August 2020

ANZ COVID-19 MEASURESThis document provides an update to the House of Representatives Standing Committee on Economics on ANZ’s response to the COVID-19 pandemic.
Information updated since our July 2020 update is indicated with an asterisk (“*”).

1.

ANZ Loan Deferrals*

ANZ APPROVED AND PROCESSED LOAN DEFERRALS BY PRODUCT TYPE1
Number of
approvals2

Value $ of total loan balance
which has been deferred3% of all ANZ loan balances
for this category4

Total business loan deferrals

43.8K

9.6bn

6.4%

Of these: SME

41.9K

8.0bn

18.6%

Total mortgage loan deferrals

99.2K

34.1bn12.6%

Of these: business / commercial customers

14.1K

2.8bn

22.4%

Of these: retail customers

85.0K

31.3bn12.1%

Total unsecured loan deferrals

22.9K

0.8bn

1.5%

Of these: business / commercial customers

6.9K

0.6bn

1.3%

Of these: retail customers

16.0K

0.2bn

2.7%

Approvals for the period 23 March to 10 August

Notes:
1. This data has been produced for the purpose of reporting to the Australian Banking Association and Treasury and is unaudited. It may differ from ANZ’s other external reporting because of theparticular definitions used, timing or for other reasons. The Economic and Financial Statistics (EFS) standards of the Australian Prudential Regulation Authority (APRA) are used for the
categories of ‘business loans’ (loans for business purposes which includes specified business products only), including ‘SME’ (small and medium enterprise – turnover of less than $50m); and‘mortgage loans’, including those for ‘business / commercial customers’ (secured by residential mortgages), and ‘retail customers’ (personal and home loans). The category of ‘Unsecured’ will
include personal loans, credit cards and some home loans that are identified as unsecured based on APRA EFS guidance. The data includes residents and non-residents.
2. Loan numbers and value of the loan balance deferred is based on approved and processed deferrals and are net of loans where relief was subsequently partially or fully unwound at thecustomer’s request in the ANZ Australia geography (including Institutional Division). There have been 2,135 of these unwinds. Loan deferrals are for the period up to 10 August 2020 and include
temporary overdraft increases as part of the COVID package. Loan numbers is a product view; that is based on product accounts, contracts or similar arrangements. It is not the number ofcustomers.
3. Outstandings as at 7th August 2020.
4. Balances used for calculation of “% of all ANZ loan balances for this category” are as at 30 April 2020.

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2.

Customer Measures

During March 2020 ANZ announced reductions in variable interest home loan and business loan rates and introduced low fixed-rate home and business loans. We also announced a number of
support measures for personal and small business customers to help them through the current COVID-19 pandemic. In July 2020 we provided an update on how we will continue to work withcustomers still experiencing ongoing financial difficulty due to COVID-19, including how we will work with customers to restructure loans and, in some cases, extend existing deferral periods.
MeasureDetails

Home loan and small business interest rates
Decrease in variable interest home loan rates in

We announced on 20 March 2020 a decrease in variable interest home loan rates in Australia by 0.15%pa across all variable rate

Australia by between 0.40%pa and 0.50%pa across all

indices, effective from 27 March 2020.1

variable rate indices

For Standard Variable Rate owner occupiers paying principal & interest the Index Rate was decreased by 0.15% to4.39%pa.



For Standard Variable Rate investors paying principal & interest the Index Rate was decreased by 0.15%pa to 4.99%pa.

For Standard Variable Rate owner occupiers paying interest only the Index Rate was decreased by 0.15%pa to 4.94%pa.

For Standard Variable Rate investors paying interest only the Index Rate was decreased by 0.15%pa to 5.24%pa.

These decreases in variable interest home loan rates followed our earlier decreases between 0.25%pa and 0.35%pa announced
on 3 March 2020, effective from 13 March 2020.

Two-year fixed rate of 2.29%pa for owner occupiers

We are offering a two-year fixed rate of 2.29%pa for owner occupiers paying principal and interest. This rate was announced on 22
May 2020 and is a 10 basis-point increase on our previous two-year fixed rate announced in March 2020.

Decrease in variable interest small business loan rates

We announced on 20 March 2020 a decrease in variable interest small business loan rates by 0.25%pa, effective from 27 Marchby 0.50%pa

2020.
This decrease in variable interest small business loan rates followed an earlier decrease of 0.25%pa announced and effective on
13 March 2020, resulting in a 0.50%pa reduction for variable interest small business loan customers during March 2020.

1

Interest rate changes listed in this report are for Australia.
2Measure

Details

Introduction of lower rate fixed-rate business loans

We are offering a two or three-year fixed rate of 2.95% for secured small business loans up to $1 million. This rate was announced
on 5 June 2020 and is a 36 basis-point increase on our previous two or three-year fixed rate announced in March 2020. Applicantsmust have less than $1 million total business lending with ANZ and must meet ANZ's security requirements.

Personal customer support
Deferral on home loan repayments

Customers can request a deferral of home loan repayments for up to six-months, with a review at three-months. Under a homeloan repayment deferral, customers do not need to make repayments to their home loan for a period of time. Unpaid interest
during this period is capitalised, meaning it is added to the customer’s outstanding loan balance to be paid over the remaining loan
term. This measure was announced as part of ANZ’s COVID-19 support on 20 March 2020. We have begun the process ofworking with each of our impacted customers to assess their ability to begin repaying their loans.
On 8 July 2020 we announced that for customers who continue to face financial hardship due to COVID-19, we will work with themas they come off the deferral period to restructure their loans, and in some circumstances will provide an extension to loan
repayment deferrals of up to four months. Customers on existing loan repayment deferrals who have not been financially impacted
by COVID-19 will be required to begin making normal repayments at the conclusion of their deferral agreement. Customers who
are yet to apply for loan repayment deferrals are still able to do so.
We are capitalising interest, rather than not charging interest, as we consider this allows us to keep lending to more customers.
Interest represents the ‘economic cost’ of a loan. The cost includes the interest or returns required by people who provide themoney that banks then lend out (wholesale lenders to banks, depositors and shareholders), the expected losses on loans and thecost of running the bank. Banks have been able to ‘defer’ receiving interest from borrowers and add it to the principal of the loan(that is, ‘capitalise’ it). Deferring or capitalising interest means the bank can continue to lend since we expect the interest will be
paid when the economy recovers and customers are able to resume repayments. The payment history for customers with adeferral arrangement is not affected where the customer is up to date with repayments. If interest were not charged, even for adefined period, the economic value of that loan asset to the bank would be reduced by the amount of the waived interest and that
reduction in value would be reported as a loss (reducing retained earnings and capital accordingly). This would make it moredifficult to lend to others.2

2This explanation is relevant for personal and business customer support arrangements listed in this report where we capitalise interest for repayment deferrals.
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Measure

Details

Support for personal loan customers

Personal loan customers can request support including payment deferral and loan term extension (with interest capitalised) andwaiving of the Loan Administration Charge for up to six-months, with a review at three-months.
We have begun the process of working with each of our impacted customers to assess their ability to begin repaying their loans.
We are in the process of finalising what further assistance could be provided to Personal Loans customers who continue to facefinancial hardship due to COVID-19. The extension of assistance will be subject to financial assessment. In the meantime,customers rolling-off the COVID assistance are offered general hardship assistance that is available to all customers (also subject
to financial assessment).
Customers on existing loan repayment deferrals who have not been financially impacted by COVID-19 will be required to begin
making normal repayments at the conclusion of their deferral agreement. Customers who are yet to apply for loan repayment
deferrals are still able to do so.
ANZ has existing options available to customers to help with managing their personal loans, including reducing their repayments tothe minimum (if they are making higher repayments) and access to funds in a redraw facility (available for Variable Rate Personal
Loans) based on the extra repayments a customer may have paid in the past.

Support for personal credit card customers*

Personal credit card customers can request a support package that includes payment deferral of minimum monthly payments (withinterest capitalised), a reduced interest rate, waiving of fees and a restriction on card use for up to six-months, with a review atthree-months.
We have begun the process of working with each of our impacted customers to assess their ability to begin repaying theirminimum monthly payments. We are in the process of finalising what further assistance could be provided to personal credit cardcustomers who continue to face financial hardship due to COVID-19. The extension of assistance will be subject to financial
assessment.
ANZ has existing options available to customers to help with managing their credit card debt, including transfering to a productwith lower interest rates, changing credit limits, and setting up direct payments.

Increased contactless card payments limit

We have worked with AusPayNet to temporarily increase the limit for contactless card payments from $100 to $200, in order toreduce the risk of COVID-19 transmission through physical contact with cash or the payment terminal. The limit may not be
available on all terminals and all cards.

4Measure

Details

Guidance to ANZ Smart Choice Super customers

We have provided information for ANZ Smart Choice Super customers on the ANZ website at anz.com. This includes information
about the Australian Government’s early access to superannuation scheme, insurance and the impact of COVID-19 on balances.3

Advice on temporary branch closures

We publish a daily list of branches which are temporarily closed due to staffing availability or other issues associated with COVID19. The list is available on the ANZ website at anz.com.

Support for passbook account customers

We have contacted our passbook only customers to offer them an everyday account with Visa Debit access. This account can be
set up entirely from their home over the phone. A Visa Debit card provides customers who usually rely on cash the ability to pay
for goods and services over the phone or online. Customers can also set up a recurring transfer over the phone so that theirpension income can be automatically moved from their passbook account.

Support for everyday transaction account customers*

We are issuing Visa Debit cards to our transaction account customers who do not currently have Visa access. We are prioritisingcustomers in Victoria and then New South Wales. Customers can choose whether they activate these cards. A Visa Debit card
provides customers who usually rely on cash or eftpos the ability to pay for goods and services over the phone or online.

Information about COVID-19 assistance

We regularly update a dedicated COVID-19 webpage which outlines the support available to customers.
This webpage is available at anz.com/support/covid-19/.
ANZ CEO, Shayne Elliott, has emailed 4 million customers informing them of the support available and how to access it. Our
newsroom also provides information responding to Frequently Asked Questions about our COVID-19 response and information on
Australian Government support.
Due to the high volume of calls we continue to receive in response to COVID-19, customers can request online a call back. We willcall customers back as soon as possible and they will not be disadvantaged by any delay in ANZ contacting them.

Note: ANZ’s Pensions & Investments (P&I) business, including Smart Choice Super, is owned by IOOF Holdings Limited (IOOF). The sale of the P&I business to IOOF was completed on 31
January 2020.
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Measure

Details

Business customer support
Deferral on business loan repayments

Impacted business customers can request a six-month payment deferral on loan repayments for term loans and asset finance,with interest capitalised. The six-month payment support is available to most ANZ business customers. This measure wasannounced as part of ANZ’s COVID-19 support on 20 March 2020. We have begun the process of working with each of ourimpacted customers to assess their ability to begin repaying their loans.
On 8 July 2020 we announced that for customers who continue to face financial hardship due to COVID-19, we will work with themas they come off the deferral period to restructure their loans, and in some circumstances will provide an extension to loan
repayment deferrals of up to four months. Customers on existing loan repayment deferrals who have not been financially impacted
by COVID-19 will be required to begin making normal repayments at the conclusion of their six-month deferral agreement.
Customers who are yet to apply for loan repayment deferrals are still able to do so.

Support for JobKeeper

ANZ is supporting eligible small and medium business customers that have registered with the ATO for the Federal Government’s
JobKeeper scheme to bridge the gap before they receive payments. Customers can call the dedicated hotline on 1800 571 123 orrequest a call back at anz.com.au/business/covid-19/.
This measure was announced on 27 April 2020.

New business loans under the Australian Government’s

In relation to the Australian Government’s Coronavirus Small and Medium Enterprise Guarantee Scheme, eligible small businesssmall business guarantee

customers can apply for new ANZ business loans:a new three-year business loan up to $250,000, with a six-month deferral on repayments (interest will be capitalised), ora new six-month business overdraft of up to $250,000, with a six-month deferral of interest. At the end of the six-months
customers will have the option of fully repaying the overdraft or rolling the balance into a term loan for up to two and a halfyears (interest will be capitalised).

The loans are available to new and existing customers that are a small or medium-sized business with annual turnover of less than
$50 million. The loan must be used to support current and upcoming business cash flow needs only (including working capital,
liquidity and operating expenditure). For customers already experiencing financial difficulty prior to the announcement of thesemeasures, additional support measures are assessed on a case by case basis.

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Measure

Details

Temporary increases in overdraft facilities

Small business and commercial customers can request temporary increases in overdraft facilities for 12 months by up to 10%.
This measure was announced as part of ANZ’s COVID-19 support on 20 March 2020.

Deferral on Trade Finance Loan repayments

Small business and commercial customers with an eligible ANZ Trade Finance Loan can request a six-month deferral on their
Trade Finance Loans with interest capitalised if there are facility limits available.

Merchant terminal fees relief

ANZ Merchant Facility customers can request a three-month waiver of the Rental Fees for their ANZ Electronic Terminals.

Online Marketplace to support small business

Staff can purchase directly from a number of our small business customers through an Online Marketplace, replacing markets held

customersin our Melbourne Headquarters.

Information about COVID-19 assistance and other

Our business bankers are working directly with customers to inform them about support available. Customers can call us or

supportrequest a call back online. We will call customers back as soon as possible and they will not be disadvantaged by any delay in
ANZ contacting them.
Severely impacted small and medium business customers are able to access relief measures specifically to respond to theircircumstances.
We regularly update a dedicated COVID-19 webpage which outlines the support available to business customers.
The webpage includes a series of Frequently Asked Questions to assist businesses to understand what assistance ANZ can offer
them, as well as practical information such as how best to clean merchant terminals to protect their staff and customers.
It also provides links to Australian Government resources which details government assistance available to businesses impacted
by COVID-19.
This webpage is available at anz.com.au/business/covid-19/.

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3.

Community Response

ANZ has worked with our community partners throughout the COVID-19 pandemic.
MeasureMeasure Details$1.5 million to community partners to support

We have donated $1.5 million to three of our charity partners to provide additional support to some of the country’s mostAustralia’s most vulnerable

disadvantaged.
The Brotherhood of St Laurence, The Smith Family and the Financial Counselling Foundation have each received $500,000 to
support the financial wellbeing of vulnerable Australians. The organisations will use the funds for education, employment, agedcare and financial counselling programs targeted at disadvantaged people further affected by COVID-19.

Double matching employee giving

We are encouraging employees to support our community partners during this time through our workplace giving program, where
ANZ will double match employee donations.

Building financial wellbeing

We are working with community partners to adapt our financial inclusion programs such as MoneyMinded and Saver Plus, so
participants can continue building their financial skills and knowledge during this time. For example, all 60 Saver Plus sites are
now offering the program remotely with participants completing MoneyMinded financial education online, instead of face to face.

Understanding the financial wellbeing impacts of

We released the quarterly update for the ANZ Roy Morgan Financial Wellbeing Indicator in July. This showed a 6.9% decline in

COVID-19

financial wellbeing from 60.7 (out of 100) in March 2020 to 56.5 in April/May 2020. All states and territories recorded falls infinancial wellbeing for April/May 2020.
People who were already ‘struggling’ prior to the crisis and young Australians were most impacted, due to low savings (less than
one-month income in deposits) and negative employment events (stood down, reduced pay or hours).
The proportion of people with the highest financial wellbeing – considered to have ‘No Worries’ with their financial situation –decreased from 22.4% of the population in March 2020 to 16.3% in April/May 2020.

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4.

Corporate and Employee Response

ANZ is taking action to ensure the wellbeing of our employees and customers during the COVID-19 pandemic.
MeasureMeasure Details

Protecting our branch employees and customers*

In line with Government requirements, we have asked customers to not visit our branches if any of the following have applied tothem:

have been asked to self-quarantine by a government health department (e.g. because you are awaiting test results for
COVID-19 or you have recently travelled)

have had contact with someone who has been diagnosed with COVID-19 or is suspected of contracting the virus over the
past 14 daysare experiencing fever, breathing difficulties, fatigue, a cough or sore throat.

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Protecting the wellbeing of our employees*

We have moved employees to work-at-home arrangements, split teams and introduced greater distance between those
employees performing essential functions in the office. Approximately 95% of our non-branch employees are working from home.
We introduced 10 days’ paid coronavirus-related special leave, and provided a one-off payment to junior and mid-level employees
as a contribution towards working from home work expenses.
To protect our employees, we have provided them with information and additional products to ensure good hygiene practices, aswell as taken social distancing measures in our offices, including restricting meetings to video conferencing or phone calls andlimiting the number of people in elevators. Our buildings have extensive measures to keep them as safe as possible, including
thermal screening in our largest major buildings, perspex screens in our branches, regular cleaning, locking down floors, relocatingteams and having hand sanitiser and personal protective equipment available wherever we can. We have provided additional
support and protections for our employees working in locations which have seen a recent spike in COVID-19 cases. Face masks
are being worn in all of our Victorian workplaces and New South Wales branches, with a mixture of reusable and disposable
masks provided for staff use.
If an employee working from home is concerned about their personal safety (for example, in a domestic and family violencecontext), they are able to arrange with their manager to work in the office. If they are not comfortable talking directly with their
manager, they can approach our Health & Wellbeing team for support. We have planned for the return of a limited number of ouremployees to the workplace in line with the advice of Commonwealth, state and territory governments. Actions we are taking toprepare for this includes considering staggering start times, enhanced cleaning protocols, and office physical distancing
requirements throughout the workplace (including the use of lifts and stairs, meeting room limits and closing every second desk).
We have also developed a series of COVID-19 Working Safely instructions including for visiting customers, driving, hostingmeetings and domestic travel. During June, our South Australian and West Australian employees returned to the office with our
Queensland teams returning during July.
We have a range of wellbeing resources available for all staff including a digital wellbeing app, focused on support during this
COVID-19 period. We also have a comprehensive intranet site, webcasts with external medical professionals and have launched aseries of 5-minute videos led by a physiotherapist to target the common causes of discomfort whilst working at home. Additional
support for our employees working from home includes assisting them in setting up their home workspaces appropriately, helping
them to remain connected to their colleagues, and continuing to provide access to our Employee Assistance Program. To support
the mental wellbeing of our teams, we have rolled out mandatory Mental Health training for line managers and employees. The
course is designed to equip our teams with knowledge and skills to care for their mental health and to recognise the signs of those
who may be experiencing a mental health condition.

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Measure

Measure Details
We have provided links to the COVIDSafe app on our internal social media platform and anz.com. We are encouraging staff toconsider downloading it to as a way of improving the ability of our frontline health workers to trace contacts of those who havetested positive to COVID-19 and protect the workplace and the community.

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