ANZ 2023 Half Year Results slide image

ANZ 2023 Half Year Results

ANZ 2023 Half Year Results OUR RESOURCES PORTFOLIO Resources Portfolio, EAD¹ $b 20.0 1.7 0.6 17.3 17.0 1.3 16.2 0.8 0.5 15.3 0.7 0.8 1.2 1.0 2.9 0.4 0.7 0.9 14.5 14.0 1.1 0.7 1.5 1.2 0.2 0.8 13.0 0.5 12.9 0.9 0.3 1.0 1.7 0.4 0.3 1.0 1.2 0.6 1.0 0.6 4.9 1.4 1.2 0.6 5.2 5.4 0.9 1.0 4.0 4.4 4.9 3.5 3.9 4.8 8.6 8.2 8.2 7.8 7.0 7.4 7.0 5.9 5.6 Sep 15 Sep 16 Sep 17 Sep 18 Sep 19 Sep 20 Sep 21 Sep 22 Mar 23 Thermal Coal Mining Metallurgical Coal Mining Other Mining Services to Mining Metal Ore Mining Oil & Gas Extraction Thermal Coal Mining, EAD¹ $b 2.0 1.5 1.0 0.5 0.0 Sep Sep Sep Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar 15 16 17 18 19 19 20 20 21 21 22 22 23 Since 2015 our exposure to thermal coal mining has reduced by ~82% ANZ's exposure to thermal coal mining is a small portion of our overall lending (now comprising <0.02% of Group EAD) Movements in Oil and Gas and Thermal Coal Mining exposures Some of the movements in our exposures this half can be attributed to APRA's capital reforms², which changes the factors applied to loan amounts used to determine our EAD. The result is that we are required to hold more capital for certain types of lending and other banking facilities, and less for others. The impact on two sectors is outlined below: • Our thermal coal mining exposure³ increased this half, almost entirely related to the impact of the capital reforms. The majority of our exposures to the thermal coal mining sector are made up of mining rehabilitation guarantees, which requires increased capital under the reforms. The increase was not due to new lending to the sector. Our upstream oil and gas exposures decreased, driven by the capital reforms, lower lending balances, and decreases in trade and markets exposures during the half. 1. Exposure at Default 2. 3. APRA release minor amendments to capital frameworks for ADIs: https://www.apra.gov.au/news-and-publications/apra-releases-minor-amendments-to-capital-framework-for-adis This exposure is to the ANZSIC code 1102, ie those customers for whom thermal coal mining is their predominant activity. It does not include other thermal coal mining exposure to diversified miners, which will be captured under other ANZSIC codes 53
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