ANZ 2022 Full Year Debt Investor Presentation slide image

ANZ 2022 Full Year Debt Investor Presentation

ANZ 2022 Full Year Debt Investor Presentation REGULATORY CAPITAL - 4Q22 UPDATE Capital update • Level 2 CET1 ratio of 12.3% (19.2% on an Internationally Comparable basis¹) or ~11.1% on a pro forma basis including Suncorp Bank acquisition. This is above APRA's 'Unquestionably Strong' capital benchmark² APRA Level 2 Common Equity Tier 1 (CET1) ratio, % 4Q22 Movement 0.77 12.29 Excluding the $3.5b equity raisings, Level 2 CET1 increased +44 bps mainly from cash earnings (ex large notable item) in the quarter 11.08 -0.03 -0.03 • Modest RWA growth in Q4 - CRWA growth mainly reflects increased volume in Retail Australia, Q4 IRRBB RWA movement was minimal • Leverage ratio of 5.4% (or 6.1% on an Internationally Comparable basis) • Level 1 CET1 ratio of 12.0% or ~11.3% pro forma for the Suncorp Bank acquisition Dividend • Interim Dividend of 74 cents fully franked, ~63% DPOR on 2H22 Cash Continuing ex Large / Notable items basis and within ANZ's sustainable DPOR range Regulatory update • Progressing with implementation of APRA Capital Reforms (1 January 2023 effective date), noting the expectation of lower RWA offset by increased capital buffers On track with RNBZ capital reform transition, including issuance of RBNZ compliant capital securities 0.50 ~11.1 ~ -1.2 Jun 22 Underlying Non CRWA Q4 capital CRWA (ex FX) generation (ex FX) & other Capital Raising Sep 22 Suncorp Bank acquisition Sep 22 pro forma APRA Level 1 Common Equity Tier 1 (CET1) ratio, % 4Q22 Movement 10.41 -0.06 -0.04 0.67 0.12 12.01 0.91 ~11.3 ~ -0.7 1. 2. 3. Jun 22 Underlying Non CRWA Q4 capital Capital CRWA (ex FX) generation Raising (ex FX) (incl. IG dividends) & other APS111 impact³ Sep 22 Suncorp Bank acquisition Sep 22 pro forma Internationally Comparable methodology aligns with APRA's information paper "International Capital Comparison Study (13 July 2015)". Basel III Internationally Comparable ratios do not include an estimate of the Basel I capital floor Based on APRA information paper "Strengthening banking system resilience - establishing unquestionably strong capital ratios" released in July 2017 APRA's changes to APS111: Measurement of Capital took effect from 1 January 2022. Benefits to the L1 CET1 ratio was due to a higher L1 CET1 base (as a result of the $3.5bn equity raise and quarterly earnings), leading to a decrease in L1 CET1 deduction on intra-group equity investments above the 10% CET1 threshold 57
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