and various other small items (32 bps).
GROUP RESULTS
37
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. 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 2025 Half Year v March 2024 Half Year
Half Year Movement
Actual
FX
unadjusted
FX
impact
FX
adjusted
FX
unadjusted
FX
adjusted
Mar 25
$M
Mar 24
$M
Mar 24
$M
Mar 24
$M
Mar 25
v. Mar 24
Mar 25
v. Mar 24
Net interest income 8,869 7,899 (39) 7,860 12% 13%
Other operating income
2,126 2,448 1 2,449 -13% -13%
Operating income
10,995 10,347 (38) 10,309 6% 7%
Operating expenses (5,742) (5,215) 14 (5,201) 10% 10%
Cash profit before credit impairment and income tax
5,253 5,132 (24) 5,108 2% 3%
Credit impairment (charge)/release (145) (70) 1 (69) large large
Cash profit before income tax
5,108 5,062 (23) 5,039 1% 1%
Income tax expense (1,519) (1,496) 9 (1,487) 2% 2%
Non-controlling interests
(21) (14) - (14) 50% 50%
Cash profit
3,568 3,552 (14) 3,538 0% 1%
Cash profit (excl. Suncorp Bank) 3,282 3,552 (14) 3,538 -8% -7%
Cash profit/(loss) by division
Australia Retail
705 794 - 794
-11% -11%
Australia Commercial
655 665 - 665
-2% -2%
Institutional
1,380 1,522 1 1,523
-9% -9%
New Zealand
792 791 (20) 771
0% 3%
Suncorp Bank
286 - - -
n/a n/a
Pacific
20 31 - 31
-35% -35%
Group Centre
(270) (251) 5 (246) 8% 10%
Cash profit
3,568 3,552 (14) 3,538 0% 1%
Net loans and advances by division
Australia Retail
340,953 322,364 - 322,364
6% 6%
Australia Commercial
65,995 63,874 - 63,874
3% 3%
Institutional
216,581 206,268 2,077 208,345
5% 4%
New Zealand
124,052 121,625 (1,070) 120,555
2% 3%
Suncorp Bank
71,517 - - -
n/a n/a
Pacific
1,749 1,678 27 1,705
4% 3%
Group Centre
(645) (638) - (638) 1% 1%
Net loans and advances
820,202 715,171 1,034 716,205 15% 15%
Customer deposits by division
Australia Retail
183,357 172,312 - 172,312
6% 6%
Australia Commercial
119,388 116,463 - 116,463
3% 3%
Institutional
292,530 249,169 3,978 253,147
17% 16%
New Zealand
103,260 99,779 (877) 98,902
3% 4%
Suncorp Bank
55,586 - - -
n/a n/a
Pacific
3,718 3,657 66 3,723
2% 0%
Group Centre
(1,275) (290) - (290) large large
Customer deposits
756,564 641,090 3,167 644,257 18% 17%
GROUP RESULTS
38
March 2025 Half Year v September 2024 Half Year
Half Year Movement
Actual
FX
unadjusted
FX
impact
FX
adjusted
FX
unadjusted
FX
adjusted
Mar 25
$M
Sep 24
$M
Sep 24
$M
Sep 24
$M
Mar 25
v. Sep 24
Mar 25
v. Sep 24
Net interest income 8,869 8,170 8 8,178 9% 8%
Other operating income
2,126 2,292 36 2,328 -7% -9%
Operating income
10,995 10,462 44 10,506 5% 5%
Operating expenses (5,742) (5,526) (16) (5,542) 4% 4%
Cash profit before credit impairment and income tax
5,253 4,936 28 4,964 6% 6%
Credit impairment (charge)/release (145) (336) - (336) -57% -57%
Cash profit before income tax
5,108 4,600 28 4,628 11% 10%
Income tax expense (1,519) (1,406) (8) (1,414) 8% 7%
Non-controlling interests
(21) (21) - (21) 0% 0%
Cash profit
3,568 3,173 20 3,193 12% 12%
Cash profit (excl. Suncorp Bank) 3,282 3,295 20 3,315 0% -1%
Cash profit/(loss) by division
Australia Retail
705 813 - 813
-13% -13%
Australia Commercial
655 677 - 677
-3% -3%
Institutional
1,380 1,336 14 1,350
3% 2%
New Zealand
792 745 (8) 737
6% 7%
Suncorp Bank
286 (122) - (122)
large large
Pacific
20 29 1 30
-31% -33%
Group Centre
(270) (305) 13 (292) -11% -8%
Cash profit
3,568 3,173 20 3,193 12% 12%
Net loans and advances by division
Australia Retail
340,953 332,501 - 332,501
3% 3%
Australia Commercial
65,995 65,025 - 65,025
1% 1%
Institutional
216,581 210,464 6,646 217,110
3% 0%
New Zealand
124,052 123,504 (1,320) 122,184
0% 2%
Suncorp Bank
71,517 70,871 - 70,871
1% 1%
Pacific
1,749 1,665 83 1,748
5% 0%
Group Centre
(645) (648) - (648) 0% 0%
Net loans and advances
820,202 803,382 5,409 808,791 2% 1%
Customer deposits by division
Australia Retail
183,357 176,813 - 176,813
4% 4%
Australia Commercial
119,388 116,273 - 116,273
3% 3%
Institutional
292,530 264,414 12,681 277,095
11% 6%
New Zealand
103,260 100,907 (1,078) 99,829
2% 3%
Suncorp Bank
55,586 54,715 - 54,715
2% 2%
Pacific
3,718 3,565 180 3,745
4% -1%
Group Centre
(1,275) (1,476) - (1,476) -14% -14%
Customer deposits
756,564 715,211 11,783 726,994 6% 4%
GROUP RESULTS
39
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 US Dollar exposures relate to Rest of World
geography. Details of these hedges are set out below.
Half Year
NZD Economic hedges
Mar 25
$M
Sep 24
$M
Mar 24
$M
Net open NZD position (notional principal)
1,2
3,107 3,132 3,071
Amount taken to income (pre-tax statutory basis)
3
33 (27) 23
Amount taken to income (pre-tax cash basis)
4
17 (11) (34)
USD Economic hedges
Net open USD position (notional principal)
1,2
1,119 1,006 967
Amount taken to income (pre-tax statutory basis)
3
(94) 51 6
Amount taken to income (pre-tax cash basis)
4
(13) (5) (12)
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 1.09/AUD as at 31 March 2025
(Sep 24: NZD 1.09/AUD; Mar 24: NZD 1.09/AUD), and a USD forward rate of USD 0.65/AUD as at 31 March 2025 (Sep 24: USD 0.66/AUD; Mar 24: USD 0.67/AUD).
Half Year
Mar 25 Sep 24 Mar 24
NZD Economic Hedges
At period end (NZD billion)
3.4 3.4 3.4
Matured during the period (NZD billion)
1.5 1.5 1.4
USD Economic Hedges
At period end (USD billion)
0.7 0.7 0.6
Matured during the period (USD billion)
0.2 0.2 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 $65 million for the March 2025 half (Sep 24 half: $40 million gain; Mar 24 half:
$75 million gain) was recorded in statutory profit. This unrealised loss is treated as an adjustment to statutory profit in determining cash profit (included
within revenue and expense hedge adjustments) as these are hedges of future NZD and USD revenues.
Cash Earnings Per Share
Half Year
Movement
Mar 25Sep 24Mar 24
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Cash earnings per share (cents)
Basic
120.1 105.9 118.3 13%2%
Diluted
117.0 104.5 116.0 12%1%
Cash weighted average number of ordinary shares (M)
Basic
2,971.9 2,995.5 3,001.3 -1%-1%
Diluted
3,217.7 3,230.2 3,249.4 0%-1%
Cash profit ($M)
3,568 3,173 3,552 12%0%
Cash profit used in calculating diluted cash earnings per share ($M)
3,766 3,376 3,769 12%0%
GROUP RESULTS
40
Dividends
Half Year
Movement
Dividend per ordinary share (cents)
Mar 25 Sep 24 Mar 24
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Interim
- partially franked
1,2
83 - 83
Final
- partially franked
3
- 83 -
Total
83 83 83 0% 0%
Ordinary share dividends used in payout ratio ($M)
4,5
2,466 2,472 2,496
Cash profit ($M)
3,568 3,173 3,552 12% 0%
Ordinary share dividend payout ratio (cash profit basis)
5
69.1% 77.9% 70.3%
1.
2025 proposed interim dividend will be partially franked at 70% for Australian tax purposes (30% tax rate) and carry New Zealand imputation credits of NZD 12 cents.
2.
2024 interim dividend was partially franked at 65% for Australian tax purposes (30% tax rate) and carried New Zealand imputation credits of NZD 12 cents.
3.
2024 final dividend was partially franked at 70% for Australian tax purposes (30% tax rate) and carried New Zealand imputation credits of NZD 12 cents.
4.
Dividend paid to ordinary equity holders of the Company. Excludes dividends paid by subsidiaries to the Group’s non-controlling equity holders of $20 million for the March 2025 half
(Sep 24 half: $19 million; Mar 24 half: $13 million).
5.
Dividend payout ratio is calculated using the proposed 2025 interim dividend of $2,466 million, based on the forecast number of ordinary shares on issue at the dividend record date.
Dividend payout ratios for the September 2024 and March 2024 halves were calculated using actual dividends.
The Directors proposed an interim dividend of 83 cents be paid on each eligible fully paid ANZ ordinary share, partially franked at 70% for Australian
taxation purposes.
The interim dividend will be paid on 1 July 2025 to owners of ANZ ordinary shares at the close of business on 14 May 2025 (record
date), and carry New Zealand imputation credits of NZD 12 cents per ordinary share.
GROUP RESULTS
41
Condensed Balance Sheet
As at
Movement
Assets
Mar 25
$B
Sep 24
$B
Mar 24
$B
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Cash / Settlement balances owed to ANZ / Collateral paid 212.5 166.6 149.7 28% 42%
Trading assets and investment securities
201.1 186.3 160.5 8% 25%
Derivative financial instruments
49.6 54.4 47.5 -9% 4%
Net loans and advances
820.2 803.4 715.2 2% 15%
Other
19.2 18.4 16.8 4% 14%
Total assets
1,302.6 1,229.1 1,089.7 6% 20%
Liabilities
Settlement balances owed by ANZ / Collateral received 26.2 22.8 22.4 15% 17%
Deposits and other borrowings
972.2 903.6 806.7 8% 21%
Derivative financial instruments
44.3 55.3 42.7 -20% 4%
Debt issuances
169.6 156.4 127.1 8% 33%
Other
18.0 20.4 19.7 -12% -9%
Total liabilities
1,230.3 1,158.5 1,018.6 6% 21%
Total shareholders' equity
1
72.3 70.6 71.1 2% 2%
1.
Total shareholders' equity includes reduction in ordinary share capital of $0.3 billion for the March 2025 half (Sep 24 half: $0.9 billion; Mar 24 half: nil) following the commencement of a
$2.0 billion on-market share buy-back on 3 July 2024.
• March 2025 v March 2024
• Cash / Settlement balances owed to ANZ / Collateral paid increased $62.8 billion (42%) driven by increases in short-dated reverse repurchase
agreements ($37.4 billion), balances with central banks ($10.7 billion), overnight interbank deposits ($7.2 billion), settlement balances owed to
ANZ ($2.4 billion), collateral paid ($2.0 billion) and the impact of foreign currency translation.
• Trading assets and investment securities increased $40.6 billion (25%) driven by increases in government and semi-government bonds and
treasury bills, the impact of Suncorp Bank acquisition ($13.0 billion), increase in commodity assets, and the impact of foreign currency
translation.
• Net loans and advances increased $105.0 billion (15%) driven by the impact of Suncorp Bank acquisition ($71.5 billion), increases in the
Australia Retail ($18.6 billion) and New Zealand ($3.5 billion) divisions due to home loan growth, the Institutional ($8.2 billion) division due to
higher core lending volumes, and the impact of foreign currency translation.
• Deposits and other borrowings increased $165.5 billion (21%) driven by the impact of Suncorp Bank acquisition ($63.5 billion), higher customer
deposits in the Institutional ($39.4 billion), Australia Retail ($11.0 billion), New Zealand ($4.4 billion) and Australia Commercial ($2.9 billion)
divisions, deposits from banks and repurchase agreements ($31.6 billion), increases in commercial paper ($16.8 billion), and the impact of
foreign currency translation.
• Debt issuances increased $42.5 billion (33%) driven by the issue of new senior and subordinated debt and the impact of Suncorp Bank
acquisition ($16.6 billion), partially offset by the redemption of ANZ Capital Notes 5.
• March 2025 v September 2024
• Cash / Settlement balances owed to ANZ / Collateral paid increased $45.9 billion (28%) driven by increases in balances with central banks
($25.3 billion), short-dated reverse repurchase agreements ($20.1 billion) and the impact of foreign currency translation, partially offset by lower
overnight interbank deposits ($6.9 billion).
• Trading assets and investment securities increased $14.8 billion (8%) driven by increases in government and semi-government bonds and
treasury bills, and the impact of foreign currency translation.
• Derivative financial assets and liabilities decreased $4.8 billion (9%) and $11.0 billion (20%) respectively driven by market movements, primarily
the appreciation of the USD and the broad decrease in interest rates across major currencies.
• Net loans and advances increased $16.8 billion (2%) driven by increases in the Australia Retail ($8.5 billion) and New Zealand ($1.9 billion)
divisions due to home loan growth, and the impact of foreign currency translation.
• Deposits and other borrowings increased $68.6 billion (8%) driven by higher customer deposits in the Institutional ($15.4 billion), Australia Retail
($6.5 billion), New Zealand ($3.4 billion) and Australia Commercial ($3.1 billion) divisions, increases in commercial paper ($14.4 billion), deposits
from banks and repurchase agreements ($10.9 billion), and the impact of foreign currency translation, partially offset by lower certificates of
deposit ($3.3 billion).
• Debt issuances increased $13.2 billion (8%) driven by the issue of new senior and subordinated debt, and the impact of foreign currency
translation, partially offset by the redemption of ANZ Capital Notes 5.
GROUP RESULTS
42
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.
The Group operates under a non-operating holding company (NOHC) 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 ANZBGL to reflect the differing nature of liquidity risk inherent in each
business model. The Group will ensure that ANZGHL and ANZ Non-Bank Group holds sufficient cash reserves to meet operating and financing
requirements.
ANZBGL 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.
Key components of this framework include the Liquidity Coverage Ratio (LCR), which is a severe short term liquidity stress scenario, the Net Stable
Funding Ratio (NSFR), a longer-term structural liquidity measure (both of which are mandated by banking regulators including APRA), and internally-
developed liquidity scenarios for stress-testing purposes.
• 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): 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 25
$B
Sep 24
$B
Mar 24
$B
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Market Values Post Discount
HQLA1 287.0 250.6 268.2
15% 7%
HQLA2
15.4 12.9 11.6
19% 33%
ALA
2
3.6 2.7 1.9
33% 89%
Total liquid assets
306.0 266.2 281.7 15% 9%
Cash flows modelled under stress scenario
Cash outflows 294.7 255.1 262.8 16% 12%
Cash inflows
63.1 53.4 51.9 18% 22%
Net cash outflows
231.6 201.7 210.9 15% 10%
Liquidity Coverage Ratio
3,4
132% 132% 134% 0% -2%
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 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
43
Funding
The ANZBGL Group targets a diversified funding base, avoiding undue concentrations by investor type, maturity, market source and currency. During the
March 2025 half, the ANZBGL Group issued $21.8 billion of term wholesale funding (excluding unsubordinated debt with shorter tenors of 12 to 18
months).
The following table shows the ANZBGL Group’s total liabilities and shareholders’ equity:
As at Movement
ANZBGL Group
Mar 25
$B
Sep 24
$B
Mar 24
$B
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Wholesale funding instruments
1
Unsubordinated debt 126.7 116.7 90.8 9%40%
Subordinated debt
2
42.9 39.7 36.3 8%18%
Total term debt issuances
169.6 156.4 127.1 8%33%
Central bank term funding
3
2.0 2.5 11.5 -20%-83%
Commercial paper 62.1 47.8 45.2 30%37%
Certificates of deposit
39.6 42.2 39.1 -6%1%
Total wholesale funding instruments
273.3 248.9 222.9 10%23%
Customer deposits 757.8 716.6 641.3 6%18%
Other liabilities
201.2 195.4 155.6 3%29%
Shareholders' equity
70.7 68.8 70.2 3%1%
Total liabilities and shareholders' equity
1,303.0 1,229.7 1,090.0 6%20%
1.
Includes wholesale funding from the acquisition of Suncorp Bank in March 2025 and September 2024.
2.
Includes subordinated debt issued by ANZ Bank New Zealand Limited which constitutes tier 2 capital under RBNZ requirements but does not meet the APRA Tier 2 requirements, and
$0.8 billion of perpetual subordinated notes issued by ANZ Holdings (New Zealand) Limited in the September 2024 half.
3.
Includes RBA TFF that was fully repaid in the September 2024 half (Sep 24: nil; Mar 24: $8.1 billion), RBNZ FLP of $1.8 billion (Sep 24: $2.3 billion; Mar 24: $3.2 billion) and TLF of
$0.2 billion (Sep 24: $0.2 billion; Mar 24: $0.3 billion).
Net Stable Funding Ratio
The following table shows the Level 2 NSFR composition:
As at Movement
Mar 25
$B
Sep 24
$B
Mar 24
$B
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Required Stable Funding (RSF)
1
Retail & small and medium enterprises, corporate loans with 65% RSF factor
2
266.3 261.1 218.3 2%22%
Retail & small and medium enterprises, corporate loans with 85% RSF factors
2
231.1 221.4 206.1 4%12%
Other lending
3
58.7 58.4 56.2 1%4%
Liquid assets
20.7 17.9 15.1 16%37%
Other assets
4
53.7 48.4 46.8 11%15%
Total Required Stable Funding
630.5 607.2 542.5 4%16%
Available Stable Funding
1
Retail & small and medium enterprise customer deposits 364.8 357.0 308.9 2%18%
Corporate, public sector entities & operational deposits
143.4 133.9 128.5 7%12%
Central bank & other financial institution deposits
6.7 6.9 6.4 -3%5%
Term funding
5
100.4 94.2 81.5 7%23%
Short-term funding & other liabilities
14.5 10.5 12.4 38%17%
Capital
107.6 102.3 102.7 5%5%
Total Available Stable Funding
737.4 704.8 640.4 5%15%
Net Stable Funding Ratio
6
117%116%118%1%-1%
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
44
Capital Management
The Group’s capital management framework includes managing capital at Level 1, Level 2 and ANZGHL Group.
The Group’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 APRA’s expectation for Domestic Systematically Important Banks (D-SIBs).
APRA’s authority for ANZGHL to be a 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.
The Group has an ECM to calculate the capital to support the ANZ Non-Bank Group operations. The material risks included in the ANZ Non-Bank Group
currently are investment risk and fixed asset risk.
The Group’s compliance with these two conditions is presented in the following tables:
ANZ Bank
Group
3
$M
ANZ Non-Bank
Group
$M
ANZGHL
$M
ANZ Group
$M
As at March 2025
Allocated equity
1,2
70,712 591 1,028 72,331
Prudential adjustments to allocated equity
(601) - - (601)
Gross Common Equity Tier 1 capital
70,111 591 1,028 71,730
Deductions (14,882) - - (14,882)
Common Equity Tier 1 capital
55,229 591 1,028 56,848
Tier 1 capital 62,672 591 1,028 64,291
Tier 2 capital 32,831 - - 32,831
Total qualifying capital
95,503 591 1,028 97,122
As at September 2024
Allocated equity
1,2
68,760 567 1,301 70,628
Prudential adjustments to shareholders' equity (721) - - (721)
Gross Common Equity Tier 1 capital 68,039 567 1,301 69,907
Deductions (13,570) - - (13,570)
Common Equity Tier 1 capital 54,469 567 1,301 56,337
Tier 1 capital 62,676 567 1,301 64,544
Tier 2 capital 29,189 - - 29,189
Total qualifying capital 91,865 567 1,301 93,733
As at March 2024
Allocated equity
1
70,202 716 156 71,074
Prudential adjustments to shareholders' equity (648) - - (648)
Gross Common Equity Tier 1 capital 69,554 716 156 70,426
Deductions (11,142) - - (11,142)
Common Equity Tier 1 capital 58,412 716 156 59,284
Tier 1 capital 66,709 716 156 67,581
Tier 2 capital 28,223 - - 28,223
Total qualifying capital 94,932 716 156 95,804
1.
Allocated in accordance with prudential capital management view.
2.
ANZGHL allocated equity as at March 2025 includes ~$0.8 billion (Sep 24: ~$1.1 billion) for the remaining share buy-back.
3.
ANZ Bank Group allocated equity is adjusted for capital deductions, including deconsolidated entity adjustments, to calculate ANZ Level 2 CET1, Tier 1, Tier 2 and total qualifying capital.
GROUP RESULTS
45
ANZ Non-Bank Group
As at
Mar 25
$M
Sep 24
$M
Mar 24
$M
Economic Capital Required 417 384 571
Actual Capital
576 543 740
Actual v Economic Capital
159 159 169
ANZ Bank Group
As at
APRA Capital Ratios Basel Harmonised
1
Mar 25Sep 24Mar 24Mar 25Sep 24Mar 24
Capital Ratios (Level 2)
Common Equity Tier 1 11.8%12.2%13.5%17.0%17.6%19.7%
Tier 1
13.4%14.0%15.4%19.0%19.9%22.2%
Total capital
20.4%20.6%21.9%27.9%28.2%30.7%
Risk weighted assets ($B)
469.0 446.6 432.8 372.8 353.1 334.1
1.
Basel Harmonised methodology aligns with the Australia Banking Association Basel 3.1 Capital Comparison Study (March 2023).
APRA CET1 - March 2025 v September 2024
1.
Includes Markets credit RWA (volume and CVA) and traded market risk RWA.
• March 2025 v September 2024
ANZBGL Group CET1 ratio decreased -42 bps to 11.78% during the March 2025 half. Key drivers of the movement in the CET1 ratio were:
• Cash profit increased the CET1 ratio by +78 bps.
• Higher underlying RWA usage (excluding impact of Markets RWA and foreign currency translation) decreased the CET1 ratio by -30 bps driven
by lending growth in the Institutional, Australia Retail and New Zealand divisions, partially offset by lower IRRBB RWA.
• Markets RWA usage decreased the CET1 ratio by -4 bps as increase driven by credit RWA was partially offset by lower traded market risk RWA.
• Payment of the 2024 final dividend reduced the CET1 ratio by -55 bps.
• Capital deductions and offsetting RWA initiatives reduced the CET1 ratio by net -12 bps driven by Suncorp Bank acquisition related adjustment
impacts (refer to Guide to Results on page 8 for further information), higher deferred tax assets and loss in FVOCI reserves.
• An increase in the capital floor decreased the CET1 ratio by -19 bps, as volume growth increased standardised RWA more than IRB RWA and
IRRBB RWA was lower.
Inclusive of the total NOHC surplus capital the CET1 capital ratio is 12.00%, which includes +4 bps for the NOHC surplus capital and +18 bps for the
remaining $832 million of the $2.0 billion share buy-back announced in the September 2024 half.
The additional $250 million operational risk capital overlay (announced on 3 April 2025) increases operational risk RWA by $3.1 billion (inclusive of
the capital floor impact the net RWA increase is $2.3 billion) and is applicable from 30 April 2025.
GROUP RESULTS
46
Total Risk Weighted Assets
As at Movement
Mar 25
$B
Sep 24
$B
Mar 24
$B
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Credit RWA 378.1 361.2 348.4 5% 9%
Market risk and IRRBB RWA
28.2 30.9 38.1 -9% -26%
Operational risk RWA
50.6 49.6 43.3 2% 17%
Total
456.9 441.7 429.8 3% 6%
Capital floor adjustment 12.1 4.9 3.0 large large
Total RWA
469.0 446.6 432.8 5% 8%
Total Risk Weighted Assets - March 2025 v September 2024
1.
Including Markets credit RWA (volume and CVA) and traded market risk RWA.
• March 2025 v September 2024
Total RWA increased $22.4 billion driven by:
• $8.9 billion increase in underlying RWA excluding Markets and foreign currency translation impact:
• $13.2 billion increase from divisional lending due to lending growth in the Institutional, Australia Retail and New Zealand divisions,
• $0.8 billion decrease from risk impacts,
• $2.2 billion decrease from other credit impacts due to RWA initiatives,
• $2.1 billion decrease from IRRBB due to lower embedded losses, and
• $0.8 billion increase from operational risk.
• $1.7 billion increase in Markets due to $2.7 billion increase from Markets credit RWA, partially offset by $1.0 billion decrease from traded market
risk RWA.
• $7.2 billion increase from capital floor adjustment.
• $4.6 billion increase from the impact of foreign currency translation.
GROUP RESULTS
47
Leverage Ratio
At 31 March 2025, ANZ Bank Group’s APRA Leverage Ratio was 4.4% which is above the 3.5% minimum for IRB ADIs, including ANZ. The following
table summarises the ANZ Bank Group’s APRA Leverage Ratio calculation:
As at Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Tier 1 capital (net of capital deductions) 62,672 62,676 66,709 0% -6%
On-balance sheet exposures (excluding derivatives and securities financing transaction
exposures)
1,154,165 1,096,917 984,875 5% 17%
Derivative exposures
60,663 52,478 59,357 16% 2%
Securities financing transaction exposures
74,612 65,015 58,995 15% 26%
Other off-balance sheet exposures
138,394 129,727 124,894 7% 11%
Total exposure measure
1,427,834 1,344,137 1,228,121 6% 16%
APRA Leverage Ratio 4.4% 4.7% 5.4%
Basel Harmonised Leverage Ratio 4.9% 5.2% 6.0%
• March 2025 v September 2024
APRA leverage ratio decreased -27 bps during the March 2025 half. Key drivers of the movement were:
• Net organic capital generation (largely from Level 2 cash profit and movements in capital deductions), less dividends paid increased the leverage
ratio by +7 bps,
• Net Additional Tier 1 capital impact (ANZ Capital Notes 5 redemption) decreased the leverage ratio by -7 bps,
• Growth in exposures (excluding the impacts from foreign currency translation) decreased the leverage ratio by -21 bps driven by lending growth,
mainly in the Australia Retail and Institutional divisions, and Markets exposure growth, and
• Net other impacts decreased the leverage ratio by -6 bps.
GROUP RESULTS
48
Capital Management - Other Developments
• Capital Requirements
APRA implemented its updated requirements in relation to capital adequacy and credit risk requirements for ADIs on 1 January 2023 with further
amendments in June 2024.
In July 2024, APRA released final IRRBB standards for implementation from October 2025. The final impact to the Group is subject to approval from
APRA of Group’s IRRBB models and so the final impact is uncertain currently.
In addition, APRA continues to consult and finalise revisions to a number of remaining prudential standards, being market risk and counterparty
credit risk. Given the number of items that are yet to be finalised by APRA, the aggregate final outcome from all changes to APRA's prudential
standards relating to their review of ADIs ‘unquestionably strong’ capital framework remains uncertain.
• APRA Total Loss Absorbing Capacity (TLAC) Requirements
On 2 December 2021, APRA finalised its loss-absorbing capacity requirements for Australian D-SIBs, including ANZBGL, requiring an increase to
their minimum total capital requirement by 4.5% of RWA by January 2026. Excluding the capital requirement changes from APRA’s approach to AT1
paper (refer below), total Tier 2 ratio will increase to 6.5%. APRA expects the requirement to be satisfied predominantly with additional Tier 2 capital
with an equivalent decrease in senior funding. The amount of the additional total capital requirement will be based on the Group’s actual RWA as at
January 2026.
• APRA’s Approach to Additional Tier 1 Capital in Australia
In December 2024, APRA confirmed that it will phase out the use of AT1 capital instruments to simplify and improve the effectiveness of bank capital
in a crisis. As set out in the APRA announcement, under APRA’s approach large, internationally active banks, such as the Group, which have
received APRA approval to use the Internal Ratings-based Approach to credit risk capital requirements (“Advanced” banks) will be able to:
• replace the current requirement for 1.5% of Additional Tier 1 capital with 0.25% of CET1 and 1.25% of Tier 2 capital;
• increase the minimum CET1 requirement from 4.5% to 6%, but remove the Advanced portion of the capital conservation buffer of 1.25%;
• keep the total capital minimum, inclusive of APRA buffers, unchanged at 18.25% (including TLAC requirements);
• increase the Tier 2 requirement (inclusive of TLAC) from 6.5% to 7.75%.
APRA has indicated that it will continue to consult industry on consequential amendments to the prudential framework. APRA intends to finalise
changes to prudential standards before the end of the 2025 calendar year, with the updated framework to come into effect from 1 January 2027.
• Reserve Bank of New Zealand (RBNZ) capital adequacy requirements
The RBNZ has revised the capital adequacy requirements that apply to New Zealand locally incorporated registered banks. As a result, ANZ Bank
NZ is materially increasing the level of capital it holds over the transition period from October 2021 to July 2028. In March 2025, the RBNZ
announced that it intends to conduct a reassessment of key capital settings, with any changes expected to be advised ahead of next year’s (1 July
2026) scheduled increase. Whilst the outcomes of this future assessment are unknown, at this time the existing key requirements for ANZ Bank New
Zealand Limited (ANZ Bank New Zealand) still being implemented are:
• ANZ Bank New Zealand’s tier 1 capital requirement will increase to 16% of RWA, of which up to 2.5% can be in the form of AT1 capital;
• ANZ Bank New Zealand’s total capital requirement will increase to 18% of RWA, of which up to 2% can be Tier 2 capital;
• AT1 capital must consist of perpetual preference shares, which may be redeemable. Tier 2 capital must consist of long-term subordinated debt.
The financial impact of the changes to the RBNZ’s capital adequacy requirements on the Group are uncertain at this time. The net impact on the
Group’s Level 1 CET1 capital, by the end of the transition period in 2028, is dependent on the additional capital required by ANZ Bank New Zealand
to comply with the increased capital requirements. Whether the additional capital requirement for ANZ Bank New Zealand results in financial
implications for the Group will also depend on whether the Group’s Level 1 CET1 ratio is lower than the Group’s Level 2 CET1 ratio in 2028.
• Group regulation - roadmap for review
In October 2022, APRA released a roadmap for review of the prudential framework for ‘groups’ of entities. The review will focus on rationalising
requirements, promoting consistency, and providing clarity across different standards that apply to groups. As part of the review, guidelines for
licensing new NOHC authorities will be updated. For existing APRA authorised NOHCs, there will be no immediate changes, although APRA will
seek to ensure new or adjusted NOHC license conditions are applied in a consistent manner. The review will be multi-year, and APRA has indicated
that it will finalise in the 2025 calendar year.
DIVISIONAL RESULTS
49
CONTENTS Page
Divisional Performance 50
Australia Retail 54
Australia Commercial 56
Institutional 58
New Zealand 65
Suncorp Bank 70
Pacific 71
Group Centre 71
DIVISIONAL RESULTS
Divisional Performance
50
The Group operates on a divisional structure with seven divisions: Australia Retail, Australia Commercial, Institutional, New Zealand, Suncorp Bank,
Pacific, and Group Centre. For further information on the composition of divisions, refer to the Definitions on page 132.
The divisions reported are consistent with internal reporting provided to the chief operating decision maker, being the Chief Executive Officer.
The Divisional Results section is reported on a cash profit basis.
DIVISIONAL RESULTS
Divisional Performance
51
Cash profit by division – March 2025 Half Year v March 2024 Half Year
March 2025 Half Year
Australia
Retail
$M
Australia
Commercial
$M
Institutional
$M
New Zealand
$M
Suncorp
Bank
$M
Pacific
$M
Group
Centre
$M
Group
$M
Net interest income
2,592 1,589 2,033 1,589 823 55 188 8,869
Other operating income
269 153 1,386 193 30 44 51 2,126
Operating income
2,861 1,742 3,419 1,782 853 99 239 10,995
Operating expenses (1,781) (755) (1,461) (685) (433) (74) (553) (5,742)
Cash profit/(loss) before credit
impairment and income tax
1,080 987 1,958 1,097 420 25 (314) 5,253
Credit impairment (charge)/release (63) (50) (28) 4 (11) 3 - (145)
Cash profit/(loss) before income tax
1,017 937 1,930 1,101 409 28 (314) 5,108
Income tax (expense)/benefit (312) (282) (550) (309) (123) (7) 64 (1,519)
Non-controlling interests
- - - - - (1) (20) (21)
Cash profit/(loss)
705 655 1,380 792 286 20 (270) 3,568
March 2024 Half Year
Australia
Retail
$M
Australia
Commercial
$M
Institutional
$M
New Zealand
$M
Suncorp
Bank
$M
Pacific
$M
Group
Centre
$M
Group
$M
Net interest income 2,608 1,580 1,882 1,572 - 63 194 7,899
Other operating income 301 169 1,687 208 - 44 39 2,448
Operating income 2,909 1,749 3,569 1,780 - 107 233 10,347
Operating expenses (1,735) (763) (1,444) (677) - (70) (526) (5,215)
Cash profit/(loss) before credit
impairment and income tax
1,174 986 2,125 1,103 - 37 (293) 5,132
Credit impairment (charge)/release (43) (35) 6 (4) - 6 - (70)
Cash profit/(loss) before income tax 1,131 951 2,131 1,099 - 43 (293) 5,062
Income tax (expense)/benefit (337) (286) (609) (308) - (11) 55 (1,496)
Non-controlling interests - - - - - (1) (13) (14)
Cash profit/(loss) 794 665 1,522 791 - 31 (251) 3,552
March 2025 Half Year v March 2024
Half Year
Australia
Retail
Australia
Commercial Institutional New Zealand
Suncorp
Bank Pacific
Group
Centre Group
Net interest income -1% 1% 8% 1% n/a -13% -3% 12%
Other operating income -11% -9% -18% -7% n/a 0% 31% -13%
Operating income -2% 0% -4% 0% n/a -7% 3% 6%
Operating expenses 3% -1% 1% 1% n/a 6% 5% 10%
Cash profit/(loss) before credit
impairment and income tax
-8% 0% -8% -1% n/a -32% 7% 2%
Credit impairment (charge)/release 47% 43% large large n/a -50% n/a large
Cash profit/(loss) before income tax -10% -1% -9% 0% n/a -35% 7% 1%
Income tax (expense)/benefit -7% -1% -10% 0% n/a -36% 16% 2%
Non-controlling interests n/a n/a n/a n/a n/a 0% 54% 50%
Cash profit/(loss) -11% -2% -9% 0% n/a -35% 8% 0%
DIVISIONAL RESULTS
Divisional Performance
52
Cash profit by division - March 2025 Half Year v September 2024 Half Year
March 2025 Half Year
Australia
Retail
$M
Australia
Commercial
$M
Institutional
$M
New Zealand
$M
Suncorp
Bank
$M
Pacific
$M
Group
Centre
$M
Group
$M
Net interest income
2,592 1,589 2,033 1,589 823 55 188 8,869
Other operating income
269 153 1,386 193 30 44 51 2,126
Operating income
2,861 1,742 3,419 1,782 853 99 239 10,995
Operating expenses (1,781) (755) (1,461) (685) (433) (74) (553) (5,742)
Cash profit/(loss) before credit
impairment and income tax
1,080 987 1,958 1,097 420 25 (314) 5,253
Credit impairment (charge)/release (63) (50) (28) 4 (11) 3 - (145)
Cash profit/(loss) before income tax
1,017 937 1,930 1,101 409 28 (314) 5,108
Income tax (expense)/benefit (312) (282) (550) (309) (123) (7) 64 (1,519)
Non-controlling interests
- - - - - (1) (20) (21)
Cash profit/(loss)
705 655 1,380 792 286 20 (270) 3,568
September 2024 Half Year
Australia
Retail
$M
Australia
Commercial
$M
Institutional
$M
New Zealand
$M
Suncorp
Bank
$M
Pacific
$M
Group
Centre
$M
Group
$M
Net interest income 2,615 1,584 1,859 1,571 251 60 230 8,170
Other operating income 363 173 1,461 191 6 47 51 2,292
Operating income 2,978 1,757 3,320 1,762 257 107 281 10,462
Operating expenses (1,781) (744) (1,431) (699) (188) (68) (615) (5,526)
Cash profit/(loss) before credit
impairment and income tax
1,197 1,013 1,889 1,063 69 39 (334) 4,936
Credit impairment (charge)/release (28) (45) 4 (24) (243) 2 (2) (336)
Cash profit/(loss) before income tax 1,169 968 1,893 1,039 (174) 41 (336) 4,600
Income tax (expense)/benefit (356) (291) (557) (294) 52 (11) 51 (1,406)
Non-controlling interests - - - - - (1) (20) (21)
Cash profit/(loss) 813 677 1,336 745 (122) 29 (305) 3,173
March 2025 Half Year v
September 2024 Half Year
Australia
Retail
Australia
Commercial Institutional New Zealand
Suncorp
Bank Pacific
Group
Centre Group
Net interest income -1% 0% 9% 1% large -8% -18% 9%
Other operating income -26% -12% -5% 1% large -6% 0% -7%
Operating income -4% -1% 3% 1% large -7% -15% 5%
Operating expenses 0% 1% 2% -2% large 9% -10% 4%
Cash profit/(loss) before credit
impairment and income tax
-10% -3% 4% 3% large -36% -6% 6%
Credit impairment (charge)/release large 11% large large -95% 50% large -57%
Cash profit/(loss) before income tax -13% -3% 2% 6% large -32% -7% 11%
Income tax (expense)/benefit -12% -3% -1% 5% large -36% 25% 8%
Non-controlling interests n/a n/a n/a n/a n/a 0% 0% 0%
Cash profit/(loss) -13% -3% 3% 6% large -31% -11% 12%
DIVISIONAL RESULTS
Divisional Performance
53
Key Balance Sheet Metrics by division
As at Movement
Net Loans and Advances
Mar 25
$B
Sep 24
$B
Mar 24
$B
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Australia Retail 341.0 332.5 322.4 3% 6%
Australia Commercial
66.0 65.0 63.9 2% 3%
Institutional
1
216.6 210.5 206.3 3% 5%
New Zealand
1
124.1 123.5 121.6 0% 2%
Suncorp Bank
71.5 70.9 - 1% n/a
Pacific
1
1.7 1.7 1.7 0% 0%
Group Centre
(0.7) (0.7) (0.7) 0% 0%
Total
820.2 803.4 715.2 2% 15%
Customer Deposits
Australia Retail 183.4 176.8 172.3 4% 6%
Australia Commercial
119.4 116.3 116.5 3% 2%
Institutional
1
292.5 264.4 249.2 11% 17%
New Zealand
1
103.3 100.9 99.8 2% 4%
Suncorp Bank
55.6 54.7 - 2% n/a
Pacific
1
3.7 3.6 3.7 3% 0%
Group Centre
(1.3) (1.5) (0.4) -13% large
Total
756.6 715.2 641.1 6% 18%
Risk Weighted Assets
Australia Retail 121.1 116.9 130.2 4% -7%
Australia Commercial
46.6 45.5 46.6 2% 0%
Institutional
178.4 166.9 171.4 7% 4%
New Zealand
59.9 62.1 66.8 -4% -10%
Suncorp Bank
33.3 33.4 - 0% n/a
Pacific
3.8 3.6 3.6 6% 6%
Group Centre
25.9 18.2 14.2 42% 82%
Total
469.0 446.6 432.8 5% 8%
Half Year
Return on Average Risk Weighted Assets
Mar 25Sep 24Mar 24
Australia Retail
1.19%1.30%1.22%
Australia Commercial
2.86%2.94%2.83%
Institutional
1.55%1.59%1.77%
New Zealand
2.64%2.34%2.31%
Suncorp Bank
2
1.72%(2.21%)n/a
Pacific
1.06%1.62%1.67%
Group Centre
n/an/an/a
Total
1.55%1.44%1.65%
1.
Refer to pages 37 and 38 for Net loans and advances and Customer deposits movements excluding the impact of foreign currency translation.
2.
September 2024 half includes Suncorp Bank acquisition related adjustment charge after tax of $196 million.
DIVISIONAL RESULTS
Australia Retail
Maile Carnegie
54
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Net interest income 2,592 2,615 2,608
-1% -1%
Other operating income
269 363 301
-26% -11%
Operating income
2,861 2,978 2,909
-4% -2%
Operating expenses (1,781) (1,781) (1,735)
0% 3%
Cash profit before credit impairment and income tax
1,080 1,197 1,174
-10% -8%
Credit impairment (charge)/release (63) (28) (43)
large 47%
Cash profit before income tax
1,017 1,169 1,131
-13% -10%
Income tax expense (312) (356) (337)
-12% -7%
Cash profit
705 813 794
-13% -11%
Balance Sheet
Net loans and advances 340,953 332,501 322,364
3% 6%
Other external assets
2,831 2,855 3,411
-1% -17%
External assets
343,784 335,356 325,775
3% 6%
Customer deposits 183,357 176,813 172,312
4% 6%
Other external liabilities 3,985 3,988 4,172
0% -4%
External liabilities
187,342 180,801 176,484
4% 6%
Risk weighted assets 121,111 116,931 130,184
4% -7%
Average gross loans and advances 337,660 328,413 318,649
3% 6%
Average deposits and other borrowings
180,088 174,248 168,912
3% 7%
Ratios
Return on average RWA 1.19% 1.30% 1.22%
Net interest margin 1.84% 1.89% 1.94%
Operating expenses to operating income 62.3% 59.8% 59.6%
Operating expenses to average assets 1.05% 1.08% 1.08%
Individually assessed credit impairment charge/(release) 47 51 49
-8% -4%
Individually assessed credit impairment charge/(release) as a % of average GLA
1
0.03% 0.03% 0.03%
Collectively assessed credit impairment charge/(release) 16 (23) (6)
large large
Collectively assessed credit impairment charge/(release) as a % of average GLA
1
0.01% (0.01%) (0.00%)
Gross impaired assets 1,204 870 669
38% 80%
Gross impaired assets as a % of GLA
0.35% 0.26% 0.21%
Total FTE 10,950 10,832 11,383
1% -4%
1.
Credit impairment charge/(release) used in the ratio relates to gross loans and advances and off-balance sheet commitments - undrawn and contingent liabilities.
Performance March 2025 v March 2024
Lending volumes increased driven by home loan growth.
• Net interest margin decreased driven by margin contraction from home
loan pricing competition, and higher net funding costs. This was partially
offset by favourable deposit margins and higher earnings on replicating
portfolio.
• Other operating income decreased driven by higher customer
remediation.
• Operating expenses increased driven by inflationary impacts and
incremental costs associated with strategic initiatives, partially offset by
benefits from productivity initiatives and lower restructuring spend.
• Credit impairment charge increased driven by higher collectively
assessed credit impairment.
Performance March 2025 v September 2024
Lending volumes increased driven by home loan growth.
• Net interest margin decreased driven by margin contraction from home
loan pricing competition and higher net funding costs. This was partially
offset by favourable deposit margins, and higher earnings on replicating
portfolio.
• Other operating income decreased driven by timing of recognition of
cards incentives and lower insurance-related income.
• Operating expenses flat driven by inflationary impacts and higher
restructuring expense, offset by benefits from productivity initiatives and
investment spend seasonality.
• Credit impairment charge increased driven by higher collectively
assessed credit impairment.
DIVISIONAL RESULTS
Australia Retail
Maile Carnegie
55
Individually assessed credit impairment charge/(release) Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Home Loans 7 3 6 large 17%
Cards and Personal Loans
40 47 42 -15% -5%
Deposits and Payments
1
- 1 1 large large
Individually assessed credit impairment charge/(release)
47 51 49 -8% -4%
Collectively assessed credit impairment charge/(release) Half Year Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Home Loans 27 (23) 2 large large
Cards and Personal Loans
(9) (1) (11) large -18%
Deposits and Payments
1
(2) 1 3 large large
Collectively assessed credit impairment charge/(release)
16 (23) (6) large large
Net loans and advances As at
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Home Loans 335,531 326,770 316,517 3% 6%
Cards and Personal Loans
5,395 5,698 5,817 -5% -7%
Deposits and Payments
1
27 33 30 -18% -10%
Net loans and advances
340,953 332,501 322,364 3% 6%
Customer deposits As at Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Home Loans
2
52,712 50,211 47,692 5% 11%
Cards and Personal Loans
176 175 179 1% -2%
Deposits and Payments
130,469 126,427 124,441 3% 5%
Customer deposits
183,357 176,813 172,312 4% 6%
1.
Net loans and advances for the deposits and payments business represent amounts in overdraft.
2.
Customer deposits amount for the home loans business represent balances in offset accounts.
DIVISIONAL RESULTS
Australia Commercial
Clare Morgan
56
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Net interest income 1,589 1,584 1,580
0% 1%
Other operating income
153 173 169
-12% -9%
Operating income
1,742 1,757 1,749
-1% 0%
Operating expenses (755) (744) (763)
1% -1%
Cash profit before credit impairment and income tax
987 1,013 986
-3% 0%
Credit impairment (charge)/release (50) (45) (35)
11% 43%
Cash profit before income tax
937 968 951
-3% -1%
Income tax expense (282) (291) (286)
-3% -1%
Cash profit
655 677 665
-3% -2%
Balance Sheet
Net loans and advances 65,995 65,025 63,874
1% 3%
Other external assets
332 431 405
-23% -18%
External assets
66,327 65,456 64,279
1% 3%
Customer deposits 119,388 116,273 116,463
3% 3%
Other external liabilities 5,423 5,756 5,923
-6% -8%
External liabilities
124,811 122,029 122,386
2% 2%
Risk weighted assets 46,637 45,460 46,601
3% 0%
Average gross loans and advances 66,219 65,752 63,880
1% 4%
Average deposits and other borrowings
120,150 116,314 115,357
3% 4%
Ratios
Return on average RWA 2.86% 2.94% 2.83%
Net interest margin
1
2.53% 2.59% 2.60%
Operating expenses to operating income 43.3% 42.3% 43.6%
Operating expenses to average assets 1.20% 1.21% 1.25%
Individually assessed credit impairment charge/(release) 59 46 26
28% large
Individually assessed credit impairment charge/(release) as a % of average GLA
2
0.18% 0.14% 0.08%
Collectively assessed credit impairment charge/(release) (9) (1) 9
large large
Collectively assessed credit impairment charge/(release) as a % of average GLA
2
(0.03%) (0.00%) 0.03%
Gross impaired assets 386 291 261
33% 48%
Gross impaired assets as a % of GLA
0.58% 0.44% 0.40%
Total FTE 3,361 3,294 3,442
2% -2%
1.
Australia Commercial division generates positive net interest income from surplus deposits held. Accordingly, $60.1 billion of average deposits for the March 2025 half (Sep 24 half:
$57.0 billion; Mar 24 half: $58.1 billion) have been included within average net interest earning assets for the net interest margin calculation to align with the internal management reporting
i
2.
Credit impairment charge/(release) used in the ratio relates to gross loans and advances and off-balance sheet commitments - undrawn and contingent liabilities.
Performance March 2025 v March 2024
Lending volumes increased driven by Diversified & Specialist Businesses.
• Net interest margin decreased driven by asset margin contraction from
pricing competition, unfavourable deposit margin and mix with a shift
towards lower margin savings and term deposits. This was partially offset
by higher earnings on replicating portfolio, and lower net funding costs.
• Other operating income decreased driven by lower non-lending fees.
• Operating expenses decreased driven by benefits from productivity
initiatives and lower restructuring expense partially offset by inflationary
impacts.
• Credit impairment charge increased driven by higher individually
assessed credit impairment charge due to impairment flows in the SME
Banking and Agri portfolios, partially offset by lower collectively assessed
credit impairment.
Performance March 2025 v September 2024
Lending volumes increased driven by Diversified & Specialist Businesses.
• Net interest margin decreased driven by asset margin contraction from
pricing competition, unfavourable deposit margin and mix with a shift
towards lower margin savings and term deposits. This was partially offset
by higher earnings on replicating portfolio, and lower net funding costs.
• Other operating income decreased driven by lower non-lending fees.
• Operating expenses increased driven by inflationary impacts, partially
offset by benefits from productivity initiatives, and timing of investment
spend.
• Credit impairment charge increased driven by higher individually
assessed credit impairment charge due to impairment flows in the SME
Banking and Agri portfolios, partially offset by higher collectively
assessed credit impairment release.
DIVISIONAL RESULTS
Australia Commercial
Clare Morgan
57
Individually assessed credit impairment charge/(release) Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
SME Banking 47 43 29 9% 62%
Diversified & Specialist Businesses
11 2 (3) large large
Central Functions
1 1 - 0% n/a
Individually assessed credit impairment charge/(release)
59 46 26 28% large
Collectively assessed credit impairment charge/(release) Half Year Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
SME Banking 8 (5) 2 large large
Diversified & Specialist Businesses
(22) 4 7 large large
Central Functions
5 - - n/a n/a
Collectively assessed credit impairment charge/(release)
(9) (1) 9 large large
Net loans and advances As at
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
SME Banking
1
24,308 24,247 24,426 0% 0%
Diversified & Specialist Businesses
1
41,545 40,543 39,110 2% 6%
Central Functions
142 235 338 -40% -58%
Net loans and advances
65,995 65,025 63,874 1% 3%
Customer deposits As at Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
SME Banking
74,312 73,251 74,157 1% 0%
Diversified & Specialist Businesses
45,076 43,022 42,306 5% 7%
Customer deposits
119,388 116,273 116,463 3% 3%
1.
Comparative information has been restated to align with current period presentation.
DIVISIONAL RESULTS
Institutional
Mark Whelan
58
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Net interest income 2,033 1,859 1,882
9% 8%
Other operating income
1,386 1,461 1,687
-5% -18%
Operating income
3,419 3,320 3,569
3% -4%
Operating expenses (1,461) (1,431) (1,444)
2% 1%
Cash profit before credit impairment and income tax
1,958 1,889 2,125
4% -8%
Credit impairment (charge)/release (28) 4 6
large large
Cash profit before income tax
1,930 1,893 2,131
2% -9%
Income tax expense (550) (557) (609)
-1% -10%
Cash profit
1,380 1,336 1,522
3% -9%
Balance Sheet
Net loans and advances 216,581 210,464 206,268
3% 5%
Other external assets
402,377 364,534 306,758
10% 31%
External assets
618,958 574,998 513,026
8% 21%
Customer deposits 292,530 264,414 249,169
11% 17%
Other deposits and borrowings 106,205 91,207 70,255
16% 51%
Deposits and other borrowings
398,735 355,621 319,424
12% 25%
Other external liabilities 94,607 104,432 88,020
-9% 7%
External liabilities
493,342 460,053 407,444
7% 21%
Risk weighted assets 178,384 166,906 171,437
7% 4%
Average gross loans and advances 225,664 211,735 207,308
7% 9%
Average deposits and other borrowings
394,567 353,479 369,517
12% 7%
Ratios
Return on average RWA 1.55% 1.59% 1.77%
Net interest margin 0.76% 0.74% 0.76%
Net interest margin (excl. Markets business unit) 2.24% 2.36% 2.39%
Operating expenses to operating income 42.7% 43.1% 40.5%
Operating expenses to average assets 0.45% 0.48% 0.49%
Individually assessed credit impairment charge/(release) 17 (18) (49)
large large
Individually assessed credit impairment charge/(release) as a % of average GLA
1
0.02% (0.02%) (0.05%)
Collectively assessed credit impairment charge/(release) 11 14 43
-21% -74%
Collectively assessed credit impairment charge/(release) as a % of average GLA
1
0.01% 0.01% 0.04%
Gross impaired assets 319 284 437
12% -27%
Gross impaired assets as a % of GLA
0.15% 0.13% 0.21%
Total FTE 6,460 6,272 6,310
3% 2%
1.
Credit impairment charge/(release) used in the ratio relates to gross loans and advances and off-balance sheet commitments - undrawn and contingent liabilities.
Performance March 2025 v March 2024
Lending volumes increased driven by Corporate Finance and Transaction
Banking, partially offset by Markets.
• Net interest margin (excl. Markets business unit) decreased driven by
impact from lower cash rates, unfavourable mix impacts from faster
growth in average lending compared to average deposits, and lower
asset margins.
• Other operating income decreased driven by Markets reflecting a less
favourable external trading environment.
• Operating expenses increased driven by inflationary impacts partially
offset by benefits from productivity initiatives and lower restructuring
expenses.
• Credit impairment charge increased driven by higher individually
assessed credit impairment charge due to lower write-backs and
recoveries and new impairment on a few single name customers,
partially offset by lower collectively assessed credit impairment charge.
Performance March 2025 v September 2024
Lending volumes increased driven by Corporate Finance and Transaction
Banking, partially offset by Markets.
• Net interest margin (excl. Markets business unit) decreased driven by
impacts from lower cash rates, unfavourable mix impacts from faster
growth in average lending compared to average deposits, and lower
asset margins.
• Other operating income decreased driven by Markets.
• Operating expenses increased driven by inflationary impacts partially
offset by benefits from productivity initiatives, lower restructuring
expense, and timing of investment spend.
• Credit impairment charge increased driven by higher individually
assessed credit impairment charge due to lower write-backs and
recoveries and new impairment on a few single name customers.
DIVISIONAL RESULTS
Institutional
Mark Whelan
59
Institutional by Geography
Half Year
Movement
Australia
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Net interest income 918 812 778
13% 18%
Other operating income
644 723 807
-11% -20%
Operating income
1,562 1,535 1,585
2% -1%
Operating expenses (723) (678) (683)
7% 6%
Cash profit before credit impairment and income tax
839 857 902
-2% -7%
Credit impairment (charge)/release (67) 12 (4)
large large
Cash profit before income tax
772 869 898
-11% -14%
Income tax expense (234) (260) (269)
-10% -13%
Cash profit
538 609 629
-12% -14%
Individually assessed credit impairment charge/(release) 33 (43) (26)
large large
Collectively assessed credit impairment charge/(release) 34 31 30
10% 13%
Net loans and advances
122,516 121,203 117,157
1% 5%
Customer deposits
105,876 104,184 101,486
2% 4%
Risk weighted assets
84,877 82,719 84,977
3% 0%
International and PNG
Net interest income 778 703 753
11% 3%
Other operating income
618 607 730
2% -15%
Operating income
1,396 1,310 1,483
7% -6%
Operating expenses (623) (637) (648)
-2% -4%
Cash profit before credit impairment and income tax
773 673 835
15% -7%
Credit impairment (charge)/release 39 (22) 37
large 5%
Cash profit before income tax
812 651 872
25% -7%
Income tax expense (219) (193) (238)
13% -8%
Cash profit
593 458 634
29% -6%
Individually assessed credit impairment charge/(release) (8) 18 (13)
large -38%
Collectively assessed credit impairment charge/(release) (31) 4 (24)
large 29%
Net loans and advances
78,194 73,121 72,089
7% 8%
Customer deposits
161,824 136,013 123,306
19% 31%
Risk weighted assets
72,954 63,477 65,148
15% 12%
New Zealand
Net interest income 337 344 351
-2% -4%
Other operating income
124 131 150
-5% -17%
Operating income
461 475 501
-3% -8%
Operating expenses (115) (116) (113)
-1% 2%
Cash profit before credit impairment and income tax
346 359 388
-4% -11%
Credit impairment (charge)/release - 14 (27)
large large
Cash profit before income tax
346 373 361
-7% -4%
Income tax expense (97) (104) (102)
-7% -5%
Cash profit
249 269 259
-7% -4%
Individually assessed credit impairment charge/(release) (8) 7 (10)
large -20%
Collectively assessed credit impairment charge/(release) 8 (21) 37
large -78%
Net loans and advances
15,871 16,140 17,022
-2% -7%
Customer deposits
24,830 24,217 24,377
3% 2%
Risk weighted assets
20,553 20,710 21,312
-1% -4%
DIVISIONAL RESULTS
Institutional
Mark Whelan
60
Individually assessed credit impairment charge/(release)
Half Year Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Transaction Banking
14 (3) (10)
large large
Corporate Finance
3 (15) (39)
large large
Markets
- - -
n/a n/a
Individually assessed credit impairment charge/(release)
17 (18) (49)
large large
Collectively assessed credit impairment charge/(release)
Half Year Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Transaction Banking
22 (1) 9
large large
Corporate Finance
- 7 32
large large
Markets
(11) 8 2
large large
Collectively assessed credit impairment charge/(release)
11 14 43
-21% -74%
Net loans and advances
As at Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Transaction Banking 21,141 17,637 17,666
20% 20%
Corporate Finance
154,485 145,232 143,440
6% 8%
Markets
40,942 47,563 45,150
-14% -9%
Central Functions
13 32 12
-59% 8%
Net loans and advances
216,581 210,464 206,268
3% 5%
Customer deposits
As at Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Transaction Banking 156,308 153,576 149,691
2% 4%
Corporate Finance
1,538 1,082 1,166
42% 32%
Markets
134,620 109,666 98,202
23% 37%
Central Functions
64 90 110
-29% -42%
Customer deposits
292,530 264,414 249,169
11% 17%
DIVISIONAL RESULTS
Institutional
Mark Whelan
61
March 2025 Half Year
Transaction
Banking
1
$M
Corporate
Finance
$M
Markets
$M
Central
Functions
1
$M
Total
$M
Net interest income
776 1,164 82 11 2,033
Other operating income
366 28 991 1 1,386
Operating income
1,142 1,192 1,073 12 3,419
Operating expenses (438) (403) (605) (15) (1,461)
Cash profit/(loss) before credit impairment and income tax
704 789 468 (3) 1,958
Credit impairment (charge)/release (36) (3) 11 - (28)
Cash profit/(loss) before income tax
668 786 479 (3) 1,930
Income tax expense (186) (213) (137) (14) (550)
Cash profit/(loss)
482 573 342 (17) 1,380
Individually assessed credit impairment charge/(release) 14 3 - - 17
Collectively assessed credit impairment charge/(release)
22 - (11) - 11
Net loans and advances
21,141 154,485 40,942 13 216,581
Customer deposits
156,308 1,538 134,620 64 292,530
Risk weighted assets
25,651 97,108 54,451 1,174 178,384
March 2024 Half Year
Net interest income 796 1,137 (64) 13 1,882
Other operating income 362 53 1,276 (4) 1,687
Operating income 1,158 1,190 1,212 9 3,569
Operating expenses (401) (383) (597) (63) (1,444)
Cash profit/(loss) before credit impairment and income tax 757 807 615 (54) 2,125
Credit impairment (charge)/release 1 7 (2) - 6
Cash profit/(loss) before income tax 758 814 613 (54) 2,131
Income tax expense (205) (224) (171) (9) (609)
Cash profit/(loss) 553 590 442 (63) 1,522
Individually assessed credit impairment charge/(release) (10) (39) - - (49)
Collectively assessed credit impairment charge/(release) 9 32 2 - 43
Net loans and advances 17,666 143,440 45,150 12 206,268
Customer deposits 149,691 1,166 98,202 110 249,169
Risk weighted assets 24,855 88,955 56,326 1,301 171,437
March 2025 Half Year v March 2024 Half Year
Net interest income -3% 2% large -15% 8%
Other operating income 1% -47% -22% large -18%
Operating income -1% 0% -11% 33% -4%
Operating expenses 9% 5% 1% -76% 1%
Cash profit/(loss) before credit impairment and income tax -7% -2% -24% -94% -8%
Credit impairment (charge)/release large large large n/a large
Cash profit/(loss) before income tax -12% -3% -22% -94% -9%
Income tax expense -9% -5% -20% 56% -10%
Cash profit/(loss) -13% -3% -23% -73% -9%
Individually assessed credit impairment charge/(release) large large n/a n/a large
Collectively assessed credit impairment charge/(release) large large large n/a -74%
Net loans and advances 20% 8% -9% 8% 5%
Customer deposits 4% 32% 37% -42% 17%
Risk weighted assets 3% 9% -3% -10% 4%
1.
Comparative information has been restated to align with current period presentation.
DIVISIONAL RESULTS
Institutional
Mark Whelan
62
March 2025 Half Year
Transaction
Banking
1
$M
Corporate
Finance
$M
Markets
$M
Central
Functions
1
$M
Total
$M
Net interest income
776 1,164 82 11 2,033
Other operating income
366 28 991 1 1,386
Operating income
1,142 1,192 1,073 12 3,419
Operating expenses (438) (403) (605) (15) (1,461)
Cash profit/(loss) before credit impairment and income tax
704 789 468 (3) 1,958
Credit impairment (charge)/release (36) (3) 11 - (28)
Cash profit/(loss) before income tax
668 786 479 (3) 1,930
Income tax expense (186) (213) (137) (14) (550)
Cash profit/(loss)
482 573 342 (17) 1,380
Individually assessed credit impairment charge/(release) 14 3 - - 17
Collectively assessed credit impairment charge/(release)
22 - (11) - 11
Net loans and advances
21,141 154,485 40,942 13 216,581
Customer deposits
156,308 1,538 134,620 64 292,530
Risk weighted assets
25,651 97,108 54,451 1,174 178,384
September 2024 Half Year
Net interest income 777 1,136 (67) 13 1,859
Other operating income 365 59 1,039 (2) 1,461
Operating income 1,142 1,195 972 11 3,320
Operating expenses (417) (377) (577) (60) (1,431)
Cash profit/(loss) before credit impairment and income tax 725 818 395 (49) 1,889
Credit impairment (charge)/release 4 8 (8) - 4
Cash profit/(loss) before income tax 729 826 387 (49) 1,893
Income tax expense (199) (222) (112) (24) (557)
Cash profit/(loss) 530 604 275 (73) 1,336
Individually assessed credit impairment charge/(release) (3) (15) - - (18)
Collectively assessed credit impairment charge/(release) (1) 7 8 - 14
Net loans and advances 17,637 145,232 47,563 32 210,464
Customer deposits 153,576 1,082 109,666 90 264,414
Risk weighted assets 23,674 91,190 50,824 1,218 166,906
March 2025 Half Year v September 2024 Half Year
Net interest income 0% 2% large -15% 9%
Other operating income 0% -53% -5% large -5%
Operating income 0% 0% 10% 9% 3%
Operating expenses 5% 7% 5% -75% 2%
Cash profit/(loss) before credit impairment and income tax -3% -4% 18% -94% 4%
Credit impairment (charge)/release large large large n/a large
Cash profit/(loss) before income tax -8% -5% 24% -94% 2%
Income tax expense -7% -4% 22% -42% -1%
Cash profit/(loss) -9% -5% 24% -77% 3%
Individually assessed credit impairment charge/(release) large large n/a n/a large
Collectively assessed credit impairment charge/(release) large large large n/a -21%
Net loans and advances 20% 6% -14% -59% 3%
Customer deposits 2% 42% 23% -29% 11%
Risk weighted assets 8% 6% 7% -4% 7%
1.
Comparative information has been restated to align with current period presentation.
DIVISIONAL RESULTS
Institutional
Mark Whelan
63
Analysis of Markets operating income
1
Half Year Movement
Composition of Markets operating income by product
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Foreign Exchange 370 352 394
5% -6%
Rates
211 164 232
29% -9%
Credit and Capital Markets
114 120 125
-5% -9%
Commodities
55 45 118
22% -53%
Franchise Revenue
750 681 869
10% -14%
Balance Sheet
2
301 247 284 22% 6%
Derivative valuation adjustments
3
22 44 59 -50% -63%
Markets operating income
1,073 972 1,212
10% -11%
1.
Markets operating income includes Net interest income and Other operating income.
2.
Balance Sheet represents hedging of interest rate risk on the Group’s loan and deposit books and the management of the Group’s liquidity portfolio.
3.
Includes funding and credit valuation adjustments net of associated hedges.
Half Year
Movement
Composition of Markets operatin
g income by geography
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Australia 329 330 368
0% -11%
International and PNG
1
627 528 713
19% -12%
New Zealand
117 114 131
3% -11%
Markets operating income
1,073 972 1,212
10% -11%
1.
Comprises the countries outside of Australia and New Zealand that form part of the Institutional division. This includes Asia, Papua New Guinea, Europe & America.
DIVISIONAL RESULTS
Institutional
Mark Whelan
64
Market risk
Market risk stems from the Group’s trading and balance sheet management activities and the impact of changes and correlations between interest rates,
foreign exchange rates, credit spreads, commodities, equities and the volatility within these asset classes.
The Group manages and controls market risk using Value at Risk (VaR), sensitivity analysis and stress testing. VaR measures the Group’s possible daily
loss based on historical market movements.
The Group’s VaR approach for both traded and non-traded risk is historical simulation using changes in market rates, prices and volatilities over the
previous 500 business days to calculate standard VaR and a 1-year stressed period to calculate stressed VaR.
VaR is measured at 99% confidence interval which means there is a 99% chance that a loss will not exceed the VaR for the relevant holding period.
Traded market risk (excl. Suncorp Bank)
Below are aggregate VaR exposures at a 99% confidence level covering both physical and derivative trading positions for the Group’s (excluding
Suncorp Bank) principal trading centres. Suncorp Bank traded market risk is not material and not disclosed separately.
99% confidence level (1 day holding period)
High for Low for Avg for
High for Low for Avg for
As at half year half year half year
As at year year year
Mar 25
$M
Mar 25
$M
Mar 25
$M
Mar 25
$M
Sep 24
$M
Sep 24
$M
Sep 24
$M
Sep 24
$M
Value at Risk at 99% confidence
Foreign exchange
2.8 8.9 2.4 3.6 3.2 11.5 2.2 5.0
Interest rate
4.7 7.2 3.8 5.4 6.4 19.2 4.8 8.7
Credit
3.4 8.2 3.4 5.5 5.7 8.1 4.2 6.7
Commodities
8.7 10.9 2.3 4.9 3.3 5.0 1.8 2.9
Equity
- - - - - - - -
Diversification benefit
1
(10.3) n/a n/a (9.6) (9.9) n/a n/a (10.2)
Total VaR
9.3 12.9 6.8 9.8 8.7 22.5 8.0 13.1
Non-traded interest rate risk (excl. Suncorp Bank)
Non-traded interest rate risk is managed by Markets and relates to the potential adverse impact of changes in market interest rates on future net interest
income for the Group and current valuation of the banking book. Interest rate risk is reported using various techniques including VaR and scenario
analysis based on a 1% rate shock. Suncorp Bank non-traded interest rate risk is not material and not disclosed separately.
99% confidence level (1 day holding period)
High for Low for Avg for
High for Low for Avg for
As at half year half year half year As at year year year
Mar 25
$M
Mar 25
$M
Mar 25
$M
Mar 25
$M
Sep 24
$M
Sep 24
$M
Sep 24
$M
Sep 24
$M
Value at Risk at 99% confidence
Australia
92.1 92.2 84.4 88.3 97.7 97.7 70.8 78.9
New Zealand
24.0 25.5 24.0 24.5 27.4 28.2 24.3 25.9
Rest of World
22.3 37.7 22.3 31.3 32.9 39.5 29.0 34.8
Diversification benefit
1
(43.8) n/a n/a (48.2) (63.0) n/a n/a (46.9)
Total VaR
94.6 99.0 94.6 95.9 95.0 99.5 81.3 92.7
Impact of 1% rate shock on the next 12 months’ net interest income
2
As at
Mar 25 Sep 24
As at period end 1.29% 0.68%
Maximum exposure
1.61% 1.20%
Minimum exposure
1.13% 0.27%
Average exposure (in absolute terms)
1.35% 0.78%
1.
The diversification benefit reflects risks that offset across categories. The high and low VaR figures reported for each factor did not necessarily occur on the same day as the high and low
VaR reported for the Group as a whole. Consequently, a diversification benefit for high and low would not be meaningful and is therefore omitted from the table.
2.
Modelled 1% overnight parallel positive shift in the yield curve to determine the potential impact on Net interest income over the next 12 months. This is a standard risk measure which
assumes the parallel shift is reflected in all wholesale and customer rates.
DIVISIONAL RESULTS
New Zealand
Antonia Watson
65
Table reflects NZD for New Zealand (AUD results shown on page 69)
Half Year Movement
Mar 25
NZD M
Sep 24
NZD M
Mar 24
NZD M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Net interest income 1,755 1,716 1,692
2% 4%
Other operating income
214 209 224
2% -4%
Operating income
1,969 1,925 1,916
2% 3%
Operating expenses (759) (763) (729)
-1% 4%
Cash profit before credit impairment and income tax
1,210 1,162 1,187
4% 2%
Credit impairment (charge)/release 5 (26) (4)
large large
Cash profit before income tax
1,215 1,136 1,183
7% 3%
Income tax expense (341) (322) (331)
6% 3%
Cash profit
874 814 852
7% 3%
Balance Sheet
Net loans and advances 136,454 134,399 132,608
2% 3%
Other external assets
3,756 3,840 3,664
-2% 3%
External assets
140,210 138,239 136,272
1% 3%
Customer deposits 113,584 109,810 108,789
3% 4%
Other deposits and borrowings 4,318 4,147 7,208
4% -40%
Deposits and other borrowings
117,902 113,957 115,997
3% 2%
Other external liabilities 16,744 16,850 17,358
-1% -4%
External liabilities
134,646 130,807 133,355
3% 1%
Risk weighted assets 65,874 67,551 72,778
-2% -9%
Average gross loans and advances 136,023 134,160 132,438
1% 3%
Average deposits and other borrowings
116,653 115,566 114,514
1% 2%
Net funds management income
99 101 99
-2% 0%
Funds under management 38,861 39,663 40,514
-2% -4%
Average funds under management
39,431 39,945 38,745
-1% 2%
Ratios
Return on average RWA 2.64% 2.34% 2.31%
Net interest margin 2.60% 2.57% 2.56%
Operating expenses to operating income 38.5% 39.6% 38.0%
Operating expenses to average assets 1.09% 1.11% 1.08%
Individually assessed credit impairment charge/(release) 23 31 14
-26% 64%
Individually assessed credit impairment charge/(release) as a % of
average GLA
1
0.03% 0.05% 0.02%
Collectively assessed credit impairment charge/(release) (28) (5) (10)
large large
Collectively assessed credit impairment charge/(release) as a % of
average GLA
1
(0.04%) (0.01%) (0.02%)
Gross impaired assets 215 171 130
26% 65%
Gross impaired assets as a % of GLA
0.16% 0.13% 0.10%
Total FTE 6,680 6,756 6,754
-1% -1%
1.
Credit impairment charge/(release) used in the ratio relates to gross loans and advances and off-balance sheet commitments - undrawn and contingent liabilities.
Performance March 2025 v March 2024
Lending volumes increased driven by home loan growth, partially offset by
contraction in business and unsecured lending.
• Net interest margin increased driven by favourable lending margins,
partially offset by unfavourable deposit margin.
• Other operating income decreased driven by lower non-lending fees.
• Operating expenses increased driven by inflationary impacts partially
offset by benefits from productivity initiatives.
• Credit impairment decreased driven by higher collectively assessed
credit impairment release, partially offset by higher individually assessed
credit impairment charge.
Performance March 2025 v September 2024
Lending volumes increased driven by home loan growth, partially offset by
contraction in business and unsecured lending.
• Net interest margin increased driven by favourable lending margins,
partially offset by unfavourable deposit margin.
• Other operating income increased driven by timing of card incentives and
seasonality of fees.
• Operating expenses decreased driven by lower restructuring expense,
productivity benefits and timing of investment spend, partially offset by
inflationary impacts.
• Credit impairment decreased driven by higher collectively assessed
credit impairment release, partially offset by lower individually assessed
credit impairment charge.
DIVISIONAL RESULTS
New Zealand
Antonia Watson
66
Individually assessed credit impairment charge/(release) Half Year
Movement
Mar 25
NZD M
Sep 24
NZD M
Mar 24
NZD M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Personal 14 14 9
0% 56%
Home Loans
3 4 -
-25% n/a
Other
11 10 9
10% 22%
Business & Agri
9 17 5 -47% 80%
Individually assessed credit impairment charge/(release)
23 31 14 -26% 64%
Collectively assessed credit impairment charge/(release) Half Year Movement
Mar 25
NZD M
Sep 24
NZD M
Mar 24
NZD M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Personal 6 (53) 13
large -54%
Home Loans
(14) (13) 18
8% large
Other
20 (40) (5)
large large
Business & Agri
(34) 48 (23) large 48%
Collectively assessed credit impairment charge/(release)
(28) (5) (10) large large
Net loans and advances As at Movement
Mar 25
NZD M
Sep 24
NZD M
Mar 24
NZD M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Personal 112,818 110,447 108,721
2% 4%
Home Loans
111,200 108,806 107,111
2% 4%
Other
1,618 1,641 1,610
-1% 0%
Business & Agri
23,636 23,952 23,887 -1% -1%
Net loans and advances
136,454 134,399 132,608
2% 3%
Customer deposits As at Movement
Mar 25
NZD M
Sep 24
NZD M
Mar 24
NZD M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Personal 94,401 91,814 90,493
3% 4%
Business & Agri
19,183 17,996 18,296 7% 5%
Customer deposits
113,584 109,810 108,789
3% 4%
DIVISIONAL RESULTS
New Zealand
Antonia Watson
67
March 2025 Half Year
Personal
NZD M
Business
& Agri
NZD M
Central
Functions
NZD M
Total
NZD M
Net interest income
1,273 478 4 1,755
Other operating income
193 22 (1) 214
Operating income
1,466 500 3 1,969
Operating expenses (608) (146) (5) (759)
Cash profit before credit impairment and income tax
858 354 (2) 1,210
Credit impairment (charge)/release (20) 25 - 5
Cash profit before income tax
838 379 (2) 1,215
Income tax expense (235) (106) - (341)
Cash profit
603 273 (2) 874
Individually assessed credit impairment charge/(release) 14 9 - 23
Collectively assessed credit impairment charge/(release)
6 (34) - (28)
Net loans and advances
112,818 23,636 - 136,454
Customer deposits
94,401 19,183 - 113,584
Risk weighted assets
42,158 20,581 3,135 65,874
March 2024 Half Year
Net interest income 1,170 515 7 1,692
Other operating income 200 25 (1) 224
Operating income 1,370 540 6 1,916
Operating expenses (590) (134) (5) (729)
Cash profit before credit impairment and income tax 780 406 1 1,187
Credit impairment (charge)/release (22) 18 - (4)
Cash profit before income tax 758 424 1 1,183
Income tax expense (213) (119) 1 (331)
Cash profit 545 305 2 852
Individually assessed credit impairment charge/(release) 9 5 - 14
Collectively assessed credit impairment charge/(release) 13 (23) - (10)
Net loans and advances 108,721 23,887 - 132,608
Customer deposits 90,493 18,296 - 108,789
Risk weighted assets 49,093 21,421 2,264 72,778
March 2025 Half Year v March 2024 Half Year
Net interest income 9% -7% -43% 4%
Other operating income -4% -12% 0% -4%
Operating income 7% -7% -50% 3%
Operating expenses 3% 9% 0% 4%
Cash profit before credit impairment and income tax 10% -13% large 2%
Credit impairment (charge)/release -9% 39% n/a large
Cash profit before income tax 11% -11% large 3%
Income tax expense 10% -11% large 3%
Cash profit 11% -10% large 3%
Individually assessed credit impairment charge/(release) 56% 80% n/a 64%
Collectively assessed credit impairment charge/(release) -54% 48% n/a large
Net loans and advances 4% -1% n/a 3%
Customer deposits 4% 5% n/a 4%
Risk weighted assets -14% -4% 38% -9%
DIVISIONAL RESULTS
New Zealand
Antonia Watson
68
March 2025 Half Year
Personal
NZD M
Business
& Agri
NZD M
Central
Functions
NZD M
Total
NZD M
Net interest income
1,273 478 4 1,755
Other operating income
193 22 (1) 214
Operating income
1,466 500 3 1,969
Operating expenses (608) (146) (5) (759)
Cash profit before credit impairment and income tax
858 354 (2) 1,210
Credit impairment (charge)/release (20) 25 - 5
Cash profit before income tax
838 379 (2) 1,215
Income tax expense (235) (106) - (341)
Cash profit
603 273 (2) 874
Individually assessed credit impairment charge/(release) 14 9 - 23
Collectively assessed credit impairment charge/(release)
6 (34) - (28)
Net loans and advances
112,818 23,636 - 136,454
Customer deposits
94,401 19,183 - 113,584
Risk weighted assets
42,158 20,581 3,135 65,874
September 2024 Half Year
Net interest income 1,213 498 5 1,716
Other operating income 186 22 1 209
Operating income 1,399 520 6 1,925
Operating expenses (622) (142) 1 (763)
Cash profit before credit impairment and income tax 777 378 7 1,162
Credit impairment (charge)/release 39 (65) - (26)
Cash profit before income tax 816 313 7 1,136
Income tax expense (231) (88) (3) (322)
Cash profit 585 225 4 814
Individually assessed credit impairment charge/(release) 14 17 - 31
Collectively assessed credit impairment charge/(release) (53) 48 - (5)
Net loans and advances 110,447 23,952 - 134,399
Customer deposits 91,814 17,996 - 109,810
Risk weighted assets 42,861 21,776 2,914 67,551
March 2025 Half Year v September 2024 Half Year
Net interest income 5% -4% -20% 2%
Other operating income 4% 0% large 2%
Operating income 5% -4% -50% 2%
Operating expenses -2% 3% large -1%
Cash profit before credit impairment and income tax 10% -6% large 4%
Credit impairment (charge)/release large large n/a large
Cash profit before income tax 3% 21% large 7%
Income tax expense 2% 20% large 6%
Cash profit 3% 21% large 7%
Individually assessed credit impairment charge/(release) 0% -47% n/a -26%
Collectively assessed credit impairment charge/(release) large large n/a large
Net loans and advances 2% -1% n/a 2%
Customer deposits 3% 7% n/a 3%
Risk weighted assets -2% -5% 8% -2%
DIVISIONAL RESULTS
New Zealand
Antonia Watson
69
Table reflects AUD for New Zealand (NZD results shown on page 65)
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Net interest income
1,589 1,571 1,572
1% 1%
Other operating income
193 191 208
1% -7%
Operating income
1,782 1,762 1,780
1% 0%
Operating expenses (685) (699) (677)
-2% 1%
Cash profit before credit impairment and income tax
1,097 1,063 1,103
3% -1%
Credit impairment (charge)/release 4 (24) (4)
large large
Cash profit before income tax
1,101 1,039 1,099
6% 0%
Income tax expense (309) (294) (308)
5% 0%
Cash profit
792 745 791
6% 0%
Consisting of:
Personal 547 535 507
2% 8%
Business & Agri
247 206 283
20% -13%
Central Functions
(2) 4 1
large large
Cash profit
792 745 791
6% 0%
Balance Sheet
Net loans and advances 124,052 123,504 121,625
0% 2%
Other external assets
3,415 3,528 3,361
-3% 2%
External assets
127,467 127,032 124,986
0% 2%
Customer deposits 103,260 100,907 99,779
2% 3%
Other deposits and borrowings 3,926 3,811 6,611
3% -41%
Deposits and other borrowings
107,186 104,718 106,390
2% 1%
Other external liabilities 15,222 15,485 15,920
-2% -4%
External liabilities
122,408 120,203 122,310
2% 0%
Risk weighted assets 59,887 62,075 66,750
-4% -10%
Average gross loans and advances 123,167 122,770 123,073
0% 0%
Average deposits and other borrowings
105,628 105,751 106,417
0% -1%
Net funds management income
90 93 92
-3% -2%
Funds under management 35,328 36,448 37,159
-3% -5%
Average funds under management
35,704 36,553 36,005
-2% -1%
Ratios
Return on average RWA
2.64% 2.34% 2.31%
Net interest margin
2.60% 2.57% 2.56%
Operating expenses to operating income
38.5% 39.6% 38.0%
Operating expenses to average assets
1.09% 1.11% 1.08%
Individually assessed credit impairment charge/(release)
21 28 14
-25% 50%
Individually assessed credit impairment charge/(release) as a % of
average GLA
1
0.03% 0.05% 0.02%
Collectively assessed credit impairment charge/(release)
(25) (4) (10)
large large
Collectively assessed credit impairment charge/(release) as a % of
average GLA
1
(0.04%) (0.01%) (0.02%)
Gross impaired assets
195 158 119
23% 64%
Gross impaired assets as a % of GLA
0.16% 0.13% 0.10%
Total FTE
6,680 6,756 6,754
-1% -1%
1.
Credit impairment charge/(release) used in the ratio relates to gross loans and advances and off-balance sheet commitments - undrawn and contingent liabilities.
DIVISIONAL RESULTS
Suncorp Bank
Bruce Rush
70
The reported results for the March 2025 and the September 2024 halves include 6 months and 2 months results for Suncorp Bank respectively.
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Net interest income
1
823 251 -
large n/a
Other operating income
30 6 -
large n/a
Operating income
853 257 -
large n/a
Operating expenses
2
(433) (188) -
large n/a
Cash profit before credit impairment and income tax
420 69 -
large n/a
Credit impairment (charge)/release
3
(11) (243) -
-95% n/a
Cash profit/(loss) before income tax
409 (174) -
large n/a
Income tax (expense)/benefit (123) 52 -
large n/a
Cash profit/(loss)
286 (122) -
large n/a
Balance Sheet
Net loans and advances 71,517 70,871 -
1% n/a
Other external assets
4
17,268 16,314 -
6% n/a
External assets
88,785 87,185 -
2% n/a
Customer deposits 55,586 54,715 -
2% n/a
Other external liabilities 26,897 26,895 -
0% n/a
External liabilities
82,483 81,610 -
1% n/a
Risk weighted assets 33,280 33,422 -
0% n/a
Average gross loans and advances
5
71,327 23,832 -
large n/a
Average deposits and other borrowings
5
62,837 20,976 -
large n/a
Ratios
Return on average RWA 1.72% -2.21% n/a
Net interest margin 2.12% 1.93% n/a
Operating expenses to operating income 50.8% 73.2% n/a
Operating expenses to average assets 1.00% 1.30% n/a
Individually assessed credit impairment charge/(release) 14 (1) -
large n/a
Individually assessed credit impairment charge/(release) as a % of average GLA
6
0.04% (0.01%) n/a
Collectively assessed credit impairment charge/(release)
3
(3) 244 -
large n/a
Collectively assessed credit impairment charge/(release) as a % of average GLA
3,6
(0.01%) 2.05% n/a
Gross impaired assets 123 66 -
86% n/a
Gross impaired assets as a % of GLA
0.17% 0.09% n/a
Total FTE 2,791 2,798 -
0% n/a
1.
Includes $50 million from unwinding of acquisition related fair value adjustments recognised against loans and advances, deposits and debt issuance over the residual maturities of the
underlying financial assets and liabilities for the September 2024 half (refer to Guide to Results on page 8 for further information).
2.
Includes $36 million accelerated amortisation expense on alignment to the Group’s software capitalisation policy for the September 2024 half.
3.
Includes $244 million credit impairment charge recognised on performing loans and advances for the September 2024 half (refer to Guide to Results on page 8 for further information).
4.
Includes provisional value of goodwill of $1,205 million as at March 2025 (Sep 24: $1,402 million). Refer to Note 19 Suncorp Bank acquisition for further information.
5.
Based on 2 months of balances from the date of acquisition for the September 2024 half.
6.
Credit impairment charge/(release) used in the ratio relates to gross loans and advances and off-balance sheet commitments - undrawn and contingent liabilities.
DIVISIONAL RESULTS
Pacific
Antonia Watson
71
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Net interest income 55 60 63
-8% -13%
Other operating income
44 47 44 -6% 0%
Operating income
99 107 107 -7% -7%
Operating expenses (74) (68) (70) 9% 6%
Cash profit before credit impairment and income tax
25 39 37 -36% -32%
Credit impairment (charge)/release 3 2 6 50% -50%
Cash profit before income tax
28 41 43 -32% -35%
Income tax expense (7) (11) (11) -36% -36%
Non-controlling interests
(1) (1) (1) 0% 0%
Cash profit
20 29 31 -31% -35%
Balance Sheet
Net loans and advances 1,749 1,665 1,678 5% 4%
Customer deposits
3,718 3,565 3,657 4% 2%
Risk weighted assets
3,762 3,588 3,620 5% 4%
Total FTE
1,014 985 972 3% 4%
Group Centre
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Share of associates' profit/(loss)
38 21 84 81% -55%
Operating income (other)
201 260 149 -23% 35%
Operating income
239 281 233 -15% 3%
Operating expenses
(553) (615) (526) -10% 5%
Cash profit/(loss) before credit impairment and income tax
(314) (334) (293) -6% 7%
Credit impairment (charge)/release - (2) - large n/a
Cash profit/(loss) before income tax
(314) (336) (293) -7% 7%
Income tax (expense)/benefit 64 51 55 25% 16%
Non-controlling interests
(20) (20) (13) 0% 54%
Cash profit/(loss)
(270) (305) (251) -11% 8%
Risk weighted assets 25,938 18,200 14,187 43% 83%
Total FTE
11,838 11,433 11,401 4% 4%
DIVISIONAL RESULTS
72
This page has been left blank intentionally
PROFIT RECONCILIATION
73
CONTENTS Page
Adjustments between statutory profit and cash profit 74
Explanation of adjustments between statutory profit and cash profit 74
Reconciliation of statutory profit to cash profit 75
PROFIT RECONCILIATION
74
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 Results Announcement which are prepared on a basis other than in accordance
with accounting standards. The guidance provided in ASIC Regulatory Guide 230 has been followed when presenting this information.
Adjustments between statutory profit and cash profit
Cash profit, a non-IFRS measure, represents the Group’s preferred measure of the result of its core business activities, 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 129 to 132 for further details). The adjustments made in arriving at cash profit are included in statutory profit
which is subject to review within the context of the external auditor’s review of the Condensed Consolidated Financial Statements. Cash profit is not
subject to review by the external auditor.
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Statutory profit attributable to shareholders of the Company
3,642 3,128 3,407 16% 7%
Adjustments between statutory profit and cash profit
Economic hedges
(167) 67 197 large large
Revenue and expense hedges
36 (22) (52) large large
Amortisation of acquired intangible assets
57 - - n/a n/a
Total adjustments between statutory profit and cash profit
(74) 45 145 large large
Cash profit 3,568 3,173 3,552 12% 0%
Explanation of adjustments between statutory profit and cash profit
• Economic hedges
The Group enters into economic hedges to manage its interest rate and foreign exchange risk which, in accordance with accounting standards, result
in fair value gains and losses being recognised in the Income Statement. This includes gains and losses arising from approved classes of derivatives
not designated in accounting hedge relationships, but which are considered to be economic hedges, as well as ineffectiveness from designated
accounting hedges.
Economic hedges comprise:
• Derivatives (primarily cross currency interest rate swaps) used to convert the proceeds of foreign currency debt issuances into floating rate
Australian dollar and New Zealand dollar debt that do not qualify for hedge accounting. The main drivers of these fair value movements are
currency basis spreads and Australian dollar and New Zealand dollar fluctuations against other major funding currencies.
• Economic hedges of select structured finance and specialised leasing transactions that do not qualify for hedge accounting. The main drivers of
these fair value adjustments are movements in the Australian and New Zealand term structure of interest rates.
• Ineffectiveness arising from differences in certain factors between the hedged items and the hedging instruments.
The Group removes the fair value adjustments from cash profit since the profit or loss will reverse over time to match with the profit or loss from the
underlying hedged item.
The gains on economic hedges for the March 2025 half related to funding-related swaps, principally from the strengthening of the USD against the
AUD and NZD, partially offset by the narrowing of USD/AUD currency basis spreads.
• Revenue and expense hedges
The Group enters into economic hedges to manage exposures from larger foreign exchange denominated revenue and expense streams, primarily
NZD and USD (and USD correlated). The loss on revenue and expense hedges for the March 2025 half was driven by the depreciation of AUD
against the USD, partially offset by gains from appreciation of the AUD against NZD.
• Amortisation of acquired intangible assets
The acquisition of Suncorp Bank resulted in the recognition of intangible assets of $685 million comprising core deposit and brand intangibles, which
are being amortised over their useful lives ranging between 3 to 6 years. The amortisation is removed from cash profit as the assets and associated
amortisation only arise through acquisition accounting and would not occur in the ordinary course of business. A $57 million charge after tax was
recognised in the March 2025 half.
PROFIT RECONCILIATION
75
Reconciliation of statutory profit to cash profit
Adjustments to statutory profit
Statutory profit
Economic
hedges
Revenue and
expense
hedges
Amortisation of
acquired
intangible
assets
Total
adjustments to
statutory profit Cash profit
$M $M $M $M $M $M
March 2025 Half Year
Net interest income 8,869 - - - - 8,869
Other operating income
2,310 (236) 52 - (184) 2,126
Operating income
11,179 (236) 52 - (184) 10,995
Operating expenses (5,824) - - 82 82 (5,742)
Profit/(Loss) before credit impairment and tax
5,355 (236) 52 82 (102) 5,253
Credit impairment (charge)/release (145) - - - - (145)
Profit/(Loss) before income tax
5,210 (236) 52 82 (102) 5,108
Income tax (expense)/benefit (1,547) 69 (16) (25) 28 (1,519)
Non-controlling interests
(21) - - - - (21)
Profit/(Loss)
3,642 (167) 36 57 (74) 3,568
September 2024 Half Year
Net interest income 8,170 - - - - 8,170
Other operating income 2,232 91 (31) - 60 2,292
Operating income 10,402 91 (31) - 60 10,462
Operating expenses (5,526) - - - - (5,526)
Profit/(Loss) before credit impairment and tax 4,876 91 (31) - 60 4,936
Credit impairment (charge)/release (336) - - - - (336)
Profit/(Loss) before income tax 4,540 91 (31) - 60 4,600
Income tax (expense)/benefit (1,391) (24) 9 - (15) (1,406)
Non-controlling interests (21) - - - - (21)
Profit/(Loss) 3,128 67 (22) - 45 3,173
March 2024 Half Year
Net interest income 7,899 - - - - 7,899
Other operating income 2,246 277 (75) - 202 2,448
Operating income 10,145 277 (75) - 202 10,347
Operating expenses (5,215) - - - - (5,215)
Profit/(Loss) before credit impairment and tax 4,930 277 (75) - 202 5,132
Credit impairment (charge)/release (70) - - - - (70)
Profit/(Loss) before income tax 4,860 277 (75) - 202 5,062
Income tax (expense)/benefit (1,439) (80) 23 - (57) (1,496)
Non-controlling interests (14) - - - - (14)
Profit/(Loss) 3,407 197 (52) - 145 3,552
PROFIT RECONCILIATION
76
This page has been left blank intentionally
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
77
CONTENTS Page
Directors’ Report 78
Condensed Consolidated Income Statement 79
Condensed Consolidated Statement of Comprehensive Income 80
Condensed Consolidated Balance Sheet 81
Condensed Consolidated Cash Flow Statement 82
Condensed Consolidated Statement of Changes in Equity 83
Notes to Condensed Consolidated Financial Statements 84
Directors’ Declaration 116
Auditor’s Review Report and Independence Declaration 117
DIRECTORS’ REPORT
78
The Directors present their report for ANZ Group Holdings Limited (the Company) for the half year ended 31 March 2025, together with the Condensed
Consolidated Financial Statements of the Group.
Directors
The names of the Directors of the Company who held office during and since the end of the half year are:
Mr PD O’Sullivan Chairman
Mr SC Elliott Director and Chief Executive Officer
Mr RBM Gibb Director
Ms SJ Halton, AO PSM Director, ceased 31 March 2025
Ms HS Kramer Director
Ms CE O’Reilly Director
Mr JP Smith Director
Mr SA St John Director
Result
The consolidated profit attributable to shareholders of the Company was $3,642 million. Further details are contained in Group Results on pages 17 to 48
which forms part of this report, and in the Condensed Consolidated Financial Statements.
Review of operations
A review of the operations of the Group during the half year and the results of those operations are contained in the Group Results on pages 17 to 48
which forms part of this report.
Lead auditor’s independence declaration
The lead auditor’s independence declaration given under section 307C of the Corporations Act 2001 (as amended) is set out on page 118 which forms
part of this report.
Rounding of amounts
The amounts contained in this Directors’ Report and the accompanying Condensed Consolidated Financial Statements have been rounded to the nearest
million dollars, except where otherwise indicated, as permitted by ASIC Corporations Instrument 2016/191.
Significant events since balance date
On 3 April 2025, the Group confirmed that ANZBGL has entered into a court enforceable undertaking with APRA for matters relating to non-financial risk
management practices and risk culture across the Group, which includes an additional operational risk capital overlay of $250 million that increases
operational risk RWA by $3.1 billion and will apply to both Level 1 and Level 2 from 30 April 2025.
Other than the matter above, there have been no significant events from 31 March 2025 to the date of signing this report.
Signed in accordance with a resolution of the Directors.
Paul D O’Sullivan Shayne C Elliott
Chairman Managing Director
7 May 2025
CONDENSED CONSOLIDATED INCOME STATEMENT
ANZ Group Holdings Limited
79
ANZGHL
Half Year
Movement
Note
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Interest income
1
32,734 30,828 29,811
6% 10%
Interest expense
(23,865) (22,658) (21,912)
5% 9%
Net interest income
2 8,869 8,170 7,899
9% 12%
Other operating income
2
2 2,310 2,232 2,246
3% 3%
Operating income
11,179 10,402 10,145
7% 10%
Operating expenses 3 (5,824) (5,526) (5,215)
5% 12%
Profit before credit impairment and income tax
5,355 4,876 4,930
10% 9%
Credit impairment (charge)/release 9 (145) (336) (70)
-57% large
Profit before income tax
5,210 4,540 4,860
15% 7%
Income tax expense 4 (1,547) (1,391) (1,439)
11% 8%
Profit for the period
3,663 3,149 3,421
16% 7%
Comprising:
Profit attributable to shareholders of the Company 3,642 3,128 3,407
16% 7%
Profit attributable to non-controlling interests 14
21 21 14
0% 50%
Earnings per ordinary share (cents)
Basic
6 122.5 104.4 113.5
17% 8%
Diluted
6 119.3 103.1 111.5
16% 7%
Dividend per ordinary share (cents) 5
83 83 83
0% 0%
1.
Includes interest income calculated using effective interest method on financial assets measured at amortised cost or fair value through other comprehensive income of $30,274 million for
the March 2025 half (Sep 24 half: $28,312 million, Mar 24 half: $27,366 million).
2.
Other operating income includes Net income from insurance business of $46 million for the March 2025 half (Sep 24 half: $74 million; Mar 24 half: $48 million) and Share of associates’
profit/(loss) of $38 million for the March 2025 half (Sep 24 half: $21 million; Mar 24 half: $84 million).
The notes appearing on pages 84 to 115 form an integral part of the Condensed Consolidated Financial Statements.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
ANZ Group Holdings Limited
80
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Profit for the period 3,663 3,149 3,421 16% 7%
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Investment securities - equity securities at FVOCI 98 (22) (3) large large
Other reserve movements
1
39 42 (59) -7% large
Items that may be reclassified subsequently to profit or loss
Foreign currency translation reserve 608 (552) (378) large large
Cash flow hedge reserve
289 994 1,075 -71% -73%
Other reserve movements
(116) (646) (128) -82% -9%
Income tax attributable to the above items (84) (120) (268) -30% -69%
Share of associates' other comprehensive income
2
(5) (6) (17) -17% -71%
Total comprehensive income for the period
4,492 2,839 3,643 58% 23%
Comprising total comprehensive income attributable to:
Shareholders of the Company 4,479 2,817 3,640 59% 23%
Non-controlling interests
1
13 22 3 -41% large
1.
Includes foreign currency translation differences attributable to non-controlling interests of -$8 million for the March 2025 half (Sep 24 half: $1 million; Mar 24 half: -$11 million).
2.
Share of associates’ other comprehensive income, that may be reclassified subsequently to profit or loss, includes:
Mar 25 half Sep 24 half Mar 24 half
$M $M $M
FVOCI reserve gain/(loss) 1 (6) (4)
Defined benefits gain/(loss) (6) - (13)
Total (5) (6) (17)
The notes appearing on pages 84 to 115 form an integral part of the Condensed Consolidated Financial Statements.
CONDENSED CONSOLIDATED BALANCE SHEET
ANZ Group Holdings Limited
81
ANZGHL
As at Movement
Assets Note
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Cash and cash equivalents
1
195,791 150,967 137,699 30% 42%
Settlement balances owed to ANZ
6,225 5,484 3,809 14% 63%
Collateral paid
10,464 10,090 8,241 4% 27%
Trading assets
45,745 45,755 42,442 0% 8%
Derivative financial instruments
49,552 54,370 47,481 -9% 4%
Investment securities
155,377 140,549 118,055 11% 32%
Net loans and advances 8
820,202 803,382 715,171 2% 15%
Regulatory deposits
644 665 696 -3% -7%
Investments in associates
1,496 1,444 1,419 4% 5%
Current tax assets
256 46 294 large -13%
Deferred tax assets
3,128 3,254 3,149 -4% -1%
Goodwill and other intangible assets
5,865 5,511 3,998 6% 47%
Premises and equipment
2,172 2,222 2,005 -2% 8%
Other assets
5,692 5,376 5,240 6% 9%
Total assets
1,302,609 1,229,115 1,089,699 6% 20%
Liabilities
Settlement balances owed by ANZ 16,085 16,188 15,026 -1% 7%
Collateral received
10,129 6,583 7,409 54% 37%
Deposits and other borrowings 10
972,219 903,554 806,737 8% 21%
Derivative financial instruments
44,279 55,254 42,728 -20% 4%
Current tax liabilities
394 360 201 9% 96%
Deferred tax liabilities
205 78 78 large large
Payables and other liabilities
15,047 17,851 17,094 -16% -12%
Employee entitlements
656 646 580 2% 13%
Other provisions
1,709 1,585 1,663 8% 3%
Debt issuances 11
169,555 156,388 127,109 8% 33%
Total liabilities
1,230,278 1,158,487 1,018,625 6% 21%
Net assets 72,331 70,628 71,074 2% 2%
Shareholders' equity
Ordinary share capital 14 27,860 28,182 29,033 -1% -4%
Reserves 14
(990) (1,774) (1,466) -44% -32%
Retained earnings 14
44,697 43,449 42,739 3% 5%
Share capital and reserves attributable to shareholders of the Company
71,567 69,857 70,306 2% 2%
Non-controlling interests 14 764 771 768 -1% -1%
Total shareholders' equity
72,331 70,628 71,074 2% 2%
1.
Includes Settlement balances owed to ANZ that meet the definition of Cash and cash equivalents.
The notes appearing on pages 84 to 115 form an integral part of the Condensed Consolidated Financial Statements.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
ANZ Group Holdings Limited
82
Half Year
Mar 25
$M
Sep 24
$M
Mar 24
$M
Profit after income tax 3,663 3,149 3,421
Adjustments to reconcile to net cash provided by/(used in) operating activities:
Allowance for expected credit losses 145 336 70
Depreciation and amortisation
537 481 445
Net derivatives/foreign exchange adjustment
3,541 2,386 858
(Gain)/loss on sale from divestments
- - 21
Other non-cash movements
10 31 (10)
Net (increase)/decrease in operating assets:
Collateral paid 372 (2,230) 262
Trading assets
(15) (3,184) (20)
Net loans and advances
(11,808) (22,881) (10,665)
Other assets
(404) 293 (587)
Net increase/(decrease) in operating liabilities:
Deposits and other borrowings 51,951 46,437 (4,492)
Settlement balances owed by ANZ
(240) 1,273 (4,178)
Collateral received
2,913 (471) (2,897)
Other liabilities
(2,973) (71) 2,175
Total adjustments
44,029 22,400 (19,018)
Net cash provided by/(used in) operating activities
1
47,692 25,549 (15,597)
Cash flows from investing activities
Acquisition of Suncorp Bank, net of cash acquired - (4,914) -
Investment securities assets:
Purchases (41,653) (40,877) (43,900)
Proceeds from sale or maturity
31,629 24,546 22,996
Proceeds from divestments, net of cash disposed
- - 668
Net investments in other assets
(242) (189) (451)
Net cash provided by/(used in) investing activities
(10,266) (21,434) (20,687)
Cash flows from financing activities
Deposits and other borrowings (repaid) / drawn down (510) (987) (27)
Debt issuances:
2
Issue proceeds 25,961 24,364 26,240
Redemptions
(19,798) (8,728) (16,639)
Dividends paid
3
(2,446) (2,468) (2,784)
On-market purchase of treasury shares
(118) - (126)
Repayment of lease liabilities
(160) (167) (142)
Share buy-back
(285) (883) -
ANZ Bank New Zealand Perpetual Preference Shares
- - 252
Net cash provided by/(used in) financing activities
2,644 11,131 6,774
Net increase/(decrease) in cash and cash equivalents 40,070 15,246 (29,510)
Cash and cash equivalents at beginning of period 150,967 137,699 168,154
Effects of exchange rate changes on cash and cash equivalents
4,754 (1,978) (945)
Cash and cash equivalents at end of period
195,791 150,967 137,699
1.
Net cash provided by/(used in) operating activities includes interest received of $32,557 million (Sep 24 half: $30,282 million; Mar 24 half: $29,336 million), interest paid of $24,074 million
(Sep 24 half: $22,204 million; Mar 24 half: $21,272 million) and income taxes paid of $1,785 million (Sep 24 half: $1,146 million; Mar 24 half: $1,779 million) for the March 2025 half.
2.
Non-cash movements on debt issuances include a loss of $7,014 million for the March 2025 half (Sep 24 half: $2,205 million gain; Mar 24 half: $1,494 million loss) from unrealised
movements primarily due to fair value hedge adjustments and foreign exchange differences.
3.
Cash outflow for shares purchased to satisfy the dividend reinvestment plan are classified in Dividends paid.
The notes appearing on pages 84 to 115 form an integral part of the Condensed Consolidated Financial Statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
ANZ Group Holdings Limited
83
Ordinary
share
capital Reserves
Retained
earnin
gs
Share capital
and reserves
attributable to
shareholders of
the Compan
y
Non-
controlling
interests
Total
shareholders'
equity
$M $M $M $M $M $M
As at 1 October 2023 29,082 (1,735) 42,148 69,495 522 70,017
Profit or Loss for the year - - 3,407 3,407 14 3,421
Other comprehensive income for the period - 281 (48) 233 (11) 222
Total comprehensive income for the period - 281 3,359 3,640 3 3,643
Transactions with equity holders in their capacity as equity holders:
Dividends paid - - (2,771) (2,771) (13) (2,784)
Other equity movements:
Employee share and option plans (49) - - (49) - (49)
ANZ Bank New Zealand Perpetual Preference Shares
1
- - (4) (4) 256 252
Other items - (12) 7 (5) - (5)
As at 31 March 2024 29,033 (1,466) 42,739 70,306 768 71,074
Profit or Loss for the year - - 3,128 3,128 21 3,149
Other comprehensive income for the period - (339) 28 (311) 1 (310)
Total comprehensive income for the period - (339) 3,156 2,817 22 2,839
Transactions with equity holders in their capacity as equity holders:
Dividends paid - - (2,449) (2,449) (19) (2,468)
Share buy-back
2
(883) - - (883) - (883)
Other equity movements:
Employee share and option plans 32 25 4 61 - 61
Other items - 6 (1) 5 - 5
As at 30 September 2024 28,182 (1,774) 43,449 69,857 771 70,628
Profit or Loss for the year - - 3,642 3,642 21 3,663
Other comprehensive income for the period - 811 26 837 (8) 829
Total comprehensive income for the period - 811 3,668 4,479 13 4,492
Transactions with equity holders in their capacity as equity holders:
Dividends paid - - (2,426) (2,426) (20) (2,446)
Share buy-back
2
(285) - - (285) - (285)
Other equity movements:
Employee share and option plans (37) (27) 3 (61) - (61)
Other items - - 3 3 - 3
As at 31 March 2025 27,860 (990) 44,697 71,567 764 72,331
1.
Perpetual preference shares issued by ANZ Bank New Zealand Limited, a member of the Group, are considered non-controlling interests to the Group. Refer to Note 14 Shareholders’
equity for further information.
2.
The Company commenced a $2.0 billion on-market share buy-back on 3 July 2024. This resulted in 9.5 million shares ($285 million) being cancelled during the March 2025 half and
30 million shares ($883 million) being cancelled during the September 2024 half.
The notes appearing on pages 84 to 115 form an integral part of the Condensed Consolidated Financial Statements.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
84
1. Basis of preparation
These Condensed Consolidated Financial Statements:
• have been prepared in accordance with the recognition and measurement requirements of Australian Accounting Standards (AASs);
• should be read in conjunction with ANZGHL’s Annual Financial Report for the year ended 30 September 2024 and any public announcements made
by ANZGHL and its controlled entities (the Group) for the half year ended 31 March 2025 in accordance with the continuous disclosure obligations
under the Corporations Act 2001 and the ASX Listing Rules;
• do not include all notes of the type normally included in an annual report;
• are presented in Australian dollars unless otherwise stated; and
• were approved by the Board of Directors on 7 May 2025.
i) Statement of Compliance
These Condensed Consolidated Financial Statements have been prepared in accordance with the Corporations Act 2001 and AASB 134 Interim
Financial Reporting which ensured compliance with IAS 34 Interim Financial Reporting.
ii) Rounding of amounts
The amounts contained in these Condensed Consolidated Financial Statements have been rounded to the nearest million dollars, except where
otherwise indicated, as permitted by Australian Securities and Investments Commission Corporations Instrument 2016/191.
iii) Basis of measurement and presentation
The financial information has been prepared in accordance with the historical cost basis except the following assets and liabilities that are stated at their
fair values:
• derivative financial instruments and in the case of fair value hedging, a fair value adjustment made to the underlying hedged item;
• financial instruments held for trading;
• financial instruments designated at fair value through profit and loss (FVTPL);
• financial assets at fair value through other comprehensive income (FVOCI).
In accordance with AASB 119 Employee Benefits, defined benefit obligations are measured using the Projected Unit Credit method.
iv) Accounting policies
These Condensed Consolidated Financial Statements have been prepared on the basis of accounting policies and using methods of computation
consistent with those applied in the 2024 ANZGHL Annual Report.
v) Use of estimates, assumptions and judgements
The preparation of these Condensed Consolidated Financial Statements requires the use of management judgement, estimates and assumptions
impacting the application of accounting policies and financial outcomes. Discussion of the critical accounting estimates and judgements, which include
complex or subjective decisions or assessments are provided in the 2024 ANZGHL Annual Report and updated as necessary within these Condensed
Consolidated Financial Statements. Such estimates and judgements are reviewed on an ongoing basis.
The global economy continues to face challenges associated with inflation and interest rate uncertainties, continuing trade and geopolitical tensions, and
impacts from climate change, which contribute to an elevated level of estimation uncertainty involved in the preparation of these financial statements.
The Group made various accounting estimates in these Condensed Consolidated Financial Statements based on forecasts of economic conditions which
reflect expectations and assumptions at 31 March 2025 about future events considered reasonable in the circumstances. Thus there is a considerable
degree of judgement involved in preparing these estimates. Actual economic conditions are likely to be different from those forecast since anticipated
events frequently do not occur as expected, and the effect of these differences may significantly impact accounting estimates included in these financial
statements. The significant accounting estimates predominantly impacted by these forecasts and associated uncertainties are expected credit losses and
provisions.
In light of the uncertainties above the assumptions and judgements made in relation to significant accounting estimates are discussed further below.
Readers should consider these disclosures in light of the uncertainties described above.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
85
1. Basis of preparation, cont’d
Allowance for expected credit losses
The Group measures the allowance for expected credit losses (ECL) using an expected credit loss impairment model as required by AASB 9 Financial
Instruments.
The Group’s allowance for ECL is included in the table below (refer to Note 9 for further information).
As at
Mar 25
$M
Sep 24
$M
Mar 24
$M
Collectively assessed 4,280 4,247 4,046
Individually assessed
364 308 325
Total
1
4,644 4,555 4,371
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.
Individually assessed allowance for ECL
During the March 2025 half, the individually assessed allowance for ECL increased $56 million.
In estimating individually assessed ECL, the Group makes judgements and assumptions in relation to expected repayments, the realisable value of
collateral, business prospects for the customer, competing claims and the likely cost and duration of the work-out process.
Collectively assessed allowance for ECL
During the March 2025 half, the collectively assessed allowance for ECL increased $33 million, attributable to $50 million from deterioration in credit risk
profile, $47 million from foreign currency translation and other impacts, $17 million from portfolio growth and $14 million net increase in management
temporary adjustments for increased uncertainty and economic volatility. This was partially offset by $72 million from a revision to modelling assumptions
for the severe scenario and $23 million from a small improvement in base case economic assumptions.
In estimating collectively assessed ECL, the Group makes judgements and assumptions in relation to:
• the selection of an estimation technique or modelling methodology; and
• the selection of inputs for those models, and the interdependencies between those inputs.
The judgements and associated assumptions have been made within the context of the uncertainty of how various factors might impact the global
economy, and reflect historical experience and other factors that are considered relevant, including expectations of future events that are believed to be
reasonable under the circumstances. The Group’s ECL estimates are inherently uncertain and, as a result, actual results may differ from these estimates.
The key judgements and assumptions in estimating collectively assessed ECL are presented below.
Base case economic forecast assumptions
Continuing uncertainties described above increase the risk of the economic forecast resulting in an understatement or overstatement of the ECL balance.
The economic drivers of the base case economic forecasts, reflective of ANZ Economics’ view of future macro-economic conditions, used at 31 March
2025 are set out below. For years beyond the near-term forecasts below, the ECL models apply simplified assumptions for the economic conditions to
calculate lifetime loss. There is a high level of estimation uncertainties when forming these forecasts.
Calendar year Forecast calendar year
2024 2025 2026
Australia
GDP (annual % change) 1.1 2.1 2.5
Unemployment rate (annual average) 4.0 4.1 4.0
Residential property prices (annual % change) 4.4 0.9 3.8
Consumer price index (annual % change) 3.2 2.4 2.6
New Zealand
GDP (annual % change) (0.5) 1.0 3.1
Unemployment rate (annual average) 4.7 5.2 4.7
Residential property prices (annual % change) (1.1) 6.0 5.0
Consumer price index (annual % change) 2.9 2.6 1.9
Rest of World
GDP (annual % change) 2.8 2.3 1.9
Consumer price index (annual % change) 3.0 2.5 2.1
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
86
1. Basis of preparation, cont’d
The base case economic forecasts for Australia embody a pickup in growth reflecting lower interest rates, a pickup in real household disposable income
and a normalising international environment. In New Zealand, economic recovery and a return to growth is forecast, and house prices are expected to
increase following a period of stabilisation.
Probability weightings
Probability weightings for each scenario are determined by management considering the risks and uncertainties surrounding the base case economic
scenario including the uncertainties described above.
The average weightings have remained unchanged from the September 2024 half with an average base weighting of 46% (Sep 24: 46%; Mar 24: 46%),
an average upside weighting of 1% (Sep 24: 1%; Mar 24: 0%), an average downside weighting of 40% (Sep 24: 40%; Mar 24: 41%), and an average severe
downside rating of 13% (Sep 24: 13%; Mar 24: 13%).
The assigned probability weightings in Australia, New Zealand and Rest of World are subject to a high degree of inherent uncertainty and therefore the
actual outcomes may be significantly different to those projected. The Group considers these weightings in each geography to provide estimates of the
possible loss outcomes and taking into account short and long-term inter-relationships within the Group’s credit portfolios.
Average weighting applied across the Group are summarised in the table below:
Mar 25 Sep 24 Mar 24
Group
Base 46% 46%
46%
Upside
1% 1%
0%
Downside
40% 40%
41%
Severe downside
13% 13% 13%
ECL -
Sensitivity analysis
Given inherent economic uncertainties and the judgement applied to factors used in determining the expected default of borrowers in future periods, ECL
reported by the Group should be considered as a best estimate within a range of possible estimates.
The table below illustrates the sensitivity of the Group’s allowance for collectively assessed ECL to key factors used in determining it as at 31 March
2025:
Balance
Sheet
$M
(Profit) and Loss
Impact
$M
If 1% of stage 1 facilities were included in stage 2 4,362
82
If 1% of stage 2 facilities were included in stage 1 4,274
(6)
100% upside scenario 1,580
(2,700)
100% base scenario 1,989 (2,291)
100% downside scenario 3,696 (584)
100% severe downside scenario 9,779 5,499
Provisions
The Group holds provisions for various obligations including restructuring costs, customer remediation, non-lending losses, fraud and forgeries and
litigation related claims. These provisions involve judgements regarding the timing and outcome of future events, including estimates of expenditure
required to satisfy such obligations. The appropriateness of the underlying assumptions for provisions is reviewed on a regular basis against actual
experience and other relevant evidence, including expert legal advice, and adjustments are made to the provisions where appropriate.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
87
2. Income
ANZGHL
Half Year Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Net interest income
Interest income 32,734 30,828 29,811 6% 10%
Interest expense
(23,645) (22,461) (21,720) 5% 9%
Major bank levy
(220) (197) (192) 12% 15%
Net interest income
8,869 8,170 7,899 9% 12%
Other operating income
Lending fees
1
215 213 207 1% 4%
Non-lending fees
1,156 1,165 1,169 -1% -1%
Commissions
29 38 37 -24% -22%
Funds management income
124 116 125 7% -1%
Fee and commission income
1,524 1,532 1,538 -1% -1%
Fee and commission expense (620) (519) (566) 19% 10%
Net fee and commission income
904 1,013 972 -11% -7%
Net foreign exchange earnings and other financial instruments income
2
1,276 1,054 1,112 21% 15%
Net income from insurance business
46 74 48 -38% -4%
Share of associates' profit/(loss)
38 21 84 81% -55%
Release of foreign currency translation reserve on dissolution of entities
15 2 20 large -25%
Loss on disposal of investment in AmBank
- - (21) n/a large
Other
31 68 31 -54% 0%
Other income
1,406 1,219 1,274 15% 10%
Other operating income 2,310 2,232 2,246 3% 3%
Operating income 11,179 10,402 10,145 7% 10%
1.
Lending fees exclude fees treated as part of the effective yield calculation in interest income.
2.
Includes fair value movements (excluding realised and accrued interest) on derivatives not designated as accounting hedges entered into to manage interest rate and foreign exchange risk,
ineffective portions of cash flow hedges, and fair value movements in financial assets and liabilities measured and/or designated at fair value through profit or loss.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
88
3. Operating expenses
ANZGHL
Half Year Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
i) Personnel
Salaries and related costs
2,946 2,762 2,744 7% 7%
Superannuation costs
249 227 219 10% 14%
Equity-settled share-based payments
61 67 74 -9% -18%
Other
56 60 25 -7% large
Personnel
3,312 3,116 3,062 6% 8%
ii) Premises
Rent
48 37 37 30% 30%
Depreciation
215 207 200 4% 8%
Other
85 94 84 -10% 1%
Premises
348 338 321 3% 8%
iii) Technology
Depreciation and amortisation
235 264 241 -11% -2%
Subscription licences and outsourced services
633 606 549 4% 15%
Other
189 147 108 29% 75%
Technology
1,057 1,017 898 4% 18%
iv) Restructuring 85 94 141 -10% -40%
v) Other
Advertising and public relations
107 117 93 -9% 15%
Professional fees
397 433 337 -8% 18%
Freight, stationery, postage and communication
83 92 78 -10% 6%
Card processing fees
45 54 54 -17% -17%
Amortisation and impairment of other intangible assets
1
85 10 3 large large
Other
305 255 228 20% 34%
Other
1,022 961 793 6% 29%
Operating expenses 5,824 5,526 5,215 5% 12%
1.
Includes $82 million amortisation of acquired intangible assets recognised as part of the acquisition accounting relating to the Suncorp Bank acquisition during the March 2025 half (Sep 24
half: nil; Mar 24 half: nil).
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
89
4. Income tax expense
Reconciliation of the prima facie income tax expense on pre-tax profit with the income tax expense recognised in the profit and loss.
ANZGHL
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Profit before income tax 5,210 4,540 4,860
15% 7%
Prima facie income tax expense at 30%
1,563 1,362 1,458
15% 7%
Tax effect of permanent differences:
Share of associates' (profit)/loss
(11) (7) (25)
57% -56%
Interest on convertible instruments
58 60 64
-3% -9%
Overseas tax rate differential
(83) (70) (86)
19% -3%
Provision for foreign tax on dividend repatriation
11 15 21
-27% -48%
Other
9 20 (2) -55% large
Subtotal
1,547 1,380 1,430 12% 8%
Income tax (over)/under provided in previous years - 11 9 large large
Income tax expense
1,547 1,391 1,439 11% 8%
Australia 783 738 757 6% 3%
Overseas 764 653 682 17% 12%
Income tax expense
1,547 1,391 1,439 11% 8%
Effective tax rate 29.7% 30.6% 29.6%
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
90
5. Dividends
Dividend per ordinary share (cents)
Half Year Movement
Mar 25 Sep 24 Mar 24
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Interim
- partially franked
1,2
83 - 83
Final
- partially franked
3
- 83 -
Total
83 83 83 0% 0%
Ordinary share dividend ($M)
4
Interim dividend
- 2,496 -
Final dividend
2,472 - 2,825
Bonus option plan adjustment
(46) (47) (54) -2% -15%
Total
2,426 2,449 2,771 -1% -12%
Ordinary share dividend payout ratio
(%)
5
67.7% 79.0% 73.3%
1.
2025 proposed interim dividend will be partially franked at 70% for Australian tax purposes (30% tax rate) and carry New Zealand imputation credits of NZD 12 cents.
2.
2024 interim dividend was partially franked at 65% for Australian tax purposes (30% tax rate) and carried New Zealand imputation credits of NZD 12 cents.
3.
2024 final dividend was partially franked at 70% for Australian tax purposes (30% tax rate) and carried New Zealand imputation credits of NZD 12 cents.
4.
Dividend paid to ordinary equity holders of the Company. Excludes dividends paid by subsidiaries to the Group’s non-controlling equity holders of $20 million (Sep 24 half: $19 million;
Mar 24 half: $13 million).
5.
Dividend payout ratio is calculated using the proposed 2025 interim dividend of $2,466 million, based on the forecast number of ordinary shares on issue at the dividend record date.
Dividend payout ratios for the September 2024 and March 2024 halves were calculated using actual dividends.
Ordinary Shares
The Directors proposed an interim dividend of 83 cents be paid on each eligible fully paid ANZ ordinary share, partially franked at 70% for Australian
taxation purposes. The interim dividend will be paid on 1 July 2025 to owners of ordinary shares at the close of business on 14 May 2025 (record date),
and carry New Zealand imputation credits of NZD 12 cents per ordinary share.
ANZ has a dividend reinvestment plan and a bonus option plan that will operate in respect of the proposed 2025 interim dividend.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
91
6. Earnings per share
Half Year Movement
Mar 25 Sep 24 Mar 24
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Earnings per share
Basic earnings per share (cents)
122.5 104.4 113.5 17% 8%
Diluted earnings per share (cents)
119.3 103.1 111.5 16% 7%
Reconciliation of earnings used in earnings per share calculations
Basic:
Profit for the period ($M)
3,663 3,149 3,421 16% 7%
Less: Profit attributable to non-controlling interests ($M)
21 21 14 0% 50%
Earnings used in calculating basic earnings per share ($M)
3,642 3,128 3,407 16% 7%
Diluted:
Earnings used in calculating basic earnings per share ($M)
3,642 3,128 3,407 16% 7%
Add: Interest on convertible subordinated debt ($M)
198 203 217 -2% -9%
Earnings used in calculating diluted earnings per share ($M)
3,840 3,331 3,624 15% 6%
Reconciliation of weighted average number of ordinary shares (WANOS)
used in earnings per share calculations
1
WANOS used in calculating basic earnings per share (M)
2,971.9 2,995.5 3,001.3 -1% -1%
Add: Weighted average dilutive potential ordinary shares (M)
2
245.8 234.7 248.1 5% -1%
WANOS used in calculating diluted earnings per share (M)
3,217.7 3,230.2 3,249.4 0% -1%
1.
WANOS excludes the weighted average number of treasury shares held in ANZEST Pty Ltd of 4.5 million for the March 2025 half (Sep 24 half: 5.4 million; Mar 24 half: 5.3 million).
2.
Dilutive potential ordinary shares include convertible subordinated debt and share-based payments (options, rights, and deferred shares).
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
92
7. Segment reporting
i) Description of segments
The Group operates on a divisional structure with seven divisions: Australia Retail, Australia Commercial, Institutional, New Zealand, Suncorp Bank,
Pacific, and Group Centre. For further information on the composition of divisions refer to the Definitions on page 132.
Operating segments presented below are consistent with internal divisional reporting provided to the chief operating decision maker, being the Chief
Executive Officer.
ii) Operating segments
The Group measures the performance of operating segments on a cash profit basis. To calculate cash profit, the Group excludes items from profit after
tax attributable to shareholders. The adjustments relate to the impacts of economic hedges and revenue and expense hedges, which represent timing
differences that will reverse through earnings in the future, and the amortisation of intangible assets recognised as a result of the Suncorp Bank
acquisition.
Transactions between divisions across segments within the Group are conducted on an arm’s length basis and where relevant disclosed as part of the
income and expenses of these segments.
ANZGHL
Australia
Retail
Australia
Commercial Institutional
New
Zealand
Suncorp
Bank Pacific
Group
Centre
Group
Total
March 2025 Half Year $M $M $M $M $M $M $M $M
Net interest income
2,592 1,589 2,033 1,589 823 55 188 8,869
Net fee and commission income
215 138 333 193 21 7 (3) 904
Other income
1,2
54 15 1,053 - 9 37 54 1,222
Operating income
1,2
2,861 1,742 3,419 1,782 853 99 239 10,995
Operating expenses
3
(1,781) (755) (1,461) (685) (433) (74) (553) (5,742)
Cash profit before credit impairment
and income tax
1,080 987 1,958 1,097 420 25 (314) 5,253
Credit impairment (charge)/release (63) (50) (28) 4 (11) 3 - (145)
Cash profit before income tax
1,017 937 1,930 1,101 409 28 (314) 5,108
Income tax (expense)/benefit
1,2,3
(312) (282) (550) (309) (123) (7) 64 (1,519)
Non-controlling interests
- - - - - (1) (20) (21)
Cash profit/(loss)
705 655 1,380 792 286 20 (270) 3,568
Economic hedges
1
167
Revenue and expense hedges
2
(36)
Amortisation of acquired intangibles
3
(57)
Profit after tax attributable to shareholders
3,642
Financial Position
Total external assets 343,784 66,327 618,958 127,467 88,785 3,365 53,923 1,302,609
Total external liabilities
187,342 124,811 493,342 122,408 82,483 3,848 216,044 1,230,278
1.
The economic hedges cash profit adjustment relates to the Institutional, New Zealand, Suncorp Bank and Group Centre divisions. In the condensed consolidated income statement,
$236 million gain was recognised in Other operating income for the March 2025 half (Sep 24 half: $91 million loss; Mar 24 half: $277 million loss) and $69 million of Income tax expense was
recognised for the March 2025 half (Sep 24 half: $24 million benefit; Mar 24 half: $80 million benefit).
2.
The revenue and expense hedges cash profit adjustment relates to the Group Centre division. In the condensed consolidated income statement, $52 million loss was recognised in Other
operating income for the March 2025 half (Sep 24 half: $31 million gain; Mar 24 half: $75 million gain) and $16 million of Income benefit was recognised for the March 2025 half (Sep 24 half:
$9 million expense; Mar 24 half: $23 million expense).
3.
The amortisation of acquired intangible assets cash profit adjustment relates to the Suncorp Bank division. In the condensed consolidated income statement, $82 million was recognised in
Operating expenses for the March 2025 half (Sep 24 half: nil; Mar 24 half: nil) and $25 million of Income tax benefit was recognised for the March 2025 half (Sep 24 half: nil; Mar 24 half: nil).
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
93
7. Segment reporting, cont’d
Australia
Retail
Australia
Commercial Institutional
New
Zealand
Suncorp
Bank Pacific
Group
Centre
Group
Total
September 2024 Half Year $M $M $M $M $M $M $M $M
Net interest income 2,615 1,584 1,859 1,571 251 60 230 8,170
Net fee and commission income 284 154 372 192 6 6 (1) 1,013
Other income
1,2
79 19 1,089 (1) - 41 52 1,279
Operating income
1,2
2,978 1,757 3,320 1,762 257 107 281 10,462
Operating expenses (1,781) (744) (1,431) (699) (188) (68) (615) (5,526)
Cash profit before credit impairment
and income tax
1,197 1,013 1,889 1,063 69 39 (334) 4,936
Credit impairment (charge)/release (28) (45) 4 (24) (243) 2 (2) (336)
Cash profit before income tax 1,169 968 1,893 1,039 (174) 41 (336) 4,600
Income tax (expense)/benefit
1,2
(356) (291) (557) (294) 52 (11) 51 (1,406)
Non-controlling interests - - - - - (1) (20) (21)
Cash profit/(loss) 813 677 1,336 745 (122) 29 (305) 3,173
Economic hedges
1
(67)
Revenue and expense hedges
2
22
Amortisation of acquired intangibles -
Profit after tax attributable to shareholders 3,128
Financial Position
Total external assets 335,356 65,456 574,998 127,032 87,185 3,162 35,926 1,229,115
Total external liabilities 180,801 122,029 460,053 120,203 81,610 3,686 190,105 1,158,487
March 2024 Half Year
Net interest income 2,608 1,580 1,882 1,572 - 63 194 7,899
Net fee and commission income 247 146 368 207 - 8 (4) 972
Other income
1,2
54 23 1,319 1 - 36 43 1,476
Operating income
1,2
2,909 1,749 3,569 1,780 - 107 233 10,347
Operating expenses (1,735) (763) (1,444) (677) - (70) (526) (5,215)
Cash profit before credit impairment
and income tax
1,174 986 2,125 1,103 - 37 (293) 5,132
Credit impairment (charge)/release (43) (35) 6 (4) - 6 - (70)
Cash profit before income tax 1,131 951 2,131 1,099 - 43 (293) 5,062
Income tax (expense)/benefit
1,2
(337) (286) (609) (308) - (11) 55 (1,496)
Non-controlling interests - - - - - (1) (13) (14)
Cash profit/(loss) 794 665 1,522 791 - 31 (251) 3,552
Economic hedges
1
(197)
Revenue and expense hedges
2
52
Amortisation of acquired intangibles -
Profit after tax attributable to shareholders 3,407
Financial Position
Total external assets 325,775 64,279 513,026 124,986 - 3,195 58,438 1,089,699
Total external liabilities 176,484 122,386 407,444 122,310 - 3,791 186,210 1,018,625
1.
The economic hedges cash profit adjustment relates to the Institutional, New Zealand, Suncorp Bank and Group Centre divisions. In the condensed consolidated income statement,
$236 million gain was recognised in Other operating income for the March 2025 half (Sep 24 half: $91 million loss; Mar 24 half: $277 million loss) and $69 million of Income tax expense was
recognised for the March 2025 half (Sep 24 half: $24 million benefit; Mar 24 half: $80 million benefit).
2.
The revenue and expense hedges cash profit adjustment relates to the Group Centre division. In the condensed consolidated income statement, $52 million loss was recognised in Other
operating income for the March 2025 half (Sep 24 half: $31 million gain; Mar 24 half: $75 million gain) and $16 million of Income tax benefit was recognised for the March 2025 half (Sep 24
half: $9 million expense; Mar 24 half: $23 million expense).
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
94
8. Net loans and advances
As at Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Australia
Overdrafts 4,479 4,685 4,031 -4% 11%
Credit cards outstanding
5,211 5,565 5,607 -6% -7%
Commercial bills outstanding
4,072 4,401 4,557 -7% -11%
Term loans - housing
391,719 382,030 314,103 3% 25%
Term loans - non-housing
193,271 190,616 173,114 1% 12%
Other
916 919 927 0% -1%
Total Australia
599,668 588,216 502,339 2% 19%
New Zealand
Overdrafts 1,011 1,003 850 1% 19%
Credit cards outstanding
1,126 1,142 1,163 -1% -3%
Term loans - housing
103,090 102,099 100,407 1% 3%
Term loans - non-housing
34,852 35,613 36,487 -2% -4%
Total New Zealand
140,079 139,857 138,907 0% 1%
Rest of World
Overdrafts 585 421 530 39% 10%
Credit cards outstanding
6 6 6 0% 0%
Term loans - housing
454 425 431 7% 5%
Term loans - non-housing
79,420 74,405 73,184 7% 9%
Other
- 5 115 large large
Total Rest of World
80,465 75,262 74,266 7% 8%
Subtotal 820,212 803,335 715,512 2% 15%
Unearned income
1
(584) (515) (494)
13% 18%
Capitalised brokerage and other origination costs
1
4,335 4,237 3,642 2% 19%
Gross loans and advances
823,963 807,057 718,660 2% 15%
Allowance for ECL (refer to Note 9) (3,761) (3,675) (3,489) 2% 8%
Net loans and advances
820,202 803,382 715,171 2% 15%
1.
Amortised over the expected life of the loan.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
95
9. Allowance for expected credit losses
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 a variety of conditions.
As at
Mar 25 Sep 24 Mar 24
Collectively
assessed
$M
Individually
assessed
$M
Total
$M
Collectively
assessed
$M
Individually
assessed
$M
Total
$M
Collectively
assessed
$M
Individually
assessed
$M
Total
$M
Net loans and advances at
amortised cost
3,415 346 3,761 3,372 303 3,675 3,169 320 3,489
Off-balance sheet commitments -
undrawn and contingent facilities
834 18 852 841 5 846 844 5 849
Investment securities - debt securities
at amortised cost
31 - 31 34 - 34 33 - 33
Total
4,280 364 4,644 4,247 308 4,555 4,046 325 4,371
Other Comprehensive Income
Investment securities - debt securities
at FVOCI
1
21 - 21 20 - 20 17 - 17
1.
For FVOCI assets, the allowance for ECL does not alter the carrying amount which remains at fair value. Instead, the allowance for ECL is recognised in Other comprehensive income with a
corresponding charge to profit or loss.
The following tables present the movement in the allowance for ECL.
Net loans and advances at amortised cost
Allowance for ECL is included in Net loans and advances.
Stage 3
Stage 1
$M
Stage 2
$M
Collectively
assessed
$M
Individually
assessed
$M
Total
$M
As at 1 October 2023 1,227 1,624 329 366 3,546
Transfer between stages 129 (144) (49) 64 -
New and increased provisions (net of releases) (119) 64 120 137 202
Write-backs - - - (80) (80)
Bad debts written-off (excluding recoveries) - - - (146) (146)
Foreign currency translation and other movements
1
(5) (6) (1) (21) (33)
As at 31 March 2024 1,232 1,538 399 320 3,489
Transfer between stages 140 (156) (54) 70 -
New and increased provisions (net of releases)
2
(84) 273 94 191 474
Write-backs - - - (97) (97)
Bad debts written-off (excluding recoveries) - - - (170) (170)
Foreign currency translation and other movements
1
(12) (2) 4 (11) (21)
As at 30 September 2024 1,276 1,653 443 303 3,675
Transfer between stages 147 (160) (61) 74 -
New and increased provisions (net of releases) (214) 198 109 210 303
Write-backs
- - - (67) (67)
Bad debts written-off (excluding recoveries)
- - - (172) (172)
Foreign currency translation and other movements
1
17 (1) 8 (2) 22
As at 31 March 2025
1,226 1,690 499 346 3,761
1.
Other movements include the impact of discounting on expected cash flows for individually assessed allowances for ECL and the impact of divestments completed during the period.
2.
Includes Suncorp Bank acquisition related collectively assessed allowance for ECL. Under accounting standards, these were initially recognised as Stage 1, and where relevant moving to
Stage 2 after the date of acquisition, all presented within New and increased provisions (net of releases).
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
96
9. Allowance for expected credit losses, cont’d
Off-balance sheet commitments - undrawn and contingent facilities
Allowance for ECL is included in Other provisions.
Stage 3
Stage 1
$M
Stage 2
$M
Collectively
assessed
$M
Individually
assessed
$M
Total
$M
As at 1 October 2023 630 162 25 10 827
Transfer between stages 18 (16) (2) - -
New and increased provisions (net of releases) 7 22 1 - 30
Write-backs - - - (5) (5)
Foreign currency translation (2) (1) - - (3)
As at 31 March 2024 653 167 24 5 849
Transfer between stages 16 (15) (1) - -
New and increased provisions (net of releases) 3 5 2 3 13
Write-backs - - - (2) (2)
Foreign currency translation and other movements
1
(14) (1) 2 (1) (14)
As at 30 September 2024 658 156 27 5 846
Transfer between stages 19 (18) (2) 1 -
New and increased provisions (net of releases) (60) 26 6 14 (14)
Write-backs
- - - (2) (2)
Foreign currency translation
23 - (1) - 22
As at 31 March 2025
640 164 30 18 852
1.
Other movements include the impact of divestments completed during the period.
Investment securities - debt securities at amortised cost
Allowance for ECL is included in Investment securities.
Stage 3
Stage 1
$M
Stage 2
$M
Collectively
assessed
$M
Individually
assessed
$M
Total
$M
As at 31 March 2024 33 - - - 33
As at 30 September 2024 34 - - - 34
As at 31 March 2025
31 - - - 31
Investment securities - debt securities at FVOCI
For FVOCI assets, the allowance for ECL does not alter the carrying amount which remains at fair value. Instead, the allowance for ECL is recognised in
Other comprehensive income with a corresponding charge to profit or loss.
Stage 3
Stage 1
$M
Stage 2
$M
Collectively
assessed
$M
Individually
assessed
$M
Total
$M
As at 31 March 2024 17 - - - 17
As at 30 September 2024 20 - - - 20
As at 31 March 2025
21 - - - 21
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
97
9. Allowance for expected credit losses, cont’d
Credit impairment charge/(release) analysis
ANZGHL
Half Year Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
New and increased provisions (net of releases)
1,2
- Collectively assessed
3
(14) 230 32 large large
- Individually assessed
301 264 201 14% 50%
Write-backs
4
(69) (99) (85) -30% -19%
Recoveries of amounts previously written-off
(73) (59) (78) 24% -6%
Total credit impairment charge/(release)
145 336 70 -57% large
1.
Includes the impact of transfers between collectively assessed and individually assessed.
2.
New and increased provisions (net of releases) includes:
Mar 25 half Sep 24 half Mar 24 half
Collectively
assessed
Individually
assessed
Collectively
assessed
Individually
assessed
Collectively
assessed
Individually
assessed
$M $M $M $M $M $M
Net loans and advances at amortised cost 19 284 213 261 1 201
Off-balance sheet commitments (29) 15 10 3 30 -
Investment securities - debt securities at amortised cost (5) - 4 - (1) -
Investment securities - debt securities at FVOCI 1 - 3 - 2 -
Other financial assets - 2 - - - -
Total (14) 301 230 264 32 201
3.
Includes Suncorp Bank acquisition related collectively assessed credit impairment charge of $244 million for the September 2024 half.
4.
Consists of write-backs in Net loans and advances at amortised cost of $67 million for the March 2025 half (Sep 24 half: $97 million; Mar 24 half: $80 million), and Off-balance sheet
commitment of $2 million for the March 2025 half (Sep 24 half: $2 million; Mar 24 half: $5 million).
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
98
10. Deposits and other borrowings
ANZGHL
As at Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Australia
Certificates of deposit 30,215 34,011 30,572 -11% -1%
Term deposits
102,183 102,413 86,857 0% 18%
On demand and short-term deposits
320,976 308,130 283,155 4% 13%
Deposits not bearing interest
39,770 39,964 19,955 0% 99%
Deposits from banks and securities sold under repurchase agreements
55,917 44,953 38,425 24% 46%
Commercial paper and other borrowings
60,025 46,283 42,060 30% 43%
Total Australia
609,086 575,754 501,024 6% 22%
New Zealand
Certificates of deposit 1,213 1,079 1,800 12% -33%
Term deposits
54,438 54,500 52,762 0% 3%
On demand and short-term deposits
58,246 56,038 55,569 4% 5%
Deposits not bearing interest
15,405 14,586 15,825 6% -3%
Deposits from banks and securities sold under repurchase agreements
3,182 3,207 3,912 -1% -19%
Commercial paper and other borrowings
1,931 1,304 3,152 48% -39%
Total New Zealand
134,415 130,714 133,020 3% 1%
Rest of World
Certificates of deposit 8,153 7,116 6,723 15% 21%
Term deposits
141,641 116,603 100,919 21% 40%
On demand and short-term deposits
18,136 17,423 20,569 4% -12%
Deposits not bearing interest
5,770 5,554 5,479 4% 5%
Deposits from banks and securities sold under repurchase agreements
55,018 50,390 39,003 9% 41%
Total Rest of World
228,718 197,086 172,693 16% 32%
Deposits and other borrowings
1
972,219 903,554 806,737 8% 21%
1.
Customer deposits balance of $756,565 million at 31 March 2025 (Sep 24: $715,211 million; Mar 24: $641,090 million) includes Term deposits, On demand and short-term deposits and
Deposits not bearing interest.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
99
11. Debt issuances
ANZGHL
As at Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Total unsubordinated debt 126,679 116,723 90,763 9% 40%
Additional Tier 1 Capital (perpetual subordinated securities)
1
ANZ Capital Notes (ANZ CN)
2
ANZ CN5
3
- 931 930 large large
ANZ CN6
1,491 1,490 1,490 0% 0%
ANZ CN7
1,300 1,300 1,299 0% 0%
ANZ CN8
1,486 1,485 1,484 0% 0%
ANZ CN9
1,682 1,680 1,678 0% 0%
ANZ Capital Securities
4
1,544 1,391 1,434 11% 8%
Tier 2 Capital - Term Subordinated Notes
5
32,444 28,584 26,754 14% 21%
Other subordinated debt securities
2,929 2,804 1,277 4% large
Total subordinated debt
42,876 39,665 36,346 8% 18%
Total debt issuances 169,555 156,388 127,109 8% 33%
1.
ANZ Capital Notes and ANZ Capital Securities are Basel 3 compliant instruments.
2.
Each of the ANZ Capital Notes will convert into a variable number of ordinary shares of ANZGHL on a specified mandatory conversion date at a 1% discount (subject to certain conditions
being satisfied). If ANZBGL’s Common Equity Tier 1 capital ratio is equal to or less than 5.125%, or ANZBGL receives a notice of non-viability from APRA, then the notes will immediately
convert into a variable number of ordinary shares of ANZGHL at a 1% discount subject to a maximum conversion number. Subject to certain conditions, the notes are redeemable or
convertible into ordinary shares of ANZGHL (on similar terms to mandatory conversion) by ANZBGL at its discretion on an early redemption or conversion date.
Issuer Issue date Issue amount
$M
Early redemption or
conversion date
Mandatory
conversion date
CN5 ANZBGL 28 Sep 2017 931 20 Mar 2025 20 Mar 2027
CN6 ANZBGL 8 Jul 2021 1,500 20 Mar 2028 20 Sep 2030
CN7 ANZBGL 24 Mar 2022 1,310 20 Mar 2029 20 Sep 2031
CN8 ANZBGL 24 Mar 2023 1,500 20 Mar 2030 20 Sep 2032
CN9 ANZBGL 20 Mar 2024 1,700 20 Mar 2031 20 Sep 2033
3.
ANZBGL fully redeemed ANZ CN5 on 20 March 2025. As a result, the mandatory conversion date for CN5 is no longer applicable.
4.
On 15 June 2016, ANZBGL, acting through its London branch, issued USD 1 billion fully-paid perpetual subordinated contingent convertible securities (ANZ Capital Securities). If ANZBGL’s
Common Equity Tier 1 capital ratio is equal to or less than 5.125%, or ANZBGL receives a notice of non-viability from APRA, then the securities will immediately convert into a variable
number of ANZGHL ordinary shares at a 1% discount subject to a maximum conversion number. Subject to certain conditions, on the First Reset Date (15 June 2026) and on each 5-year
anniversary, ANZ has the right to redeem all of the securities at its discretion.
5.
All the term subordinated notes are convertible and are Basel 3 compliant instruments. If ANZBGL receives a notice of non-viability from APRA, then the convertible subordinated notes will
immediately convert into a variable number of ordinary shares of ANZGHL at a 1% discount subject to a maximum conversion number.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
100
12. Credit risk
Maximum exposure to credit risk
For financial assets recognised on the balance sheet, the maximum exposure to credit risk is the carrying amount. In certain circumstances there may be
differences between the carrying amounts reported on the balance sheet and the amounts reported in the tables below. Principally, these differences
arise in respect of financial assets that are subject to risks other than credit risk, such as equity instruments which are primarily subject to market risk, or
bank notes and coins.
For undrawn facilities, this maximum exposure to credit risk is the full amount of the committed facilities. For contingent exposures, the maximum
exposure to credit risk is the maximum amount the Group would have to pay if the instrument is called upon.
The table below shows the maximum exposure to credit risk of on-balance sheet, and off-balance sheet positions before taking account of any collateral
held or other credit enhancements:
Reported
Excluded
1
Maximum Exposure to Credit Risk
As at
As at
As at
On-balance sheet positions
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
$M
Sep 24
$M
Mar 24
$M
Net loans and advances 820,202 803,382 715,171
- - -
820,202 803,382 715,171
Investment securities
- debt securities at amortised cost 6,917 7,091 7,900
- - -
6,917 7,091 7,900
- debt securities at FVOCI
146,773 131,944 108,530
- - -
146,773 131,944 108,530
- equity securities at FVOCI
1,509 1,351 1,611
1,509 1,351 1,611
- - -
- debt securities at FVTPL
178 163 14
- - -
178 163 14
Other financial assets
313,101 271,837 244,684
14,614 13,081 8,643
298,487 258,756 236,041
Total on-balance sheet positions
1,288,680 1,215,768 1,077,910
16,123 14,432 10,254
1,272,557 1,201,336 1,067,656
Off-balance sheet commitments
Undrawn and contingent facilities
2
319,672 298,152 289,371
- - -
319,672 298,152 289,371
Total
1,608,352 1,513,920 1,367,281
16,123 14,432 10,254
1,592,229 1,499,488 1,357,027
1.
Excluded comprises bank notes and coins and cash at bank within Other financial assets, and Investment securities - equity securities at FVOCI as they do not have credit exposure.
2.
Undrawn and contingent facilities include guarantees, letters of credit and performance related contingencies, net of collectively assessed allowance for expected credit losses.
Credit Quality
The Group’s internal Customer Credit Rating (CCR) is used to manage the credit quality of financial assets. To enable wider comparisons, the Group’s
CCRs are mapped to external rating agency scales as follows:
Credit Quality
Description
Internal CCR ANZ Customer Requirement
Moody's
Rating
Standard &
Poor's
Rating
Strong CCR 0+ to 4-
Demonstrated superior stability in their operating and financial performance over the long-
term, and whose earnings capacity is not significantly vulnerable to foreseeable events.
Aaa - Baa3 AAA - BBB-
Satisfactory CCR 5+ to 6-
Demonstrated sound operational and financial stability over the medium to long term even
though some may be susceptible to cyclical trends or variability in earnings.
Ba1 - B1 BB+ - B+
Weak CCR 7+ to 8=
Demonstrated some operational and financial instability, with variability and uncertainty in
profitability and liquidity projected to continue over the short and possibly medium term.
B2 - Caa B - CCC
Defaulted CCR 8- to 10
When doubt arises as to the collectability of a credit facility, the financial instrument (or
‘the facility’) is classified as defaulted.
N/A N/A
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
101
12. Credit risk, cont’d
Net loans and advances
Stage 3
Stage 1
$M
Stage 2
$M
Collectively
assessed
$M
Individually
assessed
$M
Total
$M
As at March 2025
Strong
507,007 16,096 - - 523,103
Satisfactory 189,086 44,293 - - 233,379
Weak
15,709 18,219 - - 33,928
Defaulted
- - 6,802 993 7,795
Gross loans and advances at amortised cost
711,802 78,608 6,802 993 798,205
Allowance for ECL (1,226) (1,690) (499) (346) (3,761)
Net loans and advances at amortised cost
710,576 76,918 6,303 647 794,444
Coverage ratio 0.17% 2.15% 7.34% 34.84% 0.47%
Loans and advances at fair value through profit or loss 21,568
Loans and advances purchased credit impaired
1
439
Unearned income
(584)
Capitalised brokerage and other origination costs
4,335
Net carrying amount
820,202
As at September 2024
Strong 484,593 17,072 - - 501,665
Satisfactory 188,825 46,940 - - 235,765
Weak 15,538 18,222 - - 33,760
Defaulted - - 5,976 832 6,808
Gross loans and advances at amortised cost 688,956 82,234 5,976 832 777,998
Allowance for ECL (1,276) (1,653) (443) (303) (3,675)
Net loans and advances at amortised cost 687,680 80,581 5,533 529 774,323
Coverage ratio 0.19% 2.01% 7.41% 36.42% 0.47%
Loans and advances at fair value through profit or loss 24,786
Loans and advances purchased credit impaired
1
551
Unearned income (515)
Capitalised brokerage and other origination costs 4,237
Net carrying amount 803,382
As at March 2024
Strong 404,954 16,931 - - 421,885
Satisfactory 199,316 39,766 - - 239,082
Weak 12,541 12,086 - - 24,627
Defaulted - - 5,011 880 5,891
Gross loans and advances at amortised cost 616,811 68,783 5,011 880 691,485
Allowance for ECL (1,232) (1,538) (399) (320) (3,489)
Net loans and advances at amortised cost 615,579 67,245 4,612 560 687,996
Coverage ratio 0.20% 2.24% 7.96% 36.36% 0.50%
Loans and advances at fair value through profit or loss 24,027
Unearned income (494)
Capitalised brokerage and other origination costs 3,642
Net carrying amount 715,171
1.
Represents Stage 3 exposures from Suncorp Bank at the date of acquisition recognised net of allowance for ECL.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
102
12. Credit risk, cont’d
Of
f-balance sheet commitments - undrawn and contingent facilities
Stage 3
Stage 1
$M
Stage 2
$M
Collectively
assessed
$M
Individually
assessed
$M
Total
$M
As at March 2025
Strong
217,514 1,189 - - 218,703
Satisfactory 28,039 3,048 - - 31,087
Weak
719 1,316 - - 2,035
Defaulted
- - 149 80 229
Gross undrawn and contingent facilities subject to ECL
246,272 5,553 149 80 252,054
Allowance for ECL included in Other provisions (640) (164) (30) (18) (852)
Net undrawn and contingent facilities subject to ECL
245,632 5,389 119 62 251,202
Coverage ratio 0.26% 2.95% 20.13% 22.50% 0.34%
Undrawn and contingent facilities not subject to ECL
1
68,470
Net undrawn and contingent facilities 319,672
As at September 2024
Strong 200,720 1,497 - - 202,217
Satisfactory 26,496 3,249 - - 29,745
Weak 880 931 - - 1,811
Defaulted - - 101 26 127
Gross undrawn and contingent facilities subject to ECL 228,096 5,677 101 26 233,900
Allowance for ECL included in Other provisions (658) (156) (27) (5) (846)
Net undrawn and contingent facilities subject to ECL 227,438 5,521 74 21 233,054
Coverage ratio 0.29% 2.75% 26.73% 19.23% 0.36%
Undrawn and contingent facilities not subject to ECL
1
65,098
Net undrawn and contingent facilities 298,152
As at March 2024
Strong 193,490 1,204 - - 194,694
Satisfactory 23,826 3,648 - - 27,474
Weak 984 719 - - 1,703
Defaulted - - 73 49 122
Gross undrawn and contingent facilities subject to ECL 218,300 5,571 73 49 223,993
Allowance for ECL included in Other provisions (653) (167) (24) (5) (849)
Net undrawn and contingent facilities subject to ECL 217,647 5,404 49 44 223,144
Coverage ratio 0.30% 3.00% 32.88% 10.20% 0.38%
Undrawn and contingent facilities not subject to ECL
1
66,227
Net undrawn and contingent facilities 289,371
1.
Commitments that can be unconditionally cancelled at any time without notice.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
103
12. Credit risk, cont’d
Investment securities - debt securities at amortised cost
Stage 3
Stage 1
$M
Stage 2
$M
Collectively
assessed
$M
Individually
assessed
$M
Total
$M
As at March 2025
Strong
5,159 - - - 5,159
Satisfactory 147 - - - 147
Weak
1,642 - - - 1,642
Gross investment securities - debt securities at amortised cost
6,948 - - - 6,948
Allowance for ECL (31) - - - (31)
Net investment securities - debt securities at amortised cost
6,917 - - - 6,917
Coverage ratio 0.45% - - - 0.45%
As at September 2024
Strong 5,535 - - - 5,535
Satisfactory 72 - - - 72
Weak 1,518 - - - 1,518
Gross investment securities - debt securities at amortised cost 7,125 - - - 7,125
Allowance for ECL (34) - - - (34)
Net investment securities - debt securities at amortised cost 7,091 - - - 7,091
Coverage ratio 0.48% - - - 0.48%
As at March 2024
Strong 6,018 - - - 6,018
Satisfactory 137 - - - 137
Weak 1,778 - - - 1,778
Gross investment securities - debt securities at amortised cost 7,933 - - - 7,933
Allowance for ECL (33) - - - (33)
Net investment securities - debt securities at amortised cost 7,900 - - - 7,900
Coverage ratio 0.42% - - - 0.42%
Investment securities - debt securities at FVOCI
Stage 3
Stage 1
$M
Stage 2
$M
Collectively
assessed
$M
Individually
assessed
$M
Total
$M
As at March 2025
Strong
146,773 - - - 146,773
Investment securities - debt securities at FVOCI 146,773 - - - 146,773
Allowance for ECL recognised in Other comprehensive income (21) - - - (21)
Coverage ratio
0.01% - - - 0.01%
As at September 2024
Strong 131,944 - - - 131,944
Investment securities - debt securities at FVOCI 131,944 - - - 131,944
Allowance for ECL recognised in Other comprehensive income (20) - - - (20)
Coverage ratio 0.02% - - - 0.02%
As at March 2024
Strong 108,530 - - - 108,530
Investment securities - debt securities at FVOCI 108,530 - - - 108,530
Allowance for ECL recognised in Other comprehensive income (17) - - - (17)
Coverage ratio 0.02% - - - 0.02%
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
104
12. Credit risk, cont’d
Other financial assets
As at
Mar 25
$M
Sep 24
$M
Mar 24
$M
Strong 280,584 250,416 230,668
Satisfactory
1
17,427 7,969 4,547
Weak
654 534 840
Other financial assets
1
298,665 258,919 236,055
1.
Includes Investment securities - debt securities at FVTPL of $178 million (Sep 24: $163 million; Mar 24: $14 million).
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
105
13. Fair value of financial assets and financial liabilities
Classification of Financial Assets and Financial Liabilities
The Group recognises and measures financial instruments at either fair value or amortised cost, with a significant number of financial instruments on the
balance sheet at fair value.
Fair value is the best estimate of the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market
participants at the measurement date.
The following tables set out the classification of financial assets and liabilities according to their measurement bases with their carrying amounts as
recognised on the balance sheet.
As at March 2025
At amortised cost
$M
At fair value
$M
Total
$M
Financial assets
Cash and cash equivalents 140,507 55,284 195,791
Settlement balances owed to ANZ
6,225 - 6,225
Collateral paid
10,464 - 10,464
Trading assets
- 45,745 45,745
Derivative financial instruments
- 49,552 49,552
Investment securities
6,917 148,460 155,377
Net loans and advances
798,634 21,568 820,202
Regulatory deposits
644 - 644
Other financial assets
4,680 - 4,680
Total
968,071 320,609 1,288,680
Financial liabilities
Settlement balances owed by ANZ 16,085 - 16,085
Collateral received
10,129 - 10,129
Deposits and other borrowings
916,766 55,453 972,219
Derivative financial instruments
- 44,279 44,279
Payables and other liabilities
10,963 4,084 15,047
Debt issuances
167,313 2,242 169,555
Total
1,121,256 106,058 1,227,314
As at September 2024
Financial assets
Cash and cash equivalents 113,712 37,255 150,967
Settlement balances owed to ANZ 5,484 - 5,484
Collateral paid 10,090 - 10,090
Trading assets - 45,755 45,755
Derivative financial instruments - 54,370 54,370
Investment securities 7,091 133,458 140,549
Net loans and advances 778,596 24,786 803,382
Regulatory deposits 665 - 665
Other financial assets 4,506 - 4,506
Total 920,144 295,624 1,215,768
Financial liabilities
Settlement balances owed by ANZ 16,188 - 16,188
Collateral received 6,583 - 6,583
Deposits and other borrowings 860,553 43,001 903,554
Derivative financial instruments - 55,254 55,254
Payables and other liabilities 11,828 6,023 17,851
Debt issuances 154,572 1,816 156,388
Total 1,049,724 106,094 1,155,818
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
106
13. Fair value of financial assets and financial liabilities, cont’d
As at March 2024
At amortised cost
$M
At fair value
$M
Total
$M
Financial assets
Cash and cash equivalents 114,635 23,064 137,699
Settlement balances owed to ANZ 3,809 - 3,809
Collateral paid 8,241 - 8,241
Trading assets - 42,442 42,442
Derivative financial instruments - 47,481 47,481
Investment securities 7,900 110,155 118,055
Net loans and advances 691,144 24,027 715,171
Regulatory deposits 696 - 696
Other financial assets 4,316 - 4,316
Total 830,741 247,169 1,077,910
Financial liabilities
Settlement balances owed by ANZ 15,026 - 15,026
Collateral received 7,409 - 7,409
Deposits and other borrowings 776,650 30,087 806,737
Derivative financial instruments - 42,728 42,728
Payables and other liabilities 10,151 6,943 17,094
Debt issuances 125,362 1,747 127,109
Total 934,598 81,505 1,016,103
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
107
13. Fair value of financial assets and financial liabilities, cont’d
Financial Assets and Financial Liabilities Measured at Fair Value
The fair values of financial assets and financial liabilities are generally determined at the individual instrument level. If the Group holds offsetting risk
positions, then the portfolio exception in AASB 13 Fair Value Measurement (AASB 13) is used to measure the fair value of such groups of financial
assets and financial liabilities. The Group measures the portfolio based on the price that would be received to sell a net long position (an asset) for a
particular risk exposure, or to transfer a net short position (a liability) for a particular risk exposure.
a) Fair value designation
The Group designates certain loans and advances, deposits and other borrowings and debt issuances as fair value through profit or loss:
• where they contain separable embedded derivatives and are managed on a fair value basis, the total fair value movements are recognised in profit or
loss in the same period as the movement on any associated hedging instruments; or
• in order to eliminate an accounting mismatch which would arise if the assets or liabilities were otherwise carried at amortised cost. This mismatch
arises due to measuring the derivative financial instruments (used to mitigate interest rate risk of these assets or liabilities) at fair value through profit
or loss.
The Group’s approach ensures that it recognises the fair value movements on the assets or liabilities in profit or loss in the same period as the movement
on the associated derivatives.
The Group may also designate certain loans and advances, deposits and other borrowings and debt issuances as fair value through profit or loss where
they are managed on a fair value basis to align the measurement with how the financial instruments are managed.
b) Fair value approach and valuation techniques
The Group uses valuation techniques to estimate the fair value of assets and liabilities for recognition, measurement and disclosure purposes where no
quoted price in an active market for that asset or liability exists. This includes the following:
Asset or Liability Fair Value Approach
Financial instruments classified as:
• Derivative financial assets and financial liabilities
(including trading and non-trading)
• Repurchase agreements < 90 days
• Net loans and advances
• Deposits and other borrowings
• Debt issuances
Discounted cash flow techniques are used whereby contractual future cash flows of the
instrument are discounted using wholesale market interest rates, or market borrowing
rates for debt or loans with similar maturities or yield curves appropriate for the remaining
term to maturity.
Other financial instruments held for trading:
• Securities sold short
• Debt and equity securities
Valuation techniques are used that incorporate observable market inputs for financial
instruments with similar credit risk, maturity and yield characteristics.
Equity securities where an active market does not exist are measured using comparable
company valuation multiples (such as price-to-book ratios).
Financial instruments classified as:
• Investment securities – debt or equity
Valuation techniques use comparable multiples (such as price-to-book ratios) or
discounted cashflow (DCF) techniques incorporating, to the extent possible, observable
inputs from instruments with similar characteristics.
There were no significant changes to valuation approaches during the current or prior periods.
c) Fair value hierarchy
The Group categorises assets and liabilities carried at fair value into a fair value hierarchy in accordance with AASB 13 based on the observability of
inputs used to measure the fair value:
• Level 1 - valuations based on quoted prices (unadjusted) in active markets for identical assets or liabilities;
• Level 2 - valuations using inputs other than quoted prices included within Level 1 that are observable for a similar asset or liability, either directly or
indirectly; and
• Level 3 - valuations where significant unobservable inputs are used to measure the fair value of the asset or liability.
There were no significant changes to levelling approaches during the current or prior periods.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
108
13. Fair value of financial assets and financial liabilities, cont’d
The following table presents financial assets and financial liabilities carried at fair value in accordance with the fair value hierarchy:
Fair value measurements
As at March 2025
Level 1
$M
Level 2
$M
Level 3
$M
Total
$M
Assets
Cash and cash equivalents (measured at fair value) - 55,284 - 55,284
Trading assets
1
24,200 21,530 15 45,745
Derivative financial instruments
1
107 49,423 22 49,552
Investment securities
1
114,369 32,590 1,501 148,460
Net loans and advances (measured at fair value)
- 21,335 233 21,568
Total
138,676 180,162 1,771 320,609
Liabilities
Deposits and other borrowings (designated at fair value) - 55,453 - 55,453
Derivative financial instruments
1
421 43,848 10 44,279
Payables and other liabilities
3,737 347 - 4,084
Debt issuances (designated at fair value)
- 2,242 - 2,242
Total
4,158 101,890 10 106,058
As at September 2024
Assets
Cash and cash equivalents (measured at fair value) - 37,255 - 37,255
Trading assets
1
31,507 14,233 15 45,755
Derivative financial instruments
1
131 54,214 25 54,370
Investment securities
1
111,060 21,055 1,343 133,458
Net loans and advances (measured at fair value) - 24,429 357 24,786
Total 142,698 151,186 1,740 295,624
Liabilities
Deposits and other borrowings (designated at fair value) - 43,001 - 43,001
Derivative financial instruments
1
393 54,846 15 55,254
Payables and other liabilities 5,804 219 - 6,023
Debt issuances (designated at fair value) - 1,816 - 1,816
Total 6,197 99,882 15 106,094
As at March 2024
Assets
Cash and cash equivalents (measured at fair value) - 23,064 - 23,064
Trading assets
1
29,315 13,126 1 42,442
Derivative financial instruments
1
228 47,226 27 47,481
Investment securities
1
87,121 21,651 1,383 110,155
Net loans and advances (measured at fair value) - 23,428 599 24,027
Total 116,664 128,495 2,010 247,169
Liabilities
Deposits and other borrowings (designated at fair value) - 30,087 - 30,087
Derivative financial instruments
1
192 42,521 15 42,728
Payables and other liabilities 6,659 284 - 6,943
Debt issuances (designated at fair value) - 1,747 - 1,747
Total 6,851 74,639 15 81,505
1.
During the March 2025 half, $8,290 million of assets were transferred from Level 1 to Level 2, (Sep 24: $1,119 million; Mar 24: $2,435 million), and $805 million of assets were transferred
from Level 2 to Level 1 (Sep 24: $4,913 million; Mar 24: $4,082 million) due to a change in the observability of market price and/or valuation inputs. There were no other material transfers
between Level 1, Level 2 and Level 3 during the period. Transfers into and out of levels are measured at the beginning of the reporting period in which the transfer occurred, and as such
the September 2024 half does not include assets and liabilities acquired as part of the Suncorp Bank acquisition during the period.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
109
13. Fair value of financial assets and financial liabilities, cont’d
Fair Value Measurements Incorporating Unobservable Market Data
a) Level 3 fair value measurements
Level 3 financial instruments are a net asset of $1,761 million (Sep 24: $1,725 million; Mar 24: $1,995 million). The assets and liabilities which incorporate
significant unobservable inputs are:
• equity and debt securities for which there is no active market or traded prices cannot be observed;
• loans and advances measured at fair value for which there is no observable market data; and
• derivatives referencing market rates that cannot be observed primarily due to lack of market activity.
Level 3 Transfers
There were no material transfers into or out of Level 3 during the period.
The material Level 3 financial instruments as at 31 March 2025 are summarised below:
i) Investment Securities - equity holdings classified as FVOCI
Bank of Tianjin (BoT)
The Group holds an investment in the Bank of Tianjin. The investment is valued based on comparative price-to-book (P/B) multiples (a P/B multiple is the
ratio of the market value of equity to the book value of equity). The extent of judgement applied in determining the appropriate multiple and comparator
group from which the multiple is derived resulted in the Level 3 classification. As at 31 March 2025, the BoT equity holding balance was $1,097 million
(Sep 24: $958 million, Mar 24: $848 million). The increase in BoT fair valuation was driven by an increase in the book value and P/B multiple used in the
valuation, and the impact of foreign currency translation.
Other equity investments
The Group holds $400 million (Sep 24: $384 million; Mar 24: $521 million) of unlisted equities classified as FVOCI, for which there are no active markets
or traded prices available, resulting in a Level 3 classification. The movement in unlisted equity holdings was mainly due to revaluation and foreign
currency translation impacts.
Net loans and advances - classified as FVTPL
Syndicated loans
The Group holds $233 million (Sep 24: $357 million; Mar 24: $599 million) of syndicated loans for sale which are measured at FVTPL for which there is
no observable market data available. The decrease in the Level 3 loan balances for the March 2025 half was mainly due to repayments.
b) Sensitivity to Level 3 data inputs
When we make assumptions due to significant inputs to a valuation not being directly observable (Level 3 inputs), then changing these assumptions
changes the Group’s estimate of the instrument’s fair value. Favourable and unfavourable changes are determined by changing the primary
unobservable parameters used to derive fair valuation.
Investment securities - equity holdings
The valuations of the equity investments are sensitive to variations in selected unobservable inputs, with valuation techniques used including P/B
multiples and discounted cashflow techniques. If for example, a 10% increase or decrease to the primary input into the valuations were to occur (such as
the P/B multiple), it would result in a $150 million increase or decrease in the fair value of the portfolio, which would be recognised in shareholders’ equity
in the Group, with no impact to net profit or loss.
Net loans and advances
Syndicated loan valuations are sensitive to credit spreads in determining their fair valuation. For the syndicated loans which are primarily investment-
grade loans, an increase or decrease in credit spreads would have an immaterial impact on net profit or net assets of the Group. For the remaining
syndicated loans, the Group may, where deemed necessary, utilise Credit Risk Insurance to mitigate the credit risks associated with those loans. The
effect of this would also result in an immaterial impact to the net profit or net assets of the Group.
Other
The remaining Level 3 balance is immaterial and changes in inputs have a minimal impact on net profit and net assets of the Group.
c) Deferred fair value gains and losses
Where fair value is determined using unobservable inputs significant to the fair value of a financial instrument, the Group does not immediately recognise
the difference between the transaction price and the amount determined based on the valuation technique (day one gains or losses) in profit or loss. After
initial recognition, the Group recognises the deferred amount in profit or loss on a straight-line basis over the life of the transaction or until all inputs
become observable. Day one gains and losses which have been deferred are not material.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
110
13. Fair value of financial assets and financial liabilities, cont’d
Financial Assets and Liabilities Not Measured at Fair Value
The financial assets and financial liabilities listed below are measured at amortised cost on the Group’s balance sheet. While this is the value at which we
expect the assets will be realised and the liabilities settled, the Group provides an estimate of the fair value of the financial assets and financial liabilities
at balance date in the table below.
Fair values of financial assets and liabilities carried at amortised cost not included in the table below approximate their carrying values. These financial
assets and liabilities are either short term in nature or are floating rate instruments that are re-priced to market interest rates on or near the end of the
reporting period.
Carrying amount in the balance sheet Fair value
As at March 2025
At amortised
cost
$M
At fair
value
$M
Total
$M
$M
Financial assets
Investment securities 6,917 148,460 155,377 155,363
Net loans and advances
798,634 21,568 820,202 820,596
Total
805,551 170,028 975,579 975,959
Financial liabilities
Deposits and other borrowings 916,766 55,453 972,219 972,310
Debt issuances
167,313 2,242 169,555 170,823
Total
1,084,079 57,695 1,141,774 1,143,133
As at September 2024
Financial assets
Investment securities 7,091 133,458 140,549 140,536
Net loans and advances 778,596 24,786 803,382 803,486
Total 785,687 158,244 943,931 944,022
Financial liabilities
Deposits and other borrowings 860,553 43,001 903,554 903,757
Debt issuances 154,572 1,816 156,388 157,727
Total 1,015,125 44,817 1,059,942 1,061,484
As at March 2024
Financial assets
Investment securities 7,900 110,155 118,055 118,053
Net loans and advances 691,144 24,027 715,171 714,284
Total 699,044 134,182 833,226 832,337
Financial liabilities
Deposits and other borrowings 776,650 30,087 806,737 806,542
Debt issuances 125,362 1,747 127,109 127,921
Total 902,012 31,834 933,846 934,463
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
111
14. Shareholders’ equity
Shareholders' Equity
As at Movement
Shareholders' equity
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Ordinary share capital
27,860 28,182 29,033 -1% -4%
Reserves
Foreign currency translation reserve
1
253 (360) 192 large 32%
Share option reserve
81 108 74 -25% 9%
FVOCI reserve
(1,083) (1,078) (590) 0% 84%
Cash flow hedge reserve
(219) (422) (1,120) -48% -80%
Transactions with non-controlling interests reserve
(22) (22) (22)
0% 0%
Total reserves
(990) (1,774) (1,466) -44% -32%
Retained earnings
44,697 43,449 42,739
3% 5%
Share capital and reserves attributable to shareholders of the Company
71,567 69,857 70,306 2% 2%
Non-controlling interests
764 771 768 -1% -1%
Total shareholders' equity
72,331 70,628 71,074
2% 2%
1.
As a result of the closure of a number of international entities, the associated foreign currency translation reserve was recycled from Other comprehensive income to Income Statement,
resulting in a $15 million gain recognised in Other operating income for the March 2025 half (Sep 24 half: $2 million gain; Mar 24 half: $20 million gain).
Ordinar
y Share Capital
As at
Ordinar
y shares
Mar 25
No.
Sep 24
No.
Mar 24
No.
Opening balance
2,979,416,260 3,007,510,678 3,005,286,886
Share buy-back
1
(9,484,274) (29,749,466) -
Bonus option plan
1,433,636 1,655,048 2,223,792
Closing balance
2,971,365,622 2,979,416,260 3,007,510,678
Less: Treasury shares
(3,994,601) (5,352,012) (5,572,694)
Closing balance
2,967,371,021 2,974,064,248 3,001,937,984
1.
The Company commenced a $2.0 billion on-market share buy-back on 3 July 2024. This resulted in 9.5 million shares ($285 million) being cancelled during the March 2025 half
(Sep 24 half: 30 million shares ($883 million)).
Non-Controlling Interests
Profit attributable to
non-controlling interests
Equity attributable to
non-controlling interests
Dividend paid to
non-controlling interests
Half Year As at Half Year
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
$M
Sep 24
$M
Mar 24
$M
ANZ Bank New Zealand PPS 19 19 13 750 758 757 20 19 13
Other non-controlling interests
2 2 1 14 13 11 - - -
Total
21 21 14 764 771 768 20 19 13
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
112
15. Changes in composition of the Group
There were no acquisitions or disposals of material controlled entities for the half year ended 31 March 2025.
16. Investments in associates
ANZGHL
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Share of associates' profit/(loss) 38 21 84 81% -55%
Contributions to profit
Contribution to
Group profit after tax
Ownership interest
held by Group
Associates
Half Year As at
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
%
Sep 24
%
Mar 24
%
P.T. Bank Pan Indonesia (PT Panin)
54 38 31 39 39 39
AMMB Holdings Berhad (AmBank)
1
- - 65 - - 5
Worldline Australia Pty Ltd
(16) (17) (12) 49 49 49
Share of associates' profit/(loss)
38 21 84
1.
On 6 March 2024, the Group partially disposed of its interest in AmBank, reducing its investment by $668 million and its ordinary share interest from 22% to 5%. Following the decrease in
ownership, the Group ceased equity accounting for AmBank and reclassified the investment of $221 million as Investment securities at fair value through other comprehensive income. On
31 May 2024, the Group disposed of its remaining 5% interest in AmBank.
17. Related party disclosure
There have been no transactions with related parties that are significant to understanding the changes in financial position and performance of the Group
since 30 September 2024.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
113
18. Commitments, contingent liabilities and contingent assets
Credit Related Commitments and Contingencies
Half Year
Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Contract amount of:
Undrawn facilities
268,797 249,988 239,898 8% 12%
Guarantees and letters of credit
23,764 22,509 23,390 6% 2%
Performance related contingencies
27,963 26,501 26,932 6% 4%
Total
320,524 298,998 290,220 7% 10%
Other Contingent Liabilities and Contingent Assets
There are outstanding court proceedings, claims and possible claims for and against the Group. Where relevant, expert legal advice has been obtained
and, in the light of such advice, provisions and/or disclosures as deemed appropriate have been made. In some instances, we have not disclosed the
estimated financial impact of the individual items either because it is not practicable to do so or because such disclosure may prejudice the interests of
the Group.
A description of the contingent liabilities and contingent assets as at 31 March 2025 is set out below.
Contingent Liabilities
• Regulatory and customer exposures
The Group regularly engages with its domestic and international regulators and other statutory and supervisory bodies. The nature of these
regulatory interactions can be wide ranging and include regulatory investigations, surveillance and reviews, reportable situations, formal and informal
inquiries and regulatory supervisory activities in Australia and globally. The Group also receives notices and requests for information from its
regulators and other bodies from time to time as part of both industry-wide and Group-specific reviews and makes disclosures to its regulators at its
own instigation.
There has been a recent increase in the number of matters on which the Group has engaged with its regulators. Recent interactions relate to matters
including:
• markets transactions and data reporting;
• anti-money laundering and counter-terrorism financing obligations, processes and procedures; and
• non-financial risk management practices including customer service processes relating to complaints, hardship, deceased estates and
remediation, compliance with mandatory reporting obligations, the application of interest and fees on certain products and the financial
accountability regime.
The possible exposures associated with the Group’s regulatory interactions may include civil enforcement actions, criminal proceedings, fines and
penalties, imposition of capital or liquidity requirements, customer remediation, the requirement to conduct independent reviews, sanctions or the
exercise of other regulatory powers.
There may also be exposures to customers, third parties and shareholders which are additional to any regulatory exposures. These could include
class actions or claims for compensation or other remedies.
The outcomes and total costs associated with these possible regulatory, customer and other exposures remain uncertain.
• South African rate action
In February 2017, the South African Competition Commission commenced proceedings against local and international banks including ANZBGL
alleging breaches of the cartel provisions of the South African Competition Act in respect of trading in the South African rand. The potential civil
penalty or other financial impact is uncertain.
• Esanda dealer car loan litigation
In August 2020, a class action was brought against ANZBGL alleging unfair conduct, misleading or deceptive conduct and equitable mistake in
relation to the use of flex commissions in dealer arranged Esanda car loans. An agreement to settle the claim was reached in October 2024.
ANZBGL will pay $85 million in settlement, which is covered by existing provisions held at 31 March 2025. The settlement is without admission of
liability and remains subject to court approval.
• OnePath superannuation litigation
In December 2020, a class action was brought against OnePath Custodians, OnePath Life and ANZBGL alleging that OnePath Custodians breached
its obligations under superannuation legislation, and its duties as trustee, in respect of superannuation investments and fees. The claim also alleges
that ANZBGL was involved in some of OnePath Custodians’ investment breaches. An agreement to settle the claim was reached in October 2024.
ANZBGL will contribute $14 million to the settlement, which is covered by existing provisions held at 31 March 2025. The settlement is without
admission of liability and remains subject to court approval.
• New Zealand loan information litigation
In September 2021, a representative proceeding was brought against ANZ Bank New Zealand Limited, alleging breaches of disclosure requirements
under consumer credit legislation in respect of variation letters sent to certain loan customers. ANZ Bank New Zealand Limited is defending the
allegations.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
114
18. Commitments, contingent liabilities and contingent assets, cont’d
• Security recovery actions
Various claims have been made or are anticipated, arising from security recovery actions taken to resolve impaired assets. These claims will be
defended.
• Warranties, indemnities and performance management fees
The Group has provided warranties, indemnities and other commitments in favour of the seller/purchaser and other persons in connection with
various acquisitions/disposals of businesses and assets and other transactions, covering a range of matters and risks. It is exposed to claims under
those warranties, indemnities and commitments, some of which are currently active. The outcomes and total costs associated with these exposures
remain uncertain.
The Group has entered into an arrangement to pay performance fees to external fund managers in the event predetermined performance criteria are
satisfied in relation to certain Group investments. The satisfaction of the performance criteria and associated performance fee remains uncertain.
• Clearing and settlement obligations
Certain group companies have a commitment to comply with rules governing various clearing and settlement arrangements which could result in a
credit risk exposure and loss if another member institution fails to settle its payment clearing activities. The Group’s potential exposure arising from
these arrangements is unquantifiable in advance.
Certain group companies hold memberships of central clearing houses, including ASX Clear (Futures), London Clearing House (LCH) SwapClear,
Korea Exchange (KRX), Hong Kong Exchange (HKEX), the Clearing Corporation of India, Taiwan Futures Exchange and the Shanghai Clearing
House. These memberships allow the relevant group company to centrally clear derivative instruments in line with cross-border regulatory
requirements. Common to all of these memberships is the requirement for the relevant group company to make default fund contributions. In the
event of a default by another member, the relevant group company could potentially be required to commit additional default fund contributions which
are unquantifiable in advance.
• Parent entity guarantees
Certain group companies have issued letters of comfort and guarantees in respect of certain subsidiaries in the normal course of business. Under
these letters and guarantees, the issuing entity undertakes to ensure that those subsidiaries continue to meet their financial obligations, subject to
certain conditions including that the subsidiary remains a controlled entity.
• Sale of Grindlays business
On 31 July 2000, ANZBGL completed the sale to Standard Chartered Bank (SCB) of ANZ Grindlays Bank Limited (Grindlays) and certain other
businesses. ANZBGL provided warranties and indemnities relating to those businesses.
The indemnified matters include civil penalty proceedings and criminal prosecutions brought by Indian authorities against Grindlays and certain of its
officers, in relation to certain transactions conducted in 1991 that are alleged to have breached the Foreign Exchange Regulation Act, 1973. Civil
penalties were imposed in 2007 which are the subject of ongoing appeals.
Contingent Assets
• National Housing Bank
ANZBGL is pursuing recovery of the proceeds of certain disputed cheques which were credited to the account of a former Grindlays customer in the
early 1990s.
The disputed cheques were drawn on the National Housing Bank (NHB) in India. Proceedings between Grindlays and NHB concerning the proceeds
of the cheques were resolved in early 2002.
Recovery is now being pursued from the estate of the Grindlays customer who received the cheque proceeds. Any amounts recovered are to be
shared between ANZBGL and NHB.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
115
19. Suncorp Bank acquisition
On 31 July 2024, the Group acquired 100% of the shares in SBGH Limited, the immediate holding company of Norfina Limited (formerly known as
Suncorp-Metway Limited, and trading as Suncorp Bank).
The Group progressed its purchase price allocation (PPA), to identify and measure the assets acquired and liabilities assumed at acquisition date. The
significant adjustments to provisionally determined balances arising from the PPA exercise included the recognition of core deposit and brand intangible
assets, fair value adjustments to gross loans and advances to reflect changes in interest rates and credit since loan origination, provisions for contingent
liabilities and related indemnities and related deferred tax balances with a corresponding decrease to goodwill of $197 million. The provisional goodwill
balance is $1,205 million at 31 March 2025 and is attributable to the assembled workforce and expected synergies arising from the economies of scale
from the integration and consolidation of platforms and funding benefits. It will not be deductible for tax purposes.
The impacts on the provisional balances as at 31 July 2024 are disclosed below. Prior periods have not been restated.
The core deposit intangible was valued at $633 million under a discounted cash flow approach using a multi-period excess earnings model to calculate
the present value of the funding costs savings obtained, comparing the difference between the cost of existing core deposits and the cost of alternative
sources of funding over the expected life of the core deposit base. The discount rates used were calculated using the cost of capital plus a risk premium.
The value of the core deposit intangible asset is influenced by its estimated lifespan and by fluctuations in the estimated costs of alternative funding
options. The asset will be amortised over its expected life of six years.
The balances continue to be provisionally accounted pending completion of the assessment of the fair values of assumed contingent liabilities and
associated indemnities and deferred tax balances, and further adjustments may arise in the September 2025 half.
Assets acquired and liabilities assumed as at 31 July 2024
Provisional at
30 September 2024
$M
1H25
Adjustments
$M
Provisional at
31 March 2025
$M
Assets
Cash and cash equivalents 1,333 - 1,333
Collateral paid 80 -
80
Trading assets 2,307 -
2,307
Derivative financial instruments 310 -
310
Investment securities 9,920 -
9,920
Gross loans and advances 69,745 (198)
69,547
Deferred tax assets 48 (48)
-
Intangible assets 103 685
788
Other assets 431 83
514
Total assets 84,277 522
84,799
Liabilities
Collateral received 48 - 48
Deposits and other borrowings 62,438 (2)
62,436
Derivative financial instruments 279 -
279
Deferred tax liabilities - 216
216
Payables and other liabilities 731 (6)
725
Provisions 89 127
216
Debt issuances 15,847 (10)
15,837
Total liabilities 79,432 325
79,757
Net assets acquired 4,845 197 5,042
Cash consideration paid
1
6,247 - 6,247
Provisional value of Goodwill 1,402 (197)
1,205
1.
The cash consideration of $6,247 million includes payment for Suncorp Bank’s Tier 2 notes ($606 million) and Capital Notes ($564 million).
20. Significant events since balance date
On 3 April 2025, the Group confirmed that ANZBGL has entered into a court enforceable undertaking with APRA for matters relating to non-financial risk
management practices and risk culture across the Group, which includes an additional operational risk capital overlay of $250 million that increases
operational risk RWA by $3.1 billion and will apply to both Level 1 and Level 2 from 30 April 2025.
Other than the matter above, there have been no significant events from 31 March 2025 to the date of signing this report.
DIRECTORS’ DECLARATION
116
Directors’ Declaration
The Directors of ANZ Group Holdings Limited declare that:
1. in the Directors’ opinion the Condensed Consolidated Financial Statements and Notes to the Condensed Consolidated Financial Statements are in
accordance with the Corporations Act 2001, including:
• section 304, that they comply with the Australian Accounting Standards and any further requirements in the Corporations Regulations 2001;
and
• section 305, that they give a true and fair view of the financial position of the Group as at 31 March 2025 and of its performance for the half
year ended on that date; and
2. in the Directors’ opinion as at the date of this declaration there are reasonable grounds to believe that the Company will be able to pay its debts as
and when they become due and payable.
Signed in accordance with a resolution of the Directors.
Paul D O’Sullivan Shayne C Elliott
Chairman Managing Director
7 May 2025
AUDITOR’S REVIEW REPORT AND INDEPENDENCE DECLARATION
117
Independent Auditor’s Review Report to the shareholders of ANZ Group Holdings Limited
Conclusion
We have reviewed the accompanying Condensed Consolidated Financial Statements of ANZ Group Holdings Limited (the Group).
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the Condensed Consolidated Financial
Statements of ANZ Group Holdings Limited do not comply with the Corporations Act 2001, including:
• giving a true and fair view of the Group’s financial position as at 31 March 2025 and of its performance for the half year ended on that date; and
• complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.
The Condensed Consolidated Financial Statements comprise:
• The condensed consolidated balance sheet as at 31 March 2025;
• The condensed consolidated income statement, condensed consolidated statement of comprehensive income, condensed consolidated statement
of changes in equity and condensed consolidated cash flow statement for the half year ended on that date;
• Notes 1 to 20 including selected explanatory notes; and
• The Directors’ Declaration.
The Group comprises ANZ Group Holdings Limited (the Company) and the entities it controlled at the half year’s end or from time to time during the half
year.
Basis for Conclusion
We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity and ISRE
2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. Our responsibilities are further described in the
Auditor’s Responsibilities for the Review of the Financial Report section of our report.
We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements
of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with these requirements.
Responsibilities of the Directors for the Condensed Consolidated Financial Statements
The Directors of the Company are responsible for:
• the preparation of the Condensed Consolidated Financial Statements that give a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001; and
• such internal control as the Directors determine is necessary to enable the preparation of the Condensed Consolidated Financial Statements that
give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor’s responsibility for the review of the Condensed Consolidated Financial Statements
Our responsibility is to express a conclusion on the Condensed Consolidated Financial Statements based on our review. ASRE 2410 and ISRE 2410
require us to conclude whether we have become aware of any matter that makes us believe that the Condensed Consolidated Financial Statements do
not comply with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 31 March 2025 and its performance
for the half year ended on that date, and complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations
Regulations 2001.
A review of Condensed Consolidated Financial Statements consists of making enquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with
Australian Auditing Standards and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become
aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
KPMG
Maria Trinci
Partner
Melbourne
7 May 2025
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company
limited by guarantee. All right reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a
scheme approved under Professional Standards Legislation.
AUDITOR’S REVIEW REPORT AND INDEPENDENCE DECLARATION
118
Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001
To the Directors of ANZ Group Holdings Limited
I declare that, to the best of my knowledge and belief, in relation to the review of ANZ Group Holdings Limited for the half year ended 31 March 2025
there have been:
(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and
(ii) no contraventions of any applicable code of professional conduct in relation to the review.
KPMG
Maria Trinci
Partner
Melbourne
7 Ma
y 2025
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company
limited by guarantee. All right reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a
scheme approved under Professional Standards Legislation.
SUPPLEMENTARY INFORMATION
119
CONTENTS Page
Capital management 120
Average balance sheet and related interest 124
Select geographical disclosures 127
Exchange rates 128
SUPPLEMENTARY INFORMATION
120
Capital management
The disclosures below represent the position for ANZ BH Pty Ltd as the head of ANZ’s Level 2 banking group. The capital position for ANZGHL, the head
of the Level 3 conglomerate group, is outlined on page 44.
As at
Movement
Qualifying Capital
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Tier 1
Shareholders' equity and non-controlling interests
70,712 68,760 70,202 3% 1%
Prudential adjustments to shareholders' equity Table 1
(601) (721) (648) -17% -7%
Gross Common Equity Tier 1 capital
70,111 68,039 69,554 3% 1%
Deductions Table 2 (14,882) (13,570) (11,142) 10% 34%
Common Equity Tier 1 capital
55,229 54,469 58,412 1% -5%
Additional Tier 1 capital Table 3 7,443 8,207 8,297 -9% -10%
Tier 1 capital
62,672 62,676 66,709 0% -6%
Tier 2 capital Table 4 32,831 29,189 28,223 12% 16%
Total qualifying capital
95,503 91,865 94,932 4% 1%
Capital adequacy ratios (Level 2)
Common Equity Tier 1 11.8% 12.2% 13.5%
Tier 1
13.4% 14.0% 15.4%
Tier 2
7.0% 6.5% 6.5%
Total capital ratio
20.4% 20.6% 21.9%
Risk weighted assets Table 5
468,999 446,582 432,779 5% 8%
SUPPLEMENTARY INFORMATION
121
Capital management, cont’d
As at Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Table 1: Prudential adjustments to shareholders' equity
Shareholders' equity attributable to deconsolidated entities
(266) (278) (225) -4% 18%
Deferred fee revenue including fees deferred as part of loan yields
496 426 409 16% 21%
Non-controlling interests and other deductions
(831) (869) (832) -4% 0%
Total
(601) (721) (648) -17% -7%
Table 2: Deductions from Common Equity Tier 1 capital
Unamortised goodwill & other intangibles (excluding ANZ New Zealand
Investments Holdings Ltd)
(4,117) (4,273) (2,936) -4% 40%
Intangible component of investments in ANZ New Zealand Investments
Holdings Ltd
(62) (63) (69) -2% -10%
Intangible component of investments in Suncorp Banking Group Holdings Ltd
(422) - - n/a n/a
Capitalised software
(997) (1,015) (902) -2% 11%
Capitalised expenses (including loan and lease origination fees)
(2,430) (2,337) (2,240) 4% 8%
Applicable deferred net tax assets
(3,412) (3,112) (2,716) 10% 26%
Expected losses in excess of eligible provisions Table 8
(304) (210) (282) 45% 8%
Investment in other insurance subsidiaries
(225) (225) (225) 0% 0%
Investment in ANZ New Zealand Investments Holdings Ltd
(52) (52) (45) 0% 16%
Investment in associates
(1,479) (1,415) (1,405) 5% 5%
Other equity investments
(1,175) (1,032) (1,168) 14% 1%
Cash flow hedge reserve and other deductions
(207) 164 846 large large
Total
(14,882) (13,570) (11,142) 10% 34%
Table 3: Additional Tier 1 capital
ANZ Capital Notes 5
- 931 930 large large
ANZ Capital Notes 6
1,491 1,490 1,490 0% 0%
ANZ Capital Notes 7
1,300 1,300 1,299 0% 0%
ANZ Capital Notes 8
1,486 1,485 1,484 0% 0%
ANZ Capital Notes 9
1,682 1,680 1,678 0% 0%
ANZ Capital Securities
1,544 1,391 1,434 11% 8%
Regulatory adjustments and deductions
(60) (70) (18) -14% large
Total
7,443 8,207 8,297 -9% -10%
`
Table 4: Tier 2 capital
General reserve for impairment of financial assets
1,639 1,712 1,609 -4% 2%
Term subordinated debt notes
32,444 28,584 26,754 14% 21%
Regulatory adjustments and deductions
(1,252) (1,107) (140) 13% large
Total
32,831 29,189 28,223 12% 16%
SUPPLEMENTARY INFORMATION
122
Capital management, cont’d
As at Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Table 5: Risk weighted assets
On balance sheet
302,663 293,523 277,535 3% 9%
Commitments
46,573 41,125 41,424 13% 12%
Contingents
11,514 11,199 11,800 3% -2%
Derivatives
17,331 15,338 17,688 13% -2%
Total credit risk weighted assets
378,081 361,185 348,447 5% 9%
Market risk - Traded 6,854 7,823 11,863 -12% -42%
Market risk - IRRBB
21,357 23,052 26,200 -7% -18%
Operational risk
50,648 49,650 43,274 2% 17%
Total risk weighted assets
456,940 441,710 429,784 3% 6%
RWA adjustment for the IRB capital floor 12,059 4,872 2,995 large large
Total risk weighted assets including floor adjustment 468,999 446,582 432,779 5% 8%
As at Movement
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Table 6: Credit risk weighted assets by Basel asset class
1
Subject to Advanced IRB approach (excluding counterparty credit risk)
Corporate
66,579 62,853 60,362
6% 10%
Residential mortgage
94,747 90,924 101,338
4% -7%
Retail SME
9,558 9,724 9,538
-2% 0%
Qualifying revolving retail
3,155 3,235 3,344
-2% -6%
Other retail
1,636 1,624 1,664
1% -2%
Exposures of New Zealand banking subsidiaries
62,573 - -
n/a n/a
Credit risk weighted assets subject to Advanced IRB approach
238,248 168,360 176,246
42% 35%
Subject to Foundation IRB approach (excluding counterparty credit risk)
Corporate
34,587 33,275 35,665
4% -3%
Sovereign
10,983 11,119 10,856
-1% 1%
Financial institution
23,781 29,821 30,122
-20% -21%
Credit risk weighted assets subject to Foundational IRB approach
69,351 74,215 76,643
-7% -10%
Credit risk weighted assets subject to specialised lending under the
supervisory slotting approach (excluding counterparty credit risk)
6,929 4,242 3,579
63% 94%
Subject to Standardised approach (excluding counterparty credit risk)
Corporate
13,828 14,699 5,102
-6% large
Sovereign
- 81 171
large large
Bank
170 80 n/a
large n/a
Residential mortgage
21,970 21,987 1,853
0% large
Other retail
167 219 92
-24% 82%
Other assets
4,329 4,046 3,790
7% 14%
Specialised lending
143 - -
n/a n/a
Exposures of New Zealand banking subsidiaries
2,005 - -
n/a n/a
Credit risk weighted assets subject to Standardised approach
42,612 41,112 11,008
4% large
Counterparty Credit Risk (inclusive of QCCP)
13,809 - -
n/a n/a
Credit Valuation Adjustment
4,736 - -
n/a n/a
Credit Valuation Adjustment and Qualifying Central Counterparties
- 3,847 5,304
large large
Credit risk weighted assets relating to securitisation exposures
2,396 2,452 2,481
-2% -3%
Exposures of New Zealand banking subsidiaries
- 66,957 73,186
large large
Total credit risk weighted assets
378,081 361,185 348,447
5% 9%
1.
Basel Asset Class categories have been updated to align to the new requirements under APS 330 Public Disclosure effective from 1 January 2025.
SUPPLEMENTARY INFORMATION
123
Capital management, cont’d
Collectively and Individually
Assessed Provision
Basel Expected Loss
1
Table 7: Total provision for credit impairment and
Basel expected loss by division
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
$M
Sep 24
$M
Mar 24
$M
Australia Retail 994 979 1,009
906 861 939
Australia Commercial
1,179 1,182 1,171
698 655 651
Institutional
1,587 1,496 1,546
982 851 960
New Zealand
559 590 580
813 787 622
Suncorp Bank
268 248 -
- - -
Pacific
56 57 65
15 14 15
Group Centre
1 3 -
1 - 1
Total provision for credit impairment and expected loss
4,644 4,555 4,371
3,415 3,168 3,188
1.
Only applicable to IRB portfolios.
As at Movement
Table 8: APRA Expected loss in excess of eligible provisions
Mar 25
$M
Sep 24
$M
Mar 24
$M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
APRA Basel 3 expected loss: non-defaulted 2,112 2,065 2,014 2% 5%
Less: Qualifying collectively assessed provision
Collectively assessed provision (4,280) (4,247) (4,046) 1% 6%
Non-qualifying collectively assessed provision
529 470 423 13% 25%
Standardised collectively assessed provision
352 377 137 -7% large
Non-defaulted excess included in deduction
- - - n/a n/a
APRA Basel 3 expected loss: defaulted 1,303 1,103 1,174 18% 11%
Less: Qualifying individually assessed provision
Individually assessed provision (364) (308) (325) 18% 12%
Additional individually assessed provision for partial write offs
(163) (162) (186) 1% -12%
Standardised individually assessed provision
32 34 31 -6% 3%
Collectively assessed provision on IRB defaulted
(504) (457) (412) 10% 22%
304 210 282 45% 8%
Shortfall in expected loss not included in deduction - - - n/a NIF
Defaulted excess included in deduction
304 210 282 45% 8%
Gross deduction 304 210 282 45% 8%
SUPPLEMENTARY INFORMATION
124
Average balance sheet and related interest
1
Mar 25 Half Year Sep 24 Half Year Mar 24 Half Year
Avg bal Int Rate Avg bal Int Rate Avg bal Int Rate
$M $M % $M $M % $M $M %
Loans and advances
Home loans
2
430,650 14,860 6.9% 389,578 13,434 6.9% 364,372 12,117 6.7%
Consumer finance
3
12,852 555 8.7% 12,771 545 8.5% 12,718 539 8.5%
Business lending
4
319,361 9,575 6.0% 297,336 9,493 6.4% 287,245 9,354 6.5%
Individual provisions for credit impairment
(306) - n/a (307) - n/a (353) - n/a
Total
762,557 24,990 6.6% 699,378 23,472 6.7% 663,982 22,010 6.6%
Non-lending interest earning assets
Cash and other liquid assets 190,873 3,329 3.5% 157,357 3,052 3.9% 198,112 4,072 4.1%
Trading assets and investment securities
188,102 4,413 4.7% 174,331 4,297 4.9% 152,962 3,724 4.9%
Other assets
596 2 n/a 545 7 n/a 565 5 n/a
Total
379,571 7,744 4.1% 332,233 7,356 4.4% 351,639 7,801 4.4%
Total interest earning assets
5
1,142,128 32,734 5.7% 1,031,611 30,828 6.0% 1,015,621 29,811 5.9%
Non-interest earning assets
2
175,841 150,112 147,375
Total average assets 1,317,969 1,181,723 1,162,996
Interest bearing deposits and other borrowings
Certificates of deposit
41,830 978 4.7% 42,503 1,019 4.8% 45,046 1,064 4.7%
Term deposits
294,139 6,761 4.6% 258,196 6,436 5.0% 263,285 6,595 5.0%
On demand and short term deposits
6
335,541 7,199 4.3% 315,823 6,927 4.4% 311,662 6,536 4.2%
Deposits from banks and securities sold under agreement to
repurchase
111,064 2,471 4.5% 93,909 2,316 4.9% 103,459 2,323 4.5%
Commercial paper and other borrowings
53,942 1,274 4.7% 46,334 1,240 5.4% 47,677 1,310 5.5%
Total
836,516 18,683 4.5% 756,765 17,938 4.7% 771,129 17,828 4.6%
Non-deposit interest bearing liabilities
Collateral received and settlement balances owed by ANZ 28,948 350 2.4% 24,102 315 2.6% 22,486 324 2.9%
Debt issuances & subordinated debt
159,177 4,347 5.5% 136,440 3,879 5.7% 115,969 3,202 5.5%
Other liabilities
10,735 485 n/a 13,722 526 n/a 13,220 558 n/a
Total
198,860 5,182 5.2% 174,264 4,720 5.4% 151,675 4,084 5.4%
Total interest bearing liabilities
5
1,035,376 23,865 4.6% 931,029 22,658 4.9% 922,804 21,912 4.7%
Non-interest bearing liabilities
6
211,347 180,988 169,309
Total average liabilities 1,246,723 1,112,017 1,092,113
Total average shareholders' equity
7
71,246 69,706 70,883
1.
Averages used are predominantly daily averages.
2.
Home loans are reported net of average mortgage offset balances of $58,499 million (Sep 24 half: 50,650 million; Mar 24 half: $46,560 million), which are included in non-interest earning
assets. While these balances are required to be grossed up under accounting standards, they are netted down for the calculation of customer interest payments and the calculation of the
Group’s net interest margin.
3.
Consumer finance includes retail products such as credit cards and personal loans, mainly held in the Australia Retail division.
4.
Business lending includes commercial loans to small and mid-sized enterprises, in the Australia Commercial and New Zealand divisions, as well as larger corporate customers in the
Institutional division.
5.
Intra-group interest earning assets and interest income and Intra-group interest earning liabilities and interest expense have been eliminated.
6.
On demand and short-term deposits exclude average mortgage offset balances of $58,499 million (Sep 24 half: $50,650 million; Mar 24 half: $46,560 million), which are included in non-
interest bearing liabilities.
7.
Includes non-controlling interests.
SUPPLEMENTARY INFORMATION
125
Average balance sheet and related interest
1
, cont’d
Mar 25 Half Year Sep 24 Half Year Mar 24 Half Year
Avg bal Int Rate Avg bal Int Rate Avg bal Int Rate
$M $M % $M $M % $M $M %
Loans and advances
2
Australia
541,632 18,040 6.7% 486,678 16,232 6.7% 449,835 14,793 6.6%
New Zealand
138,556 4,345 6.3% 138,824 4,715 6.8% 139,952 4,664 6.7%
Rest of World
82,369 2,605 6.3% 73,876 2,525 6.8% 74,195 2,553 6.9%
Total
762,557 24,990 6.6% 699,378 23,472 6.7% 663,982 22,010 6.6%
Trading assets and investment securities
Australia 98,852 2,433 4.9% 91,854 2,266 4.9% 78,777 1,858 4.7%
New Zealand
19,021 410 4.3% 18,106 461 5.1% 16,727 444 5.3%
Rest of World
70,229 1,570 4.5% 64,371 1,570 4.9% 57,458 1,422 4.9%
Total
188,102 4,413 4.7% 174,331 4,297 4.9% 152,962 3,724 4.9%
Total interest earning assets
3
Australia 733,401 22,474 6.1% 645,682 20,046 6.2% 628,133 19,021 6.1%
New Zealand
169,371 5,011 5.9% 168,307 5,502 6.5% 170,005 5,494 6.5%
Rest of World
239,356 5,249 4.4% 217,622 5,280 4.9% 217,483 5,296 4.9%
Total
1,142,128 32,734 5.7% 1,031,611 30,828 6.0% 1,015,621 29,811 5.9%
Total average assets
Australia
850,393 739,658 716,218
New Zealand
185,087 181,354 182,716
Rest of World
282,489 260,711 264,062
Total average assets
1,317,969 1,181,723 1,162,996
Interest bearing deposits and other borrowings
4
Australia
496,626 11,707 4.7% 453,282 10,736 4.7% 450,686 10,220 4.5%
New Zealand
117,582 2,410 4.1% 117,156 2,841 4.8% 117,591 2,794 4.8%
Rest of World
222,308 4,566 4.1% 186,327 4,361 4.7% 202,852 4,815 4.7%
Total
836,516 18,683 4.5% 756,765 17,938 4.7% 771,129 17,829 4.6%
Total interest bearing liabilities
3
Australia 645,006 15,857 4.9% 585,151 14,444 4.9% 562,945 13,275 4.7%
New Zealand
138,422 2,915 4.2% 136,125 3,402 5.0% 137,306 3,403 5.0%
Rest of World
251,948 5,093 4.1% 209,753 4,812 4.6% 222,553 5,234 4.7%
Total
1,035,376 23,865 4.6% 931,029 22,658 4.9% 922,804 21,912 4.7%
Total average liabilities
Australia
782,439 694,206 656,885
New Zealand
166,975 162,205 163,322
Rest of World
297,309 255,606 271,906
Total average liabilities
1,246,723 1,112,017 1,092,113
Total average shareholders' equity
Ordinary share capital, reserves, retained earnings and non-
controlling interests
71,246 69,706 70,883
Total average shareholders' equity
71,246 69,706 70,883
Total average liabilities and shareholder's equity 1,317,969 1,181,723 1,162,996
1.
Averages used are predominantly daily averages.
2.
Home loans are reported net of average mortgage offset balances of $58,499 million (Sep 24 half: $50,650 million; Mar 24 half: $46,560 million), which are included in non-interest earning
assets. While these balances are required to be grossed up under accounting standards, they are netted down for the calculation of customer interest payments and the calculation of the
Group’s net interest margin.
3.
Intra-group interest earning assets and interest income and Intra-group interest earning liabilities and interest expense have been eliminated.
4.
On demand and short-term deposits exclude average mortgage offset balances of $58,499 million (Sep 24 half: $50,650 million; Mar 24 half: $46,560 million), which are included in non-
interest bearing liabilities.
SUPPLEMENTARY INFORMATION
126
Average balance sheet and related interest, cont’d
Half Year
Gross earnin
gs rate
1
Mar 25
%
Sep 24
%
Mar 24
%
Australia
6.38 6.26 6.20
New Zealand
5.93 6.54 6.46
Rest of World
4.51 5.04 5.23
Group
5.75 5.98 5.87
Net interest spread and net interest margin analysis as follows:
Half Year
Australia
1
Mar 25
%
Sep 24
%
Mar 24
%
Net interest spread
1.24 1.22 1.21
Interest attributable to net non-interest bearing items
0.44 0.44 0.42
Net interest margin - Australia
1.68 1.66 1.63
New Zealand
1
Net interest spread
1.63 1.48 1.48
Interest attributable to net non-interest bearing items
0.72 0.88 0.86
Net interest margin - New Zealand
2.35 2.36 2.34
Rest of World
1
Net interest spread
0.46 0.45 0.52
Interest attributable to net non-interest bearing items
0.26 0.33 0.26
Net interest margin - Rest of World
0.72 0.78 0.78
Group
Net interest spread
1.13 1.11 1.12
Interest attributable to net non-interest bearing items
0.43 0.47 0.44
Net interest margin
1.56 1.58 1.56
Net interest margin (excl. Markets business unit) 2.26 2.38 2.33
1.
Geographic gross earnings rate, net interest spread and net interest margin are calculated gross of intra-group items (Intra-group interest earning assets and associated interest income and
intra-group interest bearing liabilities and associated interest expense).
SUPPLEMENTARY INFORMATION
127
Select geographical disclosures
The following divisions operate across the geographic locations illustrated below:
• Australia Retail division - Australia
• Australia Commercial division - Australia
• Institutional division - Australia, New Zealand and Rest of World
• New Zealand division - New Zealand
• Suncorp Bank division - Australia
• Pacific division - Rest of World
• Group Centre division - Australia, New Zealand and Rest of World
The Rest of World geography includes all geographies in which the Group operates outside of Australia and New Zealand. This includes Asia, Pacific,
Europe & America.
Australia
$M
New Zealand
$M
Rest of World
$M
Total
$M
March 2025 Half Year
Statutory profit/(loss) attributable to shareholders of the Company 1,906 1,157 579 3,642
Cash profit/(loss)
1,935 1,052 581 3,568
Net loans and advances
600,332 139,923 79,947 820,202
Customer deposits
462,928 128,089 165,547 756,564
Risk weighted assets
311,613 80,382 77,004 468,999
September 2024 Half Year
Statutory profit/(loss) attributable to shareholders of the Company 1,734 964 430 3,128
Cash profit/(loss) 1,665 1,034 474 3,173
Net loans and advances 588,947 139,644 74,791 803,382
Customer deposits 450,507 125,124 139,580 715,211
Risk weighted assets 296,501 82,771 67,310 446,582
March 2024 Half Year
Statutory profit/(loss) attributable to shareholders of the Company 1,819 964 624 3,407
Cash profit/(loss) 1,871 1,073 608 3,552
Net loans and advances 502,745 138,647 73,779 715,171
Customer deposits 389,967 124,156 126,967 641,090
Risk weighted assets 275,841 88,058 68,880 432,779
New Zealand geography (in NZD)
Half Year
Movement
Mar 25
NZD M
Sep 24
NZD M
Mar 24
NZD M
Mar 25
v. Sep 24
Mar 25
v. Mar 24
Net interest income 2,196 2,174 2,142
1% 3%
Other operating income
345 348 382
-1% -10%
Operating income
2,541 2,522 2,524
1% 1%
Operating expenses (895) (901) (859)
-1% 4%
Cash profit before credit impairment and income tax
1,646 1,621 1,665
2% -1%
Credit impairment (charge)/release 5 (11) (33)
large large
Cash profit before income tax
1,651 1,610 1,632
3% 1%
Income tax expense and non-controlling interests (490) (479) (477)
2% 3%
Cash profit
1,161 1,131 1,155
3% 1%
Adjustments between statutory profit and cash profit 116 (78) (117)
large large
Statutory profit
1,277 1,053 1,038
21% 23%
Individually assessed credit impairment charge/(release) 14 39 3
-64% large
Collectively assessed credit impairment charge/(release)
(19) (28) 30
-32% large
Net loans and advances
153,912 151,963 151,167
1% 2%
Customer deposits
140,895 136,163 135,367
3% 4%
Risk weighted assets
88,418 90,069 96,005
-2% -8%
Total FTE
6,903 7,003 7,185
-1% -4%
SUPPLEMENTARY INFORMATION
128
Exchange rates
Major exchange rates used in the translation of foreign subsidiaries, branches, investments in associates and issued debt are as follows:
Balance Sheet Profit & Loss Average
As at Half Year
Mar 25 Sep 24 Mar 24 Mar 25 Sep 24 Mar 24
Chinese Renminbi 4.5563 4.8622 4.7035 4.6270 4.7862 4.7167
Euro
0.5796 0.6209 0.6040 0.6040 0.6110 0.6054
Pound Sterling
0.4848 0.5178 0.5157 0.5037 0.5188 0.5216
Indian Rupee
53.803 58.086 54.256 54.706 55.535 54.403
Indonesian Rupiah
10,401 10,493 10,331 10,287 10,603 10,235
Japanese Yen
93.650 98.272 98.515 97.502 101.163 96.880
Malaysian Ringgit
2.7853 2.8468 3.0773 2.8297 3.0471 3.0822
New Taiwan Dollar
20.870 21.938 20.829 20.863 21.481 20.702
New Zealand Dollar
1.1000 1.0882 1.0903 1.1044 1.0929 1.0761
Papua New Guinean Kina
2.5497 2.7165 2.4549 2.5530 2.5569 2.4413
United States Dollar
0.6283 0.6933 0.6508 0.6396 0.6644 0.6543
DEFINITIONS
129
AASB means Australian Accounting Standards Board. The term ‘AASB’ is commonly used when identifying Australian Accounting Standards issued by
the AASB.
ADI means Authorised Deposit-taking Institution as defined by APRA.
ANZ Bank Group means ANZ BH Pty Ltd and each of its subsidiaries, including ANZBGL and ANZ Bank New Zealand.
ANZBGL means Australia and New Zealand Banking Group Limited.
ANZBGL Group means ANZBGL and each of its subsidiaries.
ANZ Bank New Zealand means ANZ Bank New Zealand Limited.
ANZ Economics means ANZ Research Economics, a business unit within ANZ which conducts analysis of key economic inputs and developments and
assessment of the potential impacts on the local, regional and global economies.
ANZGHL means ANZ Group Holdings Limited.
ANZGHL Group means ANZGHL and each of its subsidiaries, including ANZ BH Pty Ltd, ANZ Group Services Pty Ltd and ANZ NBH Pty Ltd.
ANZ Non-Bank Group means ANZ NBH Pty Ltd and each of its subsidiaries, including ANZ’s beneficial interests in the 1835i trusts and non-controlling
interests in the Worldline merchant acquiring joint venture, and ANZ Group Services Pty Ltd.
APRA means Australian Prudential Regulation Authority.
APS means ADI Prudential Standard.
ASX means Australian Securities Exchange.
AT1 means Additional Tier 1 capital.
Basel Harmonisation ratios are the Group’s interpretation of Basel Calculation of RWA for credit risk regulations documented in the Basel Framework
and the ‘Australian Banking Association Basel 3.1 Capital Comparison Study’ (Mar 2023).
Board means ANZGHL Board of Directors.
Cash and cash equivalents comprise coins, notes, money at call, balances held with central banks, liquid settlement balances (readily convertible to
known amounts of cash which are subject to insignificant risk of changes in value) and securities purchased under agreements to resell (reverse
repurchase agreements) in less than three months.
Cash profit is an additional measure of profit which is prepared on a basis other than in accordance with accounting standards. Cash profit represents
the Group’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 as noted below.
These items do not discriminate between positive and negative adjustments.
Gains and losses are adjusted where they are significant, or have the potential to be significant in any one period, and fall into one of three categories:
1. non-core gains or losses included in earnings arising from changes in tax, legal or accounting legislation or other non-core items not associated with
the core operations of the Group such as amortisation of intangible assets recognised in a business combination;
2. economic hedging impacts and similar accounting items that represent timing differences that will reverse through earnings in the future; and
3. accounting reclassifications between individual line items that do not impact reported results, such as individually assessed allowance for ECL on
assets measured at fair value through profit or loss.
Cash profit is not a measure of cash flow or profit determined on a cash accounting basis.
Cash profit results (Banking View) is provided to reflect the following three broader business activities of the Group:
- Banking includes Australia Retail, Australia Commercial, New Zealand, Institutional (excluding Markets business unit), Suncorp Bank and Pacific
divisions delivering lending, trade, deposits and payment services and is managed to optimise net interest margin and return on equity.
- Markets is complementary to the Banking business, acts as an intermediary for risk management solutions and is managed for revenue and to
optimise return on equity.
- Group Centre provides operational support and treasury functions and is managed for cost efficiency and capital optimisation.
Collectively assessed allowance for expected credit loss represents the expected credit loss, which incorporates forward-looking information and
does not require an actual loss event to have occurred for a credit loss provision to be recognised.
Company
means ANZGHL.
Credit risk is the risk of financial loss resulting from the failure of the Group’s customers and counterparties to honour or perform fully the terms of a loan
or contract.
Credit risk weighted assets (credit RWA) represent assets which are weighted for credit risk according to a set formula as prescribed in APS 112/113.
Customer deposits represent term deposits, other deposits bearing interest, deposits not bearing interest and borrowing corporations’ debt excluding
securitisation deposits.
Derivative credit valuation adjustment (“CVA”) - Over the life of a derivative instrument, the Group uses a model to adjust fair value to take into
account the impact of counterparty credit quality. The methodology calculates the present value of expected losses over the life of the financial instrument
as a function of probability of default, loss given default, expected credit risk exposure and an asset correlation factor. Impaired derivatives are also
subject to a CVA.
Dividend payout ratio is the total ordinary dividend payment divided by profit attributable to shareholders of the Company.
DEFINITIONS
130
Embedded losses - In relation to interest rate risk in the banking book, APRA requires ADIs to give consideration to embedded gains or losses in
banking book items that are not accounted for on a marked-to-market basis when determining regulatory capital. The embedded loss or gain measures
the difference between the book value and the economic value of banking book activities at a point in time.
Expected credit losses (ECL) – The determination of the ECL is dependent on credit deterioration since origination, according to the following three-
stage approach:
- Stage 1: At the origination of a financial asset, and subsequently where there has not been a Significant Increase in Credit Risk (SICR) since
origination, an allowance for ECL is recognised reflecting the expected credit losses resulting from default events that are possible within the next 12
months from the reporting date. For instruments with a remaining maturity of less than 12 months, expected credit losses are estimated based on
default events that are possible over the remaining time to maturity.
- Stage 2: Where there has been a SICR since origination, an allowance for ECL is recognised reflecting expected credit losses resulting from all
possible default events over the expected life of a financial instrument. If credit risk were to improve in a subsequent period such that the increase in
credit risk since origination is no longer considered significant, the exposure returns to a Stage 1 classification with ECL measured accordingly.
- Stage 3: Where there is objective evidence of impairment, an allowance equivalent to lifetime ECL is recognised.
Exposure at default (EAD) means the expected balance sheet exposure at default taking into account repayments of principal and interest,
expected additional drawdowns and accrued interest.
Funding for Lending Programme (FLP) refers to three-year funding announced by the RBNZ in November 2020 and offered to New Zealand banks,
which aimed to lower the cost of borrowing for New Zealand businesses and households.
GDP means gross domestic product.
Group means ANZGHL and each of its subsidiaries, including ANZ BH Pty Ltd, ANZ Group Services Pty Ltd and ANZ NBH Pty Ltd.
Gross loans and advances (GLA) is made up of loans and advances, capitalised brokerage and other origination costs less unearned income.
Impaired assets are those financial assets where doubt exists as to whether the full contractual amount will be received in a timely manner, or where
concessional terms have been provided because of the financial difficulties of the customer.
Impaired loans comprise drawn facilities where the customer’s status is defined as impaired.
Individually assessed allowance for expected credit losses is assessed on a case-by-case basis for all individually managed impaired assets taking
into consideration factors such as the realisable value of security (or other credit mitigants), the likely return available upon liquidation or bankruptcy, legal
uncertainties, estimated costs involved in recovery, the market price of the exposure in secondary markets and the amount and timing of expected
receipts and recoveries.
Interest rate risk in the banking book (IRRBB) relates to the potential adverse impact of changes in market interest rates on the Group’s future net
interest income. The risk generally arises from:
1. Repricing and yield curve risk - the risk to earnings or market value as a result of changes in the overall level of interest rates and/or the relativity of
these rates across the yield curve;
2. Basis risk - the risk to earnings or market value arising from volatility in the interest margin applicable to banking book items; and
3. Optionality risk - the risk to earnings or market value arising from the existence of stand-alone or embedded options in banking book items.
IRB means internal ratings-based.
Probability of default (PD) means the estimate of the likelihood that a borrower will default over a given period.
Level 1 in the context of APRA supervision, means ANZBGL consolidated with certain approved subsidiaries.
Level 2 in the context of APRA supervision, means consolidated ANZ Bank Group, excluding insurance and funds management entities, commercial
non-financial entities and certain securitisation vehicles.
Level 3 in the context of APRA supervision, means ANZGHL Group, the conglomerate group at the widest level.
Loss given default (LGD) means the expected loss in the event of the borrower defaulting, expressed as a percentage of the facility's EAD,
taking into account direct and indirect recovery costs.
Net interest margin is net interest income as a percentage of average interest earning assets.
Net loans and advances represent gross loans and advances less allowance for expected credit losses.
Net Stable Funding Ratio (NSFR) is the ratio of the amount of available stable funding (ASF) to the amount of required stable funding (RSF) defined by
APRA. The amount of ASF is the portion of an ADI capital and liabilities expected to be a reliable source of funds over a one year time horizon. The
amount of RSF is a function of the liquidity characteristics and residual maturities of an ADI’s assets and off-balance sheet activities. ADIs must maintain
an NSFR of at least 100%.
Net tangible assets equal share capital and reserves attributable to shareholders of the Company less unamortised intangible assets (including goodwill
and software).
NZX means New Zealand’s Exchange.
RBA means Reserve Bank of Australia, Australia’s central bank.
RBNZ means Reserve Bank of New Zealand, New Zealand’s central bank.
Regulatory deposits are mandatory reserve deposits lodged with local central banks in accordance with statutory requirements.
Return on average assets is the profit attributable to shareholders of the Company, divided by average total assets.
DEFINITIONS
131
Return on average ordinary shareholders’ equity is the profit attributable to shareholders of the Company, divided by average ordinary shareholders’
equity.
Risk weighted assets (RWA) are risk weighted according to each asset’s inherent potential for default and what the likely losses would be in the case of
default. In the case of non-asset backed risks (i.e. market and operational risk), RWA is determined by multiplying the capital requirements for those risks
by 12.5.
Settlement balances owed to/by ANZ represent financial assets and/or liabilities which are in the course of being settled. These may include trade
dated assets and liabilities, vostro accounts and securities settlement accounts.
SME means small and medium enterprises.
Term Funding Facility (TFF) refers to three-year funding announced by the RBA on 19 March 2020 and offered to ADIs in order to support lending to
Australian businesses at low cost. The TFF was closed to drawdowns on 30 June 2021.
Term Lending Facility (TLF) refers to three to five-year funding offered by the RBNZ between May 2020 and July 2021 to promote lending to New
Zealand businesses.
DEFINITIONS
132
Description of divisions
The Group operates on a divisional structure with seven divisions: Australia Retail, Australia Commercial, Institutional, New Zealand, Suncorp Bank,
Pacific, and Group Centre.
Australia Retail
The Australia Retail division provides a full range of banking services to Australian consumers. This includes Home Loans, Deposits, Credit Cards and
Personal Loans. Products and services are provided via the branch network, home loan specialists, contact centres, a variety of self-service channels
(digital and internet banking, website, ATMs and phone banking) and third-party brokers.
Australia Commercial
The Australia Commercial division provides a full range of banking products and financial services across the following customer segments: SME
Banking (small business owners and medium commercial customers), and Diversified & Specialist Businesses (large commercial customers, and high
net worth individuals and family groups). It also includes run-off businesses (Central Functions).
Institutional
The Institutional division services institutional and corporate customers, and governments across Australia, New Zealand and International (including
Papua New Guinea (PNG)) via the following business units:
• Transaction Banking provides customers with working capital and liquidity solutions including documentary trade, supply chain financing, commodity
financing as well as cash management solutions, deposits, payments and clearing.
• Corporate Finance provides customers with loan products, loan syndication, specialised loan structuring and execution, project and export finance,
debt structuring and acquisition finance, and sustainable finance solutions.
• Markets provides customers with risk management services in foreign exchange, interest rates, credit, commodities and debt capital markets in
addition to managing the Group's interest rate exposure and liquidity position.
• Central Functions consists of enablement functions that help deliver payments services and operational support across both the Institutional division
and the wider enterprise.
New Zealand
The New Zealand division comprises the following business units:
• Personal provides a full range of banking and wealth management services to consumer and private banking customers. We deliver our services via
our internet and app-based digital solutions and network of branches, mortgage specialists, private bankers and contact centres.
• Business & Agri provides a full range of banking services through our digital, branch and contact centre channels, and traditional relationship banking
and sophisticated financial solutions through dedicated managers. These cover privately owned small, medium and large enterprises, the agricultural
business segment, government and government-related entities.
• Central Functions includes treasury and back-office support functions.
Suncorp Bank
The Suncorp Bank division provides banking and related services to retail, commercial, small and medium enterprises and agribusiness customers in
Australia.
Pacific
The Pacific division provides products and services to retail and commercial customers (including multi-nationals) and to governments located in the
Pacific region excluding PNG which forms part of the Institutional division.
Group Centre
Group Centre division provides support to the operating divisions, including technology, property, risk management, financial management, treasury,
strategy, marketing, human resources, corporate affairs, and shareholder functions. It also includes minority investments in Asia and interests in the ANZ
Non-Bank Group.
ASX APPENDIX 4D - CROSS REFERENCE INDEX
133
Page
Details of the reporting period (4D Item 1) ............................................................................................................................................................................. 2
Results for Announcement to the Market (4D Item 2) ............................................................................................................................................................ 2
Net Tangible Assets per security (4D Item 3) ....................................................................................................................................................................... 11
Details of entities over which control has been gained or lost (4D Item 4) ......................................................................................................................... 112
Dividends and dividend dates (4D Item 5) ............................................................................................................................................................................. 2
Dividend Reinvestment Plan (4D Item 6) ............................................................................................................................................................................... 2
Details of associates and joint venture entities (4D Item 7) ................................................................................................................................................ 112
---
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
---
ANZ Group Holdings Limited 9/833 Collins Street Docklands Victoria 3008 Australia ABN 16 659 510 791
2025
First Half
Results
Half year ended 31 March 2025
Results Presentation and Investor Discussion Pack
8 May 2025
Approved for distribution by ANZ’s Continuous Disclosure Committee
Important information
Forward-looking statements
The material in this presentation contains general background information about the Group’s activities current as at 7 May 2025. 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.
This presentation may contain forward-looking statements or opinions including statements regarding our intent, belief or current expectations with respect to the Group’s business
operations, market conditions, results of operations and financial condition, capital adequacy, sustainability objectives or targets, specific provisions and risk management practices.
When used in the presentation, the words ‘forecast’, ‘estimate’, 'goal', 'target', 'indicator', 'plan', 'pathway', ‘ambition’, ‘modelling’, ‘project’, ‘intend’, ‘anticipate’, ‘believe’, ‘expect’,
‘may’, ‘probability’, ‘risk’, ‘will’, ‘seek’, ‘would’, ‘could’, ‘should’ and similar expressions, as they relate to the 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. No member of the Group undertakes 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.
There can be no assurance that actual outcomes will not differ materially from any forward-looking statements or opinions contained herein.
The presentation also contains climate-related statements. Those statements should be read with the important notices in relation to the uncertainties, challenges and risks
associated with climate-related information included at the end of this presentation pack.
The ESG and climate information reported for the half year ending 31 March 2025, in this presentation, does not include Suncorp Bank for the period since acquisition date
1
.
All amounts in this document are in Australian dollars unless otherwise stated and all financial performance metrics are on a cash profit basis unless otherwise stated. Sum of parts
within charts and commentary may not equal totals due to rounding.
1.On 31 July 2024, the Group acquired 100% of the shares in SBGH Limited, the immediate holding company of Suncorp Bank
2
Contents
1
CEO presentation
2
CFO presentation
3
Corporate profile & Group
and divisional performance
4
Treasury
5
Risk management & Housing
3
6
ESG disclosures &
Shareholder information
2025 First Half Results
Shayne Elliott
Chief Executive Officer
1H25 overview
1.On 3 April 2025, ANZ confirmed that it has entered into a court enforceable undertaking (EU) with the Australian Prudential Regulation Authority (APRA) for matters relating to non-financial risk management practices and risk culture across
the Group, which includes an additional operational risk capital overlay of $250m
2.Based on cash profit from continuing operations
Earnings per share
2
, cents
104
128
119
118
106
120
Avg 1H16
to 2H22
1H232H231H242H241H25
Overview
•Strongest revenue outcome on record
•First full half of Suncorp Bank earnings
Three significant changes
•Announced a new CEO
•Enforceable undertaking entered with APRA
1
•More disruptive era of geopolitics
5
Well positioned to manage risk and support our customers
Stronger balance sheetDiversified business
Capital and provision strength, $b
1.Banking includes Australia Retail, Australia Commercial, New Zealand, Institutional (ex Markets), Suncorp Bank and Pacific divisions
2.9
38.1
Mar 16
4.3
55.2
Mar 25
41.0
59.5
+45%
APRA level 2 CET1 capitalCollective provision balance
30%
18%
24%
18%
9%
Australia Retail
Australia
Commercial
Institutional
(ex Markets)
New Zealand
Suncorp Bank
1%
Pacific
1H25
Banking
1
revenue by
divisions
6
Revenue
$10,995m
up 5% vs 2H24
Cash Profit
$3,568m
up 12% vs 2H24
Profit Before Provisions
$5,253m
up 6% vs 2H24
1H25 financial results
7
Return on Equity
10.2%
up 94bps vs 2H24
Dividend per Share
83 cents
unchanged vs 2H24
Earnings per Share
120.1 cents
up 13% vs 2H24
Customer
segments
Dual platform future – resilient, low cost, agile
Retail
Small
business
Mid-sized
corporates
Large
corporates
Financial
institutions
Multinational
corporations
ANZ Transactive Global
Secure, configurable platform offering seamless access to core
banking services such as Cash Mgt, FX, Trade Finance, Loans,
Commercial Cards, Data Insights
ANZ Plus
Contemporary digital platform with features
designed to help customers improve their
financial wellbeing
8
App Store
4.8
1
ANZ Plus - growing customers, deepening engagement
ANZ Plus customer, 000s
ANZ Plus customer deposits, $b
1.As at 31 March 2025
2.Active customers using Financial Wellbeing features
9
Coach NPS
1
+44
Join NPS
1
+58
Play Store
4.7
1
Using FWB
features
1,2
255K
50
129
228
333
462
557
660
752
848
928
1,029
1,058
Sep 22Dec 22Mar 23Jun 23Sep 23Dec 23Mar 24Jun 24Sep 24Dec 24Mar 25Apr 25
Main bank
1
55%
Sep 22Dec 22Mar 23Jun 23Sep 23Dec 23Mar 24Jun 24Sep 24Dec 24Mar 25Apr 25
1
3
5
8
9
11
13
15
16
18
20
21
ANZ Plus – delivering more rapidly
ANZ Plus production releases per month
10
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
May
22
Jun
22
Jul
22
Aug
22
Sep
22
Oct
22
Nov
22
Dec
22
Jan
23
Feb
23
Mar
23
Apr
23
May
23
Jun
23
Jul
23
Aug
23
Sep
23
Apr
22
Nov
23
Dec
23
Jan
24
Feb
24
Mar
24
Apr
24
May
24
Jun
24
Jul
24
Aug
24
Sep
24
Oct
24
Nov
24
Dec
24
Jan
25
Feb
25
Mar
25
Oct
23
Continuing to build out ANZ Transactive Global
Direct integration customers, indexed data
Institutional Payments and Cash Management (PCM) deposits, $b
11
100
112
136
156
173
Mar 21Mar 22Mar 23Mar 24Mar 25
+11%
121
142
148
150
156
Mar 21Mar 22Mar 23Mar 24Mar 25
Transactive Global
Multi-product access
Integrated services
Richer and safer
experience
Payments
& Cash
Management
Trade &
Supply Chain
Finance
Corporate
Finance
Markets
Agency
Payments
Workforce
Automation
Virtual
Account
Management
Reporting
Self-ServiceData
Insights
Transaction
Monitoring
Digital platforms, underpinned by Transactive Global
1.Number of payments
2.Subset of total payments
3.Platform Cash Management accounts
12
Institutional platform performance
Total payments
1
, m
Direct integration payments
1,2
, mClient Monies, accounts
3
, k
Real time payments (NPP Agency)
1,2
, m
171
295
320
341
358
1H211H221H231H241H25
+5%
64
99
124
138
161
1H211H221H231H241H25
+17%
8
15
20
24
29
1H211H221H231H241H25
+21%
231
312
411
400
467
Mar 21Mar 22Mar 23Mar 24Mar 25
+17%
Suncorp Bank – delivering scale and diversification in Australia
Australia retail and commercial businesses
Net loans and advances, $b
Customer deposits, $b
1.On 18 July 2022, ANZ announced an agreement to acquire Suncorp Bank from Suncorp Group Limited. June 2022 position illustrates the combined balance sheet of Suncorp Bank at June 2022 and ANZ Australia Retail and Australia
Commercial divisions at March 2022 reporting date
13
263
303
48
56
Jun 22
1
Mar 25
311
359
+15%
342
407
62
72
Jun 22
1
Mar 25
404
479
+18%
Sep 24
83%
17%
1H25
NPAT
$1,646m
Australia Retail and Australia CommercialSuncorp Bank
Board priorities
14
Resolve non-financial risk issues,
ensure changes are embedded
Grow dual platforms, underpinning long
term competitive advantage
Run Suncorp Bank well, deliver
synergies, prepare for migration
Manage a smooth CEO transition
Consistent approach since 2016
1.ANZ 1H16 Results Presentation
15
1. Create a simpler, better
capitalised, better balanced
and more agile bank
2. Focus our efforts on
attractive areas where we
can carve out a winning
position
3. Drive a purpose and
values led transformation
of the Bank
4. Build a superior everyday
experience for our people
and customers in order to
compete in the digital age
Four priorities (1H16
1
)
Building a better bank
Our purpose
is to shape a world
where people and
communities thrive
2025 First Half Results
Farhan Faruqui
Chief Financial Officer
1H25 overview
Revenue, $bProfit before provisions, $bCash profit, $b
17
2H241H25
10.46
11.00
+5%
2H241H25
4.94
5.25
+6%
2H241H25
3.17
3.57
+12%
Return on equity, %Earnings per share, centsDividend per share, cents
9.2
10.2
2H241H25
+94bps
106
120
2H241H25
+13%
8383
2H241H25
1H25 financial performance
Total Group revenue, $b Banking
1
revenue, $b
Markets revenue, $bGroup Centre revenue, $b
1.Banking includes Australia Retail, Australia Commercial, New Zealand, Institutional (ex Markets), Suncorp Bank and Pacific divisions
2.At a business unit level, capital is allocated based on regulatory capital. At the Group level, this is based on the ordinary shareholders' equity (excluding non-controlling interests)
18
1H25Total Group1H25 vs 2H24Banking
1
MarketsGroup Centre
Profit / (loss) before provisions, $m5,253+6%5,099468-314
Cash profit / (loss) after tax, $m3,568+12%3,496342-270
Net interest margin, %1.56-2bps2.38n/an/a
Average interest earning assets, $b 1,142+11%72636452
Cost to income ratio, %52.2-59bps47.356.4n/a
Return on avg RWA, %1.55+11bps1.821.22n/a
ROE
2
, %10+94bps1410n/a
1H242H241H25
10.3
10.5
11.0
+5%
1H242H241H25
8.9
9.2
9.7
+5%
1H242H241H25
1.2
1.0
1.1
+10%
1H242H241H25
0.23
0.28
0.24
-15%
Banking performance
Revenue, $bProfit before provisions, $bRisk adjusted margins, %
1.At a business unit level, capital is allocated based on regulatory capital
19
+9%+6%
5.04
5.17
5.22
1H242H241H25
141414
1H242H241H25
Return on equity
1
, %
1.8
2.4
1.7
2.9
1H24
0.3
1.8
2.3
1.8
3.0
2H24
0.9
1.8
2.3
1.7
2.9
1H25
8.9
9.2
9.7
+5%
Australia RetailAustralia CommercialInstitutional (ex Markets)New ZealandSuncorp BankPacific
1.1
1.5
1.0
1.2
1H24
0.1
1.1
1.5
1.0
1.2
2H24
0.4
1.1
1.5
1.0
1.1
1H25
4.8
4.9
5.1
+5%
Net interest margin (NIM)
Group NIM, bps
Banking NIM, bps
20
244
238
2
2H24Assets
pricing
Deposits
pricing
Wholesale
funding
Assets &
funding mix
Capital &
replicating
portfolio
Other
1
1H25
0
-2
-2
-1
-3
158
156
2H241H25
1.Primarily reflecting the impact of the full six months of Suncorp Bank earnings and timing of remediation matters
-3bps
-2bps
-6bps
Institutional (ex Markets): -2
Other divisions: Assets &
deposits pricing largely
net off
Impacted by
both rate &
volume
Australia retail & commercial businesses
Net loans and advances +$10.1b, Customer deposits +$10.6b
756.4
779.9
8.5
1.0
0.6
12.8
0.6
Sep 24Australia
Retail
Australia
Commercial
Suncorp BankInstitutional
(ex Markets)
New ZealandPacificMar 25
0.0
607.0
623.3
6.6
3.1
0.9
3.2
2.4
Sep 24Australia
Retail
Australia
Commercial
Suncorp BankInstitutional
(ex Markets)
New ZealandPacificMar 25
0.1
Banking loans and customer deposits
Net loans and advances, $b
Customer deposits, $b
21
+3%
+1%+8%
+2%
NZD
+1%+5%
+4%+3%+2%
+3%
NZD
+2%+3%
+3%
+3%
$71b
$107b
$110b
$115b
0.79%
Sep 19
0.87%
Mar 24
0.83%
Sep 24
0.82%
Mar 25
At-call operational deposits and PCM deposit NIM
Banking customer deposit composition and trends
Banking customer deposits, $bInstitutional Payments and Cash Management (PCM)
22
9%
29%
27%
35%
Mar 24
9%
30%
27%
34%
Sep 24
9%
29%
28%
34%
Mar 25
543
607
623
+3%
TransactSavingsTerm DepositsOffset
At-call operational depositsDeposit NIM
1
1.Deposit NIM represents Net Interest Income divided by Net Internal Assets for Payments & Cash Management
2H191H242H241H25
449720703698
Net interest income, $m
Suncorp Bank performance
Suncorp Bank NPAT
1
, $mPerformance since acquisition
2
Customer deposits,
$b
1.1H20 to 2H24 reported numbers are based on Suncorp half year results ended 31 December and 30 June
2.On 18 July 2022, ANZ announced an agreement to acquire Suncorp Bank from Suncorp Group Limited
23
0
50
100
150
200
250
300
1H202H201H212H211H222H221H232H231H242H241H25
62
72
Jun 22Mar 25
48
56
Jun 22Mar 25
NPATUnwinding fair value adjustments
1.2
1.3
Jun 22Mar 25
Net loans and advances,
$b
Customers,
m
Markets performance
Total Markets income – first half, $mCustomer Franchise income composition – first half, $m
24
375
370
190
211
84
55
90
114
Prior 1H avg
(1H22-1H24)
1H25
739
750
Foreign Exchange
Rates
Commodities
Credit and Capital Markets
590
757
869
750
223
356
284
301
59
-1
1H22
36
1H231H24
22
1H25
812
1,149
1,212
1,073
Customer FranchiseBalance SheetDerivative valuation adjustment
+4%
5,542
5,497
5,742
131
57
245
2H24 FX Adj.Wage &
vendor
inflation
Strategic
initiatives
ProductivityTiming of
investments
1H25 ex
impact of
Suncorp
Bank
Suncorp
Bank
1H25
-133
-100
Group operating expenses
1H25 expense movement, $m
FY25 expense expectation, $b
1.Based on ANZ FY24 expenses plus annualisation of the 2 months of Suncorp expenses in FY24 (excluding Suncorp Bank acquisition accounting)
2.As noted at ANZ’s 2024 Full Year results in November 2024 (includes restructuring and M&A)
25
0.2
FY24
reported
~0.9
FY24
pro forma
1
10.7
~11.5
ANZ (ex Suncorp Bank)Suncorp Bank
-1%
FY25 cost
growth
expected to
be similar to
FY24 (+4%)
2
Portfolio quality
Individual provision loss rate
1
, %
1.Source: ANZ analysis of loss rate and risk-intensity data sourced from publicly available company financials. Peer bank categorisation of losses between IP and CP has been aligned to ANZ’s approach to aid comparability
2.1H25 EOP. Risk weighted assets as a % of Exposure at Default. Based on IRB (Internal Rating-Based) exposures, excludes lower risk portfolios (sovereign and mortgages) and NZ (due to consolidated disclosures)
3.Excludes Suncorp Bank. Includes gross impaired assets and hardship accounts. ANZ delinquencies are calculated on a missed payment basis for amortising and interest only loans
26
0.00
0.05
0.10
0.15
0.20
FY20FY21FY22FY23FY241H25
ANZPeer 1Peer 2Peer 3
Risk-intensity
(IRB Corporate, Financial Institution, Retail ex Mortgages)
1,2
Consumer portfolio 90+ days past due
3
, % of GLAs
0.0
0.4
0.8
1.2
Sep
20
Sep
21
Sep
22
Sep
23
Sep
24
Mar
25
Aus. Home LoansAus. Consumer CardsNZ Home Loans
38%
44%
48%
50%
ANZPeer 2Peer 1Peer 3
Portfolio quality
Collective provision (CP) balance, $mPerforming loans coverage (Stage 1 & 2 CP exposures)
2
Non-performing loans (Stage 3 CP & IP exposures)
2
1.Coverage as a percentage of credit Risk Weighted Assets
2.1H25 EOP. Exposures include gross loans and advances, credit commitments and contingent facilities. Based on ANZ analysis of data sourced from publicly available company financials
0.32%
0.36%
0.39%
0.40%
Peer 3ANZPeer 1Peer 2
0.79%
0.86%
1.00%
1.13%
ANZPeer 1Peer 2Peer 3
$8b
$10b$10b
$11b
Non performing exposures (NPE)
NPE as a % of total exposures
27
3,853
4,032
4,247
Sep 22Sep 23Sep 24
Total collective provision
1,989
1,689
602
Mar 25
4,280
4,280
364
304
Mar 25 total
loss coverage
4,948
100% base case
Scenario & weights
Additional overlaysCollective provision balance
Individual provision balance
Regulatory expected loss deduction (Reg EL)
1.13%
Loss coverage
ratio
1
: 1.31%
Capital
ANZBGL - APRA Level 2 Common Equity Tier 1 (CET1) ratio – 1H25 Movement, %
1.Including Markets credit Risk Weighted Assets (volume and CVA) and traded market risk RWA
2.Including the remaining $832m of the $2b share buy-back announced in FY24 and held in ANZGHL
28
12.20
11.78
12.00
0.78
0.22
Sep 24
ANZBGL Group
Cash profitUnderlying RWA
(incl risk impacts)
excl Markets RWA
Markets RWA
1
Net dividendCapital
deductions, RWA
initiatives & others
Capital floor
adjustment
Mar 25
ANZBGL Group
NOHC surplus
capital
(incl remaining
share buy-back)
2
Mar 25
ANZBGL Group
incl NOHC
surplus capital
-0.30
-0.04
-0.55
-0.12
-0.19
Occurred
mostly in
1Q25
Driven by FX
movements in
1Q25 which
unwound in
2Q25
Level 1
12.6
Level 1
12.0
Level 1
12.2
Highlights
NPAT
1
$m%
Strong EPS outcome
PCM at-call operational deposits, $b
Stable Banking ROERecord Suncorp Bank profit
Consistent Markets income
$b1H25 IP loss rate, bps$b
Growing operational deposits
Record revenue
$b
Disciplined cost managementStrong risk outcomes
1.1H24 and 2H24 reported numbers are based on Suncorp half year results ending 31 December and 30 June
29
cents
1H242H241H25
10.35
10.46
11.00
141414
1H242H241H25
118
106
120
1H242H241H25
107
110
115
Mar 24Sep 24Mar 25
192
187
286
1H242H241H25
1H242H241H25
5.22
5.34
5.31
+2%
-1%
Half Yr avg
1H24, 2H24, 1H25
1H25
1.1
1.1
ANZ (ex Suncorp Bank)
4
8
ANZMajor bank peer avg.
2025 Half Year Results
Investor Discussion Pack
Corporate profile, Group & divisional performance
Our history and corporate profile
Employees and
customers
Balance Sheet
ANZ ownership
31
•>43,000 ANZ people across 29 markets
•>11m customers across retail, commercial, institutional
•Assets of $1,303b, incl. $820b in net loans and advances
•Liabilities of $1,230b, incl. $757b in customer deposits
•Market capitalisation of $86b
•Shareholding: ~41% retail; 59% institutional (based on
issued capital)
ANZ traces its origins to the Bank of Cornwall, which opened in Launceston,
Australia in 1828 and commenced operations in New Zealand in 1840.
ANZ is one of the top ten largest listed companies in Australia by market
capitalisation, one of four major banks in Australia, and the largest bank in New
Zealand (by total assets).
All numbers as at 31 March 2025
Our purpose and strategy
Save for, buy and own a
liveable home
Start or buy and sustainably
grow their business
Move capital and goods around
the region and sustainably grow
their business
Improving the financial wellbeing of our people, customers and communities
by helping them make the most of their money throughout their lives;
Supporting household, business and financial practices that improve
environmental sustainability; and
Improving the availability of sustainable and affordable housing options for all
Australians and New Zealanders.
32
Our purpose is to shape a world where people and communities thrive. It
explains ‘why’ we exist and drives everything we do at ANZ, including the
choices we make each day about those we serve and how we operate.
Through our purpose we have elevated three areas facing significant societal challenges
aligned with our strategy and our reach, which include commitment to:
We bring our purpose to life through our
strategy: to improve the financial
wellbeing and sustainability of customers
through excellent services, tools and
insights that engage and retain them, and
help positively change their behaviour.
In particular, we want to help customers:
Supporting our stakeholders
1.Group revenue including gross interest income and other operating income, net of credit impairment charges and non-controlling interests
Our customers & debt (fixed income) investors
Paying interest to our customers and debt investors, enabling us to
provide lending and related services to our customers
Our shareholders
Paying dividends to superannuation funds and other equity investors
and increasing equity to reinvest in the company’s future
Our suppliers and other partners
Technology, property and other products and services to help
support our customers
Government
Paying taxes and Major Bank Levy, supporting our broader community
Our people
Employing >43,000 people, paying salaries and investing in their
skills
68%
7%
4%
10%
10%
1%
Our customers & debt investors
Our people
Our suppliers and other partners
Income tax
Major bank levy
Shareholders
Distribution of
1H25 revenue
1
33
Overview of 1H25 financial performance
34
10%
88%
2%
30%
18%
24%
18%
9%
1%
Banking revenue composition, %
Total revenue composition, %
Banking
•Managed to optimise NIM and ROE
•Lending, trade, deposits, payments services
Markets
•Managed for revenue and to optimise ROE
•Intermediary for risk management options
•Complementary to the Banking business
Group Centre
•Managed for cost efficiency and capital optimisation
•Provides operational support and treasury functions
DivisionsNII %OOI %
Australia Retail91%9%
Australia Commercial91%9%
Institutional59%41%
Institutional (ex Markets)83%17%
Markets8%92%
New Zealand89%11%
Suncorp Bank96%4%
Pacific56%44%
Australia Retail
Australia Commercial
Institutional (ex Markets)
New Zealand
Suncorp Bank
Pacific
Banking
Markets
Group Centre
1H25
$10,995m
1H25
$9,683m
Total operating income & expenses
Total income, $b
35
8.5
8.1
7.9
8.2
8.9
0.9
1.0
0.9
1.0
0.9
1.0
0.9
1.3
1.0
1.0
0.1
1H23
0.4
2H23
0.2
1H24
0.3
2H24
0.2
1H25
10.5
10.410.3
10.5
11.0
FTE by geography, ‘000Total expenses, $b
2.92.9
3.13.1
3.3
0.30.3
0.30.3
0.3
0.8
0.9
0.9
1.0
1.1
0.9
0.9
0.8
1.0
0.9
0.1
1H23
0.1
2H23
0.1
1H24
0.1
2H24
0.1
1H25
5.0
5.1
5.2
5.5
5.7
19.619.6
19.3
21.3
21.5
7.3
7.2
7.2
7.0
6.9
12.9
13.5
13.8
14.1
14.7
Mar 23Sep 23Mar 24Sep 24Mar 25
39.8
40.340.3
42.4
43.1
NIINet fee & comm.Markets OOIOtherPersonnel
Premises
Technology
Other
RestructuringAustraliaNew ZealandRest of the World
Investment spend
Total spend, $m
1.2H24 on a Suncorp Bank adjusted basis
36
1H242H241H25
Investment spend expensed83%80%80%
Investment spend expensed, $m550707612
Capitalised software balance, $m9051,0201,001
Amortisation expense, $m151173148
Avg amortisation period (years)
1
3.03.43.4
199
234
218
55
65
46
104
121
109
71
93
76
232
355
285
1H24
14
2H24
36
1H25
661
882
770
By division
By category
399
580
513
216
241
209
61
46
1H242H24
48
1H25
661
882
770
Growth & Simplification
Regulatory, Compliance & Risk
Asset Lifecycle Mgmt
Australia Retail
Australia Commercial
Institutional
New Zealand
Suncorp Bank
Group Centre & Pacific
Total balance sheet composition
Exposure at default
1
, $bRisk weighted assets, $b
Net loans & advances, $b
Customer deposits, $b
37
6%
12%
44%
6%
32%
Mar 24
3%
7%
11%
43%
6%
30%
Sep 24
4%
7%
11%
45%
6%
29%
Mar 25
1,151
1,260
1,342
4%
15%
40%
11%
30%
Mar 24
6%
7%
14%
37%
10%
26%
Sep 24
6%
7%
13%
38%
10%
26%
Mar 25
433
447
469
16%
39%
18%
27%
Mar 24
8%
14%
37%
16%
25%
Sep 24
7%
14%
39%
16%
24%
Mar 25
641
715
757
Australia RetailAustralia CommercialInstitutionalNew ZealandSuncorp BankGroup Centre & Pacific
17%
29%
9%
45%
Mar 24
9%
15%
26%
8%
42%
Sep 24
9%
15%
26%
8%
42%
Mar 25
715
803
820
1.EAD excludes amounts for the ‘Securitisation’ Basel class. Data provided is on a post CRM basis, net of credit risk mitigation such as guarantees, credit derivatives, netting and financial collateral
Risk adjusted margin
1
Group
Australia Retail
Australia CommercialNew Zealand Institutional
2
1.Suncorp Bank division not separately presented in this slide as there are no prior comparative periods available
2.Excluding Markets
38
Net interest income / Avg credit risk weighted assets (CRWA), %
4.92
5.03
5.26
1H242H241H25
Avg credit risk weighted assets (CRWA), $b
8.70
8.69
8.72
1H242H241H25
3.67
3.70
3.48
1H242H241H25
5.57
6.07
6.54
1H242H241H25
106
104
99
1H242H241H25
36
36
37
1H242H241H25
56
52
49
1H242H241H25
106
104
112
1H242H241H25
5.10
5.25
5.27
1H242H241H25
312
314
335
1H242H241H25
Risk adjusted return
1
GroupAustralia RetailAustralia Commercial
New Zealand Institutional
1.Suncorp Bank division not separately presented in this slide as there are no prior comparative periods available
39
Profit before provisions / Avg total risk weighted assets (RWA), %
Avg total risk weighted assets (RWA), $b
1.81
1.91
1.82
1H242H241H25
4.20
4.40
4.30
1H242H241H25
2.47
2.24
2.20
1H242H241H25
3.23
3.34
3.65
1H242H241H25
130
125
119
1H242H241H25
47
46
46
1H242H241H25
172
168
178
1H242H241H25
68
64
60
1H242H241H25
2.39
2.25
2.28
1H242H241H25
429
438
462
1H242H241H25
Banking
1
- Net loans and advances
Australia Retail, $bAustralia Commercial
2
, $b
Suncorp Bank, $b
New Zealand, NZDb Institutional, $b
1.Banking includes Australia Retail, Australia Commercial, New Zealand, Institutional (ex Markets), Suncorp Bank, and Pacific divisions
2.Prior period divisional comparative information was restated to align with current period presentation.
40
317
327
336
5
Mar 24
6
Sep 24
5
Mar 25
322
333
341
+3%
Home loans
Cards, personal loans & other
58
59
13
13
Mar 24Sep 24Mar 25
71
72
+1%
Home lending
Business lending
242424
40
41
42
Mar 24Sep 24Mar 25
64
65
66
+2%
SME Banking
Diversified &
Specialist Businesses
24
2
107
Mar 24
24
2
108
Sep 24
24
2
111
Mar 25
133
134
136
+2%
Home loans
Other personal
Business
143
18
Mar 24
145
18
Sep 24
155
21
Mar 25
161
163
176
+8%
Corporate Finance
Transaction Banking
Suncorp
Bank
acquired
31 July 2024
Banking
1
- Customer deposits
Australia Retail, $bAustralia Commercial, $b
Suncorp Bank, $bNew Zealand, NZDbInstitutional, $b
1.Banking includes Australia Retail, Australia Commercial, New Zealand, Institutional (ex Markets), Suncorp Bank, and Pacific divisions
2.Payments and Cash Management
41
21
21
20
67
69
73
37
37
37
47
50
53
Mar 24Sep 24Mar 25
172
177
183
+4%
Transact
Savings
Term deposits
Offset
26
24
24
57
58
60
33
34
35
Mar 24Sep 24Mar 25
116
116
119
+3%
Transact
Savings
Term deposits
37
39
21
22
49
52
52
21
39
Mar 24Sep 24Mar 25
109
110
113
+3%
Transact
Savings
Term deposits
107
110
115
43
43
41
1
Mar 24
1
Sep 24
2
Mar 25
151
154
158
+2%
PCM
2
Term deposits
Other
1414
18
19
16
16
7
7
Mar 24Sep 24Mar 25
55
56
+2%
Transact
Savings
Term deposits
Offset
Suncorp
Bank
acquired
31 July 2024
Australia Retail
1.Comparison to Jan 20
2.Everyday Banking, Wealth & Business accounts sold through retail channels (excludes home loans)
3.% of customers (in-use transaction or savings accounts that are eligible for digital access) who have logged on to ANZ App or ANZ Internet Banking in the last 30 days
4.ANZ Classic and ANZ Plus customers
42
Users, ‘000s
3,700
3,800
3,900
4,000
4,100
4,200
Sep
21
Mar
22
Sep
22
Mar
23
Sep
23
Mar
24
Sep
24
Mar
25
Increasing digitally active users
Metrics apply to 1H25 v 2H24 unless stated otherwise
•Continued focus and investment in scam prevention helping protect our customers
•We prevented or recovered ~$90m
4
relating to fraud and scams
•We issued >100k warning messages in relation to crypto payments and high risk
activity
•First Responder team scaled up, handling >140k calls since inception
Sustaining
momentum
•ANZ Plus customers above 1m, with over $21b in deposit FUM
•Continued strong volume growth – household deposits (0.9x system) and home loans
(1.0x system)
•Sustainable productivity enabling a more efficient cost base, with cost growth flat HOH
•Home Loans and Consumer delinquencies remain subdued compared to pre-COVID
1
Deepening
customer
engagement
through
innovation
Enhancing
customer care
and protection
•ANZ Plus Flex Saver launched, with >80k customers benefiting from a high interest
account that provides flexibility to also make transfers and pay bills
•ANZ Plus Home Loans now servicing ~30% of the addressable market, with broker
offering in pilot
•73% of accounts opened through digital channels
2
, with 83% of customers
regularly engaging digitally
3
•Message Us capability enabled closure of >1.5m customer conversations this half
Australia Retail
Sustaining
momentum
Deepening customer
engagement
Enhancing customer
protection
43
•Enhanced Broker tools and improved CRM
for mobile salesforce to further streamline
the home lending process
•Focused on Digital Lending to
accommodate the increasing levels of
customer engagement via this channel; and
enabled video appointments in 30 mins to
next available lenders
•Expanded ANZ Plus Product suite to solve
more customer needs, including expanding
the addressable Home Loans market that
Plus can serve to ~30%
Broker NPS
at Mar-25
+35
1.0x
~2 days
0.9x
Time to First Decision
Deals via BML
1
(1H25 Avg)
Home Loan growth
in 1H25
vs APRA system
Household Deposit
growth in 1H25
vs APRA system
Customers ahead on
home loan
repayments
36%
Plus customers
engaging with
Financial Wellbeing
feature
(1H25 Avg)
83%
•Personalised digital interactions to meet
customer needs via tailored and
personalised content and offers
•ANZ Circle rewarding ANZ VISA cardholders
with priority access to event pre-sales, best
in market Hoyts movie prices and other
exclusive offers
•Expanded Extra Care Hub to answer
increased financial wellbeing assist calls
and proactively contact customers to help
them get their finances back on track
•Development of ‘digital padlock’ technology,
to allow customers to instantly lockdown
their accounts
•Released CallSafe, which offers secure
authentication, enabling customers to verify
they are speaking to ANZ staff, and for staff
to authenticate the customer’s identify
•Joined Biocatch Trust that enables banks to
share intelligence and evaluate the risk of
inter-bank transactions
•Password-less entry into ANZ Plus Web
Banking from mid-2025
1.BML – Broker and Mobile Lender channels
Australia Commercial
Customer relationships, growth and stability
1.Including Australia Commercial customer revenue in Institutional and Australia Retail divisions, noting this is the first reporting period with a full half of Suncorp Bank revenue included in the Group revenue
2.Australia based Transactive Global users
3.2025 Euromoney Private Banking Awards for Australia’s Best Private Bank, Australia’s Best for Succession Planning, and Australia’s Best for Alternative Investments
4.APRA ADI statics for deposits from non-financial businesses for the six months to Mar25
44
•Five consecutive financial halves of >25% ROE
•Revenue on RWA 7.59%, up 14bps vs 1H24
•~$1.80 in deposits for every $1.00 in loans
•~82% of exposures are fully secured
Growth Rates 1H25 vs 1H24 / Mar 25 vs Mar 24
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
Sep
22
Nov
22
Jan
23
Mar
23
May
23
Jul
23
Sep
23
Nov
23
Jan
24
Mar
24
May
24
Jul
24
Sep
24
Nov
24
Jan
25
Mar
25
Drawn FUM $m
Applications #
Momentum in digital solution
GoBiz applications & drawn FUM, indexed data
Sep 22 = 100
Deep customer
relationships
Deposit
strength
Stability and
quality
•22% of total group revenue
1
•~67% of customers have at least one retail product
•~69% of Transactive Global
2
users are Australia Commercial customers
•~8% increase in Private Banking customers with investment FUM reflecting our
award winning
3
customer proposition
•~1.1x system growth for deposits
4
•~7% increase in proportion of eligible SME customer transaction accounts
opened digitally
•$3 customer deposits raised for every $1 of lending extended, contributing to
efficient Group funding
Australia Commercial
Simplifying customer experienceDigital channel uptake Productivity through technology
Responsive service propositionDeepening relationships with
broker introduced customers
45
69%
73%
Mar 24Mar 25
SME Retail loan applications via
streamlined processes
Mar-24Mar-25
1.9x
FUM in digitally opened transaction
accounts
1H241H25
-11%
GoBiz cost to originate
1H241H25
5.3x
Messages closed via Message Us
Broker introduced lending customers
2
with additional products
91%
39%
26%
Transact
Accounts
Home
Loans
Cards
Deposit
1
growth delivering
funding benefits
Mar 24Mar 25
$141bn
$147bn
1.Commercial customer deposits reported in Australia Retail, Australia Commercial and Institutional divisions
2.Commercial customers excluding Private Banking customers, for the 12 months to Feb25
+25%
+8%
+3%
InstitutionalCommercialRetail
New Zealand
1.McCulley Research (first choice or seriously considered); six month rolling average March 2025
46
•The HOWTWO Small Business Programme continues to grow with almost 7,000
customers signed up, demonstrating our commitment to support small businesses
•ANZ Agri Uplift Finance has provided over $230 million discounted lending to farmers
striving to improve farming practices and increase business resilience since launch in
November 2024
•ANZ's Good Energy Agri Loan is available to farmers to improve the energy efficiency of
homes on rural properties
•In the six months to March 2025, more than $15 million in fraud and scam transactions
were prevented. ANZ cases were down 9% while total ANZ customer losses fell by 7%
#1
Market Position
Brand Consideration
1
#1
FY16FY18FY20FY22FY241H25
50
51
52
54
54
56
Brand Consideration
1
,%
Market strength
Digital
engagement
Customer
engagement
•#1 market position in New Zealand for home loans, Agri lending and KiwiSaver
•Four Bank of the Year Canstar Awards: Small Business, Business Credit Cards,
Agribusiness, and Most Satisfied Customers – Small Business Merchant Services
•Best Private Bank in New Zealand at Global Private Banking Awards
•Approximately 1.8 million digitally active customers
•Over one million Open Banking payments totalling $135 million have been made to
date, enhancing customer convenience and financial innovation
•FastPay Tap supports over 1,200 active accounts, driving over $740k in monthly
transactions through its seamless contactless payment solution for businesses
New Zealand division
Balance sheet and financial strength
Housing lending
1
Business lending
2
Agri lending
Credit quality
Exposures
3
Balanced Financial Performance
3
47
NZDb
NZDb
NZDb
81.4
83.7
85.2
87.2
25.9
25.8
25.9
26.2
Sep 23Mar 24Sep 24Mar 25
107.3
109.5
111.1
113.4
Owner occupiedResidential investment loan
3.9
3.9
4.0
4.1
3.0
2.7
2.6
2.6
Sep 23Mar 24Sep 24Mar 25
6.9
6.6
6.6
6.7
Other lendingCommercial property
8.9
8.7
8.8
8.4
4.2
4.2
4.3
4.2
2.0
Sep 23
2.1
Mar 24
2.1
Sep 24
1.9
Mar 25
15.1
15.0
15.2
14.5
DairySheep, cattle and grainOther
1.Housing includes business loans secured by residential properties
2.Business excludes business loans secured by residential properties
3.Credit risk weighted assets impacted by the implementation of the new Agri credit model in Mar 24 and a mortgage credit model change in Sep 24
Total provision charge/(release), NZDm
21
14
31
23
19
-28
2H23
-10
1H24
-5
2H241H25
40
4
26
-5
Individual provisionCollective provision
Credit risk weighted assets (CRWA) EOP &
intensity, NZDb
63
60
5454
41.9%
39.3%
34.9%
34.6%
Sep 23Mar 24Sep 24Mar 25
CRWATotal CRWA/EAD
Net interest income / Avg credit risk weighted
assets (CRWA), %
2H231H242H241H25
5.42%
5.57%
6.06%
6.54%
Institutional
1.Source: Coalition Greenwich Large Corporate & Institutional Relationship Banking surveys (Australia, New Zealand) - #1 Relationship Strength Index
2.Source: Coalition Greenwich Voice of Client: Asian Large Corporate Banking study– #1 Relationship Quality
3.Source: Coalition Greenwich Large Corporate & Institutional Transactional Banking surveys (Australia and New Zealand) - #1 Lead Bank Penetration for Transactional Banking
4.Source: Coalition Greenwich Foreign Exchange Corporates survey (Australia) - #1 Foreign Exchange Market Share
5.Includes ~$12m in ‘other’ not shown on chart
•Well diversified business across both product & region
•Resilient credit quality, with 78% of exposures investment grade
•Moderate downside to lower interest rates
Revenue composition
35%
20%
6%
3%
4%
22%
10%
Payments & Cash
Management $898m
(26%)
Trade & Supply
Chain $244m
(7%)
Institutional
1H25
revenue
5
$3,419m
Markets
$1,073m (32%)
Corporate Finance
$1,192m
(35%)
Core Trade
Global
Guarantees
PCM (Primary)
PCM
(Platform services)
Markets
(Franchise)
Markets
(Non-Franchise)
Corporate Finance
Leading
institutional
franchise
•#1 Institutional Bank across Australia, New Zealand andAsia
1,2
for
relationship strength and quality
•Deep, long-term relationships with core customers who value our
network and capabilities (~60% customers use multiple products)
•Operating in 29 markets including 13 across Asia
Unique markets
& payments
capability
Sustainable
financial
returns
•#1 Transaction Banking Lead Bank and market penetration
(AUS/NZ)
3
•#1 FX penetration and market share with Australia
corporates
4
with digital comprising ~90% of volume
48
Institutional
Summary
Customer franchise revenue
1
, $bCore lending
2
, $bRisk intensity (ex Markets)
Return on equity, %Operational / at-call deposits, $bIP loss rate
4
%
49
1.1
1.4
1.4
1.41.4
1.3
1.6
1.8
1.6
1.7
2H192H231H242H241H25
2.4
3.0
3.2
3.0
3.1
LendingNon-lending
141
166
162
168
175
1.52%
1.32%
Sep 19
2.27%
1.50%
Sep 23
2.36%
1.51%
Mar 24
2.41%
1.51%
Sep 24
2.28%
1.44%
Mar 25
Lending volume (fx adjusted)
Lending risk adjusted NIM (%)
3
Lending margin (%)
3
72%
52%
Sep 19
78%
40%
Sep 23
78%
40%
Mar 24
77%
41%
Sep 24
78%
41%
Mar 25
235
271
260260
282
Investment grade (EAD)
Non investment grade (EAD)
Credit RWA/EAD
9%
13%
15%
13%
13%
2H192H231H242H241H25
71
106
107
111
115
0.79%
Sep 19
0.87%
Sep 23
0.87%
Mar 24
0.83%
Sep 24
0.82%
Mar-25
At-call volume (fx adjusted)Deposit NIM (%)
3
FY11-17
Avg
FY18-24
Avg
1H242H241H25
0.32%
0.01%
-0.05%
-0.02%
0.02%
1.Excludes: Balance Sheet Trading and Derivative Valuation Adjustments
2.Represents Corporate Finance and Trade & Supply Chain
3.Margins represents half year average
4.Represents Individual Provision charge / (release) divided by average gross loans and advances
Institutional
Margins
Risk adjusted NIM
4
(ex Markets)– by geography, bpsNIM
1
drivers (ex Markets), bps
Lending & Deposit NIM
1
, bps
50
2H24Funding mixLower cash ratesCompetition1H25
236
-4
-5
-3
224
143
148
150
151151
144
2H221H232H231H242H241H25
Lending NIM
2
60
82
87
87
83
82
2H221H232H231H242H241H25
Deposit NIM
3
1.NIM: Net Interest Margin (Net Interest Income divided by Average Interest Earning Assets)
2.Lending NIM represents Net Interest Income divided by Average Interest Earning Assets for Corporate Finance and Trade & Supply Chain
3.Deposit NIM represents Net Interest Income divided by Net Internal Assets for Payments & Cash Management
4.Risk adjusted NIM represents Institutional ex Markets net interest income divided by average Credit Risk Weighted Assets
InstitutionalAustralia & PNG
New Zealand
International
240
294
351
367
370
348
2H221H232H231H242H241H25
332
355
347
371
384
371
2H221H232H231H242H241H25
253
292
360
373
364
343
2H221H232H231H242H241H25
188
274
341
355
373
345
2H221H232H231H242H241H25
Markets Income
1.Excludes: Balance Sheet trading and derivative valuation adjustments
51
Markets historical monthly income, $m
Customer Franchise income
1
, $m
•1H25 revenue of $1,073m was in line with long run through-the-cycle performance
expectations for the Markets business
•Over the last 10.5 years, monthly revenue has followed close to a normal distribution, with
average monthly income ~$172m with a standard deviation of ~$46m. This stability is
driven by a corecustomer base which deals with ANZ Markets on a regular basis, and the
revenue and risk management diversification benefits provided by theMarkets franchise’s
four business lines and presence in multiple geographies
324
407
394
370
181
158
232
211
80
118
112
125
114
53
32
1H221H231H24
55
1H25
590
757
869
750
381
370
352
111
189
164
120
30
53
2H22
35
76
2H23
45
2H24
575
670
681
First half
Second half
Foreign ExchangeRatesCommoditiesCredit and Capital Markets
Historical monthly revenue distribution (FY15-1H25)
Institutional
Payments and cash management
PCM deposit volumes & margins
1
Change vs
pre-pandemic
1H25 vs 2H19
Volumes
+$54b, +53%
Balance, $b
Balance by rate sensitivity
(excluding term deposits)
13
102
Mar 25
115
Zero/low-rate deposits
Contracted or negotiated
Customer rate
changes largely
in-line with cash
rate changes
(Minimal margin
impact from rate
cuts)
~7
~4
~2
Mar 25
~13
USDNZDAUD
Low-rate deposits
where the customer
rate does not change
in line with cash rate
changes (margin
impact from rate cuts)
The relationship between cash rates and deposit margins is not linear and can be impacted
by changes in deposit mix and deposit price competition
48
7474
77
79
9
46
43
44
41
0.5
0.6
0.7
0.8
0.9
0
100
200
300
Sep 23
0.87%
16
17
Mar 24
0.83%
16
17
0.79%
0.82%
18
18
Mar 25
102
152
150
154
156
31
14
Sep 19
0.87%
16
16
Sep 24
Operational / at call (AUPNG)
Operational / at call (NZ)
Operational / at call (INTL)
Term Deposits
Deposits NIM
203
195
196
198
200
449
727
720
703
698
0.0
0.5
1.0
0
500
1,000
2H192H231H242H241H25
652
922
916
901
898
PCM revenue
$m
Margins
+3bps
OOINII
1.Deposit NIM represents Net Interest Income divided by Net Internal Assets for Payments & Cash Management
NII
+$0.2b, +55%
OOI
Broadly flat
Zero low-rate deposits
(by currency)
52
Institutional
Digital platforms - scalable operating leverage, capital light
Payments
1
mmPlatform cash mgt. accounts
3
, kNPP Agency, m
Direct integration payments
1,2
Real time payments
1,2
Client monies
53
171
295
320
341
358
1H211H221H231H241H25
+5%
•Payments made by customers to their
suppliers and employees through our
digital channels.
•Covers payments initiated viaWeb &
Mobile, direct integration with ANZ or via
agency agreements whereby ANZ clears
payments on behalf of other banks.
64
99
124
138
161
1H211H221H231H241H25
+17%
•Automated payments initiated via direct
integration between the banks and our
customers’ systems.
•Enables a high degree of automation and
control for customers, replacing manual
processes with a scalable alternative that
removes the need for human
intervention.
8
15
20
24
29
1H211H221H231H241H25
+20%
2.5
3.7
3.9
4.0
4.1
Mar 21Mar 22Mar 23Mar 24Mar 25
•A service whereby ANZ clears & settles
real-time payments for customers of
Appointer banks on their behalf.
•Powering other banks’ customers with
real-time payments.
•Deposit management for entities holding
funds on behalf of their clients.
•Supporting CX in provision of client
money accounts to activate
services/transactions.
Deposit Balance
4
, $b
231312411400467
17%
Platform initiatives are enabling additional revenue opportunities within ANZ Payments & Cash Management
1.Number of payments
2.Subset of total payments
3.Reduction between March 2023 and March 2024 includes one-off bulk closure of ~45k inactive accounts in 1H24. 1H25 increase is due to the release of our new, more scalable cash management solution, ANZ Cash Management
Central (ACMC).
4.Total deposit balances in Australia virtual client monies accounts
Institutional
Financial metrics
1.Risk adjusted NIM represents Institutional (ex Markets) net interest income divided by average Credit Risk Weighted Assets
Total InstitutionalAus. & PNGNew ZealandInternational
$’m
1H25 vs 2H24vs 1H241H25vs 2H24vs 1H241H25vs 2H24vs 1H241H25vs 2H24vs 1H24
Income
3,4193%-4%1,6743%0%461-3%-8%1,2846%-8%
Expenses
1,4612%1%7486%5%115-1%2%598-2%-4%
Total provision charge
28(Lrg)(Lrg)61(Lrg)(Lrg)0(Lrg)-99%(32)(Lrg)0%
Cash profit
1,3803%-9%588-9%-12%249-7%-4%54328%-9%
Customer deposits ($b)
29311%17%1082%4%253%2%16019%32%
Operational / at-call deposits
1155%8%792%8%183%5%1811%11%
Net loans and advances ($b)
2173%5%1232%5%16-2%-7%787%8%
RWA EOP ($b)
1787%4%893%0%21-1%-4%6915%13%
Risk adjusted NIM ex Mkts
1
(%)
3.48%-0.22%-0.19%3.43%
-0.21%-0.30%3.71%-0.13%0.0%3.45%-0.28%-0.10%
ROE (%)
13%0%-2%11%-1%-2%14%-1%0%16%2%-3%
54
Suncorp Bank
1. Based on six month moving average customer and broker NPS survey outcomes.
2. NPS ranking based on core competitor set six month moving average Business Banking NPS for customers <$40m turnover provided by RFI Global.
3. NPS ranking based on six month moving average Personal Banking MFI NPS provided by RFI Global.
4. Based on Suncorp Bank customers (in-use transaction or savings accounts eligible for digital access) who have logged into a digital channel in the last 30 days.
•Capitalising on the improvement in credit spreads and access to deeper, more
diversified funding pools as part of ANZ
•Continued benefits from alignment in credit risk policy supporting portfolio margin
outcomes and sustainable growth
•Developing talent pathways to enable cross-Group opportunities and retain key staff
Metrics apply to 1H25 unless stated otherwise
Improvement in Direct Home Lending Onboarding NPS
Improvement in Broker NPS
Improvement in Digital Deposit Account Opening NPS
Jun 22Mar 25
+39.0
+86.7
+47.7
Jun 22Mar 25
-10.7
+56.6
Jun 22Mar 25
+37.9
+46.6
+67.3
+8.7
Growing
momentum
Delivering for
customers
Integrating into
the ANZ Group
•Solid growth in retail customer deposits, providing sustainable funding and supporting
margin outcomes
•Home lending momentum continues to improve since acquisition. Q2 applications
were over 40% higher than PCP with growth of over 1.6 times system for the month
of March 2025
•Business lending returned to growth in Q2, with pipeline improving for the second half
despite significant competition
•Sustained focus on customer outcomes, with consistently high Home Lending Broker
and Customer Onboarding NPS
1
and ranked #2 Business
2
Customer NPS and #5
Personal Banking MFI NPS
3
•Continued to protect customers through investment in fraud and scam prevention
capability and customer education, enabling a reduction in FYTD fraud losses of over
70% year on year
•90% of new retail transaction accounts opened digitally, over 75% of customers
regularly engaging digitally
4
55
Suncorp Bank
Balance sheet and financial strength
Home lending, $bBusiness lending, $bCustomer deposits, $b
Gross impaired assets
as a % of gross credit exposures
90+ days past due (DPD)
1
Provisioning coverage
1.Sep-24 90DPD has been restated to include gross impaired assets and to align to ANZ reporting methodology
56
18
19
16
16
7
7
14
14
Sep 24Mar 25
55
56
0.61%
0.68%
0.22%
0.28%
Sep 24Mar 25
0.83%
0.96%
Retail lendingBusiness lending
5
5
5
5
3
3
Sep 24Mar 25
13
13
AgribusinessCommercialSMESavingsTerm DepositsOffsetTransact
Sep 24Mar 25
0.07%
0.13%
40
41
18
18
Sep 24Mar 25
58
59
Owner OccupiedInvestor
0.33%
Sep 24
0.02%
0.33%
Mar 25
0.33%
0.35%
Collective ProvisionIndividual Provision
2025 Half Year Results
Investor Discussion Pack
Group Treasury
ANZ Bank Group key capital ratios (%)Mar 24Sep 24Mar 25
Level 2 CET1 capital ratio
13.512.211.8
Level 2 CET1 HoH mvmt
+16 bps-130 bps-42 bps
Additional Tier 1 capital ratio
1.91.81.6
Tier 1 capital ratio
15.414.013.4
Tier 2 capital ratio
6.56.57.0
Total regulatory capital ratio
21.920.620.4
Leverage ratio
5.44.74.4
Risk weighted assets
$433b$447b$469b
Level 1 CET1 capital ratio
13.312.612.0
Level 1 risk weighted assets
$371b$372b$396b
Basel Harmonised ratios (%)
Leverage ratio
6.05.24.9
Level 2 CET1 capital ratio
19.717.617.0
ANZ Group capital
ANZ Bank Group capital composition
1
, $b
1.Capital composition excludes additional RBNZ compliant capital (currently $2.9b) in ANZ New Zealand
2.Mar 25 Common Equity Tier 1 (CET1) of $56.8b includes $1.0b of NOHC surplus capital and $0.6b of Non-Bank Group Capital. The NOHC surplus capital of $1.0b includes the $0.8b of the remaining share buy-back
58
59.3
56.3
8.3
8.2
7.4
28.2
29.2
32.8
Mar 24Sep 24
56.8
2
Mar 25
95.8
93.7
97.1
Common Equity Tier 1 (CET1)AT1Tier 2
Capital ratios on a Basel Harmonised basis
Level 2 capital ratio (APRA vs Basel Harmonised)
1
, %
1.IRB capital floor has not been adjusted in Basel Harmonised ratios
59
13.5
19.7
12.2
17.6
11.8
17.0
1.9
2.5
1.8
2.3
1.6
2.0
6.5
8.5
6.5
8.3
7.0
8.9
APRABasel
Harmonised
APRABasel
Harmonised
APRABasel
Harmonised
21.9
30.7
20.6
28.2
20.4
27.9
Common Equity Tier 1Additional Tier 1Tier 2
Mar 24Sep 24Mar 25
APRA Level 2 CET1 ratio – 31 March 202511.8%
Australia
Residential
Mortgages
APRA requires cohort specific multipliers (i.e. 1.4x for Owner
Occupier Principal and Interest & 1.7x for all Other mortgage types)
and other adjustments
+1.00%
IRB Scaling
Factor
APRA requires a scaling factor of 1.1 times for all RWA+0.83%
New Zealand
Exposures
APRA requires the use of Reserve Bank of New Zealand (RBNZ)
capital rules to calculate Credit RWA for all New Zealand subsidiary
credit exposures, which are generally more conservative than the
Basel rules
+0.78%
Equity
Investments
& DTA
APRA requires 100% deduction from CET1+0.90%
IRRBB RWAAPRA includes IRRBB in Pillar 1 RWA+0.60%
Non-NZ Non-
Retail Loss
Given Default
APRA specifies higher LGD floorsfor other general corporate
exposures (50%)but has lower floors for sovereigns (5% or 25%)
and utilities that provide essential services to the economy (25%)
+0.49%
Other Risk
Weighted
Assets
APRA require 1.5x scalar for IPRE exposures and conservative
supervisory slotting risk weights for project, object and commodity
finance
+0.30%
Other Capital
APRA require deductions from CET1 for capitalised expenses &
deferred fee income
+0.34%
Basel Harmonised CET1 ratio – 31 March 202517.0%
Regulatory capital
ANZ Bank Group capital
APRA Level 2 Common Equity Tier 1 (CET1) ratio – 1H25 Movement, %
60
L1 12.6
L1 12.2
L1 12.0
•Level 2 CET1 ratio of 11.8% (Level 1 (L1) CET1 ratio of 12.0%). This is above APRA’s expectation of an 11% - 11.5% operating range
•Underlying RWA growth (excluding Markets) primarily driven by lending growth in Institutional, Australia Retail and New Zealand divisions, partially offset by lower IRRBB RWA
•Markets RWA increase includes exposure growth due to weaker AUD/USD in 1Q25, partially offset by a normalisation of short-dated derivative exposures in 2Q25 and lower Traded Market Risk
•The capital floor increase occurred mainly in 1Q25, as volume growth increased standardised RWA more than IRB RWA and IRRBB RWA was lower
ANZ Group dividend
•Interim dividend of 83 cents per share partially franked at 70%, ~69% Half Year DPOR on Cash NPAT basis
12.20
11.78
12.00
0.78
0.22
Sep 24
ANZBGL Group
Cash ProfitUnderlying RWA
(incl risk impacts)
ex Markets RWA
Markets RWA
1
Net dividendCapital
deductions, RWA
initiatives & others
Capital floor
adjustment
Mar 25
ANZBGL Goup
NOHC surplus
capital &
remaining share
buy-back
2
Mar 25
ANZBGL Group
incl NOHC Capital
-0.30
-0.04
-0.55
-0.12
-0.19
1.Including Markets CRWA (volume and CVA) and Traded Market Risk
2.Including the remaining $832m of the $2bn share buy-back announced in FY24 held in ANZGHL
Excluding
IRB Floor
12.09
12.33
12.31
Regulatory capital – risk weighted assets
Risk weighted assets – Level 2, $b
Risk weighted assets – IRRBB, $b
61
446.6
451.2
469.0
4.6
13.2
1.7
0.8
7.2
Sep 24FX impactsSep 24
FX adjusted
Divisional lending
ex
[TRUNCATED]
=== IR PAGE TRANSCRIPT: Transcript of Investor Presentation ===
ANZ Half Year Results Presentation
8 May 2025
Page 1 of 32
Start of Transcript
Jill Campbell: Good morning, everyone. I’m Jill Campbell, ANZ’s Head of Investor
Relations. Thank you for joining us for the presentation of our first half financial year 2025
results, being presented from our offices in Melbourne which stand on the lands of the
Wurundjeri people. On behalf of the ANZ team speaking today, I pay my respects to elders
past and present and also extend those respects to any Aboriginal and Torres Strait
Islander people joining us for today’s presentation.
Our result materials were lodged this morning with the ASX and also are available on the
ANZ website in the shareholder centre. A replay of this presentation including Q&A will be
available on our website shortly after this session concludes. The results, presentation
materials, and the presentation being broadcast today may contain forward-looking
statements or opinions and, in that regard, I draw your attention to the disclaimer in the
front of the results slide pack.
Our CEO, Shayne Elliott, and CFO, Farhan Faruqui, will present for around half an hour.
After that, we’ll go to Q&A and I’ll talk about the procedure for that when we get to it. But
ahead of that point, a reminder that if you do want to ask questions, you can only do that
on the phone. With that, over to you, Shayne.
Shayne Elliott: Great, thank you, Jill, and good morning to everybody. As you know, today
will be my 18
th
and last result presentation as Chief Executive and it’s pleasing to be able
to finish with such a strong result with the foundations in place for a stronger future. Three
significant changes have occurred since we last reported.
First, we announced a new Chief Executive and Nuno Matos will join ANZ this Monday,
bringing over 30 years of international banking experience. Second, ANZ entered into an
enforceable undertaking with APRA for matters relating to non-financial risk management.
Now, over the past nine years, we've de-risked the bank both strategically and financially
with credit risk now peer leading, and we’re committed to making non-financial risk an
equal area of strength.
The third change is that we are experiencing a more disruptive era of geopolitics.
Sweeping US trade policy changes and global supply chain disruptions are driving volatility
and unpredictability, and for now, we’re operating in a less globalised world. Trade flows
are interrupted, customers forced to adjust strategies, and capital is more cautious.
ANZ Half Year Results Presentation
8 May 2025
Page 2 of 32
Now, while we focus on risk settings in the short-term, global economic and market
activity is likely to realign rather than decline, and we’ll continue to follow our customers
and facilitate that realignment as they move their capital, rethink their manufacturing
base, or change their supply chains.
Closer to home, this realignment is impacting confidence, but I remain positive. Clearly,
many families and businesses will face tougher times, but our data tells us that Australian
and New Zealand households on average are remarkably robust with some of the strongest
balance sheets in the world and not only driven by strong house prices. That resilience has
been called on several times in recent years and it may be called on again.
Governments on both sides of the Tasman retained fiscal and policy flexibility and there is
still room for interest rates to decline. Unemployment remains low by historical standards
and likely to remain so. Now, I'm not suggesting that things are easy, but there are many
reasons to be confident. Our repositioning of ANZ over the past nine and a half years has
better prepared us for times like these. With our uniquely diversified business and strong
balance sheet, we’re well positioned to manage risk, support customers under stress, and
grow as opportunities arise.
Now, turning to highlights from the half. 2023 and 2024 were our two strongest financial
results ever, and today we’re announcing our highest ever half year revenues. We again
saw the benefits of our targeted and diverse portfolio, including record organic asset
growth in our banking businesses, the best ever revenues from our debt capital markets
business, a solid performance within global markets overall in line with prior guidance and
history, the New Zealand retail and small business division delivering another consistent
performance in a really competitive market and despite several interest rate reductions, an
outstanding profit growth at Suncorp Bank in stark contrast to its regional peers, and the
strongest ever result from our North American and European geographies.
Costs were well managed again despite maintaining a strong investment pipeline and
productivity is now a core strength of ANZ. Credit costs remain benign and peer leading,
reflecting years of de-risking and cautious customer selection. Earnings per share are the
highest since the first half of 2023 when margins hit their cyclical peak and supporting a
dividend in the half of $0.83 per share franked at 70%. Now, overall, these results reflect
continued momentum across all divisions and the benefits of a consistent strategy
combined with sensible targeted investment.
ANZ Half Year Results Presentation
8 May 2025
Page 3 of 32
Focusing on the long-term, this was an important half with respect to our dual platform
strategy. We’ve invested around $2.8 billion in platforms over the last five years and the
investments in our two key platforms, ANZ Plus and Transactive Global, are delivering
now. In the first half, ANZ Plus hit new highs. We gave the market an in-depth update on
Plus just a few weeks ago and since then, we've welcomed our one millionth customer and
crossed through $21 billion in deposits. Retail customers using Plus have an average
savings and transactional deposit balance across ANZ platforms of over $31,000, versus an
average balance of less than $16,000 for those that only use ANZ Classic.
Now, with the introduction of tiered savings products on Plus, we now generate a margin
on Plus deposits well above 100 basis points. More than half of ANZ Plus customers
consider ANZ their main bank and almost 40% are actively engaging with financial
wellbeing features, like setting savings goals or using cash rewards or round ups, meaning
they’re more actively using ANZ, staying longer with us, and sharing more data with us.
They also report that they're having an exceptional experience with our App and Play Store
ratings sitting at 4.8 and 4.7, and we’re doing all of this at a 45% lower cost to acquire
and a 35% lower cost to serve.
We’re also picking up the pace. Over three years, we’ve increased our tech release
cadence almost five-fold, from an average of eight to now 40 releases per day. That means
every 30 to 45 minutes, we’re improving security, services, and customer experience.
Now, in parallel, we continue to scale our core platform for large corporate customers,
Transactive Global, or TG for short.
Now, TG is like Plus but for wholesale customers. It’s web based and able to connect
directly into our customers’ tech stack, spanning three key products: loans, market, and
transaction banking. It is the only true Trans-Tasman platform of its peers and we have a
clear lead in Australian direct integrations with a 16-point advantage over our nearest
competitor. Total direct integrations were up 11.3% this half versus the same period last
year. Overall, TG customers grew almost 10% PCP, driving a 5% increase in payment
volumes while holding the cost per transaction flat.
Now, as you know, we are the largest bank provider of payment platforms to other
financial institutions in our home markets, banks, brokers, and funds. These platforms
perform very strongly, with NPP agency volumes up 20% versus a year ago and client
monies accounts up 17%. Industry leading innovations like PayTo, ANZ’s Digital Key, and
our API developer portal will underpin future growth. The combination of long-term
underlying volume growth and a return on regulatory capital for cash management alone
ANZ Half Year Results Presentation
8 May 2025
Page 4 of 32
of over 80% means that TG has been and will continue to be key to institutional’s
transformation.
In addition to scaling dual platforms, our other priority has of course been Suncorp Bank,
which reported an outstanding performance relative to regional peers. Suncorp Bank today
is better than the bank we agreed to buy just three years ago. The team is engaged, the
business is growing, and integration plans are well advanced. A bank owned bank has
advantages and Farhan will speak more to the specifics around synergies shortly.
So, looking ahead, ANZ’s priorities are clear. First, resolve non-financial risk issues and
ensure those changes are embedded. Second, grow our dual platforms, underpinning long-
term competitive advantage. Third, run Suncorp Bank well, deliver the synergies, and
prepare for migration. Finally, managing a smooth CEO transition. The team is incredibly
focused on delivering all four. So I’ll now hand over to Farhan to talk through the financials
in detail.
Farhan Faruqui: Thank you, Shayne, and good morning, everyone. We have continued to
execute well, as evidenced by strong revenue and cash profit growth at 5% and 12%
respectively. This reflects our focus on cost discipline, risk management, return accretive
growth, and ensuring a robust capital and balance sheet position. Importantly, you can see
the ongoing benefits to our shareholders are for well-performing, diversified portfolio in
this result.
In this half, we have delivered our highest cash earnings per share since the first half of
financial year ’23, up 13%, and return on equity up by almost 100 basis points to 10.2%.
Continuous improvements in capital efficiency with risk intensity declining 1% and
consistent growth in NTA per share over the last decade up a further $0.54 in the half.
At our FY24 results, we framed our discussion around our two main businesses: banking
and markets. I’ll use that framework again today as it aligns with how we think about the
Group. In the half, both the banking and markets businesses grew across all key metrics:
revenue, profit before provisions, cash profit, and return on equity. Our banking business
delivered a 5% increase in revenue and maintained a return on equity of 14%, despite
lower seasonal fee income in the Australia retail division.
Our markets business achieved a third consecutive first half income greater than $1 billion
and we saw increased levels of customer activity post the US elections. In addition, we
operate a group centre which manages shared services and centrally held capital. We
ANZ Half Year Results Presentation
8 May 2025
Page 5 of 32
have continued to deliver further efficiencies here, generating an improvement in PBP and
NPAT in the half.
Our businesses collectively generated $11 billion in income, marking the highest income
for the Group in a single half year period. This result highlights both the strength of our
franchise and the step change in our earnings and balance sheet from the first full half of
Suncorp Bank's earnings contribution.
Now, before I move to our banking business performance, I'll quickly draw your attention
to some Suncorp Bank purchase price allocation adjustments which are covered on page 8
of our first half consolidated financial report.
In line with accounting standards, we are required to recognise a number of acquisition
related adjustments with the corresponding reduction to goodwill. These adjustments are
then unwound through the P&L over time. Accounting adjustments of this type are
customary in bank M&A transactions and they were not material to the Group result in the
half.
Turning to our banking performance in more detail. Macro factors, such as cash rate
reductions and higher funding costs, together with seasonal impacts drove around $200
million in headwinds in the half.
Against that backdrop, we grew revenue 5% through a combination of balance sheet
growth across all divisions, revenue growth across Australia, New Zealand, and
international, capital held for Suncorp Bank being deployed into the business for a full half,
and continued improvement in risk adjusted margins.
In addition to revenue growth, our strong cost and capital management allowed us to
deliver a stable banking ROE at 14%. I'd particularly like to highlight some consistent
divisional ROE outcomes.
Institutional and commercial ROE at 13% and 25% respectively. Within our institutional
division, our international business delivered a 16% ROE. Pleasingly, despite multiple cash
rate reductions, the New Zealand division continued to deliver stable returns.
Moving to NIM. Headline NIM reduced by two basis points in the half, with the operational
drivers similar to that of the banking business. The net impact of markets and liquids was
more than offset by the inclusion of Suncorp Bank.
ANZ Half Year Results Presentation
8 May 2025
Page 6 of 32
Banking NIM in total reduced by six basis points. However, half of the reduction was
primarily the full impact of six months of Suncorp Bank and higher remediation costs.
Suncorp Bank's margins are lower than our banking NIM given the mix of their businesses.
The remaining three basis points were driven by operational impacts, largely from deposits
and funding. As with our peers, we saw a combination of lower deposit margins, including
from cash rate reductions, along with higher wholesale funding costs due to increased
domestic short term spreads and the roll off of the last of the TFF in second half 2024.
The asset and funding mix impact was primarily driven by the institutional division where
asset growth was stronger than deposit growth in the first quarter. This moderated in the
second quarter.
Our capital and replicating portfolio delivered a benefit of two basis points. Our hedging
strategy has been at the longer end of our three to five year range and this provides
further protection as rates fall. All else being equal, the portfolio is expected to remain a
tailwind over the next two years.
Lending and deposit volumes were both up 3% in the half with all divisions contributing.
We had record levels of organic lending growth and this demonstrates that we have
supported our customers as well as created value for our shareholders.
In Australia, our retail and commercial businesses self-funded lending growth with
customer deposits up $10.6 billion. Our total Australian home loan portfolio is now almost
$392 billion, with a market share of 16%.
In the half, the Australian retail division grew at system, with Suncorp Bank at 0.6 times
system. However, as we exited the first half, Suncorp Bank had returned to above system
growth.
While elevated in the first quarter, institutional lending volumes moderated in the second
quarter. On an FX adjusted basis, core lending which excludes markets, grew 4%. While
the economic environment has been volatile, our institutional customers have reacted
patiently and largely adopted a wait and see approach with no material change in their
borrowing or deposit behaviours.
In our retail and commercial businesses, we have seen conservative behaviour in the form
of good deposit flows. Throughout financial year '24, deposit mix impacts began to slow
and that trend has continued this half with growth coming largely from at-call savings
products.
ANZ Half Year Results Presentation
8 May 2025
Page 7 of 32
We saw continued growth in core operational deposits in institutional. While there was a
small margin decline, net interest income was broadly flat and has benefited from the
volume uplift. The PCM business has maintained a return on equity of greater than 80%,
with deposit volumes up 4% and payment volumes up a further 5%.
Turning to Suncorp Bank. The business is operating well and since announcing the
acquisition in mid-'22, it has grown scale, with customer numbers up by 5% to 1.3 million
and customer deposits and lending over 16% higher and continuing to grow.
In its first full half under our ownership, Suncorp Bank delivered a record cash profit of
$286 million. Excluding the purchase price adjustment in this period, NPAT was $251
million, in line with its previous record profit.
We have achieved $20 million in cost synergies since completion. Through property
savings, optimising vendor spend, removing duplication in investment, and operating
model changes. We will continue to provide further updates on synergies at subsequent
results presentations.
Markets income was $1.07 billion for the half, with customer franchise income in line with
our usual first half experience. Three particular highlights stood out in the half. As
Shayne said, firstly, debt capital markets delivered record fee income from supporting our
corporate and financial institution customer issuances.
Second, FX and repo volumes continued to increase, powered by our international
franchise. Finally, second quarter income this half was approximately 15% higher than
historical second quarter averages which reflects improving momentum in the half.
Higher volatility and some financial markets disruption leads clients to implement, expand,
or refine their hedging strategies. Our markets offering, including leading FX and rates
propositions across our global network has consistently enabled us to monetise flows in
these conditions.
As you know, we introduced Suncorp Bank into our cost base from August last year. While
incurring the full impact of Suncorp Bank expenses this half, we contained total cost
growth to 4%.
Excluding Suncorp Bank, Group expenses reduced 1% for the half. To put this into
context, we are integrating a large transaction, continuing to deliver on our dual platform
strategy, and progressing our regulatory agenda all within this cost envelope.
ANZ Half Year Results Presentation
8 May 2025
Page 8 of 32
To achieve this, we have delivered $133 million in productivity in the half. Largely from a
combination of technology savings from simplification, cloud migration, and
decommissioning assets, optimisation of our international footprint and property costs, and
reshaping our workforce which limited personnel cost growth, ex Suncorp Bank, to 1.5%.
Finally, continuing to carefully manage vendor costs. So once again, we were able to
partially offset inflation through an ongoing sharp focus on productivity. We have now
successfully delivered $1.9 billion in cumulative productivity savings since 2019.
In addition to productivity, we also benefited from a seasonally lower investment spend in
the first half. Historically, we have a higher investment spend in the second half and this
will be the case again this financial year.
We will continue to manage cost and productivity to deliver on our full year '25 guidance.
Hence, we expect to be around 4% up year on year based on ANZ and the Suncorp Bank
proforma cost base as shown on this slide.
Turning to provisions. Our lending portfolios have remained resilient, with an individual
provision charge of $159 million of which only $60 million was from our wholesale
portfolio.
We continue to deliver peer leading loss outcomes with an annualised loss rate of four
basis points. This loss experience is consistent with the low embedded risk in ANZ's
portfolio, which is also lower than our peers.
In our Australian home loans portfolio, customers remained resilient with 83% ahead on
repayments and offset balances up 15% to $50 billion. While increasing slightly half on
half, the 90 days past due cohort remains well under 1% of the loan book.
Compositionally, Victoria was the largest contributor to 90 days past due over the last 12
months. Growth in home loans hardship volumes moderated this half.
We actively monitor our wholesale portfolio, in particular, those exposures that are not
investment grade rated and are relatively less secured. This is a well-diversified group of
customers with lower concentration to material exposures.
Since 2016, this type of exposure has reduced by more than two thirds, resulting in actual
losses in our institutional business over the last seven years being one twelfth of those in
the seven years prior. This reflects the ongoing benefits of our multiyear derisking
strategy. We've included more detail on tail risk in the risk section of the discussion pack.
ANZ Half Year Results Presentation
8 May 2025
Page 9 of 32
Our collective provision balance remains steady at $4.3 billion which is $2.3 billion higher
than our base case economic scenario and almost $600 million more than our downside
scenario.
To give a more complete picture of our loss coverage, we provided additional detail on this
slide. ANZ has a combined $5 billion of total loss coverage. This is the aggregate of our
CP and IP provision balances and $304 million in the half of capital deduction for
regulatory expected loss.
While provision scenario weights remained unchanged for the half, we did take $52 million
of overlay for increased uncertainty and economic volatility as we approached the end of
March.
It's important to consider collective provisions in the context of the composition of the loan
book. You can see on the right hand side of this slide, a split of performing and non-
performing loans. Our non-performing loans as a proportion of the loan book are well
below peers and provision coverage levels for our performing exposures remain in line with
peers.
Our capital position remains strong at 11.8%, up around 30 basis points in the second
quarter. ANZ operates a non-operating holding company, or NOHC. Inclusive of the
capital held in the NOHC, which also includes the capital for the remaining share buyback,
the CET1 ratio is equivalent to 12%.
The Board has held the dividend at $0.83 per share, franked at 70%. Now, global
conditions have been more unsettled in recent weeks and so we believe it is appropriate to
adopt slightly more conservative capital settings.
This includes retaining the flexibility to adjust the pace of share buyback if needed. It also
provides us with capacity to support customers and to take advantage of attractive risk
adjusted opportunities should they become available.
Now, while the environment has been more unsettled, the fundamentals of our business
remain strong. The benefits of the diversity of our portfolio of businesses, as well as our
geographic footprint, allow us more flexibility to optimise risk and returns.
These benefits include firstly, active de-risking over the years, which through strong
customer selection and prudent risk settings, has resulted in the portfolio that we have
today.
ANZ Half Year Results Presentation
8 May 2025
Page 10 of 32
This allows us to manage risk but also benefit from opportunities that arise in our portfolio
of leading global corporates as the macro environment evolves.
Secondly, the diversity of our businesses and our geographic footprint provide us with
access to customer deposits and funding options across our network. This enables us to
optimise funding costs and benefit from a flight to quality on the strength of our credit
ratings. It also provides the unique opportunity to follow our clients as they dynamically
shift supply chains.
Thirdly, the strength of our markets business, which through leading product and local
markets capabilities, is a go to for our clients globally as they consider their risk mitigation
strategies.
Now we look forward to welcoming Nuno as our new CEO and to supporting him as he sets
his priorities for execution. There are several value creating opportunities that lie ahead of
us, including the full integration of Suncorp Bank and we are excited about executing on
these under Nuno’s leadership.
Finally, I would like to thank Shayne for his leadership over the nine and a half years as
CEO of ANZ, a period marked by significant transformation and innovation. I have had the
privilege of working alongside Shayne in my role as CFO since October 2021. Shayne,
that’s eight of your 18 results presentations as CEO and I am grateful for your enduring
support and wise counsel. I know you would appreciate this, but much like the All Blacks’
philosophy of, leave the jersey in a better place, I and the entire team at ANZ would agree
that you are leaving ANZ in a better place. I wish you the very best. Thank you, and I’ll
hand back to you for closing remarks.
Shayne Elliott: Thank you, Farhan, thank you for those nice words.
This year ANZ turned 197 and I’ve had the privilege to be its custodian for nine and a half
years, almost 5% of that history. At one level, the task was simple, to leave it in better
shape than I found it. Ultimately that will be for others to judge and while there will
always be more to do, I am confident that ANZ today is a simpler bank, stronger and
better.
Now, some on this call have participated in all 18 of my results announcements and yes,
that means you, Richard, Jonathan and Brian, but for many it may be hard to recall what
ANZ was like in 2016, before the Royal Commission, before the bank levy and even before
Apple Pay.
ANZ Half Year Results Presentation
8 May 2025
Page 11 of 32
2016 was the year of the Brexit referendum and the year that Trump became president for
the first time. John Key was prime minister in New Zealand and Malcolm Turnbull here in
Australia. The big global business story, was the collapse of Theranos. Now, for ANZ, this
was still the era of the super-regional strategy, but times were changing fast and it was
clear that we needed to adapt. Frankly, we were just doing too many things in too many
places with too many people to truly do anything as well as we needed to.
Since then, we focused our strategy, strengthened the balance sheet, tightened customer
selection. We drove significant productivity, improved capital efficiency and we made a
material shift in our culture. Now, I don’t regret any of those decisions, only wishing that
we had gone faster.
Since launching that new strategy at the first half result in 2016, we’ve increased our
market cap by around $20 billion and returned around $48 billion to shareholders, while
retaining sufficient capital to build a better Bank, investing ahead of our peers.
We didn’t just milk the franchise, but we laid the foundations for long term success while
delivering decent returns in the short term. We helped over one million people on lower
incomes build financial skills, knowledge and confidence, with our financial literacy
program, MoneyMinded and we contributed to helping more than 62,000 people build life-
long savings habits while saving more than $31 million to go towards financial education in
our award-winning program, Saver Plus.
From a start up in Van Diemen’s Land 197 years ago, we have grown and thrived in a
volatile changing world. Like those before me, future custodians will need to navigate an
uncertain environment, a more volatile geopolitical landscape, greater competition, fast
evolving regulation, high community standards and shifting customer expectations. They
will succeed by retaining a sense of purpose and agility, a growth mindset and a dynamic
approach to capital and resource allocation.
As I hand over to a new Chief Executive, I am confident that we have the right people in
the right places, providing the right services to the right customers to do just that. So, the
direction is clear, our foundations are strong, but it’s now time to double down on
execution and pace while keeping a firm eye on the long term.
I thank you all for your support, guidance and even the critiques over the years. While not
always appreciated at the time, that robust challenge has driven a better outcome. I am
eternally grateful to my colleagues around the world, the notes, emails, calls and overall
support has been invaluable to me.
ANZ Half Year Results Presentation
8 May 2025
Page 12 of 32
I may have the most visible role in the Bank, but it is the people of ANZ who bring passion
and commitment to our customers and the community every day, shaping a world where
people and communities thrive, so thank you all.
For Nuno, I wish the very best for the future as you lead ANZ into our third century.
Back to you Jill.
Jill Campbell: Thanks, and just a quick reminder, if you want to ask a question, you do
need to do that via the phone. If you can do your best to keep it to two questions per
person, if there are any we don’t get to, myself and the Investor Relations Team are, of
course, here for the rest of the day.
I’m going to hand back to our operator now to just quickly walk you through the
mechanics. Thanks Dolcia
Operator: Thank you. If you wish to ask a question, please press star one on your
telephone and wait for your name to be announced. If you wish to cancel your request,
please press star two. If you are on a speaker phone, please pick up the handset to ask
your question.
Your first question comes from Ed Henning from CLSA. Please go ahead.
Ed Henning: (CLSA, Analyst) Hi. Thank you for taking my questions and congratulations
Shayne and all the best. A couple from me. Firstly, on capital, you’ve reached a capital
floor. Is there any scope to adjust the capital floor through optimisation to help your
capital position, and you’re issuing shares under the DRP, unlike peers.
Can you just talk about your credit growth ambitions and your ability to hold the dividend
at current levels is the first question please.
Shayne Elliott: Sure. I’ll actually hand that to Farhan.
Farhan Faruqui: Sure. Thanks very much, Ed. Just on the floor, the increase mainly
occurred in the first quarter and that increase did include FX impact and while this partially
unwound, as we had expected, this was offset by some other increases, including rising
from the IRRBB portfolio.
The floor is driven by really our high-grade Institutional customers, some of which are
applied to higher standardised RWA, so we’re always trying to find this balance between
risk and returns and the floor makes this a bit more complex, but we will manage this and
incorporate this into decisions, but not at the expense of our credit risk appetite and
settings and also, it does provide us some additional protection against RWA migration.
ANZ Half Year Results Presentation
8 May 2025
Page 13 of 32
I think there are – it’s a complex issue, Ed, and we are trying to make sure that we deal
with it appropriately, because frankly the floor encourages banks, if you’re bound by it, to
take more risk and we’re trying to make sure we balance that position and will continue to
look at settings and our targeted growth where we think there is limited impact to
standardised floor.
Ed Henning: (CLSA, Analyst) Can you just touch on the issuing of DRP shares and the
ability to hold the dividend at current levels?
Farhan Faruqui: Yes, we did. I mean, at this point, as I mentioned in my remarks, we
want to make sure we have conservative capital settings, which is why we did not
neutralise the DRP, but our positioning and our strategy from the Board and with Shayne
and the executive leadership is to make sure we focus on consistency of dividends, so at
this point, our expectation is to continue to hold dividends at these levels.
Ed Henning: (CLSA, Analyst) Perfect, thank you. Just a second one, just on your margin.
If you adjust for the swing in markets, your net interest income looks to be down about
five basis points. Can you just touch on the impact of remediation in the actual impact of
US rate cuts and just give us a little bit more on some of the moving parts on the outlook
of the actual NIM, not the banking NIM please?
Farhan Faruqui: You mean on the headline NIM?
Ed Henning: (CLSA, Analyst) Yes please.
Farhan Faruqui: If you go to the slide on results on NIM – sorry, I’m just trying to find the
right page number here. Bear with me.
Jill Campbell: Slide 20, Farhan.
Ed Henning: (CLSA, Analyst) 20.
Farhan Faruqui: Sorry, yes, sorry, thank you. Slide 20. The impact on headline NIM was
similar in its nature to banking NIM in the sense that we had deposit pricing pressures and
some pressure from wholesale funding. Part of that was driven by the size of our
wholesale funding and part of it was driven by the rate movements, particularly in the
short term [spreads] here in Australia.
The asset pricing actually across our divisions was variable, but overall, it netted out to
effectively no impact on asset pricing half on half. The asset and funding mixes I
mentioned was more driven by the institutional faster growth in loans versus deposits and
the capital and replicating portfolio produced two basis points.
ANZ Half Year Results Presentation
8 May 2025
Page 14 of 32
Now, on the markets and group centre, we had a one basis point supportive outcome in
markets and three basis points, effectively an unwind if you had last year, last half, of the
liquids benefit, so net net it was two basis points down from markets and group centre and
then there was some small element of remediation impact, but almost all of that was offset
by the Suncorp inclusion in our headline numbers.
Ed Henning: (CLSA, Analyst) Okay, thank you for that. Can you provide any comments on
any changes or some of the moving parts on the outlook that you see in margin at the
moment please?
Farhan Faruqui: Look, as I said, I mean it’s very hard in a world which is as uncertain and
as unsettled as it is right now, so it’s hard to give you a sense of what the direction of NIM
is going to be, both given the competitive environment and the macro environment, but I
can say that from a capital and replicating portfolio perspective this, as I mentioned, is
going to remain a tailwind going forward into the next two years because of the fact that
we’ve been hedging for a longer tenure than some of our peers and we will also look to
offset rate reductions with volume in some of our businesses to ensure that we get
accretive outcomes.
It's going to be – there’s going to be a lot of uncertainty ahead. The good news is, ITOC
and replicating continues to be a tailwind and we’ll continue to manage our funding costs
and impacts.
There is one other element to this, which is on wholesale funding. The short-term spreads
had blown out, the Bills/OIS spreads had blown out in the early part of this half, but that
has now reversed, so again, we’ll have to see how that plays out over the next six months,
but that could potentially be a tailwind.
Operator: Thank you. Your next question comes from Matthew Wilson from Jarden.
Please go ahead.
Matthew Wilson: (Jarden, Analyst) Yes, good morning team and all the best Shayne.
Shayne Elliott: Thank you.
Matthew Wilson: (Jarden, Analyst) Two questions if I may. Firstly, Slide 77, gross
impaireds have gone from $1.69 billion to $2.25 billion, so up sort of 33%. When you look
at it, it looks like it’s restructured loans, it then looks as though it’s coming from
AustraliaRetail, but when you get to the last bucket, it looks as though it’s coming from
ANZ Half Year Results Presentation
8 May 2025
Page 15 of 32
loans in the $10 million to $100 million size exposure. Maybe it’s just the graph, but those
sort of loans in Australia Retail look unusual.
Could you add some colour to that please?
Farhan Faruqui: I think actually your hypothesis was correct right off the bat, which was
that a large part of this has come from Australia Retail restructuring. There is an element
of single name wholesale impairments which have come in, but those are relatively
diversified, they’re not representative of any industry in particular and again, some of
them as well secured, so we just have to work through those, but largely, the impact is
from mortgage restructuring.
Matthew Wilson: (Jarden, Analyst) Okay. Then secondly, if we look at revenue ex
Suncorp, it’s down 1% half on half in an environment where you have much better
markets outcomes and you had 2% net interest income growth and [fees] look to be really
soft despite good volumes. You point out that there are timing differences and cards and
loans and what have you, but we saw it at other banks this period as well.
Are there other things driving softness in non-interest income across the sector? Is there
competition discounting to try and get volume growth? How should we think about that
trend?
Farhan Faruqui: Let me step back for a second and just give you a broader view, which is
that when we say, ex Suncorp revenue, I think it’s important that we acknowledge the fact
that we’ve actually held the capital for Suncorp over the last almost three years now, so in
reality all we’re doing in this half, by capturing the full half of Suncorp earnings impact, is
actually delivering better returns on that very capital.
When we say ex Sun, it’s a bit of an unfair comparison because we have always held the
capital and it has impacted adversely our return on equity, so what we are trying to do
right now is just to make sure we recognise and level set this new level of revenue and
earnings that we have as a result of Sun being part of our numbers.
Yes, there are some seasonality impacts in our fee income. There are some accounting
changes et cetera that we’ve done which is impacting fee income, but again, and
remediation is slightly higher this half, and there are other one offs in the prior half, so
there are lot of ins and outs in that which impact that, but broadly just on the philosophical
point, ex Suncorp is actually a slightly uncharitable view to take on our revenue, given the
fact that we held that capital before as well.
ANZ Half Year Results Presentation
8 May 2025
Page 16 of 32
Matthew Wilson: (Jarden, Analyst) Yes, okay, but those earnings would have come in that
interest income. Maybe if I can push my luck, Shayne, given you mentioned it in your
opening remarks, if you’re thinking about the institutional bank how are, and will, changes
in global capital flows impact the revenue in transaction banking and trade et cetera?
Shayne Elliott: Yes. Happy for you to push your luck. Hey, the whole point about our
insto business is transforming it from, 10 years plus ago actually, you go back to when I
started, and it’s a [known known] and from a lending led business to one that’s really
much more focused around facilitating the movement of trade and capital flow, which is
there’s going to be a lot more deposit heavy and that’s why Transactive Global is so
important.
Depending on your timeframe, I sit there and go, hey, when our customers, who are the
world’s best companies, well actually the world’s – these are Fortune 500 and equivalent
global companies and remember most of them are not Australian – I don’t mean that in
any judgemental way, but these are US, European, Asian, massive organisations, when
they change things, that’s good for us.
When they move money, capital, manufacturing base, supply chain et cetera, that’s good
for us, because all of that activity needs financing means that there’s a parallel movement
in money and the movement of money around the world is what drives our business.
I think over the long term that these changes, while they might feel uncomfortable, are
really, really good for us and, what’s good about it is that because we’ve restructured our
risk appetite, it doesn’t really bring a whole lot of risk with it. Our risk settings sit the
same, but we’re going to get more activity, so I think it’s positive.
In the short term and, again, short term just being, what are we seeing as of the moment,
actually we’re not really seeing a huge shift in behaviour from those customers, so we’re
not seeing – our trade business is relatively modest in the scheme of institutional, so if
you’re just talking about pure trade finesse, it’s actually very, very modest and it’s
certainly modest within the greater ANZ. There has been some movement in that, as you
would expect. There is less stuff being financed from China to the US, but that’s a really,
really tiny part of our business, so that’s why I was more optimistic about the fact that
when there’s change, it will be good for us.
Farhan Faruqui: Just to close out the previous point, because you mentioned most of those
come in through NII, when I said accounting adjustments, what I meant were these were
fee recognition which we have changed accounting for, so therefore it reduces OOI and will
ANZ Half Year Results Presentation
8 May 2025
Page 17 of 32
over time come through NII, so that’s the reason why I was saying it does impact OOI and
there are some elements of remediation which also show up in OOI, so they impact that.
It’s a small amount but they come through all lines. They come through operating
expenses, through non-lending losses and other operating expenses through NII and
through OOI.
Matthew Wilson: (Jarden, Analyst) Thanks team, and as I said Shayne, all the best with
the next project. Cheers.
Shayne Elliott: Thank you. Thank you. Thanks, Matt.
Operator: Thank you. Your next question comes from Richard Wiles from Morgan Stanley.
Please go ahead.
Richard Wiles: (Morgan Stanley, Analyst) Good morning. I also had some questions on the
institutional business. Shayne, you just talked a little bit about how the geopolitical
changes may impact the institutional business, can you talk about how you think
international world performed versus Australia? Do you think international has much
better growth prospects than the Australian arm of the institutional division?
Shayne Elliott: I do, and again, thanks Richard for the question. In the end, it depends on
your time scale, but I do and you would argue that that’s already the case today and, you
know, without going too high level, if you just then think about pure institutional banking,
actually in Australia, if you’re thinking about banking Australian institutional, so the big
names, the big domestics, we punch to our weight. We have share like our peers and we
do a really good job, but we’re at weight in that business and it’s a good business.
Where we excel is in two things. If you’re a multinational operating in Australia, of which
there are many, we punch way above our weight, right? Because we’ve got the
international network that means we’re supporting that multinational in their home country
as well and around that region, so we have a huge share when multinationals and, what’s
interesting about that multinational business sitting here in Australia is, the balance
typically actually isn’t with our domestic peers, it’s with the other international banks that
operate here.
If you’re a Japanese firm operating in Australia, then your banks are likely to be ANZ and
one of the Japanese for example. So, you’ve got that and then to that, it depends how
you think about it, Richard. I think that is part of our international business, because
those multinationals operating here in Australia are buying, not Australian banking, they’re
ANZ Half Year Results Presentation
8 May 2025
Page 18 of 32
buying a regional network, so that’s a really important part and we already punch above
our weight and that’s going to continue to grow really nicely I think here in Australia.
But then, to your point, the true multinational piece of our business, we bank the world’s
best companies and they are naturally growing, so I do think there’s much greater growth
opportunity over the medium to long term in our international franchise. It was part of the
reason I mentioned today, just in passing, that we did have a record result from a
geographic point of view, looking at our North American and European business, because
guess what, that’s where a lot of those companies are headquartered.
The other point about the international – and let’s not forget, you were there at my first
result, Richard, back in those days, the international – the ROE on our international
institutional business then was very low single digit, right? Today it’s higher than the
average and in fact it’s 16% at the moment. Now I don’t know if it’s going to stay at 16 or
higher, but it’s going to be in that mid-teen level, so it’s not just a growing business, it’s
actually now a very high returning business for it, because if its business mix.
Richard Wiles: (Morgan Stanley, Analyst) Okay and my second question also relates to
institutional. The margin ex-markets in the division, I think fell about 12 basis points, 236
to 224. Can you maybe talk to the drivers of that and give us an update on how you think
lower cash rates are going to influence the margin in the division over the next little while?
I know there are a whole lot of other factors, including competition, but if you could talk
about the impact of lower cash rates, your updated view on that.
Shayne Elliott: Yes, I’ll get Farhan to talk to this one.
Farhan Faruqui: Yes, hi Richard. So the impact in institutional NIM was driven – so if I give
you just a bit of a breakdown. Five basis points was basically driven by cash rate but offset
by volumes. Four basis points was driven by mix, which is again the comment I made in
my remarks which is asset growth outpacing deposit growth. About three basis points was
lending competition and to some extent it’s understandable because when we’re competing
in this space, whether in Australia or outside, our competitors and us need to start with
lending and then the deposit flows and others follow.
That’s just a competition issue to start with, but we continue to look at and as we’ve seen
and as you’ve seen, Richard, that we’re very focused on overall customer returns and
making sure that we are lending on an accretive basis. That’s sort of the breakup. Now if
cash rates come down, obviously it will have some impact, but again, so far we’ve offset
that by volumes and also, as I have said before, our cost per dollar of FUM in our PCM
ANZ Half Year Results Presentation
8 May 2025
Page 19 of 32
business has actually been flat to down over the last few years, so that’s another offset in
terms of getting to better ROE outcomes. That’s broadly speaking our view on cash rates.
Yes, it does have an impact, but we have other offsets to that.
Shayne Elliott: I’ll just draw you, page 52 in the slide pack, Richard, has got some stuff in
there about the sensitivities, for the PCM, for the Insto business.
Richard Wiles: (Morgan Stanley, Analyst) Okay and Shayne, I’ll just echo what some of my
peers have said. Congratulations, you’ve made some very bold decisions at ANZ, so well
done and all the best.
Shayne Elliott: Very bold, minister, thank you. I appreciate it, Richard, thank you.
Operator: Thank you. Your next question comes from John Storey from UBS. Please go
ahead.
John Storey: (UBS, Analyst) Thanks very much and congratulations Shayne...
Shayne Elliott: Thank you.
John Storey: (UBS, Analyst) ... Congratulations Shayne and and all the best for the next
chapter. I’ve got two questions, probably more directed at Farhan. The first one is just on
costs and the second one is on impairments. Just on the first one with regards to costs,
the guidance that you’ve given, 4% growth and it kind of puts you at about $12 odd billion
for the full year, which I think consensus is largely [got], but noting that you’ve got or
you’ve had a step down in terms of your investment spend in the first half, I’d just be
interested to get a little bit more colour on the nature of the expenses that are going to
come through, the $500 odd million delta effectively on the first-half annualised cost-term
benefits in the second half...
Shayne Elliott: Can I...
John Storey: (UBS, Analyst) ...and then – yeah.
Shayne Elliott: Sorry John and I will get Farhan to answer the detail. I just wanted to make
something clear and maybe we haven’t done a good job. When we talk about seasonality
in the investment slate, or the tech spend around new projects, et cetera, that’s like a
baked in, I just want to explain where that comes from. In the first half, what we typically
do, we literally have a shut-down period over Christmas. So basically what we do is we
say, look there’s not a lot of point at that time, people are focused elsewhere on holidays,
so we actually have a bit of a shutdown, almost for month.
ANZ Half Year Results Presentation
8 May 2025
Page 20 of 32
So basically what we do is our spend rate during the year doesn’t really shift month on
month, but the first half, for all intents and purposes, we’ve got five months of spend
because of shutdown and the second half you have six, so mathematically you end up with
a seasonality. It’s not that we sit around and decide to pull back investment or stop things
and particularly in the first half or have a re-look in the second, it’s just literally a
mathematical outcome on the impact of that shutdown, so that’s the timing change. But
that’s to do with the slate itself. But Farhan, do you want to give the...
Farhan Faruqui: Yes, so John, as you correctly picked up, it is that timing that Shayne
described, which means that our investment spend is going to rise in the second half, as it
does historically. A lot of that is continuing with our dual platform strategy and of course
some of the work we’re doing now which is escalating on migration and integration work
from a Suncorp standpoint. So those are costs that are naturally going to come through.
Now there is an element here, John, of potentially some higher remediation that might
come through next half as a result of the EU, et cetera, but we’ll continue – that’s a
watching point and we’ll see how that goes. But our view is, at this time, that we don’t
need to shift our guidance and that we will hit our guidance number.
John Storey: (UBS, Analyst) Okay and just on my second question with regards to
impairments, quite similar to what Matty Wilson was asking, but you’ve got the paradox at
the moment where your NPL and your [NPEs] are going up quite significantly, up 11%.
Then clearly the charge that you’re carrying is actually quite low. If you go and have a look
at your Stage 3 charge that came through, the $300 million, relative to the delta in your
impaireds, which was $1.2 billion, that charge as a percentage of that was 23% and if you
go and have a look at your prior period it’s closer to 32%.
I just want to get an understanding of what you guys have seen, what your inputs [are
going in] and if it’s in regards to expected losses. Because I mean if you had to take it
back to that 30% level, there’s probably about $100 million delta just on that charge
alone. So Farhan, if you’ve got any insight into that, that would be great.
Shayne Elliott: I’ll ask, so Chief Risk Officer, Kevin, is here. He’s just coming up to the
microphone. I know he was struggling to hear your question, but basically Kevin the
question was around the change in IEL expected loss rate and related to the increase in
impaireds and they don’t 100% look correlated.
Kevin Corbally: Okay, I think Farhan alluded to this earlier, one of the important things to
remember with the impaireds number is that two thirds of it has come from restructures,
ANZ Half Year Results Presentation
8 May 2025
Page 21 of 32
loans and essentially restructured home loans, so there’s no expectation of IP loss on
those because of the security coverage, so that might be a key factor in terms of why
you’re seeing that difference between the two.
In terms of the IEL itself, there has been a slight deterioration and that’s just a reflection
of some broad credit deterioration across all of the wholesale book predominantly. It’s not
in any particular segment – sorry, it’s in a couple of small segments, I should say and it’s
not necessarily a large number of customers. It’s a small number of customers. They’re
the two key drivers, I think.
John Storey: (UBS, Analyst) Okay, thanks very much.
Shayne Elliott: Thanks John.
Operator: Thank you. Your next question comes from Jonathan Mott from Barrenjoey.
Please go ahead.
Jonathan Mott: (Barrenjoey, Analyst) Thank you. Question relates to capital and we’ve now
seen you going through the capital floor on the common equity tier 1 ratio, but if I can just
turn you to page 47 of the 4D and looking at the leverage ratio, now remembering the
leverage ratio was introduced to stop, as another constraint, against just using the CET1
and optimisation and model adjustments that we’ve seen around the world.
But what you’ve seen here is that the tier 1 capital is unchanged over the last half, but
you’ve seen the exposures rise by another 6% which has seen the APRA leverage ratio go
down from 4.7% to just 4.4%. Are we now getting to a stage where the leverage ratio
becomes a binding constraint on your capital position?
Shayne Elliott: Farhan?
Farhan Faruqui: So our view of this point, Jon, is we think there’s still headroom and we’re
not expecting it to become a constraint.
Jonathan Mott: (Barrenjoey, Analyst) So what is the limit that you’re expected to see this
leverage ratio, because this is what’s driving the ROE higher, is actually the leverage, so
where is the bottom...
Farhan Faruqui: So the minimum is 3.5...
Jonathan Mott: (Barrenjoey, Analyst) ...[unclear] ratio gets it.
Farhan Faruqui: Yes, so the minimum is 3.5.
ANZ Half Year Results Presentation
8 May 2025
Page 22 of 32
Jonathan Mott: (Barrenjoey, Analyst) That’s the regulatory, but where would you be
comfortable?
Farhan Faruqui: Well we like to be above that. We like to be well above that.
Jonathan Mott: (Barrenjoey, Analyst) I hope so.
Farhan Faruqui: But my point is that we still have some headroom and we don’t expect it
to be a constraint.
Shayne Elliott: I mean I think the point is that we’re well above that rate, we’re well above
it. I mean in percentage terms, we’re well above. I don’t know that we – we haven’t sat
here and have a precise number and say, hey it has to be at 4.2 or 3.9 or whatever, we’ve
got room. But your point is valid in that it is designed to be a constraint. It’s not a
constraint at this point, but it’s something that factors into your risk appetite and your
growth ambitions for the organisation.
Farhan Faruqui: Correct.
Jonathan Mott: (Barrenjoey, Analyst) With institutional, because I know a lot of that you
were talking about before, that the institutional side is rates go down, volumes go up, it
going to lead to ongoing pressure to your total exposures. Is that where you’d see this
show up, the leverage ratio continues to fall from that perspective?
Farhan Faruqui: So sorry, when we were saying volumes will go up to offset the rate
impact, I was referring more to the liquidity side more than the asset side, so it’s basically
the fact that our...
Jonathan Mott: (Barrenjoey, Analyst) So turnover of volume, rather than – because
obviously liquidity goes into exposure as well, so what were you referring?
Farhan Faruqui: Yes, I mean look, first of all, the overall lending volumes have been
particularly high this, as I mentioned, in the first quarter, so we don’t expect those to
continue. Our expectation and for PCM, we had a 4% - sorry, for loans and deposits, we
had a 4% FX-adjusted growth rate in loans and a 4% FX-adjusted growth in PCM.
The FX element will unwind over a period of time. We’ve seen that unwind in the markets
exposure already, as we said Jon, at the first quarter, but it hasn’t fully unwound on the
lending side. There are some FX benefits that will come through and then we’ll manage the
volume and margin trade off as we look at the rate environment.
Jonathan Mott: (Barrenjoey, Analyst) Okay, thank you. Just a second question on the NIM,
I know there’s been a lot of discussion on this already, but NAB came out yesterday and
ANZ Half Year Results Presentation
8 May 2025
Page 23 of 32
said that every 25 basis point rate cut it costs them one basis point to the NIM over a
period, so in the next period. Have you got any kind of sensitivity to that for the Australian
exposure?
Farhan Faruqui: Yes, so 25 basis points for Australian rate cut is roughly one basis point of
headline NIM for us as well. Yes, so about the same and if you think about Bills/OIS it’s
about eight basis point of reduction in – sorry, eight basis point of expansion in Bills/OIS
is one point of NIM impact.
Jonathan Mott: (Barrenjoey, Analyst) Great, thank you very much and congratulations
again, Shayne, well done.
Shayne Elliott: Thank you. Thanks Jon.
Operator: Thank you. Your next question comes from Brian Johnson from MST. Please go
ahead.
Brian Johnson: (MST Financial, Analyst) Thank you and congratulations, Shayne. I think
anyone who survives a reasonable tenor as a bank CEO has a predilection for pain. Two
questions if I may. The first one is if we have a look on slide 23, we can see the Suncorp
NPAT benefit was $35 million from these fair value adjustments. If you have a look at page
8 of the result, I can see $50 million of that has been reversed apparently through the
NIM. The questions I have on that, how much did that impact the NIM, what is the outlook
going forward? That’s the first one if I could.
Farhan Faruqui: Sure, hi Brian. So the impact on NIM was actually, at the Group level, was
actually pretty small, it was roughly about $35 million after tax impact in NIM, so it was
really quite small, it was sort of immaterial. Our expectation though is that, as we go
forward, we had $50 million, let’s call it pre-tax, that number is going to decline in the
second half and after that will pretty much disappear and become immaterial. So at this
point, the impact is probably just under one basis point of NIM.
Brian Johnson: (MST Financial, Analyst) So basically that will create a $100 million
headwind on the NIM, other things being equal?
Farhan Faruqui: Yes, we start every half with headwinds, Brian and then try and offset
them, yes. But you’re right, it does create that.
Brian Johnson: (MST Financial, Analyst) Just in the walk where you were discussing the
NIM deltas, $50 million pre-tax is not a small number. Where would that have flown
through in that walk?
ANZ Half Year Results Presentation
8 May 2025
Page 24 of 32
Farhan Faruqui: In the NIM walk?
Brian Johnson: (MST Financial, Analyst) Yes.
Farhan Faruqui: It’s in the Suncorp Bank, in the three bps of Suncorp Bank.
Brian Johnson: (MST Financial, Analyst) Okay. The second one is a somewhat more
obscure one. If we have a look historically at the economic profit, it has been falling, so
the accounting earnings have benefitted from the very low loan loss charge. We can see
even in this result the long-run rate has basically increased from 18 to 19 basis points. The
disclosure of the economic profit has disappeared. Is this telling us the economic profit is
not what we should be looking for any more? Was it negative during the period? Could we
get some clues on what...
Shayne Elliott: No, it wasn’t. Fair question.
Shayne Elliott: Hey, fair question. I’m a fan of economic profit; it’s something we use
internally. It’s not perfect. It is a factor we use internally when we think about our
businesses and the way that we manage the Bank. There are multiple ways of doing that,
but making sure that our businesses consider cost to capital, it’s pretty fundamental to the
way we run the Bank.
It's really – there was no hiding meaning in taking it out. We were largely out of line with
our peers in reporting it and it was just something to try and simplify our disclosures, but
there was no strategy around it. Frankly, Brian, BJ, I think you’re about the only person
who ever asked a question about it, so it sort of became irrelevant and there was just an
attempt to simplify. But no, we do use it internally and we do hold people to account in the
various divisions, et cetera.
At the end of the day, you can work it out yourself. I mean look, our cost to capital at the
moment we use is just south of 10% at the moment and the treasury team update that,
literally look at it every month and we make a decision whether the change in that cost of
capital is sufficiently meaningful or sustainable that we should reflect it in our drivers with
our businesses or not. But at the moment, it’s just a little bit below that and obviously you
can see the ROE here, so by definition the economic profit is positive for the Group.
Brian Johnson: (MST Financial, Analyst) Thank you.
Shayne Elliott: The Board discuss the – the Board do, just to give you comfort, that
number on the cost of capital goes to the Board every quarter for reaffirmation, if you will.
Farhan Faruqui: Yes.
ANZ Half Year Results Presentation
8 May 2025
Page 25 of 32
Brian Johnson: (MST Financial, Analyst) The only thing I would observe, Shayne, it’s an
important dynamic, the disclosures in the profit release are bigger than they actually are in
the Annual Report and often the number that appears in the Annual Report is different to
the one that appears in the profit disclosure. I’d really encourage, just because others
don’t disclose it doesn’t mean you guys shouldn’t. I thought it was a point of positive
differentiation before, but anyway, it is what it is.
Farhan Faruqui: No it’s well...
Brian Johnson: (MST Financial, Analyst) I mean I personally think you should bring it back.
Farhan Faruqui: Well noted, Brian.
Brian Johnson: (MST Financial, Analyst) Thank you.
Shayne Elliott: Thanks, Brian.
Operator: Thank you. Your next question comes from Tom Strong from Citi. Please go
ahead.
Tom Strong: (Citi, Analyst) Good morning and thanks for taking my questions and I’ll add
my congratulations, Shayne.
Shayne Elliott: Thank you.
Tom Strong: (Citi, Analyst) First question just around the institutional business, if I go
back to the first quarter, you saw $28 billion of lending growth in that business that’s
unwound through the second quarter, can you just talk to I guess behaviourally what
drove that and if there’s any impact revenue into the second half from that experience in
the first quarter?
Farhan Faruqui: Yes, I mean I’m happy to say something and then Mark, please feel free
to add. But look, I think so first of all, I’ll just make sure, Tom, we reiterate our view on
the institutional lending strategy. We don’t actually have a lending strategy. We lend to
our customers when they need it. We support them with lending and our focus of course is
to make sure that we look at the whole of relationship value that we get from our
customers.
As it happened in the case of the first quarter of this year, we had accretive opportunities
that became available, there was some market short-term lending opportunities which
were also accretive, not accretive to NIM but accretive to returns and we basically took
advantage of those opportunities. But Mark, you might want to add.
ANZ Half Year Results Presentation
8 May 2025
Page 26 of 32
Mark Whelan: Yes, there’s not a lot to add there. I mean the first quarter showed good
growth for us and it did flatten out a little bit in the second quarter, but it’s volatile. It’s
never a straight line. It depends on the opportunities that we see and the quality of those
particular opportunities, some we might move away from because we don’t like the returns
or the structures, so we’re quite disciplined about it. So it really is when the opportunities
arrive. So I look at it, it’s never going to be a straight line, there’ll be some ups and downs
with regards to it and look, we’ll see that in the second half as well, is my view.
Shayne Elliott: The only thing I would add, it’s existing customers, so it’s not indicative of
some new customer acquisition strategy, it’s the people that we bank every day.
Mark Whelan: The other thing, it’s ROE accretive. I mean what we’ve been doing with our
business on our lending is while we look at the overall relationship, determining what we
will go into and at what price and at what level of hold, the loan book now is above cost to
capital. It was never like that in the past and so we’re trying to keep those disciplines in
any of the new business that we’re putting on with the existing customers, as Shayne said.
Tom Strong: (Citi, Analyst) Okay, that’s very clear, thank you. Just a second question if I
can on the asset pricing pile in the NIM waterfall. We had the home lending margin New
Zealand offset the other divisions, can you perhaps just talk about the sustainability of that
improvement in the New Zealand home lending margin? Is that timing related around
swaps or is that sustainable?
Farhan Faruqui: So the New Zealand asset NIM benefit was actually you know, it was
expected to be pretty low as we go forward into the second half, so there's probably a
small benefit I think going forward, but what New Zealand as a business has done really
well is continue to manage their asset and deposit margins and volumes to ensure that
they continue to create stable returns in the business.
So that - we expect that overall situation to continue. Then overall NIM already is at a
strong place and their focus is to make sure they maintain that as much as they can
through offsets between deposits and loans and pricing.
Shayne Elliott: Just remember - you know this, Tom and everybody on the - remember,
the New Zealand business mix is very different within retail, so they are largely a fixed-
rate home loan book. So as rates reduce, deposit book reprice is pretty fast and the home
loan doesn't and so you tend - you just get a different time delay or timing impact,
particularly in a rate falling cycle that will tend to be more supportive of NIM in New
ANZ Half Year Results Presentation
8 May 2025
Page 27 of 32
Zealand than it would be here in Australia and that's precisely the environment we're in at
the moment. So you'd expect it to be more positive than not going forward.
Tom Strong: (Citi, Analyst) Okay, that's very clear. Thanks very much.
Shayne Elliott: Thanks, Tom. Thank you.
Operator: Thank you. Your next question comes from Matt Dunger from Bank of America.
Please, go ahead.
Matt Dunger: (Bank of America, Analyst) Thank you very much. Slide 18, you've
segmented the banking NIM at 14% versus the 10% markets ROE and the cost drag from
the group. Just wondering, given you've called out the opportunity to optimise the markets
ROE within the pack, what's the size of the opportunity? What returns should that markets
business be delivering?
Shayne Elliott: Great question. So look, first of all, the difficulty with markets business,
you're right, so we run markets very much around - it should be run on an ROE, but it's
not a NIM business, right, and so it should be on return and obviously, we really think
really highly about the CTI in that business as well. I mean, we think about cost
everywhere, but in particular, that's one of the bigger drivers of the ROE in that business.
But the reality is, markets by definition is a global business and it is extremely competitive
and you don't really - you're not a price maker in those things and so the way that you
improve your ROE is about the business mix because things like short-term foreign-
exchange are very, very - really good solid ROE and other businesses that - some of the
businesses that require capital behind them, obviously less so.
So business mix is one and under Mark's leadership being really pushing hard into those
things that align with our strategy, if you think about intermediating trading capital flow in
Asia-Pacific, what does that look like? FX and we love the FX business because of that,
because of the diversity, low capital and [high] ROE and the other thing you have to
manage is your cost base.
Look, generally, having a markets business at around that sort of 10-ish number is good,
but it needs to be - it can improve from here. It's not going to be 15, but it can improve
into those low-teens based on getting that business mix right. So that's the real
opportunity in markets over time. But as I said, that's not going to happen overnight.
Farhan Faruqui: I think just to add to that, Shayne, because you're absolutely right, but a
big focus has been and I think you may have seen that, Matt, over the last few years, that
ANZ Half Year Results Presentation
8 May 2025
Page 28 of 32
it's been a lot more about consistency and insuring that we're not creating a huge amount
of volatility in our markets income, if you look at over the last three years or so, our
markets ROE has actually averaged around 11% or slightly just above 11%, so it is
consistency.
Now, of course, half on half and annually, there might be some ups and downs, but
overall, there is a much bigger focus on consistency, on customer flow driven and reduced
volatility in that business.
Shayne Elliott: I mean, for those banking historians on the phone here, the ones that can
remember back, I mean, it's changed. We talk a lot about the regulatory and capital
changes within our - things like the home lending businesses, but actually, the changes in
markets have been equally profound in terms of the capital intensity in that business that
has changed dramatically.
You know, the same business 10 years ago was much higher ROE and that's because
there's been a load of - not just here in Australia, but globally, a lot of regulatory change
and that's changed the dynamics, particularly around the capital intensity of that business.
Matt Dunger: (Bank of America, Analyst) Brilliant, thank you very much and just a follow-
up on capital, just wanted to understand the impacts predominantly in the first quarter on
risk weighted asset growth and the reductions and the capital floor, to what extent and
around the timing they can unwind and any reservations on continuing the buyback?
Farhan Faruqui: So look, I think we will of course continue to - we will continue to see
some further unwind coming through and you know, the base of it and the exact timing of
it, is hard to predict and as you saw, the floor increase was largely driven by what
happened in that first quarter and not so much by what happened in the second quarter.
So we will continue to look for unwind opportunities from a floor perspective, as well as
from the portfolio.
Your second question...
Shayne Elliott: Buyback.
Farhan Faruqui: ...was around buyback. Look, our intention is to continue the buyback. All
we have said at this point is that the environment is very uncertain and we want to make
sure that our capital strategy as a whole is adapting to the conditions as they play out over
the next few weeks and months and it's very much more about having more capital is
better right now than having less, so we just want to make sure we have flex. We're not
ANZ Half Year Results Presentation
8 May 2025
Page 29 of 32
stopping or pausing the buyback, all we're saying is we will continue to manage the timing
and the volume of buyback, depending on how those conditions moderate.
Shayne Elliott: I mean it's a bit like that old line, right, when the facts change, we change
our mind; what do you do? We're just saying right now, the facts haven't changed, but
they might and so you need to be flexible, right? We've only got what, 800 left on the
buyback?
Farhan Faruqui: Yes.
Shayne Elliott: To do, you know, it's a solid number. It's not huge in the scheme of things
and we're just saying hey, we should be prudent and cautious and so we'll continue, but if
things really do change, and they may not, we just want to - we are just signalling we
should be prudent and flexible about the way we go about the buyback.
Farhan Faruqui: Yes, and I think - sorry, Matt, just to belabour this point, but if you look at
our peers, they've all operated at a very different pace in terms of that buyback, so we're
not necessarily out of line. All we're saying is we just want to make sure we are cautious
around that as we go forward.
Matt Dunger: (Bank of America, Analyst) Fantastic, thank you so much and congratulations
again.
Shayne Elliott: Thank you.
Operator: Thank you. Your final question comes from Carlos Cacho from Macquarie.
Please, go ahead.
Carlos Cacho: (Macquarie, Analyst) Thanks for the chance to ask a question, and
congratulations as well, Shayne.
Shayne Elliott: Thank you.
Carlos Cacho: (Macquarie, Analyst) First of all, I was keen to ask about, at Suncorp, it’s
good to see you’re starting to achieve some of those cost synergies, but I’d be interested
in your thinking of those longer term. You’ve now owned the business for eight months.
Can you give us any idea about how you’re thinking about the integration cost synergies
relative to your expectations going in in 2022. You’ve noted that it is a very different - it’s
a different and better business now than it was when you agreed to purchase it.
Shayne Elliott: Yes. I think it’s too premature for us to give any update on the synergies
case that we went to market with when we raised capital. You’re right. We now have
owned it for eight months. This is a really good business, and we are really grateful to
ANZ Half Year Results Presentation
8 May 2025
Page 30 of 32
have it as part of the ANZ stable. It’s a well-run bank, and you see that in the underlying.
It’s better than what we bought. So, you would expect our ambitions for it to equally be
higher, about the value it can create under ANZ’s ownership.
But in terms of the specifics, we’ve given you a little bit of a flavour. I think I’m right here
in saying, when we did go to the market and talk about synergies, we said, don’t expect
anything for the first three years, and we gave some numbers of what those things would
be. What we’re saying here is today, actually, we are getting cost synergies earlier than
that.
In the scheme of things, they’re not huge, but $20 million in that short period of time, and
those are sustainable synergies, and we had a long - I won’t bore you with the detail, but
we had a long discussion with the Board about the definition of a synergy, and it has to be
a sustainable outcome of the - a real benefit that we can point to that only arose because
of our ownership of the business. That’s a pretty good start when you think about the scale
of the Suncorp Bank.
We will, I imagine - it’s not for me to commit the organisation now, but I would imagine at
the full year result, the business will be more forthcoming about what those synergy cases
look like.
Carlos Cacho: (Macquarie, Analyst) Thank you. Secondly, just around the deposit margins.
You call out] 2bps in the half
, you mention that NZ was a drag, but that was partly offset by improvement in Australian
retail deposits. Can you give us a bit more detail around the movements there between the
different products and geographies? What’s driving that 2-basis point drag?
Farhan Faruqui: Yes, sure. Let me - I - it’s a complex commentary, so I’ll try and keep it
as simple as possible. I think at the high level what I would tell you is that it’s been a case
of us trying to manage each business carefully in terms of the impact on NIM. So, if you
look at Australia retail, largely driven - both asset and deposit pricing largely offset each
other in terms of NIM impact. The real NIM impact came from the widening - sorry, the
wholesale funding cost, which impacted retail.
Commercial benefitted to some extent from that same wholesale funding, the Bills/OIS
expanding. Of course, because they have a higher deposit base in their balance sheet, i.e.
their balance sheet is more skewed to deposits, they benefitted more also from replicating.
The New Zealand division again offset assets and deposits but benefitted from replicating,
so their NIM is - on a banking basis, is higher. In store, as we’ve talked through, impact on
ANZ Half Year Results Presentation
8 May 2025
Page 31 of 32
lending and cash rates, which they’ve largely offset, and some of that will unwind as we go
forward.
That’s been the general splay. It’s a broad story of asset impact being offset by deposit
margins but funding costs expanding and some asset and funding mix differences, changes
which are obviously dragging the NIM. It’s been very active management across every
single division, and I think they’ve done a great job in the environment that we’ve been
operating in, which has been, particularly in places like New Zealand and in the US, et
cetera, characterised by a number of rate cuts.
Shayne Elliott: I think we do have one more question, actually.
Operator: Thank you. We do have a question from Andrew Triggs from J.P. Morgan. Please
go ahead.
Andrew Triggs: (J.P. Morgan, Analyst) Thank you so much, and best wishes Shayne for the
future.
Shayne Elliott: Thank you.
Andrew Triggs: (J.P. Morgan, Analyst) Really always been impressed with your attention to
detail still across so many aspects of the firm. I’ll ask a quick one, given time. On slide 50,
the risk adjusted NIM drivers of institutional, if I just look at Australia & PNG specifically,
it’s come down quite a bit this period to 334 basis points. It’s already below the second
half of ’23, despite really only having a small impact from one RBA cash rate cut, and
those deposits are not hedged in institutional bank. So, what’s happening there, and is it
really just partly because Westpac’s become so aggressive in Australian institutional?
Shayne Elliott: Let’s blame Westpac. Do you want to take that one? Despite my attention
to detail, do you want to take that one?
Farhan Faruqui: I’m just making sure I fully understand your question, Andrew.
Andrew Triggs: (J.P. Morgan, Analyst) Just trying to understand the Australia & PNG one in
particular, the NIM reduction on that - the risk adjusted NIM on page 50. What drove the
reduction?
Farhan Faruqui: I think to some extent, this is just the growth in GLA...
Shayne Elliott: That’s right.
Farhan Faruqui: ...which is driving that, Andrew, just for this particular half. Just broadly,
the [outsized] growth in RWA for institutional in actually driving that. I think that’s pretty
ANZ Half Year Results Presentation
8 May 2025
Page 32 of 32
much the broad answer. I don’t have the exact details of what the exact mix differences
are, but a lot of that growth did occur in Australia & PNG, from our first quarter
institutional growth.
Andrew Triggs: (J.P. Morgan, Analyst) You’re not worried that - we’ve still probably got
maybe another 100 basis points of cash rate cuts. Looking at the history, is there any
reason why we - you wouldn’t go back to a risk adjusted NIM more akin to the 2022, early
2023 period?
Farhan Faruqui: It’s a very good question, Andrew, and I think it is a combination of many
things. It’s about the fact that our focus has been more on higher quality credits, but then
they covered lower margin. They have a correspondingly [unfortunate impact on
standardised floor]. So, it’s trying to balance a number of moving parts.
It’s a little bit like playing five-dimensional chess and trying to make sure we get the best
outcome from a return perspective and from a risk return perspective in particular. There
are going to be different - as the environment evolves, Andrew, we’ll have to keep
adjusting our strategy and our targeted growth to ensure that we continue to manage risk
adjusted margins as best as we can.
Andrew Triggs: (J.P. Morgan, Analyst) Okay. Thank you.
Shayne Elliott: Finished with the questions? All right. I’m not going to make a speech but
thank you very much for your - getting to know you over all these years. I will say, it has
been a pleasure. I often say to people, since my time as CFO, one of the things that I
learnt the most and really benefitted from was my time with the analyst community in
particular. I’ve always found all of you to be really thoughtful, bright and challenging, and I
have learnt an enormous amount in all of those years of interactions with all of you, and I
am very grateful for that.
So, thank you very much, and as I move onto the next thing, I’m really confident that ANZ
is in great shape, and I really do wish Nuno all the very best, and I know that he’ll get to
know each and every one of you soon. So, thanks for your support, and thank you for your
time.
End of Transcript
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
Other issuers discussed similar conditions around this time
Matched by meaning across NZX announcement text, not keywords — based on our semantic index of announcement bodies.
- AIR — Air New Zealand: Air New Zealand reports 2025 Interim Result2025-02-19
“PRELIMINARY HALF YEAR REPORT ANNOUNCEMENT AIR NEW ZEALAND LIMITED Half Year Ended 31 December 2024 (referred to in this report as the “current half year”) 1 Information prescribed by NZX Refer to Results for announcement to the market 2 The following information, which may be pr…”
- WBC — Westpac Banking Corporation: Westpac 2025 Interim Financial Results Announcement2025-05-04
“iii RESULTS ANNOUNCEMENT TO THE MARKET ASX Appendix 4D Results for announcement to the market 1 Report for the half year ended 31 March 2025 2 Revenue from ordinary activities a,b ($m)up2%to$10,793 Profit from ordinary activities after tax attributable to equity holders b ($m)d…”
- AIA — Auckland International Airport Limited: AIA - FY25 Interim Results2025-02-19
“• • • • • • • • • • • --- Interim Financial Statements 2025 Contents Financial Statements02 Notes and accounting policies07 Shareholder information22 Corporate directory23 01 Interim Financial Statements 202501 Consolidated interim income statement FOR THE SI…”