2024
INSTITUTIONAL MARKETS BUSINESSPRESENTATION / INVESTOR DISCUSSION PACK
22 March 2024
ANZ Group Holdings Limited ABN 16 659 510 791
9/833 Collins Street Docklands Victoria 3008 Australia

ANZ 2024 Institutional Markets

IMPORTANT INFORMATION – FORWARD-LOOKING STATEMENTS
The material in this presentation contains general background information about the Group’s activities current as at 21 March 2024. It is information given insummary 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 isappropriate.
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, specificprovisions 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 theGroup and its management, are intended to identify forward-looking statements or opinions. Those statements are usually predictive in character; or may beaffected 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 theircorrectness 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 toreflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.

1

ANZ 2024 Institutional Markets

Financial Overview

3

Institutional overview - Mark Whelan

5

Focus
Technology investment
Markets – Anshul Sidher

10

Global presence

CONTENTS

Markets overview
Markets income
Markets accounting – Romesh Curtis

19

Accounting for Markets income
Markets impact on Group Net Interest Margin
Markets income composition
Institutional FY23 financial summary24

2

ANZ 2024 Institutional Markets

ANZ REVENUE COMPOSITION – FY23
Group revenue (FY23), $m
Payments &Cash Management(PCM)

New Zealand17%

Australia
Commercial

(26%)

18%

Total
Group
$20,893m

Total
Institutional1$6,734m

Trade
(7%)

32% Institutional

CustomerFranchise(31%) Markets

67%

Total Markets1$2,107m

30% Balance Sheet2

3%30%
Australia
Retail

3%
Other

(35%)

Derivative
valuation adj.3

Corporate
Finance1.

Includes -14m in ‘Other’ not shown on chart

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

3

ANZ 2024 Institutional Markets

INSTITUTIONAL - DIVERSIFIED BUSINESS
Income composition by product1, $m

Income composition by region, $m
3,444

2,793

1,149

2,555

3,444

3,290

958

2,793
2,555

755
812

672

205

214

1H22
Corporate Finance

1.

16

15
452

1,071

846
862
243

1,136

2H22
Trade

PCM

1,201

485

481

1,569

1,608

1H23

2H23

415

238

1,196

1,180

-6

-8

1H23

2H23

Other

1,390

1,003

922
406

3,290

Markets

1,303

1,375

1H22

2H22

Aus. & PNG

New ZealandInternational

Trade: Trade and Supply Chain; PCM: Payments and Cash Management

4

2024
INSTITUTIONAL MARKETS BUSINESSINSTITUTIONAL OVERVIEWMark Whelan
Group Executive, Institutional

ANZ 2024 Institutional Markets

INSTITUTIONAL FOCUS
Guided by ANZ’s purpose, culture and values, we’re building the best bank for customers that move goods and capital across theregion to sustainably grow their business

Customers

Propositions

Sectors & trends

Network

Data & technology

Grow and support
customers whovalue us

Providing leading
customer andproduct propositions

Support priority
sectors and key
customer trends

Leverage our
network to support
customers andimprove our returns

Optimise data andtechnology toenhance digital
experience

6

ANZ 2024 Institutional Markets

SIMPLIFIED NETWORK AND TECHNOLOGY SUPPORTING OUR BUSINESS

1 KYC Platform

1 Credit Limit platform

1 Cash Management platform

1 Client Services platform

Creating single
platforms that are
globally integrated
1 Markets platform

1 Trade platform

1 Customer Entitlements platform

1 Loans platform

7

ANZ 2024 Institutional Markets

STREAMLINED NETWORK OF DIGITAL AND DATA CAPABILITIESDigital backbone: Simplifying and connecting systems and data to enhance customer experience, better decision making and automation
Key principles1

Resulting inSinglesource oftruth

Use of the
GoldTier ID

Publishdata atscale

Real time integration & Networked data flow;
On demand, highly available; High data quality sources;
Reduced operational and regulatory compliance risk

8

ANZ 2024 Institutional Markets

SUMMARY

High quality
customer base

Customers
value usInvested intechnology & systems

Unique network
is a differentiator

Deep, long-term relationships,~80% of customers areinvestment grade1

Our networks, our platforms,
our banking experience

Invested >$1.2b in technology& payment systems2

Network of 29 markets,particularly focused on the
Asia Pacific region

1.

Institutional, excluding Markets, based on Exposure at Default (EAD)

2.

Total investment over ~7 years in technology & payment systems supporting Institutional customers

9

2024
INSTITUTIONAL MARKETS BUSINESS
Markets Overview
Anshul Sidher
Managing Director, Markets, Institutional

ANZ 2024 Institutional Markets

ANZ GLOBAL PRESENCE
Institutional has a significant international footprint which enables it to connect clients to opportunities globally
Asia
China

Laos

South Korea

Hong Kong

Malaysia

TaiwanIndia

Philippines

ThailandIndonesia

Singapore

VietnamJapan
Australia, New Zealand, Pacific
Australia

Cook Islands

Samoa

New Zealand

Fiji

Tonga

Papua New Guinea

Kiribati

Timor Leste

Solomon Islands

Vanuatu

Europe, America, Middle East
FranceUnited Kingdom

USA

Germany

United Arab Emirates

11

ANZ 2024 Institutional Markets

STRATEGIC IMPERATIVES: CAPABILITY-LED GROWTH IN MARKETS FRANCHISESCALE - Deeper customer
penetration in FX, Rates in
AU and NZ, network
presence in Local Markets

1

1
3

SCALE in
our CORE

2

MaintainCountercyclical
LeversGrow
Diversified
Capability

44

75%+
#1

of Franchiserevenue from
Rates and FX1FX Penetration and Market Share with
Au Corporates

GROW - Add capability for‘through-the-cycle’consistency
Cyclicals like
Commodities
outperform in higher
rates environment#1

MAINTAIN - Capability in Lower
Interest Rates Environment
Bond inventories –Government, SemiGovernment andinvestment grade
Credit outperform inlower interest rateenvironments#1

Source: Peter Lee Associates

3

FutureProofCapabilities
DigitalFabric toBusiness2

Dealer and Arranger of AUD bonds
Source: Bloomberg

4

FUTURE PROOF Capabilities
Digitised platforms– best in classpropositions for
ANZ to serve
customers of
tomorrow

Overseas supplier of Gold in India
Source: India Gold Conference

1. 5 Yr Avg Revenue based on FY19-FY2312

ANZ 2024 Institutional Markets

ANZ MARKETS POSITION OF STRENGTH
Market position

Customer FranchisePeer Leading: Largest Markets Franchise across Peers

Strong global footprint: Supporting
customers across 29 markets

Diversified: Markets accounts for ~1/3 ofInstitutional revenue with a diversified revenue
base (~40% Aus/NZ & ~60% International)

Source: Markets & Treasury revenue disclosures from major bank results

Markets
key client solutions:
Capital Markets

Leading Market Maker in AUD/NZD FX & Rates
Source: Peter Lee Associates#1 FX Penetration and Market Share with Au Corporates

FX solutions

Customer Driven: Solutions provided to>50% of Insto customers, providing aconsistent stream of revenue

Digital Led: Foreign Exchange Digital
Trading comprises ~90% of FX volume

Interest Rates andCredit risk management
Commodities#1 Dealer and Arranger of AUD bonds
Source: Bloomberg

Commodities: ANZ is a provider of bullion in Asia

13

ANZ 2024 Institutional Markets

CUSTOMER FRANCHISE INCOME
FY23 Markets Customer Franchise income$1,427m
Foreign exchange

Rates• Trading in key global currencies• Providing spot to longer term solutions• Local Market FX: Asia focused• Largest single eFX dealer in AU• Largest AU/NZ rates business• Providing bonds, swaps and cross-currency• Local Market rates: Asia focused, network value to MNCs

Linking to ANZ client segment (example)• Financial Institutions Group – FX heding

54%
(777)
24%
(347)

Credit & Capital Markets• Debt capital markets• Securitisation• Secondary market trading
Linking to ANZ client segment (example)• Diversified industries – debt placement

13%
(188)

8%
(115)

Linking to ANZ client segment (example)• Utilities & Infrastructure – AU / NZ interest rates

Commodities• Oil & Gas hedging• Carbon trading• Precious metals trading and lending
Linking to ANZ client segment (example)• Resources, Energy & Infrastructure – Energy hedging

14

ANZ 2024 Institutional Markets

ANZ MARKETS - PROPOSITION
Delivering sustainable risk adjusted returns in cyclical and counter-cyclical environments via a diversified customer business
Drivers of Markets Income:
CUSTOMER FRANCHISE

Diversification in asset class, geographic presence, product offering to Institutional customers

NON-FRANCHISEHQLA securities and IRRBB
risk management

Foreign exchange

Rates

Commodities

Credit and CapitalMarkets

Balance Sheet Trading

Customer FX

Customer demand for

Commodity demand,

Credit: Bond turnover,

Bond yields, hedging

transaction volumes

hedging solutions –commodity futures-

bid-offer spreads,

requirements,and hedging demand,

rate, cross currency,

spot spreads

credit spreads

management of

currency volatility,

options

currency bid-offer
spreads

Capital Markets: DCM

interest rate outlook,issuance levels,

trends, volatility.

securitization volumes

Repo financing

interest rate risk
profilesin Australia

demand and spreads
15

ANZ 2024 Institutional Markets

CONSISTENCY OF MARKETS INCOME
Markets historical monthly income, $m

Characteristics of monthly income distribution

Historical monthly revenue distribution (FY15-FY23)• FY23 revenues were consistent with long run through-the-cycle performance

400

expectations for the Markets business.

• Over the last 9 years, monthly revenue has followed close to a normal distribution, with350

average monthly income of ~$170m and a standard deviation of ~$48m.

300

13%

• This stability is driven by a set of "core" customers who deal with ANZ Markets on aregular basis and across multiple geographies and products. This provides important

250
200
150

diversification benefits to Group revenues.

• Franchise Income tends to be higher during periods that exhibit moderate levels of
176 (FY23 Historical Average)
170 (9Y Historical Average)

76%

market volatility, and where market risks broadly follow directional trends. Moderate
volatility encourages customer activity, while directional trends provide opportunities
from more consistent trading revenues.

130 (FY22 Historical Average)

100
11%

50
0

1.

• Such conditions typically arise in traditionally "risk off1" environments but can also arisein the context of more positive sentiment as was generally the case in 1H23.

• The positive sentiment and directional trends of 1H23 were partially offset by lessdirectional trading conditions and plateauing interest rates in 2H23.

A risk-off environment is broadly defined as one where credit spreads widen, risk-free bond yields fall, equities sell off, volatility increases, and USD strengthens

16

ANZ 2024 Institutional Markets

MARKETS INCOME COMPOSITION
Markets avg. Value at Risk (99% VaR), $m

Traded VaR has largely reverted to pre-COVID levels. Traded VaRremained flat HoH as desks kept risk positioning consistent.
Non-Traded VaR increased due to volatility in interest rates, andadditional volume and tenor in Liquidity portfolio bond holdings,
particularly in semi-government bonds.

100

40

88
82
75

80

70

67
60

40

30

50
19

20

21
18

31

17

20

10

11

11

1H23

2H23

8

8

1H20

36

2H20

1H21

2H21

1H22

2H22

Non-traded (LHS)

Traded (RHS)

Basis: Continuing Operations including Large / Notable items

17

ANZ 2024 Institutional Markets

MARKETS INCOME
1,490

Income composition, $m

131

1,164
24

88
41
244

36

1,040
21

958

931

103

49

72

248

290

89
35

812

402

52
139
338

43
128

60

253

307

263

-10
1H19

Foreign Exchange

2H19

1H20

Rates

Commodities

2H20

1H21

Credit and Capital Markets

112
53

30
181

111

80

76

35

158

189

407

370

124

437
282

270

206
32

53
32

755

223

445

189

18

356

7

830

186

327

468

238

947
257

1,149

2H21

Balance Sheet

324

381

-1

-26

1H22

2H22

1H23

2H23

Derivative val/n adj.

NII

30%

25%

34%

25%

39%

47%

51%

39%

14%

2%

OOI

70%

75%

66%

75%

61%

53%

49%

61%

86%

98%

Basis: Continuing Operations including Large / Notable items

18

2024
INSTITUTIONAL MARKETS BUSINESS
Accounting for Markets IncomeRomesh Curtis,
Chief Financial Officer, Institutional

ANZ 2024 Institutional Markets

ACCOUNTING FOR MARKETS INCOME - OVERVIEW
Markets is managed on a total revenue and returns basis
The OOI-NII composition of revenue is an accounting outcome rather than an indicator of returns or business performance.

Markets

1H22

Revenue $m

812

2H23
For example, from 1H22 to958

2H23, Markets Revenue and
Rev/RWA

3.2%

OOI $m396

NII $m416

Rev/RWA improved

However, the composition of
OOI – NII shifted, in large

3.4%
938
20

part due to the impact of
NII/AIEA
Ave Fed Funds rate

0.33%
0.1%

NII: Net Interest Income, OOI: Other Operating Income, Rev/RWA: Revenue / Average Risk Weighted Assets, AIEA: Average Interest Earning Assets

short-term interest rates on
this accounting classification

0.01%
5.1%

20

ANZ 2024 Institutional Markets

ACCOUNTING FOR MARKETS INCOME - OVERVIEWGroup’s Net Interest Margin (NIM) disclosures (NIM ‘walks’) reflect ANZ’s approach to managing margins• The Markets business is managed on a returns and revenue basis, with the composition of income (NII, OOI) merely an outcome of business activity.
Markets operations and Liquidity portfolio impacts are not typically indicators of business performance.

• NIM excluding Liquidity and Markets activities is a better reflection of ANZ’s business performance and drivers
Markets activities do have a reporting impact on the headline Group NIM, consisting of:
1. Mix impact: AIEA growth on the Markets balance sheet relative to AIEA growth in the rest of the Bank’s balance sheet:• Franchise Trading activity (reverse repurchase agreements, trading securities). Volumes impacted by changes in customer activity as well as trading
opportunities.
• Liquid Asset holdings in Balance Sheet Trading (cash and cash equivalents- cash we place with central banks, and bonds – trading or investment
securities). Volumes will vary with changes in Liquidity Management requirements.
Any adverse impact is offset by higher revenue from the higher Average Interest Earning volumes and higher returns due to the low capital intensity ofthese assets.
2. Rate impact: an increase or decrease in the ratio of Markets NII to AIEA. This can be impacted by:• An increase or decrease in interest rates, increasing or decreasing the costs of funding the Franchise book
• Changes in product mix, such as an increase or decrease in the size of the Commodities book
Any adverse impact is offset by higher revenue, reflected primarily in OOI. This asymmetry is a function of accounting requirements only, and is more
pronounced in a higher rate environment

NIM: Net Interest Margin, AIEA: Average Interest Earning Assets, OOI: Other Operating Income, NII: Net Interest Income

21ANZ 2024 Institutional Markets

MARKETS IMPACT ON GROUP NET INTEREST MARGIN
Group Net Interest Margin movement, bps

Markets activities & liquidity impact on Group NIM, bps

2H23
175
168
-7

-1

165

-1

-3

-3

-2

-4

-1
-4

-4

0
-3
-3

-4

Markets & Liquidity impact onGroup NIM -3bp

-8
1H23

2H23 movements
before Liquidity &Markets

2H23 before Liquidity
and Markets activities

15

183

1H23

Liquidity Portfolio

Markets activities

2H23

2H22

1H22
Rate impact

1H23

2H23

Mix impact

Markets and Liqudity1 as a % of Group AIEA, %
175

-2
168

-6

∆ 1H22∆ 2H22∆ 1H23∆ 2H23

0.7%

0.2%

1.4%

-0.2%

35.6%

36.3%

36.5%

37.9%

37.7%

2H21

1H22

2H22

1H23

2H23

Markets & Liquidity impact onGroup NIM -8bp

2H22

1.

2H23 movements
before Liquidity &Markets

1H23 before Liquidity
and Markets activities

Liquidity Portfolio

Markets activities

1H23

includes liquids held in Treasury

22

ANZ 2024 Institutional Markets

MARKETS INCOME COMPOSITION
Markets Other Operating Income, $m

396

464

391

422
65

-59

-1

1H22

985

938

514

460

-26

2H22

158

36

3.2%

2.9%

1H22

2H22

4.1%

3.4%

258

277
80

-12

Markets Revenue / Average RWA, %

1H23

202

18

1H23

2H23

2H23

Markets Net Interest Income, $m
416

291
123

146
282

Avg USD
Cash Rate1 %

-12

218
-50

1H22

2H22

Markets NII/AIEA, bps

164
163

20

198

175
68

-197

-223

1H23

2H23

33
22
11
1

0.1%

1.5%

FX, Rates & Credit

Commodities

4.1%

5.1%

Balance Sheet

Valuation Adjustments

1H22

2H22

1H23

2H23

‘Gold Lending’ in Commodities• Largely driven by demand from Asia-based customers for gold. Revenue and returns generated from these transactions are locked in at origination.
• Funding the position (borrowing upfront) drives an interest expense (in NII), although revenue on the customer trade is primarily reflected in OOI (via an FX derivative).
• The transaction is revenue and returns accretive to ANZ, with OOI more than offsetting the negative NII from funding the original position.
1. Effective Federal Funds Rate (Source: Federal Reserve Bank of New York)

23

2024
INSTITUTIONAL MARKETS BUSINESSINSTITUTIONAL MARKETS - FY23 FINANCIAL SUMMARYANZ 2024 Institutional Markets

ANZ DIVERSIFICATIONANZ Group structure & contribution (FY23 continuing operations)1

Aus. RetailAus. Commercial

Institutional

New ZealandPacific

Loans

44%

9%

30%

17%

0%

Deposits

25%

18%

41%

15%

1%

RWA

29%

11%

40%

16%

1%

Revenue

31%

17%

32%

17%

1%

Cash NPAT

26%

19%

40%

21%

1%

$707b

$647b

$433b

$20,893m$7,405m

1.

Divisional contribution as a percentage of Total Group. Table columns exclude Group Centre: Loans 0%, Deposits 0%, RWA 3%, Revenue 2%, Cash Profit -7%

25

ANZ 2024 Institutional Markets

INSTITUTIONAL DIVERSIFICATION
Institutional – product (FY23)1,2

Institutional – coverage (FY23)1
Australia & PNG

New ZealandInternational

Corporate
Finance

Loans

56%

8%

36%

70%

21%

9%

Deposits

38%

9%

53%

0%

42%

58%

RWA

51%

13%

36%

53%

31%

15%

Revenue

48%

14%

38%

35%

31%

34%

Cash NPAT

45%

17%

38%

43%

24%

36%

$210b

$266b

$175b

$6,734m$2,963m

1.

Contribution as a percentage of Total Institutional.

2.

Table columns exclude Central Functions Loans 0%, Deposits 0%, RWA 1%, Revenue 0%, Cash Profit -3%

3.

PCM: Payments and Cash Management

Markets

Transaction
Banking (TB)

26

ANZ 2024 Institutional Markets

SHAREHOLDER CENTRE & INVESTOR RELATIONS CONTACTSANZ Shareholders Centre

ANZ Debt Investors Centre

Equity Investors

Jill Campbell

Group General Manager
Investor Relations+61 3 8654 7749
+61 412 047 448
jill.campbell@anz.com

Cameron Davis

Executive Manager
Investor Relations+61 3 8654 7716
+61 421 613 819
cameron.davis@anz.com

Pavita Sivakumar
Senior Manager
Investor Relations+61 3 8655 2597
+61 466 848 027
pavita.sivakumar@anz.com

Retail Investors

Debt Investors

Michelle Weerakoon

David Goode

Manager
Shareholder Services & Events+61 3 8654 7682
+61 411 143 090
michelle.weerakoon@anz.com

Head ofDebt Investor Relations+61 410 495 399
david.goode@anz.com

Steven Aquilina

Associate Director
Debt Investor Relations+61 3 8654 7778
+61 447 744 542
steven.aquilina@anz.com

27