News Release
For Release: 18 July 2022

Trading Update – Third Quarter FY22
ANZ today released its Pillar 3 disclosures for the quarter ended 30 June 2022 and provided
the following update on trading conditions.1
ANZ Chief Executive Officer Shayne Elliott said: “This was a pleasing quarter where all ourbusinesses performed, particularly our home loan business in Australia. While rising inflationand interest rates are starting to impact some customers, household and business balance
sheets remain strong and with a collective provision balance of $3.8 billion we are wellplaced to continue to support economic growth into the future.”•Strong lending and margin momentum was evident across all our major businesses
in the quarter, with revenue up 5% (6% FX-adjusted).2 Deposits were flat excluding
FX impacts.

•Adding operational capacity and processing resilience in our Australian Home Loanbusiness has helped deliver consistently faster turnaround times across all channels,and we are in line with major peers for our key customer segments. Lending
volumes grew $2.0 billion (3% annualised) in the third quarter, with particularly
strong growth in June. We remain on track to grow in line with the Australian majorbanks before the end of the financial year and are delivering growth with an eye tomaintaining margin performance and credit quality.

•Our Commercial business is already benefiting from an increased focus following therecent restructure, with good lending growth in the quarter (up 11% annualised).

•In New Zealand, we have delivered disciplined growth across core products.

•The Institutional business performed well with customer lending growth focussed ondelivering sustainable, high quality and well diversified balance sheet growth.

•Markets revenue was $435 million for the quarter, up 7% however we note thatconditions remain volatile and challenging.

•The Group Net Interest Margin (NIM) increased 3bps for the quarter and underlying
NIM was up 6bps to 164bps (1H22: 158bps) with margins improving across all
businesses. This was largely driven by the impact of rising rates, partly offset byintense price competition in the home lending portfolios in Australia and NewZealand. With interest rates projected to increase further in coming months, this isexpected to be supportive for margins in the fourth quarter.

•Costs across the Group remain tightly managed, with ‘run-the-bank’ costs3 expected
to be broadly flat for the second half despite inflationary pressures. We continue toinvest in the business at record levels, with investment expense expected to beslightly higher in the second half as we finalise our compliance with BS11 in NewZealand.

Australia and New Zealand Banking Group Limited
9/833 Collins Street Docklands Victoria 3008 Australia
ABN 11 005 357 522

•The continued low level of Individual Provisions led to a $14m credit provision charge
for the third quarter (IP $14m, CP $0m). The Collective Provision balance was flat for
the quarter (before FX), with portfolio credit quality improvements offset by amodest increase in overlays to accommodate the uncertain economic outlook.

•We are conscious of risks to the domestic and global economic outlook from factors
such as higher inflation and interest rates over the quarter, and in line with that theGroup has maintained a Collective Provision balance at 30 June 2022 of $3.78 billion,
which is $403 million higher than pre-COVID levels at 30 September 2019.

•The Group’s Common Equity Tier One ratio (Level 2) of 11.1% (Level 1: 10.4%)
includes the impact of the interim dividend (-41bps), broad-based lending growthacross the portfolio (-17bps) and IRRBB RWA including associated DTA impacts (-14bps). We note that much of IRRBB RWA does, all else being equal, unwind over time.

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2.

All numbers provided are on an unaudited cash profit basis and exclude large/notable items.
All comparisons are relative to the average of the first and second quarters of Financial Year 2022 unlessotherwise stated.
Excludes the impact of foreign currency translation and the acquisition of Cashrewards.

3.

For media enquiries contact:

For analyst enquiries contact:

Stephen Ries
Head of Corporate Communications
Tel: +61 409 655 551

Jill Campbell
GGM Investor Relations
Tel: +61 3 8654 7749

Approved for distribution by ANZ’s Continuous Disclosure Committee

Australia and New Zealand Banking Group Limited
9/833 Collins Street Docklands Victoria 3008 Australia
ABN 11 005 357 522