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FULL YEAR ENDED 30 SEPTEMBER 2019 R E S U LT S P R E S E N TAT I - PowerPoint PPT Presentation

Oct 31, 2023 •379 likes •1.62k views

For personal use only 2019 FULL YEAR RESULTS FULL YEAR ENDED 30 SEPTEMBER 2019 R E S U LT S P R E S E N TAT I O N & I N V E S TO R D I S C U S S I O N PA C K CONTENTS 2019 FULL YEAR RESULTS For personal use only CEO and CFO

  1. REGULATORY DEVELOPMENTS For personal use only IN CONSULTATION STAGE APRA LEVEL 1 & LEVEL 2 FY19 NET ORGANIC CAPITAL SEP-19 CET1 RATIOS APRA - Investments in subsidiaries (APS111) GENERATION  bps RBNZ - Capital proposals  APRA - Ongoing APRA regulatory reviews 1  165 RECENTLY FINALISED (IMPLEMENTING) 11.4% 11.4% ~136 APRA APRA APRA Level 2 APRA - Limits on related party exposures (APS222) Level 2 Level 1  APRA Level 1 APRA - Loss absorbing capacity (TLAC)  Level 1 lower than Level 2 due to ~$1.5b lower NZ dividends in 2019 1. Other ongoing APRA regulatory reviews potentially impacting the future capital position include: Revisions to capital framework (RWA) and Unquestionably Strong capital calibration, Transparency, Comparability and Flexibility proposals, revisions to Interest Rate Risk to the Banking Book and Market Risk. 19

  2. FINANCIAL PERFORMANCE CASH PROFIT CONTINUING OPERATIONS For personal use only CASH PROFIT DRIVERS $m 79 6,487 1 131 6,470 -94 -134 -21% 0% 0% 20% -5% FY18 Large / Notable Revenue Expenses Provisions Tax & NCI FY19 items after tax 1 CASH PROFIT DIVISIONAL PERFORMANCE $m Australia Retail & 79 FY19 v FY18 Institutional NZ (NZD) 6,487 151 6,470 Commercial 14 172 Income -6% 5% 2% -22 -411 Expenses 0% -3% 5% Includes $79m from share of associates profit Cash Profit -10% 11% -4% FY18 Large / Australia Institut. Markets NZ Other FY19 Notable Retail & (ex. items Comm. Markets) after tax 1 1. Details of large / notable items provided in the investor discussion pack – additional financials section 20

  3. AUSTRALIA RETAIL & COMMERCIAL INCOME EXCLUDING LARGE / NOTABLE ITEMS AND HOUSING PORTFOLIO For personal use only INCOME COMPOSITION HOUSING PORTFOLIO 1,2 $m $b 264 272 265 10,165 7 9 8 9,575 26 37 49 14 3,238 22 3,114 33 54 49 39 4,807 4,768 1,590 1,524 6,927 6,461 164 156 134 3,244 3,217 FY18 FY19 1H19 2H19 Sep-17 Sep-18 Sep-19 OO P&I Inv P&I OO I/O Inv I/O Equity Manager Retail Commercial 1. Includes Non Performing Loans 2. The current classification of Investor vs Owner Occupier is based on ANZ’s product category, determined at origination as adv ised by the customer and the ongoing precision relies 21 primarily on the customer’s obligation to advise ANZ of any change in circumstances

  4. AUSTRALIA RETAIL & COMMERCIAL - HOUSING MOMENTUM For personal use only IMPROVING MOMENTUM HOME LOAN APPLICATION TREND 3 month rolling average (Index Sep 2017 = 100) Clarity and consistency on policy and risk settings  “Offer So Good” campaign – July 2 to August 31 110 Approval turnaround times  100 90 Industry conditions  80 70 OUTLOOK 60 50 Pick up in application volumes in 4Q19  40 30 Improved momentum into 1Q20  20 10 Faster loan amortisation in a low rate environment  0 Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- 17 17 18 18 18 18 19 19 19 22

  5. INSTITUTIONAL INCOME CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS For personal use only INSTITUTIONAL INCOME COMPOSITION 1 MARKETS INCOME COMPOSITION $m $m +5% -1% 5,198 1,780 1,766 4,970 42 63 38 48 446 1,766 566 1,780 -4% -12% 2,657 940 2,541 23 361 470 19 826 271 448 256 48 940 826 190 1,296 1,173 235 236 234 126 644 652 921 880 463 1,625 459 1,521 815 810 -10 FY18 FY19 1H19 2H19 FY18 FY19 1H19 2H19 L&SF PCM Trade Markets Other Franchise Sales Franchise Trading Balance Sheet DVA 2 1. L&SF: Loans & Specialised Finance; PCM: Payments & Cash Management; Trade: Trade & Supply Chain 2. Derivative valuation adjustments 23

  6. NET INTEREST MARGIN CONTINUING OPERATIONS For personal use only GROUP NET INTEREST MARGIN (NIM) bps 180 -2 1 175 -2 2 -1 172 -4 -2 -6bps impact of lower rates -5bps -8bps 1H19 Asset & Treasury Deposits Wholesale Assets 2H19 Markets Large / 2H19 Funding Mix Funding Cost Underlying 1 Balance Sheet Notable Items Activities 2 1. Excluding large / notable items and Markets Balance Sheet activities 2. Includes the impact of growth in discretionary liquid assets and other balance sheet activities 24

  7. MARGIN ENVIRONMENT For personal use only LOW RATE ENVIRONMENT SWITCHING FROM INTEREST ONLY TO PRINCIPAL & INTEREST Sep-19 $b Sensitivity to a 25bps drop in AUD, NZD and USD interest rates 24 23 20 8 Deposits & earnings on capital ~3 bps 16 10 6 11 7 $b 6 16 14 13 ~110 FY17 FY18 FY19 FY20 FY21 FY22 FY23+ Early conversions Contractual conversions Contractual (still to convert) BILLS/OIS SPREAD 1H19 average 48 bps 2H19 average 27 bps bps ~53 10 bps mvmt. in BBSW/OIS 1 bp NIM 75 60 45 30 15 0 Low rate deposits <25bps Capital (excluding intangibles) and Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jan- Sep- other non interest bearing liabilities 17 18 18 18 18 19 19 19 19 Spot 3mth Bills/OIS Spread Rolling 90 days 25

  8. EXPENSES CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS For personal use only FY19 EXPENSE DRIVERS $m 136 8,563 170 8,562 -259 -48 Includes Includes Personnel & Regulatory & Property Compliance productivity $125m (net of $160m inflation) -1.6% 0% FY18 FX BAU D&A Investment FY19 26

  9. INVESTMENT SPEND CONTINUING OPERATIONS For personal use only TOTAL INVESTMENT SPEND BY DIVISION 1 Capex and Opex $m 1,403 113 1,234 1,218 1,179 85 1,153 61 204 66 75 127 150 137 129 160 169 252 164 175 197 204 204 164 187 164 144 135 176 177 564 491 473 430 410 FY15 FY16 FY17 FY18 FY19 Australia Retail & Commercial Property & Enablement Technology Infrastructure Institutional Digital, Data & Payments New Zealand 1. Prior periods restated from previously reported information to include technology infrastructure spend, property projects and scaled agile delivery 27

  10. INVESTMENT SPEND CONTINUING OPERATIONS For personal use only TOTAL INVESTMENT SPEND 1 CAPITALISED SOFTWARE BALANCE Capex and Opex $m $m 1,403 2,893 1,234 1,218 1,179 1,153 2,202 33% 1,856 70% 59% 58% 65% 1,421 1,323 67% 42% 41% 35% 30% FY15 FY16 FY17 FY18 FY19 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Investment expensed Investment capitalised 1. Prior periods restated from previously reported information to include technology infrastructure spend, property projects and scaled agile delivery 28

  11. CREDIT QUALITY PROVISION CHARGE For personal use only CREDIT IMPAIRMENT CHARGE INDIVIDUAL PROVISION CHARGE $m $m 1,956 1,047 892 787 554 1,199 398 430 343 0.34% 380 795 688 0.21% 0.13% 0.12% FY16 FY17 FY18 FY19 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1 IP Charge CP Charge CIC as % Avg. GLA New Increased Writebacks & Recoveries 1. Increase to New and Increased Individual Provisions and Writebacks & Recoveries compared to prior half is largely related to the home loan portfolio in Australia Retail and Commercial following the implementation of a more market responsive collateral valuation methodology 29

  12. CREDIT QUALITY For personal use only GROSS IMPAIRED ASSETS NEW IMPAIRED ASSETS $b $b 4 3.63 3.21 3.17 3 2.11 2.01 2 1 2.38 0 FY16 FY17 FY18 FY19 1 2.14 2.03 Australia Retail & Commercial New Zealand Institutional Other AUSTRALIAN HOUSING 90+ DAYS PAST DUE 2 % 1.2 1.1 1.0 0.9 0.8 0.7 0.6 Sep-16 Sep-17 Sep-18 Sep-19 Sep- Mar- Sep- Mar- Sep- Mar- Sep- 16 17 17 18 18 19 19 Australia Retail & Commercial New Zealand Institutional Other 1. New Impaired Assets in 2H19 includes a $167m uplift on 1H19 in Australia home loans following the implementation of revised provisioning and impairment processes (including a more market responsive collateral valuation methodology). The increase in new impairments was largely offset by the return of previously impaired Home Loan assets to a past due but not impaired status 2. As a % of Gross Loans and Advances. Includes Non Performing Loans. ANZ 90+ days past due calculated on a missed payment basis 30

  13. CUSTOMER REMEDIATION For personal use only TOTAL REMEDIATION - POST TAX IMPACT $m 559 Financial impact 154 $ 826m ($682m post tax) charge in FY19 377  127 $1,579m ($1,216m post tax) charges since 1H17  405 123 250 72 53 45 40 $1,139m provisions on balance sheet at 30 Sep 2019 70  1H17 2H17 1H18 2H18 1H19 2H19 Discontinued Continuing Progress to date 1 Banking product & service review well progressed  TOTAL REMEDIATION – P&L IMPACT 13% 16% 18% 28% Remediation of advice & other wealth products continue  21% 41% 19% 55% 61% Over 1,000 staff progressing remediation activities 52%  43% 32% 1H18 2H18 1H19 2H19 Net interest income Other operating income Expenses 1. Salaried Financial Planner fee for no service addressed in prior years (>$150m cumulative pre-tax charges). 31

  14. DIVIDEND PROPOSED 2019 FINAL DIVIDEND 80 CPS, 70% FRANKED For personal use only DIVIDEND PER SHARE SHARES ON ISSUE 1 cents #m Benefiting from $3b buy-back & 6 consecutive halves of DRP 160 160 160 neutralisation 2,926 2,903 2,843 80 80 80 80 80 80 FY17 FY18 FY19 FY17 FY18 FY19 Interim Final 1. Cash Continuing weighted average number of ordinary shares 32

  15. DIVIDEND GEOGRAPHIC EARNINGS For personal use only AUSTRALIA GEOGRAPHY EARNINGS & DPOR 1 GEOGRAPHIC EARNINGS 1 % of total Group Statutory Profit 82% 10% 11% 11% 76% 16% 16% 73% 72% 69% 26% 25% 28% 64% 64% 22% 62% 29% 61% 55% 64% 64% 62% 61% 55% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 DPOR Australia Geography earnings (% of total statutory earnings) Australia New Zealand International 1. Statutory Profit basis 2. DPOR: Dividend payout ratio 33

  16. 1H20 CONTEXT For personal use only  Home loan momentum  Low interest rate environment  Markets  Costs  Regulatory capital 34

  17. For personal use only 2019 FULL YEAR RESULTS — INVESTOR DISCUSSION PACK GROUP & DIVISIONAL PERFORMANCE

  18. FINANCIAL PERFORMANCE – STATUTORY TO CASH PROFIT For personal use only STATUTORY PROFIT CASH PROFIT REPORTED CASH PROFIT CONTINUING OPERATIONS $m $m $m -7% 0% +6% 6,938 6,406 6,400 6,809 6,487 6,470 5,953 5,709 6,161 5,889 5,889 5,805 FY16 1 FY17 1 FY18 FY19 FY16 1,2 FY17 1 FY18 FY19 FY16 1 FY17 1 FY18 FY19 STATUTORY TO CASH ADJUSTMENTS Cash profit represents ANZ’s preferred measure of the result of the ongoing 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. Cash Profit continuing operations excludes the financial results of the Wealth Australia businesses being divested and associated Group reclassification and consolidation impacts treated as discontinued operations from a financial reporting perspective. 1. FY16 and FY17 have not been restated for AASB15 impacts 2. FY16 has not been restated to reflect discontinued operations 36

  19. LARGE / NOTABLE (L/N) ITEMS 1 For personal use only 1H17 2H17 1H18 2H18 1H19 2H19 Cash Profit Continuing Operations ($m) 3,355 3,454 3,493 2,994 3,564 2,906 Gain / (Loss) on sale from divestments -284 14 138 53 187 18 Divested business results 274 187 70 56 25 7 Customer remediation -40 -72 -45 -250 -70 -405 Restructuring -25 -18 -55 -104 -36 -18 Royal Commission legal costs 0 0 -11 -27 -9 -1 Gain on sale of 100 Queen St. Melbourne 112 0 0 0 0 0 Accelerated software amortisation 0 0 0 -206 0 0 Total L/N within Cash Continuing Profit 37 111 97 -478 97 -399 Cash Profit ex L/N 3,318 3,343 3,396 3,472 3,467 3,305 Cash Profit ex L/N Growth HOH 0.75% 1.59% 2.24% -0.14% -4.67% Cash Profit ex L/N Growth PCP 2.35% 3.86% 2.09% -4.81% 1H17 2H17 1H18 2H18 1H19 2H19 Gain / (Loss) on Sale from divestments ($m) Asia Retail    MCC   SRCB  UDC   Cambodia JV   OPL NZ    PNG Retail, Com, SME   Paymark  Divested Business Results ($m) SRCB  Asia Retail    MCC    OPL NZ      Paymark      Cambodia JV       PNG Retail, Com, SME       1. Large / notable items exclude the gain / (loss) on sale and divested business results of OnePath Life and One Path P&I, both accounted for as discontinued businesses. 37

  20. CUSTOMER REMEDIATION For personal use only CUSTOMER REMEDIATION CONTINUING OPERATIONS CUMULATIVE CUSTOMER REMEDIATION 1,579 PRE TAX $m PRE TAX $m 485 422 928 119 753 256 181 1,157 352 29 672 220 572 153 51 86 1H17 2H17 1H18 2H18 1H19 2H19 110 POST TAX $m 1,216 337 334 100 657 534 22 67 180 156 127 882 19 42 13 157 477 112 407 40 35 36 1H18 2H18 1H19 2H19 1H17 2H17 1H18 2H18 1H19 2H19 Net interest income Other operating income Expenses Discontinued (Wealth businesses) Continuing operations 38

  21. FINANCIAL PERFORMANCE CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS For personal use only FY19 FY19 CASH PROFIT DRIVERS $m FY18 FY19 FY19 v FY18 2019 SECOND HALF PERFORMANCE $m 6,868 Cash Profit 6,487 6,470 0% 1 131 6,772 Large/Notable items (L/N) -381 -302 -94 Cash Profit ex L/N 6,868 6,772 -1% Australia Retail & Commercial 3,992 3,581 -10% -134 0% 0% +20% -1% Institutional 1,666 1,852 +11% New Zealand (NZD) 1,597 1,526 -4% FY18 Revenue Expenses Provisions Tax & NCI FY19 2H19 2H19 CASH PROFIT DRIVERS $m $m 2H18 1H19 2H19 2H19 v 1H19 3,467 Cash Profit 2,994 3,564 2,906 -18% 56 3,305 Large/Notable items (L/N) -478 97 -399 -130 Cash Profit ex L/N 3,472 3,467 3,305 -5% -82 -6 Australia Retail & Commercial 1,959 1,786 1,795 1% Institutional 911 1,004 848 -16% -1% +2% +2% -5% New Zealand (NZD) 817 782 744 -5% 1H19 Revenue Expenses Provisions Tax & NCI 2H19 39

  22. BALANCE SHEET STRENGTH CAPITAL REALLOCATION & FLEXIBILITY For personal use only CAPITAL REALLOCATION 1 CAPITAL FLEXIBIILTY % CET1 CAPITAL FREED UP FROM TRANSFORMATION $b 11.9 11.9 SEPTEMBER 2015 PRO-FORMA SEPTEMBER 2019 2,3 INCLUDING ANNOUNCED ASSET DISPOSALS Institutional Retained for growth 4.5 reshaping and capital 5.6 management Net Imposts 2.5 Announced asset sales 7.4 Cash not yet 0.8 received Announced buy-back 3.0 completed Source Use Institutional 1 Retail & Commercial Wealth 1. Allocation based on Regulatory Capital. Institutional shown under 2015 IIB Structure, including Institutional, Asia Partnerships and Asia Retail & Pacific 2. Pro-Forma adjusted for all announced Asset disposals – OnePath P&I. 3. ANZ lenders mortgage insurance, ANZ share investing, general insurance distribution and Wealth continuing operations (collectively ~1% of Group Capital) included in Retail and Commercial 40

  23. BALANCE SHEET COMPOSITION BY SEGMENT For personal use only NET LOANS & ADVANCES CUSTOMER DEPOSITS $b $b 615 512 606 1 4 580 487 4 468 7 2 165 150 132 217 206 189 97 97 96 14 13 14 102 98 95 341 339 331 189 182 184 -1 Sep-17 Sep-18 Sep-19 Sep-17 Sep-18 Sep-19 Housing (Aus & NZ) Commercial (Aus & NZ) Other Retail (Aus & NZ) Institutional Other Retail (Aus & NZ) Institutional Commercial (Aus & NZ) Other 41

  24. REVENUE PERFORMANCE CONTINUING OPERATIONS For personal use only TOTAL REVENUE OTHER OPERATING INCOME CONTINUING OPERATIONS EX LARGE / NOTABLE ITEMS CONTINUING OPERATIONS EX LARGE / NOTABLE ITEMS $b $b $b $b -3% 0% 0% -2% 4.9 4.7 4.9 4.5 4.7 4.5 0.2 0.3 19.8 19.1 0.2 19.0 18.9 19.4 0.2 19.0 0.3 0.3 0.8 0.5 0.8 0.4 0.9 0.6 4.7 4.5 4.9 4.5 4.9 4.7 2.2 2.5 2.4 2.7 2.5 2.6 14.4 14.5 14.4 14.9 14.5 14.3 1.4 1.4 1.3 1.3 1.1 1.1 FY17 1 FY18 FY19 FY17 1 FY18 FY19 FY17 1 FY18 FY19 FY17 1 FY18 FY19 Net interest income Other operating income Markets Fee & comm. Other Assoc. profit 1. FY17 has not been restated for AASB15 impacts 42

  25. EXPENSE MANAGEMENT CONTINUING OPERATIONS For personal use only TOTAL EXPENSES FULL TIME EQUIVALENT STAFF CONTINUING OPERATIONS EX LARGE / NOTABLE ITEMS CONTINUING OPERATIONS $b $b #‘000s #‘000s -4% 0% 9.4 9.1 9.0 37.9 8.6 8.6 50.2 8.5 37.6 1.7 3% 3% 46.6 1.5 1.9 44.9 1.4 1.5 1.5 0.2 0.1 39.9 0.1 28% 29% 39.1 1.6 1.9 1.6 1.5 1.6 1.5 0.9 16% 0.8 0.8 0.9 0.8 16% 0.8 16% 15% 42.9 37.9 37.6 4.9 4.8 4.8 4.7 4.7 4.6 37% 37% FY17 1 FY18 FY19 FY17 1 FY18 FY19 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-18 Sep-19 Personnel Premises Technology Restructuring Other Discontinued Business Australia R&C TSO & Group Centre Continuing Business Institutional Pacific NZ 1. FY17 has not been restated for AASB15 impacts 43

  26. NET INTEREST MARGINS GROUP & DIVISIONAL MARGIN PERFORMANCE CONTINUING OPERATIONS For personal use only FULL YEAR GROUP AUSTRALIA RETAIL & INSTITUTIONAL NEW ZEALAND COMMERCIAL bps bps bps bps 199 274 101 242 269 236 233 259 187 176 88 82 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 HALF YEAR GROUP AUSTRALIA RETAIL & INSTITUTIONAL NEW ZEALAND COMMERCIAL bps bps bps bps 182 261 261 86 241 180 258 85 239 172 227 80 2H18 1H19 2H19 2H18 1H19 2H19 2H18 1H19 2H19 2H18 1H19 2H19 44

  27. RISK ADJUSTED PERFORMANCE CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS For personal use only GROUP 1 AUSTRALIA RETAIL & INSTITUTIONAL 1 NEW ZEALAND COMMERCIAL NET INTEREST INCOME / AVERAGE CREDIT RISK WEIGHTED ASSETS % 4.54 4.55 6.07 2.33 5.36 4.52 5.31 5.31 4.43 5.89 5.21 5.86 2.25 2.24 5.81 2.14 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 AVERAGE CREDIT RISK WEIGHTED ASSETS $b 312 143 113 53 310 142 141 52 306 305 139 110 50 50 105 103 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1. Excluding Markets business unit and balance sheet impacts of divestments 45

  28. DIVISIONAL PERFORMANCE CASH PROFIT For personal use only CONTINUING OPERATIONS CONTINUING OPERATIONS EX LARGE / NOTABLE ITEMS REVENUE EXPENSES REVENUE EXPENSES $b $b $b $b 19.4 19.0 19.0 18.9 1.0 1.0 0.6 0.8 3.3 3.3 3.2 3.3 5.1 5.0 5.3 5.2 9.4 8.6 8.6 9.1 1.2 1.0 1.0 1.0 1.2 1.2 1.3 1.3 2.9 2.7 2.6 2.7 10.0 10.2 9.4 9.6 4.1 4.1 3.8 3.7 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 Australia Retail & Commercial Institutional NZ Other Australia Retail & Commercial Institutional NZ Other 46

  29. DIVISIONAL GROWTH RATES CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS For personal use only FY19 v FY18 Revenue Expenses Pre Provision Profit Cash Profit FY19 Cash Profit ($m) Australia Retail & Commercial -6% 0% -9% -10% 3,581 Institutional 5% -3% 14% 11% 1,852 New Zealand (NZD) 2% 5% -1% -4% 1,526 Other 19% 0% -35% -59% -104 2H19 v 1H19 Revenue Expenses Pre Provision Profit Cash Profit 2H19 Cash Profit ($m) Australia Retail & Commercial -1% 1% -2% 1% 1,795 Institutional -4% -1% -8% -16% 848 New Zealand (NZD) 1% 8% -2% -5% 744 Other 0% 4% 20% -32% -42 47

  30. AUSTRALIA RETAIL & COMMERCIAL FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS For personal use only $m FY18 FY19 FY19 v FY18 1H19 2H19 2H19 v 1H19 Income 10,165 9,575 -6% 4,807 4,768 -1% Net interest income 8,540 8,178 -4% 4,114 4,064 -1% Other operating income 1,625 1,397 -14% 693 704 2% Expenses 3,756 3,743 -0% 1,858 1,885 1% Profit before provisions 6,409 5,832 -9% 2,949 2,883 -2% Provisions 698 712 2% 396 316 -20% Cash profit continuing 3,992 3,581 -10% 1,786 1,795 1% Return on Avg RWAs 2.48% 2.25% -23bps 2.24% 2.26% +2bps Operating expense to operating income 37.0% 39.1% +214bps 38.7% 39.5% +88bps Total credit impairment charge/Avg GLAs 0.21% 0.21% 0bps 0.23% 0.19% -4bps INCOME DRIVERS FY19 V FY18 (YOY) INCOME DRIVERS 2H19 V 1H19 (HOH) $m $m 4,807 22 4,768 10,165 7 4 2 9,575 -57 -59 -13 -307 -189 -39 FY19 v FY18 $m % 2H19 v 1H19 $m % Net interest income -362 -4% Net interest income -50 -1% Retail NII -277 -5% Retail NII +21 +1% Commercial NII -85 -3% Commercial NII -71 -5% Other operating income -228 -14% Other operating income +11 +2% FY18 Volumes Margin Retail Fee Comm. Other FY19 1H19 Volumes Margin Retail Fee Comm. Other 2H19 Income Fee Income Fee income income 48

  31. AUSTRALIA RETAIL & COMMERCIAL FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS For personal use only Productivity initiatives including Slower credit demand, tighter Lower collective provision charge workforce and branch optimisation home loan origination risk reflects reduced FUM. have offset increased compliance Profit and Returns settings, increased competition, Credit provisions remain below costs and technology deposit margin impacts long-run averages infrastructure spend Income ($m) Expenses ($m) Total Provisions ($m) Cash Profit ($m) 5,137 1,898 396 2,046 1,885 5,028 1,858 1,858 386 4,807 1,946 4,768 316 312 1,786 1,795 350 375 355 338 46 11 -25 -39 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 IP CP NLAs ($b) & NIM FTE Risk Weighted Assets ($b) Return 14,673 6.36% 6.25% 340 341 337 13,903 6.04% 6.02% 332 13,731 13,660 162 161 159 159 2.79% 2.65% 2.63% 2.62% 2.53% 2.42% 2.24% 2.26% 1H18 2H18 1H19 2H19 Mar-18 Sep-18 Mar-19 Sep-19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 Revenue / Avg RWA NLA NIM% Return on Avg RWA 49

  32. AUSTRALIA - RETAIL CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS For personal use only NET INTEREST INCOME OTHER OPERATING INCOME 2H19 v Financial performance ($m) 2H18 1H19 2H19 1H19 $m $m 2,812 2,778 579 2,757 Revenue 3,391 3,217 3,244 1% 466 460 Expenses 1,287 1,250 1,312 5% Profit Before Provisions 2,104 1,967 1,932 -2% 2H18 1H19 2H19 2H18 1H19 2H19 Provisions 201 230 162 -30% NET LOANS & ADVANCES CUSTOMER DEPOSITS $b $b NPAT 1,330 1,215 1,238 2% 283 121 279 120 275 117 2H19 v Operational metrics 2H18 1H19 2H19 1H19 FTE 11,320 11,150 11,287 2% 2H18 1H19 2H19 2H18 1H19 2H19 Branches 629 593 577 -3% Lower lending volumes with slower system credit growth, competition and • Digital Branches 114 128 142 11% tighter home loan origination risk settings Total Retail customers (#m) 5.74 5.80 5.87 1% NIM impacted by home loan mix changes and higher discounting, the • Retail customers > 1 product (#m) 4.81 4.87 4.90 1% impact of deposit rates and regulatory impact on credit card pricing. This was partially offset by home loans re-pricing Digitally active customers (#m) 1 3.50 3.56 3.60 1% Other operating income impacted by removal of fees and lower volumes • Digital sales (% of sales) 1 25.2 27.3 30.0 268bps Significant progress in 2H19 on lifting momentum in home loans with • Supported wallet transactions (#m) 38.2 51.0 69.0 35% applications up half-on-half 1. Digitally active customers & Digital Sales are inclusive of both Retail and Commercial customers 50

  33. AUSTRALIA – COMMERCIAL CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS For personal use only NET INTEREST INCOME OTHER OPERATING INCOME 2H19 v Financial performance ($m) 2H18 1H19 2H19 1H19 $m $m 1,385 1,357 252 238 1,286 233 Revenue 1,637 1,590 1,524 -4% Expenses 571 608 573 -6% Profit Before Provisions 1,066 982 951 -3% 2H18 1H19 2H19 2H18 1H19 2H19 Provisions 185 166 154 -7% NET LOANS & ADVANCES CUSTOMER DEPOSITS $b $b NPAT 616 571 557 -2% 58 87 57 57 86 83 2H19 v Operational metrics 2H18 1H19 2H19 1H19 FTE 2,411 2,510 2,616 4% 2H18 1H19 2H19 2H18 1H19 2H19 Total Commercial customers (#k) 490.9 490.2 495.6 1% Revenue performance impacted by subdued credit growth, volume • reductions, competition and deposit margin compression Comm Customers > 1 product (#k) 218.8 217.9 218.9 0% Commercial lending volumes flat half-on-half, down 2% year-on-year, • with reduction in Small Business Banking volumes, subdued Business RWA Intensity (Avg RWA / Avg GLA) 104% 102% 99% -270bps Banking growth and Asset Finance run off Credit impairment / Avg GLA (%) 0.71 0.64 0.59 -5bps Commercial deposit growth up 5% year-on-year, driven by Small • Business Banking (+5%), Business Banking (+3%) and Private Bank Growth in specialist channels 1 6% 3% 4% 116bps (+8%). Commercial Deposit to Loan ratio now above 1.5:1 1. NLA FUM growth in specialised businesses (Health, Property, Agribusiness & Emerging Corporate) 51

  34. AUSTRALIA RETAIL & COMMERCIAL BALANCE SHEET For personal use only NET LOANS & ADVANCES 1 CUSTOMER DEPOSITS Customer preferences favouring saving $b Commercial $b products in low rate environment and Subdued system growth & increased competition transactional digital payments offering offset by specialist segment growth Retail - Housing Refer ‘Housing section’ for further detail 208 341 340 204 337 203 203 335 201 332 30 27 28 28 58 58 26 57 58 57 12 11 11 27 13 27 10 27 27 28 86 87 83 80 87 58 56 58 58 61 183 186 185 185 177 92 93 92 89 87 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Comm Other Retail Housing - Inv Housing - OO Transact Offset Term Deposit Savings 1. Housing - OO includes Equity Manager; Other retail includes Australia Wealth retained 52 52

  35. INSTITUTIONAL FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS For personal use only $m FY18 FY19 FY19 v FY18 1H19 2H19 2H19 v 1H19 Income 4,970 5,198 5% 2,657 2,541 -4% Net interest income 2,934 3,025 3% 1,548 1,477 -5% Other operating income 2,036 2,173 7% 1,109 1,064 -4% Expenses 2,661 2,575 -3% 1,293 1,282 -1% Profit before provisions 2,309 2,623 14% 1,364 1,259 -8% Provisions -46 -3 Large -34 31 Large Cash profit continuing 1,666 1,852 11% 1,004 848 -16% Return on Avg RWAs 1.03% 1.10% +7 bps 1.22% 0.99% -23 bps Operating expense to operating income 53.5% 49.5% -402 bps 48.7% 50.4% +178 bps Total credit impairment charge / Avg GLAs -0.03% 0.00% +3 bps -0.04% 0.04% +8 bps INCOME DRIVERS FY19 V FY18 (YOY) 1 INCOME DRIVERS 2H19 V 1H19 (HOH) 1 $m $m 104 5,198 2,657 122 22 4,970 -6 8 2,541 -14 -5 -114 -2 -3 -12% -1% +1% -1% -1% +5% +10% +7% FY18 Markets Trade PCM L&SF Other FY19 1H19 Markets Trade PCM L&SF Other 2H19 1. L&SF = Loans and Specialised Finance; Trade = Trade and Supply Chain; PCM = Payments and Cash Management 53

  36. INSTITUTIONAL FY19 FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS For personal use only Continued momentum and Productivity focus maintained, Credit charges remained below Targeted profitable growth and customer revenue growth absolute cost reduction long run trend improved returns Income ($m) Expenses ($m) Total Provisions ($m) Cash Profit ($m) 5,501 2,772 89 1,877 1,852 2,661 5,198 2,575 4,970 1,666 4,341 4,061 4,057 54% 50% 50% -3 -46 FY17 3 FY18 FY19 FY17 3 FY18 FY19 FY17 3 FY18 FY19 FY17 FY18 FY19 Revenue Customer Revenue Expenses Cost-to-income ratio Risk Adjusted Margin FTE Avg. Risk Weighted Assets ($b) Return 6,135 2.28% 3.24% 2.20% 3.07% 3.09% 170 5,566 168 5,458 2.04% 162 1.1% 1.1% 1.0% FY17 FY18 FY19 Sep-17 Sep-18 Sep-19 FY17 FY18 FY19 FY17 3 FY18 FY19 Risk adjusted NIM 1 Revenue / Avg RWA Return on Avg RWA 2 1. Institutional ex-Markets net interest income divided by average credit risk weighted assets 2. Cash profit divided by average risk weighted assets 54 3. FY17 has not been restated for AASB15 impacts

  37. INSTITUTIONAL 2H19 FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS For personal use only Subdued market environment Seventh consecutive half of Low credit charges indicate Economic conditions in 2H19 resulted in lower 2H19 revenue absolute cost reduction continued portfolio health impacted returns Income ($m) Expenses ($m) Total Provisions ($m) Cash Profit ($m) 2,657 48 1,004 1,347 2,541 2,511 2,459 31 910 1,314 848 1,293 1,282 756 55% 52% 2,168 2,174 50% 49% 2,076 1,981 -34 -94 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 Revenue Customer Revenue Expenses Cost-to-income ratio Risk Adjusted Margin FTE Avg. Risk Weighted Assets ($b) Return 5,879 2.33% 3.22% 2.25% 2.24% 3.08% 3.07% 171 2.14% 2.97% 166 163 160 5,566 5,469 5,458 1.22% 1.11% 0.99% 0.95% 1H18 2H18 1H19 2H19 Mar-18 Sep-18 Mar-19 Sep-19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 Revenue / Avg RWA Risk adjusted NIM 1 Return on Avg RWA 2 1. Institutional ex-Markets net interest income divided by average credit risk weighted assets 2. Cash profit divided by average risk weighted assets 55

  38. INSTITUTIONAL TOTAL REVENUE REDUCED IN 2H19 IN MARKETS AND INTERNATIONAL, CUSTOMER REVENUE REMAINED STABLE For personal use only REVENUE BY PRODUCT 1,2 AVERAGE CREDIT RWA 1,2 +4% -4% $m $b 147 2,657 142 2,541 2,511 138 135 2,459 4 23 2 19 18 2 2 30 35 33 33 940 32 826 884 896 18 18 18 19 236 234 224 224 644 652 595 578 89 91 85 82 815 810 732 789 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 L&SF PCM Trade Markets Other L&SF Trade Markets Other CUSTOMER REVENUE 1 REVENUE BY REGION 1 $m $m -4% 0% 2,657 2,541 2,511 2,459 2,168 2,174 2,076 1,981 1,443 1,445 1,355 1,450 1,314 1,342 1,292 1,227 266 279 260 295 204 225 205 211 948 825 801 801 649 579 606 543 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 International NZ Aus & PNG International NZ Aus & PNG 1. All numbers are excluding large / notable items 2. L&SF = Loans and Specialised Finance; Trade = Trade and Supply Chain; PCM = Payments and Cash Management 56

  39. INSTITUTIONAL MARKETS INCOME LOWER INCOME FROM BALANCE SHEET TRADING PARTLY OFFSET BY STRENGTH IN THE FRANCHISE BUSINESS For personal use only MARKETS INCOME COMPOSITION 1 YOY MARKETS AVERAGE VALUE AT RISK (99% VAR) -1% $m $m 2,332 40 229 1,780 1,766 625 63 38 30 446 566 557 20 361 271 10 921 921 880 0 FY17 FY18 FY19 1H17 2H17 1H18 2H18 1H19 2H19 Franchise Sales Franchise Trading Balance Sheet Derivative valuation adj. Traded Non-traded MARKETS INCOME COMPOSITION 1 HOH VOLATILITY Lower revenue in 2H19 impacted by: $m Indexed: rebased to 100 (1H17) • Flattening & 1,355 inverting yield -12% 162 curves 100 977 940 • Lower volatility in 896 349 884 826 67 11 52 FX and rates 256 48 276 292 274 190 368 markets 235 190 126 162 110 80 Customer Franchise 477 449 459 463 445 430 Sales remains stable -10 60 1H17 2H17 1H18 2H18 1H19 2H19 1H17 2H17 1H18 2H18 1H19 2H19 Franchise Sales Franchise Trading Balance Sheet Derivative valuation adj. Currencies (CVIX) 2 Rates (SR VIX) 3 AUD/USD Vol 4 1. All numbers are excluding large / notable items 2. Deutsche Bank Currency Volatility Index – avg for each period shown 3. CBOE Interest Rate Volatility Index – avg for each period shown 57 4. AUD vs. USD 3 month at-the-money implied volatility – average for each period shown

  40. INSTITUTIONAL SEVENTH CONSECUTIVE HALF OF ABSOLUTE COST REDUCTION For personal use only EXPENSE CONTRIBUTION 1 FY19 EXPENSE DRIVERS 1 $m $m -3% 20 -4% 85 -2% 2,661 -2% 1,494 -2% 2,575 -2% -80 -2% 1,431 -1% 1,400 -111 1,372 1,347 1,314 1,293 1,282 711 692 656 680 645 FY18 FX Inflation D&A Productivity FY19 643 638 633 FTE 1 # 87 86 79 82 6,308 90 84 6,135 81 87 5,879 5,566 5,469 5,458 2,194 2,155 2,082 1,947 1,985 1,981 365 353 696 366 660 658 358 322 323 620 601 587 574 563 2,652 2,553 2,420 2,246 2,235 2,258 1,098 1,074 1,011 1,015 927 897 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Aus & PNG NZ International Aus & PNG NZ International Operations Hubs 2 1. All numbers are excluding large / notable items 2. The costs associated with Operations hubs are allocated to all geographies 58

  41. INSTITUTIONAL VOLUME & MARGINS: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS For personal use only NIM BY REGION 3 VOLUMES 1 $b bps 125 122 112 241 105 238 104 235 98 97 95 231 208 207 206 199 161 158 156 147 149 145 139 138 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 Gross Loans & Advances Customer Deposits Aus & PNG NZ International Institutional RISK ADJUSTED NIM 4 AVERAGE CREDIT RWA 2 bps $b 147 142 138 135 268 269 260 262 256 35 256 252 246 33 33 32 233 225 224 18 214 18 18 19 181 171 168 161 91 89 85 82 2 2 2 4 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 Markets Trade L&SF Other Aus & PNG NZ International Institutional 1. Average Gross Loans & Advances for L&SF and Trade; average customer deposits for Payments and Cash Management 2. Trade = Trade and Supply Chain L&SF = Loans and Specialised Finance 3. Institutional ex-Markets net interest margin 4. Institutional ex-Markets net interest income divided by average credit risk weighted assets 59

  42. NEW ZEALAND DIVISION FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS For personal use only NZDm FY18 FY19 FY19 v FY18 1H19 2H19 2H19 v 1H19 Income 3,483 3,538 2% 1,756 1,782 1% Net interest income 2,881 2,939 2% 1,460 1,479 1% Other operating income 602 599 0% 296 303 2% Expenses 1,257 1,326 5% 638 688 8% Profit before provisions 2,226 2,212 -1% 1,118 1,094 -2% Provisions 6 92 large 31 61 97% Cash profit continuing 1,597 1,526 -4% 782 744 -5% Return on Avg RWAs 2.61% 2.47% -14 bps 2.54% 2.40% -14 bps Operating expense to operating income 36.1% 37.5% 139 bps 36.3% 38.6% 228 bps Total credit impairment charge / Avg GLAs 0.01% 0.07% 6 bps 0.05% 0.10% 5 bps INCOME DRIVERS FY19 V FY18 (YOY) INCOME DRIVERS 2H19 V 1H19 (HOH) NZDm NZDm 34 8 1 1,782 120 15 3,538 3,483 1,756 -2 -15 -2 -62 -16 FY19 v FY18 $m % 2H19 v 1H19 $m % Net interest income Net interest income 58 2% 19 1% Retail NII Retail NII 1 0% -3 0% Commercial NII Commercial NII 52 5% 22 4% Central Functions NII Central Functions NII 5 0 Other operating income Other operating income -3 0% 7 2% FY18 Volumes Margin Retail Fee Comm. Other FY19 1H19 Volumes Margin Retail Fee Comm. Other 2H19 Income Fee Income Fee income income 60

  43. NEW ZEALAND DIVISION FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS For personal use only Margin compression, compliance Solid home lending growth within Increased regulatory compliance Provisions returning to more costs and provisions impacting a competitive environment requirements normalised levels returns Income (NZDm) Expenses (NZDm) Total Provisions (NZDm) Cash Profit (NZDm) 817 1,782 688 61 1,756 1,731 1,752 780 782 744 638 632 625 31 22 42 36 37 19 16 -6 -14 -32 -16 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 IP CP NLAs (NZDb) & NIM FTE 1 Risk Weighted Assets (NZDb) Return 5.75% 5.67% 5.72% 5.71% 126 6,319 71 124 6,165 6,121 122 6,003 119 62 62 61 2.67% 2.55% 2.54% 2.40% 2.42% 2.41% 2.38% 2.35% 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 Mar-18 Sep-18 Mar-19 Sep-19 Mar-18 Sep-18 Mar-19 Sep-19 Revenue / Avg RWA NLAs NIM Return on Avg RWA 1. On a Continuing Operations basis 61

  44. NEW ZEALAND DIVISION – RETAIL FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS For personal use only NET INTEREST INCOME OTHER OPERATING INCOME 2H19 v Financial performance (NZDm) 2H18 1H19 2H19 1H19 NZDm NZDm 946 936 933 287 295 286 Revenue 1,232 1,223 1,228 0% Expenses 493 507 546 8% 2H18 1H19 2H19 2H18 1H19 2H19 Profit before provisions 739 716 682 -5% Provisions 17 29 16 -45% NET LOANS & ADVANCES CUSTOMER DEPOSITS NPAT 520 495 480 -3% NZDb NZDb 81.1 82.5 73.9 79.1 71.9 70.3 2H19 v Operational metrics 2H18 1H19 2H19 1H19 Sep-18 Mar-19 Sep-19 Sep-18 Mar-19 Sep-19 FTE 3,751 3,700 3,686 0% Branches 179 170 164 -6 MARKET SHARE 1 BRAND CONSIDERATION 2 Total retail customers (#m) 2.10 2.12 2.12 0% 49.4% 30.7% 33.6% 23.5% 46.1% 37.0% 36.3% Retail customers > 1 product 67% 67% 67% 0% Digitally active customers (#m) 1.43 1.47 1.50 2% Household Mortgages KiwiSaver ANZ Peer1 Peer 2 Peer 3 Digital sales (% of retail sales) 23 25 29 360 bps deposits 1. Source: RBNZ, Mortgage and Household deposits market share as at August 2019, KiwiSaver FUM market share as at June 2019 2. Source: McCulley Research (first choice or seriously considered); six month rolling average, September 2019 (major four banks) 62

  45. NEW ZEALAND DIVISION - COMMERCIAL FINANCIAL PERFORMANCE: CONTINUING OPERATIONS EXCLUDING LARGE / NOTABLE ITEMS For personal use only NET INTEREST INCOME OTHER OPERATING INCOME 2H19 v Financial performance (NZDm) 2H18 1H19 2H19 1H19 NZDm NZDm 539 517 509 10 10 Revenue 519 527 547 4% 8 Expenses 130 127 141 11% 2H18 1H19 2H19 2H18 1H19 2H19 Profit before provisions 389 400 406 1% Provisions -33 2 45 Large NET LOANS & ADVANCES CUSTOMER DEPOSITS NPAT 303 287 260 -9% NZDb NZDb 43.5 42.5 42.9 17.2 16.8 16.1 2H19 v Operational metrics 2H18 1H19 2H19 1H19 Sep-18 Mar-19 Sep-19 Sep-18 Mar-19 Sep-19 FTE 957 910 905 -1% AGRI LENDING MARKET SHARE 1 STABLE RISK PROFILE 2 Return on Avg RWA 1.97% 1.86% 1.66% -20 bps 39.1% 0.68% 32.4% 28.1% 0.52% Revenue per Avg RWA 3.38% 3.42% 3.50% 8 bps 0.50% 0.50% 0.47% 18.5 17.8 17.3 Total loss rate -0.16% 0.01% 0.21% 20 bps Sep-10 Sep-14 Aug-19 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Individual provision loss rate -0.05% 0.06% 0.09% 3 bps ANZ market share (%) ANZ Agri Lending (NZDb) 1 Source: RBNZ 2 Gross impaired assets as a % of gross loans and advances 63

  46. NEW ZEALAND DIVISION BALANCE SHEET For personal use only GROSS LOANS & ADVANCES CUSTOMER DEPOSITS NZDb NZDb 126 90 89 124 122 87 119 118 84 10% 82 11% 12% 13% 14% 31% 30% 29% 30% 29% 57% 56% 54% 52% 53% 51% 50% 51% 49% 50% 31% 32% 31% 31% 32% 21% 21% 20% 19% 19% 2% 2% 2% 3% 2% Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Housing variable Housing fixed Non-housing Other Savings Term Deposit Transact 64

  47. WEALTH AUSTRALIA DIVESTED BUSINESSES - PENSIONS AND INVESTMENTS (P&I) For personal use only FINANCIAL PERFORMANCE GROSS MARGIN 2 $m $m 104 61.0% 56.2% 57.5% 55.8% 2 91 -15 164 163 154 151 FY18 Pro- Income Expense FY19 Pro- 1H18 2H18 1H19 2H19 forma NPAT 1 forma NPAT 1 Cost-To-Income ratio (%) AVERAGE FUM 3 GUIDE TO FINANCIAL PERFORMANCE $b -1% 48.7 49.0 48.4 47.0 Prepared on a standalone pro forma basis 1 and excludes ANZ • Group consolidation adjustments Is not comparable with financial performance as reported within • ANZ discontinued operations The sale of Aligned Dealer Groups completed on 1 October 2018 • and is excluded from the above results 1H18 2H18 1H19 2H19 1. Pro forma NPAT is prepared on a consistent basis as the Underlying Profit After Tax Pre-amortisation (UNPAT) disclosed by IOOF on 17 October 2017 transaction announcement. This excludes DAC/DEF related net charges, ANZ consolidation adjustments and amortisation of acquisition related intangibles. This includes normalisation and market pricing adjustments 2. Gross margin excludes DAC/DEF related net charges and includes normalisation 3. Average Funds Under Management (FUM) excludes legacy run-off portfolio of P&I products acquired by Zurich and FUM related to ANZ Private Bank trusts (Average FUM 1H18 : $1.1b, 2H18 : 65 $1.4b, 1H19 : $1.6b, 2H19 : $1.8b)

  48. WEALTH AUSTRALIA DIVESTED BUSINESSES – P&I FUM AND FLOWS For personal use only INFLOWS AND OUTFLOWS BY SOLUTION FY19 NET FLOWS BY SOLUTION $b $m Closed solutions Open solutions FY18 FY19 Inflows Outflows Inflows Outflows -204 Open solutions 4.2 -4.5 3.4 -5.1 -317 -332 ANZ Smart Choice 2.2 -2.1 2.0 -2.2 Wrap 0.8 -1.0 0.7 -1.0 One Answer Frontier 1.3 -1.4 0.8 -1.9 -1,127 Closed solutions 0.4 -1.9 0.4 -2.2 -1,492 Legacy Retail 0.3 -1.6 0.4 -1.8 ANZ Smart Wrap OneAnswer Legacy Retail Legacy Legacy Employer 0.1 -0.4 0.1 -0.4 Choice Frontier Employer Total 4.6 -6.4 3.9 -7.3 AVERAGE FUM BY SOLUTION 1 GUIDE TO FUM AND FLOW DISCLOSURES $b Open solutions Closed solutions Definition of open and closed solutions is consistent with the • +2% classification disclosed by IOOF on 17 October 2017 ASX -10% announcement and it is not comparable with Funds Management 37 14 36 35 35 13 cash flows by product historically published in ANZ results 12 12 7 3 7 7 7 2 2 2 FUM and flows information presented herein is not comparable • 12 12 11 11 with industry data as it excludes products not acquired by IOOF 11 11 10 10 FUM outflows include pension payments • 18 17 17 17 This analysis has been prepared on a standalone pro forma basis • 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 Wrap ANZ Smart Choice Legacy Employer Legacy Retail OneAnswer Frontier 1.Average FUM excludes legacy run-off portfolio of Pension and Investment products acquired by Zurich and FUM related to ANZ Private Bank trusts ( Average FUM 1H18 : $1.1b, 2H18 : 66 $1.4b, 1H19 : $1.6b, 2H19 : $1.8b). NOTE: The sum of inflows and outflows by solution may not align to total due to rounding.

  49. For personal use only 2019 FULL YEAR RESULTS — INVESTOR DISCUSSION PACK TREASURY

  50. REGULATORY CAPITAL For personal use only CAPITAL UPDATE APRA LEVEL 2 COMMON EQUITY TIER 1 (CET1) APRA Level 2 CET1 ratio of 11.4% (16.4% on an Internationally Comparable basis 1 ),  % which is in excess of APRA’s ‘unquestionably strong’ benchmark 2 . Net Organic Capital Generation +75bps APRA Level 1 CET1 ratio of 11.4%. Level 1 consolidation primarily comprises ANZ BGL  (the Parent including offshore branches) but excludes offshore banking subsidiaries 3 . 0.83 0.02 0.52 11.49 11.44 APRA Leverage ratio of 5.6% (or 6.2% on an Internationally Comparable basis). 11.36  -0.10 -0.56 -0.51 -0.13 Asset divestments contributed ~$2b in 2H19 (mainly divestment of OPL Australia) -0.20  Pro-forma adjusted CET1 ratio of ~11.5%, including benefits from P&I divestment  (~20bps), partially offset by IFRS16 impacts (~-7bps) Organic Capital Generation Net organic capital generation of 75bps for 2H19 – in line with historical averages of  Sep-18 Mar-19 Cash RWA Capital Dividends Asset Net Reme- Other 7 Sep-19 ~80bps (excluding Institutional rebalancing) NPAT 4 Business Deduc- Divest- Imposts 6 diation growth tions 5 ments Capital Outlook – Regulatory Development RBNZ capital proposal – Potential impact of NZ$6b to NZ$8b for ANZ NZ (from Sep-18).  Final impact depends on the outcome of the RBNZ consultation. LEVEL 2 BASEL III CET1  APRA loss absorbing capacity (TLAC) – Total Capital requirements increased by 3% of % RWA (~$12b in Tier 2 based on Sep-19 position) by January 2024. Revisions to treatment of equity investments in subsidiaries - in the absence of any  16.8 16.9 16.4 offsetting management actions, this implies a reduction in ANZ’s Level 1 CET1 capital ratio of up to approximately $2.5b (75bps). However, ANZ believes that this outcome is 11.4 11.5 11.4 unlikely and, post implementation of management actions, the net capital impact could be minimal.  Other ongoing APRA regulatory reviews potentially impacting the future capital position include: Revisions to capital framework (RWA), Unquestionably Strong capital calibration, and the Transparency, Comparability and Flexibility proposals. Sep-18 Mar-19 Sep-19 APRA Internationally Comparable 1 1. Internationally Comparable methodology aligns with APRA’s information paper entitled International Capital Comparison Stud y (13 July 2015). Basel III Internationally Comparable ratios do not include an estimate of the Basel I capital floor 2. Based on APRA information paper “Strengthening banking system resilience – establishing unquestionably strong capital ratios” re leased in July 2017 3. Refer to ANZ Basel III APS330 Pillar 3 disclosures 4. Cash NPAT excludes ‘Large/notable’ items’ and one -off items 5. Mainly comprises the movement in retained earnings in deconsolidated entities and capitalised software 6. Includes SA-CCR (-18bps); APRA Operational Risk overlay (-18bps); and RWA floors for NZ housing/farm exposures (-18bps) 7. Other impacts 68 include movements in non-cash earnings and net foreign currency translation

  51. REGULATORY CAPITAL GENERATION For personal use only COMMON EQUITY TIER 1 GENERATION 2H averages Full Year average 2H19 FY19 (bps) 2H12-2H18 FY12-FY18 Cash NPAT 1 95 83 189 172 Organic Capital Generation RWA movement 1 (10) (13) (7) Net organic capital generation of  Capital Deductions 2 (6) 2 (18) - +165bps for FY19 and +75bps for 2H19 Net capital generation 90 75 158 165 Gross dividend (61) (57) (128) (117) Excluding Institutional portfolio  Dividend Reinvestment Plan 3 10 1 19 2 rebalancing period, FY19 net organic Core change in CET1 capital ratio 39 19 49 50 capital generation is stronger by +24bps Other non-core and non-recurring items (2) (32) 7 (58) Net change in CET1 capital ratio 37 (13) 56 (8) HISTORICAL NET ORGANIC CAPITAL GENERATION bps Avg +141bps (ex. Institutional portfolio rebalancing FY16 & FY17) Avg +204bps Institutional portfolio rebalancing 229 182 179 165 144 130 128 119 bps FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 1. Cash NPAT excludes ‘large/notable items’ & one off items (which are included as “other non -core and non-recurring items ”) 2. Represents movement in retained earnings in deconsolidated entities, capitalised software, expected losses in excess of eligible provisions shortfall and other intangibles 69 3. Includes Bonus Option Plan

  52. INTERNATIONALLY COMPARABLE 1 REGULATORY CAPITAL POSITION For personal use only APRA Level 2 CET1 – 30 September 2019 11.4% Corporate undrawn EAD and Australian ADI unsecured corporate lending LGDs and undrawn CCFs exceed those applied in many jurisdictions 1.6% unsecured LGD adjustments APRA requires 100% deduction from CET1 vs. Basel framework which allows concessional threshold prior to Equity Investments & DTA 0.9% deduction APRA requires use of 20% mortgage LGD floor vs. 10% under Basel framework. Additionally, APRA also requires a Mortgages 1.2% higher correlation factor vs 15% under Basel framework. APRA requires supervisory slotting approach which results in more conservative risk weights than under Basel Specialised Lending 0.7% framework IRRBB RWA APRA includes in Pillar 1 RWA. This is not required under the Basel framework 0.2% Includes impact of deductions from CET1 for capitalised expenses and deferred fee income required by APRA, Other 0.4% currency conversion threshold and other retail standardised exposures Basel III Internationally Comparable CET1 16.4% Basel III Internationally Comparable Tier 1 Ratio 18.8% Basel III Internationally Comparable Total Capital Ratio 21.4% 1. Internationally Comparable methodology aligns with APRA’s information paper entitled International Capital Comparison Study (13 July 2015). B asel III Internationally Comparable ratios do not include an estimate of the Basel I capital floor 70

  53. CET1 AND LEVERAGE IN A GLOBAL CONTEXT For personal use only CET1 RATIOS 1 LEVERAGE RATIOS 1,2 5% 10% 15% 20% 2% 4% 6% 8% ABN Amro OCBC Svenska Handelsbanken UOB SEB DBS Swedbank BBVA Morgan Stanley Erste Bank Danske Bank ANZ Raiffeisen Bank International (RBI) RBS Intesa Sanpaolo Rabobank ANZ Groupe BPCE HSBC Credit Agricole Group Nordea Rabobank ING Group Credit Agricole Group OCBC Standard Chartered HSBC UBS UOB Credit Suisse Raiffeisen Bank International (RBI) Standard Chartered RBS DBS Groupe BPCE Goldman Sachs Nordea Erste Bank Barclays Deutsche Bank Leverage Santander Barclays ANZ compares equally well UBS UniCredit on leverage, however JP Morgan Swedbank international comparisons Intesa Sanpaolo ABN Amro Commerzbank are more difficult to make SEB Wells Fargo given the favourable Svenska Handelsbanken Credit Suisse treatment of derivatives Citibank Commerzbank State Street under US GAAP Danske Bank BNP Paribas ING Group UniCredit RBC Societe Generale Societe Generale Bank of America TD BMO RBC Scotia BBVA BNP Paribas Santander Deutsche Bank BMO TD Scotia 1. CET1 and leverage ratios are based on ANZ estimated adjustment for accrued expected future dividends where applicable. ANZ ratios are on an Internationally Comparable basis. All data sourced from company reports and ANZ estimates based on last reported half/full year results assuming Basel III capital reforms fully implemented 2. Includes adjustments for transitional 71 AT1 where applicable. Exclude US banks as leverage ratio exposures are based on US GAAP accounting and therefore incomparable with other jurisdictions which are based on IFRS.

  54. BALANCE SHEET STRUCTURE 1 For personal use only BALANCE SHEET COMPOSITION NSFR COMPOSITION Sep 2019 $515b Wholesale $443b Funding & Other 3 Liquids and Other Assets 4 Non Financial Corporates Other Short Term Wholesale Debt & Loans 5 Liquid and Other Assets Other Funding 2 Retail/SME 29% 25% Residential Mortgages 6,7 <35% Capital FI Lending Corporate, PSE & Operational Available Required 6% Deposits Stable Funding Stable Funding 21% NSFR MOVEMENT Non-FI Lending 25% Sep 2018 v Sep 2019 ~115% adjusted for CLF reduction from 1 Jan 2020 Retail & SME Deposits 0.8% 31% 0.2% 2.6% 116.4% -0.6% -0.2% -1.0% 114.6% Mortgages 40% Long Term Wholesale Debt 14% Capital Incl. Hybrids & T2 9% Sep-18 Retail/Corp/ Loans Wholesale Liquid Bank Other 8 Sep-19 Assets Funding Operational Debt, SHE Assets Deposits Deposits & Hybrids & Repo Funding 1. NSFR Required Stable Funding (RSF) and Available Stable Funding (ASF) categories and all figures shown are on a Level 2 basis per APRA prudential standard APS210 2. Includes FI/Bank deposits, Repo funding and other short dated liabilities 3. ‘Other’ includes Sovereign, and non -operational FI Deposits 4. ‘Other Assets’ include Off Balance Sheet, Derivatives, Fixed Assets and Other Assets 5. All lending >35% Risk weight 6. Includes NSFR impact of self-securitised assets backing the Committed Liquidity Facility (CLF) 7. <35% Risk weighting as per APS 112 Capital 72 Adequacy: Standardised Approach to Credit Risk 8. Net of other ASF and other RSF

  55. LIQUIDITY COVERAGE RATIO (LCR) SUMMARY 1 For personal use only LCR COMPOSITION (AVERAGE) MOVEMENT IN AVERAGE LCR SURPLUS ($b) FY19 FY18 v FY19 $188b Internal RMBS FY19 FY18 Other ALA 2 LCR 140% LCR 138% HQLA2 2 6 54 53 $134b 1 Wholesale funding -4 HQLA1 0 -4 Customer deposits & other 3 Liquid Assets Net Cash Outflow FY18 CLF 4 Liquid Retail/SME Corp/FI/ Wholesale Other 5 FY19 Assets PSE Funding LCR Surplus LCR Surplus 1. All figures shown on a Level 2 basis as per APRA Prudential Standard APS210 2. Comprised of assets qualifying as collateral for the Committed Liquidity Facility (CLF), excluding internal RMBS, up to approved facility limit; and any assets contained in the RBNZ’s liquidity Policy – Annex: Liquidity Assets – Prudential Supervision Department Document BS13A 3 . ‘Other’ includes off -balance sheet and cash inflows 4. RBA CLF increased by $1.1b from 1 January 2019 to $48.0b (2018: $46.9b, 2017: $43.8b) 5. ‘Other’ includes off -balance sheet and cash inflows 73

  56. TERM WHOLESALE FUNDING PORTFOLIO 1 For personal use only ANZ’s term funding requirements depend on market conditions, balance sheet needs and exchange rates, amongst other factors • ANZ estimates an FY20 funding requirement broadly consistent with previous years at ~$25b • ISSUANCE MATURITIES $14.5b in AUD $b and NZD 32 27 24 24 24 23 22 22 21 19 18 14 11 2 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26+ Senior Unsecured Covered Bonds Tier 2 RMBS PORTFOLIO PORTFOLIO BY CURRENCY Domestic portfolio up from 33% in 5% 7% FY18 2% Domestic (AUD, NZD) 23% 16% 38% North America (USD, CAD) Senior Unsecured Tier 2 UK & Europe (£, €, CHF) Covered Bonds RMBS Asia (JPY, HKD, SGD, CNY) 75% 34% 1. All figures based on historical FX and exclude AT1. Includes transactions with an original call or maturity date greater than 12 months as at the respective reporting date. Tier 2 maturity profile is based on the next callable date 74

  57. ANZ’S TIER 2 CAPITAL PROFILE 1 For personal use only TIER 2 CAPITAL ANZ’S TIER 2 CAPITAL REQUIREMENT TO PROGRESSIVELY INCREASE POST TLAC ANNOUNCEMENT Notional amount By Currency Issued AUD $1.75b in July 2019 By Format • Current portfolio includes 38% in AUD (32% domestic AUD) – strong capacity • remaining in AUD 6% Annual total T2 issuance expected to be ~$4b • 6% USD Required portfolio increase from $7.6b to ~$20b by January 2024 • 7% Planned issuance in multiple currencies in both callable and bullet format AUD Domestic • Bullet 6% 43% Capacity in EUR T2 with no current outstandings following recent Sep-19 maturity 46% • AUD Offshore Callable 54% No AUD retail T2 outstanding • JPY Extensive global USD T2 investor base • SGD ANZ has historically had strong support from Asian local currency markets, both in • 32% CNY benchmark and Private Placement format Increased T2 issuance expected to be offset by reduction in other senior • unsecured funding Well managed amortisation profile provides flexibility regarding issuance tenor • FUNDING PROFILE CAPITAL AMORTISATION PROFILE 2 Notional amount, $m $m 2,937 2,444 2,282 1,368 1,068 824 735 831 674 456 456 498 225 225 131 0 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 Scheduled Bullet and Call Date Profile Bullet Amortisation Callable 1. Profile is AUD equivalent based on historical FX, excluding Perpetual Floating rate notes issued 30 October 1986 (which loses Ba sel III transitional relief in 2021). Any call is subject to APRA’s prior written approval and note holders should not expect approval to be given 75 2. Amortisation profile is modelled based on scheduled first call date for callable structures and in line with APRA’s amortisat ion requirements for bullet structures

  58. IMPACTS OF RATE MOVEMENTS For personal use only CAPITAL 2 & REPLICATING BILLS/OIS SPREAD CAPITAL & REPLICATING DEPOSITS PORTFOLIO DEPOSITS PORTFOLIO (AUSTRALIA) bps % 65 3.0 60 AUST NZ APEA 55 2.5 50 Volume ($A) ~60bn ~20bn ~10bn 45 40 2.0 Target Duration Rolling 3 to 5 years Various 35 30 Proportion Hedged ~70% ~75% Various 1.5 25 20 15 1.0 10 5 0 0.5 Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jan- Sep- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Sep- 17 18 18 18 18 19 19 19 19 16 17 17 17 17 18 18 18 18 19 19 19 19 Spot 3mth Bills/OIS Spread Rolling 90 days 3mth BBSW (Monthly Average) Portfolio Earnings Rate FY18 Ave 1 : 36.3bps FY18 Ave: 2.29% 1H18 Ave: 24.4bps 2H18 Ave: 48.1bps 1H18 Ave: 2.29% 2H18 Ave: 2.28% FY19 Ave 1 : 37.5bps FY19 YTD Ave: 2.08% 1H19 Ave: 48.0bps 2H19 Ave: 27.0bps 1H19 Ave: 2.21% 2H19 Ave: 1.95% 1. 90 day rolling average of spot 3mth Bills/OIS spread 2. Includes other Non-Interest Bearing Assets & Liabilities 76

  59. CAPITAL FRAMEWORK CURRENT REGULATORY PROPOSALS AND RECENT FINALISATION 1 For personal use only 1H19 2H19 2020 2021 2022 2023 2024 RBNZ capital framework Consultation Finalise 2 Implementation Transition Counterparty Credit Risk 3 Implementation Leverage ratio Consultation Finalise Implementation Advanced approach to credit Consultation Implementation risk Standardised approach to Consultation Finalise Implementation credit risk Operational risk Consultation Finalise Implementation Interest rate risk in the Consultation Implementation banking book Loss absorbing capacity Consultation Finalise Implementation Transition (LAC) 4 Related party exposures Consultation Finalise Implementation Capital treatment for Investments in subsidiaries Consultation Implementation (Level 1) 1. Timeline is based on APRA’s 2019 Policy Agenda (published February 2019) 2. RBNZ is expected to finalise reforms towards the end of 2019 calendar year 3. Implementation 1 July 2019 4. Only in relation to the 3% of RWA increase in Total Capital requirements announced in July 2019 77

  60. For personal use only 2019 FULL YEAR RESULTS — INVESTOR DISCUSSION PACK RISK MANAGEMENT

  61. KEY RISK METRICS For personal use only CREDIT IMPAIRMENT CHARGE INDIVIDUAL PROVISION (IP) CHARGE COLLECTIVE PROVISION (CP) BALANCE & COVERAGE Sep-19 CP/CRWA impacted -3bps by increase in CRWA’s $m $m $m from regulatory & methodology changes (incl. SA-CCR) 787 554 720 398 3,378 3,376 430 343 380 2,785 2,662 2,579 2,523 479 408 393 402 0.25% 0.98% 280 0.94% 0.81% 0.79% 0.75% 0.75% 0.16% 0.14% 0.13% 0.13% 0.09% Mar-17 Sep-17 Mar-18 Sep-18 Mar 19 Sep-19 1H17 2H17 1H18 2H18 1H19 2H19 1 1H17 2H17 1H18 2H18 1H19 2H19 CP Balance CP/CRWA CP Balance (AASB9) CIC as % Avg.GLA Total Provision Charge New Increased Writebacks & Recoveries GROSS IMPAIRED ASSETS NEW IMPAIRED ASSETS AUSTRALIA MORTGAGES 90DPD (INCL NPL) $m $m $m 3,071 2,940 1,787 2,696 2,401 2,373 2,384 2,226 1,425 2,013 1.16% 2,034 2,139 2,128 2,029 1,145 1,117 1.00% 0.89% 963 0.84% 0.86% 890 0.79% Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 1H17 2H17 1H18 2H18 1H19 2H19 2 Australia New Zealand Institutional Other Australia New Zealand Institutional Other 90DPD (Incl. NPL) % Total Portfolio CREDIT RWA EXPOSURE AT DEFAULT (EAD) INTERNAL EXPECTED LOSS (IEL) $b $b $m 358 342 343 346 337 338 977 968 1,983 930 944 1,870 899 903 1,780 1,666 1,659 1,605 38.0% 37.3% 0.35% 36.9% 35.8% 35.7% 36.7% 0.32% 0.30% 0.27% 0.27% 0.26% Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 1H17 2H17 1H18 2H18 1H19 2H19 CRWA CRWA/EAD IEL IEL/GLA 1. Increase to New and Increased Individual Provisions and Writebacks & Recoveries compared to prior half is largely related to the home loan portfolio in Australia Retail and Commercial following the implementation of a more market responsive collateral valuation methodology 2. New Impaired Assets in 2H19 includes a $167m uplift on 1H19 in Australia home loans following the implementation of revised provisioning and impairment processes (including a more 79 market responsive collateral valuation methodology)

  62. RISK MANAGEMENT PROVISIONS For personal use only ANZ HISTORICAL LOSS RATES CREDIT IMPAIRMENT CHARGE $m bps 1,500 250 1,200 1,038 918 200 720 900 479 150 600 408 280 393 402 100 300 50 0 -300 0 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep 90 93 96 99 02 05 08 11 14 17 18 19 Consumer Commercial Institutional CP Charge IP Loss Rate Median Annual IP Loss Rate (excl. current period) INDIVIDUAL PROVISION CHARGE LONG RUN LOSS RATE (INTERNAL EXPECTED LOSS) $m % 1,047 892 Division Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 787 554 Australia 0.31 0.29 0.29 0.29 0.35 0.33 0.33 0.33 826 398 430 343 380 922 New Zealand 0.25 0.26 0.26 0.22 0.21 0.19 0.19 0.18 969 812 592 612 594 Institutional 0.37 0.36 0.35 0.30 0.32 0.27 0.27 0.25 532 495 Other 1.47 1.79 1.60 1.69 1.95 1.78 1.60 1.40 229 153 157 136 116 122 93 -259 -245 -274 Subtotal 0.30 0.27 0.27 0.26 -335 -298 0.34 0.33 0.33 0.30 -351 -394 -373 Asia Retail 1.50 1.51 1.51 2.75 0 0 0 0 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1 Total 0.37 0.35 0.35 0.32 0.30 0.27 0.27 0.26 New Increased Writebacks & Recoveries IP: Individual Provision charge; CP: Collective Provision charge; CIC: Total Credit Impairment charge 1. Increase to New and Increased Individual Provisions and Writebacks & Recoveries compared to prior half is largely related to the home loan portfolio in Australia Retail and Commercial following the implementation of a more market responsive collateral valuation methodology 80

  63. COLLECTIVE PROVISION For personal use only COLLECTIVE PROVISION BALANCE COLLECTIVE PROVISION CHARGE 1 $m AASB9 23 3,376 $m 1H19 2H19 FY19 27 813 90 CP charge 13 4 17 -79 -21 2,523 Volume/Mix -28 -51 -79 Change in Risk -40 19 -21 Economic outlook CP charge 17 73 17 90 sensitivity Other 8 19 27 Sep-18 Transition Volume / Change Economic Other FX/Other Sep-19 to AASB 9 Mix in Risk Outlook charge B’sheet Sensitivity COLLECTIVE PROVISION BALANCE PROVISION BALANCE/COVERAGE RATIO BY DIVISION ($m) AASB9 BY STAGES ($m) AASB9 31 Mar-19 30 Sep-19 3,378 3,376 3,336 48 43 38 369 374 Coverage ratio by stage 2 Coverage ratio by stage 2 358 1 2 3 1 2 3 0.19% 3.31% 20.76% 0.17% 2.40% 18.03% 1,132 1,142 1,169 395 434 1,788 1,834 1,795 1,568 1,530 1,415 1,412 891 814 Sep-18 Mar-19 Sep-19 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 AUS Insto. NZ Other Stage 1 CP Stage 2 CP Stage 3 CP Stage 3 IP 1. Change in methodology introduced in 2H19 to measure components of CP charge 2. Coverage ratio calculated as Provision Balance to Gross Loans & Advances for on-balance sheet exposures. Reduction in 2H19 stage 2 coverage ratio is a result of (a) Denominator effect: increased stage 2 GLA in Australian home loans due to implementation of a revised provisioning model plus higher delinquency levels, and (b) Numerator effect: stable stage 2 ECL with 81 the home loan ECL increase offset by decreases for other Australian portfolios and Institutional

  64. RISK MANAGEMENT IMPAIRED ASSETS For personal use only CONTROL LIST GROSS IMPAIRED ASSETS BY DIVISION Index Sep 09 = 100 $m 150 3,173 2,940 2,883 3,000 2,384 100 2,034 2,139 2,128 2,029 2,000 50 1,000 0.55% 0.51% 0.51% 0.41% 0.34% 0.33% 0.33% 0.33% 0 0 Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 09 10 11 12 13 14 15 16 17 18 19 Control List by Limits Control List by No. of Groups Australia 3 Institutional Group GIA/GLA (EOP) New Zealand Other 1 NEW IMPAIRED ASSETS BY DIVISION GROSS IMPAIRED ASSETS BY EXPOSURE SIZE 3 $m $m 1,844 2,000 4,000 1,784 1,787 3,173 2,940 1,425 2,883 2,708 2,719 1,500 3,000 2,384 1,145 1,117 2,034 2,139 2,128 2,029 963 890 1,000 2,000 500 1,000 0 0 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 2 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Australia 2 New Zealand Institutional Other < 10m 10m to 100m > 100m 1. Other includes Retail Asia & Pacific and Australian Wealth 2. New Impaired Assets in 2H19 includes a $167m uplift on 1H19 in Australia home loans following the implementation of revised provisioning and impairment processes (including a more market responsive collateral valuation methodology) 82 3. The increase referred to in footnote 2 has been largely offset in Gross Impaired Assets by the return of previously impaired home loans to a past due but not impaired status

  65. RISK MANAGEMENT RISK WEIGHTED ASSETS For personal use only TOTAL RISK WEIGHTED ASSETS CRWA MOVEMENT Increase driven by SA-CCR implementation, a 2H19 increase includes op. risk modelled increase regulatory overlay for Australia Home Loans as well as of +$3b combined with an overlay +$6.25b and implementation of APRA Risk Weight floors for New $b $b +$11.8b of CRWA methodology changes Zealand Home Loan and Farm Lending Portfolios 1.3 358.1 417 14.3 409 397 396 396 391 391 388 47 39 0.4 4.5 39 37 38 38 37 38 358 337.6 12 18 13 17 16 16 17 16 CRWA 156 (Insto) Sep-18 FX Impact Lending Methodology Risk Sep-19 Mvmt. Review GROUP EAD & CRWA GROWTH MOVEMENT 1,2 358 352 346 342 343 338 334 337 Sep-19 v Sep-18 $b 21.9 CRWA 202 (ex. Insto) 5.9 3.3 0.6 0.3 -1.3 -1.8 -2.7 -3.4 -6.5 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Sep-19 AUS HL AUS Non HL NZ Other Institutional CRWA Mkt. & IRRBB RWA Op-RWA EAD growth CRWA growth 1. Post CRM EAD, net of credit risk mitigation such as guarantees, credit derivatives, netting and financial collateral. Excludes a mounts for ‘Securitisation’ and ‘Other Assets’ Basel asset classes 2. Refers to FX adjusted lending movement, excluding Methodology Review and Risk 83

  66. RISK MANAGEMENT PORTFOLIO COMPOSITION For personal use only % of Portfolio in Non Portfolio Balance EXPOSURE AT DEFAULT (EAD) DISTRIBUTION Category % of Group EAD Performing in Non Performing Sep-18 Mar-19 Sep-19 Sep-18 Mar-19 Sep-19 Sep-19 TOTAL GROUP EAD (Sep-19) Consumer Lending 39.7% 38.8% 37.6% 0.2% 0.2% 0.1% $549m = $977b 1 Finance, Investment & Insurance 19.6% 20.2% 20.3% 0.0% 0.1% 0.0% $73m 5.8% Property Services 6.8% 7.0% 7.0% 0.3% 0.3% 0.2% $158m Manufacturing 4.6% 4.7% 5.1% 0.4% 0.3% 0.3% $138m Agriculture, Forestry, Fishing 3.7% 3.7% 3.6% 1.1% 1.1% 1.1% $373m Government & Official Institutions 6.9% 6.8% 7.3% 0.0% 0.0% 0.0% $0m 3.0% 37.6% Wholesale trade 3.0% 3.0% 3.0% 0.3% 0.3% 0.3% $78m Retail Trade 2.2% 2.2% 2.2% 0.9% 0.7% 0.7% $157m 7.3% Transport & Storage 2.0% 2.1% 2.2% 0.2% 0.2% 0.3% $75m Business Services 1.6% 1.6% 1.6% 0.9% 1.0% 1.0% $166m 3.6% Resources (Mining) 1.6% 1.6% 1.8% 0.3% 0.3% 0.2% $40m 5.1% Electricity, Gas & Water Supply 1.2% 1.2% 1.3% 0.1% 0.1% 0.1% $17m Construction 1.4% 1.3% 1.3% 1.7% 1.8% 1.7% $218m 7.0% Other 5.7% 5.7% 5.8% 0.4% 0.4% 0.4% $224m Total 100% 100% 100% $2,267m 20.3% $944b $968b Total Group EAD 1 $977b 1. EAD excludes amounts for ‘Securitisation’ and ‘Other Assets’ Basel classes. Data provided is on a Post CRM basis, net of credit risk mitigation such as guarantees, credit derivatives, netting and financial collateral 84

  67. RISK MANAGEMENT COMMERCIAL PROPERTY PORTFOLIO For personal use only COMMERCIAL PROPERTY OUTSTANDINGS BY REGION COMMERCIAL PROPERTY OUSTANDINGS BY SECTOR $b % % 100 42.9 42.4 12 80 40.2 2.8 2.8 38.4 11 37.9 37.7 37.6 60 37.5 2.9 3.9 2.7 2.4 3.6 3.0 40 10 10.5 10.7 20 9.8 9 9.5 9.7 8.8 9.7 9.5 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 8 Offices Retail Industrial Residential Tourism Other 7 6 PROPERTY PORTFOLIO MANAGEMENT 5 Australian exposure increased by 2% HOH driven by higher lending to Funds • 29.6 28.9 4 27.5 and REITs in the Industrial sector partly offset by a decline in Residential 25.7 25.5 25.4 24.8 24.9 lending given the slowdown in the residential property market. Retail exposure 3 declined over the half and the Retail portfolio continues to be closely monitored owing to the weak operating environment 2 Slight decline in New Zealand exposure was driven by exchange rate • 1 movements and some significant repayments occurring during 2H FY19 APEA exposure remained stable for 2H19 with the portfolio concentrated on • 0 large well rated names in Singapore and Hong Kong. The Hong Kong Property Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 market has seen a 1% index decline given current unrest. Market consensus estimates a decline as high of 10-20% if the protests continue through the year. The Hong Kong property portfolio remains subject to close monitoring of internal % of Group GLA (RHS) Australia New Zealand APEA 1 and external metrics 1. APEA = Asia Pacific, Europe & America 85

  68. RESIDENTIAL DEVELOPMENT For personal use only OVERVIEW PROFILE (SEP-19) Total Residential Limits: $10.6b 31% 20% Average qualifying pre-sales for Inner City Apartment • Development loans and corresponding LVRs were 101% and Apartment Development 52%, respectively as at Sep 19 (as compared to presales of 101% and LVR of 49% in Mar 19). These loans remain subject to Other Development 1 9% tight parameters around LVR, presale debt cover and quantum of Residential & Subdivision foreign purchaser presales. Overall appetite for Apartment Investment Development has remained unchanged over the last half. The 40% quality and experience of developers and builders remains a key selection criterion. $0.67b inner city apartment Outside of Inner City locations, development exposures are • Apartment Development development predominantly in the suburbs of the capital cities of the above $4.20b listed states. Melb Residential Development projects continue to be closely • 0.3 monitored with level of oversight driven by progress of the Bris NSW and ACT project vs. plan, industry trends and emerging risks. 0.1 2.1 Syd 0.3 Sep-18 Sep-19 ($b) ($b) $3.54b other Total Exposure 10.28 10.60 apartment development Apartments (>3 levels) 3.97 4.20 0.9 Inner City 0.56 0.70 VIC 0.4 0.2 QLD Other 1. Other Development primarily comprises Low Rise & Prestige Residential and Multi Project Development 86

  69. RISK MANAGEMENT GROUP AGRICULTURE PORTFOLIO For personal use only AGRICULTURE EXPOSURE BY SECTOR (% EAD) GROUP AGRICULTURE EAD SPLITS 1 6.6% Total EAD (Sep-19) As a % of Group EAD 3.3% A$35.2b 3.6% 6.1% 3.0% 14.9% 15.9% 43.5% 44.9% 10.4% 98.9% 98.9% 74.2% 76.0% 56.2% 54.9% 12.8% 35.0% 0.3% 0.2% 1.1% 1.1% Sep-18 Sep-19 Sep-18 Sep-19 Sep-18 Sep-19 <60% Secured Australia Productive 60 - <80% Secured New Zealand Impaired 80 - <100% Secured 17.7% Intl. Markets Fully Secured NEW ZEALAND 2 DAIRY CREDIT QUALITY 14.4% 9.6% FY19 PD increase driven by customer downgrades, reflecting NZD $b continued headwinds facing the dairy sector 13.3 13.3 12.9 12.8 12.8 12.3 12.5 12.3 11.9 Dairy Sheep & Other Horticulture/Fruit/ 2.21% 1.95% 1.91% Livestock Other Crops 1.51% 1.56% 1.22% 1.14% 0.90% 0.80% Beef Grain/Wheat Forestry & Fishing/ Agriculture Services Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Mar-19 Sep-19 Wt. Avg. Probability of Default NZ Dairy EAD 1. Security indicator is based on ANZ extended security valuations 2. Dairy exposures for all of ANZ New Zealand (includes Commercial and Agriculture, Institutional and Business Banking portfolios) 87

  70. GROUP RESOURCES PORTFOLIO For personal use only TOTAL ANZ PORTFOLIO RESOURCES PORTFOLIO THERMAL COAL EXPOSURE EAD $b EAD $b EAD $b 2.0 977 Resources: 1.5 944 17 1.8% of ANZs Thermal 15 20.0 903 898 895 total portfolio coal 1.0 14 20 16 1.7 mining: 0.5 <0.1% of 0.6 17.3 ANZs total 1.3 0.8 0.0 16.1 portfolio 0.7 Sep-15 Sep-16 Sep-17 Sep-18 Mar-19 Sep-19 15.3 1.2 1.0 2.9 0.7 0.4 14.0 593 554 0.7 1.5 Thermal coal Thermal coal (Trendline) 1.1 515 516 0.8 532 0.9 0.3 1.7 1.0 1.2 RESOURCES PORTFOLIO MANAGEMENT 1.4 4.9 5.2 • Portfolio is skewed towards well capitalised and lower cost resource producers. 4.0 4.4 32% of the book is less than one year duration. • 3.5 Investment grade exposures represent 79% of the portfolio vs. 68% at Sep 18. • Increase in total coal mining exposure in FY19 primarily reflects mergers and • acquisitions activity related to existing mines in 1H19, ie predominantly metallurgical coal assets sold by diversified miners to existing customers along with foreign currency exchange movements. Financing is mainly used to support continuing operations, and not mine expansions. 8.6 375 375 367 8.2 363 7.8 347 Thermal coal exposure is currently $838m. We expect our thermal coal exposure to 7.4 • 7.0 decline over time, as it has since 2015 (reducing by 50% between FY15-FY19). Decreased exposure in 2H19 compared to 1H19 reflects ongoing portfolio management and application of ANZ policies. Our exposures to thermal coal are primarily concentrated in a small number of Australian-based miners. Exposure to metallurgical coal mining (used for steel making) is currently $686m. • Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Consumer Lending Resources Oil & Gas Extraction Other Mining Other Metal Ore Mining Metallurgical Coal Mining Services to mining Thermal Coal Mining 88

  71. RISK MANAGEMENT ANZ INSTITUTIONAL PORTFOLIO (COUNTRY OF INCORPORATION 1 ) For personal use only INSTITUTIONAL PORTFOLIO SIZE & TENOR (EAD 2 ) ANZ INSTITUTIONAL INDUSTRY COMPOSITION $b EAD (Sep-19): A$447b 2 Finance (Banks and Central Banks) Government Admin. 400 26% 30% Services to Fin. & Ins. Property Services 3 350 Basic Material Wholesaling 49% 2% Machinery & Equip Mnfg 3% 300 3% Electricity & Gas Supply 4% 16% Petroleum Coal Chem & Assoc Prod Mnfg 8% 250 Other⁴ 8% 35% 200 ANZ INSTITUTIONAL PRODUCT COMPOSITION EAD (Sep-19) A$447b 2 150 12% 51% Loans & Advances 22% 20% 100 0% Traded Securities (e.g. Bonds) 65% Contingent Liabilities & Commitments 2% 50 78% Trade & Supply Chain 25% 15% Derivatives & Money Market Loans 85% 16% 0 Gold Bullion Total Institutional International Asia China Other 25% Tenor < 1 Yr Tenor 1 Yr+ 1. Country is defined by the counterparty’s Country of Incorporation 2. Data provided is as at Sep-19 on a Post CRM basis, net of credit risk mitigation such as guarantees, credit derivatives, netting and financial collateral. Position excludes Basel Asset Class ‘Securitisation’, ‘Other Assets’, ‘Retail’ and manual adjustments 3. ~90% of the ANZ Institutional “Property Services” 89 portfolio is to entities incorporated in either Australia or New Zealand 4. Other is comprised of 47 different industries with none comprising more than 2.1% of the Institutional portfolio.

  72. RISK MANAGEMENT ANZ ASIAN INSTITUTIONAL PORTFOLIO (COUNTRY OF INCORPORATION 1 ) For personal use only COUNTRY OF INCORPORATION 1 ANZ ASIA INDUSTRY COMPOSITION EAD (Sep-19): A$121b 2 EAD (Sep-19): A$121b 2 Finance (Banks & Central Banks) 5% 19% Basic Material Wholesaling 3% 3% Machinery & Equip Mnfg 2% 5% 26% Petroleum,Coal,Chem & Assoc Prod Mnfg 2% Property Services 2% 3% Communication Services 6% 60% 5% Services To Finance & Insurance 6% Other 3 8% ANZ ASIA PRODUCT COMPOSITION EAD (Sep-19): A$121b 2 12% Loans & Advances 26% 20% 18% 0% Traded Securities (e.g. Bonds) Contingent Liabilities & Commitments 2% 21% Trade & Supply Chain Derivatives & Money Market Loans 15% China Singapore Taiwan India Other Gold Bullion Other Japan Hong Kong South Korea Indonesia 30% 1. Country is defined by the counterparty’s Country of Incorporation 2. Data provided is as at Sep-19 on a Post CRM basis, net of credit risk mitigation such as guarantees, credit derivatives, netting and financial collateral. Position excludes Basel Asset Class ‘Securitisation’, ‘Other Assets’, ‘Retail’ and manual adjustments 3. “Other” within industry is comprised of 43 different 90 industries with none comprising more than 2.2% of the Asian Institutional portfolio; Other product category is predominantly exposure due from other financial institutions

  73. For personal use only 2019 FULL YEAR RESULTS — INVESTOR DISCUSSION PACK HOUSING PORTFOLIO

  74. AUSTRALIA HOME LOANS PORTFOLIO OVERVIEW For personal use only Portfolio 1 Portfolio 1 Flow 2 FY17 FY18 FY19 FY18 FY19 FY17 FY18 FY19 Number of Home Loan Average LVR at Origination 7,8,9 69% 67% 67% 1,009k 1,011k 983k 170k 3 119k 3 accounts 1 Average Dynamic LVR (excl offset) 8,9,10,11,12 55% 55% 57% Total FUM 1 $264b $272b $265b $57b $40b Average Dynamic LVR (incl offset) 8,9,10,11,12 50% 50% 52% Average Loan Size 4 $262k $269k $270k $382k $378k Market Share (MBS publication) 13 15.7% 15.5% n/a % Owner Occupied 5 63% 65% 67% 70% 73% Market share (MADIS publication) n/a n/a 14.3% % Investor 5 33% 32% 30% 29% 26% % Ahead of Repayments 14 71% 72% 76% % Equity Line of Credit 4% 3% 3% 1% 1% Offset Balances 15 $27b $28b $27b % First Home Buyer 7% 7% 8% % Paying Variable Rate Loan 6 83% 84% 84% 84% 78% % Low Doc 16 4% 4% 4% % Paying Fixed Rate Loan 6 17% 16% 16% 16% 22% Loss Rate 17 0.02% 0.02% 0.04% % Paying Interest Only 31% 22% 15% 13% 11% % of Australia Geography Lending 18,19 64% 63% 61% % Broker originated 51% 52% 52% 55% 53% % of Group Lending 18 45% 45% 43% 1. Home Loans portfolio (includes Non Performing Loans, excludes Offset balances) 2. YTD unless noted 3. New accounts includes increases to existing accounts and split loans (fixed and variable components of the same loan) 4. Average loan size for Flow excludes increases to existing accounts (note the average loan size previously reported in 1H18 and prior included increases to existing accounts) 5. The current classification of Investor vs Owner Occupier is based on ANZ’s product category, determined at origination as advised by the customer and the ongoing precision relies primarily on the customer’s obligation to advise ANZ of any change in circumstances. 6. Excludes Equity Manager 7. Originated in the respective year 8. Unweighted 9. Includes capitalised LMI premiums 10. Valuations updated to Aug-19 where available 11. Includes Non Performing Loans and excludes accounts with a security guarantee 12. Historical DLVR has been restated as a result of enhancements to methodology 13. APRA Monthly ADI Statistics to Aug-19 – Note APRA changed the underlying market share definition in Jul-19 and historical periods (FY17 & FY18) are not comparable to FY19 14. % of Owner Occupied and Investment Loans that have any amount ahead of repayments. Includes Offset balances. Excludes Equity Manager. Includes Non Performing Loans 15. Balances of Offset accounts connected to existing Instalment Loans 16. Low Doc is comprised of less than or equal to 60% LVR mortgages primarily for self-employed without scheduled PAYG income. However, it also has ~0.1% of less than or equal to 80% LVR mortgages, primarily booked pre-2008 17. Annualised write-off net of recoveries 18. Based on Gross Loans and Advances 19. Australia Geography includes 92 Australia Division, Wealth Australia and Institutional Australia

  75. AUSTRALIA HOME LOANS PORTFOLIO GROWTH For personal use only HOME LOAN COMPOSITION 1,2 LOAN BALANCE & LENDING FLOWS 1 $b $b 256 264 271 272 269 265 16 29 8 7 10 9 9 8 272 -2 26 265 31 37 43 49 -50 54 14 17 22 29 33 54 52 38 49 44 39 33 Sep-18 New Sales Net OFI Refi Redraw & Repay / Other Sep-19 exc Refi-In Interest ANZ MORTGAGE LENDING PORTFOLIO CHANGE 164 161 156 FY19 v FY18 Owner Occupied 3 Investor 146 134 121 Housing Portfolio -1% -7% FY19 v FY18 Principal & interest 3 Interest only Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Housing Portfolio 6% -33% OO P&I Inv P&I OO I/O Inv I/O Equity Manager 1. Includes Non Performing Loans 2. The current classification of Investor vs Owner Occupier is based on ANZ’s product category, determined at origination as advised by the customer and the ongoing precision relies primarily on the customer’s obligation to advise ANZ of any change in circumstances 93 3. Includes Equity Manager

  76. AUSTRALIA HOME LOANS MARKET SHARE For personal use only MARKET SHARE TOTAL HOUSING OWNER OCCUPIED INVESTOR 14.9% 15.6% 13.8% 13.6% 14.4% 14.9% June 19 (MBS) June 19 (MADIS) June 19 (MBS) June 19 (MADIS) June 19 (MBS) June 19 (MADIS) In July 2019 the APRA Monthly Authorised Deposit Institution Statistics (MADIS) publication replaced the APRA Monthly Banking Statistics (MBS) publication. Under the new publication, changes in the market cohort and changes in definitions impacted housing market share for ADIs when compared with the previous MBS publication. With respect to the housing categories, three noteworthy changes included:  Inclusion of building societies, credit unions and other ADIs, resulting in an increase in FUM within the total system, consequently reducing market share of ADIs relative to market share under the MBS publication  Change in the definition of what is included within the housing categories (for ANZ total housing reduced by $8.2b (June 2019) within the MADIS publication compared with the MBS publication)  Changes to definition of Owner-Occupied and Investment housing based on housing purpose 1 1. APRA MADIS definition: Loans to households: Housing: Owner-occupied are loans to resident households for the purpose of housing, where the funds are used for a residential property that is occupied or to be occupied by the borrower(s) as their principal place of residence. The principal place of residence means the residential property at which an individual resides for the majority of the year. Loans to households: Housing: Investment are loans to resident households for the purpose of housing, where the funds are used for a residential property that is not owner-occupied. 94

  77. AUSTRALIA HOME LOANS PORTFOLIO 1,2 & FLOW 3 COMPOSITION For personal use only BY PURPOSE BY ORIGINATION LVR 4 Portfolio Flow Flow 1% 3% 3% 4% 17% 18% 20% 26% 30% 32% 33% 16% 17% 19% 73% 67% 67% 65% 65% 63% 61% Sep-17 Sep-18 Sep-19 FY19 FY17 FY18 FY19 Owner Occ Investor Equity <80% LVR 80% LVR >80% LVR BY LOCATION BY CHANNEL Portfolio Flow Portfolio Flow $272b $67b 7% 6% 6% 6% $264b $265b 9% 13% 13% 14% $57b 14% 16% 16% 44% 16% 48% 49% 48% $40b 45% 31% 32% 32% 31% 47% 56% 52% 52% 51% 55% 40% 32% 33% 33% 53% Sep-17 Sep-18 Sep-19 FY19 Sep-17 Sep-18 Sep-19 FY17 FY18 FY19 VIC/TAS NSW/ACT QLD WA SA/NT Broker Proprietary 1. Includes Non Performing Loans. 2. The current classification of Investor vs Owner Occupier is based on ANZ’s product category, determined at origination as advised by the customer and the ongoing precision relies primarily on the customer’s obligation to advise ANZ of any change in circumstances 3. YTD unless noted 4. Includes capitalised LMI premiums 95

  78. AUSTRALIA HOME LOANS PORTFOLIO DYNAMICS For personal use only HOME LOANS ON TIME & <1 MONTH AHEAD PROFILE 1,2 HOME LOANS REPAYMENT PROFILE 1,2 76% of accounts ahead of repayments % composition of accounts (September 19) 27% Investment : 5 Interest payments may receive 38 37 21% negative gearing/tax benefits 20% New Accounts : Less than 1 year old 19 21 9% 12 14 7% Structural: Loans that restrict payments in advance. 6% 6% 4% E.g. fixed rate loans 32 27 Residual: Less than 1 month repayment buffer Overdue On Time <1 month 1-3 months 3-6 months 6-12 months 1-2 years >2 years Sep-18 Sep-19 ahead ahead ahead ahead ahead ahead Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 DYNAMIC LOAN TO VALUE RATIO 3,4,6,7 NEGATIVE EQUITY % of portfolio Net of offset balances 60 91%+ DLVR Total Portfolio Represents 4.8% of portfolio • by State by FUM 50 Skew to mining states – WA, • 13% 6% 6% 40 QLD & NT represent 65% of 30% 16% 30 negative equity 16% 32% 20 • 59% ahead of repayments 26% 10 • 47% with LMI 33% 22% 0 0-60% 61-75% 76-80% 81-90% 91-95% 96-100% 100%+ Sep-19 Sep-19 VIC/TAS QLD SA/NT Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 NSW/ACT WA 1. Includes Non Performing Loans 2. % of Owner Occupied and Investment Loans that have any amount ahead of repayments. Includes Offset balances. Excludes Equity Manager. Includes Non Performing Loans 3. Includes capitalised LMI premiums 4. Valuations updated to Aug’19 where available 5. The current classification of Investor vs Owner Occupier, is based on ANZ’s product category, determined a t origination as advised by the customer and the ongoing precision relies primarily on the customer’s obligation to advise ANZ of any change in circumstances 6. Historical DLVR has been restated as a result of enhancements to methodology 7. Includes Non Performing Loans and excludes accounts with a security guarantee 96

  79. AUSTRALIA HOME LOANS PORTFOLIO PERFORMANCE For personal use only PRODUCT 90+ DAY DELINQUENCIES 1,2,3 HOME LOAN DELINQUENCIES 1,2,5 % % 5.0 2.5 4.0 2.0 1.5 3.0 2.0 1.0 1.0 0.5 0.0 0.0 Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep 12 13 14 15 16 17 18 19 12 13 14 15 16 17 18 19 Home Loans Personal Loans 30+ DPD % 90+ Investor Consumer Cards Corporate & Commercial 4 90+ Owner Occupied HOME LOANS 90+ DPD BY STATE 1,2 HOME LOANS - 90+ DPD (BY VINTAGE) 6 % % Note: FY14 vintages and prior were impacted by hardship prior to policy solutions put in place and therefore not comparable to FY15 vintages and onwards 2.5 2.5 2.0 2.0 1.5 1.5 1.0 1.0 0.5 0.5 0.0 0.0 VIC & TAS NSW & ACT QLD WA SA & NT Portfolio 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 FY15 FY17 FY19 Month on book Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 FY16 FY18 1. Includes Non Performing Loans 2. ANZ delinquencies calculated on a missed payment basis 3. For Personal Loans, a new collections platform was implemented in Aug-18 enabling automated charge-off of late stage accounts. This resulted in a step change to 90+ rates. Following this, compatibility issues between systems resulted in an accumulation of 90+ debt not being charged-off, causing the 90+ rate to increase. This issue has now been resolved and the 90+ rate has returned to expected levels in FY19 4. Retail portfolio (Small Business, Commercial Cards and Asset Finance) 5. The current classification of Investor vs Owner Occupier, is based on ANZ’s product category, determined at origination as advised by the customer and the ongoing precision relies primarily on the customer’s obligation to advise ANZ of any change in circumstances 6. Home loans 90+ DPD vintages represent % ratio of over 90+ delinquent (measured by # accounts), contains at least 6 application months of that fiscal year contributing to each data point 97

  80. AUSTRALIA HOME LOANS WESTERN AUSTRALIA For personal use only WA OUTSTANDING BALANCE Exposure to WA has decreased since Mar-16 driven by the economic • environment and credit policy tightening (mining town lending) $b Currently WA comprises 13% of portfolio FUM (and is decreasing), • 40 however it comprises 27% of 90+ delinquencies (and one half of 2 2 2 2 2 1 2 1 2 1 1 2 portfolio losses 1 ) 30 Tailored treatment of collection and account management strategies • 22 23 23 23 22 25 21 26 in place 21 27 20 28 29 Economic indicators 2 2012 2013 2014 2015 2016 2017 2018 2019 10 12 12 12 12 11 11 Unemployment rate 3.9% 4.7% 5.0% 6.1% 6.3% 5.6% 6.1% 6.1% 11 10 8 6 5 4 SFD 3 growth 0 13.8% 1.5% -1.8% -1.3% -7.3% -3.9% 0.3% -0.9% Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Population Growth 3.1% 2.2% 1.1% 0.85% 0.63% 0.71% 0.88% - Interest Only P&I Loan Equity Loan HOME LOANS AND WA 90+ DELINQUENCIES 4,5 HOME LOANS COMPOSITION OF LOSSES 1 % 3.0 2.5 35% 44% 48% 49% 51% 51% 55% 57% 2.0 73% 1.5 1.0 65% 56% 52% 51% 49% 49% 45% 43% 0.5 27% 0.0 Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 13 14 14 15 15 16 16 17 17 18 18 19 19 WA 90+ Rate Portfolio 90+ Rate without WA WA Rest of the portfolio Portfolio 90+ Rate 1. Losses are based on New Individual Provision Charges 2. Unemployment Rate as at September 3. State Final Demand (year on year growth) 4. Includes Non Performing Loans 5. ANZ delinquencies calculated on a missed payment basis 98

  81. AUSTRALIA HOME LOANS NEW SOUTH WALES/ACT For personal use only HOUSING FLOW HOUSING PORTFOLIO 1 Portfolio NSW/ACT makes up 32% of portfolio FUM and 25% of 90+ days past due. • $b $b 76% in advance of repayments which is in line with the total portfolio. • 271 272 269 264 265 256 18% of the portfolio is Interest Only & reducing. • 90+ days past due 34 34 NSW/ACT at 88bps is similar to VIC/TAS at 86bps & 28bps below national • 184 184 182 31 181 179 177 26 level. 21 21 Increase in the past 6 months, primarily driven by older vintages 21 19 • 20 17 Since FY15, credit quality has improved year-on-year, with FY17 & FY18 • 14 13 88 vintages performing better than FY15 & FY16 vintages. 83 87 87 86 79 13 13 11 9 7 6 Dynamic LVR Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 1H17 2H17 1H18 2H18 1H19 2H19 12.2% of NSW/ACT portfolio >90% DLVR • Rest of the Country NSW/ACT HOME LOANS AND NSW/ACT 90+ DELINQUENCIES 1,2 NSW/ACT DYNAMIC LVR PROFILE – SEPTEMBER 2019 1,3,4,5 % % 1.5 60 50 1.0 40 30 0.5 20 10 0.0 0 Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep 0-60% 61-75% 76-80% 81-90% 91-95% 96-100% 100%+ 13 14 14 15 15 16 16 17 17 18 18 19 19 NSW/ACT 90+ Rate Portfolio 90+ Rate without NSW/ACT Total Portfolio Total Portfolio (ex WA) NSW/ACT Portfolio 90+ Rate 1. Includes Non Performing Loans 2. ANZ delinquencies calculated on a missed payment basis 3. Includes capitalised LMI premiums 4. Valuations updated to Aug-19 where available 5. Includes Non Performing Loans and excludes accounts with a security guarantee 99

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