A message from ANZ’s Chairman
Paul O’Sullivan
ANZ reported a strong result for the half year ended 31 March 2023, delivering record
revenues and cash profit for our shareholders. All four businesses – Australia Retail,Australia Commercial, New Zealand and Institutional – performed strongly for our customers.
Our Statutory Profit after tax for the half year was $3,547 million, down 1% on theprevious half.
Cash profit (from continuing operations) was $3,821 million, up 12% on the previous half.
ANZ’s Common Equity Tier 1 Ratio was strong at 13.2% and Cash Return on Equity was 11.4%.
The Interim Dividend of 81 cents per share amounts to approximately $2.4 billion being paid
to you, our shareholders. It is fully franked for Australian investors and carries full imputation
for New Zealand shareholders.
The Board is pleased with the strong financial and strategic
outcomes across the business.
The positive result is the outcome of our strategy tosimplify, reshape and de-risk the business in recent years.
ANZ has sold more than 30 non-core businesses in thepast seven years and has replaced all of the foregonerevenue from those disposals with better quality income.
It also reflects a strong focus on operational performanceand customer experience across all our divisions.
This was the first result reported under our new
Non-Operating Holding Company structure which will
provide ANZ with greater flexibility and potential to create
additional value over time.
In Australia Retail we maintained momentum in homelending, while the successful roll out of our new digitalbanking platform ANZ Plus continued with more than
$6 billion in deposits at the start of May, bringing in tensof thousands of new customers to ANZ.
Institutional posted a record half-year result, producing
strong returns across the Division with payments andcurrency processing, particularly for other financial
institutions, leading the way. The performance of theinternational business was notable, contributing morethan 60% of revenue growth.
The Commercial business is now operating as astand-alone division. Revenue was up in the half,
generating the highest return on equity of our divisions,driven by disciplined margin management and a strong
deposit base.
In New Zealand, we also completed the single largestregulatory program in our history, BS11 – a hugely
complex program involving thousands of staff and morethan five years of work – while our team also worked tosupport communities affected by the flooding in Auckland
and Cyclone Gabrielle.

And our portfolio of businesses continues to evolve. During
the half we progressed the regulatory applications toacquire Suncorp Bank and took further steps to strengthen
our ecosystem strategy, including by growing Cashrewards
and investing in View Media Group.
There are some challenging times ahead. We are seeing
intense competition in retail banking in Australia and
New Zealand. Sustained higher inflation and interest rates
will create difficult conditions for some households andbusinesses across the economy.
Thankfully the number of ANZ customers in difficulty
remains low for now. Nonetheless, the Board, in linewith accepted accounting policy, has seen it appropriate
to set aside $4 billion in collective provisions – over andabove our record level of capital – to protect our balance
sheet and shareholders’ interests should the economy
deteriorate.
The management team has built a business withgeographic diversification, a robust capital position anda strong and diverse deposit base. As a result, ANZ
stands ready to help our customers in these potentiallychallenging times.
Finally, I would like to acknowledge the strong contribution
by our people across the ANZ network. The ANZ teams’
unrivalled commitment to our culture, our customers, ourshareholders and the broader community is our best asset.
Regards

PAUL O’SULLIVANCHAIRMAN

From a credit quality perspective, your bank remains ina strong position. The balance sheet is one of the best
capitalised in the world and ANZ was among the firstbanks to successfully access global funding markets after
the recent period of instability.

2023 HALF YEAR HIGHLIGHTS$3,821 million

81 cents

2H22

2H22

1

CASH PROFIT(Continuing operations)1

7 cents$3,402 million

7%

128 cents

DIVIDEND PER SHARE

CASH EARNINGS PER ORDINARY SHARE(Continuing operations)

74 cents

2H22

119 cents

Cash profit excludes non-core items included in statutory profit and is provided to assist readers in understanding the result of the core businessactivities of the Group.
The non-core items are calculated consistently period on period so as not to discriminate between positive and negative adjustments, and compriseeconomic hedging and similar accounting items that represent timing differences that will reverse through earnings in the future.
The net after tax adjustment was an increase to statutory profit of $274 million (all attributable to continuing operations) made up of several
items. Refer pages 71 to 73 of the Results Announcement for further details.

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