Core Points - The article discusses the Federal Reserve's monetary policy and its implications for the economy [1] Group 1: Federal Reserve Insights - The Federal Reserve is projected to maintain a target interest rate of $2,900 billion by 2025 [1] - There is an indication of a potential increase in the Federal Reserve's balance sheet, reaching approximately $3,995 billion [1]

Core Insights - The article discusses the demand for gold in India, highlighting significant trends and figures related to the market [1]. Group 1: Gold Demand in India - India has shown a notable demand for gold, with figures indicating a total demand of 25 million units [1]. - The demand has experienced fluctuations, with a reported decrease of 40% in certain periods [1]. - The article emphasizes the importance of understanding the dynamics of gold demand in India, particularly in relation to global trends [1].

Financial Data and Key Metrics Changes - The company reported stable results with revenues flat half-on-half, and cost growth constrained to 1% [39][40] - Return on equity remains strong at 10.1%, or 10.7% when excluding capital for Suncorp [15] - The collective provision balance stands at $4.05 billion, reflecting a low individual provision loss rate of 1 basis point with a charge of $38 million [21][45] Business Line Data and Key Metrics Changes - Institutional revenue grew significantly, with customer revenues in markets increasing by 30% half-on-half, driven by international network growth [6] - The commercial business saw loan growth of 7% year-on-year, marking the strongest period of absolute loan volume growth ever [42] - ANZ Plus home loans are in limited release, with cost to acquire and serve now 45% and 30% below ANZ Classic, respectively [9] Market Data and Key Metrics Changes - Digital payments increased by 7% year-on-year, with NPP agency payments up 20% [10] - The Australian economy remains resilient, with strong household and corporate balance sheets suggesting a hard landing is unlikely [12][36] - International payments grew by 8.5% over the year, highlighting the importance of the company's international network [34] Company Strategy and Development Direction - The company is focused on acquiring Suncorp Bank, with preparations underway to integrate and enhance customer offerings [13][15] - Continued investment in digital transformation, particularly through ANZ Plus, is a strategic priority to enhance customer engagement and operational efficiency [8][9] - The company aims to leverage its diversified portfolio and strong balance sheet to navigate a complicated economic environment [11][13] Management's Comments on Operating Environment and Future Outlook - Management noted that while the global economy has shown resilience, ongoing geopolitical tensions and inflationary pressures remain challenges [11][12] - The company is optimistic about future trends, expecting margin headwinds to moderate and business momentum to support net interest income [47] - Management emphasized the importance of productivity and cost management in offsetting inflationary pressures [20][73] Other Important Information - The company announced a $2 billion on-market share buyback, one of the largest capital management exercises in its history [15] - A dividend of $0.83 per share was declared, partially franked at 65%, reflecting confidence in future performance [22][31] - The company has made significant progress in simplifying its operations, including the sale of a large part of its stake in AmBank, freeing up $668 million of capital [15][31] Q&A Session Summary Question: Clarity on the $500 million APRA overlay and home loan risk intensity - Management is working on the operational risk overlay and engaging with APRA, but no clear timing for release is available [52] - The home loan risk weights have increased, and management is exploring optimization opportunities [78] Question: Cost outlook and potential headwinds - Cost uplifts are expected due to Suncorp integration, but productivity gains are anticipated to offset some inflationary pressures [56][57] Question: Long run loss rates in the institutional business - Management acknowledged an increase in long run loss rates but emphasized improvements in risk-adjusted margins [62] Question: Competitive landscape and Suncorp Bank acquisition - Management remains confident in the value of the Suncorp acquisition, focusing on the deposit base rather than just the home loan book [92] Question: Provisioning balances and potential adjustments - Management indicated that current provision levels are prudent, with potential for adjustments as economic conditions normalize [95][97]

Financial Data and Key Metrics Changes - Statutory profit increased by 16% year-on-year, while cash profit rose by 5% year-on-year and 9% in the second half [6][60] - Common equity Tier 1 ratio stood at 12.3%, with return on equity up 47 basis points to 10.4% [6][102] - Underlying profit before provisions increased by 20% in the second half, marking the highest half-on-half increase in over a decade [6][62] Business Line Data and Key Metrics Changes - Australian home loans saw restored momentum, with approval times aligning with peers and a focus on risk-adjusted margins [9][65] - Commercial division revenue grew by 20% in the second half, the highest among all divisions, with cash profit up 15% [25][67] - Institutional business experienced a 10% revenue growth, driven by strong corporate finance results and increased transaction volumes [66][78] Market Data and Key Metrics Changes - ANZ maintained industry-leading positions in New Zealand across key segments, with a diversified and well-managed business [30] - Total Australian household debt, net of liquid assets, is around zero, the lowest in 15 years, indicating strong underlying health [39] - Average loan size for small business customers increased by about a third, reflecting the need for working capital [41] Company Strategy and Development Direction - The company is focused on restoring momentum in home loans, launching ANZ Plus, and disciplined growth in institutional and commercial sectors [9][54] - ANZ Plus is positioned as a new bank with a focus on improving customer financial well-being, with deposits growing rapidly [12][17] - The acquisition of Suncorp Bank is aimed at enhancing presence in Queensland, with integration planning already underway [49][50] Management's Comments on Operating Environment and Future Outlook - The management acknowledged significant uncertainty in the economic environment, including inflation and geopolitical tensions, but noted that customers are entering this period in strong shape [35][38] - Despite economic risks, the company is well-prepared for challenges ahead, with a focus on maintaining strong customer engagement and productivity [55][56] - The management emphasized the importance of data analysis for proactive intervention in customer support during periods of stress [44][45] Other Important Information - The company completed the formal separation of its wealth business, enhancing its risk profile [33][34] - Investment spend increased to almost $2.2 billion, with a focus on growth and simplification initiatives [84][86] - The collective provision balance increased by approximately $100 million half-on-half, reflecting prudent risk management [92][94] Q&A Session Summary Question: Thoughts on NIM leverage going forward - Management indicated that benefits from rate hikes will be reasonably well proportioned between Australian and international exposures, with a larger shift expected in Australian dollar rates [110][112] Question: Drivers of expected expense growth in FY '23 - Management highlighted inflationary pressures on salary and vendor costs, alongside the impact of exiting the wealth business and ongoing investments in technology [113][119] Question: Changes in term deposit rates - Management explained that the increase in term deposit rates was a dynamic response to market conditions and funding needs, with a diversified deposit base allowing for flexibility [125][128]

Financial Data and Key Metrics Changes - Cash profit increased by 4% compared to the first half of the previous year but decreased by 3% half-on-half [10] - Return on equity (ROE) was reported at 10%, with a proposed dividend of AUD0.72 per share fully franked [11] - Common equity Tier 1 (CET1) ratio stood at 11.5%, indicating strong capitalization [11] - Total capital return to shareholders over the past five years reached AUD5.5 billion [11] Business Line Data and Key Metrics Changes - Institutional customer revenues grew significantly, with risk-adjusted lending margins increasing [24][62] - Australian home loan processing improved, with a modest growth in volume and a 30% increase in processing capacity [26][60] - New Zealand business showed growth across all lines, with home loan volumes up 7% and risk-adjusted margins improving by four basis points [74] Market Data and Key Metrics Changes - The institutional business experienced a revenue increase of 5% half-on-half, with strong lending momentum and a focus on profitable customers [62] - The markets revenue decreased to AUD812 million, but customer franchise revenue in core FX and commodities increased by 23% [65] Company Strategy and Development Direction - The company aims to build a group with four strong franchises, focusing on sustainable long-term growth and financial well-being [30][29] - ANZ Plus, a new retail banking platform, is being developed to improve customer financial well-being and drive market share growth [34] - The company is transitioning to a non-operating holding company structure to enhance agility and unlock shareholder value [37][39] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about returning to growth in home loans and the overall economic recovery [9][90] - There are expectations of margin expansion in a higher interest rate environment, although competition remains a significant factor [90][106] - The company is focused on long-term investments and maintaining a disciplined approach to risk management [93][88] Other Important Information - The company has released AUD371 million from collective provisions, reflecting an improved credit risk profile [82] - The capital management strategy remains a priority, with a 64% dividend payout ratio maintained [85] Q&A Session Summary Question: Guidance on expenses and margins - Management acknowledged the difficulty in providing fixed targets for expenses due to changing market conditions and inflation [100][102] Question: Mortgage book performance and ANZx platform readiness - Management confirmed that the mortgage book has seen growth but acknowledged the need for improved processing capacity, which has increased by 30% [120]

2021 FULL YEAR RESULTS FULL YEAR ENDED 30 SEPTEMBER 2021 RESULTS PRESENTATION AND INVESTOR DISCUSSION PACK 28 OCTOBER 2021 Approved for distribution by ANZ's Continuous Disclosure Committee Australia and New Zealand Banking Group Limited 9/833 Collins Street Docklands Victoria 3008 Australia ABN 11 005 357 522 DISCLAIMER & IMPORTANT NOTICE 1 The material in this presentation is general background information about ANZ's activities current as at the date of the presentation. It is information given in summar ...

Financial Data and Key Metrics Changes - Statutory profit increased by 72% with earnings per share up by 65% and return on equity just shy of 10% despite elevated capital levels [12][44] - Net tangible assets increased by 5% per share, and the Board declared a final dividend of $0.72 per share, totaling $0.142 for the year [12][44] Business Line Data and Key Metrics Changes - In Australia, Retail & Commercial delivered good margin performance with home loan revenue growing over 10%, although the total home loan book fell slightly in the second half [13][55] - New Zealand reported strong performance with revenue up 8% and cash profit up 41%, while total funds under management grew by 11% [18][61] - Institutional business showed strong performance with revenue excluding markets up 2% in the second half, and markets revenue at $1.94 billion [58][59] Market Data and Key Metrics Changes - The Australian home loan book grew by $3 billion for the year, but experienced a decline of $3 billion in the second half due to processing capacity issues [56][57] - Average customer deposits increased by $17 billion in the half, outpacing growth in customer lending [52] Company Strategy and Development Direction - The company is focused on building a more agile and open business centered around financial wellbeing, with significant investments in technology and simplification initiatives [25][27] - ANZ is positioning itself for long-term growth through strategic partnerships and investments in fintech and sustainable finance [30][31][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic rebound post-COVID, but acknowledged ongoing uncertainties including inflation and supply chain issues [5][9] - The company is well-capitalized and prepared to take advantage of opportunities, with a focus on restoring momentum in Australian home loans and launching ANZ Plus [70][71] Other Important Information - The company has made significant progress in reducing operational costs, achieving a 3% reduction in run-the-bank costs on a constant currency basis [34][64] - Investment spend increased by 23% to $1.8 billion, with a focus on growth and simplification initiatives [66] Q&A Session Summary Question: Clarification on cost targets and restructuring costs - Management clarified that the $8 billion cost aspiration includes normal restructuring costs, and some current restructuring is higher due to productivity outcomes [77][81] Question: Expense targets and market income pressures - Management acknowledged that while costs are expected to grow incrementally in FY2022, they aim to achieve an exit rate of $8 billion by FY2023, with confidence in BAU expenses [92][96] Question: Divergence in market income performance compared to peers - Management attributed better performance in market income to geographic and customer diversification, with a strong multinational segment [94][95]

Financial Data and Key Metrics Changes - The company reported a statutory profit of $2.94 billion, with cash profit down by 10% compared to the previous half, reflecting the impact of COVID-19 on results [18][51] - Core banking revenue increased by 3%, while trading revenue normalized after an exceptional 2020 [19][53] - Return on equity (ROE) improved to 9.7%, with a 110 basis point improvement in capital generation during the half [20][51] - The dividend was lifted to $0.70 fully franked, aligning with the targeted long-term payout ratio of 60% to 65% [21][51] Business Line Data and Key Metrics Changes - In Australia, the company regained its position as the third-largest lender, adding over 92,000 new home loan accounts, while in New Zealand, it maintained the 1 position with faster growth than the market [23][64] - Revenue in the Retail and Commercial business in Australia was up 2%, driven by strong home loan growth, while unsecured lending volumes were slightly lower [61][63] - Institutional customer revenue was solid, but trading revenues decreased due to lower market volatility and customer demand [31][68] Market Data and Key Metrics Changes - The economic recovery in Australia and New Zealand is positive, with businesses feeling more confident and airlines reporting a surge in demand [12][13] - The company noted that challenges remain in regions heavily reliant on tourism and businesses catering to international students [16] - The outlook for credit risk-weighted migration has improved, with expectations of only 10 basis points of capital consumption compared to earlier forecasts of 110 basis points [78] Company Strategy and Development Direction - The company is focused on helping customers save for, buy, and own homes, as well as supporting small businesses and facilitating trade [22][27] - A simplification strategy has been implemented to improve financial strength and customer support, resulting in $1.3 billion in cost savings since 2015 [35][36] - The company is investing in technology and automation to streamline processes and improve customer experience [36][73] Management's Comments on Operating Environment and Future Outlook - The CEO highlighted that while economic activity has recovered, many households and businesses are still facing challenges [85] - The management expressed confidence in the company's financial strength and ability to take advantage of future opportunities [48][51] - There is an expectation of moderated growth in the second half as customers pay down debt faster, which is seen as beneficial for the economy [26][110] Other Important Information - The company has set aside $4.3 billion in collective provisions, reflecting a cautious approach amid ongoing economic uncertainty [78][80] - The company has not diluted shareholders with equity raisings during the pandemic, maintaining a strong capital position [81] Q&A Session Summary Question: Market income down 13% on PCP, drivers and outlook? - The CEO indicated that the decline was due to reduced customer activity and lower spreads, particularly in the second quarter, contrasting with global trading banks [91][96] Question: Expenses down 3% on PCP, but expecting 1% to 2% growth for full year? - The CEO clarified that the increase in expenses is related to accelerated investment in key initiatives, not operational costs [92][104] Question: Institutional business margin outlook and asset growth? - The CEO noted that the focus is on customer selection and managing risk, with expectations for a strong M&A pipeline [106][112] Question: Mortgage growth slowing, anticipating below system growth? - The CEO acknowledged processing issues and a potential shift in consumer behavior, with application volumes significantly higher than the previous year [110][111]

Financial Data and Key Metrics Changes - The company reported an after-tax cash profit from continuing operations of $3.76 billion, down 42% from the previous year [9] - Operating profit before provisions remained broadly flat, with a significant driver of profit reduction being a provision of $1.7 billion set aside for potential future losses [9][10] - Net tangible assets per share increased to $20.04, and the company paid $2.3 billion in company tax and over $400 million in additional tax under the bank levy [10] Business Line Data and Key Metrics Changes - The Institutional business performed well, with revenue up 13% for the year, driven by strong demand for hedging solutions and balance sheet trading [47] - Home loans showed renewed momentum, helping to offset amortization, while credit card and personal loan volumes decreased [45] - Small business loan extensions had positive outcomes, with over half finishing by mid-October and 86% returning to full repayment [20] Market Data and Key Metrics Changes - Retail and commercial deposits grew by $34 billion for the year, indicating strong customer liquidity [36] - The company experienced a significant increase in deposits, with offset balances growing by $5 billion [21] - Credit card lending decreased by 18%, reflecting a cautious approach from customers [21] Company Strategy and Development Direction - The company aims to simplify its operations and strengthen its balance sheet while focusing on productivity and purpose-led transformation [27] - There is a commitment to invest in sustainable finance, open banking, and data utilization to enhance customer propositions [31] - The company plans to reshape its portfolio to produce a more balanced, lower-risk business that generates predictable returns [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing economic and social impacts of COVID-19 but expressed confidence in the company's ability to support customers and invest in the future [7][8] - The outlook for margins is expected to remain under pressure due to low interest rates, but the company is prepared for changes in the economic environment [43][61] - The company anticipates that risk migration in FY '21 will be around 50 basis points, lower than previously expected [59] Other Important Information - The company has bolstered its collective provision reserves to $5 billion, double the amount before the adoption of AASB 9 in 2018 [53] - The company completed the sale of UDC in New Zealand and paid an interim dividend in September [39] - Management emphasized the importance of a strong culture and employee engagement during challenging times [13] Q&A Session Summary Question: Opportunities on costs looking forward - Management discussed the focus on driving down absolute costs, particularly in distribution and process automation, while maintaining investment for future growth [74][77] Question: Dividend payout ratio trajectory - The Board's long-term philosophy for the payout ratio remains around 60% to 65%, with considerations for economic conditions and capital position [82] Question: Pathway to $8 billion cost target - Management aims to provide greater clarity on the pathway to the $8 billion cost target by the first half result of the financial year, considering the impact of COVID-19 [84][86] Question: Outlook for credit growth, particularly in Institutional - The Institutional business saw a reversal in loan requests, with many customers repaying drawn-down loans as they accessed debt capital markets [90][92]

Financial Data and Key Metrics Changes - The company reported an unaudited statutory profit for the quarter of $1.3 billion and a cash profit of $1.5 billion [14] - Common equity Tier 1 capital stands strong at 11.3% on a pro forma basis, without needing to raise additional capital from shareholders [14][29] - Pre-provision profit increased by 6% for the quarter, contributing 43 basis points to capital generation [30] Business Line Data and Key Metrics Changes - Australian home loans outperformed, with customers increasing savings and paying down credit card debt [17] - The markets business saw a 60% increase compared to the first-half quarterly average due to strong customer flows and underlying volatility [18] - Costs were down 1% for the quarter, attributed to disciplined cost management despite record investments in the business [20] Market Data and Key Metrics Changes - The company noted that while Victoria is facing challenges, Western Australia is performing well with stable iron ore prices, and parts of Queensland are showing recovery in agriculture [10] - The performance of the Institutional and International business highlighted the benefits of a diverse portfolio, with significant capital benefits from loan repayments [19] Company Strategy and Development Direction - The company aims to support customers through the pandemic while balancing shareholder interests and employee safety [9] - There is a focus on maintaining a strong balance sheet and liquidity, with a commitment to prudent investments in technology and customer support [12][22] - The company has taken a cautious approach to credit reserves, particularly in small business and commercial property segments [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenges posed by COVID-19 but expressed confidence in the company's ability to navigate the crisis due to its strong capital position [12][14] - The company is adapting to a "COVID work-life" and is prepared to make real-time decisions to manage changes in the operating environment [11] - Management emphasized the importance of customer support, having already assisted around 200,000 customers with their loans [23] Other Important Information - The company announced an interim dividend of $0.25 per share, fully franked, reflecting a balance between supporting shareholders and maintaining a strong capital position [16][40] - The company has made significant investments in big data and real-time monitoring systems to better respond to customer needs [22] Q&A Session Summary Question: Commentary on net interest income and competition - Management noted that liquids had a 3 basis points impact on margin, with an increase of about $13 billion in liquids for the quarter [47] - The underlying margin was 7 basis points better than the headline margin due to various factors including low rates and changes in loan mix [48][49] Question: Proportion of deferred customers seeking extensions - Management indicated that they do not have a clear sense of how many deferred customers may seek extensions, but they are in contact with all customers to discuss options [50][51] Question: Trends in institutional borrowers and market income - Management expects a flat to down trend in institutional borrower repayments, depending on capital market conditions [62][66] - The markets business is expected to remain buoyant, although not as volatile as before, with strong performance continuing into the fourth quarter [68][70] Question: Details on SME loan deferrals and collateral - The majority of SME loans on deferral are secured by residential or commercial properties, with a focus on supporting good businesses affected by external circumstances [74][80] Question: Urgency of paying dividends now - Management justified the decision to pay a modest dividend based on strong capital generation and the need to support shareholders, particularly retirees [88][92] Question: Tail risk for customers on deferral - Management acknowledged that the crisis has disproportionately affected lower-skilled and lower-income workers, but noted that many customers on deferral are still current on their payments [94][96]