ANZ 2022 Full Year Results
ANZ 2022 Full Year Results
CONSISTENCY OF MARKETS INCOME
MARKETS INCOME HAS HISTORICALLY FOLLOWED CLOSE TO A NORMAL DISTRIBUTION, WITH A POSITIVE SKEW
Markets historical monthly income, $m
170
1.
130 (FY22 Average)
+ 1 SD
- 1 SD
Historical monthly revenue distribution (FY15-FY22)
13%
76%
11%
Characteristics of monthly income distribution
• Over the last 8 years, monthly Markets revenue has followed close to a normal
distribution, with a positive skew:
Average monthly revenue ~$170m with a standard deviation of ~$50m.
Stability is driven by a set of "core" customers who deal with ANZ Markets on
a regular basis and across multiple geographies & products
Franchise Revenue tends to be higher during a "risk-off" environment in
financial markets and/or when "bid-offer spreads" widen. This revenue is
generated mainly on the back of increased customer activity and from
providing continued liquidity support to customers during market
dislocations
FY22 Franchise revenue aligns with the historical tendency for Markets to
outperform in these environments and provides important diversification benefits to
Group revenues
FY22 was differentiated by rising interest rates, short-term interest rate and FX
volatility, global inflationary pressures and geopolitical events. While this benefitted
some businesses, it adversely impacted others particularly Credit & Capital Markets
and Balance Sheet Trading, while also requiring higher Derivative Valuation
Adjustments
A risk off environment is broadly defined as one in which credit spreads widen, risk free bond yields fall, equities sell off, volatility increases and USD strengthens
92
22View entire presentation