Investor Presentaiton
ANZ 2023 Half Year Results
BASEL III CET1 REFORMS AND TLAC FINALISATION
1.
APRA CET1 reforms
•
•
APRA Capital Reforms took effect from 1 January 2023 with benefits from
reduction in RWA partially offset by increased capital buffers
Enhancing risk sensitivity in residential and commercial property portfolios.
Higher capital requirement segments such as interest only and investor
mortgages
72.5% output floor to limit the gap between Standardised and Advanced
ADIS
Updated minimum capital requirements, %
19.25%
Higher
6.50%
14.00%
APRA
minimum
LAC in
the form
of Tier 2
2.00%
•
Aligning CRWA of New Zealand banking subsidiaries by applying a similar
framework to Reserve Bank of New Zealand
increased
1.50%
1.50%
from 8.00%
1.00%
Minimum CET1 ratio 10.25% - which includes a baseline countercyclical
to 10.25%
.
capital buffer (CCyB) of 1% of Australian assets that can be released in times
of systemic stress¹
~1%
2.50%
1.00%
1.00%
•
ANZ's CCyB for Mar 23 of 0.62% was lower than 1.00% given ANZ's mix of
geographic exposures
3.75%
2.50%
•
APRA's guidance released in July 22 expected major banks to target an
operating range between 11% and 11.5% (average of 11.25%), with the lower
end being the minimum expectations post Group dividend payment
TLAC finalisation
•
•
APRA finalised TLAC requirements at 6.5% of RWA in the form of Tier 2 capital
Implementation on 1 January 2026
Interim target of 5% of RWA in the form of Tier 2 capital remains at 1 January
2024
4.50%
APRA Basel 3
Minimum Prudential Capital Requirement (PCR)
Capital Conservation Buffer (CCB)
Domestic Systematically Important Banks (D-SIBS)
Countercyclical Capital Buffer (CCyB)
4.50%
APRA Capital Reform
Unquestionably Strong Buffer
AT1
Tier 2
The CCyB is calculated on a bank's Australian assets only. The final CCyB requirement will reduce based on a bank's international exposures
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