News Release
For Release: 4 May 2022

2022 Half Year Result & Proposed Dividend
ANZ today announced a Statutory Profit after tax for the half year ended 31 March 2022 of$3,530 million, up 10% on the previous half.
Cash Profit 1 from continuing operations was $3,113 million, down 3% when compared withthe prior half.
ANZ’s Common Equity Tier 1 Ratio was strong at 11.5% and Cash Return on Equity was10%. The proposed Interim Dividend is 72 cents per share, fully franked.
GROUP FINANCIAL INFORMATION
Earnings ($m)

1H22

2H21Movement

Statutory Profit After Tax

3,530

3,219

+10%

Cash Profit (continuing operations)

3,113

3,208-3%

Profit before credit impairment & tax

4,157

4,455-7%

Profit before credit impairment, tax &large/notables 2

4,138

4,592-10%

Earnings per share (cents)

110.8

113.0-2%

Return on equity

10.0%

10.2%

-18bpsReturn on average assets

0.62%

0.62%0bps

Net Tangible Assets per ordinary share ($)

20.64

21.09-2%

Dividend per share (cents)

72

72

0Credit Provision Charge ($m)

1H22

2H21

Movement

Total Provision Charge / (release)

(284)

(76)

large

Individual Provision Charge / (release)8769+26%

Collective Provision Charge / (release)

(371)

(145)

large

Balance Sheet ($b)

1H222H21

Movement

Gross Loans and Advances (GLAs)

655.0

633.8

+3%

Total Risk Weighted Assets (RWAs)

437.9

416.1

+5%

Customer Deposits

611.1

593.6

+3%

Common Equity Tier 1 Ratio (CET1)

11.5%

12.3%

-81bps

Other

1H22

2H21

Movement

40,01240,221-1%

Full time equivalent staff (including discontinued)
CEO COMMENTARY 3•••123

Positive balance sheet growth in Australia driven by improvements in home loan
processing capacity.
Strong home loan momentum in New Zealand delivering market share growth.
Institutional customer revenues grew strongly with risk-adjusted lending margins
expanding.

Cash Profit excludes non-core items included in Statutory Profit with the net after tax adjustment a reduction to Statutory Profit of $422m, made up of
several items.
Large/notables are items within Cash Profit that, given their nature and significance, are presented separately to provide transparency and aidcomparison. Large/notable items were -$43m after tax for the half.
All commentary is presented on a Cash Profit continuing basis excluding large/notable items with growth rates compared with the half year ended 30
September 2021 unless otherwise stated.

•Costs were tightly managed with ‘run the bank’ expenses coming in flat for the halfwith investment focussed on operational resilience and new growth opportunities.

ANZ Chief Executive Officer Shayne Elliott said: “This was an important half in the continued
transformation of ANZ.
“The introduction of our new retail banking platform in Australia, ANZ Plus, designed andbuilt by our own teams using the world’s best technology was a key milestone. While still insoft launch, the first ‘savings and transact’ product on ANZ Plus, a proposition focused on
helping customers better manage their financial wellbeing, is tracking well and will become
the core deposit and transaction product offered to new customers.
“Investments in our home loan processing capacity in Australia drove positive balance sheet
momentum while processing times are comparable to our major peers. We are on target togrow in line with the Australian major banks by the end of our financial year but will do sowith an eye to our margin performance.
“Our position in New Zealand remains strong and we delivered disciplined growth across ourcore products, particularly in home loans. We made good progress in finalising ourcompliance with BS11 and expect to have this program largely completed this year. This has
been a major initiative that will result in a significantly stronger New Zealand franchise.
“Institutional customer revenues continued to grow with a focus on sustainable, high quality
and well diversified balance sheet growth. We also saw strong growth in processing payment
volumes for other Financial Institutions with processing for other banks is now generating
revenue of more than $150 million per annum at an ROE exceeding 40%.
“Costs across the Group remained tightly managed with ‘run the bank’ expenses coming inflat for the half, despite growing inflationary pressure. Productivity remains a key priority as
we prioritise investments on increasing operational resilience and positioning the bank for
new growth opportunities.
“These investments include building the new retail banking platform in Australia, furtherdeveloping our sustainable finance capabilities, building a new Retail foreign exchange
proposition due later this year, rolling out Salesforce as a single customer service tool acrossthe entire enterprise and the continued migration of our applications to the cloud,” Mr Elliott
said.
DIVIDEND & CAPITAL
ANZ’s Common Equity Tier 1 Ratio of 11.5%, remains above the Australian Prudential
Regulation Authority’s ‘Unquestionably Strong’ benchmark. The Board considered an Interim
Dividend of 72 cents per share (cps) was appropriate and is consistent with its stated target
Dividend Payout Ratio (DPOR) of between 60% and 65% (cash continuing, ex large/notablesbasis).
ANZ has led the industry on returning capital to shareholders and has just completed theon-market buy-back of $1.5 billion of equity, bringing the total capital returned over five
years via buy-backs and neutralising the Dividend Reinvestment Plan (DRP) to more than
$5.5 billion.
ANZ is considering options for the best use of capital, including investing in additional
growth opportunities or returning any capital excess to its regulatory requirements toshareholders. ANZ will update the market on any decisions in a timely manner. ANZ also
stated the DRP will continue to apply for the Interim 2022 Dividend at no discount.
CREDIT QUALITY
The total credit provision result for the first half was a net release of $284 million
comprising:••a collective provision (CP) release of $371 million
an individually assessed provision (IP) charge of $87 million

Customers are generally emerging from the pandemic in a position of strength, with healthybalance sheets and low levels of arrears across key segments, leading to a low IP charge forthe half. Disciplined focus on strategy, customer selection and portfolio de-risking overmultiple years has contributed to this strong result.
An improving risk profile during the half drove the CP release and is a reflection of bothobserved portfolio strength and a recognition that some of the more acute risks from thepandemic are receding. However, the uncertainties associated with geo-political events andrising inflation and interest rates, as well as the recent Australian floods have been reflectedin management overlays of $618 million. Our CP balance at 31 March 2022 of $3,757 million
represents additional provisions of $381 million compared with pre-COVID levels at 30
September 2019.
PROPOSED NON-OPERATING HOLDING COMPANYANZ also announced today it intends to lodge a formal application with APRA, the Federal
Treasurer and other applicable regulators to establish a non-operating holding company andcreate distinct banking and non-banking groups within the organisation. This is consistent
with how many Financial Institutions are structured and will provide ANZ with greater
flexibility and the potential to create additional value for shareholders over time. Following
preliminary discussions, APRA has advised it has no in-principle objection to the proposed
restructure. ANZ has also consulted other key Australian and New Zealand regulators and todate has not received any objections. Consultation and engagement remains ongoing.
Should the proposed restructure proceed, a new listed parent holding company will becreated with two wholly owned distinct groups of entities sitting directly beneath it. Thesewould include the ‘Banking Group’ which would comprise the current Australia and NewZealand Banking Group Limited and the majority of its present-day subsidiaries and a ‘NonBanking Group’, which would allow banking-adjacent businesses to be developed or acquired
to help bring the best new technology and non-bank services to our customers. The majorityof ANZ’s 1835i investments and similar holdings would move to the Non-Banking Group.
Under this new structure there will be no impact on customers and no change to how ANZ’sbanking operations are regulated. As ANZ proceeds with a formal application, acomprehensive consultation program with shareholders, employees and other stakeholders
will be undertaken. The proposal is subject to final ANZ Board approval and regulatory
approvals and will require approval by the Federal Court and ANZ shareholders. Furtherinformation about the proposal can be found at http://shareholder.anz.com
DIVISIONAL HIGHLIGHTS
Australia Retail & Commercial• Drove positive balance sheet momentum by increasing home loan processing capacity by
30% with assessment times now in line with major peers.
• Launched first customer ‘savings & transaction’ proposition, built on ANZ Plus, theGroup’s new retail platform in Australia, that will help customers improve their financial
wellbeing by giving them greater visibility and control over their money.
• Completion of Cashrewards acquisition bringing ~300k active retail customers to ANZ
while driving deeper engagement, new customer acquisition opportunities and a better
merchant proposition.
• Separated out commercial businesses in Australia, creating a new division to increase
focus and better prepare it for future growth opportunities.
• Launched Rapid Refinance in February with eligible SMEs only requiring two essential
documents when they apply to refinance their secured and unsecured loans of up to $1million.
New Zealand• Grew home loans by 7% half-on-half, taking ANZ’s total home loan book in NZ to morethan NZ$100 billion and increasing market share by 28bps to 30.66%.
• Supported New Zealand’s largest ever sustainable financing worth NZ$1.25 billion withMetlifecare and partnered with Auckland Council to create one of the first Sustainability
Linked Derivatives in the New Zealand market.
• Maintained position as New Zealand’s biggest fund manager and KiwiSaver provider
managing over NZ$37 billion in investments for more than 650,000 investors.

Institutional• Equity investment and strategic partnership with Pollination bringing together ANZ’s
institutional bank with Pollination’s capabilities in environmentally focused corporate andinvestment advisory.
• Successfully executed first ever Australian bank issued AUD stablecoin (A$DC) payment
through a public permissionless blockchain transaction for Victor Smorgon Group.
• The number of accounts on our cash management banking platform for funds
management customers increased by 16% over the first half reflecting ongoing
momentum in our Platforms as a Service strategy.
FURTHER COMMENTS
Mr Elliott said: “Looking ahead, the economic environment is likely to be very different andwe will continue to adjust our risk appetite, business settings and investment priorities as
required. We are already seeing increased demand from our business customers and we are
well placed to continue to support them as they manage in a world of higher inflation andinterest rates.
“For ANZ, we will continue to focus on the long term – investing for tomorrow and not justrunning today. We have made good progress in building a resilient, agile bank for thefuture. Our culture is strong and we have an embedded sense of purpose as an organisation– to shape a world where people and communities thrive.”
Interviews with relevant executives, including Shayne Elliott, can be found atbluenotes.anz.com.
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

Nick Higginbottom
Senior Manager Media Relations
Tel: +61 403 936 262

Cameron Davis
Executive Manager Investor RelationsTel: +61 3 8654 7716

Approved for distribution by ANZ’s Continuous Disclosure Committee