2022
DECEMBER 2021 BASEL III PILLAR 3 / 1Q22 CHART PACK
07 FEBRUARY 2022
This document should be read in conjunction with ANZ Basel III Pillar 3 Disclosure as at December 2021 (APS 330: Public disclosure)

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
All numbers provided in this December 2021 Basel III Pillar / 1Q22 chart pack are on an unaudited basis

DISCLAIMER & IMPORTANT NOTICE

The material in this presentation is general background information about ANZ’s activities current as at the date of the presentation. It is information
given in summary form and does not purport to be complete. It is not intended to be and should not be relied upon as advice to investors or potential
investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered,with or without professional advice when deciding if an investment is appropriate.
This presentation may contain forward-looking statements or opinions including statements regarding our intent, belief or current expectations withrespect to ANZ’s business operations, market conditions, results of operations and financial condition, capital adequacy, specific provisions and risk
management practices. When used in this presentation, the words ‘forecast’, ‘estimate’, ‘project’, ‘intend’, ‘anticipate’, ‘believe’, ‘expect’, ‘may’,‘probability’, ‘risk’, ‘will’, ‘seek’, ‘would’, ‘could’, ‘should’ and similar expressions, as they relate to ANZ and its management, are intended to identify
forward-looking statements or opinions. Those statements: are usually predictive in character; or may be affected by inaccurate assumptions orunknown risks and uncertainties; or may differ materially from results ultimately achieved. As such, these statements should not be relied upon when
making investment decisions. These statements only speak as at the date of publication and no representation is made as to their correctness on orafter this date. Forward-looking statements constitute “forward-looking statements” for the purposes of the United States Private Securities Litigation
Reform Act of 1995. ANZ does not undertake any obligation to publicly release the result of any revisions to these forward-looking statements to reflect
events or circumstances after the date hereof to reflect the occurrence of unanticipated events.

1

OVERVIEWFIRST QUARTER FY2022 (PERIOD ENDED 31 DECEMBER 2021)
Net Interest Margin (Page 3)•Group Net Interest Margin was down 8bps for the quarter with underlying NIM down 5bps, largely driven by a lower exit rate at the full year (versus the second half average) and acontinuation of the structural headwinds impacting the sector•The impact of rising rates, predominantly in New Zealand, and recent deposit pricing changes are expected to moderate these ongoing headwinds in the second quarter

Capital (Page 4)•The Group’s Common Equity Tier One ratio of 11.65% includes the impact of the final dividend and solid underlying credit growth in Institutional•

ANZ announced a $1.5b On Market Buy Back in July 2021 and as at 31 January 2022, had bought back $1.015b of Ordinary Shares ($0.9b as at 31 December 2021)

Credit Quality and Balance Sheet Movement (first quarter) (Pages 5-10)•The credit quality environment has remained benign with a total provision release of $44m during the quarter. This comprises a collective provision release of $122m and an individuallyassessed provision of $78m. 1Q22 annualised individual provision loss rate was 5bps

•Risk Weighted Assets increased 4% in 1Q22, largely driven by increased Credit Risk Weighted Assets (CRWA) in Institutional. Growth was two thirds corporate business and one third
FIG with corporate CRWA reflecting increased demand for infrastructure assets from both acquisition activity and investment

Australian Mortgage Portfolio (Page 11)•ANZ has made solid progress in Australia to improve systems and processes for simple home loans with application times now in line with other major lenders. Efforts continue toimprove response times for more complex home loan applications•

Australian Home Loans balance sheet grew slightly in 1Q22. Given the high levels of refinancing activity in the sector, managing both attrition and margins remain key areas of focus

Institutional Markets Business•Revenue within ANZ’s Markets business for the month of October was softer given trading conditions. While subsequent months have performed more in line with FY21 revenue trends,
the softer start in October will likely impact First Half performance

Australia Retail & Commercial Product Change•

Changes ANZ is making to packages offered within its Australia Retail & Commercial business from March 2022 will provide customers with simpler and lower fee options•While better aligned to positive customer outcomes, the changes will have a negative transitional impact on other operating income in FY22 of ~$140m, spread evenly across the twohalves

Expenses•

Run-the-bank costs1 are expected to be broadly flat in the first half with investment spend higher as we invest in our business at a faster rate, particularly within Australia Retail andCommercial and ANZx, as well as expensing investment at a higher rate than FY21 (FY21: 79%; 1Q22: 89%)1.

Excludes the impact of foreign currency translation and the acquisition of Cash Rewards

2

GROUP NET INTEREST MARGIN (NIM)
CONTINUING OPERATIONS

Down 5bps largely driven by a lower exit rate at the full year (versus the second half average) and a continuationof the structural headwinds impacting the sector. The impact of rising rates, predominantly in New Zealand, andrecent deposit pricing changes are expected to moderate these headwinds in the second quarter

bps
165

-1
2
Minimal impact
given small CLF
that wasmanaged lower
in prior periods

-5

160

-1
Evenly spread
acrosswholesalefunding anddeposits

Largest driver
New ZealandHome Loans

1157

Large /
Notable items

1Q22-4-5bps
-8bps

2H21

1.
2.

Liquidity

Asset pricing

Asset &funding mix

Excluding Large / Notable items and Markets Balance Sheet activities
Includes the impact of discretionary liquid assets and other Balance Sheet activities

Wholesale funding 1Q22 underlying1& deposit pricing

MarketsBalance Sheetactivities23CAPITALAPRA LEVEL 2 CET1 RATIO - CAPITAL MOVEMENT

Basel III APRA Level 2 CET1

Mar-21

Jun-21

Sep-21

Dec-21

Common Equity Tier 1 Capital (AUD m)

50,78650,24551,35950,186

Total Risk Weighted Assets (AUD m)

408,166

412,210416,086

430,924%

Share buy-back remaining tocomplete $1.5bn = $588m(~14bps pro forma impact)

12.34
-0.16

-0.05

11.65
-0.48

Common Equity Tier 1 Capital Ratio12.4%

12.2%

12.3%

11.6%

Basel III APRA Level 1 CET1Mar-21

Jun-21

Sep-21

Dec-21

Common Equity Tier 1 Capital (AUD m)

45,85445,42445,555

44,101

Total Risk Weighted Assets (AUD m)

374,939

377,876

379,387

393,522

Common Equity Tier 1 Capital Ratio

12.2%

12.0%

12.0%

11.2%

Includes impact fromstrong Institutional
underlying CRWA
growth and higher
IRRBB RWA fromincreases in market
volatility and interest
rates

Sep-21

Organic Cap
Gen1 & OtherShare
Buy-Backs

FY21 Final
Dividend(Net DRP)

Dec-21

1. Net organic capital generation includes Cash Earnings (ex Large Notable Item), net of RWA movement from underlying growth and risk migration changes and capital deductions movements
4PROVISIONSTOTAL PROVISION CHARGE / (RELEASE)
1,558

$m

461

202
-18

220

206
-4

210

121
160
-39

159
-24

183

156
-30

186

237
43

194

209
258
-49

193
140
53

564
131

500

1,097

264

116
165
-49

433

236-173164

23-150-505

1Q21

2Q21-53 21-32

48-92
-44

78-122
-44

3Q21

4Q21

1Q22-341
1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q204Q20

Individual Provision (IP) charge
Collective Provision (CP) charge

LOSS RATES (ANNUALISED)
Bps

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

3Q21

4Q21

1Q22

IndividualProvision

1514111212131791129178111135Total
Provision

14148111015

14137983135-10-22-2-3-35

COLLECTIVE PROVISION BALANCECOLLECTIVE PROVISION (CP) BALANCE & COVERAGE RATIO
$m

0.75%

0.98%

0.75%

2,579

1.39%

1.17%

0.94%

2,523

3,376
1043,3783,272

Mar-19Sep-19696

4,490

Mar-18

Sep-18CP Balance (AASB139)

Modelled ECL

Additional overlays

1.16%

4,285

4,195

746

4,058

760

754

3,539

3,435

3,304

Sep-20Mar-21

Sep-21

Dec-21CP Coverage1

CP BALANCE BY PORTFOLIO

Mar-19Sep-19Mar-20

Sep-20Mar-21

Sep-21

Dec-21

Australia Retail &Commercial

1.83

1.80

2.32

2.85

2.33

2.23

2.15

Institutional

1.13

1.17

1.59

1.51

1.36

1.35

New Zealand

0.37

0.37

0.54

0.57

0.51

Pacific

0.04

0.04

0.05

0.08

0.08

1.

4,312

Mar-20CP BALANCE BY DIVISION$b1.22%

5,008

4,501
11
3,378
0

1.25%

$bMar-19

Sep-19Mar-20

Sep-20Mar-21

Sep-21

Dec-21

Corporate

1.59

1.62

2.22

2.30

2.13

2.09

2.03

Specialised

0.18

0.19

0.29

0.32

0.28

0.27

0.26

1.31

Residential Mortgage

0.49

0.52

0.81

1.06

0.78

0.79

0.77

0.53

0.50

Retail (ex Mortgages)

1.05

0.97

1.10

1.25

1.04

0.96

0.91

0.10

0.09

Sovereign / Banks

0.07

0.08

0.08

0.08

0.06

0.09

0.09

Collective Provision balance as a % of Credit Risk Weighted Assets

6RISK WEIGHTED ASSETS (RWA)

RWA BY CATEGORY1CRWA MOVEMENT – TOTAL GROUP$b$b12.7449

396391396373838161613141139

144

41748

47

1548
2212156

429

178

157

408416

47

48

1925

142

144

342.5

431

153

-0.4

-0.4

Risk

Model /Method.

CVA (incl.
Hedges)-1.3

4832350.8-2.3

Institutional growth
was two thirds
corporate businessand one third FIG withcorporate CRWA
reflecting increased
demand forinfrastructure assets
from both acquisition
activity andinvestment

Sep-21

FX

Volume / Mix

Dec-21

CREDIT RWA & EAD2 MOVEMENT$b (Dec-21 movement vs Sep-21) FX Adjusted
29.3

202198201

202

208

202

200

199

198
0.8

Mar-18

Sep-18Mar-19CRWA (ex. Instit.)

Sep-19Mar-20

CRWA (Instit.)

Sep-20Mar-21

Sep-21

Mkt. & IRRBB RWA

Dec-21
Op-RWA

8.6

3.0

Residential
Mortgage (Housing)
Credit RWA

15.8

Corporate &Specialised Lending

1.3
Sovereign & Bank

-0.5
-1.0
OtherEAD

1. Institutional RWAs are inclusive of Corporate Banking
2. EAD excludes amounts for ‘Securitisation’ and ‘Other Assets’ Basel classes, as per APS330. Data provided is on a Post CRM basis, net of credit risk mitigation such as guarantees, credit derivatives, netting and financial collateral

7

EXPOSURE AT DEFAULT (EAD)EAD COMPOSITION1

CREDIT RWA / EAD BY PORTFOLIO2

$b

930
1%
7%
4%

27%

20%

%

944
1%
6%
4%

968
1%
6%
4%

977
1%
5%
4%

1,075
1%
5%
5%

30%
28%

21%

28%

21%

30%

21%

24%

1,010
1%
5%
5%

28%

23%

1,045
1%
4%
4%

27%

25%

1,080
1%
4%
4%

27%

26%

1,123
1%
4%
4%

60

27%

40%

39%

38%

35%

39%

39%

38%

56

55

36

3736

Sep-18Mar-19Sep-19Mar-20

Sep-20Mar-21

Sep-21

5756

56

53

53
5354

53

3627%

28

28

28

111093332

31272727

77

7Mar-21

Sep-21

Dec-21

37%
11Mar-18

59

56

2741%

60

Dec-21Mar-19Sep-19Mar-20

Sep-20Residential Mortgage

Corporate

Retail (QRR & Other Retail)

Total Group

Retail (ex Mortgages)

Sovereign & Bank

Specialised Lending

Other

Corporate & Specialised

Residential Mortgage

1. EAD excludes Securitisation and Other assets whereas CRWA is inclusive as per APS 330
2. Total Group ratio for Sep-21 is inclusive of increased exposure to the RBA via higher exchange settlement account balances

Sovereigns & Banks

8IMPAIRED ASSETS / 90+ DAYS PAST DUEGROSS IMPAIRED ASSETS BY DIVISION1,3IMPAIRED LOANS / FACILITIES BY PORTFOLIO3$b$b
2.7

3
3.0

0.34%

0.35%

0.35%

0.33%

0.39%

0.40%

0.40%

2.5

2.5

0.31%

2.0

2.1

Mar-18

Sep-18Mar-19Sep-19

2.5

2.5
2.0

1.9

Sep-21

Dec-21

1

2.0

2.0

2.1

0.29%

0
2.1

2.3

22.6
2.5

2.2

2.3

2.0

1.9

Mar-20

Sep-20

Corporate

Qualified Revolving RetailResidential Mortgage

Other RetailMar-21

Specialised Lending90+ DAYS PAST DUE LOANS4

1.5%
1.00

1.0

0.62

0.5

0.0

Mar-18

Sep-18Australia R&C
1.
2.
3.
4.

Mar-19Sep-19New ZealandMar-20Institutional

Sep-20
Other2Mar-21

Sep-21% of GLA

Dec-21

0.56

Mar-180.61 0.62

Sep-180.68 0.67

Mar-190.79

0.72 0.74

0.84

0.93

Total Group Residential Mortgage

Mar-20

0.85

0.77
0.61

Sep-190.91

Sep-20Mar-21

0.54

Sep-210.52

Dec-21Retail (Pillar 3 QRR & Other Retail categories)

Excluding unsecured 90+ days past due
Other includes Retail Asia & Pacific and Australia Wealth
Impaired loans / facilities include restructured items in which the original contractual terms have been modified for reasons related to the financial difficulties of the customer. Restructuring may consist of reduction of interest,principal or other payments legally due, or an extension in maturity materially beyond those typically offered to new facilities with similar risk
As a % of Exposure at Default

9

AUSTRALIA & NEW ZEALAND 90+ DAYS PAST DUE (DPD)

CONSUMER PORTFOLIO1,2,3

COMMERCIAL PORTFOLIO4,590+ Days Past Due as a % of Total Portfolio Balances

AUSTRALIA COMMERCIAL 90+ Days Past Due1 as a % of Total Portfolio Balances

5.0

5.0

4.5

4.0
3.0

4.0

2.0
3.5

1.0

3.0
2.5

0.0
Mar17

2.0

NZ BUSINESS 90+ Days Past Due as a % of Total Portfolio Balances

Mar18

Sep18

Mar19

Sep19

Mar20

Sep20

Mar21

Sep-Dec21 21

1.0

1.5

0.8

1.0

Home Loan 90+DPD down to75bps in Dec-21,
with continued derisking of the book

0.5
0.0
Mar17

1.
2.
3.
4.
5.

Sep17

Sep17Mar18

Sep18

Mar19

Sep19

Mar20

Australia Home Loans

Australia Personal Loans

Australia Consumer Cards

NZ Home Loans

Sep20Mar21

Sep-Dec21 21

0.6
0.4
0.2
0.0Mar17

Sep17Mar18

Sep18

Mar19

Sep19

Mar20

Sep20

Mar21

Sep-Dec21 21

Includes Non Performing Loans
ANZ delinquencies are calculated on a missed payment basis for amortising and Interest Only loans
Australia Home Loans 90+ between Mar-20 and Jun-20 excludes eligible Home Loans accounts that had requested COVID-19 assistance but due to delays in processing had not had the loan repayment deferral applied to the accountAustralia Commercial includes Business Banking and Small Business Banking
NZ Business is inclusive of Agri (previously shown as a separate series), and excludes UDC

10AUSTRALIA HOME LOAN PORTFOLIOHOME LOAN FUM COMPOSITION1,2,3,4

LOAN BALANCE & LENDING FLOWS1$b$b271
9272
8269
8265
7264
7275
6214337

3126

228

1714

10

292260524954281
522662278
521562278
42243.5

13.8-1.0277.8

278.0
-16.1

Fixed Rate lending as a proportionof total flow declined across 1Q22
from ~50% to ~46%. This further
declined to ~40% in Jan-22

625744

Sep-21New Sales
excl. Refi-In

Net OFI Refi

Redraw &Interest

Repay / Other

Dec-21ANZ HOME LOAN GROWTH5146

161

156

164

168

180

186

185

186

3 month annualised (%)
15

1050Mar-18
OO P&I
1.
2.
3.
4.
5.

Sep-18Mar-19Inv P&I

Sep-19OO I/OMar-20
Inv I/O

Sep-20Mar-21Equity Manager

Sep-21

Dec-21-5
Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21
APRA System Total Housing

ANZ Total Housing

Based on Gross Loans and Advances. Includes Non Performing Loans
The current classification of Investor vs Owner Occupied 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 circumstancesInterest Only (I/O) is based on customers that request a specific interest only period and does not include loans being progressively drawn e.g. construction
ANZ Equity Manager product no longer offered for sale as of 31 July 2021
Source: APRA Monthly Banking Statistics (MBS) and Monthly Authorised Deposit-taking Institution Statistics (MADIS). Mar-18 to Mar-19 based on MBS, thereafter MADIS

11FURTHER INFORMATION

https://www.anz.com/shareholder/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

Harsh Vardhan

Senior Manager
Investor Relations+61 3 8655 0878
+61 466 848 027
harsh.vardhan@anz.com

Retail Investors

Debt Investors

Michelle Weerakoon

Scott Gifford

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

Head of Debt
Investor Relations+61 3 8655 5683
+61 434 076 876
scott.gifford@anz.com

12