Australian Housing Dynamics and Affordability
GROUP RESOURCES PORTFOLIO
TOTAL ANZ PORTFOLIO
RESOURCES PORTFOLIO
THERMAL COAL EXPOSURE
EAD $b
EAD $b
977
898
20
895
16
903
14
944
15
EAD $b
2.0
Resources:
1.8% of ANZS
1.5
20.0
Thermal
total portfolio
coal
1.0
1.7
mining:
<0.1% of
0.6
0.5
17.3
ANZS total
1.3
16.1
0.8
portfolio
0.0
15.3
0.7
1.2
Sep-15
Sep-16
Sep-17
1.0
2.9
554
593
0.4
0.7
14.0
532
516
515
1.1
0.7
1.5
Thermal coal
0.8
Sep-18 Mar-19 Sep-19
Thermal coal (Trendline)
0.9
0.3
1.7
1.0
1.2
4.9
1.4
5.2
•
4.0
4.4
3.5
•
347
363
375
375
8.6
367
7.8
8.2
7.0
7.4
RESOURCES PORTFOLIO MANAGEMENT
•
Portfolio is skewed towards well capitalised and lower cost resource producers.
32% of the book is less than one year duration.
Investment grade exposures represent 79% of the portfolio vs. 68% at Sep 18.
Increase in total coal mining exposure in FY19 primarily reflects mergers and
acquisitions activity related to existing mines in 1H19, ie predominantly metallurgical
coal assets sold by diversified miners to existing customers along with foreign currency
exchange movements. Financing is mainly used to support continuing operations, and
not mine expansions.
Thermal coal exposure is currently $838m. We expect our thermal coal exposure to
decline over time, as it has since 2015 (reducing by 50% between FY15-FY19).
Decreased exposure in 2H19 compared to 1H19 reflects ongoing portfolio management
and application of ANZ policies. Our exposures to thermal coal are primarily
concentrated in a small number of Australian-based miners.
Exposure to metallurgical coal mining (used for steel making) is currently $686m.
Sep-15 Sep-16 Sep-17 Sep-18 Sep-19
Consumer Lending
Resources
Other
Sep-15
Sep-16 Sep-17
Sep-18 Sep-19
Oil & Gas Extraction
Metal Ore Mining
Other Mining
Services to mining
Metallurgical Coal Mining
Thermal Coal Mining
ANZ
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