News Release
For Release: 19 August 2020

Third Quarter Trading Update
ANZ today announced an unaudited statutory profit for the third quarter to 30 June 2020 of$1,327 million with an unaudited cash profit from continuing operations of $1,498 million.
Following the deferral of a decision on the interim dividend in April 2020, ANZ’s Board also
proposed an interim dividend of 25 cents per-share, fully franked.
FINANCIAL PERFORMANCE SUMMARY
Earnings ($m)

1H20

1H20
Quarterly
Average

3Q20

Statutory Profit After Tax

1,545773

1,327

Cash Profit (Continuing Operations)

1,413

707

1,498

Cash Profit (Continuing & ex Large / Notable items)

2,451

1,226

1,597

1,674

837

500

Individual Provision Charge

626313264

Collective Provision Charge

1,048

524

236

Dec-19Mar-20Jun-20

10.9

10.8

11.1

Credit Quality ($m)
Total Provision Charge

Capital (%)
APRA Level 2 CET1 Ratio
APRA Level 2 CET1 Ratio (Pro forma )1~11.3

1 Pro forma adjustments include conversion of NZ capital notes in 2022 and the announced sale of UDC to Shinsei
Bank Limited

CEO COMMENTARYANZ Chief Executive Shayne Elliott said: “Our performance during these difficult times
demonstrates the strength of our portfolio as we balance the need to support customers andour staff through this global pandemic while also providing a fair return for shareholders.
“Our company purpose of helping people and communities thrive has guided our response.
Challenges clearly still remain, however having moved quickly to protecting the things thatmatter, engaging with key stakeholders, adapting for a new world, while also preparing forthe future has us well placed.
“I’m proud of how our people have worked hard to not only support our customers but also
the broader economy. We will continue to do what we can to help customers get back on
track as this is ultimately in the long-term interests of our stakeholders, including
shareholders. We will maintain our close engagement with Government and regulators whohave played a critical role in softening the economic impact of this virus.
“During the quarter we have grown home loans in Australia well above the rest of themarket. We are also pleased with the strong deposit growth, demonstrating customers aretaking a prudent approach in shoring up their personal finances.
Australia and New Zealand Banking Group Limited
9/833 Collins Street Docklands Victoria 3008 Australia
ABN 11 005 357 522

“As a result of strong customer flows and underlying volatility, our markets business was up
60% on the first half quarterly average, while a reduction in risk weighted assets from ourInternational business also delivered a capital benefit to the Group.
“We continued the simplification of our business with the announced sale of UDC in New
Zealand to Shinsei Bank and an agreement to sell our off-site ATM fleet in Australia toArmaguard.
“We are better placed than when we went into the GFC with investments in data analytics
and real-time monitoring systems allowing us to spot trends quickly and respond to ourcustomers’ needs promptly.
“You only need to look at the reintroduction of community lockdowns in Victoria andAuckland to realise we all still have a way to go before this virus is behind us. There will be
more challenges along the way, however I’m confident Australia, New Zealand and the key
Asian countries where we operate are well placed to lead a global economic recovery,” MrElliott said.
DIVIDEND & CAPITALANZ announced today that the Board proposes a 2020 interim dividend which will see afully-franked (for Australian tax purposes) distribution of 25 cents per share paid toshareholders on 30 September 2020. New Zealand imputation credits of NZ$ 3 cents perordinary share will also be attached.
This decision took into account ANZ’s continuing capital strength and the updated regulatory
guidance, while also balancing shareholder needs with the uncertain future impact ofCOVID-19.
The record date for determining entitlements to the proposed 2020 interim dividend will be
25 August 2020. The Dividend Reinvestment Plan (DRP) and Bonus Option Plan (BOP) willcontinue to operate in respect of the 2020 interim dividend without a discount and key dates
and associated information in relation to the dividend, DRP and BOP will be provided
separately.
The interim dividend represents 46% of ANZ’s 1H20 statutory profit, or 30% of 1H20statutory profit adjusted for the impairment of Asian associates at 31 March, which reduced
statutory profit but did not impact capital as the investments are full capital deductions.
ANZ Chairman David Gonski said: “We know many of our shareholders rely on dividends.
We’ve been able to build on our strong capital position this quarter, and this has enabled us
to pay a dividend that balances the needs of our shareholders with the uncertain economicenvironment. We agree with APRA’s view that all ADIs should be prudent in considering
dividends. We arrived at our decision independently and it sits comfortably within APRA’s
guidance.”
The Group’s capital position continues to be strong, allowing ANZ to play a role in supporting
the recovery, with a Level 2 Common Equity Tier 1 capital (CET1) ratio of 11.1% at 30 June
2020. The CET1 ratio increased 37 basis points from March and benefitted from an $10billion reduction in credit risk weighted assets in Institutional (excluding the impacts ofexchange rates and risk migration), mainly within the International business.
The Group’s pro forma CET1 ratio was 11.3% and includes the conversion of the NZ$ capitalnotes in 2022 and the announced sale of UDC to Shinsei Bank Limited, expected to completein the coming weeks.

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.
In Australia, ANZ has ~84,000 deferrals in place for home loan accounts at 31 July 2020
valued at $31 billion, representing 9% of Australian home loan accounts. ANZ has deferred~22,000 business loans at 31 July 2020 valued at $9.5 billion, representing ~14% ofcommercial lending exposures. Approval processes for key government initiatives such as
JobKeeper and the SME Loan Guarantee were streamlined during the quarter.
In New Zealand, ANZ provided support to ~39,000 customers which included deferrals on
24,000 home loans valued at NZ$6 billion, representing ~6% of New Zealand’s Home Loan
portfolio. ANZ also granted ~2,700 temporary overdraft facilities to businesses needing
more working capital.
CREDIT QUALITY
The total provision charge in the June quarter was $500 million, and follows the $1,674
million taken at the first half. This new charge includes an individually assessed provision
charge of $264 million and a collective provision charge of $236 million as we strengthened
credit reserves, in particular for deferral packages and our small business customers. The
collective provision (CP) balance increased to $4,648 million as at 30 June 2020 with acoverage ratio (CP Balance / Credit RWA) of 1.25%, up from 0.75% prior to the adoption ofAASB 9 in September 2018.
An interview with Chief Executive Officer Shayne Elliott discussing the trading update can befound at bluenotes.anz.com.
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Stephen Ries, +61 409 655 551

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

Approved for distribution by ANZ’s Continuous Disclosure Committee