ANZ 2023 Half Year Results slide image

ANZ 2023 Half Year Results

ANZ 2023 Half Year Results ONGOING MARGIN TAILWINDS FROM OUR CAPITAL AND REPLICATED PORTFOLIO Portfolio balance, $b Portfolio interest earning rates impact³ Illustrative potential NII benefit 142 141 134 Sensitive to short 30 37 term interest rates¹ 24 3.8% 2.4% 0.2% Mar 22 monthly earning rate Sep 22 monthly earning rate Mar 23 monthly earning rate Further benefits are dependent on future central bank rate decisions and portfolio volume growth Prospective benefit from higher interest earning rates Relative to the prior period FY23 (vs FY22) 2H23 (vs 1H23) Additional NII earned ~+$1.3b ~+$0.2b 105 111 110 Sensitive to longer term interest rates² 1.3% 1.5% 1.7% Mar 22 Sep 22 Mar 23 Mar 22 monthly Sep 22 monthly earning rate earning rate Mar 23 monthly earning rate Further benefits of higher current term interest rates will be seen progressively as maturities are gradually reinvested over next 5 years. Step-up is non-linear This page may contain forward-looking statements or opinions. Please refer to ANZ's Disclaimer and Important Notice with respect to such statements on page 1 Overnight to 3 month interest rates Delta on Group NIM ~+13bps ~+5bps FY23 benefits of ~$1.3b (of which ~$0.55b was realised in 1H23 and ~$0.75b is expected to be realised in 2H23) is ~$0.2bn lower than the FY23 estimate as at FY22 results. This is due to lower term rates and reduced volume 1. 2. Primarily 3-to-5-year term interest rates 3. Mar 22, Sep 22 and Mar 23 month rates denote actual portfolio monthly earnings rate achieved 4. 2H23 illustration highlights the potential impact on NII assuming current longer term reinvestment rates are maintained, and shorter-term interest rates follow the path currently forecast by ANZ Research (as at 2nd May 2023). Rate timing and magnitude outlined on page 68. It also assumes stable FX rates and importantly that the 2H23 portfolio remains at current levels in terms of absolute volumes, regions and mix. It should be noted that the portfolio volume reduced during 1H23 and this a simplified analysis does not take into account further volume changes which may be expected over the next Half Year 67 40
View entire presentation