30 APRIL 2020

NEWS RELEASEANZ HALF YEAR 2020 RESULT & DIVIDEND ANNOUNCEMENTANZ today announced a Statutory Profit after tax for the Half Year ended 31 March 2020 of $1.55billion, down 51% on the prior comparable period. This decline was driven primarily by credit
impairment charges of $1.674 billion that included increased credit reserves for COVID-19 impacts of$1.031 billion. The valuation of investments in Asian associates was impaired by $815 million, largely
due to the impact COVID-19 is having in those markets.
Cash Profit 1 for its continuing operations was $1.41 billion, down 60% from the prior comparable
period. Cash Earnings per Share decreased 60% to 50 cents.
Entering the crisis with a strong capital position, ANZ’s Common Equity Tier 1 Capital Ratio is 10.8%
at 31 March 2020. Return on Equity decreased to 4.7%.
ANZ’s Board also determined it will defer its decision on the 2020 Interim Dividend until there isgreater clarity regarding the economic impact of COVID-19.
Group Financial Information

1Earnings ($m)

1H20

1H19

Movement

Statutory Profit After Tax

1,545

3,173-51%Cash Profit (continuing basis)

1,413

3,564-60%

Profit before credit impairment & tax

3,974

5,381-26%

Profit before credit impairment, tax & large notables

5,106

5,268-3%

Earnings per share (cents)

49.9

124.8-60%

Return on equity

4.7%

12.0%

-732bpsReturn on average assets

0.28%

0.77%

-49bpsDividend per share (cents)

Deferred80

N/ACredit Quality ($m)

1H20

1H19

Movement

Total credit impairment charge as a % of average GLAs

0.53%

0.13%

+40bps

New impaired assets

1,570890+76%

Balance Sheet ($b)

1H20

1H19

Movement

Gross Loans and Advances (GLAs)

661.3

613.8

+8%

Total Risk Weighted Assets (RWAs)

449.0

396.3

+13%

Customer Deposits

566.5

493.4

+15%

Common Equity Tier 1 Ratio (CET1)

10.8%

11.5%

-73bps

Other

1H20

1H19

Movement

Full time equivalent staff (including discontinued)

38,93939,359-1%

All financials are on a Cash Profit Continuing Basis with growth rates compared to the Half Year ended 31 March 2019 unless otherwise statedCEO COMMENTARYANZ Chief Executive Officer Shayne Elliott said: “Firstly, our thoughts are with those who have been
directly impacted by COVID-19, particularly those who have suffered from the health impacts, aswell as the millions of people who are now facing financial uncertainty.
“This is a terrible time for many and I want our customers, employees and shareholders to know weenter this crisis in very good shape to support our communities given the work completed over thepast four years to simplify our business and strengthen our balance sheet.
“Our experienced management team has implemented a four-pronged plan focused on protecting
the things that matter, adapting for a new world, engaging with key stakeholders, while still
preparing for the future.
“From a customer support perspective, we are already assisting 180,000 customers with deferrals on
loan payments. We also provided $16 billion in additional lending, mainly to our long-term
investment-grade institutional customers to support them through COVID-19. This unparalleledlevel of customer support is ultimately in the long-term interests of all stakeholders, including
investors.
“From an operational perspective, excluding our Australian branch staff, we have more than 95% of
our people working from home while still providing the essential banking services required by thecommunity. This move to a new way of working was completed by 17 March, including our offshore
delivery centres, and was supported by recent investments in technology and agile work practices.
“While the health implications of this crisis are different, the reality is the financial sector has faced
major shocks every seven to 10 years on average. This reinforces our prudent approach to capitaland liquidity, as well as the work to simplify our business and focus on productivity. Our conservative
approach over recent years, highlighted by our focus on owner-occupier home loans and notoffering a retail home loan product to the SMSF sector, are examples of this approach,” he said.
Commenting on the Group’s most recent financial performance, Mr Elliott said: “This was areasonable result given the tough trading conditions being experienced before the crisis hit. We
maintained our focus on productivity and continued to target balance sheet growth in our preferredsegments. Loan losses heading into March were at historically low-levels and we are well positioned
to manage the higher credit charges taken as a result of COVID-19.
“COVID-19 has clearly impacted our performance, however the work done over many years tosimplify our business, strengthen our balance sheet as well as developing a more agile and resilient
workforce meant we were well-prepared to support customers through the crisis and I’m confident
we will emerge even stronger,” Mr Elliott said.

DIVIDEND
ANZ also today announced its Board will defer a decision on the 2020 interim dividend until there isgreater clarity regarding the economic impact of COVID-19. In assessing options, ANZ considered
the high level of uncertainty in the economic outlook as well as guidance from the Australian
Prudential Regulation Authority (APRA) that all Authorised Deposit Taking Institutions and Insurers
should seriously consider deferring decisions on dividends until the outlook is clearer. As part of its
regular engagement with APRA, ANZ has also had ongoing discussions regarding both its capital
position and various stress testing scenarios.

ANZ Chairman David Gonski said: “This decision is not about our current financial position and ANZ
has not received any concerns from APRA regarding our level of capital. The Board agrees with theregulator’s guidance that deferring a decision on the 2020 interim dividend is prudent given thepresent economic uncertainty and that making a decision at this time would not have been
appropriate.
“This was a very difficult decision and the Board considered all options available as we understandthe impact this will have on those shareholders who rely on dividends,” Mr Gonski said.
The Board will carefully consider all factors over the coming months and continue to assess theevolving situation, including the severity of community lock-downs, before determining a final
position on the interim dividend. ANZ will provide an update as part of a trading update in August inconjunction with the release of its Pillar 3.

COVID-19 CUSTOMER SUPPORTANZ launched support packages for retail and commercial customers in Australia and New Zealandthat included the option of an up to six-month loan payment deferral. ANZ also reduced a range ofvariable and fixed rates for home and business customers, including being the only Australian bankto reduce mortgage rates after the most recent Reserve Bank decision.
Australia Retail & Commercial
 Received ~105,000 requests for assistance on $36 billion worth of home loans. This
represents 14% of ANZ’s home loan portfolio.
 Repayment deferrals have been provided on $7.5 billion of lending to commercial customers,
with assistance provided to ~15% of commercial lending customers.
 Pre-approved more than $4 billion in lending to 35,000 small business customers withexisting transactional accounts (average of $140,000 each); provided temporary overdraft
increases for ~5,500 commercial accounts.
 Reallocated and retrained staff to support key areas with more than 500 branch staff
assisting with clearing call centre back-logs; trained an additional 300 people to assist
customers contacting via digital channels. Responded to more than 6,000 social media posts.
New Zealand Provided financial support to more than 30,000 personal, home and business loan customers
through loan deferrals or adjustments with lending of around ~NZ$12 billion.
 Deferred 19,600 home loan repayments and moved 20,900 to interest only.
 Granted 1,345 temporary overdraft facilities to businesses needing more working capital,
worth nearly NZ$25 million; received ~820 requests regarding the Business Finance
Guarantee Scheme.
Institutional
 Increased core lending by 12%, or $16 billion, during the half, with the majority extended in

March to support customers in our priority sectors with their balance sheet needs.
 Joint Lead Manager on $13 billion Treasury bond for the Australian Office of Financial
Management, helping fund the Australian Government’s COVID-19 support package.
 Maintained customer service standards despite a 35-45% increase in transaction volumes oftrade and lending processes. This was achieved with 100% of staff in operations hubs and
85% of global operations teams working from home.

CREDIT QUALITY
The total provision charge for the half was $1.7 billion, up from $402 million in the previous half. This
includes a collective provision charge of $1.0 billion, taking the collective provision (CP) balance to$4.5 billion, which compares to $2.5 billion before the adoption of AASB 9 in September 2018. The
increase in CP has been driven by a deterioration in economic forecasts as a result of COVID-19, notby customer downgrades or increased delinquencies. The individually assessed provision charge of$626 million, increased $228 million compared to 2H19.

PRODUCTIVITY
ANZ will maintain its focus on productivity given the impact of COVID-19 on its operations. Actions
taken include having staff draw down leave balances, with budgets for salary increases in 2020/21 tobe significantly reduced and focused only on those below senior management. While final
assessments will be made as part of the Full Year results, variable remuneration is expected to bematerially reduced given the impact COVID-19 has had on shareholders and focused primarily on
rewarding those such as branch and call centre staff who have been working hard to provide
essential services to customers.

CLOSING REMARKS
Commenting on the outlook Mr Elliott said: “The coming months will be difficult. The COVID-19
crisis has already evolved at such a pace it is difficult to predict how deep the economic crisis will beor how long the recovery will take.
“However, the swift action from Governments in Australia and New Zealand, as well as the healthy
state of corporate balance sheets going into the crisis, has both countries well placed to not only
manage the health aspects but also lessen the economic impact.
“While dealing with the immediacy of the current crisis as well as protecting our customers and staff
remains our top priority, we are not sitting idle waiting for changes to happen to us. We are
analysing customer behaviour and fast tracking digital investments given we know there will beopportunities for banks that focus on their customers, stay prudent, read changing customer needs
and have the resources to invest for the long-term.
“Finally, I’d like to acknowledge the hard work of the ANZ team who demonstrated resilience,
agility, customer focus and accountability and I have never been prouder to lead a team that so
genuinely cares about their customers, colleagues and communities, ” Mr Elliott said.
Interviews with Chief Executive Officer Shayne Elliott, Chief Financial Officer Michelle Jablko
and Chief Risk Officer Kevin Corbally are available at www.bluenotes.anz.com
For media enquiries contact:

For investor enquiries contact:

Stephen Ries, +61 409 655 551
Nick Higginbottom, +61 403 936 262

Jill Campbell, +61 412 047 448
Cameron Davis, +61 421 613 819

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