News Release
For Release: 5 May 2021

2021 Half Year Result & Proposed Dividend
ANZ today announced a Statutory Profit after tax for the Half Year ended 31 March 2021 of$2,943 million, up 45% on the previous half with key drivers including a net credit provision
release of $491 million.
Cash Profit1 for continuing operations, before credit impairments and tax, was $3,941
million, down 10%.
ANZ’s Common Equity Tier 1 Ratio strengthened to 12.4% while Cash Return on Equity
increased to 9.7%. The proposed Interim Dividend is 70 cents per share, fully franked.
GROUP FINANCIAL INFORMATION
Earnings ($m)

1H21

2H20

Movement

Statutory Profit After Tax

2,943

2,032

45%

Cash Profit (continuing operations)

2,990

2,345

28%

3,941

4,395

-10%

4,866

5,047

-4%

Earnings per share (cents)

105.3

82.8

27%

Return on equity

9.7%

7.6%

206bpsReturn on average assets

0.57%

0.43%

14bps

Net Tangible Assets per ordinary share ($)

20.57

20.04

0.53

Dividend per share (cents)

70

35

35

Credit Provision Charge ($m)

1H21

2H20

Movement

Total Provision Charge / (release)

(491)

1,064

large

Individual Provision Charge / (release)187

395-53%

Collective Provision Charge / (release)

(678)

669

large

Balance Sheet ($b)

1H21

2H20

Movement

Gross Loans and Advances (GLAs)

618.6

622.1

-1%

Total Risk Weighted Assets (RWAs)

408.2

429.4

-5%

Customer Deposits

561.5

552.4

2%

Common Equity Tier 1 Ratio (CET1)

12.4%

11.3%

110bps

Other

1H21

2H20

Movement

38,55538,5790%Profit before credit impairment & tax
Profit before credit impairment, tax & large/notables

Full time equivalent staff

21 Cash Profit excludes non-core items included in Statutory Profit with the net after tax adjustment an increase to Statutory Profit of $39m, made up ofseveral items.
2 Large/notables are items within Cash Profit that, given their nature and significance, are presented separately to provide transparency and aid
comparison. Large/notable items were -$817m after tax.

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

CEO COMMENTARY3ANZ Chief Executive Officer Shayne Elliott said: “Work done over the past five years tosimplify our operations, strengthen our balance sheet and de-risk the Group helped us
deliver a strong result this half, meaning we are well-placed to continue to support theongoing economic recovery and customers doing it tough.
“Following the trends of the first quarter, all parts of our business performed well. Costs
were down 2% and we also increased investment in new digital capability that will provide
ongoing productivity improvements and better customer outcomes.
“Australia Retail & Commercial had another good half, becoming the third largest homelender in the market. Deposits performed well, with retail and small business customers
behaving prudently by building solid savings and offset balances through the half.
“Lower revenues in our Institutional business were largely expected due to the impact offalling interest rates as well as a normalisation of Markets revenue after an exceptionallystrong 2020. Our disciplined focus on credit management has been a positive with ourlargest customers going into the pandemic from a position of strength and adapting fast tothe rapidly changing environment.
“New Zealand continued its recent strong performance with record lending growth combinedwith disciplined cost management. This is a well-run business that is an important part ofour overall portfolio and is well-placed to manage increased regulatory capital demands.
“Improving credit conditions resulted in a release of almost $500 million during the half.
While the pandemic hasn’t resulted in large credit losses to date, we still have almost $4.3
billion in reserve if conditions deteriorate.
“Capital generation was a feature which, along with our already strong balance sheet andprudent management through an incredibly volatile period, meant we were able to return
our dividend to a level more in line with our target and sustainable payout ratio.
“Our disciplined approach to capital management also meant we could support customers
through the COVID-19 pandemic without the need to dilute existing shareholders throughequity raisings.”
DIVIDEND & CAPITAL
ANZ’s capital position has further strengthened with a Common Equity Tier 1 Ratio of 12.4%(~12.5% on a pro-forma basis4), remaining materially above the Australian Prudential
Regulation Authority’s ‘Unquestionably Strong’ benchmark.
A combination of strong capital management, solid earnings and improving conditions
provided the Board with confidence to pay an interim dividend of 70cps, up from 35cps at
the final 2020 result.
ANZ also announced the Dividend Reinvestment Plan (DRP) will continue to apply for theInterim 2021 Dividend at no discount and that it plans to neutralise the impact of the shares
allocated under the DRP.
Further, our capital position provides flexibility to return surplus capital to shareholders. Anydecision will balance the importance of capital efficiency against maintaining anappropriately strong balance sheet as we continue to get more clarity around the economicsituation.

3 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 2020 unless otherwise stated.
4With conversion of NZD500m Capital Notes

CREDIT QUALITY
The total provision result in the first half was a net release of $491 million which comprises:a collective provision (CP) release of $678 million
an individually assessed provision (IP) charge of $187 million

Despite ongoing uncertainty, the CP release is a result of the improving economic outlook
over the course of the half, as well as some loan volume reductions. Home loan and small
business customers have also behaved prudently by building savings buffers through thehalf.
The low IP charge reflects the continued impact of government and bank support packages
and our long-term strategy and disciplined focus on customer selection in Institutional. As at31 March, the CP balance of $4,285 million represents additional reserves of $909 million
compared with pre-COVID levels at 30 September 2019.
OPERATIONAL HIGHLIGHTS
Despite a volatile environment with significant demand from customers, we were again able
to reduce the cost of running the bank through streamlining and automation, while
processing record volumes.
Australia Retail & Commercial
 Provided ~92,000 new home loan accounts, lifting ANZ’s position to the third largest
home lender in the market.
 Small Business customers who use accounting software platforms can now apply forlending online and get funds within 4 days, reduced from 30 days.
 42% of all retail sales in Australia, including home loans, are now through digitalchannels.
 Strong cost outcome with operating expenses down 1% on the previous half and down
2% on the prior comparable period.
New Zealand Provided ~42,000 new home loan accounts, maintaining our position as the leading
lender in NZ, while also being the first bank to require a 40% deposit from residential
property investors in a step to bring balance to the housing market.
 Funds under management for KiwiSaver superannuation at a record level of NZD17.9billion, up from NZD16.4 billion or 9% during the half.
 Acquired 12 new clearing mandates from customers, taking ANZ’s share of NZD
wholesale payments to 58%.
Institutional
 Continued focus on winning additional Clearing Services in Australia & New Zealand withmarket share increasing to 58% (from 51% in November 2020).
 Increased the number of New Payments Platform payments for other banks by 115%
when compared with the same period in 2020.
 Introduced the ability for customers to track cross-border payments via our digitalplatforms, saving around ~35,000 minutes of customer effort in the first week.
Digital & Technology
 ANZ App users increased by 23% when compared with the same period last year andtransactions up 26% over the same period.
 Launched the ability for new customers to open an account via the ANZ App;
contributing 5% of all new to bank customers across all channels or ~8,000 newcustomers in Australia.
 Introduced the ability for customers to put a ‘gambling block’ on credit cards in March
2021 with more than 1,000 customers activating the service in the first month.

CLOSING REMARKSMr Elliott said: “While many households and businesses are still doing it tough, Australia andNew Zealand are emerging from the sharpest contraction in economic activity in ageneration quicker and stronger than many believed possible. This is a credit to Government
intervention and the industry working hard to provide customers with the support needed ata critical time.
“There is still significant uncertainty. You only need to look at how the pandemic is playingout overseas, as well as recent lock-downs, to realise how quickly the situation can escalate.
“India, a country in which we have a deep history, is having a particularly difficult time.
Despite the circumstances, our team in India are working hard to do their best for ourcustomers and their determination has been inspiring.
“We announced last week a donation of $1 million to World Vision’s India’s COVID-19 appeal
and a further $1 million to match customer and staff donations. We are continuing to do all
we can to support our people and their families through this difficult time.
“ANZ is in a strong position both financially and operationally. We are well capitalised andour disciplined approach to costs over many years has us well placed to invest inopportunities to grow our business in targeted segments. The work to digitise core
processes and platforms continues at pace and this will be more visible to customers
towards the end of the year,” Mr Elliott said.
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 Relations
Tel: +61 3 8654 7716

Approved for distribution by ANZ’s Continuous Disclosure Committee