News Release
For Release: 29 October 2020

2020 Full Year Result & Proposed Final Dividend
ANZ today announced an unaudited 1 Statutory Profit after tax for the Full Year ended 30
September 2020 of $3.58 billion, down 40% on the prior comparable period.
Cash Profit 2 for its continuing operations was $3.76 billion, down 42% on the priorcomparable period.
This decrease was primarily driven by Full Year credit impairment charges of $2.74 billion,
which increased from prior year due to the impact of COVID-19 and a first half impairmentof Asian associates of $815 million, also related to the pandemic.
ANZ’s Common Equity Tier 1 Capital Ratio remained strong at 11.3%, while Return on
Equity decreased to 6.2%. The proposed Final Dividend is 35 cents per share, fully franked.
GROUP FINANCIAL INFORMATION
Earnings ($m)

FY20

FY19

Movement

Statutory Profit After Tax

3,577

5,953-40%

Cash Profit (continuing operations)

3,758

6,470-42%

Profit before credit impairment & tax

8,369

9,958

-16%

Profit before credit impairment, tax & large/notables

10,115

10,216-1%

Earnings per share (cents)

132.7227.6-42%

Return on equity

6.2%

10.9%-471bps

Return on average assets

0.36%

0.68%

-32bps60

160-100Provision Charge ($m)

FY20

FY19

Movement

Total Provision Charge

2,738

795

large

Individual Provision Charge

1,021

778

+31%

Collective Provision Charge

1,717

17large

Balance Sheet ($b)

FY20

FY19

Movement

Gross Loans and Advances (GLAs)

622.1

618.8

+1%

Total Risk Weighted Assets (RWAs)

429.4

417.0

+3%

Customer Deposits

552.4

511.8+8%

Common Equity Tier 1 Ratio (CET1)

11.3%

11.4%-2bps

FY20FY19Movement

38,57939,060-1%

Dividend per share (cents)

Other
Full time equivalent staff (including discontinued)

1 The financial results are in the process of being audited by the Group’s external auditors, KPMG. The Group’s Annual Report will
be available on 9 November 2020, and will include a copy of KPMG’s audit report.
2 Cash Profit excludes non-core items included in Statutory Profit with the net after tax adjustment an increase in Statutory Profit of$83m, made up of several items. All financials are on a Cash Profit Continuing Basis with growth rates compared to the Full Year
ended 30 September 2019 unless otherwise stated.

CEO COMMENTARYANZ Chief Executive Shayne Elliott said: “We could never have forecast 2020, a year thatstarted with devastating bushfires in Australia and unwound with the waves of a pandemic
that continues today. While we still cannot predict its course, we remain confident we candeal with its impacts.
“As a bank, we entered 2020 in robust condition. We have a strong balance sheet withrecord levels of capital and liquidity as well as provisions for potential future losses. We
want our customers to know we will continue to do all we can to support them through thetough times.
“In Australia, we achieved strong growth in our targeted home loan segments with above
system growth in the owner-occupier market. Deposits remained strong as customers took asensible approach to managing their household balance sheets. We also saw an accelerated
shift away from the use of cash and we introduced new processes to help many customers
move to online banking.
“Institutional performed well in a market defined by high levels of liquidity, low interest
rates and geopolitical tensions. Increased volatility led to strong activity in Markets
demonstrating the benefits of a diversified business. As Australia’s leading internationalbank, we remain well positioned to assist customers as the global economy improves.
“COVID-19 is contained in New Zealand and we remain well positioned to benefit from its
subsequent economic recovery. While it was a tough revenue environment, given low
interest rates and a focus on reducing or simplifying fees, we have maintained market
leadership in our targeted segments.
“While our immediate focus has been on assisting customers, we have also taken steps toprotect the interests of our shareholders by maintaining our strong capital position, tightly
managing costs and bolstering credit reserves, while still managing to pay a prudent
dividend without diluting their holdings,” Mr Elliott said.
DIVIDEND & CAPITAL
ANZ’s capital position remains strong and has improved further in the fourth quarter with aLevel 2 Common Equity Tier 1 capital ratio of 11.3% (11.4% on a pro-forma basis). Thisoutcome includes the impact of the 25 cents per share interim dividend, and additional
provisions for potential credit losses.
This capital strength and ANZ’s underlying profitability has enabled us to announce a
proposed fully-franked 2020 final dividend of 35 cents per share which will be paid toshareholders on Wednesday, 16 December 2020. This represents a dividend payout ratio of
35% on a Cash Profit basis for the Second Half (ex-large/notables) and 49% on a Statutory
earnings basis for the same period.
Outgoing ANZ Chairman David Gonski, who retired as Chairman at the conclusion ofyesterday’s Board meeting, said: “We have focused on supporting our customers while alsobuilding the strength of our balance sheet. The Board is pleased capital ratios are largely
unchanged from a year ago, despite the economic conditions and without the need for anequity raise which would have diluted existing shareholders.
“This gradual increase in our dividend from the deferred half-year dividend paid in
September will also help support our shareholders who we know rely on dividends, whileremaining in line with APRA’s guidance on dividends,” Mr Gonski said.
The Dividend Reinvestment Plan (DRP) and Bonus Option Plan (BOP) will continue to operate
in respect of the 2020 final dividend without a discount. The key dates and further
information in relation to the dividend, DRP and BOP will be provided separately.

COVID-19 SUPPORTANZ launched support packages for retail and commercial customers in Australia and New
Zealand that included the option of an up to six-month loan repayment deferral. ANZ iscontinuing to work with customers impacted by COVID-19 to restructure loans and in somecircumstances will provide an extension to loan repayment deferrals for a further fourmonths.
Australia Home Loans• ANZ has more than 1 million home loan accounts in Australia with around ~95,000
having received a deferral on their loan repayments.
• As at 15 October, ~55,000 accounts have already completed their deferral or advised
their intended action at maturity. 79% of these are returning to full payment, 20% haverequested a further deferral and 1% have restructured their loan or sought additional
support.
• Of the remaining deferrals still active, half have at least a three-month payment orgreater savings ‘buffer’; and a quarter have made at least one payment while ondeferral.
• Where we can see their transactional account data, ~80% have stable or improved
income.
Australia Commercial• ANZ has more than 236,000 commercial lending accounts in Australia with around23,000 having received a deferral on their business loan repayments.
• As at 15 October, ~15,000 accounts have completed their deferral or advised theirintended action at maturity. Of these deferrals ~1,600 have received a four monthextension with 60% of those being from Victoria and impacted by the longer lockdown.
New Zealand• ANZ has more than 529,000 home loan accounts in New Zealand with around 24,000
having received a deferral on their loan repayments.
• As at 15 October, there are ~10,000 accounts currently on a deferral plan, representing~2% of the total New Zealand mortgage book.
Institutional• Supported Institutional customers with increased core lending of $16 billion in the Marchhalf. As global liquidity conditions improved we saw many of these same customers pay
down, with core lending falling $17 billion in the second half.
CREDIT QUALITY
The total provision charge in the second half was $1,064 million and follows the $1,674
million taken at the first half. This second half charge includes an individually assessed
provision charge of $395 million and a collective provision charge of $669 million as we
strengthened credit reserves for our retail and commercial customers affected by COVID-19.
The collective provision (CP) balance increased to $5,008 million as at 30 September 2020.
CLOSING REMARKS
Commenting on the outlook Mr Elliott said: “Events of the last 12 months make it difficult topredict the course of the next year. What I do know however is we are in excellent shape tonavigate whatever challenges emerge.
“ANZ has an experienced and stable management team, a strong balance sheet and prudent
credit reserves to ensure we are able to support our customers, while still protecting thelong-term interests of our shareholders.
“While we are not managing the business expecting things to return to the way they werebefore the pandemic, nor are we sitting idle waiting for the next event to happen to us, ANZ

is well placed to respond to the opportunities that are emerging as a result of accelerated
structural shifts in the economy.
“We have invested in future growth opportunities, we have reshaped how we serve
customers and we are using our data capability to guide our decisions.
“Finally, I would like to acknowledge the terrific work of our 39,000 people who have done agreat job for our customers and shareholders in very difficult circumstances despite
competing priorities over this extended period,” 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, +61 409 655 551
Nick Higginbottom, +61 403 936 262

Jill Campbell, +61 3 8654 7749
Cameron Davis, +61 8654 7716

Approved for distribution by ANZ’s Continuous Disclosure Committee