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]

Financial Performance Overview - Statutory Profit decreased by 51% to $1.3 billion[2] - Cash Profit decreased by 60% to $1.41 billion[2] - Return on Equity decreased by 732 basis points to 4.7%[2] - CET1 Capital Ratio decreased by 73 basis points to 10.8%[2] Divisional Results - Australia - Australia Cash Profit decreased by 23% to $1.4 billion[4] - Australia Revenue decreased by 3% to $4.7 billion[4] - Australia Expenses increased by 2% to $1.9 billion[4] - Australia Credit Impairment Charge increased by $0.4 billion to $0.8 billion[4] - Australia Customer Deposits increased by 5% to $213.0 billion[4] - Australia Customer Lending decreased by 2% to $329.8 billion[4] Divisional Results - New Zealand (in NZD) - New Zealand Revenue increased by 10% to $1.8 billion[5] - New Zealand Cash Profit was flat at $0.6 billion[5] - New Zealand Expenses decreased by 20% to $0.7 billion[5] - New Zealand Customer Deposits increased by 5% to $93.6 billion[6] - New Zealand Customer Lending increased by 4% to $128.6 billion[6] - New Zealand Credit Impairment Charge increased by $0.2 billion to $0.2 billion[6] Divisional Results - Institutional - Institutional Cash Profit decreased by 38% to $0.6 billion[7] - Institutional Revenue increased by 5% to $2.8 billion[7] - Institutional Expenses decreased by 1% to $1.3 billion[7] - Institutional Credit Impairment Charge increased by $0.7 billion to $0.6 billion[7] - Institutional Customer Deposits increased by 16% to $258.5 billion[7] - Institutional Core Lending increased by 12% to $16 billion[7] COVID-19 Response - The company launched support packages, helping customers with deferrals on loan payments[9] - The company facilitated ~$12 billion of loan deferrals or adjustments for over 30,000 New Zealand personal, home, and business loan customers[14] - The company received ~105,000 repayment deferral requests on $36 billion Australian home loans, representing 14% of the portfolio[14] - The company provided ~$7.5 billion of lending to Australian commercial customers, representing 15% of the customer base[14] - The company pre-approved $4 billion lending to 35,000 Australian small businesses with existing transactional accounts[14] - The company provided $16 billion in extra lending to mainly long-term investment-grade institutional customers[14]

Australia and New Zealand Banking Group Ltd (ANZBY) Q2 2020 Earnings Conference Call April 29, 2020 8:00 PM ET Company Participants Jill Campbell - Group General Manager, IR Shayne Elliott - CEO & Executive Director Michelle Jablko - CFO Kevin Corbally - Group Chief Risk Officer Mark Whelan - Group Executive, Institutional Conference Call Participants Jonathan Mott - UBS Investment Bank Andrew Lyons - Goldman Sachs Group Jarrod Martin - Crédit Suisse Victor German - Macquarie Research Andrew Triggs - JPMorg ...

Australia and New Zealand Banking Group Limited (ANZBY) Q2 2019 Earnings Conference Call April 30, 2019 8:00 PM ET Company Participants Jill Campbell - Group General Manager of Investor Relations Shayne Elliott - Chief Executive Officer & Executive Director Michelle Jablko - Chief Financial Officer Mark Whelan - Group Executive of Institutional Conference Call Participants Jarrod Martin - Crédit Suisse AG Andrew Lyons - Goldman Sachs Group Richard Wiles - Morgan Stanley Jonathan Mott - UBS Investment Bank V ...